Common use of Seller’s Secondary Liability Clause in Contracts

Seller’s Secondary Liability. In the event Buyer withdraws from the Surviving Plans in a complete withdrawal, or a partial withdrawal with respect to the covered operations, during the five plan years commencing with the first plan year beginning after the Closing Date, Seller shall be secondarily liable, but only to the extent required by Section 4204 of ERISA with respect to the covered operations if Buyer’s primary liability to the Surviving Plans is not paid. If Buyer withdraws from the Surviving Plans before the last day of the fifth plan year beginning after the Closing Date, and fails to make any withdrawal liability payment when due, then Seller shall pay to the Surviving Plans an amount determined in accordance with the requirements of Section 4204 of ERISA and the law, reduced, as permitted under the law, by the amounts paid by the Buyer.