Common use of Employer-Employee Relationship Clause in Contracts

Employer-Employee Relationship. 5.1 For the removal of any doubt it is hereby clarified that in accordance with the Service provider’s requirement in relation to this Agreement, no employer-employee relationship exists between the Company and the Service provider, and the Service provider hereby undertakes to indemnify the Company in respect of any payment and/or expense insofar as it will be required to make payment to the Service provider and/or to any third party, in respect of any claim and/or demand and/or action claiming the existence of an employer-employee relationship between the Company and the Service provider, including any claim and/or demand and/or action whose cause of action originates in severance pay, holiday money, vacation allowance as well as any other social benefit. For the avoidance of any doubt the parties hereby reaffirm that the monthly payment for the management fees is fixed in terms of cost to the Company and that it includes the tax costs of the Company for providing the Services. Any additional consideration that will be claimed by the Service provider as receivable from the Company in respect of any finding of any competent court or authority to the effect that an employer-employee relationship exists between the Company and the Service provider and is not expressly mentioned in this Agreement, will be paid to the Service provider by retroactively setting off against the monthly payments that have been made to the Service provider in a manner whereby the total cost of the Service provider’s employment to the Company will stand at an amount equal to 60% of the aggregate consideration that will be received during the term of this Agreement as herein provided (“the New Salary”). The Service provider undertakes to repay to the Company any amount that it has received in excess of the New Salary during the relevant period together with linkage differentials and lawful interest as from the date on which any sum was paid until the date of actual payment thereof.