Severance Obligations. (a) Parent agrees to cause the Surviving Entity to assume and honor without modification the severance and cash severance payment provisions of the employment agreements and change of control severance plan listed in Section 6.14 of the Company Disclosure Schedule (the "Employee Severance Agreements"), with any cash severance payments pursuant thereto to be made in a lump sum not later than the Effective Time. Each of Parent and the Company acknowledges that the consummation of the Offer as provided herein will constitute a "Change of Control" for purposes of the Employee Severance Agreements and, accordingly, as of the Effective Time, each of the individuals party to such agreements will be entitled to (x) a cash severance payment as provided in such agreements in the manner described in the previous sentence, (y) provision of the other fringe benefits provided in such agreements and (z) accelerated vesting of the stock appreciation rights and options with respect to the Company Common Stock held by such individuals as provided in such agreements.
Appears in 4 contracts
Samples: Agreement and Plan of Merger (On Command Corp), Agreement and Plan of Merger (Ascent Entertainment Group Inc), Agreement and Plan of Merger (Ascent Entertainment Group Inc)
