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the closing date of the agreement subject to such incumbrances and liabilities of Colonial as may be reflected in the letter's balance sheet at that time. It is agreed that the financial condition of Colonial on the latest practicable date prior to the closing date should reflect no material adverse change in Colonial's financial condition as of the date of December 31, 1953, other than allowing for changes or losses occurring in the ordinary course of Colonial's business.

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The agreement also provides that Eastern will take over, on the closing date, Colonial employees with no reduction in their rate of pay and will provide continued employment of such employees with Eastern to the same extent as if they had been originally employed by Eastern. The employees of each company will be allowed seniority preferences within the appropriate seniority unit as of the date of the employment in such seniority unit by their respective companies. Further, supervisory personnel will be integrated into the combined operation in positions of comparable responsibility with the option of the employees to return to the seniority list without loss of seniority in their respective employment classifications in which they have had prior training and experience and in which they have seniority rights. It is expressly provided that Colonial's supervisory employees shall be assigned to supervisory