Common use of Transfer and Acceptance of Account Balances Clause in Contracts

Transfer and Acceptance of Account Balances. As soon as ------------------------------------------- practicable after the Distribution Date, Sunburst shall transfer to Choice an amount (in cash, securities, other property or a combination thereof) representing the present value of the full accrued benefit of all Choice Employees who had earned a benefit in the Sunburst Hospitality Corporation Supplemental Executive Retirement Plan on the Cut-off Date, said amounts to be established as the initial accrued benefits of such individuals under the Choice Hotels International, Inc. Supplemental Executive Retirement Plan. Sunburst and Choice shall take such steps as may be necessary to obtain releases of Sunburst from Choice Employees whose accrued benefits are transferred from the Sunburst Hospitality Corporation Supplemental Executive Retirement to the Choice Hotels International, Inc. Supplemental Executive Retirement Plan in accordance with this Section. In addition, each Choice Individual for whom an accrued benefit under the Sunburst Hospitality Corporation Supplemental Executive Retirement Plan has been assumed by the Choice Hotels International, Inc. Supplemental Executive Retirement Plan shall be required to execute a waiver which acknowledges that all liabilities for benefits accrued under the Sunburst Hospitality Corporation Supplemental Executive Retirement Plan through the date immediately preceding the Distribution Date shall be assumed by Choice, except that Sunburst shall remain liable, for a period of thirty (30) months following the Distribution Date, for such benefits to the extent such amounts are not paid when due by Choice.

Transfer and Acceptance of Account Balances. As soon as ------------------------------------------- practicable after the Distribution Date, Sunburst shall transfer to Choice an amount the amounts (in cash, securities, other property or a combination thereof) representing the present value of the full accrued benefit account balances of all Choice Employees who had earned a benefit account balances in the Sunburst Hospitality Corporation Supplemental Executive Retirement Deferred Compensation Plan on the Cut-off Date, said amounts to be established as the initial account balances or accrued benefits of such individuals under the Choice Hotels International, Inc. Supplemental Executive Retirement Deferred Compensation Plan. Sunburst and Choice shall take such steps as may be necessary to obtain releases of Sunburst from Choice Employees whose accrued benefits account balances are transferred from the Sunburst Hospitality Corporation Supplemental Executive Retirement Deferred Compensation Plan to the Choice Hotels International, Inc. Supplemental Executive Retirement Deferred Compensation Plan in accordance with this Section. In addition, each Choice Individual for whom an accrued benefit whose account balance under the Sunburst Hospitality Corporation Supplemental Executive Retirement Deferred Compensation Plan has been assumed by transferred to the Choice Hotels International, Inc. Supplemental Executive Retirement Deferred Compensation Plan shall be required to execute a waiver which acknowledges that all liabilities for benefits accrued under the Sunburst Hospitality Corporation Supplemental Executive Retirement Deferred Compensation Plan through the date immediately preceding the Distribution Date shall be assumed by Choice, except that Sunburst shall remain liable, for a period of thirty (30) months following the Distribution Date, for such benefits to the extent such amounts are not paid when due by Choice.

Transfer and Acceptance of Account Balances. As soon as ------------------------------------------- practicable after the Distribution Date, Sunburst Manor Care shall transfer to Choice an amount (in cash, securities, other property or a combination thereof) representing the present value of the full accrued benefit of all Choice Employees who had earned a benefit in the Sunburst Hospitality Corporation Manor Care, Inc. Supplemental Executive Retirement Plan on the Cut-off Date, said amounts to be established as the initial accrued benefits of such individuals under the Choice Hotels International, Inc. Supplemental Executive Retirement Plan. Sunburst Manor Care and Choice shall take such steps as may be necessary to obtain releases of Sunburst Manor Care from Choice Employees whose accrued benefits are transferred from the Sunburst Hospitality Corporation Manor Care, Inc. Supplemental Executive Retirement to the Choice Hotels International, Inc. Supplemental Executive Retirement Plan in accordance with this SectionSection . In addition, each Choice Individual for whom an accrued benefit under the Sunburst Hospitality Corporation Manor Care, Inc. Supplemental Executive Retirement Plan has been assumed by the Choice Hotels International, Inc. Supplemental Executive Retirement Plan shall be required to execute a waiver which acknowledges that all liabilities for benefits accrued under the Sunburst Hospitality Corporation Manor Care, Inc. Supplemental Executive Retirement Plan through the date immediately preceding the Distribution Date shall be assumed by Choice, except that Sunburst Manor Care shall remain liable, for a period of thirty (30) months following the Distribution Date, for such benefits to the extent such amounts are not paid when due by Choice.

