Document:

Prepared by MerrillDirect

EMPLOYMENT
AGREEMENT

FOR

WILLIAM L. SYDNES

             This AGREEMENT, effective as of
June 27, 2001 is made by and between MICROVISION, INC., a corporation of the
State of Washington, having its principal place of business at 11910 North Creek Parkway,  P.O. Box 3008,  Bothell,
Washington 98011, (hereinafter referred to as the
"Company"), and William L. Sydnes (herein­after called
"Executive").

W I T N E S S E T H:

             WHEREAS, the Company wishes to
retain the services of the Executive to work for the Company as its Chief
Operating Officer (herein referred to as the "Position") upon the
terms and conditions herein­after set forth; and

             WHEREAS, in consideration for
continued service in the Position, the Executive has agreed to enter into and
be bound by the terms of this Agreement.

             NOW THEREFORE, in consideration of
the foregoing and mutual covenants herein contained, the parties agree as
follows:

1.          EMPLOYMENT

	 	1.1	The Company hereby employs Executive to serve
  in the Position and Executive hereby accepts such employment as of the
  effective date of this Agreement.
	 	 	 
	 	1.2	Executive will devote his best efforts and
  full time and attention to performing all duties assigned or delegated to him
  by the Board of Directors of the Company consistent with the Position.
	 	 	 
	 	1.3	The term of employment shall end on June 30,
  2005, unless this Agreement is extended by the parties.

2.          COMPENSATION - SALARY AND BENEFITS  

	 	2.1	For his services hereunder for the period June
  27, 2001 through December 31, 2002, Executive shall receive an annual salary
  of $215,000, payable in regular installments under the payroll policies of
  the Company.
	 	 	 
	 	2.2	For years beginning after December 31, 2002,
  the level of Executive's salary shall be reviewed by the Board of Directors
  on an annual basis and upon such review, may remain the same or be increased
  in such amount as the Board of Directors, in its discretion, based upon
  merit, determines, provided that there shall be no decrease in the salary of
  the Executive without his consent.

 

	 	2.3	In addition to the salary to which Executive
  is entitled under Section 2.1, 
  Executive shall be entitled to participate in benefit plans, if any,
  that the Company may offer or establish from time to time for Executives of equal
  or lesser rank.  Participation in benefit
  plans for the Executive shall terminate if the Company terminates similar
  benefits for Executives of equal or lessor rank.
	 	 	 
	 	2.4	If at any time the Company does not maintain
  medical and dental insurance coverage for all Executives, the Company shall
  reimburse the Executive for securing private coverage during the term of this
  Agreement.
	 	 	 
	 	2.5	All salary and benefits, if any, shall be
  subject to the customary withholding of taxes as required by law. Except as
  otherwise provided in Section 8 hereof, Executive’s salary and benefits end
  immediately upon the termination of employment.

3.          INCENTIVE COMPENSATION

	 	3.1	If the Company maintains a formal cash
  incentive plan for senior management, the Executive shall be eligible to
  participate in such plan with a target incentive opportunity at least equal
  to the highest percentage opportunity provided to any other Executive covered
  under such plan.
	 	 	 
	 	3.2	If such a formal plan is not maintained by the
  Company, the Executive shall be eligible for consideration to receive an
  annual cash incentive payment from the Company. Executive’s eligibility for
  such a discretionary incentive payment ends upon termination of employment.
  This amount shall be determined annually in the sole and complete discretion
  of the Board of Directors, which may take into account in its decision, among
  other items, such items as:
	 	 	 
	 	 	3.2.1	The financial performance of the Company,
  including, but not limited to revenues, operating income, and net income, if
  any;
	 	 	 	 
	 	 	3.2.2	The individual accomplishments of the
  Executive;
	 	 	 	 
	 	 	3.2.3	Other company achievements, including, but not
  limited to, product research, development and introduction; market offerings
  and the arrangement of strategic alliances; and
	 	 	 	 
	 	 	3.2.4	Competitive practice for executives in similar
  situations.
	 	 	 	 
	 	3.3	The annual target cash incentive for the
  period beginning on the effective date of this Agreement and ending on
  December 31, 2002 shall be 50% of the Executive’s annual salary, prorated for
  the period from the effective date through December 31, 2001.

 

4.          STOCK OPTIONS

	 	The Executive shall receive options to
  purchase common stock of the Company in the amounts set forth below.  All such options shall be granted in
  accordance with the stock option plan maintained by the Company and shall be
  subject to the terms and conditions set forth therein and in the stock option
  grant letter issued by the Company to Executive thereunder.  If there are insufficient shares available
  under the stock option plan in existence at the time of this Agreement, such
  shares shall be granted subject to the approval of shareholders at the next
  annual meeting subsequent to the execution of this Agreement. The options
  shall be exercisable for ten years from the date of grant and shall vest in
  installments as noted below.
	 	 
	 	4.1	An
  option to purchase up to 50,000 shares at a price of $20.00.  This option shall vest in three
  installments as follows: 25,000 shares on December 31, 2001; 12,500 on March
  31, 2002 and 12,500 on June 30, 2002.	 
	 	 	 	 
