Compensation

Remuneration of the directors

The Annual General Meeting (April 15, 2010) resolved that the remuneration payable to the Chairman of the Board of Directors be EUR 4,000 per month and to other Board members EUR 3,000 per month. In addition, reasonable travelling expenses for the meetings shall be compensated.

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The total remuneration of Biotie’s Directors in 2009 is represented in the following table.

Board member	Board	Audit Committee	Nomination & Remuneration Committee	Total remuneration received 2009
Juha Jouhki	36,000	-	-	36,000
Peter Fellner (member since 29 October 2009)	6,000	-	-	6,000
Ann Hanham	36,000	-	-	36,000
Bernd Kastler	36,000	-	-	36,000
Kris Krishnan (member until 29 May 2009)	15,000	-	-	15,000
Pauli Marttila	18,000	-	-	18,000
Riku Rautsola	36,000	-	-	36,000
Christoph Schröder	36,000	-	-	36,000
Piet Serrure	36,000	-	-	36,000
Total	255,000	-	-	255,000

Remuneration of the Managing Director and management team

Function	Fixed basic salary	Performance based bonus	Fringe benefits	Share based payments	Options exercised	Total option rights allocated	Average share price (weighted average)	2009 total
Managing Director	187,887	40,000	15,336	-	-	2,834,000	0.42	243,223
Management team except Managing Director	597,017	-	15,900	-	-	4,347,580	0.42	612,917
2009 total	784,904	40,000	31,236	-	-	7,181,980	0.42	856,140

The remuneration of the Managing Director and the management team in 2009 is represented in the following table.

Function
Fixed basic
salary
Performance
based bonus
Fringe
benefits
Share
based
payments
Options
exercised
Total option
rights
allocated
Average
share price
(weighted
average)
2009 total
Managing Director
187,887
40,000
15,336
-
-
2,834,000
0.42
243,223
Management team except Managing
Director
597,017
-
15,900
-
-
4,347,580
0.42
612,917
2009 total
784,904
40,000
31,236
-
-
7,181,980
0.42
856,140

The Board of Directors assesses annually the need for bonus payments to the Managing Director and to the members of the management team. The eventual bonuses are discretionary and the payments are subject to achieving the operational goals set by the Board of Directors. In general, the amount of bonus corresponds approximately the salary of 1–2 months.

Since Biotie’s Managing Director’s retirement age has not been determined, the Company is not committed to any lowered retirement age.

The Company has committed, as a part of the terms of employment of the Managing Director and certain members of the management team, to make certain contributions to a voluntary retirement insurance policy. In 2009, the related cost was approximately EUR 44,630 in relation to the Managing Director and EUR 26,720 in relation to the management team members.

The Managing Director contract may be terminated by the Company with a six month notice period and by the Managing Director with a three month notice period. If the Company terminates the contract with the Managing Director, the Managing Director is, in addition to his salary during the notice period , entitled to a severance pay corresponding to 12 months of salary.

Bonus and incentive schemes

In 2009, the Board of Directors allocated 2,000,000 option rights to the Managing Director and 4,000,000 to other management team members. Out of the option rights that have been allocated, the rights to subscribe shares with 1,500,000 of these options are conditional to achieving certain set targets by the Board of Directors.

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Updated June, 2010