Possible Reduction Sample Clauses
The 'Possible Reduction' clause allows for the adjustment or decrease of certain obligations, payments, or deliverables under a contract if specific conditions are met. Typically, this clause outlines scenarios where the scope of work, payment amounts, or other contractual duties may be reduced, such as changes in project requirements, regulatory changes, or mutual agreement between the parties. Its core practical function is to provide flexibility and adaptability within the contract, ensuring that both parties can respond to unforeseen circumstances without breaching the agreement.
Possible Reduction. If necessary, the Covered Payments shall be reduced in a manner that maximizes Executive’s economic position. In applying this principle, the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code, and where two economically equivalent amounts are subject to reduction but are payable at different times, such amounts shall be reduced on a pro rata basis but not below zero.
Possible Reduction. In the event Executive becomes entitled to any benefits or payments in the nature of compensation (within the meaning of section 280G(b)(2) of the Code) under this Agreement, or any other plan, arrangement, or agreement with the Company (the “Payments”), and such benefits or payments would (in the absence of this Section 12) be subject to the excise tax imposed by section 4999 of the Code (the “Excise Tax”), the aggregate present value of the Payments under this Agreement shall be reduced (but not below zero) to the Reduced Amount (as defined below), if reducing the Payments under this Agreement will provide Executive with a greater net after-tax amount than would be the case if no reduction was made. The “Reduced Amount” shall be an amount expressed in present value which maximizes the aggregate present value of Payments without causing any Payment under this Agreement to be subject to the Excise Tax, determined in accordance with section 280G(d)(4) of the Code. If Payments are to be reduced, the Company shall reduce the Payments under this Agreement by first reducing Payments that are payable in cash and then by reducing non-cash Payments. Only amounts payable under this Agreement shall be reduced pursuant to this Section 12.
Possible Reduction. Notwithstanding anything contained in this Agreement to the contrary, the Company shall have the right to reduce or defer prospectively the compensation and benefits provided to or for Executive, as in effect from time to time, pursuant to an across-the-board compensation and/or benefit reduction or deferral program similarly affecting all senior executive officers of the Company.