Common use of Reduction for "Parachute Payments Clause in Contracts

Reduction for "Parachute Payments. Notwithstanding anything in this Agreement to the contrary, the cash payments described in this Section 2, when aggregated with any other "parachute payments", as defined under Section 280G of the Internal Revenue Code of 1986, as amended (the "Code"), payable under any other plans, agreements or policies of the Company, shall be reduced to the highest amount permissible under Sections 280G and 4999 of the Code before the Executive becomes subject to the excess parachute payment excise tax under Section 4999 of the Code and the Company loses all or part of its compensation deduction for such payments.