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                                                                   EXHIBIT 10.34

        SERVICE AGREEMENT

        (1)    Visible Genetics UK Limited

        (2)    Brendan Larder

        Dated                2001

        OSBORNE CLARKE

        BRISTOL OFFICE

        50 Queen Charlotte Street, Bristol BS1 4HE
        Telephone 0117 917 3000 Facsimile 0117 917 3005

        LONDON OFFICE

        Hillgate House, 26 Old Bailey, London EC4M 7HW
        Telephone 020 7809 1000 Facsimile 020 7809 1005

        THAMES VALLEY OFFICE

        Apex Plaza, Forbury Road, Reading RG1 1AX
        Telephone 0118 925 2000 Facsimile 0118 925 0038

        WEB SITE: www.osborneclarke.com

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                                    CONTENTS

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<S>                                                                                        <C>
1. Definitions and interpretation...........................................................1
2. Appointment..............................................................................6
3. Term.....................................................................................6
4. Duties of the Executive..................................................................7
5. Hours of work............................................................................8
6. Principal place of work..................................................................8
7. Salary...................................................................................8
8. Expenses.................................................................................9
9. Benefits.................................................................................9
10. Holidays...............................................................................10
11. Sickness or injury.....................................................................11
12. Termination of and suspension from Employment..........................................12
13. Obligations during Employment..........................................................14
14. Obligations after Employment...........................................................18
15. Disciplinary and Grievance procedure...................................................20
16. Collective Agreements..................................................................20
17. Deductions.............................................................................20
18. Entire Agreement.......................................................................20
19. Third Parties..........................................................................20
20. Data Protection........................................................................20
21. Releases and waivers...................................................................21
22. Notices................................................................................21
23. Governing law and jurisdiction.........................................................21
Schedule 1.................................................................................22
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THIS AGREEMENT is made the                          day of                2001

BETWEEN:

(1)    VISIBLE GENETICS UK LIMITED (company number: 04076100) whose registered
       office is at 20/22 Bedford Row, London WC1R 4JS ("THE COMPANY"); and

(2)    BRENDAN LARDER of Monona, 6 Church Lane, Little Eversden CB3 7HQ ("THE
       EXECUTIVE").

IT IS AGREED as follows:

1.     DEFINITIONS AND INTERPRETATION

1.1    In this Agreement, unless the context otherwise requires, the following
       expressions have the following meanings:

<Table>
<Caption>
<S>                           <C>

       "AGREEMENT"            This Agreement (including any schedule or annexure
                              to it and any document referred to in it or in
                              agreed form);

       "BOARD"                The board of directors of the Company and/or any
                              Group Companies from time to time and includes any
                              committee of the Board duly appointed by it;

       "BUSINESSES"           The development, manufacture and marketing of
                              automated DNA sequencing systems and related
                              diagnostic tests/kits for the analysis of DNA and
                              any other trade or commercial activity which is
                              carried on by any Group Company, or which any
                              Group Company shall have determined to carry on
                              with a view to profit in the immediate or
                              foreseeable future;

       "CHIEF EXECUTIVE       Any person holding office as Chief Executive
       OFFICER"               Officer of Visible Genetics Inc (the parent
                              company of the Company) from time to time,
                              including any person exercising substantially the
                              functions of a chief executive officer of the
                              parent company;

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       "COMPANY INVENTION"    Any improvement, invention or discovery made by
                              the Executive which in accordance with Section 39,
                              Patents Act 1977 is the property of the Company;

       "CONFIDENTIAL          Any trade secrets or other information which is
       INFORMATION"           confidential, commercially sensitive and is not in
                              the public domain relating or belonging to the
                              Company or any Group Company including but not
                              limited to information relating to the business
                              methods, corporate plans, management systems,
                              finances, new business opportunities, research
                              and development projects, marketing or sales of
                              any past, present or future product or service,
                              secret formulae, processes, inventions, designs,
                              know-how discoveries, technical specifications
                              and other technical information relating to the
                              creation, production or supply of any past,
                              present or future product or service of the
                              Company or any Group Company, lists or details of
                              clients, potential clients or suppliers or the
                              arrangements made with any client or supplier and
                              any information in respect of which any Group
                              Company owes an obligation of confidentiality to
                              any third party;

       "CUSTOMER"             any person with whom or which the Executive has
                              dealt or of whom or of which he has knowledge by
                              virtue of his Duties in the 6 months preceding the
                              Termination Date and to whom or which the Company
                              or any Group Company shall at any time during the
                              period of 6 months prior to the Termination Date
                              have supplied any Restricted Products or
                              Restricted Services.

       "DUTIES"               The duties of the Executive as set out in clause
                              4;

       "EMPLOYMENT"           The period of the Executive's employment under
                              this Agreement;

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       "GROUP COMPANIES"      The Company, its subsidiaries or subsidiary
                              undertakings, any holding company or parent
                              undertaking and any subsidiary or subsidiary
                              undertaking of any holding company or parent
                              undertaking and "GROUP COMPANY" means any of them;

       "MATERIAL INTEREST"    (a)  the holding of any position (whether employed
                                   or engaged) or provision of services as
                                   director, officer, employee, consultant,
                                   adviser, partner, principal, agent or
                                   volunteer;

                              (b)  the direct or indirect control or ownership
                                   (whether jointly or alone) of any shares (or
                                   any voting rights attached to them) or
                                   debentures save for the ownership for
                                   investment purposes only of not more than 5
                                   per cent of the issued ordinary shares of any
                                   company whose shares are listed on any
                                   Relevant Exchange; or

                              (c)  the direct or indirect provision of any
                                   financial assistance;

       "RELEVANT              means a Recognised Investment Exchange as defined
       EXCHANGE"              in Section 207, Financial Services Act 1986 or the
                              Alternative Investment Market of the London
                              Stock Exchange or any similar or comparable
                              exchange or market;

       "RESTRICTED            any territory in which the Company or any Group
       AREA"                  Company shall carry on the Businesses at the
                              Termination Date;

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       "RESTRICTED            Any products of a kind which have been dealt in,
       PRODUCTS"              produced, marketed or sold by the Company or any
                              Group Company in the ordinary course of the
                              Businesses at any time during the 12 months
                              preceding the Termination Date and in respect of
                              which or the marketing of which the Executive's
                              Duties were directly concerned or for which the
                              Executive was responsible during such period or in
                              relation to which the Executive possesses
                              Confidential Information at the Termination Date;

       "RESTRICTED PROPOSED   Any products which are, at the Termination Date,
       PRODUCTS"              proposed to be dealt in, produced, marketed or
                              sold by the Company or any Group Company at any
                              time during the 12 months following the
                              Termination Date and in respect of which or the
                              marketing of which the Executive's Duties were
                              directly concerned or for which the Executive was
                              responsible during such period or in relation to
                              which the Executive possesses Confidential
                              Information at the Termination Date.

       "RESTRICTED PROPOSED   Any services which are, at the Termination
       SERVICES"              Date, proposed to be provided by the Company or
                              any Group Company at any time during the 12 months
                              following the Termination Date and in respect of
                              which or the marketing of which the Executive's
                              Duties were directly concerned or for which the
                              Executive was responsible during such period or in
                              relation to which the Executive possesses
                              Confidential Information at the Termination Date;

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       "RESTRICTED SERVICES"  any services of a kind which have been provided by
                              the Company or any Group Company in the ordinary
                              course of the Businesses at any time during the 12
                              months preceding the Termination Date and in
                              respect of which or the marketing of which the
                              Executive's Duties were directly concerned or for
                              which the Executive was responsible during such
                              period or in relation to which the Executive
                              possesses Confidential Information at the
                              Termination Date;

       "RESTRICTED            the direct or indirect control or ownership
       SHAREHOLDING"          (whether jointly or alone) of shares in a company
                              which, together with shares held by any person
                              acting in concert with him carry 25% or more of
                              the voting rights of that company;

       "RESTRICTED SUPPLIES"  any goods or services supplied to the Company or
                              any Group Company on terms which as to the nature
                              of the supplies and/or the terms of supply are
                              unique to the relationship between the supplier
                              and the relevant Group Company and in respect of
                              which or the marketing of which the Executive's
                              Duties were directly concerned or for which the
                              Executive was responsible during such period or in
                              relation to which the Executive possesses
                              Confidential Information at the Termination Date;

       "SUPPLIER"             any person with whom the Executive has dealt or of
                              whom or of which the Executive has knowledge by
                              virtue of the Duties in the 12 months preceding
                              the Termination Date and who has during that
                              period provided Restricted Supplies to the Company
                              or any Group Company; and.

       "TERMINATION DATE"     the date on which the Employment terminates;

       "VISIBLE GENETICS INC" the parent company of the Company.
</Table>

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1.2    In this Agreement, unless the context otherwise requires:

       (a)  words in the singular include the plural and vice versa and words in
            one gender include any other gender;

       (b)  a reference to a statute or statutory provision includes:

            (i)     any subordinate legislation (as defined in Section 21(1),
                    Interpretation Act 1978) made under it; and

            (ii)    any statute or statutory provision which modifies,
                    consolidates, re-enacts or supersedes it;

       (c)  a reference to:

            (i)     a "PERSON" includes any individual, firm, body corporate,
                    association or partnership, government or state (whether or
                    not having a separate legal personality);

            (ii)    clauses and schedules are to clauses and schedules of this
                    Agreement and references to sub-clauses and paragraphs are
                    references to sub-clauses and paragraphs of the clause or
                    schedule in which they appear;

       (d)  the table of contents and headings are for convenience only and
            shall not affect the interpretation of this Agreement.

