Common use of Indemnification of Employer by Participants Clause in Contracts

Indemnification of Employer by Participants. If any Participant receives one or more payments or reimbursements under the Plan that are not for a permitted Medical Expense such Participant shall indemnify and reimburse the Employer for any liability it may incur for failure to withhold federal or state income tax or Social Security tax from such payments or reimbursements. However, such indemnification and reimbursement shall not exceed the amount of additional federal and state income tax (plus any penalties) that the Participant would have owed if the payments or reimbursements had been made to the Participant as regular cash compensation, plus the Participant’s share of any Social Security tax that would have been paid on such compensation, less any such additional income and Social Security tax actually paid by the Participant.

Indemnification of Employer by Participants. If any Participant receives one or more payments or reimbursements under the Plan that are not for a permitted Medical Expense Benefit, such Participant shall indemnify and reimburse the Employer for any liability it may incur for failure to withhold federal Federal or state State income tax or Social Security tax from such payments or reimbursements. However, such indemnification and reimbursement shall not exceed the amount of additional federal Federal and state State income tax (plus any penalties) that the Participant would have owed if the payments or reimbursements had been made to the Participant as regular cash compensationCompensation, plus the Participant’s share of any Social Security tax that would have been paid on such compensationCompensation, less any such additional income and Social Security tax actually paid by the Participant.