Common use of LEASING ARRANGEMENT Clause in Contracts

LEASING ARRANGEMENT. (a) As of the date hereof, the Employee is an employee of Staff Leasing, Inc. ("SLI") and is providing the services described in Section 1 to the Company (on a full-time basis) pursuant to a lease agreement between SLI and the Company (the "Lease Agreement"). The Employee receives his compensation and benefits directly from SLI. He receives no compensation or benefits directly from the Company. In effect, the Company is leasing the Employee's services from SLI and is making lease payments to SLI for the same. The Company entered into the Lease Agreement upon the recommendation and at the request of the Employee. The terms of the Lease Agreement were negotiated by the Employee. The salary, benefits and other compensation provided by SLI to the Employee are comparable to the salary, benefits and other compensation provided for in Section 3, and it is the intention of the parties that such comparability shall continue for so long as the Lease Agreement is in effect. (b) For so long as the Lease Agreement is in effect, the Company shall have no obligation to pay any salary, benefits or other compensation directly to the Employee pursuant to Section 3 (and shall have no payroll related obligations in respect thereof), and the Employee shall look solely to SLI for the payment or provision thereof. The Company's only obligation in respect thereof shall be to make the lease payments to SLI under the Lease Agreement in amounts sufficient to support the contemplated salary, benefits and other compensation to be paid or provided to the Employee. Further, the Company shall have no liability or obligation to the Employee in the event that it is determined at any time that the salary or benefits paid or provided to the Employee are less than, or less favorable to the Employee, than those contemplated by Section 3, it being understood and agreed that the Employee has negotiated the terms of the Lease Agreement and the terms of his compensation from SLI. The Employee shall be responsible for ensuring that the terms of the leasing arrangement with SLI provide him with salary benefits and other compensation comparable to those provided for in Section 3. (c) The Company shall have the right at any time to terminate the Lease Agreement and thereafter to (i) employ the Employee directly in accordance with the terms of this Agreement (other than the terms of this Section 8) or (ii) employ the Employee indirectly through another leasing company provided that the salary, benefits and other compensation provided by such other leasing company are at all times comparable to those provided for in Section 3. (d) Except to the extent otherwise provided in this Section 8, all of the terms and provisions of this Agreement shall apply and be effective regardless of whether the Employee is employed indirectly through SLI (or any replacement leasing company) or directly, except that in the event of a termination of the Employee's direct or indirect employment with the Company at a time when the Employee is indirectly employed (through SLI or any replacement leasing company), the Company shall have the option of satisfying its obligations under Section 6 directly or through SLI or any replacement leasing company and except that the Company shall have the option of satisfying any other payment obligations under this Agreement directly or through SLI (for so long as the Lease Agreement is in effect) or any replacement leasing company. Without limiting the generality of the preceding sentence, for purposes of this Agreement only and for purposes of determining the rights and obligations of the parties hereunder, the Employee shall be deemed to be an employee of the Company at all times during which he renders the services provided for in Section 1 whether he renders such services as a direct employee of the Company of as an employee of SLI pursuant to the Lease Agreement or as an employee of any replacement leasing company.