2.     APPOINTMENT

2.1    The Company appoints the Executive and the Executive agrees to serve as
       Chief Scientific Officer of the Company on the terms set out in this
       Agreement. In this capacity, and in accordance with clause 4.3 below, the
       Executive shall also undertake duties as Chief Scientific Officer on
       behalf of Visible Genetics Inc.

2.2    The Executive warrants that the Executive is free to enter into this
       Agreement and is not bound by, nor subject to any court order,
       arrangement, obligation, restriction or undertaking (contractual or
       otherwise) which prohibits or restricts the Executive from entering into
       this Agreement or performing the Duties.

3.     TERM

3.1    The Executive's employment under the terms of this Agreement commenced on
       13 September 2001 and, unless terminated in accordance with clause 12,
       shall continue until terminated by:

       (a)  the Company giving to the Executive not less than 12 months' prior
            written notice at any time up until 25 June 2003. Thereafter, the
            Company shall give to the Executive not less

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            than 12 months' prior written notice plus an additional one month's
            notice for each full year worked beyond 25 June 2003; or

       (b)  the Executive giving to the Company not less than 6 months' prior
            written notice.

3.2    The Executive's continuous period of employment with the Company
       commenced on 25 June 2001.

4.     DUTIES OF THE EXECUTIVE

4.1    The Executive shall carry out such duties as may attach to the
       Executive's office or be assigned to or vested in the Executive by the
       Chief Executive Officer and/or the Board from time to time (whether or
       not commensurate with his position) and exercise the powers consistent
       with such duties.

4.2    At all times during the Employment the Executive shall:

       (a)  unless prevented by ill health and except during holidays taken in
            accordance with this Agreement, devote the whole of the Executive's
            working time and attention to the Employment, save that the
            Executive shall from time to time engage in limited consulting work
            (for example, speaking at conferences) provided that such activities
            are disclosed to the Chief Executive Officer, do not interfere with
            the Executive's duties and responsibilities and the compensation for
            such activities does not exceed L15,000 per annum;

       (b)  perform the Duties faithfully and diligently;

       (c)  obey all lawful and reasonable directions of the Chief Executive
            Officer and the Board, observe such restrictions or limitations as
            may from time to time be imposed by the Chief Executive Officer and
            the Board upon the Executive's performance of the Duties and
            implement and abide by any relevant Company policy which may be
            promulgated or operated in practice from time to time;

       (d)  use best endeavours to promote the interests of the Company and
            shall not do or willingly permit to be done anything which is
            harmful to those interests; and

       (e)  keep the Chief Executive Officer and the Board fully informed (in
            writing if so requested) of the Executive's conduct of the business
            or affairs of the Company and provide such explanations as the Chief
            Executive Officer and the Board may require.

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4.3    The Executive shall (without further remuneration and in addition to the
       Executive's duties to the Company) if and for so long as the Company
       requires during the Employment:

       (a)  carry out any duties assigned to the Executive in relation to any
            Group Company; and

       (b)  act as an officer of any Group Company or hold any other appointment
            or office as nominee or representative of any Group Company;

       in each case as if they were to be performed or held by the Executive for
       or in relation to the Company.

5.     HOURS OF WORK

5.1    The Executive's hours of work shall be the Company's normal office hours
       of 9.00 a.m. to 5.30 p.m. Monday to Friday and such further hours as may
       be necessary for the proper discharge of the Duties. The Executive shall
       not be entitled to receive any additional remuneration for work outside
       the Company's normal office hours.

5.2    The Executive acknowledges that he may be required to work in excess of
       an average of 48 hours in any one period of 7 calendar days if so
       requested by the Company and consents to do so. The Executive may
       withdraw such consent by giving not less than 3 months' prior notice in
       writing to the Company of such withdrawal.

6.     PRINCIPAL PLACE OF WORK

6.1    The Executive's principal place of work shall be at 184 Cambridge Science
       Park, Milton Road, Cambridge CB4 0GA.

6.2    The Executive shall travel to and work on a temporary basis from such
       locations within the UK and abroad as the Board may reasonably require
       for the performance of his Duties.

6.3    There is no current requirement, as at the date of this agreement, for
       the Executive to work outside the United Kingdom for any consecutive
       period of one month or more.

7.     SALARY AND BONUS

7.1    During the Employment the Company shall pay to the Executive a basic
       salary at the rate of L137,500 per annum. This salary shall accrue from
       day to day, be payable by equal monthly instalments in arrears on or
       about the last day of each month and shall include any fees to which the
       Executive is entitled as a director of any Group Company.

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7.2    The Executive's basic salary shall be subject to annual review by the
       Chief Executive Officer. Any increase in the Executive's basic salary
       consequent upon such review will be effective from the effective date
       specified by the Board.

7.3    The Executive will be entitled to participate in any bonus scheme
       applicable to employees of the Executive's status as Visible Genetics Inc
       may operate from time to time, subject to the terms and conditions of any
       such scheme. The bonus scheme as at the date of this Agreement is set out
       at Schedule 1 to this Agreement. Visible Genetics Inc reserve the right
       to amend the terms of the current bonus scheme.

8.     EXPENSES

       The Company shall reimburse to the Executive all expenses reasonably and
       properly incurred by the Executive in the performance of the Duties
       subject to the production of such receipts or other evidence of
       expenditure as the Company may reasonably require.

9.     BENEFITS

9.1    MOTOR CAR

       (a)  Subject to the Executive holding a licence to drive a car in the
            United Kingdom, the Company shall provide the Executive with a car
            of a type appropriate (in the opinion of the Chief Executive
            Officer) to the Executive's position in the Company for the use of
            the Executive.

       (b)  The Company shall bear all tax, insurance, maintenance, repair and
            running costs of the car.

       (c)  The Executive shall at all times maintain the car in a good and
            roadworthy condition, ensure that the conditions of any policy of
            insurance relating to it are observed and comply with all
            regulations laid down by the Company with respect to Company cars.

       (d)  The Executive shall return the car in a clean and proper condition
            together with its keys, registration papers, car alarms, car alarm
            codes, accessories and any Company credit or cheque card provided to
            the Executive exclusively for the purchase of fuel to the Company at
            any time during the Employment on demand and in any event
            immediately upon the Termination Date.

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9.2    PENSION

       (a)  Subject to Inland Revenue limits, the Company shall, in each year of
            the Employment, contribute a sum equivalent to 20% of the
            Executive's basic salary into a personal pension plan of the
            Executive's choice. Such payments to be calculated and paid on a
            monthly basis so that in the year of joining and leaving, the amount
            of such contribution shall be reduced pro rata for each complete
            calendar month not worked. In the event that Inland Revenue limits
            prevent the full payment (or any part-payment) of this benefit into
            the Executive's pension plan the Company shall pay the balance of
            the sum payable direct to the Executive (subject to deduction of
            income tax and national insurance as appropriate).

       (b)  No contracting-out certificate pursuant to the Pension Schemes Act
            1993 is in force in respect of the Employment.

9.3    INSURANCE BENEFITS

       Subject to sub-clause 12.4(a), the Executive shall be eligible to
       participate in such of the following insurance schemes as the Company may
       operate from time to time, subject always to the rules of the relevant
       scheme:

       (a)  permanent health insurance scheme providing long term disability
            cover for the Executive;

       (b)  private medical expenses insurance scheme providing cover for the
            Executive; and

       (c)  death in service insurance scheme providing life insurance cover
            equivalent to 4 times the Executive's basic salary.

       Details of the Company's current insurance schemes are available from the
       Company Secretary. The Company shall pay all premiums in respect of the
       schemes and may, in its absolute discretion, vary their terms and details
       from time to time.

9.4    OTHER BENEFITS

       Any other benefit provided to the Executive shall unless otherwise agreed
       in writing be at the discretion of the Company who may, at any time,
       withdraw or vary the terms of such benefit as it sees fit.

10.    HOLIDAYS

10.1   The Company's holiday year runs from 1 January to 31 December.

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10.2   In addition to public or bank holidays, the Executive is entitled to 25
       working days' paid holiday in each holiday year, to be taken at such time
       or times as are agreed with the Chief Executive Officer.

10.3   The Executive may not, without the consent of the Chief Executive Officer
       carry forward any unused part of the holiday entitlement to a subsequent
       holiday year. Except on termination of employment, no payment will be
       made in lieu of any unused holiday entitlement.

10.4   For the holiday year during which the Employment commences or terminates,
       the Executive's entitlement to holiday accrues on a pro rata basis for
       each complete month of the Employment during that holiday year.

