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                                                                   EXHIBIT 10.28

                              VISIBLE GENETICS INC.

                          REGISTRATION RIGHTS AGREEMENT

          THIS REGISTRATION RIGHTS AGREEMENT ("REGISTRATION RIGHTS AGREEMENT")
is entered into as of December 24, 2001, by and among VISIBLE GENETICS INC., an
Ontario corporation (the "COMPANY"), and the purchasers of common shares,
without par value, of the Company (the "SHARES") who are identified as
"Investors" in that certain Common Shares Purchase Agreement of even date
herewith (the "PURCHASE AGREEMENT") and whose signatures appear on the execution
pages hereof. The purchasers of the Shares shall be referred to hereinafter
collectively as the "Investors" and each individually as an "Investor."

                                    RECITALS

          WHEREAS, the Company proposes to sell the Shares pursuant to the
Purchase Agreement;

          WHEREAS, as a condition of entering into the Purchase Agreement, the
Investors have requested that the Company extend to them certain registration
rights and other rights as set forth below.

          NOW, THEREFORE, in consideration of the mutual promises,
representations, warranties, covenants and conditions set forth in this
Registration Rights Agreement and in the Purchase Agreement, the parties
mutually agree as follows:

          1.   DEFINITIONS

          As used in this Registration Rights Agreement the following terms
shall have the following respective meanings:

          "CLOSING" has the meaning ascribed thereto under the Purchase
Agreement.

          "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

          "FORM F-3" means such form under the Securities Act as in effect on
the date hereof or any successor registration form under the Securities Act
subsequently adopted by the SEC which permits inclusion or incorporation of
substantial information by reference to other documents filed by the Company
with the SEC.

          "HOLDER" means any Investor or assignee permitted in accordance with
Section 5.3 hereof owning of record Registrable Securities that have not been
sold to the public.

          "REGISTER," "REGISTERED," and "REGISTRATION" refer to a registration
effected by preparing and filing a registration statement in compliance with the
Securities Act, and the declaration or ordering of effectiveness of such
registration statement or document.

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          "REGISTRABLE SECURITIES" means the Shares or any common shares of the
Company which may be issued with respect to or in substitution for such Shares
by reason of dividend, stock split, combination of shares, recapitalization,
reclassification or reorganization.

          "REGISTRATION STATEMENT" means any registration statement of the
Company that covers the Shares and lists holders thereof as selling shareholders
pursuant to the provisions of this Registration Rights Agreement, including the
Prospectus included therein, all amendments and supplements thereto (including
post-effective amendments) and all exhibits and material incorporated by
reference or deemed to be incorporated by reference therein.

          "SEC" or "COMMISSION" means the Securities and Exchange Commission.

          "SECURITIES ACT" means the Securities Act of 1933, as amended.

          2.   REGISTRATION OF SHARES

               2.1  REGISTRATION STATEMENT. Within 45 calendar days after the
date hereof, the Company shall prepare and file with the Commission a
Registration Statement on Form F-3 pursuant to Rule 415 under the Securities Act
covering the resale of the Registrable Securities. In addition, the Company
shall:

                    (a)  Use its best efforts to cause such Registration
Statement to become effective as promptly as possible, and in any event within
120 calendar days after the date hereof, and to keep such Registration Statement
continuously effective until the earlier of (i) such time as all of the
Registrable Securities covered by the Registration Statement have been sold or
(ii) such time as all Registrable Securities covered by the Registration
Statement may be sold during any 90 day period without registration under the
Securities Act pursuant to the exemptions provided by Rule 144 under the
Securities Act (the "REGISTRATION PERIOD"). Notwithstanding anything herein to
the contrary, the Company may take, or refrain from taking, any action that
results in Holders not being able to sell such Registrable Securities pursuant
to applicable securities laws during the Registration Period (including, but not
limited to, refraining from amending or supplementing the Registration
Statement) and/or suspend the effectiveness of the Registration Statement if
updating or otherwise amending the Registration Statement, or taking or
refraining from taking any other action and/or maintaining the effectiveness of
the Registration Statement would require the Company to disclose any material
corporate development which disclosure may have a materially adverse affect on
the Company ("SUSPENSION RIGHT"). The Suspension Right may not extend for more
than 45 consecutive days for any single suspension event, and may not be
exercised more than once during any twelve-month period.

                    (b)  Prepare and file with the SEC such pre-effective and
post-effective amendments and supplements to such Registration Statement and the
prospectus used in connection with such Registration Statement as may be
necessary to cause the Registration Statement to become effective, to keep the
Registration Statement continuously effective during the Registration Period and
not misleading, and as may otherwise be required or applicable

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under, and to comply with the provisions of, the Securities Act with respect to
the disposition of all securities covered by such Registration Statement during
the Registration Period.

                    (c)  Furnish to the Holders such number of copies of a
prospectus, including a preliminary prospectus, and each amendment or supplement
thereto, in conformity with the requirements of the Securities Act, and such
other documents as they may reasonably request in order to facilitate the
disposition of Registrable Securities owned by them, and correct any deficiency
between the preliminary prospectus and the final prospectus, and pay any
expenses associated with the recirculation of the final prospectus following the
correction of such deficiency unless such deficiency is primarily the result of
information provided by one or more Holders or one or more underwriters or any
of their respective representatives, in which event the Holders whose shares are
included in such Registration Statement shall bear the expense of recirculation.

                    (d)  Use its best efforts to register and qualify the
securities covered by such Registration Statement under such other securities or
Blue Sky laws of such jurisdictions as shall be necessary to permit the sale of
the Registrable Securities; provided, however, that the Company shall not be
required to register or qualify any securities in any jurisdiction in which the
Company would be required as a result of such registration or qualification to
(i) execute a general consent to service of process which it would not otherwise
be required to execute; (ii) qualify generally to do business where it would not
otherwise be required to so qualify; or (iii) subject itself to taxation where
it would not otherwise be subject to taxation.

                    (e)  Notify promptly the Holders of Registrable Securities
to be sold (and in any event within three (3) business days after) and (if
requested by any such Person) confirm such notice in writing, (i) (A) when a
prospectus or any prospectus supplement or post-effective amendment is proposed
to be filed, and, (B) with respect to a Registration Statement or any
post-effective amendment, when the same has become effective, (ii) of any
request by the SEC or any other federal, Canadian, state or provincial
governmental authority for amendments or supplements to a Registration Statement
or related prospectus or for additional information, (iii) of the issuance by
the SEC of any stop order suspending the effectiveness of a Registration
Statement or the initiation of any proceedings for that purpose, (iv) of the
receipt by the Company of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction, or the initiation or threatening of any
proceeding for such purpose, and (v) of the happening of any event that makes
any statement made in such Registration Statement or related prospectus or any
document incorporated or deemed to be incorporated therein by reference untrue
in any material respect or that requires the making of any changes in such
Registration Statement, prospectus or documents so that, in the case of the
Registration Statement, it will not contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, not misleading, and that in the case
of the prospectus, it will not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading.

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                    (f)  Use its reasonable best efforts to avoid the issuance
of, or, if issued, obtain the withdrawal of, any order suspending the
effectiveness of a Registration Statement, or the lifting of any suspension of
the qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction, at the earliest practicable moment.

                    (g)  If requested by the Holders of a majority of the
Registrable Securities being sold in connection with such offering, (i) promptly
incorporate in a prospectus supplement or post-effective amendment such
information as the Holders reasonably request should be included therein
regarding such Holders or the plan of distribution of the Registrable
Securities, and (ii) make all required filings of the prospectus supplement or
such post-effective amendment as soon as practicable after the Company has
received notification of such matters to be incorporated in such prospectus
supplement or post-effective amendment; provided, however, that the Company
shall not be required to take any action pursuant to this Section 2.1(g) that
would, in the opinion of outside counsel for the Company, violate applicable
law.

                    (h)  Upon the occurrence of any event contemplated by
Section 2.1(e)(v), as promptly as practicable, prepare a supplement or
amendment, including a post-effective amendment, to each Registration Statement
or a supplement to the related prospectus or any document incorporated or deemed
to be incorporated therein by reference, and file any other required document so
that, as thereafter delivered, such Prospectus will not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.

                    (i)  Use its reasonable best efforts to cause all
Registrable Securities relating to such Registration Statement to be listed on
each securities exchange or automated quotation system, if any, on which
securities of the same class issued by the Company are then listed, and if the
Registrable Securities are of a class of securities that is listed on a national
securities exchange, file copies of any prospectus with such exchange in
compliance with Rule 153 under the Securities Act so that the holders of
Registrable Securities benefit from the prospectus delivery procedures described
therein.

                    (j)  In the event of any underwritten public offering
requested by the Holders of a majority of the Shares covered by the Registration
Statement with an underwriter reasonably acceptable to the Company:

                         (i)   enter into and perform its obligations under an
underwriting agreement, in usual and customary form, with the managing
underwriter(s) of such offering, and furnish, at the request of Holders who own
a majority of the Shares covered by such Registration Statement, on the date
that such Registrable Securities are delivered to the underwriters for sale (A)
an opinion, dated as of such date, of the counsel representing the Company for
the purposes of such registration, in form and substance as is customarily given
to underwriters in an underwritten public offering, addressed to each
underwriter and to each Holder requesting registration of Registrable
Securities, and (B) a "comfort" letter dated as of such date, from the
independent certified public accountants of the Company, in form and

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substance as is customarily given by independent certified public accountants to
underwriters in an underwritten public offering, addressed to each underwriter
and to each Holder requesting registration of Registrable Securities;

                         (ii)  if requested by the managing underwriter or
underwriters (if any), any selling Holder, or such selling Holder's counsel,
promptly incorporate into a prospectus supplement or post-effective amendment
such information as such Person reasonably requests to be included therein with
respect to the securities being sold by such selling Holder to such underwriter
or underwriters, the purchase price being paid therefor by such underwriter or
underwriters and any other terms of an underwritten offering of the securities
to be sold in such offering, and promptly make all required filings of such
prospectus supplement or post-effective amendment;

                         (iii) make available to one representative of the
selling Holders, the lead managing underwriter, and one attorney and accountant
for the selling Holders and the managing underwriter (collectively, the
"INSPECTORS"), such financial and other records, pertinent corporate documents
and properties of the Company (collectively, the "RECORDS") reasonably necessary
to enable them to exercise their due diligence responsibility under the
Securities Act and Exchange Act, and cause the Company's officers, directors and
employees to supply such information as may reasonably be requested by any such
Inspector in connection with such registration statement;

                         (iv)  participate, to the extent reasonably requested
by the lead managing underwriter for the offering, in customary reasonable
efforts to sell the securities being offered, and cause such steps to be taken
as to ensure such good faith participation of senior management officers of the
Company in "road shows" as is customary; and

                         (v)   cooperate with the lead managing underwriter
participating in the disposition of Registrable Securities and its counsel in
connection with any filings required to be made with the National Association of
Securities Dealers, Inc. ("NASD"), including, if appropriate, the pre-filing of
a prospectus as part of a shelf registration statement in advance of an
underwritten offering.

