Employment Agreement - deCODE genetics ehf. and Hakon Guobjartsson
[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
workplace.
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
Stefansson
The employer reserves the right to make changes in the employee's
projects or supervision if the employer deems this necessary.
2. PERIOD OF EMPLOYMENT
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
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months. At the completion of the trial period, termination shall be in
writing and be based on the end of the month.
3. JOB OBLIGATIONS
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.
4. WORKING HOURS
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
hours.
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
employee.
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
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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.
6. INSTANCES OF ACCIDENT AND ILLNESS AND INSURANCE
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
342,100.
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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
1,479,700.
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
3.
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.
7. CONFIDENTIALITY
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
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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.
8. PROPRIETARY INFORMATION AND INVENTIONS
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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