Multiemployer Plan Liability Clause Samples

Multiemployer Plan Liability. (a) To the extent reasonably necessary to ---------------------------- avoid the imposition of withdrawal liability on ESC, URNJ shall: (i) contribute to each Multiemployer Plan for substantially the same number of contribution base units for which ESC has an obligation to contribute prior to the Closing Date; and (ii) provide to each Multiemployer Plan, for a period of five plan years commencing with the first plan year beginning after the Closing Date, a bond to be obtained by URNJ issued by a corporate surety corporation, or a sum to be provided by URNJ held in escrow by a bank or similar financial institution, or an irrevocable letter of credit to be obtained by URNJ, equal to the greater of (A) the average annual contribution required to be made by ESC under the Multiemployer Plan for the three plan years preceding the plan year in which the Closing Date occurs or (B) the annual contribution that ESC was required to make under the Multiemployer Plan for the last plan year prior to the plan year in which the Closing Date occurs, or shall obtain a waiver of the requirements to provide any of the foregoing or shall comply with alternatives acceptable to the Multiemployer Plan, in order to ensure compliance with Section 4204 of ERISA. If at any time during the first five plan years beginning after the Closing Date, URNJ withdraws from, or fails to make a required contribution to, one of the Multiemployer Plans, the bond, escrow, or letter of credit obtained with respect to such Multiemployer Plan, if any, shall be paid to such Multiemployer Plan. (b) Notwithstanding any other provision hereof, URNJ's obligations under this Section 6.13 are limited to the extent necessary to comply with Section 4204 of ERISA. If URNJ effects a complete or partial withdrawal from a Multiemployer Plan during the first five plan years following the Closing Date and URNJ fails to make any withdrawal liability payment to the Multiemployer Plan when due, then ESC shall be secondarily liable to the Multiemployer Plan for any unpaid withdrawal liability to the extent that ESC would have incurred such liability following the Closing Date had URNJ not agreed to the provisions of this Section. ESC's obligations set forth in this paragraph shall continue with respect to events that occurred prior to the last day of the five plan year period referred to in this Section 6.13 (regardless of when notice of such liability is received by either URNJ or ESC). URNJ and ESC shall promptly noti...