	 	4.2	An
  option to purchase up to 50,000 shares at a price of $27.00.  This option shall vest in four equal
  quarterly installments commencing July 1, 2002.	 
	 	 	 	 
	 	4.3	An
  option to purchase up to 100,000 shares at a price of $34.00.  This option shall vest in eight equal
  quarterly installments commencing July 1, 2003.	 

5.          BUSINESS EXPENSES

	 	5.1	The parties acknowledge that Executive may
  incur, from time to time, for the benefit of the Company and in furtherance
  of the Company’s business, various expenses such as travel, entertainment and
  promotional expenses.  The Company
  agrees that it shall either pay such expenses directly, advance sums to
  Executive to be used for payment of such expenses, or reimburse Executive for
  such expenses incurred by him.
	 	 	 
	 	5.2	The Company agrees to pay such expenses, in
  accordance with its written policies covering the payment of business
  expenses and to the extent that these expenses do not exceed limits contained
  in such policies or applicable law. Executive agrees to submit to the Company
  such documentation as may be necessary to substantiate that all expenses paid
  or reimbursed pursuant to this Section 5 were reasonable and necessary for
  the performance of his duties under this Agreement.

6.          PERFORMANCE OF EMPLOYMENT

	 	6.1	Executive will observe and comply with such
  reasonable rules, regulations and policies as may from time to time be
  established by the Company, the Chief Executive Officer or the Board of
  Directors, either orally or in writing.
	 	 	 
	 	6.2	Executive specifically agrees that he will
  comply with the confidentiality and security rules established by the Company
  and the Board of Directors with respect to confidential and financial
  information of the Company.

 

7.          EMPLOYMENT CONDUCT AND CONFIDENTIAL INFORMATION

	 	7.1	Executive shall, at all times during the term
  of this Agreement, observe and conform to all laws regulating the business of
  the Company.
	 	 	 
	 	7.2	Executive acknowledges and recognizes that
  during the term of this Agreement, he will necessarily become privy to
  certain confidential and proprietary information of the Company and customers
  of the Company (hereinafter referred to as "Confidential
  Data").  Confidential Data shall
  shall include but not be limited to all information concerning the identity
  of the Company’s customers and suppliers, technical, financial and business
  activities, plans, operations, proprietary software, systems, procedures or
  know-how of the Company and any infor­mation regarding customers of the
  Company and their business affairs or endeavors.  Executive agrees that he will hold all Confi­dential Data in
  the strictest confidence and that he will not disclose to any person or
  entity for any reason nor use any Confidential Data in any way other than on
  behalf of the Company or as the Company may otherwise direct.
	 	 	 
	 	7.3	Executive agrees that all business records and
  files, including but not limited to memoranda, notes, client lists, and
  proposals pertaining to the business, services or processes of the Company,
  shall be the sole property of the Company and he shall not retain, remove or
  copy such materials during the term of this Agreement or upon its termination
  or expiration, without the prior unanimous written consent of the Board of
  Directors of the Company.  Upon the
  termination of this Agreement, or at any other time upon the request of the
  Board of Directors of the Company, Executive shall deliver all such materials
  to the Company.
	 	 	 
	 	7.4	The foregoing obligations of Executive shall
  survive the termination or expiration of this Agreement.

8.          SEVERANCE PAYMENTS

	 	8.1	If the Executive terminates the Agreement for
  any reason other than Constructive Termination (as defined in Section 8.3.5),
  or if the Company terminates the Agreement for Cause, no severance payment of
  any kind shall be made.
	 	 	 
	 	8.2	If the Company terminates this Agreement for
  reasons other than Cause, or if the Executive is Constructively Terminated
  prior to a Change in Control, the Company shall:
	 	 	 
	 	 	8.2.1	Pay to the Executive a lump sum equal to the
  Executive’s salary of record for a period of one year, if the date of
  termination is prior to July 1, 2003, or for a period equal to the greater of
  one year or the remaining period of this Agreement, if the date of
  termination is subsequent to June 30, 2003.
	 	 	 	 
	 	 	8.2.2	Continue to provide medical and dental
  insurance to the Executive for the 
  period of one year, if the date of termination is prior to July 1,
  2003, or for a period equal to the greater of one year or the remaining period
  of this Agreement, if the date of termination is subsequent to June 30, 2003.
	 	 	 	 
	 	8.3	If the Executive is terminated or
  Constructively Terminated by the Company following a Change of Control, the
  Company shall:
	 	 	 
	 	 	8.3.1	Pay to the Executive a lump sum equal to the
  Executive’s salary of record for a period of three (3) years;
	 	 	 	 
	 	 	8.3.2	Pay to the Executive a lump sum equal to three
  (3) times the average of the Executive’s cash bonuses received in the three
  (3) preceding calendar years;
	 	 	 	 
	 	 	8.3.3	Continue to provide medical and dental
  insurance to the Executive for a period of one (1) year on the same terms as
  if the Executive were an active Executive of the Company.
	 	 	 	 