                    (k)  As soon as practicable, the Company will make generally
available to its shareholders an earnings statement (which need not be audited)
covering the twelve-month period beginning with the first month after the
effective date of the Registration Statement that satisfies the provisions of
Section 11(a) of the Securities Act.

                    (l)  During the period when the prospectus is required to be
delivered under the Securities Act, promptly file all documents required to be
filed with the Commission, including pursuant to Sections 13(a), 13(c), 14, or
15(d) of the Exchange Act.

                    (m)  Provide a transfer agent and registrar for all
Registrable Securities registered pursuant hereunder and a CUSIP number for all
such Registrable Securities, in each case no later than the effective date of
such registration.

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               2.2  SELLER INFORMATION. (a) The Company may require each selling
Holder of Registrable Securities as to which any registration is being effected
to furnish to the Company such information regarding such Holder, such Holder's
Registrable Securities and such Holder's intended method of disposition as the
Company may from time to time reasonably request; provided that such information
shall be used only in connection with such registration.

                    (b)  (i) If the Registration Statement refers to any Holder
by name or otherwise as the Holder of any securities of the Company, then such
Holder shall promptly (i) notify the Company and its counsel of the existence of
any fact of which such Holder becomes aware and the happening of any event which
relates to Holder or the distribution of the securities owned by such Holder
which results in the Registration Statement containing an untrue statement of
material fact or omitting to state a material fact required to be stated therein
or necessary to make any statements therein not misleading, or the Prospectus
included in such Registration Statement containing an untrue statement of
material fact or omitting to state a material fact required to be stated therein
or necessary to make any statements therein, in light of the circumstances under
which they were made, not misleading, and (ii) provide to the Company such
information which relates to Holder or the distribution of the securities owned
by such Holder as shall be necessary to enable the Company to prepare a
supplement or post-effective amendment to such Registration Statement or related
Prospectus or any document incorporated therein by reference or file any other
documents required so that such Registration Statement will not contain any
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading,
and such Prospectus shall not include an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were
made, not misleading.

                         (ii)  If the Registration Statement refers to any
Holder by name or otherwise as the holder of any securities of the Company, then
such Holder shall have the right to require in the event that such reference to
such Holder by name or otherwise is not required by the Securities Act or any
similar Federal or state securities or "blue sky" statute and the rules and
regulations thereunder then in force, deletion of the reference to such Holder.

               2.3  NOTICE TO DISCONTINUE. Each holder of Registrable Securities
agrees that, upon receipt of any notice from the Company of the happening of any
event of the kind described in Section 2.1(e)(ii) through (v) or Section
2.2(b)(i), such Holder shall forthwith discontinue disposition of Registrable
Securities pursuant to the Registration Statement covering such Registrable
Securities until such Holder's receipt of the copies of the supplemented or
amended prospectus contemplated by Section 2.1(h) or Section 2.2(b)(ii) and, if
so directed by the Company, such Holder shall deliver to the Company all copies,
other than permanent file copies, then in such Holder's possession of the
Prospectus covering such Registrable Securities which is current at the time of
receipt of such notice. If the Company shall give any such notice pursuant to
Section 2.1, the Company shall extend the period during which such Registration
Statement shall be maintained effective pursuant to this Registration Rights
Agreement by the number of days in excess of ten (10) business days during the
period from and including the date

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of the giving of such notice pursuant to Section 2.1(e) to and including the
date when the Holder shall have received the copies of the supplemented or
amended prospectus.

               2.4  EXPENSES OF REGISTRATION. Except only as specifically
provided herein, all expenses incident to the performance of compliance with
this Registration Rights Agreement by the Company shall be borne by the Company,
regardless of whether the Registration Statement becomes effective, including,
without limitation, (i) all registration and filing fees and expenses (including
filings made with the National Association of Securities Dealers ("NASD"), if
applicable); (ii) fees and expenses (including fees and expenses of counsel) of
compliance with federal securities and state Blue Sky and other Canadian,
provincial or other securities laws; (iii) expenses of printing, messenger and
delivery services, duplication, word processing and telephone incurred by the
Company (but not by the holders of Registrable Securities); (iv) fees and
disbursements of counsel for the Company; (v) all application and filing fees in
connection with listing Common Shares on a national securities exchange or
automated quotation system pursuant to the requirements hereof; and (vi) all
fees and disbursements of independent certified public accountants of the
Company (including the expenses of any special audit and "cold comfort" letters
required by or incident to such performance). The Company will, in any event,
bear its own internal expenses (including, without limitation, all salaries and
expenses of its officers and employees performing legal or accounting duties),
the expenses of any annual audit and the fees and expenses of any person,
including special experts, retained by the Company. The Investors will bear
their own expenses not described above in connection with or arising out of the
registration of their Shares except that the Company will pay the reasonable
fees and expenses of one legal counsel for all Investors in connection with the
registration of the Shares pursuant to this Agreement; PROVIDED, THAT, the
maximum aggregate amount of all fees and expenses of counsel to the Investor
required to be paid by the Company under this Agreement (other than pursuant to
Section 2.5) and under the Purchase Agreement shall not exceed $25,000.

               2.5  INDEMNIFICATION.

                    (a)  INDEMNIFICATION BY COMPANY. To the extent permitted by
law, the Company will indemnify and hold harmless each Holder and each
underwriter, and each of their respective officers, directors, affiliates,
advisors, stockholders, members, partners, agents and employees and each person,
if any, who controls such Holder or underwriter within the meaning of the
Securities Act or the Exchange Act, against any losses, claims, damages, or
liabilities (joint or several) to which they may become subject under the
Securities Act, the Exchange Act or other federal, Canadian, provincial or state
law, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon or related to any of the
following statements, omissions or violations (collectively a "VIOLATION") by
the Company: (i) any untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement or any amendments or supplements
thereto, or the omission or alleged omission to state therein a material fact
required to be stated therein, or necessary to make the statements therein not
misleading, (ii) any untrue statement or alleged untrue statement of a material
fact contained in the Prospectus (including any preliminary, final or summary
prospectus, amendment or supplement thereto) included in such Registration
Statement or any

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omission or alleged omission to state a material fact required to be stated
therein or necessary to make any statement therein, in light of the
circumstances under which they were made, not misleading, or (iii) any violation
or alleged violation of the Securities Act, the Exchange Act, any Canadian,
provincial or state securities law or any rule or regulation promulgated under
the Securities Act, the Exchange Act or any Canadian, provincial or state
securities law in connection with the offering covered by the Registration
Statement; PROVIDED, HOWEVER, that the Company will not be liable for
indemnification in any such case to the extent that any losses, claims, damages
or liabilities arise out of or are based upon any untrue statement or alleged
untrue statement of a material fact or omission or alleged omission of a
material fact so made in reliance upon and in conformity with written
information furnished to the Company by such Holder; and PROVIDED, FURTHER, that
with respect to any preliminary prospectus, the foregoing indemnity agreement
shall not apply or inure to the benefit of any selling Holder or underwriter
from whom the person asserting any loss, claim, damage, liability or expense
purchased Shares, or any person controlling such selling Holder or underwriter
or any of their respective officers, directors, affiliates, advisors,
stockholders, members, partners, agents or employees, if copies of the
prospectus were timely delivered to the Holder selling the Shares or the
underwriter and a copy of the prospectus (as then amended or supplemented if the
Company shall have furnished any amendments or supplements thereto) was not sent
or given by or on behalf of such Holder selling the Shares or the underwriter to
such person, if required by law so to have been delivered, and if the prospectus
(as so amended or supplemented) would have cured the defect giving rise to such
loss, claim, damage, liability or expense. Subject to Section 2.5(c), the
Company will pay to each such Holder, officer, director, affiliate, advisor,
underwriter or controlling person any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action as such expenses are incurred.

                    (b)  INDEMNIFICATION BY HOLDER OF REGISTRABLE SECURITIES. To
the extent permitted by law, each Holder will, if Registrable Securities held by
such Holder are included in the securities as to which such registration,
qualification or compliance is being effected, indemnify and hold harmless the
Company, the officers, directors, affiliates, advisors and underwriters of the
Company and each person, if any, who controls the Company within the meaning of
the Securities Act or the Exchange Act against any losses, claims, damages or
liabilities (joint or several) to which the Company or any such officer,
director, affiliate, advisor, underwriter or controlling person may become
subject under the Securities Act, the Exchange Act or other federal, Canadian,
provincial or state law, insofar as such losses, claims, damages or liabilities
(or actions in respect thereto) arise out of or are based upon any Violation, in
each case to the extent (and only to the extent) that such Violation occurs as a
result of reliance by the Company upon and in conformity with written
information furnished by such Holder under an instrument duly executed by such
Holder and stated to be specifically for use in connection with such
registration. Subject to Section 2.5(c), each such Holder will pay to the
Company, or any such officer, director, affiliate, advisor, underwriter or
controlling person any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage,
liability or action if it is judicially determined that there was such a
Violation; PROVIDED, HOWEVER, that in no event shall any indemnity under this
Section 2.5(b) exceed the dollar amount of net proceeds from the offering
received by such Holder.

