Employment Agreement - deCODE genetics Ltd. and Einar Stefansson
[deCODE genetics - LOGO]
EMPLOYMENT AGREEMENT
deCODE genetics Ltd. (Islensk erfoagreining ehf.), State Registration No.
691295-3549, of Lynghals 10, Reykjavik ("the employer"), on the one hand, and
Einar Stefansson 190552-2769
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(employee name) (identification number)
whose address is Fjaroarasi 13, 110 Reykjavik (" the employee") on the other
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hand
enter into the following employment agreement:
1. FIELD OF WORK.
The employee is hired to work for the employer as a Vice President of the
Database Division of IE. In his work he will participate in the management
of the company and will, as such, [influence] its strategic planning and
development.
The workplace is the employer's base of operations at Hlioarsmara 15,
Kopavogur and/or Lynghals 1, Reykjavik. If the employer's base of
operations in Reykjavik changes or their number increases, the work place
of the employee may change accordingly.
The employee will work under the supervision of the CEO.
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 September 2000
Einar Stefansson (ES) and IE agree that IE may not terminate the
Employment Agreement with ES for two years, counting from the first day of
employment. At the end of said period the mutual notice period for
termination shall be 6 months.
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ES, on the other hand, may terminate this agreement with a 6 month notice
period from the first day of his employment.
3. JOB OBLIGATIONS AND OTHER JOBS
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.
It is agreed that ES shall continue to hold his position as professor at
the University of Iceland, which is in part sponsored by IE in accordance
with a special agreement on the said position between the University of
Iceland and IE which agreement shall form an appendix to this Agreement.
ES shall also be permitted to continue to work as a physician and on
genetic research on eye diseases. To begin with ES may spend between half
to one full day per week for the said work with no reduction of his wages
from IE. This research relates to patients at the Centre for Eye Diseases
on Oldugata 17.
It is agreed that during his term of employment ES will act as a contact
person between IE and the University of Iceland on behalf of IE.
ES shall be authorised to hold lectures in his special field in Icelandic
and foreign institutions and at conferences but shall ensure that the
timing of such lectures does not interfere with his duties at the company.
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.
During the period of employment, the employer and employee can agree on an
arrangement of working hours other than the one above.
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5. WAGES
The employee's fixed monthly wages are ISK 1,000,000.- . 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.
In addition to the above fixed wage ES shall be paid a performance-linked
wage bonus which shall be based on his performance in the job and the
general performance of the company, according to a decision and strategic
targets established by the Compensation Committee, which is a committee
elected by the Board of Directors of deCODE genetics, Inc. The aim is that
such wage supplement should be 20-40% of the fixed wages based on the
above criteria.
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 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
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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.
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.
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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 the utmost
confidentiality. This confidentiality continues in force after termination
of employment.
The substance of this employment agreement, as well as any other
agreements that the employer may enter into with the employee, are
confidential. Particular emphasis is placed on the employee maintaining
confidentiality with regard to wages and wage terms.
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.
All previous employment agreements, offers and memos on employment terms
between the employee and the employer are declared void as of the date of
effect of this agreement.
Reykjavik, 22 November 2000
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Employee On behalf of DECODE GENETICS, INC.
/s/ Einar Stefansson /s/ Kari Stefansson
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APPENDIX I
Agreement between the University of Iceland and deCODE genetics, Inc on the work
undertaken by Professor Einar Stefansson, of 1 November 2000.
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