Document:

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                                                                   EXHIBIT 10.16

                              EMPLOYMENT AGREEMENT

      THIS AGREEMENT (the "Agreement") is made effective as of the 1st day of
August, 2003 by and between Vascular Sciences Corporation, a Delaware
corporation, with an office, located at 5280 Solar Drive, Mississauga, Ontario,
Canada L4W 5M8 (the "Company"), and Irving Siegel (the "Employee").

                              W I T N E S S E T H:

      WHEREAS, the Employee is currently under contract with the Company and
desires to obtain full time employment upon the terms and conditions set forth
herein;

      WHEREAS, the Company wishes to continue to employ the Employee upon such
terms and conditions; and

      WHEREAS, the Employee has received and will be given access by the Company
to its Trade Secrets, confidential business and professional information;

      NOW, THEREFORE, for the consideration given and received herein, and for
other good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, the Employee and the Company hereby agree as follows:

      1.    Recitals Incorporated. The foregoing recitals and any referenced
Exhibits are specifically incorporated in their entirety herein and made a part
hereof.

      2.    Definitions.

            "Bonus Criteria" has the meaning attributed thereto in Section 6(d)
hereof;

            "Change of Control" means the occurrence of a transaction or a
series of transactions as a result of which the Company becomes controlled by a
person or persons other than TLC Vision Corporation ("TLC"), Diamed
Medizintechnik GmbH ("Diamed") and any of their respective affiliates; for the
purpose of the foregoing, the Company is controlled by a person or persons other
than TLC and Diamed if TLC and Diamed, together, no longer own or exercise
voting control, directly or indirectly (including voting control given under a
shareholder's agreement or under a voting trust agreement that provides that
voting securities be voted as directed by an executive of TLC or Diamed or at
the direction of the Board of Directors of the Company if, at such time, the
majority of the Board of Directors of the Company consists of nominees of TLC
and Diamed), over securities carrying more than 50% of the voting rights, on a
fully- diluted basis, ordinarily exercisable at meetings of shareholders of the
Company, such rights being sufficient to elect a majority of the directors of
the Company;

            "Inventions" shall mean discoveries, concepts, innovations and
ideas, (regardless of whether they are ever awarded letters patent, trademark,
copyright or are ever determined to be eligible for the issuance of such
award(s), made developed or conceived by the Employee, whether solely or
jointly, which specifically relate(s) to the Company's Rheopheresis business,
including but not limited to confidential information

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and related devices, products, services, data, processes, methods, treatments,
therapies, materials, formulae, statistics, strategies and techniques, as well
as improvements thereof or know-how related thereto, concerning, related to,
based upon or arising from any past, present or known prospective activities of
the Related Companies or activities of the employee at the Related Companies and
anything else previously unknown (whether in whole or in part) which provides
the Related Companies with a competitive advantage;

            "Non-Competition Period" shall mean that period of time commencing
upon the date of execution of this Agreement by Employee and continuing during
his employment with the Related Companies, and for no less than one (1) year
following termination of his employment with the Company (regardless of the
circumstances of termination);

            "Related Companies" shall mean the Company, RHEO Clinic Inc. and
Occulogix L.P.;

            "Trade Secret" shall mean information, including a formula, a
pattern, compilation, program, device, method, treatment, therapy, material or
process that: (a) derives independent economic value, actual or potential, from
not being generally known to and not being readily ascertainable by proper means
by other persons who can obtain economic value from its disclosure or use; and
(b) is the subject of efforts that are reasonable under the circumstances to
maintain its secrecy.

      3.    Employment. The Company hereby employs the Employee, and the
Employee hereby accepts such employment, upon the terms and conditions stated
herein.

      4.    Term. The term of employment under this Agreement shall commence on
August 1, 2003 and shall continue indefinitely until terminated in accordance
with the provisions of termination as hereafter provided in this Agreement.

      5.    Duties. The Employee is engaged to serve as President of the
Company, and shall have such other duties as may from time to time be reasonably
assigned to him by the Board of Directors of the Company. During the term
hereof, the Employee shall devote the necessary time, energy and attention
required to fulfill his duties and responsibilities hereunder. Nothing herein
shall preclude the Employee from being involved directly or indirectly with any
other business or profession as long as his involvement in the opinion of the
Company in such other business or profession does not interfere or conflict with
the execution of his duties hereunder. The Company acknowledges that the
Employee, in connection with a consulting agreement dated January 8, 2003
between Quest Clinical Trials Inc. ("Quest"), Rheo Clinic, Inc. and the
Employee, as amended and restated as of August 1, 2003, will be performing
services for RHEO Clinic Inc. and Occulogix L.P. concurrently with the
performance of his duties hereunder.

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      6.    Compensation.

            (a)   The Company shall pay to the Employee as compensation for all
services rendered by the Employee hereunder an annual base salary of
CDN$150,000, subject to such deductions as may be agreed upon by the parties or
required by law. The Board of Directors of the Company, or the Compensation
Committee thereof, shall review the Employee's performance and base salary on an
annual basis and may provide for such increase, if any, in the base salary as it
may determine appropriate. This salary shall be paid in accordance with
Company's customary payroll procedure.

            (b)   The Company shall provide incentive compensation, stock
options and vacation to the Employee in accordance with its plans, policies and
procedures as may be in effect, which may be amended from time to time. The
Company warrants that all such incentive compensation, stock options and
vacation made available to the Employee shall be consistent with those offered
and made available to other employees at the same or similar level as that of
the Employee. The parties anticipate that one of such plans will be a stock
option plan providing for the grant to employees of options to purchase the
common stock of the Company, which plan the Company expects to implement before
December 31, 2003.

            (c)   The Company acknowledges that employee benefits are currently
provided to the Employee by Quest and the Company agrees to reimburse Quest for
the cost to Quest of providing such benefits. In the event that Quest no longer
provides benefits to the Employee, the Company agrees to provide the Employee
with employee benefits in accordance with its benefit plans, policies and
procedures as may be in effect, which may be amended from time to time. The
Company warrants that all such benefits made available to the Employee shall be
consistent with those offered and made available to other employees at the same
or similar level as that of the Employee. Notwithstanding the foregoing, in the
event that Employee cannot participate in one or more of such plans by reason of
the Employee's Canadian citizenship or residency, then the Company shall provide
a reasonably equivalent cash reimbursement to permit the Employee to obtain such
benefits on an individual basis, or on a group basis with other Canadian
employees of the Company, to the extent reasonably available.

            (d)   Subject to achieving objectives determined on an annual basis
by the Board of Directors of the Company (the "Bonus Criteria") (the first set
of Bonus Criteria being set out in Schedule A hereto), the Employee shall be
entitled to an annual bonus of up to a maximum of 100% of Employee's annual base
salary, which bonus shall be calculated based on the formula set out in the
Bonus Criteria.

