Employment Contract - Petroleum Geo-Services ASA and Svein Rennemo
Employment Contract Svein Rennemo Page 1
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Translation from Norwegian
EMPLOYMENT CONTRACT
BETWEEN
PETROLEUM GEO-SERVICES ASA, LYSAKER
AND
CEO/GROUP MANAGING DIRECTOR SVEIN RENNEMO
Svein Rennemo, born 24 July 1947, is appointed as the company's CEO/Group
Managing Director as from 7 November 2002.
As CEO/Group Managing Director Svein Rennemo shall perform the tasks that ensue
from the Companies Act (Norway), the job description, if any, and instructions
from the company's Board of Directors and the Chairman of the Board. The
CEO/Group Managing Director reports to the Board.
SALARY ETC.
His annual salary will be NOK 3,250,000.-, 1/12 of which will be paid out on the
25th of each month, except for the month in which holiday pay is paid. Salary
will be reviewed annually as of 1 January, the first time being 1 January 2004.
Car expenses will be paid in the sum of NOK 150,000.- p.a.
Svein Rennemo will be included in the company's group life, accident and travel
insurance and any other personal insurances held by the company.
BONUS
It will be possible for Svein Rennemo to obtain a bonus of up to 40% of his
regular salary. The criteria for payment of bonus will be laid down in a
separate agreement between the Board and the CEO.
PENSION
No pension rights will be earned. In compensation for this Svein Rennemo will
receive NOK 250,000.- p.a.
The stipulated retirement age is 60 years. Svein Rennemo's further connection
with the company after that will be discussed by the parties within six months
before he turns 60.
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OPTIONS
Svein Rennemo will receive options at a date to be defined later. The number,
price and term to maturity will be specified in the options agreement.
ASSIGNMENTS OUTSIDE THE COMPANY
Svein Rennemo shall spend all of his working time on the position as CEO. All
and any outside assignments, including unpaid assignments, must be approved in
advance by the Chairman of the Board.
TERMINATION OF EMPLOYMENT
The period of notice is 12 months for either party, with curtailment for other
income with the exception of unearned income.
A decision as to whether the CEO/Group Managing Director is to be under
obligation to work for up to 3 months during the period of notice, will be made
by the company. Even if the work obligation is not brought to bear, the
CEO/Group Managing Director shall not take employment in a company that directly
or indirectly operates in competition with Petroleum Geo-Services ASA or its
subsidiaries.
If Svein Rennemo is in breach of his obligations, this contract may be
terminated with immediate effect. Nevertheless the company will be entitled (but
not obliged) to make the non-competition clause effective in return for
maintaining payments of salary. At any time whatsoever the company may, at its
option, decide to cease payment of salary, but then the non-competition clause
will cease to apply.
CONFIDENTIALITY
While employed by the company and also after his employment ceases, Svein
Rennemo shall observe confidentiality concerning all knowledge and information
relating to the company, its business and administrative matters that may be
useful to companies that compete directly or indirectly with Petroleum
Geo-Services ASA and its subsidiaries.
HOLIDAYS
Svein Rennemo is entitled to holidays and holiday pay in accordance with the
Norwegian Holidays Act. The time of taking holidays shall be agreed with the
Chairman of the Board. Regular salary and bonus paid out constitute the basis
for calculating holiday pay.
DISPUTES
Any dispute that might arise in connection with the employment relations and
this contract shall be settled by an arbitration tribunal. Each party shall
appoint one arbitrator and the two arbitrators shall appoint the umpire. If a
party fails to make any appointment within fourteen days after arbitration has
been requested, the arbitrator
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shall be appointed by the chief judge of Baerum District Court. The arbitration
award shall be final and binding for the parties.
Lysaker, 4 November 2002
For Petroleum Geo-Services ASA
Jens Ulltveit-Moe (signed)
Chairman of the Board Svein Rennemo (signed)
[SEAL]
True translation certified
Government Authorized Translator
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Translation from Norwegian
ADDENDUM
TO
EMPLOYMENT CONTRACT
BETWEEN
PETROLEUM GEO-SERVICES ASA, LYSAKER
AND
CEO/GROUP MANAGING DIRECTOR SVEIN RENNEMO
Reference is made to the above mentioned employment contract, dated 4 November
2002.
The following is also to be included in that contract under the heading "Salary
etc.":
- Free private telephone and mobile telephone
- One free newspaper
This addendum is to have retroactive effect from and including 4 November 2002.
Lysaker, 11 February 2003
For Petroleum Geo-Services ASA
Jens Ulltveit-Moe (signed) Svein Rennemo (signed)
Chairman of the Board CEO/Group Managing Director
[SEAL]
True translation certified
Government Authorized Translator