Sample Business Contracts

Employment Agreement - deCODE genetics ehf. and Hakon Guobjartsson

Employment Forms

  • Employment Agreement. Employers can customize an employment agreement that states the salary, benefits, working hours and other important provisions for their new or existing employee.
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  • Sales Representative Contract. Independent sales representatives offer companies the potential to increase the sale of products or services without the burden of increasing headcount. Both parties should understand how commissions are calculated, when commissions will be paid, as well as how the representative will treat confidential information from the company and whether the representative may also sell a competing line of products or services.
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                             [deCODE GENETICS LOGO]

                              EMPLOYMENT AGREEMENT

deCODE Genetics ehf. (Islensk erfoagreining ehf.), State Registration No.
691295-3549, of Lynghals 10, Reykjavik ("the employer"), on the one hand, and

    Hakon Guobjartsson                         300366-4229
     (employee name)                      (identification number)

whose address is    Styrimannastigur 2 (" the employee") on the other hand
enter into the following employment agreement:

    1.  FIELD OF WORK.

    The employee is hired to work as a/an Vice president, Informatics Division
    (job title, position) for the employer.

    The workplace is the employer's base of operations at Lynghals 1,
    Reykjavik, but if the employer's base of operations in Reykjavik
    changes or increases in number, the employee agrees to a change in his

    The employee's work will be the Management and Development of the
    Informatics Division and he or she will work under the supervision of Kari

    The employer reserves the right to make changes in the employee's
    projects or supervision if the employer deems this necessary.


    The employee began work for the employer on 1 Sept. year 1996.
    Termination of employment by either party shall be with one week's
    notice for the first three months of the employment period, which shall
    be a trial period. For the next three months following the trial
    period, the mutual notice period for termination shall be one month.
    After six months' work, the mutual notice period for termination shall
    be three

<PAGE>   3
    months. At the completion of the trial period, termination shall be in
    writing and be based on the end of the month.


    The employee pledges to do the work he undertakes with a sense of duty
    and diligence. While working for the employer, the employee may not,
    unless with the employer's written consent, work at other jobs or
    participate in other employment that competes with the employer's
    operations, or that can conflict in some other way with the employee's
    work for the employer.

    Upon termination of his employment, the employee has a duty to turn
    over all documents and identification papers in his custody that
    pertain to the employer.


    The employee's fixed working hours are from 9 o'clock to 5 o'clock
    Monday through Friday, unless otherwise agreed. The employee shall also
    work other hours, if necessary, depending on to what extent the nature
    of his projects so require, unless urgent circumstances prevent his
    doing so. The days off are the holidays of the National Church, the
    First Day of Summer, 1 May, 17 June and the first Monday in August.

    If an urgent necessity comes up, the employer can call the employee to
    work at any time outside normal working hours.

    Mealtime, 30 minutes, shall be during the period 11:30 - 13:30 and is
    not counted as part of working hours. On regular workdays, there shall
    be two 15-minute coffee breaks, which are counted as part of working

    During the period of employment, the employer and employee can agree on
    an arrangement of working hours other than the one above.

    5.  WAGES

    The employee's fixed monthly wages are ISK 750,000. Payment for work done
    outside regular working hours and for any kind of work-related tasks is
    included in the above monthly wages.

    Wages shall be paid monthly on the last working day of each month.

    The wages stated above are complete remuneration for the work done by the

    Wages and other wage terms shall be re-examined every year, taking into
    consideration general wage changes and work results.

    The rights of the employee to vacation and maternity leave will be according
    to law.

    When the employee has earned a full right to vacation by working for the
    employer in the last vacation year, upon beginning his vacation or no later
    than 15 August each

<PAGE>   4
    year, he shall receive a special lump-sum payment. This vacation supplement,
    based on full-time employment in the last vacation year, shall be ISK 8,400,
    or a proportional amount of this sum if part-time work or a shorter period
    of work is involved. Vacation pay is not paid for vacation supplements.

    The employee pays 4% of his total wages as a premium into a pension fund of
    his own choice, and the employer pays 6% of the same amount.


    When the employee has an accident at work, the employer pays for getting the
    employee home or to hospital and, for each instance, reimburses him for up
    to four weeks of normal, out-of-pocket medical expenses that district health
    insurance or Social Security does not pay.

    In each instance of an accident at work or a work-related illness caused on
    the job or by it, or occurring during transport to and from the workplace,
    the employer pays up to three months' wages according to the employee's wage
    scale in effect when the accident or illness occurs, provided that per diem
    paid for these days by the State Social Security Institute and/or the
    district health insurance is paid to the employer. The provisions of this
    paragraph do not prejudice any additional rights the employee may have under
    the law.