            (e)   The Employee shall be reimbursed for all reasonable and usual
out-of-pocket expenses incurred as the result of any and all business-related
activities pursuant to this Agreement, all in accordance with a uniform policy
established by the Board of Directors of the Company from time to time;
provided, however, that reimbursement under this Section shall not be made until
and unless the Employee has furnished the Company with an appropriate receipt or
such other documents as may be

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reasonably required by the Company to substantiate the nature and amount of the
expenses incurred by the Employee.

      7.    Termination of Agreement.

            (a)   Termination For Cause. The Company may elect to impose
disciplinary sanctions, up to and including termination of this Agreement
without notice or payment in lieu of notice in the event:

                  (i)   The Employee is convicted of a criminal or statutory
      offence substantially related to or adversely affecting the Employee's
      ability to perform hereunder in a safe, competent and ethical manner,
      where such cause is not prohibited by law;

                  (ii)  Subject to applicable human rights legislation, the
      Company determines that the Employee has a substantial dependence on any
      addictive substance, including but not limited to, narcotic drugs or other
      controlled substances that is substantially related to or adversely
      affects the Employee's ability to perform hereunder in a safe, competent
      and ethical manner;

                  (iii) The Employee commits an act of fraud, or an unethical
      practice related to his obligations hereunder;

                  (iv)  The Employee commits an act damaging to the reputation
      in the community of any Related Companies;

                  (v)   The Employee presents, submits or prepares fraudulent or
      false claims, documents and/or records, including employment records and
      employment information;

                  (vi)  The Employee willfully fails or refuses to comply with
      all policies, procedures, standards and regulations of any Related Company
      that are established from time to time, or willfully fails or refuses to
      substantially perform or observe all other covenants and conditions which
      are required to be performed and observed by the Employee under this
      Agreement.

            (b)   Termination Without Cause. The Employee or the Company may
voluntarily elect to terminate this Agreement without cause by delivering to the
other party, at least sixty (60) days prior to the date upon which termination
is desired, written notice of such intention to terminate; provided, however,
that, if either party gives notice pursuant to this Section 7(b), the Company
shall have the right to relieve the Employee, in whole or in part, of his duties
under this Agreement (without reduction in compensation), with compensation to
the Employee payable to the date of termination.

            (c)   Payment Upon Termination. If the employment of the Employee is
terminated by the Employee or by the Company pursuant to the provisions of
Section 7(a), then the Company shall pay to the Employee any compensation earned
but not paid to the Employee prior to the effective date of such termination and
shall not

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be required to make any further or other payment to the Employee, except only to
the extent required by applicable employment standards legislation. If the
employment of the Employee is terminated by the Company pursuant to the
provisions of Section 7(b), then the Company shall pay to the Employee:

                  (i)   any compensation earned but not paid to the Employee
      prior to the effective date of such termination;

                  (ii)  severance pay equal to:

                        (A)   24 months' salary hereunder, if such termination
            occurs prior to August 1, 2005 and no Change of Control has occurred
            within six months preceding the date of termination;

                        (B)   30 months' salary hereunder, if such termination
            occurs prior to August 1, 2005 and a Change of Control has occurred
            within six months preceding the date of termination;

                        (C)   36 months' salary hereunder, if such termination
            occurs after July 31, 2005 but before August 1, 2008; and

                        (D)   48 months' salary hereunder, if such termination
            occurs after July 31, 2008;

                        in each case, payable in either equal monthly
      installments or in a lump sum payment at the discretion of the employee;

                  (iii) an amount representing the pro-rated portion, to the
      date of termination, of the total bonus that would otherwise be payable to
      the Employee based on an extrapolation of the Employee's performance to
      the date of termination with respect to the performance measurements
      identified in the Bonus Criteria over the entire measurement period
      contemplated in the Bonus Criteria.

            In either event, such payment(s) shall be in full and complete
discharge of any and all liabilities or obligations of the Company to the
Employee hereunder, and the Employee shall be entitled to no further benefits
under this Agreement. Any amounts owing to the Employee under any retirement
plans or other compensation arrangements, if any, with the Company shall be
handled solely in accordance with the terms of such plans or arrangements and
not by the terms of this Agreement.

            (d)   Adjustment to Payment Upon Termination. If pursuant to Section
6(a) hereof, the Employee's base salary is increased, the Board of Directors of
the Company, or the Compensation Committee thereof, may, in their complete
discretion, reduce the number of months' salary payable pursuant to Section
7(c)(ii), provided, however, that at no time shall the amount of severance pay
payable pursuant to Section 7(c)(ii) be less than the amount of severance that
would have been payable based on an annual base salary of CDN$150,000.

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      8.    Interests of the Company. The Employee acknowledges and agrees that:

            (a)   The Related Companies have, own or possess the right to
certain legitimate business interests, Trade Secrets, professional information
and confidential information; and

            (b)   The Related Companies' possession, ownership and use of such
legitimate business interests, Trade Secrets, professional and confidential
information derives actual or potential independent economic value from not
being generally known to, and not being readily ascertainable by proper means by
other persons who could potentially obtain economic value from its disclosure or
use; and

            (c)   The Related Companies have taken and will continue to
undertake substantial efforts that are commercially reasonable under the
circumstances to maintain the secrecy of its present and future legitimate
business interests, Trade Secrets and other professional and confidential
information, and requires Employee to do the same; and

            (d)   Companies or individuals or other entities that provide goods
and services similar to those of the Related Companies derived from its access
to its Trade Secrets gained from a current or former Employee of any of the
Related Companies, without their express permission, license or franchise,
regardless of geographic location, would cause irreparable harm and undue
hardship, and would materially jeopardize the business of the Related Companies
and materially jeopardize the ability of the Related Companies to attain their
goals, thus reducing significantly their value should the Employee compete with
any Related Company, or assist, induce or cause other persons to compete with
any Related Company; and

           (e)   The value of such harm would be substantial and
unquantifiable. As such, Employee agrees that the violation of this covenant
would cause irreparable harm to the Related Companies.

      9.    Covenant not to Compete. Recognizing that the business and success
of each Related Company is predicated upon the existence and preservation of its
legitimate business interests, Trade Secrets and other professional and
confidential information, the Employee covenants and agrees that during the
Non-Competition Period, in the geographic area for which the Related Company has
distribution rights for the products and services that it offers, he will not,
directly or indirectly (through one or more intermediaries), whether
individually, or as an officer, director, agent, shareholder, partner, joint
venturer, investor, consultant or otherwise, compete, induce or cause others to
compete, induce or attempt to compete, in whole or in part with, or assist any
individual, company, business enterprise or other entity in competing or
intending or attempting to compete in whole or in part with, the business then
engaged in by the Related Company, or expressly contemplated to be undertaken by
the Related Company.