10.5   On termination of the Employment the Executive shall be entitled to pay
       in lieu of any outstanding holiday entitlement and shall be required to
       repay to the Company any salary received for holiday taken in excess of
       his actual entitlement. The basis for calculating the payment and
       repayment shall be 1/365 of the Executive's annual basic salary for each
       day. For the purposes of the calculation of the payment and repayment the
       amount of the Executive's outstanding or overtaken holiday entitlement
       shall be grossed up as appropriate to the nearest half day to take
       account of any non working days falling within the Executive's normal
       working week.

10.6   The Company may require the Executive to take any outstanding accrued
       holiday during a period of notice of termination of the Employment.

11.    SICKNESS OR INJURY

11.1   If unable to perform the Duties due to sickness or injury the Executive
       shall report this fact as soon as possible on the first working day of
       incapacity to the Company Secretary, and provide, so far as practicable,
       an expected date of return to work.

11.2   To be eligible for sick pay under sub-clause 11.3, the Executive must
       supply the Company with such certification of sickness or injury as the
       Company may require.

11.3   If the Executive shall be absent due to sickness or injury duly certified
       in accordance with the Company's requirements the Executive shall be paid
       full basic salary for up to 8 weeks' absence in any period of 12
       consecutive months and after that, subject to sub-clause 11.4, such
       remuneration, if any, as the Chief Executive Officer shall determine from
       time to time.

11.4   Any remuneration paid under sub-clause 11.3 shall be inclusive of any
       Statutory Sick Pay to which the Executive is entitled or other benefits
       recoverable by the Executive (whether or not recovered) which may be

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       deducted from it.

11.5   Any outstanding or prospective entitlement to company sick pay in
       accordance with sub-clause 11.3, private medical insurance benefits or
       permanent health insurance benefits shall not prevent the Company from
       exercising its right to terminate the Employment in accordance with
       sub-clause 12.4 nor shall the Company be liable to compensate the
       Executive in respect of any such pay or benefit provided that the Company
       shall not exercise this right where this would deprive the Executive of
       any permanent health insurance benefit provided under this Agreement to
       which he would otherwise be entitled.

11.6   If the Executive's sickness, injury or other incapacity is caused by the
       negligence or breach of statutory duty of a third party and the Executive
       shall recover any damages or other compensation from such third party for
       the Executive's loss of earnings whilst incapacitated, the Executive
       shall repay to the Company the amount of any sick pay paid by the Company
       to the Executive under sub-clause 11.3 or, if less, the full amount of
       the damages or compensation received for loss of earnings by the
       Executive.

11.7   If at any time during the Employment, in the reasonable opinion of the
       Board, the Executive is unable to perform all or part of the Duties
       because of sickness or injury then the Executive shall, at the request
       and expense of the Company:

       (a)  consent to an examination by a doctor to be selected by the Company
            and approved by the Executive; and

       (b)  authorise this doctor to disclose to and discuss with the Company's
            medical adviser, or other nominated officer of the Company, the
            results of or any matter arising out of this examination.

11.8   The Company shall be entitled to rely on the reasonable opinion of any
       doctor engaged by the Company to examine the Executive under sub-clause
       11.7 as to the Executive's fitness for work. The Executive shall not be
       entitled to attend for work at any time when such doctor considers him to
       be unfit for work and shall not be entitled to receive any remuneration
       in excess of any sick pay to which he remains entitled under sub-clause
       11.3 during any such period.

12.    TERMINATION OF AND SUSPENSION FROM EMPLOYMENT

12.1   IMMEDIATE DISMISSAL

       The Company may by written notice terminate the Employment without notice
       or pay in lieu of notice if the Executive:

       (a)  commits a breach of the terms and conditions of this

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            Agreement amounting to gross misconduct;

       (b)  repeats or continues after a written warning any material breach of
            the terms and conditions of this agreement, including any failure to
            carry out the Duties efficiently, diligently or competently;

       (c)  commits any act of gross misconduct or is guilty of any conduct
            which may in the reasonable opinion of the Board, bring any Group
            Company into disrepute or is calculated or likely prejudicially to
            affect the interests of any Group Company, whether or not the
            conduct occurs during or in the context of the Employment;

       (d)  is convicted of any criminal offence punishable with 6 months' or
            more imprisonment (other than an offence under road traffic
            legislation in the United Kingdom or elsewhere for which he is not
            sentenced to any term of imprisonment whether immediate or
            suspended);

       (e)  commits any act of dishonesty relating to any Group Company, any of
            its employees or otherwise;

       (f)  becomes of unsound mind or a patient within the meaning of the
            Mental Health Act 1983 so that in the opinion of the Board he is
            unable to perform the Duties; or

       (g)

12.2   RETIREMENT

       The Employment shall automatically terminate when the Executive reaches
       the age of 65.

12.3   SUSPENSION

       In order to investigate a complaint against the Executive of misconduct
       the Company may suspend the Executive on full pay for so long as may be
       necessary to carry out a proper investigation and hold any appropriate
       disciplinary hearing.

12.4   DISMISSAL DUE TO SICKNESS OR INJURY

       (a)  Notwithstanding sub-clauses 9.3 and 11.3, if the Executive is
            incapable of performing the Duties due to sickness or injury for a
            period or periods aggregating at least 180 days in any period of 12
            months the Company may, by not less than 6 months' prior written
            notice given at any time whilst such incapacity continues, terminate
            the Employment.

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       (b)  Upon termination of the Employment under this sub-clause the
            Executive shall cease to be entitled to any payment under sub-clause
            11.3 or any other provision of this Agreement.

12.5   PAY IN LIEU

       On the service of notice to terminate the Employment by the Executive or
       the Company or at any time during the currency of such notice, the
       Company shall have the right to terminate the Employment with immediate
       effect by notifying the Executive in writing that the Employment is being
       terminated pursuant to this clause and paying to the Executive a sum
       equivalent to the Executive's basic salary (excluding bonus), pension
       contributions and an amount equal to the value of any benefits in kind
       for the unexpired portion of the Executive's contractual notice
       entitlement. The Company will pay the sum due and payable under this
       sub-clause subject to deduction of tax and national insurance
       contributions at source.

12.6   EFFECT OF TERMINATION

       (a)  On the Termination Date or (if earlier) at any time after notice is
            given by the Company or the Executive to terminate the Employment,
            the Executive shall, at the request of the Board:

            (i)     resign (without prejudice to any claims which he may have
                    against any Group Company arising out of the Employment or
                    its termination) from all and any offices which he may hold
                    as a director of any Group Company and from all other
                    appointments or offices which he holds as nominee or
                    representative of any Group Company; and

            (ii)    transfer without payment to the Company or as the Company
                    may direct any shares held by him for the purposes only of
                    fulfilling any requirement in the Company's articles of
                    association that a director holds shares in the Company and
                    any shares in any Group Company held by him on trust for the
                    Company or any Group Company.

       (b)  If the Executive should fail to comply with any obligation under
            sub-clause (a) within 7 days of the Company's request, the Company
            is irrevocably authorised to appoint some person in his name and on
            his behalf to sign any documents or do any things necessary or
            requisite to effect such resignation(s) and/or transfer(s).

13.    OBLIGATIONS DURING EMPLOYMENT

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13.1   INVENTIONS

       (a)  The Executive shall promptly disclose to the Company full details
            including, without limitation, any and all computer programs,
            photographs, plans, records, drawings and models, of any know-how,
            technique, process, improvement, invention or discovery (whether
            patentable or not) which the Executive (whether alone or with any
            other person) makes, conceives, creates, develops, writes, devises
            or acquires at any time during the Employment and which relates or
            which could relate, directly or indirectly, to the Businesses.

       (b)  If the know-how, technique, process, improvement, invention or
            discovery is a Company Invention, the Executive shall (to the extent
            that it does not automatically vest in the Company by operation of
            law) hold it in trust for the Company and, at the request and
            expense of the Company, do all things necessary or desirable
            (including entering into any agreement that the Company reasonably
            requires) to enable the Company or its nominee to obtain for itself
            the full benefit of and to secure patent or other appropriate forms
            of protection for the Company Invention throughout the world.

       (c)  If the know-how, technique, process, improvement, invention or
            discovery is not a Company Invention, the Company shall treat all
            information disclosed to it by the Executive as confidential
            property of the Executive.

       (d)  The patenting and exploitation of any Company Invention shall be at
            the sole discretion of the Company.

13.2   COPYRIGHT ETC

       (a)  The Executive shall promptly disclose to the Company all works
            including, without limitation, all copyright works or designs
            originated, conceived, developed, written or made by the Executive
            alone or with others during the Employment which relate, or could
            relate, to the Businesses and shall (to the extent that they do not
            automatically vest in the Company by operation of law) hold them in
            trust for the Company until such rights have been fully and
            absolutely vested in the Company.

       (b)  The Executive assigns to the Company by way of present and future
            assignment (to the extent not already vested in the Company by
            operation of law) all copyright, design rights and other proprietary
            rights (if any) for their full terms throughout the world in respect
            of all copyright works and designs originated, conceived, written,
            developed or made by the Executive alone or with others during the
            Employment which

                                       15
<Page>

            relate, or could relate, to the Businesses.

