Common use of PARACHUTE PAYMENT AGREEMENT Clause in Contracts

PARACHUTE PAYMENT AGREEMENT. The provisions of this Paragraph 11 of the Agreement set forth certain terms of an agreement reached between Executive and the Company regarding Executive's rights and obligations upon the occurrence of a Change in Control of the Company. These provisions are intended to assure and encourage in advance Executive's continued attention and dedication to his assigned duties and his objectivity during the pendency and after the occurrence of any such event. These provisions shall apply in lieu of, and expressly supersede, the provisions of Subparagraph 10(d)(ii) regarding severance pay upon a termination of employment, if such termination of employment occurs within 12 months after the occurrence of the first event constituting a Change of Control. These provisions shall terminate and be of no further force or effect 12 months after the occurrence of a Change of Control.