Common use of Division of Liabilities Clause in Contracts

Division of Liabilities. Effective on the Distribution Date, Choice shall assume, as to the Choice Employees, and Manor Care shall retain, as to the Retained Employees, all accrued liabilities (whether vested or unvested, and whether funded or unfunded) for vacation leave and sick leave in respect of employees of Manor Care as of the Cut-off Date. Choice shall be solely responsible for the payment of such vacation leave and sick leave to Choice Employees after the Cutoff Date, and Manor Care shall be solely responsible for the payment of such vacation leave and sick leave to Retained Employees after the Cut-off Date. Each party shall provide to its own Employees on the Distribution Date the same vested and unvested balances of vacation leave and sick leave as credited to such Employee on the Manor Care payroll system on the Cut-off Date, and shall continue to accrue vacation leave and sick leave in respect of each such Employee from the Distribution Date at the same rate of accrual as accrued in respect of such individual by Manor Care on the Cut-off Date.

Division of Liabilities. Effective on the Distribution Date, ----------------------- Choice shall assume, as to the Choice Employees, and Manor Care Sunburst shall retain, as to the Retained Employees, all accrued liabilities (whether vested or unvested, and whether funded or unfunded) for vacation leave and sick leave in respect of employees of Manor Care Sunburst as of the Cut-off Date. Choice shall be solely responsible for the payment of such vacation leave and sick leave to Choice Employees after the Cutoff Cut-off Date, and Manor Care Sunburst shall be solely responsible for the payment of such vacation leave and sick leave to Retained Employees after the Cut-off Date. Each party shall provide to its own Employees on the Distribution Date the same vested and unvested balances of vacation leave and sick leave as credited to such Employee on the Manor Care Sunburst payroll system on the Cut-off Date, and shall continue to accrue vacation leave and sick leave in respect of each such Employee from the Distribution Date at the same rate of accrual as accrued in respect of such individual by Manor Care Sunburst on the Cut-off Date.