       (c)  The Executive irrevocably and unconditionally waives in favour of
            the Company any and all moral rights conferred on the Executive by
            Chapter IV, Part I, Copyright Designs and Patents Act 1988 and any
            other moral rights provided for under the laws now or in future in
            force in any part of the world for any work the rights in which are
            vested in the Company whether by sub-clause (b) or otherwise.

       (d)  The Executive shall, at the request and expense of the Company, do
            all things necessary or desirable (including entering into any
            agreement that the Company reasonably requires to vest the rights
            referred to in this clause in the Company) to substantiate the
            rights of the Company under sub-clauses (b) and (c).

13.3   POWER OF ATTORNEY

       The Executive irrevocably appoints the Company as his attorney in his
       name and on his behalf to execute documents, to use his name and to do
       all things which may be necessary or desirable for the Company to obtain
       for itself or its nominee the full benefit of the provisions of
       sub-clause 13.1(b) and 13.2(b) and a certificate in writing signed by any
       director or the Company Secretary that any instrument or act falls within
       the authority conferred by this clause shall be conclusive evidence that
       such is the case so far as any third party is concerned.

13.4   CONFLICT OF INTEREST

       (a)  During the Employment, the Executive shall not:

            (i)     directly or indirectly disclose to any person or use other
                    than for any legitimate purposes of any Group Company any
                    Confidential Information;

            (ii)    without the Board's prior written permission hold any
                    Material Interest in any person which:

                    (A)  is or shall be wholly or partly in competition with any
                         of the Businesses;

                    (B)  impairs or might reasonably be thought by the Company
                         to impair the Executive's ability to act at all times
                         in the best interests of any Group Company; or

                    (C)  requires or might reasonably be thought by the Company
                         to require the Executive to disclose or make use of any
                         Confidential Information in

                                       16
<Page>

                         order properly to discharge the Duties to or to further
                         the Executive's interest in that person;

            (iii)   at any time (whether during or outside normal working hours)
                    take any preparatory steps to become engaged or interested
                    in any capacity whatsoever in any business or venture which
                    is in or is intended to enter into competition with any of
                    the Businesses;

            (iv)    at any time make any untrue or misleading statement in
                    relation to any Group Company;

            (v)     carry out any public or private work other than the Duties
                    (whether for profit or otherwise and whether during or
                    outside normal working hours) except with the prior written
                    permission of the Board; or

            (vi)    directly or indirectly receive or obtain in respect of any
                    goods or services sold or purchased or other business
                    transacted (whether or not by the Executive) by or on behalf
                    of any Group Company any discount, rebate, commission or
                    other inducement (whether in cash or in kind) which is not
                    authorised by any Company rules or guidelines from time to
                    time and if the Executive or any person in which the
                    Executive holds any Material Interest shall obtain any such
                    discount, rebate, commission or inducement, the Executive
                    shall immediately account to the Company for the amount so
                    received.

       (b)  The Executive shall, at any time during the Employment or following
            its termination, at the request of the Company or any Group Company
            return to the relevant Group Company or, at the relevant Group
            Company's request, shall destroy:

            (i)     any documents, drawings, designs, computer files or
                    software, visual or audio tapes or other materials
                    containing information (including, without limitation,
                    Confidential Information) relating to the Company or any
                    Group Company's business created by, in the possession of or
                    under the control of the Executive; and

            (ii)    any other property of the Company or any Group Company in
                    his possession or under his control.

       (c)  The Executive shall not make or keep or permit any person to make or
            keep on his behalf any copies or extracts of the items referred to
            in sub-clause (b) (i) in any medium or form.

                                       17
<Page>

14.    OBLIGATIONS AFTER EMPLOYMENT

14.1   The Executive shall not within the Restricted Area directly or indirectly
       for the period of 9 months after the Termination Date be engaged on his
       own account or in the capacity of employee, officer, consultant, adviser,
       partner, principal or agent in or hold any Restricted Shareholding in any
       company which carries on any business or venture which:

       (a)  is or is about to be in competition with any of the Businesses with
            which the Executive has been concerned or involved to any material
            extent during the 12 months preceding the Termination Date; or in
            relation to which the Executive at the Termination Date possesses
            Confidential Information; or

       (b)  requires or might reasonably be thought by the Company to require
            the Executive to disclose or make use of any Confidential
            Information in order properly to discharge the Executive's duties to
            or to further the Executive's interest in that business or venture.

14.2   The Executive shall not directly or indirectly, whether on the
       Executive's own behalf or on behalf of another person:

       (a)  for the period of 12 months after the Termination Date:

            (i)     accept orders for any Restricted Products or Restricted
                    Services from any Customer; or

            (ii)    accept orders for any Restricted Proposed Products or
                    Restricted Proposed Services from any Customer;

       (b)  for the period of 12 months after the Termination Date accept the
            supply by any Supplier of Restricted Supplies;

       (c)  for the period of 12 months after the Termination Date:

            (i)     seek, canvass or solicit any business, orders or custom for
                    any Restricted Products or Restricted Services from any
                    Customer;

            (ii)    seek, canvass or solicit any business, orders or custom for
                    any Restricted Proposed Products or Restricted Proposed
                    Services from any Customer;

            (iii)   solicit or entice away or seek to entice away from any Group
                    Company any person who is and was at the Termination Date or
                    during the period of 12 months preceding the Termination
                    Date, employed or engaged by any Group Company in any of the
                    Businesses in a

                                       18
<Page>

                    senior managerial, scientific, technical, supervisory, sales
                    or marketing capacity and was a person with whom the
                    Executive dealt in the course of the Duties and who by
                    reason of such employment or engagement is likely to have
                    knowledge of any trade secrets or Confidential Information
                    of the Company or any Group Company;

       (d)  at any time after the Termination Date:

            (i)     induce or seek to induce by any means involving the
                    disclosure or use of Confidential Information any Customer
                    or Supplier to cease dealing with the Company or any Group
                    Company or to restrict or vary the terms upon which it deals
                    with the relevant Group Company;

            (ii)    be held out or represented by the Executive or any other
                    person, as being in any way connected with or interested in
                    any Group Company; or

            (iii)   disclose to any person, or make use of any Confidential
                    Information.

14.3   UNDERTAKINGS

       The Executive has given the undertakings contained in clause 14 to the
       Company as trustee for itself and for each Group Company in the business
       of which the Executive shall be involved or concerned to a material
       extent during the Employment. The Executive will at the request and cost
       of the Company enter into direct undertakings with any such Group Company
       which correspond to the undertakings in clause 14.

14.4   LEGAL ADVICE

       The undertakings contained in clause 14 are entered into by the Company
       and the Executive after having been separately legally advised.

                                       19
<Page>

15.    DISCIPLINARY AND GRIEVANCE PROCEDURE

15.1   There are no specific disciplinary rules or procedures applicable to the
       Executive. Any matters concerning the Executive's unsatisfactory conduct
       or performance will be dealt with by the Chief Executive Officer. An
       appeal against any disciplinary decision should be made by the Executive
       in writing to the Board of Visible Genetics Inc, whose decision will be
       final.

15.2   If the Executive has any grievance relating to his Employment (other than
       one relating to a disciplinary decision) he should refer such grievance
       to the Chief Executive Officer and if the grievance is not resolved by
       discussion with him it will be referred for resolution to the Board of
       Visible Genetics Inc, whose decision shall be final.

16.    COLLECTIVE AGREEMENTS

       There are no collective agreements which affect the terms and conditions
       of the Executive's employment.

17.    DEDUCTIONS

       The Executive consents to the deduction at any time from any salary or
       other sum due from the Company to the Executive including any payment on
       termination of employment, of any sum owed by the Executive to the
       Company.

18.    ENTIRE AGREEMENT

       This Agreement (together with the letter of even date from the Company to
       the Executive) sets out the entire agreement and understanding between
       the parties and supersedes all prior agreements, understandings or
       arrangements (oral or written) in respect of the employment or engagement
       of the Executive by the Company. No purported variation of this Agreement
       shall be effective unless it is in writing and signed by or on behalf of
       each of the parties.

19.    THIRD PARTIES

       Unless expressly provided in this Agreement, no term of this Agreement is
       enforceable pursuant to the Contracts (Rights of Third Parties) Act 1999
       by any person who is not a party to it.

20.    DATA PROTECTION

       The Executive consents to the holding and processing by the Company or
       any other Group Company of personal data (including, where appropriate,
       sensitive personal data) relating to the Executive for the purposes of
       personnel or pensions administration, employee

                                       20
<Page>

       management or compliance with any laws or regulations applicable to the
       Company or any Group Company or its or their business.

21.    RELEASES AND WAIVERS.

21.1   The Company may, in whole or in part, release, compound, compromise,
       waive or postpone, in its absolute discretion, any liability owed to it
       or right granted to it in this Agreement by the Executive without in any
       way prejudicing or affecting its rights in respect of any part of that
       liability or any other liability or right not so released, compounded,
       compromised, waived or postponed.

21.2   No single or partial exercise, or failure or delay in exercising any
       right, power or remedy by the Company shall constitute a waiver by it of,
       or impair or preclude any further exercise of, that or any right, power
       or remedy arising under this Agreement or otherwise.

