Common use of Reduced Payments Clause in Contracts

Reduced Payments. In the event that (i) the Total Payments would subject Employee to the Excise Tax, and (ii) the amount of the total “parachute payment” as defined in Section 280G(b) of the Code to be paid to Employee is less than 110% of the Safe Harbor Amount, then, only to the extent necessary to eliminate the imposition of the Excise Tax, such payments and benefits shall be reduced, in the order and of the type, mutually agreed to by Employee and the Company.