Common use of Current Agreements Clause in Contracts

Current Agreements. As of the Effective Time, Sovereign shall assume and honor and shall cause the appropriate Subsidiaries of Sovereign to assume and honor in accordance with their terms all employment, severance and other compensation agreements, plans and arrangements existing immediately prior to the Closing Date which are between ICBC or any of its Subsidiaries and any officer, employee, independent contractor or director thereof, including without limitation bank-owned life insurance. Sovereign acknowledges and agrees that (i) the consummation of the Merger constitutes a “Change in Control” or “Change of Control,” as applicable, for all purposes pursuant to such agreements, plans and arrangements, and (ii) that the persons listed in Section 7.6(g) of the ICBC Disclosure Schedule (the “Senior Executives”) shall receive all cash severance benefits to which they would otherwise be entitled pursuant to those certain employment (in the case of M▇. ▇▇▇▇ ▇▇▇▇▇▇▇) and change in control (in the case of all other Senior Executives) agreements entered into by and between each such Senior Executive, ICBC and/or any Subsidiary thereof (collectively, the “Severance Agreements”), assuming a termination of each such Senior Executive’s employment without Cause (as such term is defined in the Severance Agreements) on the Closing Date, provided that such persons remain employed by ICBC or its Subsidiaries as of the Effective Time, but whether or not such persons remain employed by ICBC or its Subsidiaries after the Effective Time. Except as may otherwise be agreed between the parties hereto and any Senior Executive, the Severance Agreements shall remain in effect in accordance with their respective terms.