22.    NOTICES

22.1   Any notice to a party under this Agreement shall be in writing signed by
       or on behalf of the party giving it and shall, unless delivered to a
       party personally, be hand delivered, or sent by prepaid first class post
       or facsimile, with a confirmatory copy sent by prepaid first class post
       to, in the case of the Executive, the Executive's last known residential
       address or, in the case of the Company, the Human Resources Department,
       Visible Genetics Corporation, 25 Crestridge Drive, Suite 200, Suwanee,
       Georgia, USA 30024.

22.2   A notice shall be deemed to have been served:

       (a)  at the time of delivery if delivered personally to a party or to the
            specified address;

       (b)  on the second working day after posting by first class prepaid post;
            or

       (c)  2 hours after transmission if served by facsimile on a business day
            prior to 3pm or in any other case at 10 am on the business day after
            the date of despatch.

23.    GOVERNING LAW AND JURISDICTION

23.1   This Agreement shall be governed by and construed in accordance with
       English law.

23.2   Each of the parties irrevocably submits for all purposes in connection
       with this Agreement to the exclusive jurisdiction of the English courts.

IN WITNESS this Deed has been executed on the date appearing at the head of
page 1.

                                       21
<Page>

                                   SCHEDULE 1

                                     BONUSES

1.     For the period from 13 September 2001 until 12 September 2002, the
       Executive shall be eligible to receive a guaranteed bonus payment
       equivalent to 40% of his base salary of L137,500. The bonus shall become
       payable on 12 September 2002 and shall be paid subject to the deduction
       of Income Tax and National Insurance Contributions as appropriate.

2.     For the period 13 September 2002 until 31 December 2002, the Executive
       shall be eligible to receive a guaranteed bonus equivalent to 40% of his
       base monthly salary received during this period. The bonus shall become
       payable on 31 December 2002 and shall be paid subject to the deduction of
       Income Tax and National Insurance Contributions as appropriate.

3.     Thereafter, the Executive shall be eligible to participate in the
       Executive Bonus Plan operated by the Company and/or Visible Genetics Inc
       which will be introduced with effect from 1 January 2003. The level of
       bonus will be based on the successful achievement of both individual and
       corporate objectives, the details of which will be agreed in writing with
       the Executive on or before 1 January 2003

4.     In order to be eligible to receive any bonus payment under the terms of
       this Schedule, the Executive must have been in employment throughout the
       period in question and remain in employment on the date the bonus becomes
       payable.

                                       22
<Page>

EXECUTED as a DEED                       )
by BRENDAN LARDER                        )
in the presence of:                      )

SIGNATURE OF WITNESS:

NAME:

ADDRESS:

OCCUPATION:

EXECUTED as a DEED                       )
(but not delivered until the date        )
appearing at the head of page 1)         )
by VISIBLE GENETICS UK LIMITED           )
acting by:                               )

                                         Director

                                         Director/Secretary

                                       23<Page>

                                                                   EXHIBIT 10.35

THIS DEED is made the 12th day of September 2001.

BETWEEN

TIBOTEC-VIRCO N.V. whose registered address is at Intercity Business Park, Gen.
De Wittelen L11B , 2800 Mechelen, Belgium (hereinafter referred to as "TVNV");
and

VIRCO UK LIMITED (No. 03348588) whose registered address is at Cartwright and
Company, 106 High Street, Stevenege, Hertfordshire SGI 3DW England (hereinafter
referred to as Virco); and

VISIBLE GENETICS UK LTD (No. 04076100) whose registered address is at 20-22
Bedford Row, London, WCIR 4JS (hereinafter referred to as "VG UK"); and

VISIBLE GENETICS INC., whose registered address is at 700 Bay Street, Suite 1000
Toronto Canada M5G 1Z6 (hereinafter referred to as "VGI")

WHEREAS

A.   Virco wishes to sell certain Assets set out in Schedule A and VG UK wishes
     to acquire the said Assets from Virco. Virco shall retain certain other
     assets ("Excluded Assets") set out in Schedule B.

B.   VG UK wishes to acquire certain Expensed Items as set out in Schedule C and
     Virco wishes to sell such Expensed Items to VG UK.

C.   VG UK wishes to assume certain specific liabilities of Virco in relation to
     the Lease limited to those that relate to the period following the
     assignment of the Lease and that Virco will indemnify VG UK in respect of
     the liabilities to be acquired by VG UK that relate to the period prior to
     the assignment of the Lease.

D.   The Parties intend that the employees of Virco shall transfer to VG UK on
     the Completion Date in accordance with the Transfer of Undertakings for the
     Protection of Employment Regulations 1981 (as amended) (the TUPE
     Regulations), and subject to the terms and conditions set out in this deed,
     and that Virco may from time to time call upon the services of such
     employees to assist it in audit or regulatory matters.

E.   The Parties accept that the transaction described herein represents
     transfer of employees and assets between the companies who are in
     competition with each other in the same market and that the employees will
     be involved in research and development of products that may compete with
     Virco's and TVNV's current or future product portfolio.

<Page>

IT IS AGREED AS FOLLOWS: -

1.       DEFINITIONS

     1.1  In this deed including the Schedules, the following words and
          expressions have the following meanings:

"Assets"                                    means the assets set out in Schedule
                                            A.

"Completion Date"                           means the date on which Virco
                                            shall sell certain assets, grant a
                                            license to occupy to VG UK, and the
                                            employees of Virco shall transfer to
                                            VG UK.

"Excluded Assets"                           means the assets set out in Schedule
                                            B which shall remain the property of
                                            Virco and may be dealt with in any
                                            manner Virco sees fit upon the
                                            proviso that the Excluded Assets are
                                            removed from the Lease Premises
                                            prior to the Completion Date.

"Expensed Items"                            means the items which have been
                                            expensed during the current fiscal
                                            year as set out in Schedule C.

"Landlord"                                  means the Master Fellows and
                                            Scholars of the Holy and Undivided
                                            Trinity within the Town and
                                            University of Cambridge of King
                                            Henry the Eighth's Foundation,
                                            landlord under the Lease.

"Lease"                                     means the lease dated 19th January
                                            1999 by the Master Fellows and
                                            Scholars of the Holy and Undivided
                                            Trinity within the Town and
                                            University of Cambridge of King
                                            Henry the Eighth's Foundation to
                                            Virco, as lessee, and TVNV, as
                                            surety, of Trinity College Cambridge
                                            of Unit 184, Phase 3 Cambridge
                                            Science Park, Milton Road, Cambridge
                                            England CB4 0GA with associated
                                            rights and obligations, including
                                            but not limited to the bank
                                            guarantee to Trinity College.

"Premises"                                  has the meaning attributed to that
                                            term under the Lease.

         1.2      The clause and paragraph headings are for ease of reference
                  only and are not to be taken into account in the
                  interpretation of the provisions to which they refer.

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         1.3      Unless the context otherwise requires, references:

                  1.3.1    to numbered clauses and Schedules are references to
                           the relevant clause in, or Schedule to, this deed;
                           and

                  1.3.2    to a numbered paragraph in a Schedule are references
                           to the relevant paragraph in that Schedule.

         1.4      Words denoting the singular include the plural meaning and
                  vice versa.

         1.5      Words importing one gender include both genders.

2.   DEED FOR SALE AND PURCHASE, LICENSE TO OCCUPY AND FOR ASSIGNMENT OF LEASE

         2.1      Subject to the terms and conditions of this deed Virco shall:-

                  2.1.1    on the Completion Date sell to VG UK with full title
                           guarantee and VG UK shall purchase the Assets and
                           Expensed Items owned by Virco as set out in Schedules
                           A and C hereto; but excluding the Excluded Assets.

                  2.1.2    on or after the 5th October 2001 with full title
                           guarantee assign, and VG UK shall assume obligations
                           under, the Lease, including any goodwill attaching to
                           the Premises from Virco's business to VG UK, as of
                           the date of assignment, to hold the Premises to VG UK
                           for all the residue now unexpired of the term of
                           years granted by the Lease subject to payment of the
                           rent reserved by and the performance and observance
                           of the covenants on the part of the lessee and the
                           conditions contained in the Lease.

                  2.1.3    Upon the Completion Date grant a license to VG UK to
                           occupy the Premises upon the terms set out in
                           sub-clauses 2.4 to 2.7.

         2.2      VG UK liability for the assignment of the Lease shall commence
                  upon the date of assignment, and Virco and TVNV shall
                  otherwise indemnify VG UK in respect of any liabilities
                  acquired under the Lease to the extent that they relate to the
                  period prior to date of assignment. Copies of the Lease have
                  been supplied to VG UK, which shall be deemed to purchase with
                  full knowledge of its contents and shall raise no requisition,
                  enquiry or objection in relation to it.

         2.3      VG UK agrees to pay to Virco any and all advance payments made
                  by Virco in relation to the Lease which apply to the period
                  after the date of assignment in cases where such payments are
                  repaid by the Landlord to VG UK. VG UK hereby agrees that such
                  monies shall be payable on demand.