	 	 	8.3.4	For
  purposes of this Agreement, a Change of Control shall be deemed to occur on
  any of the following events:
	 	 	 	 
	 	 	 	8.3.4.1	Any
  “person”, including a “group” as determined in accordance with Section
  13(d)(3) of the Securities Exchange Act of 1934, as amended, is, or becomes,
  the beneficial owner of securities of the Company representing more than
  thirty percent (30%) of the combined voting power of the Company’s then
  outstanding securities;
	 	 	 	 	 
	 	 	 	8.3.4.2	As
  a result of, or in connection with, any tender offer or exchange offer,
  merger or other business combination, sale of assets or contested election,
  or any combination of the foregoing transactions (a “Transaction”), the
  persons who constituted the Board of 
  Directors the Company prior to the Transaction cease to constitute a
  majority of the Board of Directors of the Company or any successor to the
  Company;
	 	 	 	 	 
	 	 	 	8.3.4.3	The
  Company is merged or consolidated with another Company and as a result of the
  merger or consolidation, less than fifty percent (50%) of the outstanding
  voting securities of the surviving or resulting Company shall then be owned
  in the aggregate by the former stockholders of the Company;
	 	 	 	8.3.4.4	A
  tender offer or exchange offer is made and consummated for the ownership of
  securities of the Company representing more than thirty percent (30%) of the
  combined voting power of the Company’s then outstanding voting securities; or
	 	 	 	 	 
	 	 	 	8.3.4.5	The Company transfers substantially all of its
  assets to another Company of which the Company owns less than fifty percent
  (50%) of the outstanding voting securities.
	 	 	 	 	 
	 	 	8.3.5	For purposes of this Agreement, Constructive
  Termination means:
	 	 	 	 
	 	 	 	8.3.5.1	The reduction of the Executive’s salary or
  target incentive;
	 	 	 	 	 
	 	 	 	8.3.5.2	The demotion or reduction in duties of the
  Executive;
	 	 	 	 	 
	 	 	 	8.3.5.3	The relocation of the Executive’s place of
  employment more than 50 miles from the existing place of employment; or
	 	 	 	 	 
	 	 	 	8.3.5.4	Breach by the Company or its successor of any
  material provision of this Agreement.
	 	 	 	 	 
	 	8.4	For purposes of this Agreement, “Cause” shall
  be defined as any of the following:
	 	 	 
	 	 	8.4.1	Repeated failure or refusal of the Executive
  to carry out the reasonable directions of the Board of Directors of the
  Company consistent with the duties and obligations of the Executive;
	 	 	 	 
	 	 	8.4.2	Willful violation of state or federal law
  involving the commission of a crime against the Company or a felony adversely
  affecting the Company; or
	 	 	 	 
	 	 	8.4.3	Any material breach of this Agreement or of
  any covenant herein or the falsification of any material representation or
  warranty not corrected as provided in Section 8.5 hereof.
	 	 	 	 
	 	8.5	If
  a breach of this Agreement by either party is relied upon as a justification
  for any action taken by a party pursuant to any provision of this Agreement,
  before such action is taken, the party asserting the breach shall give the
  other party written notice of the existence and nature of the breach and the
  opportunity to correct such breach during the thirty (30) day period
  following the delivery of such notice.
								

9.
         RESTRICTIVE COVENANT AND INJUNCTIVE
RELIEF. During the term of this agreement and for a period of
twenty-four (24) months after the termination of this Agreement for any reason:

	 	9.1	Executive shall not, directly or indirectly,
  as an individual or representative of any other person and/or entity, deal
  with or solicit for business purposes that are in competition with any
  product or service offered by the Company, any current customer of the
  Company or any person and/or entity that is, or has commenced negotiations to
  become, a customer of the Company.
	 	 	 
	 	9.2	Executive shall not, directly or indirectly,
  solicit, raid, entice, or induce any other Executive of the Company to become
  employed by or associated with any other person or entity.

 

	 	9.3	Executive shall not, directly or indirectly,
  as an Executive, consultant, agent, partner, principal, stockholder (other
  than as a holder of less than one percent (1%) of the shares of a publicly or
  privately held company), officer, director, or in any other individual or
  representative capacity, engage in any business activity that is competitive
  with any products or services offered by the Company at the time of the
  Executive’s termination.
	 	 	 
	 	9.4	The parties hereto acknowledge that the
  Executive's services, knowledge and experience are unique and of special
  value to the Company, and that, in the event of a breach or threatened breach
  by Executive of any of his obligations under this Agreement, including but
  not limited to those set forth in this Section 9, the Company will not have
  an adequate remedy at law. 
  Accordingly, in the event of any breach or threatened breach of any
  provision of this Agreement by Executive, the Company shall be entitled to
  such equitable and injunctive relief as may be available to restrain
  Executive and any other individual or entity participating in breach or
  threatened breach, from violating the provisions of this Agreement.  Nothing herein shall be construed as
  prohibiting the Company from pursuing any other remedies available at law for
  such breach or threatened breach, including the recovery of damages and the
  immediate termination of Executive's employment hereunder.

