Common use of Notice to the Employee Clause in Contracts

Notice to the Employee. If the Auditors determine that any Payment would be nondeductible by the Employer because of section 280G of the Code, then the Employer shall promptly give-notice of such determination to the Employee, together with a detailed calculation thereof and of the Reduced Amount. The Employee may then elect, in his sole discretion, which and how much of the Payments shall be eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the Reduced Amount), and shall advise the Employer in writing of his election within 10 days of receipt of such notice. If no such election is made by the Employee within such 10-day period, then the Employer may elect which and how