         2.4      VG UK shall be entitled to occupy the Premises at its entire
                  risk from the date hereof until the date of completion of the
                  assignment of the Premises between

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                  Virco and VG UK ("the Assignment") (or earlier as provided
                  herein) but as licensee only and subject to VG UK being liable
                  to pay all outgoings in respect of the Premises from the date
                  hereof and subject to VG UK paying the license fee referred to
                  in clause 3.1.3 below.

         2.5      VG UK shall be bound by the same exceptions and reservations
                  and shall observe and perform the covenants and obligations
                  contained in the Lease as if the Assignment had been completed
                  and shall indemnify Virco against any expense cost loss or
                  liability incurred or suffered by Virco due to any failure by
                  VG UK to observe and perform the obligations on the part of
                  the tenant contained in this clause 2 or as a result of VG UK
                  ceasing to exist or being subject to an insolvency or similar
                  event.

         2.6      If this deed becomes null and void (or if Virco's landlord for
                  the time being under the Lease fails to grant consent to the
                  Assignment in the form of a deed by 31 December 2001) VG UK
                  shall cease to occupy the Premises and shall remove from the
                  Premises VG UK's chattels and shall leave the Premises in good
                  repair and condition making good any damage caused to the
                  Premises in the removal of the chattels and any damage caused
                  thereto during the subsistence of the License to occupy as a
                  result of VG UK's acts or omissions.

         2.7      The parties agree to use their best endeavours to ensure that
                  the License to Assign is duly executed and delivered by the
                  Landlord on or about October 5, 2001. Upon reasonable written
                  request by VGI after October 5, 2001, Virco shall make
                  application to a court with jurisdiction for a declaration
                  that the Landlord is unreasonably delaying or withholding
                  consent to assignment of Lease. All reasonable costs
                  associated with such application shall be borne equally by VG
                  UK and Virco.

3.       PURCHASE CONSIDERATION

         3.1      The consideration for the sale of the Assets and Expensed
                  Items, the license to occupy and the assignment of the Lease
                  shall be the following: -

                  3.1.1    in relation to the Assets set out in Schedule A -
                           their net book value from the fixed asset register of
                           Virco as at 31 August 2001 stg (pound)553,117.38;

                  3.1.2    all items not classified as Assets or Excluded
                           Assets, as per Schedules A and B, shall be acquired
                           by VG UK for a total consideration of stg
                           (pound)15,487.50. This includes but is not limited To
                           all Expensed Items listed in Schedule C.

                  3.1.3    VG UK shall pay to Virco (or to Virco's landlord as
                           Virco shall direct) a sum equal to the rent reserved
                           from time to time under the Lease and all outgoings
                           in respect of the Premises by way of license fee
                           which shall be payable at the times and in the manner
                           specified in the Lease

<Page>

                  3.1.4    in relation to the assignment of the Lease (pound)1
                           and a covenant on the part of VG UK, upon the
                           CompletIon Date to pay the rent reserved by the Lease
                           and to observe and perform the covenants on the part
                           of the lessee and the conditions contained in the
                           Lease.

         3.2      The consideration shall be paid in sterling cash by VG UK to
                  Virco upon the Completion Date of the purchase in accordance
                  with Clause 4 below.

         3.3      The consideration set out above is exclusive of any applicable
                  value added tax, which VG UK may be additionally liable to pay
                  Virco.

         3.4      Nothing in this deed shall pass to VG UK, or shall be
                  construed as acceptance by VG UK of any liability, debt or
                  other obligation of Virco, other than as expressly set out in
                  this deed.

4.       THE COMPLETION DATE

         4.1      The parties hereby agree to use their best endeavours to
                  ensure that the Completion Date will occur by the 12th
                  September 2001.

         4.2      Upon the Completion Date, Virco shall deliver or procure
                  delivery to VG UK of:
                  a.       Physical possession of all the Assets and Expensed
                           Items capable of passing by delivery with the intent
                           that title in such Assets and Expensed Items shall
                           pass by and upon such delivery;
                  b.       Duly executed assignment of the Lease and other
                           documents in the agreed form necessary to assign the
                           Lease to VG UK;
                  c.       All personnel files for the Transferred Employees,
                           including all National Insurance PAYE records fully
                           completed in respect of the Transferred Employees
                           showing that all payments are up to date, and all
                           records required to be kept under the Working Time
                           Regulations 1998; and
                  d.       Vacant possession of the Premises.

         4.3      Against compliance by Virco and TVNV of their obligations
                  hereunder, upon the Completion Date, VG UK shall pay to Virco
                  in respect of the purchase consideration set out in Clause 3
                  above and except as described herein, Virco shall have no
                  further obligations in relation to the Assets, and Expensed
                  Items and Lease. Such payment shall be made by wire transfer
                  to the account of Virco UK Ltd, Account No. 50706965, Sort
                  Code 20-17-35, at Barclays Bank PLC, Chesterton Road,
                  Cambridge England.

5.       EMPLOYEES

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         5.1      The parties acknowledge and agree that the sale and purchase
                  pursuant to this deed will constitute a relevant transfer of
                  the employees listed on Schedule E (the "Transferred
                  Employees") for the purposes of the TUPE Regulations and that
                  it will not operate so as to terminate any of the contracts of
                  employment of the Transferred Employees and such contracts
                  shall be transferred to VG UK pursuant to the TUPE Regulations
                  with effect from the Completion Date and that from the
                  Completion Date Virco will no longer have any liability with
                  respect to the Transferred Employees, except as provided in
                  Clause 5.2 and 5.3.

         5.2      Virco and TVNV agree to fully to indemnify and keep
                  indemnified VG UK against all losses, damages, costs, actions,
                  awards, penalties, fines, proceedings, claims, demands,
                  liabilities (including without limitation any liability to
                  tax), and expenses (including without limitation, legal and
                  other professional fees and expenses) which VG UK may suffer,
                  sustain, incur, pay or be put to by reason or on account of or
                  arising from:

                  (1)      any claim or other legal recourse by all or any of
                           the Transferred Employees in respect of any fact or
                           matter concerning or arising from employment with
                           Virco prior to the Completion Date:

                  (2)      termination of any agents or contractors contract
                           with Virco

                  (3)      any act or omission done or omitted to be done by
                           Virco in relation to the Transferred Employees or any
                           other employee of Virco which by virtue of the TUPE
                           Regulations is deemed to be an act or omission of VG
                           UK;

                  (4)      without prejudice to sub-Clause (3) above, any claim
                           or demand or other legal recourse against VG UK by
                           any other person or agent or employee or contractor
                           of Virco who claims (whether correctly or not) that
                           VG UK has inherited liability from Virco in respect
                           of them by this deed; and

                  (5)      the employment or termination of employment of any
                           employee of Virco (other than the Transferred
                           Employees) whose employment is transferred to VG UK
                           by the TUPE Regulations.

         5.3      The parties agree that Brendan Larder and Sharon Kemp are
                  Transferred Employees for all purposes of this deed. Virco
                  agrees to waive the obligations of Brendan Larder and Sharon
                  Kemp under sub-clause 2.2 (the six-month notice period),
                  sub-clause 10.4, and the entirety of clause 12
                  (post-termination obligations) of the employment contracts
                  between Virco and each of Sharon Kemp and Brendan Larder.

         5.4      The Parties acknowledge that the Transferred Employees shall
                  be free of all restrictions to work for VG UK subject to the
                  following:

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                  5.4.1    VG UK agrees that the obligations of each of the
                           Transferred Employees towards Virco with respect to
                           Virco's confidential information shall remain valid
                           and in force for a period that is the lesser of five
                           years or as described in their original contract, and
                           that each such employee shall be prohibited in using
                           Virco's confidential information and confidential
                           materials for such period. The parties agree that the
                           provisions set out in clause 9 and subclauses 10.1,
                           10.2 and 10.3 of each of Brendan Larder's and Sharon
                           Kemp's Employment Contract and the provisions of
                           paragraphs 12, 13, 14 and 16 in the Virco Terms and
                           Conditions of Service of all other Transferred
                           Employees, which are reproduced in Schedule D,
                           continue to apply to each Transferred Employee for a
                           period of no greater than five years.

                  5.4.2    prior to the execution of this deed Brendan Larder
                           and Sharon Kemp shall execute a Letter attached as
                           Schedule F and each Transferred Employee shall
                           execute a Letter of Assurance confirming that they
                           will continue to abide by the terms of their contract
                           of employment with Virco UK Limited with respect to
                           Virco's confidential information and confidential
                           material, that these terms will survive the transfer
                           of their contract of employment to VG UK and that
                           they will not use the confidential materials for the
                           benefit of VG UK or its holding company.

                  For the avoidance of doubt the parties hereby agree that
                  notwithstanding anything to the contrary in their employment
                  contract with Virco the skills, knowledge and work experience
                  acquired by the Transferred Employees during their period of
                  employment with Virco shall not fall under the scope of this
                  clause 5.

