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EXHIBIT 10.14
CONTRACT OF EMPLOYMENT
Between the Company Swissray
SR Management AG, CH-6285 Hitzkirch
and Swissray International, Inc.
and Laupper Ueli
000 Xxxx 00xx Xxxxxx
Xxxxxxxxx 00-X
Xxx Xxxx, XX 00000
Tel.
Date of birth: 04-04-1970
Nationality: Swiss
Social Insurance No. 583.70.204.118
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POSITION AND AREA OF RESPONSIBILITY
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CLAUSE 1 POSITION
The employer takes on the employee as
Marketing and Sales Director
CLAUSE 2 AREA OF RESPONSIBILITY
According to separate job description.
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BEGIN, DURATION AND TERMINATION OF EMPLOYMENT CONTRACT
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CLAUSE 3 START OF EMPLOYMENT CONTRACT
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The position is to be taken up on December 18, 1997.
CLAUSE 4 PROBATION
Without any probationary period.
CLAUSE 5 DURATION AND TERMINATION OF EMPLOYMENT CONTRACT
This contract has been finalised for a three years period of time. It prolongs
automatically for an other three years provided there is not given notice 6
months before expiry date of this agreement.
The deadline for termination of employment is the last day of the month. Written
notice terminating the employment contract must be in possession of the other
contract partner by the last working day of the month.
Should this agreement be disolved before the expiry date on grounds of which the
employee is not responsible for the company pays to the employee a compensation
of CHF 500'000.
On reaching retirement age, this employment contract automatically terminates on
the last day of the birth month.
CLAUSE 6 TERMINATION OF EMPLOYMENT WITHOUT NOTICE
Under extentuating circumstances and in accordance with Clause 337 of the Code
of Obligations, this contract of employment may be terminated without notice by
both parties.
CLAUSE 7 PROTECTION AGAINST WRONGFUL DISMISSAL
Applicable for the protection of wrongful dismissal is Clause 336 of the Code of
Obligations. In the case of obligatory military service, illness, accident,
pregnancy, childbirth or overseas relief action services, Clause 336c is
applicable for the protection of wrongful dismissal.
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GENERAL RIGHTS AND DUTIES OF THE EMPLOYEE
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CLAUSE 8 FURTHERING OF CAREER ORIENTATED EDUCATION
Private courses for further education attended by the employee will
fundamentally be supported by means of a company contribution, on the basis that
the imparted knowledge is beneficial to the employee's business activities.
Company contributions of this nature will be awarded according to Chapter 6 of
the personnel regulations.
CLAUSE 9 RESPONSIBILITIES AND ALLEGIANCE
The employee is charged with the responsibility of carrying out the delegated
duties in a conscientious manner and according to the best interests of the
employer. For the duration of the employment contract, the employee may not
compete against the employer. The employee is bound to safeguard the fabrication
and company secrets of the employer.
CLAUSE 10 FURTHER RIGHTS AND DUTIES
It is the duty of the employee to inform the Personnel Department timeously of
any alterations to personal circumstances, i.e. change of address, civilian
status, childbirth, military committments/promotions etc. On the birth of a
child, the birth certificate is to be shown. Inconveniences caused to the
employee as a result of failure to carry out these duties, are the sole
responsibility of the person affected.
Every employee actively exposed to sources of radiation as a part of their work
is bound to wear a radiation measuring device and to undertake the regular
control examinations according to SUVA. The results of the regular control
examinations are to be entered in the employee's personal radiation dosage book.
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WORKING HOURS, OVERTIME, HOLIDAY
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CLAUSE 11 WORKING HOURS
The normal weekly working hours comprise 42,5 hours. The Management holds itself
to the normal Swiss Trade and Industry practice for the allocation of working
hours.
The company maintains the right to request the employee to work overtime, within
the bounds of reason and within the framework provided by law.
Under normal circumstances the overtime will NOT be paid out. A written request
providing a plausible reason for monetary payment may be given to the
Management. The final decision rests with the Personnel Department and the
President. On leaving the company, an employee's overtime will normally be paid
out.
Should monetary payment be agreed to in an exceptional case, the following
regulation applies:
( Monday to Friday Between 20h00 and 06h00 An additional 25%
Saturday Between 05h00 and 22h00 An additional 25%
( Sundays & Public Holidays An additional 50%
Further particulars are contained in Chapter 3 of the Regulations governing
overtime.
CLAUSE 12 HOLIDAYS
Holiday entitlement per calendar year: (Calendar year is to mean the year in
which the respective age is reached).
- from 21 years of age until 49 years of age 20 working days
- from 50 years of age 25 working days
- from 60 years of age 30 working days
Employees either beginning or leaving their employment are entitlement to
holiday on a pro rata basis. As a calculation medium, until 15 days will be
regarded as half a month and more than 15 calendar days as a full month.
Holidays are to be taken during the relevant current calendar year, at latest
until end April the following year.
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With the agreement of the Departmental Manager, the employee may have a free
choice as to when to take holiday. As early as possible, and latest until end
January of the relevant current calendar year, a completed Absence Form in
respect of the desired holiday is to be handed to the Department Manager. The
employer maintains the right to request an alteration to holiday plans under
exceptional circumstances.
Public holidays which occur during the holidays do not count as vacation days.