10.        INVENTIONS,
CREATIONS AND DISCOVERIES

	 	10.1	Executive acknowl­edges that during the course
  of his employment he may, either alone or in conjunction with others, be
  involved with the creation, authorship or development of inventions,
  materials or property, including but not limited to the field of laser or
  LED-based scanning display technologies, computer software, computer software
  and hardware applications (hereinafter referred to as
  "Materials").  Executive
  agrees that he will disclose all such Materials to the Board of Directors of
  the Company.  Executive acknowledges
  that all such Materials shall be the property of the Company whether or not
  patent or copyright applications are filed with respect thereto from the date
  of their conception.  If an assignment
  is necessary to transfer ownership thereof to the Company, Executive agrees
  that this Agreement, without more, 
  shall constitute such an assignment. 
  At the Company’s request, Executive shall be required to make or
  assist in the filing of letters of patent, copyright applications or the like
  with respect to such Materials.  In
  connection therewith, Executive agrees to execute all documents necessary or
  beneficial to establish or maintain the Company’s rights in such property,
  applications or the like. All such filings shall be made, if possible, in the
  name of the Company, at its expense. If made during the term of his
  employment, Executive shall receive no additional compensation therefor.  If such filings are required after the
  termination of the Executive's employment by the Company, he shall receive
  reasonable compensation for his assistance.
	 	 	 
	 	10.2	Pursuant to RCW 49.44.140, the Company has no
  rights under Section 10.1 of this Agreement to any invention for which no
  equipment, supplies, facilities, or trade secret information of the Company
  was used and which was developed entirely on Executive’s own time, unless:
  (a) the invention relates (i) directly to the business of the Company or (ii)
  to the Company’s actual or demonstratably anticipated research or
  development; or (b) the invention results from any work performed by
  Executive for the Company.

 

	 	10.3	The obligations of Executive under Section
  10.1 shall survive the termination or expiration of this Agreement.	 
	 	 	 	 
	11.	ASSIGNMENT.  The rights of either party shall not be
  assigned or transferred without the other party’s consent, nor shall the
  duties of either party be delegated in whole or in part without the other
  party’s consent.  Any unauthorized
  assignment, transfer or other delegation shall be of no force or effect.
	 	 
	12.	AMENDMENTS.  No amendments or additions to this
  Agreement shall be binding unless in writing and signed by both parties.
	 	 	 
	13.	GOVERNING LAW.  This Agreement shall be governed in all
  respects by the laws of the State of Washington.
	 	 	 
	14.	BINDING ARBITRATION.
  Any disagreement, dispute, controversy or claim arising out of or in any way
  related to this Agreement, the subject matter hereof or the interpretation
  hereof or any arrangements relating hereto or contemplated herein or the
  breach, termination or invalidity hereof or the provision or failure to
  provide for any other benefits pursuant to any other bonus or compensation
  plans, stock option plan,  life
  insurance or benefit plan or similar plan or agreement with the Company shall
  be settled exclusively and finally by binding arbitration.  If this Section 14 conflicts with any
  provision in any such plan or agreement, this provision requiring arbitration
  shall control.
	 	 	 
	 	14.1	The arbitration shall be conducted through
  Judicial Arbitration and Mediation Services/Endispute (henceforth referred to
  as “JAMS”) to be held before such arbitrator as the parties may agree, or if
  they are unable to agree, to be selected by obtaining five proposed
  arbitrators from JAMS and alternately striking names until one name remains.
	 	 	 
	 	14.2	The arbitration shall be conducted in accordance
  with the Judicial Arbitration and Mediation Services Rules of Practice and
  Procedure as are then in effect, except as modified by the agreement of the
  parties.
	 	 	 
	 	14.3	Either party may initiate a claim by
  contacting JAMS.
	 	 	 
	 	14.4	The decision of the arbitrator shall be final
  and binding on all parties and the parties waive their right to trial de novo
  or appeal, except and only for the purpose of enforcing the decision of the
  arbitrator, for which purpose the parties hereby agree that the Superior
  Court of King Country Washington shall have jurisdiction.
	 	 	 
	 	14.5	The prevailing party shall be entitled to
  recover reasonable attorneys’ fees and the costs of bringing or defending the
  arbitration and any action for enforcement, the amount of the awards being
  determined by the arbitrator.
						

 

	15.	PARAGRAPH HEADINGS.  The paragraph headings used in this
  Agreement are included solely for convenience and shall not affect or be used
  in connection with the interpretation of this Agreement.
	 	 
	16.	WAIVER, MODIFICATION, CANCELLATION.  Any waiver, altera­tion or modification of
  any of the provisions of this Agreement or cancellation or replacement of
  this Agreement shall not be valid unless in writing and signed by all of the
  parties hereto.
	 	 
	17.	HEIRS AND SUCCESSORS.  This Agreement shall be binding upon the
  Company, Executive and their successors, heirs, personal representatives and
  transferees.
	 	 
	18.	WAIVER.  The waiver by either party of a breach of
  any provision contained herein must be in writing and shall in no way be
  construed as a waiver of any succeeding breach of such provision or the
  waiver of the provision itself.
	 	 
	19.	NOTICE.  Whenever under the provisions of this
  Agreement notice is required to be given, it shall be in writing and shall be
  deemed given when hand delivered or mailed, postage prepaid by registered or
  certified mail, return receipt requested, addressed to the  Executive or the Company at the following
  addresses:

 

	 	Executive:	William L. Sydnes
	 	 	c/o Microvision, Inc.
	 	 	19910 North Creek Parkway
	 	 	Bothell, WA 
  98011
	 	 	 
	 	Company:	Microvision, Inc.
	 	 	19910 North Creek Parkway
	 	 	Bothell, WA 
  98011
	 	 	Attn: Secretary

 

	 	Either party hereto may change his or its
  address for purposes of this Agreement by notifica­tion to the other party in
  accordance with this Section.
	 	 