                  5.4.3    prior to execution of this deed, VG UK shall provide
                           a Letter of Assurance that it has not received and
                           does not have in its possession any:

                           i.       reagents, biologicals (including but not
                                    limited to all human tissue and blood
                                    samples), biochemicals, laboratory notebooks
                                    and electronic information; and

                           ii.      hard copy or electronic format of
                                    experimental and production protocols, R & D
                                    project descriptions, software development
                                    projects including neural network
                                    development, algorithms on mutational
                                    patterns of HIV, HCV, HBV and other reports
                                    belonging to Virco. Such Letter of Assurance
                                    is attached as Schedule G.

                  5.4.4    from the Completion Date, Virco shall have, subject
                           to Clause 5.2 and all reasonable legal and regulatory
                           requirements, no further obligations to the
                           Transferred Employees.

<Page>

                  5.4.5    VG UK hereby agrees that Virco may from time to time
                           call upon the services of Morgan Hart and Gemma Young
                           to assist it in audit or regulatory matters. Such
                           assistance shall be limited in the case of Morgan
                           Hart to a maximum period of twelve days, which need
                           not be consecutive, commencing on the Completion Date
                           and ending on March 30, 2002. Such assistance shall
                           be limited in the case of Gemma Young to a maximum
                           period of three days, which need not be consecutive,
                           commencing at the Completion Date, and ending three
                           (3) months after the Completion Date. All costs and
                           expenses incurred by the employees, as a result of
                           such assistance given to Virco pursuant to the terms
                           of this Clause 5.5.5 shall be borne by Virco. For the
                           avoidance of doubt Virco shall pay Morgan Hart's
                           salary for the time period which he assists Virco.
                           For the avoidance of doubt VG UK further agrees that
                           Brendan Larder may present Virco data at the ICAAC
                           conference in September 2001.

         5.5      All salaries, business expenses, contractual bonuses and other
                  emoluments, including holiday pay, tax and national insurance
                  payments and contribution to retirement benefit schemes
                  relating to the Transferred Employees shall be borne by Virco
                  up to the Completion Date and all necessary apportionments
                  shall be made.

6.       SALE OF THE PARTIES HIV GENOTYPING ASSAY

In consideration of the mutual covenants and promises set out in this deed the
parties hereby agree as follows:

         6.1      VG UK will not offer clinical service laboratory activities in
                  Europe using the Virco HIV genotyping assay for a period of
                  three (3) years from the date of this deed.

         6.2      VG UK may offer clinical service laboratory activities based
                  on its HIV genotyping assay as currently available or future
                  developments on it.

7.       REPRESENTATIONS, WARRANTIES AND LIABILITIES

         7.1      All information contained in this deed and all other
                  information relating to the Assets, Expensed Items, license to
                  occupy, Lease or Transferred Employees given by Virco or its
                  representatives to VG UK or its representatives are true,
                  accurate and complete in every respect and there is no fact or
                  matter relating to the Assets, Expensed Items, license to
                  occupy, Lease or Transferred Employees which is known or ought
                  on reasonable enquiry to be known to Virco which has not been
                  disclosed or which renders any such matters or information
                  untrue, incomplete or

<Page>

                  misleading or the disclosure of which is material to be known
                  by a purchaser of the Assets, Expensed Items, Lease or
                  Transferred Employees.

         7.2      The Parties to this deed have full power and authority and
                  have taken all necessary corporate action to enable each
                  effectively to enter into and perform this deed and all deeds
                  entered into, or to be entered into, pursuant to the terms of
                  this deed, and such deeds when executed, will constitute
                  valid, binding and enforceable obligations on each in
                  accordance with their respective terms and, save with respect
                  to the consent of the Landlord in connection with the license
                  to occupy and the assignment of the Lease, each does not
                  require the consent, approval or authority of any other person
                  to enter into or perform its obligations under this deed and
                  each party's entry into and performance of this deed will not
                  constitute any breach of or default under any obligation
                  binding upon it, and it is not engaged in or threatened under
                  any litigation or arbitration proceedings which might have an
                  effect upon its capacity or ability to perform its obligations
                  under this deed.

         7.3      TITLE TO THE ASSETS AND EXPENSED ITEMS

                  7.3.1    Virco warrants the condition of the Assets and
                           Expensed Items on an "as is where is" basis and,
                           except as provided herein, does not warrant as to the
                           condition, fitness for purpose or any other warranty
                           implied under the Sale of Goods Act 1979 or the Sale
                           and Supply of Goods Act 1994 in respect of the Assets
                           or Expensed Items.

                  7.3.2    Virco has or will have at Completion Date good and
                           marketable title to and has in its possession and
                           under its control, all of the Assets and Expensed
                           Items which are sold free from any charge, lien,
                           encumbrance, equity, deed of hire or hire purchase or
                           for payment on deferred terms, bill of sale or any
                           obligation to pay any outstanding sums in respect of
                           them and no person other than Virco has or claims any
                           rights in relation to the Assets or Expensed Items or
                           any of them and the Assets or Expensed Items are not
                           subject to or potentially subject to any floating
                           charge or guarantee given by Virco or by any person
                           or company connected with Virco.

                  7.3.3    All documents which in any way affect the right,
                           title or interest of Virco in or to any of the Assets
                           and which attract stamp duty have been duly stamped
                           within the requisite period for stamping.

         7.4      TRANSFERRED EMPLOYEES

                  7.4.1    No person is employed or engaged by Virco at the
                           Premises (whether under a contract of service or
                           contract for services) other than the Transferred
                           Employees and the Transferred Employees are all
                           employed directly by Virco.

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                  7.4.2    Virco has disclosed copies of all service contracts
                           and contracts for services and full particulars of
                           the current terms of employment or engagement of all
                           Transferred Employees and all of such particulars are
                           true and accurate and complete in all respects.

                  7.4.3    In respect of each of the Transferred Employees,
                           Virco has performed all obligations and duties
                           required to be performed by it (and has settled all
                           outstanding claims and debts), whether arising under
                           contract, statute, at common law or in equity;

                  7.4.4    Except as described in this deed with respect to the
                           Schedule D employees, Virco has not offered any
                           contract of employment or contract for services to
                           any person (except to any of the Transferred
                           Employees).

                  7.4.5    Virco has not offered or agreed for any future
                           variation in any contract of employment in respect of
                           the Transferred Employees or any other person
                           employed by Virco in respect of whom liability is
                           deemed by the TUPE Regulations to pass to VG UK.

                  7.4.6    Virco has paid, or will make timely payment, to the
                           Inland Revenue and any other appropriate authority
                           all taxes, National Insurance contributions and other
                           levies due in respect of the Transferred Employees in
                           respect of their employment by Virco up to the
                           Completion Date.

                  7.4.7    There are no enquiries or investigations existing,
                           pending or threatened into Virco by the Equal
                           Opportunities Commission or the Commission for Racial
                           Equality or other similar authorities.

                  7.4.8    With the exception of Brendan Larder no Transferred
                           Employee has given or received notice terminating his
                           employment or engagement in connection with Virco.
                           There is no person previously employed by Virco who
                           now has or may in the future have a right to return
                           to work (whether for reasons connected with maternity
                           leave or absence by reason of illness or incapacity
                           or otherwise) or a right to be reinstated or
                           re-engaged by Virco or to any other compensation.

                  7.4.9    There are not in existence and Virco has not proposed
                           or is not proposing to introduce any bonus, profit
                           sharing scheme, share option scheme, share incentive
                           scheme or any other scheme or arrangement under which
                           the Transferred Employees or any of them are or is or
                           would be entitled to participate in the profits of
                           the Assets, Expensed Items, Lease or Employees.

                  7.4.10   There are no amounts outstanding or promised to any
                           of the Transferred Employees and no liability has
                           been incurred by Virco which remains undischarged for
                           breach of any contract of service or

<Page>

                           for services or for redundancy payments (including
                           protective awards) or for compensation under any
                           employment legislation or regulations or for wrongful
                           dismissal, unfair dismissal, equal pay, sex, race or
                           disability discrimination or otherwise and no order
                           has been made at any time for the reinstatement or
                           re-engagement of any of the Employees or any person
                           formerly employed or engaged.

                  7.4.11   Virco has complied with the Working Time Regulations
                           1998 in respect of the Transferred Employees and any
                           other person who provides services whom Virco has
                           regarded as its employee under such Regulations.

                  7.4.12   Virco is not engaged or involved in any dispute,
                           claim or legal proceedings (whether arising under
                           contract, common law, statute or in equity) with any
                           of the Transferred Employees nor with any other
                           person employed by Virco in respect of whom liability
                           is deemed to pass to VG UK by virtue of the TUPE
                           Regulations, and so far as Virco is aware there is no
                           likelihood of any such dispute, claim or proceedings
                           arising at any time.

                  7.4.13   There are no acts or omissions by Virco in relation
                           to any of the Transferred Employees, which could give
                           rise to a successful claim against Virco or VG UK.

                  7.4.14   Virco has not recognised any trade union, works/staff
                           councils or association of trade unions or any other
                           organisation of employees in respect of the
                           Transferred Employees or any of them. There is no
                           collective deed or other deed or arrangement (whether
                           in writing, or by custom and practice) with any trade
                           union, staff association, staff works council or
                           other organisation of employees in relation to Virco
                           and Virco is not involved or likely to be involved in
                           any industrial or trade dispute or negotiation with
                           any trade union or other employee organisation.