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                    (c)  CONDUCT OF INDEMNIFICATION PROCEEDINGS. Promptly after
receipt by an indemnified party under this Section 2.5 of notice of the
commencement of any action (including any governmental action), such indemnified
party will, if a claim in respect thereof is to be made against any indemnifying
party under this Section 2.5, deliver to the indemnifying party a written notice
of the commencement thereof and the indemnifying party shall have the right to
participate in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume the defense
thereof with counsel mutually satisfactory to the parties; PROVIDED, HOWEVER,
that an indemnified party shall have the right to retain its own counsel, with
the fees and expenses to be paid by the indemnifying party, if, (i) in the
reasonable judgment of any such indemnified party, based upon advice of counsel,
a conflict of interest exists between such indemnified party and the
indemnifying party with respect to such claims or (ii) the indemnifying party
has not in fact employed counsel to assume the defense of such action within a
reasonable time after receiving notice of the commencement of the action or has
failed to employ counsel reasonably satisfactory to such indemnified party (in
which case, if the indemnified party notifies the indemnifying party in writing
that it elects to employ separate counsel at the expense of the indemnifying
party, the indemnifying party shall not have the right to assume the defense of
such claim on behalf of such indemnified party; provided, however, that the
indemnified party shall be entitled to elect only one counsel in the United
States (and, if necessary, one counsel in Canada) at the expense of the
indemnifying party and such counsel shall be reasonably acceptable to the
indemnifying party). All such fees, disbursements and other charges shall be
reimbursed by the indemnifying party promptly as they are incurred. The failure
to deliver written notice to the indemnifying party within a reasonable time of
the commencement of any such action, if it is finally determined in a court of
competent jurisdiction (which determination is not subject to appeal) that such
failure is materially prejudicial to its ability to defend such action, shall
relieve such indemnifying party of any liability to the indemnified party under
this Section 2.5, but the omission so to deliver written notice to the
indemnifying party will not relieve it of any liability that it may have to any
indemnified party otherwise than under this Section 2.5. No indemnifying party
shall be liable for any settlement of any claim or action effected by an
indemnified party without its written consent, which consent shall not be
unreasonably withheld.

                    (d)  CONTRIBUTION. (i) If the indemnification provided for
in this Section 2.5 is held by a court of competent jurisdiction to be
unavailable to an indemnified party with respect to any losses, claims, damages
or liabilities referred to herein, the indemnifying party, in lieu of
indemnifying such indemnified party thereunder, shall to the extent permitted by
applicable law contribute to the amount paid or payable by such indemnified
party as a result of such loss, claim, damage or liability in such proportion as
is appropriate to reflect the relative fault of the indemnifying party on the
one hand and of the indemnified party on the other in connection with the
Violation(s) that resulted in such loss, claim, damage or liability, as well as
any other relevant equitable considerations. The relative fault of the
indemnifying party and of the indemnified party shall be determined by a court
of law by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission to state a material fact relates to
information supplied by the indemnifying party or by the indemnified party and
the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission.

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                         (ii)  The Company and the Holders agree that it would
not be just and equitable if contribution pursuant to this Section were
determined by a method of allocation that does not take account the equitable
considerations referred to in the immediately preceding paragraph, provided that
a Holder of Registrable Securities shall not be required to contribute under
this Section 2.5 in excess of the lesser of (A) that proportion of the total
liability indemnified against equal to the proportion of the total Registrable
Securities sold under such registration statement by such Holder and (B) the net
proceeds received by such Holder from its sale of Registrable Securities under
such Registration Statement. No person found guilty of fraudulent representation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person not found guilty of such fraudulent
misrepresentation

                    (e)  SURVIVAL; SETTLEMENT. The obligations of the Company
and Holders under this Section 2.5 shall survive completion of any offering of
Registrable Securities in a registration statement, the termination of this
Registration Rights Agreement and any sale by the Holders of Registrable
Securities. No indemnifying party, in the defense of any such claim or
litigation, shall, except with the written consent of each indemnified party in
such claim or litigation, consent to entry of any judgment or enter into any
settlement which consent shall not be unreasonably withheld, unless such
settlement, compromise or consent (i) includes an unconditional release of each
indemnified party from all liability arising or that may arise out of such
claim, action or proceeding, (ii) does not include a statement as to or an
admission of fault, culpability or a failure to act by or on behalf of any
indemnified party and (iii) does not commit the indemnified party to take, or to
forbear to take, any action.

               2.6  TERMINATION OF REGISTRATION RIGHTS. Notwithstanding anything
herein to the contrary, a Holder shall not be entitled to any registration
rights, rights to liquidated damages or other rights hereunder (a) if all of the
Registrable Securities covered by the Registration Statement have been sold or
(b) if all Registrable Securities covered by the Registration Statement may be
sold during any 90 day period without registration under the Securities Act
pursuant to the exemptions provided by Rule 144 under the Securities Act
("TERMINATION EVENT"); PROVIDED, HOWEVER, that any right to liquidated damages,
indemnification or any other right that had accrued to the benefit of such
Holder prior to the Termination Event but had not been satisfied as of the
Termination Event, shall remain in effect after the Termination Event until
satisfied.

          3.   INTENTIONALLY LEFT BLANK

          4.   LIQUIDATED DAMAGES

                    (a)  (i)  The Company acknowledges and agrees that the
Holders of Registrable Securities will suffer damages, and that it would not be
feasible to ascertain the extent of such damages with precision, if the Company
fails to fulfill certain of its obligations hereunder. Accordingly, if the
Registration Statement has not been declared effective by the Commission within
120 days after the Closing, the Company agrees to pay liquidated damages (for
loss of benefit of a bargain and not as a penalty) to each Holder of Registrable
Securities in an amount equal to .5% of the dollar amount of such Holder's
investment in the Registrable Securities for each month until the Registration
Statement is

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declared effective, or until 180 days after the Closing, whichever occurs first.
Commencing on the 181st day of the Closing, if the Registration Default
persists, the foregoing required percentage payment by the Company for each
month shall increase to .75% until the Registration Statement is declared
effective. To the extent applicable, payment of accrued liquidated damages shall
be payable monthly in advance with the first payment being due on the 121st day
following Closing and additional payments, if any, being due every 30 days
thereafter until the Registration Statement is declared effective.

                         (ii) If the Registration Statement is declared
effective but shall thereafter cease to be effective without being succeeded
within 30 days (or within 45 days in the event that the Company exercises its
Suspension Right) by any additional Registration Statement filed and declared
effective, the Company agrees to pay liquidated damages (for loss of benefit of
a bargain and not as a penalty) to each Holder of Registrable Securities for
each month that the Registration Statement is not effective in an amount equal
to .5% of the dollar amount of such Holder's investment in Registrable
Securities then held by such Holder. To the extent applicable, payment of
accrued liquidated damages shall be payable monthly in advance with the first
payment being due on the 31st day (or 46th day in the event the Company
exercises its Suspension Right) after such Registration Statement ceases to be
effective without being succeeded by a successor Registration Statement, and
additional payments, if any, being due every 30 days thereafter until a
successor Registration Statement is filed and declared effective.

                    (b)  All accrued liquidated damages shall be paid to Holders
by the Company by wire transfer of immediately available funds or by federal
funds check by the Company. Following the cure of a registration default
described in Section 4(a)(i) or (ii), the accrual of liquidated damages will
cease to accrue with respect to such default.

                    (c)  All of the obligations of the Company set forth in this
Section 4 that are outstanding with respect to any Registrable Security at the
time such security ceases to be a Registrable Security shall survive until such
time as all such obligations with respect to such security shall have been
satisfied in full.

                    (d)  So long as the Company is using best efforts to file
and have the Registration Statement (or if applicable, a successor Registration
Statement) declared effective, the remedies set forth in this Section 4 shall be
the sole and exclusive remedies available to any Holder for failure of the
Company to comply with its obligation to file the Registration Statement, have
the Registration Statement declared effective or maintain the effectiveness of
the Registration Statement under this Agreement. However, if the Company is not
using such best efforts, the Holders shall have the right to pursue all
available remedies at law or in equity for a breach of such Company obligations.

          5.  MISCELLANEOUS

               5.1  GOVERNING LAW; EXCLUSIVE JURISDICTION. This Registration
Rights Agreement shall be governed by and construed in accordance with the laws
of the State of New York as applied to contracts entered into and performed
entirely in New York by New York

                                       11
<Page>

residents, without regard to conflicts of law principles. The parties hereto (a)
agree that any suit, action or other proceeding arising out of this Agreement
shall be brought only in the courts of the State of New York or the courts of
the United States located within the State of New York, in each case in the
County of New York, (b) consent and submit to the exclusive jurisdiction of each
such court in any such suit, action or proceeding and (c) waive any objection
which they, or any of them, may have to personal jurisdiction or the laying of
venue of any such suit, action or proceeding in any of such courts, and agree
not to seek to change venue.

               5.2  SURVIVAL. The representations, warranties, covenants, and
agreements made herein shall survive any investigation made by any Holder and
the closing of the transactions contemplated hereby.

               5.3  SUCCESSORS AND ASSIGNS. Except as otherwise expressly
provided herein, the provisions hereof shall inure to the benefit of, and be
binding upon, the successors, assigns, heirs, executors, and administrators of
the parties hereto and shall inure to the benefit of and be enforceable by each
Permitted Assignee of Registrable Securities from time to time. A "PERMITTED
ASSIGNEE" shall mean with respect to any Investor, any other person directly or
indirectly controlling or controlled by or under direct or indirect, common
control with such Investor.

               5.4  ENTIRE AGREEMENT. This Registration Rights Agreement,
including any exhibits hereto, the Purchase Agreement and the other documents
delivered pursuant thereto constitute the full and entire understanding and
agreement between the parties with regard to the subjects hereof and no party
shall be liable or bound to any other in any manner by any representations,
warranties, covenants and agreements except as specifically set forth herein and
therein.

               5.5  SEVERABILITY. In case any provision of the Agreement shall
be invalid, illegal, or unenforceable, the validity, legality, and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

               5.6  AMENDMENT AND WAIVER. The provisions of this Registration
Rights Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, unless the Company has obtained the written
consent of Holders of at least a majority of the then outstanding Registrable
Securities; PROVIDED, HOWEVER, that Sections 2.1 and 2.5 shall not be amended,
modified or supplemented, and waivers or consents to departures from this
proviso may not be given, unless the Company has obtained the written consent of
each Holder of the then outstanding Registrable Securities.

               5.7  DELAYS OR OMISSIONS. It is agreed that no delay or omission
to exercise any right, power or remedy accruing to any Holder, upon any breach,
default or noncompliance of the Company under this Registration Rights Agreement
shall impair any such right, power or remedy, nor shall it be construed to be a
waiver of any such breach, default or noncompliance, or any acquiescence
therein, or of any similar breach, default or noncompliance thereafter
occurring. It is further agreed that any waiver, permit, consent or approval of
any kind

                                       12
<Page>

or character of any breach, default or noncompliance under the Agreement or any
waiver of any provisions or conditions of this Registration Rights Agreement
must be in writing and shall be effective only to the extent specifically set
forth in such writing by the waiving party.

