Common use of Accrued Vacation Clause in Contracts

Accrued Vacation. Effective on or prior to the Distribution Date, WRECO shall, or shall cause the applicable WRECO Subsidiaries to, assume Liability for all vacation days (regular, supplemental or banked) accrued or earned but not yet taken by each WRECO Employee as of the Distribution Date (the “Accrued Vacation Days”). In the event that a WRECO Employee is entitled under applicable Law or any policy of Weyerhaeuser or any Weyerhaeuser Subsidiary to be paid for any Accrued Vacation Days on or after the Distribution Date, (i) WRECO or the applicable WRECO Subsidiary or, solely to the extent required by applicable Law (as reasonably determined by Weyerhaeuser), Weyerhaeuser or the applicable Weyerhaeuser Subsidiary, shall pay any required amounts to such WRECO Employee, (ii) such amounts, whether or not paid by Weyerhaeuser or any Weyerhaeuser Subsidiary, shall be REB Liabilities and (iii) to the extent any such amounts are paid by Weyerhaeuser or any Weyerhaeuser Subsidiary, Weyerhaeuser or the applicable Weyerhaeuser Subsidiary shall be entitled to indemnification pursuant to Section 12.03(a). Effective as of the Effective Time, Parent shall, and shall cause the Parent Subsidiaries to, honor all the Accrued Vacation Days for which payout is not made pursuant to the immediately preceding sentence.

Accrued Vacation. Effective on or prior as of the applicable Transfer Time, to the Distribution Dateextent permitted by applicable Law or the terms of any applicable CBA, WRECO shall, or Purchaser shall cause the applicable WRECO Subsidiaries to, assume Liability for all vacation days or other annual leave (regularother than “banked” vacation days, supplemental or bankedas such term is used under Seller’s vacation policies) accrued or earned but not yet taken by each WRECO Transferred Employee as of the Distribution Date applicable Transfer Time, as determined pursuant to Seller’s policies and reflected on Seller’s books and records (the “Accrued Vacation Days”), which Liabilities shall be Assumed Liabilities. Seller shall pay each Transferred Employee, within 20 Business Days following the applicable Transfer Time, an amount equal to any “banked” vacation days standing to such Transferred Employee’s credit as of the applicable Transfer Time. In the event that a WRECO any Transferred Employee is entitled under applicable Law or the terms of any policy of Weyerhaeuser or any Weyerhaeuser Subsidiary applicable CBA to be paid for any Accrued Vacation Days on or after the Distribution Dateapplicable Transfer Time, (i) WRECO Purchaser or the its applicable WRECO Subsidiary subsidiary or, solely to the extent required by applicable Law or the terms of any applicable CBA (as reasonably reasonable determined by WeyerhaeuserSeller), Weyerhaeuser Seller or the its applicable Weyerhaeuser Subsidiarysubsidiary, shall pay any required amounts to such WRECO Transferred Employee, (ii) such amounts, whether or not paid by Weyerhaeuser Seller or any Weyerhaeuser Subsidiaryits applicable subsidiary, shall be REB remain Assumed Liabilities and (iii) to the extent any such amounts are paid by Weyerhaeuser Seller or any Weyerhaeuser Subsidiaryits subsidiaries, Weyerhaeuser Seller or the applicable Weyerhaeuser Subsidiary subsidiary shall be entitled to indemnification pursuant to Section 12.03(a)10.02 with respect thereto. Effective as of From and after the Effective applicable Transfer Time, Parent Purchaser shall, and shall cause its subsidiaries (including the Parent Subsidiaries Transferred Entity) to, honor all the Accrued Vacation Days for which payout payment is not made pursuant to the immediately preceding sentence. In the event that Purchaser is required by applicable Law or the terms of any applicable CBA to assume any “banked” vacation days standing to a Transferred Employee’s credit as of the applicable Transfer Time, Liability for such “banked” vacation days shall remain Retained Liabilities and Purchaser shall be entitled to indemnification pursuant to Section 10.02 with respect thereto.