Transfer and Acceptance of Account Balances. As soon as ------------------------------------------- practicable after the Distribution Date, Sunburst Manor Care shall transfer to Choice an amount the amounts (in cash, securities, other property or a combination thereof) representing the present value of the full accrued benefit account balances of all Choice Employees who had earned a benefit account balances in the Sunburst Hospitality Corporation Supplemental Executive Retirement Manor Care, Inc. Deferred Compensation Plan on the Cut-off Date, said amounts to be established as the initial account balances or accrued benefits of such individuals under the Choice Hotels International, Inc. Supplemental Executive Retirement Deferred Compensation Plan. Sunburst Manor Care and Choice shall take such steps as may be necessary to obtain releases of Sunburst Manor Care from Choice Employees whose accrued benefits account balances are transferred from the Sunburst Hospitality Corporation Supplemental Executive Retirement Manor Care, Inc. Deferred Compensation Plan to the Choice Hotels International, Inc. Supplemental Executive Retirement Deferred Compensation Plan in accordance with this Section. In addition, each Choice Individual for whom an accrued benefit whose account balance under the Sunburst Hospitality Corporation Supplemental Executive Retirement Manor Care, Inc. Deferred Compensation Plan has been assumed by transferred to the Choice Hotels International, Inc. Supplemental Executive Retirement Deferred Compensation Plan shall be required to execute a waiver which acknowledges that all liabilities for benefits accrued under the Sunburst Hospitality Corporation Supplemental Executive Retirement Manor Care, Inc. Deferred Compensation Plan through the date immediately preceding the Distribution Date shall be assumed by Choice, except that Sunburst Manor Care shall remain liable, for a period of thirty (30) months following the Distribution Date, for such benefits to the extent such amounts are not paid when due by Choice.

Transfer and Acceptance of Account Balances. As soon as ------------------------------------------- practicable after the Distribution Date, Sunburst Manor Care shall transfer to Choice an amount (in cash, securities, other property or a combination thereof) representing the present value of the full accrued benefit of all Choice Employees who had earned a benefit in the Sunburst Hospitality Corporation Manor Care, Inc. Supplemental Executive Retirement Plan on the Cut-off Date, said amounts to be established as the initial accrued benefits of such individuals under the Choice Hotels International, Inc. Supplemental Executive Retirement Plan. Sunburst Manor Care and Choice shall take such steps as may be necessary to obtain releases of Sunburst Manor Care from Choice Employees whose accrued benefits are transferred from the Sunburst Hospitality Corporation Manor Care, Inc. Supplemental Executive Retirement to the Choice Hotels International, Inc. Supplemental Executive Retirement Plan in accordance with this Section. In addition, each Choice Individual for whom an accrued benefit under the Sunburst Hospitality Corporation Manor Care, Inc. Supplemental Executive Retirement Plan has been assumed by the Choice Hotels International, Inc. Supplemental Executive Retirement Plan shall be required to execute a waiver which acknowledges that all liabilities for benefits accrued under the Sunburst Hospitality Corporation Manor Care, Inc. Supplemental Executive Retirement Plan through the date immediately preceding the Distribution Date shall be assumed by Choice, except that Sunburst Manor Care shall remain liable, for a period of thirty (30) months following the Distribution Date, for such benefits to the extent such amounts are not paid when due by Choice.