               5.8  NOTICES. All notices, requests, consents and other
communications hereunder shall be in writing and shall be deemed effectively
given: (a) upon personal delivery to the party to be notified, (b) when sent by
confirmed facsimile if sent during normal business hours of the recipient; if
not, then on the next business day, (c) upon receipt or refusal of receipt when
sent by first-class registered or certified mail, return receipt requested,
postage prepaid, or (d) upon receipt or refusal of receipt after deposit with a
nationally recognized overnight express courier, postage prepaid, specifying
next day delivery with written verification of receipt. All communications shall
be sent to the party to be notified at the address as set forth below or at such
other address as such party may designate by ten (10) days advance written
notice to the other party. All communications shall be addressed as follows:

                    (a)  if to the Company, to:

                          VISIBLE GENETICS INC.
                          700 Bay Street, Suite 1000
                          Toronto, Ontario
                          M5G 1Z6
                          Telephone: (416) 813-3240
                          Facsimile: (416) 813-3250
                          Attention:  Chief Executive Officer

                         with a copy so mailed to:

                          BAER MARKS & UPHAM LLP
                          805 Third Avenue
                          New York, New  York  10022
                          Telephone: (212) 702-5700
                          Facsimile: (212) 702-5941
                          Attention: Steven S. Pretsfelder

                    (b)  if to the Investors, at the address as set forth on the
Counterpart Execution Page of this Registration Rights Agreement, with a copy to
Goodwin Procter LLP, Exchange Place, 53 State Street, Boston, MA 02109 Ph
617-570-1000, fax 617-523-1231 Attn: Laura C. Hodges Taylor, P.C.

               5.9  SECURITIES HELD BY THE COMPANY OR ITS AFFILIATES. Whenever
the consent or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by the Company or
its affiliates (as such term is defined in Rule 405 under the Securities Act)
(other than the Holders or subsequent Holders of Registrable Securities if such
Holders or subsequent Holders are deemed to be such affiliates solely by reason
of their holdings of such Registrable Securities) shall not be counted in
determining whether such consent or approval was given by the Holders of such
required percentage.

                                       13
<Page>

               5.10 TITLES AND SUBTITLES. The titles of the sections and
subsections of this Registration Rights Agreement are for convenience of
reference only and are not to be considered in construing this Registration
Rights Agreement.

               5.11 COUNTERPARTS. This Registration Rights Agreement may be
executed in any number of counterparts, each of which shall be an original, but
all of which together shall constitute one instrument.

          If this Registration Rights Agreement is satisfactory to you, please
so indicate by signing a counterpart execution page to this Registration Rights
Agreement and a Registration Statement Questionnaire and return such counterpart
and questionnaire to the Company whereupon subject to the Company's acceptance
of your subscription, this Registration Rights Agreement will become binding
between us in accordance with its terms.

                                         VISIBLE GENETICS INC.

                                         By:
                                            ------------------------------------
                                            Name: Thomas J. Clarke
                                            Title: Chief Financial Officer

                                         By:
                                            ------------------------------------
                                            Name: Marguerite Ethier
                                            Title: General Counsel

                                       14
<Page>

                          REGISTRATION RIGHTS AGREEMENT
                           COUNTERPART EXECUTION PAGE

          By signing below, the undersigned agrees to the terms of the Visible
Genetics Inc. Registration Rights Agreement.

                                         INVESTOR:

                                         By:
                                            ------------------------------------
                                            Name:
                                            Title:
                                            Address:
                                                    ----------------------------

                                                    ----------------------------

                                                    ----------------------------
                                         Facsimile:
                                                   -----------------------------

<Page>

                                                                      Appendix I

                              VISIBLE GENETICS INC.
                      REGISTRATION STATEMENT QUESTIONNAIRE

          In connection with the preparation of the Registration Statement,
please provide us with the following information:

                         (i)   Please state your or your organization's name
exactly as it should appear in the Registration Statement: _____________________
_______________________________

                         (ii)  Please provide the following information, as of
December __, 2001:

               a)   Number of Shares that you are purchasing:

               b)   Number of Shares that you seek to include in the
                    Registration Statement:

               c)   Number of Common Shares that you already beneficially own:

               d)   Number of any other securities of the Company that you
                    already beneficially own (please specify the class or type):

               e)   Total Number of Securities that you already beneficially
                    own:

                         (iii) Please indicate the name of any person or entity
who has voting or other dispositive power over the shares of Visible Genetics
Inc. which you beneficially own. Please indicate for each such person whether
the power is held solely by that person or is shared with other persons and, if
shared, name all such other persons.

       -------------------------------------------------------------------

       -------------------------------------------------------------------

                         (iv)  If voting or dispositive power is held by an
entity, please indicate the identity of the persons who have ultimate voting
and/or dispositive power over such entity as it relates to the shares of Visible
Genetics Inc., and whether such voting or dispositive power is shared with other
persons, and if shared, name all such other persons.

       -------------------------------------------------------------------

       -------------------------------------------------------------------

<Page>

                         (v)   Have you or your organization had any position,
office or other material relationship within the past three years with the
Company or its affiliates other than as disclosed in the Company's 2000 Annual
Report on Form 20-F? Yes_____ No_____

          If yes, please indicate the nature of any such relationships:_________

                         (vi)  Please describe your Plan of Distribution for the
shares you wish to sell:

       -------------------------------------------------------------------

       -------------------------------------------------------------------

                                         INVESTOR:

                                         By:
                                            ------------------------------------
                                            Print Name:
                                            Title:

          The foregoing constitutes the only information furnished to the
Company for inclusion in the Registration Statement for purposes of Section
2.5(b) of the Registration Rights Agreement.<Page>

                                                                   EXHIBIT 10.29

          THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT is effective as of
February 1, 2002

AMONG:

          VISIBLE GENETICS CORPORATI0N, a corporation duly
          incorporated under the laws of the State of Delaware and
          having its principal office in the, City of Suwanee, in the
          State of Georgia,

          (the "Employer")

                                      -and-

          VISIBLE GENETICS INC., a corporation duly incorporated under
          the laws of the Province of Ontario and having its head
          office in the City of Toronto, in the Province of Ontario,

          ("VGI")

                                      -and-

          RICHARD T. DALY, an individual residing in the City of Palo
          Alto, in the State of California,

          (the "Executive")

RECITALS:

A.   The Employer is a wholly owned subsidiary of VGI.

B.   The Executive was employed by the Employer effective April 1, 1999.

C.   The Executive was appointed as President and Chief Executive Officer of VGI
     effective July 7, 1999.

D.   VGI and the Employer are parties to a Secondment Agreement under which the
     Executive may be seconded to VGI from time to time.

E.   The Employer, VGI and Executive entered into an employment agreement dated
     July 7, 1999.

<Page>

F.   The Employer, VGI and the Executive desire to amend and restate the
     Employment Agreement effective as of February 1, 2002.

G.   The Employer, VGI and the Executive have entered into an Escrow Agreement
     dated July 7, 1999 in connection with the Employment Agreement (the "Escrow
     Agreement").

     THEREFORE, the parties agree as follows:

                                    ARTICLE 1

                        POSITION, DUTIES AND REMUNERATION

1.1  EMPLOYMENT

Subject to the provisions of Article 5 hereof, the Employer agrees to continue
to employ the Executive and the Executive agrees to remain in the employ of the
Employer and to act as President and Chief Executive Officer ("CEO") of VGI. The
Executive will be paid a gross annual salary, payable in United States currency
of three hundred twenty-four thousand dollars (U.S. $324,000.00) paid payable in
accordance with the Employer's normal payroll policy.

1.2  DUTIES

The Executive agrees to perform faithfully the duties of President and CEO and
all other lawful instructions and duties as the Employer or VGI may from time to
time reasonably require commensurate with his position.

1.3  FULL TIME AND ATTENTION

The Executive agrees to use his best efforts to promote the interests of the
Employer and VGI, to devote his full time and attention to the business of the
Employer and VGI and to adhere to the instructions and directives of the
Employer and VGI.

                                        2
<Page>

1.4  EMPLOYMENT CONDITIONS

The Executive agrees to adhere to and abide by the Employer's policies, as
amended from time to time, regarding holidays, sick leave, hospital insurance,
and other fringe benefits. The Executive shall be bound by and shall faithfully
observe and abide by all of the rules and obligations of the Employer from time
to time in force which are brought to his notice, or of which he should
reasonably be aware of.

1.5  ANNUAL REVIEW

The Employer agrees in its sole discretion to review the salary and benefits
payable to Executive hereunder annually.

1.6  BENEFITS

In addition to salary, for the performance of his services hereunder, the
Executive shall be entitled to participate in all of the Employer's benefit
plans generally available to its Executives, including group, life, medical,
dental, hospital, long-term disability, accidental death and dismemberment
insurance benefit plans. In the event the Employer adopts any new benefit plans,
pensions or perquisites, the Executive shall have the right to participate on a
basis equivalent to other Executives of the Employer. All plans shall be
administered and governed by their respective terms.

1.7  REIMBURSEMENT FOR EXPENSES

Provided that the Executive submits receipts satisfactory to either the Chair of
the Board of Directors of the Employer (the "Board") or the Chair of the
Compensation Committee of the Board, the Employer shall reimburse the Executive
forthwith for all proper and reasonable out-

                                        3
<Page>

of-pocket expenses actually incurred by the Executive in the performance of his
duties, including all business-related travel expenses.

1.8  APARTMENT ACCOMMODATION

The Employer shall make available to the Executive apartment accommodation for
the occasions in which the Executive must travel for business-related reasons to
Toronto.

1.9  TAX MATTERS

     (a)  The Employer will provide the Executive with a one-time payment during
          calendar year 2000 of Canadian ten thousand dollars (Cdn. $10,000.00)
          in order that the Executive may obtain income tax advice.

     (b)  The Employer will reimburse the Executive with reasonable expenses
          each year for income tax return preparation.

     (c)  To receive all or part of the amounts set out in Subsections 1.9(a) or
          1.9(b) above, the Executive must present receipts satisfactory to the
          Employer describing the nature of the services provided and the fees
          charged in respect of such services.