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      10.   Secrecy. The Employee agrees that he shall not at any time disclose
or cause the disclosure of any information relating to any Related Company
obtained before or during the course of his employment, including any Related
Company's Trade Secrets, and other professional and confidential information and
shall maintain such as secret. Further, the Employee shall not, whether directly
or indirectly use, or cause others to use, communicate, disclose or disseminate
any information of a secret, proprietary, confidential or generally undisclosed
nature relating to any Related Company, including, without limitation, its
structure, its contacts, its products, processes and services, including
information relating to testing, research, development, manufacturing, financial
condition, statistics, marketing and selling, and the Employee shall strictly
maintain the foregoing as secret.

      11.   No Interference. The Employee agrees that he will not, whether for
his own account or for the account of any other individual, partnership, firm,
company or other business organization (other than a Related Company), directly
or indirectly hire, employ, solicit, endeavor to entice away from any Related
Company, or otherwise interfere with the relationship of any Related Company,
with any person who is employed by or otherwise engaged to provide products to
or perform services for the Company, nor will Employee directly or indirectly
interfere with the business of any Related Company or its customers, suppliers,
or other such persons or entities with which any Related Company transacts
business for any purpose, which may result in or may be construed to result in
having an adverse effect upon any Related Company's business activities, Trade
Secrets or professional and confidential information of any Related Company.

      12.   Assignment of Inventions.

            (a)   During his employment by the Company, all Inventions made by
the Employee shall be the sole and exclusive property of the Company, and the
Employee agrees to perform the provisions of this Section without the payment by
the Company of any royalty or any consideration therefore whatsoever, other than
the regular compensation paid to the Employee in his capacity as an Employee.
The Company shall have the royalty-free right to use in its business, and to
make, use and sell products, processes and/or services derived from any
Inventions, as well as improvements thereof or know-how related thereto, which
are conceived or made by the Employee during the period he is engaged by the
Company or with the use or assistance of the Company's facilities, materials or
personnel.

            (b)   The Employee will not assert any rights under any Inventions
as having been made or acquired by him prior to his being employed by the
Company or during the term of his employment if based on or otherwise related to
the business, Trade Secrets or other professional or confidential information of
the Company.

            (c)   All Inventions based on or related to any Related Company's
business, Trade Secrets, or other professional or confidential information,
which the Employee makes, discovers or conceives, shall be the sole property of
the Company. In the event that the Employee develops and/or conceives of an
Invention, he shall

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notify the Company of such an Invention. At such time, the Employee shall apply,
at the Company's request and expense, for any and all letters patent or
copyrights domestic and/or foreign as the Company, in its sole discretion may
desire, either in the Employee's name or otherwise as the Company shall desire
and so designate.

            (d)   The Employee hereby assigns to the Company or to any person or
entity designated by the Company any and all of his rights to such Inventions,
and to applications for Canadian and/or foreign letters patent, trade or other
marks, or copyrights and to Canadian and/or foreign letters patent, trademarks
or copyrights granted upon such Inventions. The Employee also agrees to promptly
execute written assignments of all his rights in any and all modifications,
continuations, continuations in part, divisions, extensions, and any and all
other lineages of said patent(s) and/or copyright(s) and trademark(s) which
relate to such Inventions to the Company, or its designee, and further agrees to
sign and properly execute any and all such necessary and lawful papers as the
Company requires, at the Company's sole discretion and expense, to carry out
such assignments and for filing and prosecuting domestic and/or foreign patent,
copyright and/or trademark applications. The Employee also agrees to perform
such further acts, which may be required to carry out the intent of this
Agreement.

            (e)   Any and all developments or inventions made outside of the
scope, direction, influence or intent of the definition of Inventions made
herein, shall remain the sole and exclusive property of the Employee, except
that the Company shall have "shop rights" for the royalty-free use of any and
all such inventions developed independently by Employee.

            (f)   The Employee shall acknowledge and deliver promptly to the
Company or to any person or entity designated by the Company without charge to
the Company but at its expense such written instruments (including applications
and assignments) and do such other acts, such as giving testimony, as may be
necessary in the opinion of the Company to obtain, maintain, extend, reissue and
enforce any and all Canadian and/or foreign letters patent, trademark(s) and
copyright(s) relating to the Inventions and to vest the entire right and title
thereto in the Company or its nominee. The Employee acknowledges and agrees that
any copyright developed or conceived of by the Employee during the term of
Employee's engagement which is related to the business of the Company shall be a
"work for hire" under the copyright laws of the United States and other
applicable jurisdictions.

      13.   Existing Inventions. The Company expressly disclaims any beneficial
interest in or ownership of any and all inventions or Inventions previously
developed by the Employee so long as all such inventions and Inventions are
delineated and identified as a matter of record by the Employee on Exhibit "A"
attached hereto. The Employee hereby warrants that all inventions or
improvements which have been made or conceived or first reduced to practice by
the Employee alone or jointly with others, which he desires to remove from the
scope of this Agreement are listed on Exhibit "A," and the Employee represents
that such list is complete. If there is no such list on

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Exhibit "A," the Employee represents that he has made no inventions and/or
improvements at the time of the signing of this Agreement.

      14.   No Violation, The Employee represents warrants and agrees that his
execution of and performance of all the terms of this Agreement does not and
will not breach any agreement or duty to which he is subject at the time of
execution of this Agreement. The Employee agrees not to enter into any written
or oral agreement in conflict herewith and represents and agrees that he has not
brought and will not bring with him to the Company or use in the performance of
his responsibilities at the Company any materials or documents of a former
company which are not generally available to the public.

      15.   Indemnification. The Company will indemnify and hold harmless the
Employee in respect of liability, damage, cost or expense, including reasonable
legal fees incurred in connection with the defenses of any claim, action, suit
or proceeding to which the Employee is a party, or threat thereof, by reason of
being an employee of the Company, to the extent permitted by the Business
Corporations Act (Ontario). Notwithstanding the forgoing, the Company will not
indemnify and hold harmless the Employee from any act or omission arising out of
(i) the fraudulent conduct of the Employee, or (ii) any other act or omission of
the Employee committed outside of the scope of the Employee's duties.

      16.   Travel Visa. The Company shall arrange for requisite visa for the
Employee to travel to the US from Canada for travel by the Employee for the
business of the Company.

      17.   Tax Preparation Assistance. The Company agrees to provide sufficient
resources and assistance to the Employee to enable the Employee to properly file
Canadian personal tax and other tax returns as may be required to be filed by
the Employee.

      18.   Mediation. If at any time during the currency of this Agreement, or
after the termination hereof, any dispute, difference or question shall arise,
or any failure to agree, shall occur among the parties hereto respecting this
Agreement or anything herein contained, the parties agree that they will
endeavour to settle any dispute, difference or question, which they are unable
to settle through direct negotiations or through negotiations by their
solicitors, by mediation before resorting to arbitration as set out below.

      Either party may request mediation and the parties shall within fifteen
(15) days of such request, concurrently select a mediator. In the event the
parties neglect or refuse or are unable to agree upon a single mediator, then
either party to the dispute may apply to a judge of the Superior Court of
Justice at Toronto to appoint such single mediator. The parties shall
participate in good faith in a mediation and any related negotiations for a
period of sixty days following the date of the appointment of the mediator in
accordance with procedures adopted by the mediator. The parties will bear the
costs of the mediation equally or as subsequently agreed at or after the
mediation.

