Common use of Reduced Amount Clause in Contracts

Reduced Amount. A “Reduced Amount” means the smallest aggregate amount of Payments that (i) is less than the sum of the all Payments (without regard to this Section 21) and (ii) results in the greatest Net After-Tax Receipts to the Executive. “Net After-Tax Receipts” means the present value (determined pursuant to Section 280G(d)(4) of the Code) of Payments, net of (a) federal, state, and local income taxes payable with respect to the Payments, determined by applying the highest marginal income tax rate applicable to individuals in the year of the Executive’s termination of employment and by calculating state and local income taxes net of any federal income tax deduction for such taxes and (b) any excise tax payable with respect to such Payments pursuant to Section 4999 of the Code.