	20.	SEVERABILITY.  If any provision of this Agreement is held
  invalid, illegal or unenforceable, the validity, legality and enforceability
  of the remaining provisions will not in any way be affected or impaired
  thereby.
	 	 
	21.	ENTIRE AGREEMENT.  This Agreement contains the entire
  agreement of the parties regarding the subject matter hereof and supersedes
  all prior agreements, understandings and negotiations regarding the same.

 

             IN WITNESS WHEREOF, the parties
have executed this Agreement as of the date first above written.

MICROVISION,
INC.

	by	 	 	 
	 	/s/ RICK RUTKOWSKI	 	/s/ RICHARD RAISIG
	

	 	

	 	 	 	Witness
	 	 	 	 
	EXECUTIVE	 	 
	 	 	 	 
	 	/s/ WILLIAM L. SYDNES	 	/s/ MARIA J. MATTSON
	

	 	

	 	 	 	WitnessPrepared by MerrillDirect

Exhibit 10.1

EMPLOYMENT AGREEMENT

             This AGREEMENT is made this 24th
day of June, 1998, by and between VYSIS, INC., a corporation formed and
existing under the laws of the State of Delaware, with its principal place of
business at 3100 Woodcreek Drive, Downers Grove, IL 60515 (hereinafter referred
to as the "Employer"), and PAUL STEUPERAERT, an individual residing
at Les Regourdes, Le Faget, F-31460, Caraman, France (hereinafter referred to
as the "Employee").

RECITALS

             WHEREAS, Employer wishes to employ
Employee as the executive in charge of Employer's European operations; and

             WHEREAS, Employee has obtained a
termination of his employment agreement with PILLING CO., effective as of
August 31, 1998, and wishes to accept employment with Employer on the terms herein

             NOW, THEREFORE, the parties hereto
agree as follows:

             1.          Employment.     The Employer agrees to employ the
Employee as an executive. Employee agrees to accept employment as an executive
and to serve as the Employer's President European Operations, an elected
officer position, and to serve as a Director of each of the Employer's
wholly-owned subsidiaries:  Vysis (UK)
Ltd., Vysis GmbH and Vysis SARL.

             2.          Duties.

                           2.1        The Employee agrees that his powers and
duties shall be determined pursuant to the guidelines of this agreement by the
Employer's President and Chief Executive Officer. Employee further agrees that
he shall serve as an officer of the Employer and as director and officer of any
of its subsidiaries and affiliates and shall perform duties customarily
incident to such offices and all other duties the President and Chief Executive
Officer may periodically assign to him.

 

                           2.2        The Employee agrees to devote his best
efforts and his entire time, skill, attention and energies to the performance of
his duties under this Agreement, and shall not, during the term of this
Agreement, engage in any other business activity, regardless of whether such
activity is pursued for gain or profit. Notwithstanding the foregoing, Employer
is aware that Employee serves as a member (non-remunerated) of the Board of
Directors of the companies Huck-Occitania s.a., Occitania Services s.a., Groupe
Occitania and SCI Les Regourdes, S.C.I. La Poussaraque, Igrec s.a., Archibald
s.a., Pōle Sud s.a., Monark n.v. and does not object to Employee serving
in said capacity with said companies. The Employee, however, may invest his
assets in other companies so long as they do not require the Employee's
services in the operation of their affairs.

             3.          Term.     The term of this Agreement shall commence
on September 1, 1998, and shall terminate on August 31, 2003, unless terminated
earlier pursuant to Sections 14 & 15 hereof. This Agreement may be
automatically extended for an additional twelve (12) months upon Employer
giving Employee twelve (12) months written notice prior to August 31, 2003,
unless within three (3) months after such notice Employee provides written
notice to Employer that Employee does not agree to have an additional
twelve (12) month period added to the remaining term of this Agreement.

 

             4.          Base
Salary.

                           4.1        For all services rendered by the
Employee under this Agreement, the Employer shall pay to the Employee an annual
base salary which shall be at least equal to One Million Two Hundred Thousand
French Francs (1,200,000 FF).

                           4.2        If the Employee dies during the term of
his employment, the Employer shall pay to the estate of the Employee any
compensation which would otherwise be payable to the Employee under this
Agreement up to the end of the month in which his death occurs, such
compensation to be payable at such times as it would have been paid had the
Employee not died.

                           4.3        On each yearly anniversary date of this
Agreement, the annual base salary of the Employee shall be reviewed by the
Employer's President and Chief Executive Officer to determine what increase, if
any, in the Employee's annual salary should be made for the succeeding twelve
(12) months. The Employer's President and Chief Executive Officer will make
recommendations to the Employer's Board of Directors in this regard; provided,
however:  (i) that such recommendation
shall be non-binding, and the Board of Directors shall retain the sole,
exclusive, absolute and unfettered discretion to accept or reject the recommendations
and to set the Employee's salary for the succeeding twelve (12)-month period,
and (ii) that said salary shall not be reduced below the annual base salary the
Employee received for the preceeding twelve (12) months.