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All conduct, opinions and statements made in the course of the mediation shall
be kept confidential. No party shall call the mediator as a witness for any
purpose in any arbitration or judicial proceeding nor shall any party seek
access to any documents prepared for or delivered to the mediator or any notes
or records of the mediator in any arbitration or judicial proceeding. Evidence
that is otherwise admissible or discoverable shall not be rendered inadmissible
or non-discoverable as a result of its presentation or use in the mediation.

      19.   Arbitration. If the parties fail to resolve their differences by
negotiation or mediation, the Company and the Employee agree that any dispute or
difference or question arising out of, in relation to or in connection with this
Agreement, or the making, interpretation, construction, performance or breach
thereof, shall be referred to a single arbitrator to be appointed by the parties
to the dispute within fifteen (15) days of such referral or, if the parties to
the dispute neglect or refuse or are unable to agree upon a single arbitrator,
then either party to the dispute may apply to a Judge of the Superior Court of
Justice at Toronto to appoint such single arbitrator. The arbitrator may grant
injunctive or other relief in such dispute or controversy. The decision of the
Arbitrator shall be final, conclusive and binding on the parties to the
arbitration. Judgment may be entered on the arbitrator's decision in any Court
of competent jurisdiction. The parties agree that, any provision of applicable
law notwithstanding, they will not request, and the arbitrator shall have no
authority to award punitive or exemplary damages against any party. In the event
that the prevailing party in any arbitration proceeding is the Employee, the
costs of the arbitration, including administrative and arbitrator's, legal and
expert witness fees of both parties shall be borne by the Company on a
substantial indemnity basis as that term is defined by the Rules of Civil
Procedure. In the event that the prevailing party in any arbitration proceeding
is the Company, administrative and arbitrators fees shall be shared equally by
the parties and each party shall be responsible for their respective legal,
expert witness and other fees. The arbitration shall be regarded as a reference
under and shall be proceeded with pursuant to the provisions of the Arbitration
Act, 1991 (Ontario).

      20.   Successors and Assigns. This Agreement shall be binding upon the
Employee, his heirs, executors and administrators; provided, however, the
Employee shall not have the right to assign this Agreement.

      21.   Prior Agreements. If the Employee currently has a written or other
Employment Agreement with the Company, then this Agreement supersedes and
replaces the provisions of such Agreement.

      22.   Severability. Wherever there is any conflict between any provision
of this Agreement (or part thereof), and any statute, law, regulation or
judicial precedent, the latter shall prevail, but in such event the provisions
of this Agreement thus affected shall be curtailed and limited only to the
extent necessary to bring it within the requirement of the law. In the event
that any provision of this Agreement shall be held by a court of proper
jurisdiction to be indefinite, invalid or otherwise unenforceable, the entire
Agreement shall not fail on account thereof, but the balance of the Agreement
shall continue in full force and effect.

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Agreement shall not fail on account thereof, but the balance of the Agreement
shall continue in full force and effect.

      23.   Choice of Law, Choice of Forum. This Agreement shall be governed and
construed exclusively by laws of the Province of Ontario, except for any law,
rule or principle which might require application of the substantive law of
another jurisdiction. Exclusive venue shall lie with the provincial or federal
courts of competent jurisdiction in Ontario, Canada.

      24.   Entire Agreement; Amendment and Waiver. This Agreement and the
Exhibits attached hereto, constitute the entire understanding of the parties
hereto relating to the subject matter hereof and supersede all prior agreements
or understandings with respect to the subject matter hereof among the parties.
This Agreement may be amended, and the observance of any term of this Agreement
may be waived only with the written consent of each of the parties hereto. Any
such wavier does not imply or express that any other similar or dissimilar
wavier shall be granted or agreed to by the Company.

      25.   Section Headings. The headings of the sections and subsections of
this Agreement are inserted for convenience only and shall not be deemed to
constitute a part thereof.

      26.   Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original and all of which
together shall be considered one and the same agreement.

      IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
and delivered as of the date first written above.

                                   Vascular Sciences Corporation

                                   By: /s/ Elias Vamvakas
                                       ------------------
                                       ELIAS VAMVAKAS

/s/ Bill Dumencu                   /s/ Irving Siegel
----------------                   ------------------
Witness                            Irving Siegel

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                                   SCHEDULE A

                             INITIAL BONUS CRITERIA

                                       12<PAGE>

                                                                   EXHIBIT 10.17

                              EMPLOYMENT AGREEMENT

            THIS AGREEMENT is made as of this 30th day of July, 2004,

BETWEEN:

                  OCCULOGIX INC., a corporation incorporated under the laws of
                  the State of Delaware

                  (the "Corporation")

                  - and-

                  STEPHEN KILMER, of the City of Burlington, in the Province of
                  Ontario

                  (the "Employee")

RECITAL:

A.    The Corporation and the Employee wish to enter into this Agreement to set
      forth the rights and obligations of each of them as regards the Employee's
      employment with the Corporation;

            NOW THEREFORE in consideration of the mutual covenants and
agreements contained in this Agreement and other good and valuable consideration
(the receipt and sufficiency of which are hereby acknowledged), the Corporation
and the Employee agree as follows:

1.          DEFINITIONS

      1.1.  In this Agreement,

            1.1.1. "Affiliate" has the meaning attributed to such term in the
            Business Corporations Act (Ontario) as the same may be amended from
            time to time and any successor legislation thereto;

<PAGE>

                                      -2-

            1.1.2. "AGREEMENT" means this agreement and all schedules attached
            to this agreement, in each case as they may be amended or
            supplemented from time to time, and the expressions "hereof,
            "herein", "hereto", "hereunder", "hereby" and similar expressions
            refer to this agreement and unless otherwise indicated, references
            to sections are to sections in this agreement;

            1.1.3. "BASIC SALARY" and "SALARY" have the respective meanings
            attributed to such terms in section 5.1;

            1.1.4. "BENEFITS" has the meaning attributed to such term in section
            5.4;

            1.1.5. "BUSINESS DAY" means any day, other than Saturday, Sunday or
            any statutory holiday in the Province of Ontario;

            1.1.6. "CHANGE OF CONTROL" for the purposes of this Agreement, shall
            be deemed to have occurred when:

                  1.1.6.1. any Person, other than a Person or a combination of
                  Persons presently owing, directly or indirectly, more than 20%
                  of existing voting securities of the Corporation, acquires or
                  becomes the beneficial owner of, or a combination of Persons
                  acting jointly and in concert acquires or becomes the
                  beneficial owner of, directly or indirectly, more than 50% of
                  the voting securities of the Corporation, whether through the
                  acquisition of previously issued and outstanding voting
                  securities, or of voting securities that have not been
                  previously issued, or any combination thereof, or any other
                  transaction having a similar effect;

