Document:

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                                                                    EXHIBIT 10.3

                           NON-STATUTORY STOCK OPTION

_________________________, Optionee:

         deCODE genetics, Inc., a Delaware corporation (the "Company"), has
granted to you, the optionee named above, an option to purchase shares of the
common stock of the Company ("Common Stock"). This option is not intended to
qualify as an "incentive stock option" within the meaning of Section 422 of the
United States Internal Revenue Code of 1986, as amended (the "Code"). The grant
hereunder is intended to comply with the provisions of the United States
Securities Act of 1933, as amended (the "Act") and the regulations promulgated
thereunder by the United States Securities and Exchange Commission.

         This Option is granted under, and is subject to, the provisions of the
Company's 1996 Equity Incentive Plan, as amended from time to time (the "Plan")
and shall be exercisable only on the following terms and conditions:

         The details of your option are as follows:

         1.       DEFINITIONS.

                  (a)      "AFFILIATE" means any parent corporation or
subsidiary corporation, whether now or hereafter existing, as those terms are
defined in Sections 424(e) and (f), respectively, of the Code.

                  (b)      "BOARD" means the Board of Directors of the Company.

                  (c)      "CAUSE" means (a) gross or habitual failure to
perform the person's assigned duties, that is not corrected within thirty (30)
days after written notice to the person thereof or (b) misconduct, including,
but not limited to: (i) conviction of a crime, or entry of a plea of nolo
contendere with regard to a crime, involving moral turpitude or dishonesty, (ii)
illegal drug use or alcohol abuse on Company premises or at a Company sponsored
event, (iii) conduct by the person which in the good faith and reasonable
determination of the Board demonstrates gross unfitness to serve, (iv)
participation in a fraud or act of dishonesty against the Company, or (v)
intentional, material violation by the person of any contract between the person
and the Company or of any statutory duty of the person to the Company. Neither
mental nor physical disability shall constitute "Cause."

                  (d)      "CONSULTANT" means any person, including an advisor,
engaged by the Company or an Affiliate to render consulting services and who is
compensated for such services, provided that the term "Consultant" shall not
include Directors who are paid only a director's fee by the Company or who are
not compensated by the Company for their services as Directors.

                  (e)      "CONTINUOUS STATUS AS AN EMPLOYEE, DIRECTOR OR
CONSULTANT" means the person's service with the Company, whether as an Employee,
Director or Consultant, is not interrupted or terminated. The Board or the chief
executive officer of the Company may determine, in that party's sole discretion,
whether Continuous Status as an Employee, Director or Consultant

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shall be considered interrupted in the case of: (i) any leave of absence
approved by the Board or the chief executive officer of the Company, including
sick leave, military leave, or any other personal leave; or (ii) transfers
between the Company, Affiliates or their successors.

                  (f)      "DIRECTOR" means a member of the Board.

                  (g)      "EMPLOYEE" means any person, including Officers and
Directors, employed by the Company or any Affiliate of the Company. Neither
service as a Director nor payment of a director's fee by the Company shall be
sufficient to constitute "employment" by the Company.

                  (h)      "OFFICER" means a person who is an officer of the
Company within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.

         2.       TOTAL NUMBER OF SHARES SUBJECT TO THIS OPTION. The total
number of shares of Common Stock subject to this option is ______________
(__________).

         3.       VESTING. Subject to the limitations contained herein,
twenty-five percent (25%) of the shares will vest (become exercisable) on
______________, and 1/48th of the shares will then vest on the last day of each
month thereafter until either: (i) you cease to provide services to the Company
for any reason; or (ii) this option becomes fully vested. Additionally, vesting
will be suspended for the duration of any leave of absence that does not
constitute a termination of your Continuous Status as an Employee, Director or
Consultant.

         4.       EXERCISE PRICE AND METHOD OF PAYMENT.

                  (a)      EXERCISE PRICE. The exercise price of this option is
$_______ per share.

                  (b)      METHOD OF PAYMENT. Payment of the exercise price per
share is due in full upon exercise of all or any part of this option. You may
elect, to the extent permitted by applicable statutes and regulations, to make
payment of the exercise price under one of the following alternatives:

                           (i)      Payment of the exercise price per share in
cash (including check) at the time of exercise;

                           (ii)     Delivery of a copy of irrevocable
instructions to a broker to sell the shares to be issued on exercise of the
option and to deliver promptly to the Company from the sales proceeds an amount
of cash equal to the aggregate exercise price; or

                           (iii)    Payment by a combination of the methods of
payment permitted by subparagraphs 4(b)(i) and 4(b)(ii) above.

         5.       WHOLE SHARES. This option may not be exercised for any number
of shares which would require the issuance of anything other than whole shares.

         6.       SECURITIES LAW COMPLIANCE. Notwithstanding anything to the
contrary contained herein, this option may not be exercised unless the shares
issuable upon exercise of this option are then registered under the Act or, if
such shares are not then so registered, the Company has

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determined that such exercise and issuance would be exempt from the registration
requirements of the Act.