1.10 VACATION

The Executive shall be entitled to five (5) weeks vacation with pay each
calendar year. The scheduling of any vacation time must be approved by the
Employer. Vacation time will not be accumulated from year to year. Rather,
unused entitlement will be forfeited; provided, however, that the Employer will
provide any vacation pay entitlements pursuant to applicable employment
standards legislation.

                                    ARTICLE 2

                                        4
<Page>

                            CONFIDENTIAL INFORMATION
                     NON-CONPETITION/NON-SOLICITATION DURING
                     AND FOLLOWING TERMINATION OF EMYLOYMENT

2.1  DEFINITIONS

In this Article 2, the following terms shall have the meaning set out below:

     (a)  "Confidential Information" - shall include:

          (i)   Trade Secret Information;

          (ii)  all other proprietary and confidential information concerning
                the business and affairs of the Employer, including, management
                methods, operating techniques and procedures, financial and
                sales information, supplier and client data, and information
                disclosed in confidence to the Employer by a third party; and

          (iii) all Inventions,

          but Confidential Information shall not include information which the
Executive can demonstrate:

          (i)   was in the public domain or becomes so through no fault of the
                Executive; or

          (ii)  was disclosed to the Executive by a third party not under an
                obligation to the Employer to maintain the confidence of such
                information.

     (b)  "Inventions" - shall mean any improvement, modification or enhancement
          of any Trade Secret Information together with any other Trade Secret
          Information which the Executive may make, develop, devise, author or
          otherwise be involved with,

                                        5
<Page>

          alone or jointly with others, which is, regardless of whether or not
          the Employer's resources or assets are used, conceived or made wholly
          or partly by reason of opportunities afforded by the Employer, or with
          knowledge gained through employment by the Employer (whether perfected
          or reduced to specific form either prior to the date of this Agreement
          or during or subsequent to his employment with the Employer) or which:

          (i)   the Executive makes, develops, devises, authors or is otherwise
                involved with during the term of his employment with the
                Employer, on or off the Employer's premises, during or after
                normal business hours;

          (ii)  utilizes any Trade Secret Information of the Employer; or

          (iii) does not utilize any Trade Secret Information of the Employer
                but is made, developed, devised or authored to a substantial
                extent during the time which should properly be devoted by the
                Executive to the affairs and the business of the Employer.

     (c)  "Trade Secret Information" - shall mean all information relating to
          the business of the Employer including, but not limited to, all
          software systems, and design documents, formulae, processes, research
          techniques and results and instructions in oral form or any media
          including electronic, chart, graphic of written form.

     (d)  "Employer" shall mean VGI and its affiliates, collectively.

2.2  CONFIDENTIALITY

The Executive acknowledges that he is employed in a position of trust and has
fiduciary obligations to the Employer and VGI. The Executive covenants that
during his employment by

                                        6
<Page>

the Employer and after the termination of such employment, the Executive shall
not, for any reason, directly or indirectly:

     (a)  apply or use any part of the Confidential Information including the
          Inventions except for the benefit of the Employer;

     (b)  divulge or disclose to any person, firm or corporation any part of the
          Confidential Information including the Inventions, except with the
          prior written consent of the Employer, and the Executive shall only
          make such disclosure to:

          (i)   directors, officers, Executives, and consultants of the Employer
                on a "need-to-know" basis only as the Executive may be authorize
                from time to time by the proper officers of the Employer; or

          (ii)  as required to do so as a matter of law, pursuant to any
                subpoena or order issued by a court of competent jurisdiction or
                any competent governmental authority, provided the Executive
                shall promptly notify the Employer of any such order or
                requirement, consult with the Employer on the advisability of
                resisting such order and co-operate with the Employer in
                attempting to obtain an order protecting the confidence of any
                information to be disclosed;

     (c)  publish information relating to the Inventions except with the prior
          written consent of the Employer; or

                                        7
<Page>

     (d)  copy or remove from the Employer's premises any part of the
          Confidential Information including the Inventions, in electronic or
          physical form, except documents which:

          (i)   are not Trade Secret Information; and
          (ii)  in the ordinary course of business, the Executive would
                reasonably be expected to perform work on at home or in the
                course of business travel.

Upon request or upon termination of his employment by the Employer, the
Executive shall surrender to the Employer all originals and copies of any media
of any and all Confidential Information including Inventions which may be in his
possession, and the Executive acknowledges and agrees that upon termination of
his employment, the Executive has an obligation to make such surrender with or
without the express demand of the Employer.

2.3  NON-COMPETITION

During the term of this Agreement and for a period of twelve (12) months
thereafter, the Executive shall not, either individually or in partnership or
jointly or in conjunction with any person as principal, agent, Executive,
shareholder (other than a holder of shares listed on the Canadian or United
States stock exchange where such holdings do no exceed two percent (2%) of the
outstanding shares so listed), anywhere within Canada or the United States of
America, the United Kingdom or Europe:

     (a)  solicit any clients or potential clients of the Employer for any
          business that competes directly or indirectly with the business of the
          Employer, except on behalf of the Employer; or

                                        8
<Page>

     (b)  in any manner whatsoever carry on or be engaged in, or be concerned
          with or interested in, or advise, lead money to, guarantee the debts
          or obligations of, or permit his name or any party thereof to be used
          or employed by any person engaged in or concerned with or interested
          anywhere in any business that competes directly or indirectly with the
          business of the Employer.

For the purposes hereof the business of the Employer shall be defined to mean
molecular diagnostic systems, including software instrumentation, and molecular
methods, or DNA sequencing technology. This includes, but is not limited to any
high speed DNA sequencer or any DNA sequencer that uses an ultra-thin gel
cassette, or DNA analysis software that is assay based. This excludes any
service-based diagnostic business, or not-for-profit research associated with
clinical diagnostics that might use such molecular diagnostic system, but does
include any business that supplies software, instrumentation of supplies that
compete with the Employer's products in development or being sold at the time of
the Executive's termination or voluntary leaving.

2.4  INVENTIONS

The Executive shall promptly disclose to the Employer all Inventions as the
Executive becomes aware of them. The Executive acknowledges and agrees that as
between the Employer and Executive, all trade secrets, copyright, patents or
other intellectual property rights which may subsist in the said Inventions
shall be and shall remain the sole and exclusive, property of the Employer, and
the Employer shall be free to adopt the Inventions. The Executive hereby waives
in favour of the Employer his moral rights in all such Inventions. Both during
and following his employment, the Executive will execute any documents that the
Employer may present to him

                                        9
<Page>

including applications to register intellectual property rights and assignment
documents, and shall do all such other things as the Employer may require of the
Executive from time to time to afford full and complete protection to the
above-stated property rights of the Employer in and to the Inventions, all at
the sole expense of the Employer.

The Executive shall not at any time contest directly or indirectly the
ownership, validity or enforceability of intellectual property rights subsisting
in such Inventions.

2.5  CORPORATE OPPORTUNITIES

Any business opportunities related to the business of the Employer which become
known to the Executive during his employment hereunder must be fully disclosed
and made available to the Employer by the Executive, and the Executive agrees
not to take or attempt to take any benefit of such opportunity except on behalf
of the Employer unless the Employer declines in writing to pursue such
opportunity.

2.6  RIGHTS OF ENFORCEMENT

The Executive hereby agrees that all restrictions, including but not limited to
business scope, geographic area and period of time, in this Agreement are
reasonable and valid in view of the nature of the business of the Employer.

The Executive further agrees that the remedy at law for any breach by him of the
confidentiality or non-competition provisions of this Agreement will be
inadequate. The Employer or any related corporation, on any application to a
court of competent jurisdiction, shall be entitled to injunctive relief against
the Executive to enforce the terms of this Article 2 without the necessity of
proving actual damage to the Employer or its related corporations.

                                       10
<Page>

                                    ARTICLE 3

                            TERMINATION OF EMPLOYMENT

3.1  DEATH

The Executive's employment shall terminate automatically in the event of the
death of the Executive and the Executive's estate shall not be entitled to
receive any further compensation under this Agreement other than any amounts
that may have accrued to the date of the Executive's death. Notwithstanding the
foregoing, shares subject to the First and Second Options or portions thereof,
shall continue to be released from escrow pursuant to the Escrow Agreement for
twelve (12) calendar months following the date of the Executive's death and the
Executive's estate will also be entitled to receive one month's salary
multiplied by the number of months in the Severance Period set out in Section
3.4 hereof.

3.2  DISABILITY

The Executive's employment shall terminate upon the last day of any period of
six (6) months during which the Executive has been continuously disabled from
performing his employment duties. The Executive shall not be entitled to receive
any further compensation under this Agreement other than any amounts that may
have accrued to the date of the Executive's termination of employment under this
Section 3.2 and rights, if any, to which the Executive otherwise may be entitled
under Article 4. Notwithstanding the foregoing, shares subject to the First and
Second Options or portions thereof, shall continue to be released from escrow
pursuant to the Escrow Agreement for twelve (12) calendar months following the
date of the Executive's termination of employment under this Section 3.2, and
the Executive will also be entitled to receive one month's salary multiplied by
the number of months in the Severance Period set out in Section 3.4 hereof.

                                       11
<Page>

3.3  CAUSE

Notwithstanding any other provisions of this Agreement, the Employer or VGI may
terminate this Agreement at any time, without notice, for Cause. The term
"Cause" as used for purposes of this Section 3.3 shall mean any material breach
of fiduciary obligation or gross insubordination.

3.4  TERMINATION FOR ANY REASON

Notwithstanding any other provision in this Agreement but subject to the
provisions of Article 4 of this Agreement, the Employer may terminate the
Executive's employment at any time for any reason by providing the Executive
with one (1) months' salary multiplied by the number of months in the Severance
Period. The "Severance Period", as used in this Agreement, means:

     (a)  if Executive is terminated by Employer prior to April 1, 2000, twelve
          (12) months; or

     (b)  if the Executive is terminated after April 1, 2000, twelve (12)
          months' notice, plus one (1) additional month for each full year of
          employment with Employer after April 1, 2000 but shall not exceed a
          total of eighteen (18) months.

Unless Article 4 hereof is applicable, the Executive agrees that such pay in
lieu of notice will fully satisfy the Employer's obligations at common law and
no further payments will be owing to him by the Employer or VGI. The parties
have negotiated the duration of the Severance Period, and it forms part of the
consideration given by the Executive for his salary.