                  1.1.6.2. the Corporation amalgamates with one or more
                  corporations other than a Subsidiary or OccuLogix, L.P.;

                  1.1.6.3. the Corporation sells, leases or otherwise disposes
                  of all or substantially all of its assets and undertaking,
                  whether pursuant to one or more transactions;

<PAGE>

                                      -3-

                  1.1.6.4. any Person not part of existing management of the
                  Corporation or any Person not controlled by the Corporation or
                  by any Affiliate enters into any arrangement to provide
                  management services to the Corporation which results in either
                  (i) the termination by the Corporation of the employment of
                  any two of the Chairman and Chief Executive Officer, President
                  and Chief Operating Officer, Chief Financial Officer or
                  Corporate General Counsel for any reason other than Just
                  Cause; or (ii) the termination of the employment of all such
                  senior executive personnel within six months of the date that
                  such arrangement is entered into for any reason other than
                  Just Cause; or

                  1.1.6.5. the Corporation enters into any transaction or
                  arrangement which would have the same or similar effect as the
                  transactions referred to in sections 1.1.6.1, 1.1.6.2, 1.1.6.3
                  or 1.1.6.4 above.

            1.1.7. "CONFIDENTIAL INFORMATION" means all confidential or
            proprietary information, intellectual property (including trade
            secrets) and confidential facts relating to the business or affairs
            of the Corporation or any of its Subsidiaries which the Corporation
            treats as confidential or proprietary;

            1.1.8. "DISABILITY" means the mental or physical state of the
            Employee such that the Employee has been unable as a result of
            illness, disease, mental or physical disability or similar cause to
            fulfil his obligations under this Agreement either for any
            consecutive 6 month period or for any period of 12 months (whether
            or not consecutive) in any consecutive 24-month period;

            1.1.9. "EMPLOYMENT PERIOD" has the meaning attributed to such term
            in section 4;

            1.1.10. "ESA" means the Employment Standards Act, 2000 (Ontario) as
            the same may be amended from time to time and any successor
            legislation thereto;

            1.1.11. "GOOD REASON" means:

<PAGE>

                                      -4-

                  1.1.11.1. without the consent of the Employee, any material
                  change or series of material changes in the responsibilities
                  or status of the Employee with the Corporation, such that
                  immediately after such change or series of changes the
                  responsibilities and status of the Employee are materially
                  diminished in comparison to his responsibilities and status
                  immediately prior to such change or series of changes, except
                  in connection with the termination of the Employee's
                  employment by the Corporation for Just Cause or on death,
                  Disability or Retirement or a voluntary resignation by the
                  Employee other than a resignation for Good Reason;

                  1.1.11.2. a reduction of more than ten percent by the
                  Corporation in the Employee's Basic Salary as in effect on the
                  date hereof or as the same may be increased from time to time;

                  1.1.11.3. the taking of any action by the Corporation which
                  would materially adversely affect the Employee's participation
                  in, or materially reduce the Employee's Benefits and other
                  similar plans in which the Employee is participating at the
                  date hereof (or such other plans as may be implemented after
                  the date hereof providing the Employee with substantially
                  similar benefits), or the taking of any action by the
                  Corporation which would deprive the Employee of any material
                  fringe benefit enjoyed by him at the date hereof;

                  1.1.11.4. without the Employee's consent, the requirement that
                  the Employee be based anywhere other than the Corporation's
                  principal executive offices except for required travel on the
                  Corporation's business; or

                  1.1.11.5. any reason which would be considered to amount to
                  constructive dismissal by a court of competent jurisdiction.

<PAGE>

                                     -5-

            1.1.12. "JUST CAUSE" means:

                  1.1.12.1. the failure of the Employee to properly carry out
                  his duties after notice by the Corporation of the failure to
                  do so and an opportunity for the Employee to correct the same
                  within a reasonable time from the date of receipt of such
                  notice; or

                  1.1.12.2. theft, fraud, dishonesty or misconduct by the
                  Employee involving the property, business or affairs of the
                  Corporation or its Subsidiaries or the carrying out of the
                  Employee's duties;

            1.1.13. "PERSON" means any individual, partnership, limited
            partnership, joint venture, syndicate, sole proprietorship, company
            or corporation with or without share capital, unincorporated
            association, trust, trustee, executor, administrator or other legal
            personal representative, regulatory body or agency, government or
            governmental agency, authority or entity however designated or
            constituted;

            1.1.14. "RESTRICTED PERIOD" means, as the case may be, (i) the
            notice period provided for in section 8; or (ii) one year if the
            employment of the Employee is terminated pursuant to section 10.1 or
            10.2;

            1.1.15. "RETIREMENT" means Retirement in accordance with the
            Corporation's retirement policy;

            1.1.16. "SUBSIDIARIES" has the meaning attributed to such term by
            the Business Corporations Act (Ontario) as the same may be amended
            from time to time and any successor legislation thereto;

            1.1.17. "YEAR OF EMPLOYMENT" means any 12-month period commencing on
            January 1, provided that for the purposes of this Agreement, the
            "First Year of Employment" shall be deemed to commence on July 29,
            2004 and to end on December 31, 2004.

<PAGE>

                                       -6-

2.          EMPLOYMENT OF THE EMPLOYEE

            The Corporation shall employ the Employee, and the Employee shall
serve the Corporation, in the position of Vice-President, Corporate Affairs on
the conditions and for the remuneration hereinafter set out. In such position,
the Employee shall perform or fulfil such duties and responsibilities as the
Corporation may designate from time to time. The Employee shall report to the
Chairman and Chief Executive Officer of the Corporation.

3.          PERFORMANCE OF DUTIES

            During the Employment Period, the Employee shall faithfully,
honestly and diligently serve the Corporation and its Subsidiaries as
contemplated above. The Employee shall (except in the case of illness or
accident) devote all of his working time and attention to his employment
hereunder except where expressly agreed by the Chairman and Chief Executive
Office and shall use his best efforts to promote the interests of the
Corporation.

4.          EMPLOYMENT PERIOD

            The Employee's employment under this Agreement shall, subject to
section 8 and section 10, be for an indefinite term. Accordingly, the
Corporation shall employ the Employee and the Employee shall serve the
Corporation as an employee in accordance with this Agreement for the period
beginning on the date hereof and ending on the effective date the employment of
the Employee under this Agreement is terminated in accordance with section 8.2
or section 10 (the "Employment Period").

5.          REMUNERATION

      5.1. BASIC REMUNERATION. The Corporation shall pay the Employee a gross
      salary, minus applicable deductions and withholdings, in respect of each
      Year of Employment in the Employment Period, of $190,000 (the "Basic
      Salary"), payable in equal installments according to the Corporation's
      regular payroll practices. The Basic Salary shall, in the sole and
      absolute discretion of the board of directors of the Corporation, be
      subject to an increase on the basis of an annual review. The Basic Salary
      shall be prorated in respect of the First

<PAGE>

                                       -7-

      Year of Employment such that the Employee shall be entitled to and the
      Corporation shall be required to pay in respect of each such year only
      that proportion of the Basic Salary that the number of days in the First
      Year of Employment is to 365.