         7.       TERM. The term of this option commences on _________________,
the date of grant, and expires on ____________________ (the "Expiration Date,"
which date shall be no more than ten (10) years from date this option is
granted), unless this option expires sooner as set forth herein. In no event may
this option be exercised on or after the Expiration Date. This option shall
expire on the date of your termination of Continuing Status as an Employee,
Director or Consultant if: (a) such termination is for Cause; or (b) after such
termination you provide services for or acquire an ownership interest in any
business which competes with the Company. If not previously terminated, this
option shall expire on the date that is three (3) months after the Optionee's
termination of Continuing Status as an Employee, Director or Consultant.
However, this option may be exercised following termination of Continuous Status
as an Employee, Director or Consultant only as to that number of shares as to
which it was exercisable on the date of termination of Continuous Status as an
Employee, Director or Consultant under the provisions of Paragraph 3.

         8.       EXERCISE.

                  (a)      Optionee may exercise this option, to the extent
specified above, by delivering an exercise notice (in a then form designated by
the Company) together with the exercise price to the Secretary of the Company,
or to such other person as the Company may designate, during regular business
hours, together with such additional documents as the Company may then require
for purposes of compliance with any applicable law, rule or regulation.

                  (b)      By exercising this option, you agree that:

                           (i)      as a precondition to the completion of any
exercise of this option, the Company may require you to enter an arrangement
providing for the payment by you to the Company of any tax withholding
obligation of the Company arising by reason of: (A) the exercise of this option;
(B) the lapse of any substantial risk of forfeiture to which the shares are
subject at the time of exercise; or (C) the disposition of shares acquired upon
such exercise; and

                           (ii)     at the request of the Company, you will
execute and become a party to any voting agreement then in effect between the
Company and any of its common stockholders.

         9.       TRANSFERABILITY. This option is not transferable, except (i)
by will or by the laws of descent and distribution, (ii) to your spouse,
children, lineal ancestors and lineal descendants (or to a trust created solely
for your benefit and that of the foregoing persons), (iii) to an organization
exempt from taxation pursuant to Section 501(c)(3) of the Code or to which tax
deductible contributions may be made under Section 170 of the Code (excluding
such organizations classified as private foundations under applicable
regulations and rulings), or (iv) to your Affiliate. Notwithstanding the
foregoing, by delivering written notice to the Company, in a form satisfactory
to the Company, you may designate a third party who, in the event of your death,
shall thereafter be entitled to exercise this option.

         10.      OPTION NOT A SERVICE NOR EMPLOYMENT CONTRACT. This option is
neither a service nor an employment contract. Nothing in this option shall be
deemed to: (i) create in any way whatsoever any obligation on your part to
continue in the employ of the Company, or of the

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Company to continue your employment with the Company; or (ii) obligate the
Company or any Affiliate of the Company, or their respective stockholders,
boards of directors, officers or employees to continue any relationship which
you might have as a Director or Consultant for the Company or Affiliate of the
Company.

         11.      NOTICES. Any notices provided for in this option shall be
given in writing and shall be deemed effectively given upon receipt or, in the
case of notices delivered by the Company to you, five (5) days after deposit in
the mail, postage prepaid, addressed to you at the address specified below or at
such other address as you hereafter designate by written notice to the Company.

         12.      GENDER. Whenever the context requires, words denoting gender
in this option shall include the masculine, feminine and neuter.

Dated: ________________               Very truly yours,

                                      deCODE genetics, Inc.

                                      By:__________________________________
                                           Kari Stefansson, President

ATTACHMENTS:

Form of Exercise Notice
deCODE genetics, Inc. 1996 Equity Incentive Plan

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The undersigned:

                  (a)      Acknowledges receipt of the foregoing option and the
attachments referenced therein and understands that all rights and liabilities
with respect to this option are set forth in the option; and

                  (b)      Acknowledges that as of the date of grant of this
option, it sets forth the entire understanding between the undersigned optionee
and the Company and its Affiliates regarding the acquisition of stock in the
Company and supersedes all prior oral and written agreements on that subject
with the exception of (i) the options previously granted and delivered to the
undersigned under stock option plans of the Company, and (ii) the following
agreements only:

          NONE _____________
                   (Initial)

         OTHER _____________________________________
               _____________________________________
               _____________________________________

                                           _____________________________________
                                                        (signature)

                                           _____________________________________
                                                        (print name)

                                  Address: _____________________________________
                                           _____________________________________
                                           _____________________________________
                                           _____________________________________

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                                                                   Exhibit 10.52

                             OFFICER'S CERTIFICATE

     I, the undersigned, do hereby certify and represent that:

     1.   I am the duly elected Executive VP, Senior Business and Finance
Officer of deCODE genetics, Inc., a Delaware Corporation.

     2.   Pursuant to Rule 306(a) of Regulation S-T, the following exhibit 10.52
to deCODE genetics, Inc.'s Annual Report on Form 10-K is a fair and accurate
English translation of a document prepared in the Icelandic language.

     IN WITNESS WHEREOF, I have signed this Officer's Certificate in my
capacity as Executive VP, Senior Business and Finance Officer of deCODE
genetics, Inc. on this 14 day of March, 2001.

                      By:    /s/  Hannes P. Smarason
                             -------------------------------------------
                      Name:  Hannes P. Smarason

                      Title: Executive VP, Senior Business and Finance Officer

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                                                                   Exhibit 10.52

                             [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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