 

             5.          Stock
Incentive Plans.     The Employer
plans to seek approval from its Shareholders for establishing a 1998 Stock
Incentive Plan. Upon approval of the 1998 Plan, the Employer's President and
Chief Executive Officer will recommend to the Employer's Board of Directors
that Employee receive a stock option grant under the 1998 Plan in an amount
recommended by the President and Chief Executive Officer. The Employee's
participation in the 1998 Plan, if approved, and in any other incentive,
profit-sharing or bonus plan, stock option plan or pension plan of the Employer
shall be in such an amount and upon such terms and conditions which: (i) are
recommended by the Employer's President and Chief Executive Officer and (ii)
are approved by the Employer's Board of Directors in their absolute discretion.

             6.          Reimbursement
of Expenses.     Subject to
compliance with the Employer's Expense Reimbursement Policy and such conditions
as the President and Chief Executive Officer of the Employer may from time to
time determine, the Employer will reimburse the Employee, upon presentation of
vouchers or invoices, for reasonable expenses incurred by the Employee in the
performance of his duties in carrying out the terms of this Agreement,
including expenses for such items as travel and hotel.

             7.          Working
Facilities.     The Employer shall
furnish the Employee with such facilities and services that are suitable to his
position and adequate for the performance of his duties.

             8.          Location.     Initially, the Employee's primary place
of employment will be maintained at a location mutually agreeable to both
parties. However, the Employee's permanent primary place of employment will be
determined in a European Operations Strategic Study to be completed later in
1998. The Employer acknowledges that Employee may retain his principal
residence in Toulouse area and that Employee may commute, at his expense, from
Toulouse to his primary employment location.

 

             9.          Automobile.     The Employer recognizes the Employee's
need for an automobile for business purposes. It, therefore, shall provide the
Employee with an automobile including all related maintenance, repairs,
insurance and other costs, under the automobile lease program maintained by the
Employer's Vysis SARL subsidiary.

             10.        Disability.

                           10.1      For purposes of this Agreement,
"permanent disability" means the Employee's inability as a result of
illness, incapacity or disease to perform any of his duties as set forth
herein, with no reasonable expectation, in the judgment of the Employer's
President and Chief Executive Officer, based upon competent medical advice,
that the Employee will be able to resume the performance of his duties. If the
Employee becomes, and continues to be, permanently disabled, the Employer shall
continue to pay to the Employee the annual base salary he is then receiving and
the Employee shall continue to be eligible for all fringe benefit programs in
which he is then participating, for a period of six (6) months following the
commencement of such permanent disability. Thereafter, if such permanent
disability continues, this Agreement shall terminate.

 

                           10.2      The Employer shall provide the Employee
with long-term disability benefits, commencing no later than the expiration of
the six (6)-month period from the onset of the permanent and total disability
(as determined under Section 10.1) which, when added to any other
Employer-provided disability benefits payable to the Employee (from social
security, workmen's compensation or otherwise), shall be at least equal to
fifty percent (50%) of the Employee's then-existing annual base salary for the
duration of the disability. Notwithstanding the foregoing, the Employer's
obligation to provide benefits pursuant to this subparagraph shall be limited
to those benefits that can be purchased at a rate not greater than Five Dollars
per One Hundred Dollars of insurance coverage.

             11.        Participation
in Employer-Provided Employee Benefits.    
The Employee shall be entitled to receive benefits under the employee
benefit plans maintained for employees of Vysis SARL, including, but not by way
of limitation, short-term disability insurance, medical benefits, travel and
accident insurance, dental insurance, vision care and tuition reimbursement,
provided that Employee will not receive any grant under the Employer's 1996
Stock Incentive Plan. Nothing in this Agreement shall in any manner modify,
impair or offset the existing or future rights or interest of the Employee to
receive any employee benefits, including but not by way of limitation,
short-term disability insurance, medical benefits, travel and accident
insurance, dental insurance, vision care, tuition reimbursement, to which he
would otherwise be entitled.

 

             12.        Rights
of Employee under Change in control of Employer.

                           12.1      In the event of a change in control (as
hereinafter defined) of the Employer which results in a significant impact (as
hereinafter defined) on Employee, the Employee shall be entitled to the
following payments and benefits, which shall be paid to Employee within thirty
(30) days after the date of occurrence of the significant impact on Employee:

                                        (i)  All amounts then due and payable to the
Employee at the time of the change in control, whether for

                           accrued salary,
bonus, reimbursement of expenses or otherwise.

                                        (ii)  An amount equal to the greater of the
Employee's base salary for the remainder of the term of this

                           Agreement or
for a period of twelve (12) months.