3.5  STATUTORY COMPLIANCE

Any payment under Section 3.4 hereof is subject to deductions required by law
and includes any entitlement the Executive may have to notice of termination,
termination pay or severance under the EMPLOYMENT STANDARDS ACT (Ontario) or any
similar legislation. The Executive shall have no

                                       12
<Page>

claim against the Employer or VGI for any further liability to make payments in
connection with the termination of the Executive's employment other than those
arising from Section 3.4 and, if applicable, Article 4, hereof.

3.6  RESIGNATION

The employment of the Executive may be terminated by the Executive for any
reason upon prior written notice to the Employer of one hundred and eighty (180)
days.

3.7  RETURN OF EMPLOYER PROPERTY

Upon termination of employment for whatever reason, the Executive will promptly
return to the Employer, in good condition, all items of any and every nature or
kind used by him in the course of his employment, or otherwise furnished to him
by the Employer or VGI, including without limitation all equipment, credit
cards, computers, cellular phones, fax machines, books, records, reports, files,
manuals, literature, software, confidential information or other materials
belonging to the Employer or an affiliated company.

3.8  BENEFIT TERMINATION

Upon termination of employment, all benefits provided under this Agreement shall
cease as permitted by applicable employment standards legislation, provided that
if the Executive's employment is terminated by the Employer under Section 3.4
hereof, benefits provided under this Agreement shall continue for the duration
of the Severance Period, and provided that the Executive shall continue to be
entitled to all of the benefits provided by Article 4 for so long as, and to the
extent, they are applicable.

                                       13
<Page>

                                    ARTICLE 4

                    CHANGE OF CONTROL AND RETENTION BENEFITS

4.1  DEFINITIONS.

For the purposes of this Article 4, the following terms shall have the meaning
set out below:

     (a)  "2001 COMPENSATION" shall mean the Executive's gross base salary paid
          to him in calendar year 2001, plus the gross amount of any cash
          bonuses payable to the Executive for calendar year 2001 (whether such
          cash bonuses are paid in calendar year 2001 or thereafter).

     (b)  "CAUSE" shall mean the Employer's right to terminate the Executive's
          employment on the basis of (i) the Executive's willful and continued
          failure to substantially perform his material duties of employment
          provided that the Employer shall have first provided the Executive
          with written notice specifying in reasonable detail the factors
          constituting such failure and such failure shall not have been cured
          within thirty (30 ) days after such notice; (ii) any commission of an
          act of fraud, misappropriation, or embezzlement with respect to the
          business or property of the Employer which is intended to result in
          substantial personal enrichment of the Executive or causes material
          harm to the Employer, or (iii) the Executive's conviction of, or plea
          of guilty or NOLO CONTENDERE to, a felony; PROVIDED, HOWEVER, the
          Executive shall not be deemed to have been terminated for Cause unless
          and until there shall have been delivered to the Executive a copy of a
          resolution duly adopted by the affirmative vote of not less than
          three-quarters of the entire membership of the Employer's (or its
          successor's) Board of Directors

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          (the "Board") at a meeting of the Board called and held for such
          purpose, finding that, in the good faith opinion of the Board, the
          Executive was guilty of the alleged conduct and specifying the
          particulars thereof in detail; PROVIDED, FURTHER, that the Executive
          must have received a minimum 30-day notice of such Board meeting and
          the detailed allegations against the Executive, and that the Executive
          has been provided the opportunity, together with the Executive's
          counsel, to be heard before the Board in opposition to the alleged
          conduct.

     (c)  "CHANGE IN CONTROL" shall mean the happening of any one of the
          following events:

          (i)   Upon the acquisition by any person, entity or "group," within
                the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
                Exchange Act of 1934 (the "Exchange Act") (other than an
                acquisition by VGI, the Employer, or any Subsidiary or any
                employee benefit plan of VGI, the Employer or any Subsidiary) of
                beneficial ownership (within the meaning of Rule 13d-3
                promulgated under the Exchange Act) of fifty percent (50%) or
                more of either the then outstanding shares of common stock of
                the Employer or VGI, or the combined voting power of either the
                Employer's or VGI's then outstanding voting securities, entitled
                to vote generally in the election of directors;

          (ii)  If individuals who constitute the Board of Directors of the
                Employer or VGI as of the date hereof (each an "Incumbent
                Board") cease for any reason to constitute at least a majority
                of such Board of Directors, provided that any person becoming a
                member of the Board of Directors of

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                either the Employer or VGI subsequent to the date hereof whose
                election, or nomination for election by the Employer's or VGI's
                shareholders, was approved by a vote of at least a majority of
                the directors then comprising the respective Incumbent Board
                (other than an election or nomination of an individual whose
                initial assumption of office is in connection with the actual or
                threatened election contest relating to the election of the
                directors of the Employer or VGI, as such terms are used in Rule
                141-11 of Regulation 14A promulgated under the Exchange Act)
                shall be, for purposes of this Agreement, considered as though
                such person were a member of such Incumbent Board; or

          (iii) Upon approval of the stockholders of the Employer or VGI of (A)
                a reorganization, merger or consolidation, in each case, with
                respect to which persons who were shareholders of the Employer
                or VGI immediately prior to such reorganization, merger or
                consolidation do not, immediately thereafter, own more than
                fifty (50%) of the combined voting power entitled to vote
                generally in the election of directors of the reorganized,
                merged or consolidated company, (B) a liquidation or dissolution
                of the Employer or VGI (other than a liquidation or dissolution
                in connection with a bankruptcy or insolvency or similar event
                of the Employer or VGI, or a liquidation or dissolution in which
                shareholders of the Employer or VGI receive less than a total of
                US$75 million in connection with such liquidation or
                dissolution), or (C) the sale of all or substantially all of the
                assets of the Employer or VGI.

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     (d)  "CHANGE OF CONTROL BENEFIT" shall have the meaning set forth in
          Section 4.2 hereof.

     (e)  "RETENTION BENEFIT" shall have the meaning set forth in Section 4.3
          hereof.

     (f)  "RETENTION BENEFIT PAYMENT PERIOD" shall have the meaning set forth in
          Section 4.3 hereof.

     (g)  "SUBSIDIARY" shall mean any person or entity of whom VGI or the
          Employer, directly or indirectly, owns fifty percent (50%) or more of
          the combined voting power entitled to vote generally in the election
          of directors.

     (h)  "VOLUNTARY TERMINATION" shall mean a voluntary termination of
          employment with the Employer by the Executive for reasons other than
          death or disability.

4.2  CHANGE OF CONTROL BENEFIT.

If the Executive is employed with the Employer on the date that a Change of
Control is deemed to be effective, the Executive shall be entitled to a cash
payment equal to the Executive's 2001 Compensation (the "Change of Control
Benefit"). The Employer shall pay the Executive the Change of Control Benefit in
a lump sum, less applicable withholdings, within five (5) business days
immediately following the Change of Control. The payment of the Change of
Control Benefit shall be in addition to the payment of all salary and any other
amounts otherwise payable to the Executive under this Agreement, option
agreement or other agreements with the Employer or VGI or otherwise in
connection with his employment by the Employer whether pursuant to employee
benefit plans or policies of the Employer or any severance or other benefit
available to the Executive under applicable law.

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4.3  RETENTION BENEFITS.

If the Executive is employed by the Employer or VGI or one of VGI's other
Subsidiaries following a Change of Control, the Executive shall be entitled to
accrue a cash benefit (the "Retention Benefit") provided the Executive remains
employed for one (1) or two (2) 90-day periods immediately following the Change
of Control (the "Retention Benefit Payment Period"). The accrued Retention
Benefit for each 90 day period shall be an amount equal to the Executive's 2001
Compensation, so that if the Executive remains employed for the Retention
Benefit Payment Period constituted by two 90 day periods, he would earn a total
Retention Benefit equal to two hundred percent (200%) of his 2001 Compensation.
The Retention Benefit shall be paid to the Executive in two (2) installments as
so earned: The first installment shall be paid ninety (90) days following the
date that a Change of Control is deemed to be effective, provided that the
Executive is so employed by the Employer, VGI or a Subsidiary on the ninetieth
(90th) day following a Change of Control, and, if applicable, a second and final
installment shall be paid at the end of second 90 day period, provided, that the
Executive is so employed as of the final day of such second 90 day period. If
the Executive's employment with the Employer and VGI and Subsidiaries is
terminated following a Change of Control, but prior to the end of the second 90
day period, for any reason (including death or disability) other than a
termination for Cause by the Employer or a Voluntary Termination, the Employer
shall pay the Executive the full amount of the Retention Benefit that the
Executive would have been entitled to receive from the effective date of the
Change of Control through the end of the Retention Benefit Payment Period had he
remained employed through the end of the Retention Benefit Payment Period
constituted by two 90 day periods. The Employer shall pay such amount to the
Executive within five (5) business days following the termination of the
Executive's

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employment. The payment of the Retention Benefit shall be in addition to the
payment of all salary and any other amounts otherwise payable to the Executive
under this Agreement or any option agreement or other agreements with the
Employer or VGI or otherwise in connection with his employment by the Employer,
VGI or one of its Subsidiaries whether pursuant to employee benefit plans or
policies of the Employer, VGI or one of its Subsidiaries, or any severance or
other benefit available to the Executive under applicable law.

4.4  LIMIT ON CHANGE OF CONTROL AND RETENTION BENEFITS.

Notwithstanding any other provision of this Article 4 to the contrary, if any
Retention Benefit payment or payments, or any portion of the Change of Control
Benefit payment, shall be deemed to be a "parachute payment" as defined in
section 280G(b)(2) of the Internal Revenue Code of 1986, as amended (the
"Code"), the Employer shall not be obligated to pay any portion of a Retention
Benefit payment or payments, or any portion of the Change of Control Benefit
payment, to the extent that any such payment or payments shall be deemed an
"excess" parachute payment to the Executive as defined in section 280G(b)(1) of
the Code and not deductible by the Employer in accordance with section 280G(a)
of the Code. Any abatement of payment obligations pursuant to this Section 4.3
shall commence with the last Retention Benefit payment that is earned and
accrued by the Executive pursuant to Section 4.4 hereof, and, if necessary,
shall continue with preceding Retention Benefit payment obligations in the order
of last accrued, first abated, with the Change of Control Benefit payment being
the last payment obligation to be abated, if necessary.

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4.5  SUCCESSOR LIABILITY.