    Wage payments to the employee during absences due to illness shall be
    arranged the first year so that two days are paid for each month worked.
    When the employee has worked for the employer for one year or longer, wage
    payments during absences due to illness shall be arranged as follows: After
    one year, two months for every 12 months. After five years of work for the
    employer, four months for every 12 months, and after 10 years working for
    the employer, six months for every 12 months.

    If an employee becomes ill and for this reason cannot go to work, he shall
    immediately notify his superior, who decides whether a health certificate
    shall be provided. The certificate shall be from a consulting physician if
    this is requested. The employer shall pay for the health certificate if the
    above conditions are met.

    After the first month at work a parent shall, without any deduction from
    wages, be entitled to spend a total of seven workdays of every 12-month
    period in ministering to his sick children under the age of 13, provided
    that other care cannot be procured.

    The employer is obligated to insure the employee against death and chronic
    or temporary disability caused be an accident while at work or while
    travelling a normal route between his home and the workplace.

    If, because of his work, the employee has accommodations away from his home,
    the accommodations replace his home, but the insurance also covers normal
    trips between his home and these accommodations.

    Compensation for death will be (as of 1 Jan. 1998):

    1.  If the deceased was not married and is not survived by a child and has
        not been supporting an aged parent 67 years of age or older, ISK

<PAGE>   5
    2.  If the deceased was not married but is survived by a child (children)
        under 17 and/or has provably supported an aged parent or parents (aged
        67 or older), ISK 1,083,500.

    3.  If the deceased was married, the compensation to the spouse is ISK

    4.  If the deceased is survived by a child (adopted child, foster child)
        under 17 years of age, for each child ISK 284,800.

    5.  Compensation is paid under only one of the sub-paragraphs, no. 1, 2 or

    In addition to sub-paragraphs 2 and 3, compensation can be paid under
    sub-paragraph 4.

    The beneficiaries of death compensation provisions are:

    1)  Legal heirs.
    2)  Relevant parties equally
    3)  Surviving spouse.
    4)  Relevant children, but paid to surviving spouse if he/she is one of
        the parents, or to an executor and/or trustee.

    Compensation for chronic disability is paid in proportion to the
    insurance amount of ISK 2,589,000 so that each degree of disability
    from 26% to 50% is counted double, and each degree of disability from
    51% to 100% works triple.

    For temporary disability, per diem of ISK 5,884 is paid per week four
    weeks after the accident occurred and until the injured person becomes
    able to work, although for no more than 48 weeks. ISK 785 per week are
    added to the per diem for each child under the age of 17 that the
    injured person is supporting.

    The amounts of insurance will be reconsidered twice a year, 1 January
    and 1 July, and increased in correspondence with changes in the
    cost-of-living index.

    The insurance goes into force as soon as the employee begins work and
    expires as soon as he stops working.

    The policy terms of the insurance shall be the general policy terms in
    force for wage earner job accident insurance at the Association of
    Icelandic Insurance Companies when this employment agreement is signed.

    If the employer becomes liable for damages in respect of the employee,
    accident compensation and per diem paid to the employee under
    provisions of this employment agreement shall be fully deductible from
    any damages that the employer may be made to pay. While the payment of
    wages continues, per diem is paid to the employer.


    The employee fills a job of responsibility and trust for the employer.
    He shall maintain the utmost confidentiality about whatever he has
    become aware of in his job regarding the employer and the employer's
    customers, and which can damage the interests of these parties. Due to
    the nature of his work, the employee is obligated to handle all
    information, documents and data to which he has access in his work with

<PAGE>   6
    the utmost confidentiality. This confidentiality continues in force
    after termination of employment.

    While the employee works for the employer and for one (1) year
    thereafter, the employee shall not encourage any of the employer's
    employees to quit working for the employer.

    If the employee quits working for the employer, he obligates himself
    not to accept work either directly or indirectly at competing companies
    or other competing parties, or to start up or join such operations for
    at least two years after termination of employment.


    In parallel with the signing of this employment contract, the employer
    and employee enter into an agreement on proprietary information and
    inventions. That agreement is deemed a premise for and part of this
    employment agreement.

                                        Reykjavik, 5 May 1999

    Employee                            On behalf of ISLENSK ERFOAGREINING EHF.

/s/ Hakon Guobjartsson                  /s/ Olafur E. Frioriksson
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