      5.2. BONUS REMUNERATION. The Employee shall, in respect of each Year of
      Employment during the Employment Period, receive such bonus remuneration,
      as outlined in Schedule 5.2.

      5.3. STOCK OPTIONS. The Employee shall, during the Employment Period,
      receive such stock options, if any, as the board of directors of the
      Corporation, in its sole discretion may, pursuant to the terms of the
      Corporation's stock option plan, authorize. The Employee, shall in respect
      of the First Year of Employment, be eligible to such stock options, as
      outlined in Schedule 5.3.

      5.4. BENEFITS. The Corporation shall provide to the Employee, in addition
      to Salary, if any, the benefits (the "Benefits") described in the
      Corporation's employee benefit booklet, such Benefits to be provided in
      accordance with and subject to the terms and conditions of the applicable
      plan relating thereto in effect from time to time and subject to change at
      any time in the sole discretion of the Corporation.

      5.5. PRO-RATA ENTITLEMENT IN THE EVENT OF TERMINATION. If the Employee's
      employment is terminated pursuant to section 8 or section 10 or if the
      Employee dies during the Employment Period, the Employee shall be entitled
      to receive in respect of his entitlement to Salary, and the Corporation
      shall be required to pay in respect thereof, only that proportion of the
      Salary in respect of the Year of Employment in which the effective date of
      the termination of employment or the date of death occurs that the number
      of days elapsed from the commencement of such Year of Employment to the
      effective date of termination or the date of death is to 365.

6.          EXPENSES

            Subject to the terms of the Corporation's expense policy, the
Corporation shall pay or reimburse the Employee for all travel and out-of-pocket
expenses reasonably incurred or

<PAGE>

                                      -8-

paid by the Employee in the performance of his duties and responsibilities upon
presentation of expense statements or receipts or such other supporting
documentation as the Corporation may reasonably require.

7.          VACATION

            The Employee shall be entitled during each full Year of Employment
during the Employment Period to vacation with pay of four (4) weeks. Vacation
shall be taken by the Employee at such time as may be acceptable to the
Corporation having regard to its operations. Except with the prior written
consent of the Chairman and Chief Executive Officer (i) no more than two weeks
of vacation shall be taken consecutively; and (ii) the vacation entitlement
earned in a Year of Employment is subject to any carryover provisions as stated
in the Company's vacation policy. Notwithstanding the foregoing, in the event
that the Employee's employment is terminated pursuant to section 8 or section
10, the Employee shall not be entitled to receive any payment in lieu of any
vacation to which he was entitled and which had not already been taken by him
except to the extent, if any, of the payments in respect of vacation pay
required by the ESA.

8.          TERMINATION

      8.1. NOTICE. The Employee's employment may, subject to section 10 and
      section 11 hereof, be terminated at any time:

            8.1.1. by the Corporation without prior notice and without further
            obligations to the Employee for reasons of Just Cause;

            8.1.2. by the Corporation for any reason other than Just Cause, on
            twelve months' prior written notice to the Employee provided that if
            the Employee is entitled under the ESA to a longer period of notice
            than that prescribed above, the notice to be given by the
            Corporation under this section 8.1.2 shall be that minimum period of
            notice which is required under the ESA and no more; or

            8.1.3. by the Employee on one month's notice to the Corporation.

<PAGE>

                                       -9-

      The Employee's employment shall be automatically terminated, without
      further obligation to the Employee, in the event of his death.

      8.2. EFFECTIVE DATE. The effective date on which the Employee's employment
      shall be terminated shall be:

            8.2.1. in the case of termination under section 8.1.1, the day the
            Employee is deemed, under section 18, to have received notice from
            the Corporation of such termination;

            8.2.2. in the case of termination under section 8.1.2 or section
            8.1.3, the last day of the minimum period referred to therein; and

            8.2.3. in the event of the death of the Employee, on the date of his
            death.

            Notwithstanding the foregoing, where the Corporation is giving or
has given the notice pursuant to section 8.1.2 above, the Corporation shall have
the right, at any time prior to the end of the Employment Period and by giving
notice to the Employee to that effect (a "Stop Work Notice"), to require that
the Employee cease to perform his duties and responsibilities and cease
attending the Corporation's premises immediately upon the giving of the Stop
Work Notice. If a Stop Work Notice is given, the Corporation shall continue to
pay the Employee to the end of the Employment Period. For that purpose, in
calculating the Employee's entitlement to Salary, the Employee shall be
considered to have been actively employed by the Corporation to the end of the
Employment Period. For the purpose of the Employee's entitlement to Benefits,
the Employee shall receive an amount equal to 2.5 percent of his Basic Salary
for the purpose of obtaining equivalent coverage during the notice period.

9.          RIGHTS OF EMPLOYEE ON TERMINATION AND LUMP SUM PAYMENT

            Where the Employee's employment under this Agreement has been
terminated by the Corporation under section 8.1.2, the Employee shall be
entitled, upon providing to the Corporation appropriate releases, resignations,
and other similar documentation, to receive from the Corporation, in addition to
accrued but unpaid Salary, if any and any entitlement in respect of

<PAGE>

                                      -10-

vacation as contemplated by section 7, a lump sum payment equal to twelve (12)
months of his Basic Salary and 2.5 percent of his Salary in respect of his
entitlement to Benefits, less any amounts payable to the Employee in lieu of
notice where a Stop Work Notice has been given pursuant to section 8 and less
any amounts owing by the Employee to the Corporation for any reason. For the
purposes of the Employee's entitlement to Benefits, the Employee shall receive
an amount equal to 2.5 percent of his Basic Salary for the purpose of obtaining
equivalent coverage during the notice period.

            Except as provided above in this section and subject to section 10
and section 11 where the Employee's employment has been terminated by the
Employee or by the Corporation for any reason, the Employee shall not be
entitled, except to the extent required under any mandatory employment standard
under the ESA, to receive any payment as severance pay, in lieu of notice, or as
damages. Except as to any entitlement as provided above and subject to section
10, the Employee hereby waives any claims that the Employee may have against the
Corporation for or in respect of severance pay, or on account of loss of office
or employment or notice in lieu thereof or damages in lieu thereof (other than
rights to accrued but unpaid Salary and vacation pay and to reimbursement for
expenses pursuant to section 6). The payments to the Employee where the
Corporation has given notice pursuant to section 8.1.2 above, whether or not a
Stop Work Notice is given, shall be deemed to include and to satisfy entitlement
to severance pay pursuant to the ESA to the extent of such payments.