Any successor to the Employer or VGI (whether directly or indirectly and whether
by purchase, lease, merger, consolidation, or otherwise) or to all or
substantially all of the Employer's or VGI's business and/or assets shall assume
the Employer's or VGI's respective obligations under this Article 4 and agree
expressly to perform the Employer's or VGI's respective obligations under this
Article 4 in the same manner and to the same extent as the Employer or VGI would
be required to perform such obligations in the absence of a succession. For all
purposes under this Article 4, the term "Employer" shall include any successor
to the Employer's business and/or assets and the term "VGI" shall include any
successor to VGI's business and/or assets.

4.6  TERMINATION UNDER CERTAIN CIRCUMSTANCES.

     (a)  If the Executive's employment terminates for any reason prior to a
          Change in Control, the Executive shall not be entitled to any payment
          of a Change of Control Benefit or any Retention Benefits pursuant to
          this Article 4, but shall be entitled to any payment to which the
          Executive otherwise would be entitled under any other provision of
          this Agreement, under any options agreement or other agreements with
          Employer or VGI to the extent otherwise applicable, under the
          Employer's then existing employee benefits plans or policies at the
          time of termination, and under any required severance benefits
          pursuant to applicable law, if any.

     (b)  If, following a Change in Control, the Executive is terminated by the
          Employer for Cause or the Executive has a Voluntary Termination, the
          Executive shall not be entitled to any payment of Retention Benefit
          under this Article 4 for any period

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          following said termination, but shall be entitled to any payment to
          which the Executive otherwise would be entitled to under any other
          provisions of this Agreement, under any options agreement or other
          agreements with the Employer or VGI, to the extent otherwise
          applicable, under the Employer's then-existing employee benefit plans
          or policies at the time of termination, and under any required
          severance benefit pursuant to applicable law, if any.

4.7  TERMINATION OF ARTICLE 4

The Board of the Employer and VGI, in their sole discretion, shall have the
right to terminate the provisions of this Article 4 effective as of December 31
of any year of the term by delivery of written notice to the Executive by no
later than January 15 of the following year; provided, however, that if a Change
of Control occurs prior to such December 31, or if the Employer or VGI has
entered into a binding agreement prior to such December 31, setting forth the
material terms of the transaction that will result in the Change of Control,
this clause shall have no force or effect.

4.8  RESOLUTION OF DISPUTES UNDER ARTICLE 4.

     (a)  (a) Any dispute or controversy arising out of, relating to, or in
          connection with this Article 4, or the interpretation, validity,
          construction, performance, breach, or termination of this Article 4,
          shall be settled by binding arbitration to be held in New York County,
          New York and shall be conducted in accordance with the Expedited
          Employment Arbitration Rules of the American Arbitration Association,
          in effect at the time of the arbitration ("Rules"), supplemented, as
          necessary, by those principles which would be applied by a court of
          law or equity.

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          The arbitrator may grant injunctions or other relief in such dispute
          or controversy. The decision of the arbitrator shall be final,
          conclusive and binding on the parties to the arbitration. Judgment may
          be entered on the arbitrator's decision in any court having
          jurisdiction.

     (b)  The arbitrator(s) shall apply New York law to the merits of any
          dispute or claim, without reference to conflicts of law rules. The
          arbitration proceedings shall be governed by federal arbitration law
          and by the Rules, without reference to state arbitration law.

     (c)  Notwithstanding anything herein to the contrary, the parties may seek
          specific performance or injunctive relief with respect to the matters
          set forth in this Article 4 in the United States District Court for
          the Southern District of New York or a state court located in New York
          County, New York. Each party (i) submits to the jurisdiction of any
          such court for the purpose of any such suit, action, or other
          proceeding, (ii) agrees that all such claims in respect of any such
          suit, action or proceeding may be heard and determined in any such
          court, (iii) waives, to the fullest extent permitted by law, any
          immunity it may have acquired, or hereafter may acquire, from
          jurisdiction of any such court or from any legal process therein, and
          (iv) agrees not to commence any such suit, action or proceeding other
          than in such court, and waives, to the fullest extent permitted by
          applicable law, any claim that any such suit, action or proceeding is
          brought in an inconvenient forum. Each party hereby irrevocably
          designates CT Corporation

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          System, 111 Eighth Avenue, New York, New York 10011 as agent upon whom
          process against it may be served for purposes of this Article 4.

     (d)  EXECUTIVE HAS READ AND UNDERSTANDS THIS ARTICLE 4, WHICH DISCUSSES
          ARBITRATION. EXECUTIVE UNDERSTANDS THAT SUBMITTING ANY CLAIMS ARISING
          OUT OF, RELATING TO, OR IN CONNECTION WITH THIS ARTICLE 4, OR THE
          INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH OR
          TERMINATION THEREOF TO BINDING ARBITRATION, CONSTITUTES A WAIVER OF
          EXECUTIVE'S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL
          DISPUTES RELATING TO AND ARISING FROM THIS ARTICLE 4.

4.9  NO DUTY TO MITIGATE

The Executive shall not be required to mitigate the amount of any payment
contemplated by this Article 4, nor shall any such payment be reduced by any
earnings that the Executive may receive from any other source.

4.10 VGI PRIMARILY OBLIGATED

VGI shall cause the Employer to perform all of the Employer's obligations under
this Article 4. If the Employer or VGI shall fail to perform, or shall otherwise
be in default of any obligations under this Article 4, the Executive shall have
the right to proceed against the Employer and/or VGI, or both of them, as the
primary obligor under this Article 4 in accordance with the provisions hereof.

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4.11 MISCELLANEOUS

     (a)  The validity, interpretation, construction and performance of this
          Article 4 shall be governed by the internal substantive laws, but not
          the conflicts of law rules, of the State of New York.

     (b)  All payments made pursuant to this Article 4 shall be subject to
          withholding of applicable income and employment taxes.

                                    ARTICLE 5

                GRANT OF OPTIONS TO PURCHASE COMMON SHARES OF VGI

5.1  THE FIRST OPTION

The Executive was granted an option (the "First Option") by VGI on April 1, 1999
to purchase fifty thousand (50,000) common shares of VGI at an exercise price in
United States currency of nine dollars, ten cents (U.S. $9.10) per share.
Subject to Article 6 hereof and the provisions of the attached Escrow Agreement,
the Executive has the right to exercise the First Option with respect to all or
any part of the shares subject to the First Option at any time or times prior to
the close of business on March 31, 2009. In accordance with the provisions of
the Escrow Agreement, one thousand three hundred and eighty eight (1,388) shares
shall be released from escrow on the first day of every calendar month between
May 1, 1999 and March 1, 2002 and the remaining one thousand four hundred and
twenty (1,420) shares shall be released from escrow on April 1, 2002.

5.2  THE SECOND OPTION

The Executive was granted an additional option (the "Second Option") by VGI on
July 2, 1999, to purchase four hundred thousand (400,000) common shares of VGI
at an exercise price in

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United States currency of eleven dollars (U.S. $11.00) per common share. Subject
to the provisions of Article 6 hereof and the attached Escrow Agreement, the
Executive has the right to exercise the Second Option with respect to all or any
part of the shares subject to the Second Option at any time or times prior to
the close of business on July 6, 2009. In accordance with the provisions of the
Escrow Agreement, one hundred thousand (100,000) shares shall be released from
escrow on July 7, 2000, eight thousand three hundred and thirty-three (8,333)
shares shall be released from escrow on each of August 7, 2000 and the seventh
day of every calendar month thereafter until June 7, 2003, and eight thousand
three hundred and forty-five (8,345) shares shall be released from escrow on
July 7, 2003.

5.3  THE ESCROW AGREEMENT

Subject to Article 6 hereof, the First Option and the Second Option
(collectively, the "Options") and all shares issued upon the exercise of the
Options shall be held subject to the escrow agreement attached hereto as
SCHEDULE "A" to the Initial Employment Agreement (the "Escrow Agreement").

                                    ARTICLE 6

                       EFFECT OF TERMINATION OF EMPLOYMENT
                    ON THE FIRST OPTION AND THE SECOND OPTION

6.1  TERMINATION

     (a)  The First Option.

          (i)  Subject, to Section 5.3:

                (A)  if the Executive resigns employment with the Employer prior
                     to April 1, 2002, or is terminated for Cause in accordance
                     with

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                     Section 3.3 hereof, the Executive shall be entitled only to
                     receive those shares issued or issuable upon exercise of
                     the First Option that have been release from escrow
                     pursuant to the Escrow Agreement on or before the date of
                     termination.

                (B)  if the Executive is terminated without Cause prior to April
                     1, 2000, the Executive shall be entitled to receive those
                     shares issued or issuable upon exercise of the First Option
                     that have been released from escrow pursuant to the Escrow
                     Agreement on or before the date of termination, plus those
                     shares that would have been released from escrow pursuant
                     to the Escrow Agreement had the Executive continued to be
                     employed beyond the date of termination for the number of
                     months in the Severance Period plus an additional six (6)
                     months (and those shares that would have been released from
                     escrow pursuant to the Escrow Agreement during such period
                     shall be deemed to have been released from escrow pursuant
                     to the Escrow Agreement in such circumstances for all
                     purposes of this Agreement and the Escrow Agreement);

                (C)  if the Executive is terminated without Cause after April 1,
                     2000, the Executive shall be entitled to receive those
                     shares issued or issuable upon exercise of the First Option
                     that have been released from escrow pursuant to the Escrow
                     Agreement on or before the date of termination, plus those
                     shares that would have been

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                     released from escrow pursuant to the Escrow Agreement had
                     the Executive continued to be employed beyond the date of
                     termination for the number of months in the Severance
                     Period (and those shares that would have been released from
                     escrow pursuant to the Escrow Agreement during such period
                     shall be deemed to have been released from escrow pursuant
                     to the Escrow Agreement in such circumstances for all
                     purposes of this Agreement and the Escrow Agreement);

                (D)  to the extent of the portion of the First Option that has
                     not been exercised for the full number of shares which may
                     be released from escrow pursuant to the Escrow Agreement to
                     the Executive in accordance with the provisions of this
                     Subsection 6.1(a), that portion of the First Option will
                     remain exercisable and the remaining portion of the First
                     Option will be cancelled; and

                (E)  If the Executive's employment is terminated, VGI shall have
                     the right to purchase for cancellation for a price
                     equivalent to the exercise price paid by the Executive any
                     shares issued pursuant to the exercise of the First Option
                     which have not been released from escrow pursuant to the
                     Escrow Agreement (taking into account the terms of this
                     Section 6.1).