                                        (iii)  Employer shall continue to furnish Employee
with all "fringe benefits" (including, but not limited to, life

                           and medical
insurance benefits for Employee and his or her dependents) received by Employee
prior to the change in

                           control for a
period of eighteen (18) months following the date of termination. In lieu of
any such benefits, Employer

                           may
periodically pay to Employee the reasonable cost to Employee of purchasing any
of such benefits from sources

                           other than
Employer, provided that if any of such benefits were not taxable to Employee
during the term of his or her

                           employment,
Employer shall also reimburse Employee for the federal income taxes payable on
the receipt of such

                           benefits or
cost thereof after the change in control. Employee's rights to such fringe
benefits or payments in

                           lieu thereof as
provided herein shall be reduced to the extent that comparable fringe benefits
shall be supplied

                           to Employee by
a subsequent employer.

                           12.2      Employee shall be entitled to all payments
under this Section 12 without obligation to seek or accept other employment or
in any other manner mitigating any damages which he may sustain as the result
of the change in control.

 

                           12.3      "Change in control" shall
include the following:

                                        (i)  the sale of substantially all of the
Employer's assets;

                                        (ii)  the sale, exchange or other disposition of
at least two-thirds (2/3) of the outstanding corporate shares of

                           the Employer;
or

                                        (iii)  the merger or consolidation of the Employer
in a transaction in which the Employer's shareholders

                           receive less
than fifty-one percent (51%) of the outstanding voting shares of the new or
continuing

                           corporation; or

                                        (iv)  the Employer decides to terminate its
business or liquidate its assets.

                           12.4      "Significant impact on Employee"
shall include the following:

                                        (i)  elimination of Employee's position, or

                                        (ii)  a material reduction in the scope or
responsibility of Employee's job responsibilities, or

                                        (iii)  a change in Employee's primary place of
employment.

             13.        Indemnification.

                           13.1      Third Party Actions.     If the Employee is made a party or is
threatened to be made a party to any threatened, pending or completed action or
proceeding, whether civil, criminal, administrative (other than an action by or
in the right of the Employer), by reason of the fact that the Employee is or
was an employee or agent of the Employer, or is or was serving at the request
of the Employer as a representative of another domestic or foreign corporation
for profit or not-for-profit, partnership, joint venture, trust or other
enterprise, the Employer shall indemnify the Employee against expenses
(including attorneys' fees), judgments, fines and amounts paid in settlement
actually and reasonably incurred by the Employee in connection with the action
or proceeding if the Employee acted in good faith and in a manner he reasonably
believed to be in, or not opposed to, the best interest of the Employer and,
with respect to any criminal proceeding, had no reasonable cause to believe his
conduct was unlawful; provided, however, the Employer shall indemnify Employee
in connection with any action or proceeding initiated by Employee only if such
action or proceeding was authorized by the Employer's Board of Directors. The
termination of any action or proceeding by judgment, order, settlement or
conviction or upon a plea of nolo contendere or its equivalent shall not of
itself create a presumption that the Employee did not act in good faith and in
a manner that he reasonably believed to be in, or not opposed to, the best
interest of the Employer and, with respect to any criminal proceeding, had
reasonable cause to believe that his conduct was unlawful.

 

                           13.2      Derivative Actions.     If the Employee is made a party, or is
threatened to be made a party, to any threatened, pending or completed action
by or in the right of the Employer to procure a judgment in its favor by reason
of the fact that the Employee is or was an employee or agent of the Employer or
is or was serving at the request of the Employer as a representative of another
domestic or foreign corporation for profit or not-for-profit, partnership,
joint venture, trust or other enterprise, the Employer shall indemnify the
Employee against expenses (including attorneys' fees) actually and reasonably
incurred by the Employee in connection with the defense or settlement of the
action if the Employee acted in good faith and in a manner he reasonably believed
to be in, or not opposed to, the best interests of the Employer.
Indemnification shall not be made under this Section in respect of any claim,
issue or matter as to which the Employee has been adjudged to be liable to the
Employer unless and only to the extent that the court in which the action was
brought, or any other court of competent jurisdiction determines upon
application that, despite the adjudication of liability, but in view of all the
circumstances of the case, the Employee is fairly and reasonably entitled to
indemnity for the expenses that such court deems proper.

 

             14.        Termination.

                           14.1      Nothing in this Agreement shall be
construed to prevent termination by the Employer of the Employee's employment
under this Agreement upon the occurrence of any of the following events:

                                        (i)  Any material breach by the Employee of any
of his obligations under this Agreement which is not cured

                           within thirty
(30) days after the Employee's receipt of written notification from the
Employer of such breach;

                                        (ii)  the inability of the Employee to perform his
usual duties under this Agreement because of permanent

                           disability as
defined in Section 10.1;

                                        (iii)  the conviction of the Employee for a felony
or the commission of a fraudulent act by the Employee

                           against the
Employer.

                           14.2      Employee, at his option, may terminate
this Agreement in the event of any material breach by the Employer of any of
its obligations owed to Employee under this Agreement. Employee's right to
terminate shall not become effective if the material breach by Employer or the
other parties is cured within thirty (30) days after receipt of written
notification of same from Employee.

 

             15.        Payment
Upon Early Termination of Agreement.    
In the case of termination of this Agreement by the Employer, for any
reason other than those set forth in Section 14.1, the Employer shall pay to
the Employee, notwithstanding any other provision of this Agreement, as
additional compensation an amount equal to twenty-four (24) months of the average
monthly salary received by the Employee during the last three (3) months
preceding the termination of the Agreement; said additional compensation shall
be in lieu of any other indemnification to which Employee may have been
otherwise entitled. Said additional compensation shall be reduced by applicable
withholding.

