Common use of Preservation of Employee Benefit Plans Clause in Contracts

Preservation of Employee Benefit Plans. Following the Closing Date, Parent shall not terminate any health insurance, life insurance or 401(k) plan in effect at Company until such time as Parent is able to replace such plan with a plan that is applicable to Parent and all of its then existing Subsidiaries; provided that Parent shall have no obligation to provide replacement plans that have the same terms and provisions as the existing plans; provided, further, that any new health insurance plan shall provide for coverage for preexisting conditions. On the Closing Date, the employees of Company will be the employees of the Surviving Corporation (provided that this provision is for purposes of clarifying that the Merger, in and of itself, will not have any impact on the employment status of any employee; and provided further that this provision shall not in any way limit the management rights of the Surviving Corporation or Parent to assess workforce needs and make appropriate adjustments as necessary or desirable within its discretion subject to applicable laws and collective bargaining agreements).