         7.5      Neither Virco nor any person for whose acts or omissions it
                  may be vicariously liable is engaged in or subject to any
                  civil, criminal or arbitration proceedings in relation to the
                  Assets, Expensed Items, license to occupy, Lease or
                  Transferred Employees or any of them and there are no such
                  proceedings pending or threatened by or against Virco or
                  against any such person and there are no facts or
                  circumstances likely to give rise to any such proceedings and
                  there are no judgements outstanding against Virco which affect
                  or might affect any of the Assets, Expensed Items, license to
                  occupy, Lease or Transferred Employees.

         7.6      Virco warrants that at the Completion Date it has removed its
                  confidential and proprietary information, its Excluded Assets,
                  and those Schedule A assets which are denoted as remaining
                  with Virco, from the Premises.

<Page>

         7.7      Virco warrants that to the best of its knowledge at date of
                  assignment there are no encumbrances nor knows of any
                  impediments which may effect the validity of the Lease or the
                  assignment of the same nor of any amendment to the Lease. For
                  the avoidance of doubt Virco and TVNV represents and warrants
                  that to the best of their knowledge, there is no legal
                  impediment to the Landlord granting the License to Assign the
                  Lease Premises on the date of Assignment.

         7.8      Except in respect of death or personal injury caused by
                  Virco's negligence, neither TVNV nor Virco shall be liable to
                  VG UK by reason of any representation (unless fraudulent or
                  negligent) or any implied warranties, condition or other term,
                  or any duty at common law, for any direct, special or
                  consequential loss or damage (whether loss of profit or
                  otherwise) costs, expenses or other claims for compensation
                  whatsoever (whether caused by the negligence of Virco, its
                  employees or agents or otherwise), arising out of the sale or
                  their use or resale by VG UK and the entire liability of Virco
                  under or in connection with the sale of the Assets and
                  Expensed Items shall not exceed the price of the said Assets
                  and Expensed Items, paid by VG UK to Virco.

         7.9      VG UK shall indemnify Virco against all claims, demands,
                  proceedings damages, costs and expenses raising out of or
                  incidental to its breach, non-observance or non-performance of
                  the covenants and conditions contained in the license to
                  occupy.

         7.10     VG UK shall indemnify Virco against all claims, demands,
                  proceedings damages, costs and expenses raising out of or
                  incidental to its breach, non-observance or non-performance of
                  the covenants and conditions contained in the Lease after the
                  Completion Date and Virco shall indemnify VG UK against all
                  claims, demands, proceedings damages, costs and expenses
                  raising out of or incidental to its breach, non-observance or
                  non performance of the covenants and conditions contained in
                  the Lease to the extent that they relate to the period prior
                  to the date of assignment if:

8.       RESCISSION

         Without prejudice to its other rights and remedies either party may
         rescind this deed forthwith by notice in writing to the other prior to
         the Completion Date if:

         8.1.1    any or all of the applicable regulatory and parent
                  shareholder/director approvals are not received; or

         8.1.2    there is any material misrepresentation of a material fact or
                  fraud in entering into this deed; or

         8.1.3    there is any material change in the ownership or control of
                  either party which is unacceptable to the other for any
                  reason; or

<Page>

         8.1.4    one of the parties makes any voluntary arrangement with its
                  creditors or becomes subject to an administration order; or

         8.1.5    one of the parties becomes insolvent or compounds with its
                  creditors or convenes a meeting to consider a resolution that
                  it be placed in liquidation (other than a solvent liquidation
                  for the purposes of amalgamation or reconstruction) or suffers
                  a petition to be presented that it be placed in liquidation or
                  has an administrative receiver, receiver or manager appointed
                  in respect of all or any of its assets or is adjudication
                  bankrupt, makes an assignment for the benefit of, or any
                  composition with, its creditors or takes advantage of any
                  insolvency act (or in each case the equivalent in any
                  jurisdiction); or

         8.1.6    one of the parties commits any remediable breach of any of the
                  terms or conditions of this deed including a failure to pay
                  pursuant to Clause 3 and fails to remedy the breach within 21
                  (twenty one) days; or

         8.1.7    the Lease is not assigned.

9.       PARENTAL GUARANTEES

         9.1      VGI hereby irrevocably and unconditionally guarantees to Virco
                  the due and punctual performance of each obligation of VG UK
                  to pay monies under this deed and also guarantees VG UK
                  performance of all other obligations hereunder and VGI hereby
                  agrees that if VG UK shall make any default in observing and
                  performing the said obligations in every such case VGI will
                  pay and make good to TVNV on demand all loses, damages and
                  expenses sustained by Virco in respect of all such matters VGI
                  shall not be discharged from or released from its obligations
                  under this clause 9.1 by any arrangement made between VG UK
                  and VGI and/or any third party.

         9.2      TVNV hereby irrevocably and unconditionally guarantees to VG
                  UK the due and punctual performance of each obligation of
                  Virco to pay monies under this deed and also guarantees Virco
                  performance of all other obligations hereunder and TVNV hereby
                  agrees that if Virco shall make any default in observing and
                  performing the said obligations in every such case TVNV will
                  pay and make good to VG UK on demand all loses, damages and
                  expenses sustained by VG UK in respect of all such matters
                  Virco shall not be discharged from or released from its
                  obligations under this clause 9.2 by any arrangement made
                  between TVNV and Virco and/or any third party.

10.      ANNOUNCEMENTS

     No announcement of any kind shall be made in respect of the subject matter
     of this deed except as specifically agreed between Virco and VG UK. Any
     announcement by either party shall in any event be issued only after prior
     consultation with the other

<Page>

     and the parties shall make best efforts to agree upon the text of the
     announcement within five (5) working days of the request. The provisions of
     this clause 10 shall not apply to disclosures or announcements that are
     made pursuant to law or regulation.

11.      COSTS

     All expenses incurred by or on behalf of the parties, including all fees of
     agents, solicitors, accountants, employed by either of the parties in
     connection with the negotiation, preparation and execution of this deed
     shall be borne solely by the party which incurred them.

12.      NOTICES

     Any notice or other communication given pursuant to or made under or in
     connection with the matters contemplated by this deed shall be in writing
     and shall be delivered by courier, sent by registered post or sent by
     facsimile to the address or facsimile number of the recipient set out below
     or as specified by the recipient from time to time. Notices sent by e-mail
     or facsimile shall not be valid to themselves and must be confirmed in hard
     copy form by courier or by registered post.

                  Notices to Virco or to TVNV  to:
                           C/O Tibotec-Virco N.V
                           Intercity Business Park,
                           Gen. De Wittelan L11B 4,
                           2800 Mechelen,
                           Belgium          Attention: Paul Stoffels

                  Notices to VGI or VG UK:
                           C/O Visible Genetics Inc.
                           700 Bay Street, Suite 1000
                           Toronto, Ontario
                           Canada M5G 1Z6   Attention: General Counsel

     Any notice given pursuant to this clause shall be deemed to have been
     received: (a) if delivered by courier, at the time of delivery; or (b) if
     sent by post; where posted in the country of the addressee, on the second
     working day following the day of posting; and where posted in any other
     country, on the fifth working day following the day of posting.

13.      ENTIRE DEED AND SCHEDULES

         13.1     This deed and the Schedules constitute the entire deed and
                  understanding between the parties with respect to all matters
                  which are referred to.

         13.2     The Schedules form part of this deed.

<Page>

         13.3     This deed binds each party's successors and assigns.

14.      INVALIDITY

     If any term or provision in this deed shall in whole or in part be held to
     any extent to be illegal or unenforceable under any enactment or rule of
     law, that term or provision or part shall to that extent be deemed not to
     form part of this deed and the enforceability of the remainder of this deed
     shall not be affected.

15.      PROPER LAW

     The construction, validity and performance of this deed shall be governed
     by the laws of England.

16.      RIGHTS OF THIRD PARTIES

     A person who is not a party to this deed may not enforce any of its terms
     under the Contracts (Rights of Third Parties) Act 1999. Notwithstanding any
     term of this deed, the consent of any third party is not required for any
     variation (including any release or compromise of any liability under) or
     termination of this deed.

17.      COUNTERPARTS

This deed may be executed in any number of counterparts and by facsimile and by
the parties on separate counterparts, each of which when so executed shall be an
original of this deed, and all of which shall together constitute one and the
same instrument. Complete sets of counterparts shall be lodged with each party.

<Page>

EXECUTED BY THE PARTIES AS A DEED

Common Seal of TIBOTEC-VIRCO N.V.
was hereunto
affixed in the presence of :

Director:____________________________

Director/Secretary:__________________

Date: _______________________________

Common Seal of VIRCO UK LTD.
was hereunto
affixed in the presence of:

Director_____________________________

Director/Secretary:__________________

Date: _______________________________

Common Seal of VISIBLE GENETICS UK LTD
was hereunto
affixed in the presence of:

Director_____________________________

Director/Secretary:__________________

Date: _______________________________

Common Seal of VISIBLE GENETICS INC.
was hereunto
affixed in the presence of:

Director_____________________________

Director/Secretary:__________________

Date: _______________________________

                                Page 16 of 16

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