4Exhibit 10.1


 





 


 


NOTE: CERTAIN PORTIONS OF THIS
DOCUMENT HAVE BEEN MARKED TO INDICATE THAT CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED FOR CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT.  THE CONFIDENTIAL PORTIONS HAVE BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.


 


[English Translation of Original Icelandic Language Document]


 


EMPLOYMENT
CONTRACT


 


 


Íslensk
erfðagreining ehf, State Reg. No. 691295-3549, Sturlugata 8
Reykjavík, (“the Employer”) and Hákon Hákonarson, Id. No. 091260-2469, resident
at Grjótasel 3, 109 Reykjavík, (“the Employee”) enter into the following new
Employment Contract which shall replace the earlier contract between the
parties of 20 October 1998.


 


1. Field of work


 


The Employee
is employed by the Employer as “VP Clinical
Sciences”.


 


The workplace is the Employer’s base of operations at Sturlugata in
Reykjavík or the Employer’s other bases of operation, as appropriate.


 


The Employee
will work under the supervision of the CEO.


 


The Employee
is the Head of the company Pharmacogenomics Research Department and
responsible, moreover, for the operation of Encode ehf.


 


Furthermore,
the Employee is employed in scientific research and business development, and
diagnostic markers research also falls within his terms of reference.


 


2. Term of employment


 


The Employee began work for the Employer in October 1998.


The mutual notice period of termination of Employee and Employer is
three months.


 


3. Duties


 


The Employee
undertakes to execute faithfully and conscientiously all tasks entrusted to
him. While working for the Employer, the Employee may not accept permanent
employment outside ÍE except with the full knowledge and approval of his
immediate superior and the Head of Human Resources. The approval of the Employer
shall be in writing if the employment in question constitutes competition with
the Employer’s operations, or if it could otherwise conflict with the
Employee’s work for the Employer.


 


Upon termination of his employment, the Employee shall hand over all documents
and identification papers in his custody and belonging to the Employer.


 

















 


4. Working Hours


 


The Employee is appointed for a full-time position which is a position
of responsibility and management. Working hours are determined by what is
necessary to perform the work in an efficient and effective manner,
irrespective of whether this requires work outside regular working hours or
not.


 


The Employer and Employee may at any time during the term of employment
agree on other arrangements regarding working hours.


 


5. Wage Terms


 


The Employee’s fixed monthly salary shall be ISK [CONFIDENTIAL TREATMENT
REQUESTED] per month. Payment for any work carried out outside regular working
hours and for work-related tasks of any kind is included in the above monthly
salary.


 


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


 


The above wages constitute full remuneration
for the work performed by the Employee.


 


Rights of the Employee to vacation time and maternity/paternity leave
are subject to statutory law.


 


The Employee will pay 4% of his total wages as a contribution to a
pension fund of his choice and the Employer shall contribute 6% of the same
amount.


 


The Employer will provide the Employee with a mobile telephone for use
in the company’s interest and pay the operating costs.


 


6. Accidents, illness and
insurance


 


Reference is made to Article 6 of the Employment Contract of the
parties dated 20 October 1998, which remains unchanged, and also to the
Employees’ Manual, where ÍE employee insurance is described from time to time
as insurance terms change.


 


7. Confidentiality


 


The Employee holds a position of
responsibility and confidentiality for the Employer. He shall maintain in full
confidence any information which may come to his knowledge in the course of his
duties with regard to the Employer and the Employer’s customers and which could
damage the interests of these parties. Owing to the nature of his work, the
Employee is under obligation to treat all information, documents and data to
which he has access in his work with the utmost confidentiality. This
confidentiality shall remain in effect following termination of employment.


 


The substance of this Employment Contract is
confidential, as are any other contracts or agreements entered into by the
Employee and the Employer. Special emphasis is placed on the Employee
maintaining in confidence his wages and terms of employment.


 


2

















 


While the Employee is in the employ of the
Employer and for one (1) year thereafter, the Employee shall not encourage any
other employees of the Employer to resign from their positions with the
Employer.


 


In the event of the Employee resigning from his position with the
Employer he undertakes not to accept any employment, directly or indirectly,
with companies holding a competitive position vis-à-vis the Employer or with
other competitors, or to initiate or become associated with such activities for
at least two years following termination of his employment.


 


8. Proprietary
Information and Inventions


 


The contract between the parties concerning proprietary information and
inventions dated 20 October 1998 remains in full effect.


 


9. Further
Provisions


 


All earlier employment contracts between the Employer and the Employee
are superseded by this Contract as of its effective date, except as expressly
indicated otherwise in this Contract.


 


Also, the Employee’s Stock Option Agreements shall remain in effect.


 


 


	
  Reykjavík, 23 July 2003.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Employee

  	
   

  	
  For Íslensk
  erfðagreining ehf.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Hákon Hákonarson

  	
   

  	
  /s/ Tanya Zharov

  
	
   

  	
   

  	
   

  
	
  Hákon
  Hákonarson

  	
   

  	
  Tanya Zharov

  



 


3