CLAUSE 13 ALLOWABLE FREE DAYS WITH NO REDUCTION OF SALARY
Insofar as the following events take place on working days, the following free
days will be allowed with no salary reduction and without having to compensate
holiday:
a) Change of residence, as long as this does
not include a change of employment 1 day
b) Own wedding 3 days
c) Wedding of a family dependant 1 day
d) Childbirth 1 day
e) Death of partner, own child or parents 3 days
f) Death of family relative 1 day
g) Military call-up, Inspection (AVB 7) 1 day
h) Any other personal matter, including job- following discussion with
hunting following termination of employment Management & Personnel
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SALARY/BENEFITS
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CLAUSE 14 SALARY
The employer agrees to pay the employee a monthy salary of USD 7,077.00 payable
on the 26th of each month. Should this date occur on a weekend or public
holiday, salary will be paid out on the previous work day. The monthly salary
agreed upon is gross.
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CLAUSE 15 COST OF LIVING EQUALISATION
In principle the employer agrees to equalisation of the cost of living, however
still maintains the right to pay in part or not at all depending on ecomonic
situation.
CLAUSE 13 13TH SALARY
The employee receives a 13th monthly salary at the end of the year. Social
insurance is to be paid on the 13th salary. The 13th salary includes a MABS
component ranging between -25% and +25%.
Employees either beginning or leaving their employment during the year will be
compensated on a pro rata basis.
CLAUSE 17 CHILD BENEFIT
The employee receives a monthly child benefit for each child under the age of
17, or - if the child is still receiving an education, latest until attaining
the age of 26 years. The child benefit will be paid according to the regulations
governing Canton Luzern and may only be awarded to one gainfully employed person
per family.
CLAUSE 18 EXCEPTIONAL REIMBURSEMENTS (EXPENSES, LONG-SERVICE BONUS,
SHARES)
Expenses incurred by employees when carrying out a business brief, will be
effectively compensated. The expenditure must, however, be in keeping with the
function. In the interests of the company frugality should be taken into
consideration during planning stages.
Further has been agreed a monthly compensation of USD 1,500.00 for
representation costs.
Supplementary the Company places a car (upper middle class) at the employee's
disposal.
Detailled conditions are contained in Chapter 5 of the Personnel Regulations,
under the heading "Expenses".
CLAUSE 19 OCCUPATIONAL AND NON-OCCUPATIONAL ACCIDENT INSURANCE
(BU/NBU)
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The employee is insured by the company through SUVA for occupational and
non-occupational accident. The premium for occupational accident is paid by the
company.
The non-occupational insurance is deducted from the employee's salary.
The accident insurance is valid from the beginning of the first working day
according to the contract and covers the costs of general, non-private, medical
care. It remains the choice of the employee to insure him/herself for
half-private or private care.
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CONTINUED PAYMENT OF SALARY IN CASE OF HINDERANCE
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CLAUSE 20 ILLNESS, ACCIDENT
In case of illness the employee maintains the following rights:
100% salary for 3 months.
Should the employee still be unable to resume his/her post, 80% of the salary
will be paid monthly until such time as he/she is able to return, or for a
maximum of 24 months. Miscellaneous benefits will be settled by the Swiss
invalid insurance. The premium for the sickness benefit insurance is to be paid
by the employee. The employer carries the full risk for the first 30 days and
part-risk until 90 days.
Salary payment in case of accident:
Salary payment, as well as subsequent continuance of 80%, as for illness.
Miscellaneous benefits will be settled by the Swiss invalid insurance, SUVA
and/or the military insurance.
Pregnancy and childbirth:
Maternity leave and benefits are awarded according to the regulations set down
in the Code of Obligations.
ARTICLE 21 MILITARY SERVICE
The obligatory Swiss military service maintains equal status:
a) Civil protection
b) Fire Brigade
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Upcoming service duties (type and duration) are to be reported to the Department
Manager.
In cases of obligatory service duties, as above, employees have the right to
expect following salary payments:
- WK, KVK 100% for a maximum of 3 months
- Military recruitment, inspection 100% for 1 day
- RS no compensation
- Transportation service individual
Immediately the service period is completed, the Military Allowance Form is to
be handed to the Personnel Department. Should the service period be longer than
20 days, the MAF should be handed in after each calculation period.
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PENSION/PROVISION
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CLAUSE 22 PERSONAL PROVISION
It is obligatory that all insurable employees be included into the Pension Fund.
The Swissray Group is affiliated to the Rentenanstalt Pension Fund. The
regulations thereof are an integrated part of this Contract of Employment.
CLAUSE 23 COMPENSATION IN CASE OF DEATH
Should the duration of employment end in the death of the employee, and the
deceased had either marriage partner or under-age children, the employer will
make a single capital payment. The amount of the sum in question will correspond
to the total of the gross monthly salary and the applicable notice period.
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CONCLUDING REGULATIONS
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CLAUSE 24 LEGAL FUNDAMENTALS
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Should no other special conditions for the employee be agreed upon, the
regulations set down in the Code of Obligations (Contract of Employment Rights)
and the Laws governing Employment, as well as further appropriate confederate
and canton statutes will be considered applicable.
CLAUSE 25 GENERAL TERMS AND CONDITIONS
Complete and detailled Terms and Conditions relating to the abovementioned
Clauses are contained in the Swissray Group Personnel Regulations, a copy of
which will be handed out together with this Contract of Employment.
This contract is established under Swiss Law.
Each party is to receive a copy of this Contract.
Employer Employee
SR Management AG
/J. Laupper/ /X. Xxxxxxxxx/ /Ueli Laupper/
Signed at Hitzkirch Signed at Hitzkirch
on 12-18-1997 on 12-18-1997
Swissray International, Inc.
/Xxxxx X. Xxxxxxx/
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