Division of Liabilities. Effective as of the Contribution Date, HMC shall transfer to HMLP all accrued liabilities (whether vested or unvested and whether funded or unfunded) for paid time leave, if any, for Retained Employees and Retained Individuals. After the Contribution Date, HMLP shall be solely responsible for the payment of such paid time leave to Retained Employees and Retained Individuals. Effective as of the Distribution Date, HMC shall transfer to Crestline all accrued liabilities (whether vested or unvested and whether funded or unfunded) for paid time leave, if any, for Crestline Employees. After the Distribution Date, Crestline shall be responsible for the payment of such paid time leave to Crestline Employees. HMLP (in the case of Retained Employees) and Crestline (in the case of Crestline Employees) shall provide the individuals covered by this Section 2.7.1 with the same vested and unvested balances of paid time leave as was credited to such individuals by HMC on the Contribution Date (in the case of Retained Employees) and the Distribution Date (in the case of Crestline Employees). Nothing in this Section 2.7.1 shall be construed in any way to limit the right of either HMLP or Crestline to change its vacation or sick leave policies as it deems appropriate.
Appears in 2 contracts
Sources: Employee Benefits and Other Employment Matters Allocation Agreement (Crestline Capital Corp), Employee Benefits and Other Employment Matters Allocation Agreement (HMC Merger Corp)