10.         CHANGE OF CONTROL

      10.1. TERMINATION OF EMPLOYMENT BY THE CORPORATION FOR JUST CAUSE.
      Following a Change of Control, the Corporation may terminate the
      Employee's employment at any time without notice or further obligations to
      the Employee under this Agreement for reasons of Just Cause. For greater
      certainty, following a Change of Control, the Employee shall not be deemed
      to have been terminated for Just Cause unless and until there has been
      delivered to the Employee a copy of a resolution duly adopted by the
      affirmative vote of not less than three-quarters of the entire membership
      of the board of directors of the Corporation (excluding the Employee if
      the Employee is at the time a director of the Corporation) at a

<PAGE>

                                      -11-

      meeting of the board called and held for the purpose (after reasonable
      notice to the Employee), finding that in the good faith opinion of the
      Board, the Employee's conduct constituted Just Cause and specifying the
      particulars thereof. The date on which such resolution is given to the
      Employee shall be the effective date of any termination pursuant to this
      section 10.1.

      10.2. TERMINATION OF EMPLOYMENT WITHOUT JUST CAUSE OR FOR GOOD REASON. If
      at any time within 24 months following a Change of Control, the Employee's
      employment is terminated, (i) by the Corporation other than for Just
      Cause; or (ii) by the Employee in response to a Good Reason, the following
      provisions shall apply:

            10.2.1. the Employee shall be entitled to receive, and the
            Corporation shall pay to the Employee immediately following
            termination, a cash amount equal to twelve (12) months the
            Employee's Basic Salary less any required statutory deductions;

            10.2.2. the Employee shall be entitled to receive, and the
            Corporation shall pay to the Employee, immediately following
            termination, a cash amount equal to 2.5 percent of his annual Salary
            in lieu of continued benefit coverage; and

            10.2.3. if at the date of termination of the Employee's employment,
            the Employee holds options for the purchase of shares under a share
            option plan, all options so held shall, notwithstanding the terms of
            the Corporation's share option plan, (i) immediately vest to the
            extent they have not already vested at such date; and (ii) (A)
            continue to be held on the same terms and conditions as if the
            Employee continued to be employed by the Corporation or (B) if the
            Employee so elects in writing within 90 days after the date of
            termination, be purchased by the Corporation at a cash purchase
            price equal to the amount by which the aggregate "fair market value"
            of the shares subject to such options exceeds the aggregate option
            price for such shares, provided that for this purpose, "fair market
            value" means the higher of (i) the weighted average of the closing
            prices for the shares of the same class of the Corporation on the
            principal securities exchange (in terms of

<PAGE>

                                      -12-

            volume of trading) on which such shares are listed at the time of
            termination for each of the last 10 days prior to such time on which
            such shares traded on such securities exchange, and (ii) if the
            Change of Control involved the purchase and sale of such shares, the
            average value of the cash consideration paid to the shareholders of
            the Corporation in connection with the transactions resulting in the
            Change of Control.

For purposes of this Agreement, the Employee's employment shall be deemed to
have been terminated following a Change of Control by the Corporation without
Just Cause or by the Executive with Good Reason, if (i) the Employee's
employment is terminated by the Corporation without Just Cause prior to a Change
of Control and such termination was at the request or direction of a Person who
has entered into an agreement with the Corporation or any shareholder of the
Corporation the consummation of which would constitute a Change of Control; (ii)
the Employee terminates his employment with Good Reason prior to a Change of
Control and the circumstance or event which constitutes Good Reason occurs at
the request or direction of a Person who has entered into an agreement with the
Corporation or any shareholder of the Corporation the consummation of which
would constitute a Change of Control; or (iii) the Employee's employment is
terminated by the Corporation without Just Cause prior to a Change of Control
and the Employee reasonably demonstrates that such termination is otherwise in
connection with or in anticipation of a Change of Control which actually occurs.

For greater certainty, this section 10.2 does not apply in the event of the
termination of the employment of the Employee as a result of death, Disability
or Retirement or by the Corporation for Just Cause or, by the Employee without
Good Reason. If the Employee or the Corporation intends to terminate the
Employee's employment as contemplated in this section 10, the party having such
intention shall in accordance with the provisions of section 17 hereof give the
other notice thereof.

11.         NO OBLIGATION TO MITIGATE

            The Employee shall not be required to mitigate the amount of any
payment or Benefits provided for in this Agreement by seeking other employment
or otherwise, nor (except

<PAGE>

                                      -13-

as specifically provided herein), shall the amount of any payment provided for
in this Agreement be reduced by any compensation earned by the Employee as a
result of employment by another employer after termination or otherwise.

12.         NON-COMPETITION

            The Employee shall not, either during the Employment Period or the
Restricted Period, within Canada or the United States of America, directly or
indirectly, in any manner whatsoever including, without limitation, either
individually, or in partnership, jointly or in conjunction with any other
Person, or as employee, principal, agent, director or shareholder:

            (i)   be engaged in any undertaking;

            (ii)  have any financial or other interest (including an interest by
                  way of royalty or other compensation arrangements) in or in
                  respect of the business of any Person which carries on a
                  business; or

            (iii) advise, lend money to, guarantee the debts or obligations of
                  or permit the use of the Employee's name or any parts thereof
                  by any Person which carries on a business;

which is the same as or substantially similar to or which competes with or would
compete with the business carried on during the Employment Period or at the end
thereof, as the case may be, by the Corporation or any of its Subsidiaries.

            Notwithstanding the foregoing, nothing herein shall prevent the
Employee from owning not more than 5% of the issued shares of a corporation, the
shares of which are listed on a recognized stock exchange or traded in the over
the counter market in Canada or the United States, which carries on a business
which is the same as or substantially similar to or which competes with or would
compete with the business of the Corporation or any of its Subsidiaries.

<PAGE>

                                      -14-

13.         NO SOLICITATION OF PATIENTS

            The Employee shall not, either during the Employment Period or the
Restricted Period, directly or indirectly, solicit or attempt to solicit any
patients of the Corporation or any of its Subsidiaries for the purpose of
selling to the patient any products or services which are the same as or
substantially similar to, or in any way competitive with, the products or
services sold by the Corporation or any of its Subsidiaries during the
Employment Period or at the end thereof, as the case may be.

14.         NO SOLICITATION OF EMPLOYEES

            The Employee shall not, either during the Employment Period or the
Restricted Period, directly or indirectly, employ or retain as an independent
contractor any employee of the Corporation or any of its Subsidiaries or induce
or solicit, or attempt to induce, any such person to leave his/her employment.

15.         CONFIDENTIALITY

            The Employee shall not, either during the Employment Period or at
any time thereafter, directly or indirectly, use or disclose to any Person any
Confidential Information provided, however, that nothing in this section shall
preclude the Employee from disclosing or using Confidential Information if:

      15.1. the Confidential Information is available to the public or in the
      public domain at the time of such disclosure or use, without breach of
      this Agreement; or

      15.2. disclosure of the Confidential Information is required to be made by
      any law, regulation, governmental body, or authority or by court order.