             16.        Restrictive
Covenant.     During the employment
term of this Agreement and during the first twelve (12) months of the period
during which the Employee receives the additional compensation provided for in
Section 15, Employee shall not be an officer, director, shareholder or Employee
of a corporation, nor the owner of any business, nor a member of a partnership,
which conducts any business in competition with the Employer. If Employee breaches
this provision, this Agreement shall immediately terminate, and in such event,
the Employee shall immediately forfeit all rights to any additional
compensation due him.

             17.        Assignment.     The Employee shall have no right to
exchange, convert, encumber or dispose of his rights to receive benefits and
payments under this Agreement, which payments, benefits and rights thereto are
non-assignable and non-transferable. In the event of any attempted assignment
or transfer, the Employee shall forfeit his rights to receive any payments or
benefits, and the Employer shall have no further liability under this
Agreement.

 

             18.        Entire
Agreement.     This Agreement
constitutes the entire understanding between the parties with respect to the
subject matter contained herein and supersedes any prior understandings and
agreements between them respecting such subject matter.

             19.        Headings.     The headings in this Agreement are for
convenience of reference only and shall not affect its interpretation.

             20.        Severability.
    If any provision of this Agreement
is held illegal, invalid or unenforceable, such illegality, invalidity or
unenforceability will not affect any other provision hereof. Such provision and
the remainder of this Agreement shall, in such circumstances, be deemed
modified to the extent necessary to render enforceable the remaining provisions
hereof.

             21.        Manner
of Giving Notice.

                           21.1      Whenever written notice, consent, demand
or other communication is required to be given to any person pursuant to the
terms of this Agreement, it may be given to the person either personally or by
sending a copy thereof by first class or express mail, postage prepaid, by
facsimile, or courier service, charges prepaid, to the address or telephone
numbers specified below. If the notice is sent by mail, facsimile or courier
service, it shall be deemed to have been given to the person entitled thereto
when deposited in the United States mail or courier service for delivery to
that person, or in the case of facsimile, when dispatched:

	If to the Employer, to:	Vysis, Inc.
	 	3100 Woodcreek Drive
	 	Downers Grove, IL 60515
	 	Phone: (630) 271-7070
	 	Facsimile: (630) 271-7078
	 	Attention: John L. Bishop, President & CEO
	 	 
	If to the Employee, to:	Paul Steuperaert
	 	Les Regourdes
	 	Le Faget
	 	F-31460
	 	FRANCE
	 	Phone: 9-011(33)(56)183-7989
	 	Facsimile: 9-011(33)(56)218-8396

 

                           21.2      Notice of any change in such address shall
also be given in the manner set forth above. Whenever the giving of notice is
required, the giving of such notice may be waived by the party entitled to
receive such notice.

             22.        Counterparts
and Multiples.     This Agreement
may be executed in counterparts, each of which, when executed and delivered,
shall be deemed an original, and all such counterparts, when taken together,
shall constitute but one and the same instrument.

             23.        Waivers
and Modifications.     No waiver
shall be deemed to be made by any party hereto or any of the rights of a party
hereto unless the same shall be in writing, and this Agreement shall not be
changed or modified in any respect, except in writing signed by the parties
hereof.

 

             24.        Waiver
of Breach.     Any waiver by either
party hereto of the breach of any of the terms of this Agreement by the other
party hereto shall not operate as or be construed as a waiver of any subsequent
breach.

             25.        Survival.     All representations, warranties,
covenants, conditions and agreements, whether expressed herein or as a part of
the recitals hereto or as part of the attachments hereto, of the parties hereto
contained in this Agreement shall survive execution of this Agreement.

             26.        Successors
and Assigns.     This Agreement
binds, inures to the benefit of, and is enforceable by the Employee and by the
Employer and its successors and assigns, and does not confer any rights on any
other persons or entities.

             27.        Governing
Law.     This Agreement shall be
governed by and enforced in accordance with the substantive and procedural law
of the State of Illinois. The parties consent and agree that all disputes arising
in connection with this Agreement shall be settled under the rules of
Arbitration of the International Chamber of Commerce by one or more arbitrators
appointed in accordance with said Rules. The arbitration shall take place in
Paris, France. Each party agrees that service upon it in any such action or
proceeding may be made by air mail, certified or registered, to its address as
set forth in this Agreement. Each party agrees to pay its own legal expense in
connection with any dispute.

 

             28.        Amendments.
    This Agreement may be amended and
supplemented only by a written instrument duly executed by both parties.

             IN WITNESS WHEREOF, intending to be
legally bound, the parties have executed this Agreement on the date first above
written.

	ATTEST:	VYSIS, INC. (EMPLOYER)
	 	 	 
	/s/ W.E. MURRAY	By: 	/s/ John L. Bishop
	

	 	

	Secretary	 	John L. Bishop, President & CEO
	 	 	 
	WITNESS:	EMPLOYEE:
	 	 
	/s/ [ILLEGIBLE]	By: 	/s/ Paul Steuperaert
	

	 	

	 	 	Paul Steuperaert

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