The Employee acknowledges and agrees that the obligations under this section are
to remain in effect in perpetuity and shall exist and continue in full force and
effect notwithstanding any breach or repudiation, or alleged breach or
repudiation, by the Corporation of this Agreement.

<PAGE>

                                      -15-

16.         REMEDIES

            The Employee acknowledges that a breach or threatened breach by the
Employee of the provisions of any of sections 12 to 15 inclusive will result in
the Corporation and its shareholders suffering irreparable harm which is not
capable of being calculated and which cannot be fully or adequately compensated
by the recovery of damages alone. Accordingly, the Employee agrees that the
Corporation shall be entitled to interim and permanent injunctive relief,
specific performance and other equitable remedies, in addition to any other
relief to which the Corporation may become entitled.

17.         NOTICES

            Any notice or other communication required or permitted to be given
hereunder shall be in writing and shall be given by prepaid first-class mail, by
facsimile or other means of electronic communication or by hand-delivery as
hereinafter provided, except that any notice of termination by the Corporation
under section 8 or section 10 shall be hand-delivered or given by registered
mail. Any such notice or other communication, if mailed by prepaid first-class
mail at any time other than during a general discontinuance of postal service
due to strike, lockout or otherwise, shall be deemed to have been received on
the fourth Business Day after the post-marked date thereof, or if mailed by
registered mail, shall be deemed to have been received on the day such mail is
delivered by the post office, or if sent by facsimile or other means of
electronic communication, shall be deemed to have been received on the Business
Day following the sending, or if delivered by hand shall be deemed to have been
received at the time it is delivered to the applicable address noted below
either to the individual designated below or to an individual at such address
having apparent authority to accept deliveries on behalf of the addressee.
Notice of change of address shall also be governed by this section. In the event
of a general discontinuance of postal service due to strike, lock-out or
otherwise, notices or other communications shall be delivered by hand or sent by
facsimile or other means of electronic communication and shall be deemed to have
been received in accordance with this section. Notices and other communications
shall be addressed as follows:

<PAGE>

                                      -16-

      a)    if to the Employee:

      Stephen Kilmer
      1917 Edenvale Crescent
      Burlington, ON L7P 3H9

      b)    if to the Corporation:

      OccuLogix Inc.
      5280 Solar Drive
      Suite 100
      Mississauga, Ontario
      L4W 5M8

      Attention:                  Chairman and Chief Executive Officer
      Telecopier number:          (905) 625-8081

18.         HEADINGS

            The inclusion of headings in this Agreement is for convenience of
reference only and shall not affect the construction or interpretation hereof.

19.         INVALIDITY OF PROVISIONS

            Each of the provisions contained in this Agreement is distinct and
severable and a declaration of invalidity or unenforceability of any such
provision by a court of competent jurisdiction shall not affect the validity or
enforceability of any other provision hereof.

20.         ENTIRE AGREEMENT

            This Agreement constitutes the entire agreement between the parties
pertaining to the subject matter of this Agreement. This Agreement supersedes
and replaces all prior agreements, if any, written or oral, with respect to the
Employee's employment by the Corporation and any rights which the Employee may
have by reason of any such prior agreement or by reason of the Employee's prior
employment, if any, by the Corporation. There are no warranties, representations
or agreements between the parties in connection with the subject matter of this
Agreement except as specifically set forth or referred to in this Agreement. No
reliance is placed on any representation, opinion, advice or assertion of fact
made by the

<PAGE>

                                      -17-

Corporation or its directors, officers and agents to the Employee, except to the
extent that the same has been reduced to writing and included as a term of this
Agreement. Accordingly, there shall be no liability, either in tort or in
contract, assessed in relation to any such representation, opinion, advice or
assertion of fact, except to the extent aforesaid.

21.         WAIVER, AMENDMENT

            Except as expressly provided in this Agreement, no amendment or
waiver of this Agreement shall be binding unless executed in writing by the
party to be bound thereby. No waiver of any provision of this Agreement shall
constitute a waiver of any other provision nor shall any waiver of any provision
of this Agreement constitute a continuing waiver unless otherwise expressly
provided.

22.         CURRENCY

            All amounts in this Agreement are stated and shall be paid in
Canadian currency.

23.         EMPLOYERS AND EMPLOYEES ACT NOT TO APPLY

            The Corporation and the Employee agree that section 2 of the
Employers and Employees Act (Ontario) shall not apply to or in respect of this
Agreement or the employment of the Employee hereunder.

24.         GOVERNING LAW

            This Agreement shall be governed by and construed in accordance with
the laws of the Province of Ontario and the laws of Canada applicable therein.

25.         COUNTERPARTS

            This Agreement may be signed in counterparts and each of such
counterparts shall constitute an original document and such counterparts, taken
together, shall constitute one and the same instrument.

<PAGE>

                                      -18-

26.         ACKNOWLEDGMENT

            The Employee acknowledges that:

      26.1. the Employee has had sufficient time to review and consider this
      Agreement thoroughly;

      26.2. the Employee has read and understands the terms of this Agreement
      and the Employee's obligations hereunder; and

      26.3. the Employee has been given an opportunity to obtain independent
      legal advice, or such other advice as the Employee may desire, concerning
      the interpretation and effect of this Agreement; and

      26.4. this Agreement is entered into voluntarily and without any pressure
      and the Employee's continued employment has not been made conditional upon
      execution of this Agreement by the Employee.

            IN WITNESS WHEREOF the parties have executed this Agreement.

                                OccuLogix Inc.

                                by: /s/ Elias Vamvakas
                                    ---------------------------------------
                                    Elias Vamvakas

Witness

                        )
                        )
                        )
                        )
                        )
                        )
/s/ Bill Dumencu        )       /s/ Stephen Kilmer
----------------------  )       -------------------------------------------
Bill Dumencu            )       Stephen Kilmer

<PAGE>

                                  SCHEDULE 5.2

                               BONUS REMUNERATION

In respect of each Year of Employment during the Employment Period, the Employee
shall be entitled to receive a maximum of 25 percent of his salary as bonus
remuneration based upon performance criteria agreed upon by the Chairman and
Chief Executive Officer and Chief Executive Officer and approved by the
Compensation Committee of the Board of Directors. In respect of the First Year
of Employment, the Bonus payable, if any, shall be pro-rated to the proportion
of the number of days in the First Year of Employment is to 365. In addition, it
is agreed that upon a successful completion of an Initial Public Offering in
2004, the Employee shall receive a one-time bonus in the gross amount of
$25,000.

<PAGE>

                                  SCHEDULE 5.3

                                  STOCK OPTIONS

Pending approval from the Board of Directors and contingent upon the successful
completion of an Initial Public Offering, the Employee, in respect of the First
Year of Employment, shall be entitled to receive 80,000 stock options at an
exercise price equal to the price of the shares issued on the Initial Public
Offering. Such stock options, if any, will vest at the rate of 33 1/3 percent
each year following the grant date and will expire ten years following the grant
date.

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