     (b)  The Second Option.

          (i)   Subject to Section 6.3:

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                (A)  if the Executive resigns employment with the Employer, or
                     is terminated for Cause in accordance with Section 3.3
                     hereof prior to July 7, 2000, the Executive shall have no
                     right to purchase any shares pursuant to the Second Option
                     and the Second Option will expire on the date of such
                     resignation or termination;

                (B)  if the Executive resigns employment with the Employer, or
                     is terminated for Cause in accordance with Section 3.3
                     hereof on or after July 7, 2000 and prior to July 7, 2003,
                     the Executive shall be entitled to receive those shares
                     issued or issuable upon exercise of the Second Option that
                     have been released from escrow pursuant to the Escrow
                     Agreement on or before the date of termination; and

                (C)  if the Executive is terminated by the Employer without
                     Cause prior to July 7, 2003, he shall be entitled to
                     receive those shares issued or issuable upon exercise of
                     the Second Option that have been released from escrow
                     pursuant to the Escrow Agreement on or before the date of
                     termination plus those shares that would have been released
                     from escrow pursuant to the Escrow Agreement had the
                     Executive continued to be employed beyond the date of
                     termination for the number of months in the Severance
                     Period (and those shares that would have been released from
                     escrow pursuant to the Escrow Agreement during such period
                     shall be deemed to have been released from escrow pursuant
                     to the Escrow Agreement

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                     in such circumstances for all purposes of this Agreement
                     and the Escrow Agreement):

                (D)  to the extent of the portion of the Second Option that has
                     not been exercised for the full number of shares which may
                     be released from escrow pursuant to the Escrow Agreement to
                     the Executive in accordance with the provisions of this
                     Subsection 6.1(b), that portion of the Second Option will
                     remain exercisable and the remaining portion of the Second
                     Option will be cancelled; and

                (E)  If the Executive's employment is terminated, VGI shall have
                     the right to purchase for cancellation for a price
                     equivalent to the exercise prior paid by the Executive any
                     shares issued pursuant to the exercise of the Second Option
                     which have not been released from escrow pursuant to the
                     Escrow Agreement (taking into account the terms of this
                     Section 6.1).

6.2  ADDITIONAL OPTIONS

Additional options may be granted to Executive by the Employer from time to time
on a performance basis, at the sole discretion of Employer.

6.3  ACCELERATED RELEASE FROM ESCROW

The Escrow Agreement provides for an immediate release from escrow upon a Change
of Control in certain circumstances. For purposes of this Article 6 and the
Escrow Agreement, a "Change of Control" shall mean:

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     (a)  any transaction or series of related transactions (including a merger
          or consolidation) by a person or persons acting in concert or
          combination as a result of which the holders of voting capital stock
          of VGI immediately prior to such transaction(s) own less than fifty
          percent (50%) of the outstanding voting capital stock of VGI
          immediately subsequent to such transaction(s); or

     (b)  an agreement for the sale or disposition of all or substantially all
          of the assets of VGI to an arm's length third party that is not an
          affiliate of VGI;

     provided that no Change of Control shall be deemed to have occurred for
     purposes of this Article 6 or the Escrow Agreement by virtue of any
     transaction which results in the Executive or an entity in which the
     Executive has a one-quarter of one percent (.25%) or greater equity
     interest, either singly, or acting as a joint actor with a group of
     entities or persons, becoming the beneficial owner, directly or indirectly
     of twenty-five percent (25%) or more of the combined voting power of VGI's
     voting securities.

6.4  STATUS OF AND PAYMENT FOR OPTIONS

The Options are issued pursuant to VGI's Employee Share Option Plan, as amended.
The Options are intended to qualify as "Incentive stock options" under Section
422 of the Code to the extent that they qualify as such thereunder. Subject to
applicable law, stock purchased upon exercise of any of the Options may be paid
for, and any withholding obligation on the part of the Executive in connection
with the exercise of any of the Options may be satisfied, at the Executive's
election:

     (a)  in cash or by cheque made payable to the order of VGI in the amount of
          such exercise price or withholding obligation, as the case may be;

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     (b)  through the delivery of shares of stock of VGI having a fair market
          value on the date of exercise equal to the amount of such exercise
          price or withholding obligations, as the case may be;

     (c)  by delivery of an unconditional and irrevocable undertaking by a
          broker to deliver promptly to VGI sufficient funds to pay the exercise
          price or such withholding obligation, as the case may be;

     (d)  by the surrender for cancellation of options to purchase such number
          of shares of stock of VGI as is equal to

          (i)   the amount of such exercise price or withholding obligation, as
                the case may be, divided by

          (ii)  the fair market value on the date of exercise of one share of
                stock minus the exercise price of one share of stock under the
                option so cancelled; or

     (e)  by any combination of the above permissible forms of payment,

provided, however, that the Executive may not use shares issued or issuable upon
exercise of the Options in payment of the exercise price or satisfaction of the
withholding obligation, as the case may be, unless and until such shares have
been or are capable of being released from escrow pursuant to the Escrow
Agreement at the time of exercise or satisfaction. Whether or not they were ever
issued, the number of shares previously subject to the Escrow Agreement that
have, pursuant to this Section 6.4, been used as payment for the exercise price
or satisfaction of the withholding obligation, as the case may be, shall not
thereafter be available for release from escrow.

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                                    ARTICLE 7

                               CONTRACT PROVISIONS

7.1  HEADINGS

The headings of the Sections herein are inserted for convenience of reference
only and shall not affect the meaning or construction hereof.

7.2  WITHHOLDING

All payment under this Agreement shall be subject to withholding of such
amounts, if any, relating to tax or other payroll deductions as the Employer may
reasonably determine and should withhold pursuant to any applicable law or
regulation.

7.3  COUNTERPARTS

This Agreement may be executed in counterparts, each of which shall be deemed to
be an original but all of which together shall constitute one and the same
instrument.

7.4  WAIVER

The failure of any party to enforce its rights under this Agreement at any time
for any period shall not be construed as a waiver of such rights and a waiver
shall only be construed as such if made in writing signed by a duly authorized
representative of the waiving party.

7.5  SEVERABILITY

If any provision of this Agreement or application of any such provision to any
person or circumstances shall be invalid under the law of any jurisdiction the
remainder of this Agreement or the application of such provision to persons or
circumstances other than those as to which it is invalid shall not be effected
thereby. In the event a court of competent jurisdiction rules any

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provision of this Agreement to be invalid, then such ruling shall have no effect
on the remaining provisions of this Agreement and they shall continue in full
force and effect.

7.6  ENTIRE AGREEMENT

This Agreement, together with SCHEDULES "A" and "B", contains the entire
contract of Employment between the parties hereto and supersedes and replaces
all previous negotiations, understandings and agreements whether verbal or
written with respect to any matters herein referred to, including the agreement
between the parties effective April 1, 1999.

7.7  GOVERNING LAW

Except as otherwise provided in Article 4, this Agreement shall be governed by
and construed in accordance with the laws of the Province of Ontario and the
laws of Canada applicable therein. Except as otherwise provided in Article 4,
each of the parties hereby irrevocably attorns to the jurisdiction of the courts
of the Province of Ontario with respect to any matters arising out of this
Agreement.

7.8  SURVIVAL

The provisions of Articles 2, 3, 4, 5 and 6 hereof shall survive the termination
of this Agreement for the periods of time specified or contemplated therein.

7.9  DIRECTORS AND OFFICERS

If the Executive is a director or officer at the relevant time, the Executive
agrees that after termination of his employment with the Employer for any
reason, he will, on the date of his termination, tender his resignation from any
position he may hold as an officer or director of the Employer or any of its
affiliated or associated companies.

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7.10 TAX EQUALIZATION

The Employer agrees to pay a cost of living supplement, such supplement to
include an equalization payment to be made by the Employer in the event that the
net after tax income in respect of the Executive's employment pursuant to the
Secondment Agreement is less than the net after tax income which would have
resulted had all the Executive's salary and any sums paid by way of bonus been
taxed only in the jurisdiction in which they would otherwise have been taxed,
but for the Executive's secondment pursuant to the Secondment Agreement. Such
equalization payment shall be in an amount such that, after tax, it will equal
the shortfall in net after tax income.

                                    ARTICLE 8

                                 MISCELLANCEOUS

8.1  NO BREACH OF THIRD PARTY AGREEMENT

The Executive covenants and acknowledges with the Employer that by entering into
this Agreement he will not be in breach of any agreement with any third party.

8.2  INDEMNIFICATION AGREEMENT

The Employer and Executive have entered into an Indemnification Agreement
attached hereto as SCHEDULE "B".

8.3  ARBITRATION

Any dispute, controversy, claim or difference between the parties hereto arising
out of Article 3 hereof including questions of fact, procedures, practices or
standards relevant to Article 3 hereof which cannot be resolved or settled by
the parties, shall be settled and determined by arbitration. The provisions of
this Section shall be deemed to constitute a "submission within the meaning of

                                       34
<Page>

the ARBITRATIONS ACT (Ontario) (the "Act") and the provisions of the Act, except
to the extent that a contrary intention is expressed herein, shall apply to any
arbitration hereunder. Either party may at any time give written notice to the
other of its desire to submit such dispute to arbitration stating with
reasonable particularity the subject matter of such dispute. Within five (5)
business days after receipt of such notice, the parties shall appoint a single
arbitrator with appropriate experience to determine such dispute. If the parties
fail to appoint an arbitrator, either party may apply to a Judge of the Superior
Court of Ontario to appoint an arbitrator to determine such dispute. The
arbitrator so appointed shall forthwith proceed to arbitrate the dispute. The
award of the arbitrator shall be delivered to the parties within sixty (60) days
of his appointment. The costs of the arbitration shall be paid as determined by
the arbitrator. Notwithstanding anything to the contrary contained in the Act,
the award of the arbitrator shall be final and binding upon the parties and all
persons claiming through or under them. An award of the arbitrator shall be in
substitution for and precludes either party or any person claiming through or
under a party to bring any suit, action or other proceeding in any court of law
or equity against either party or any person claiming through or under a party
or against the arbitrator in respect of any matter for which arbitration is
herein provided. Judgment upon the award rendered by the arbitrator may be
entered in any court having jurisdiction and thereupon execution or other legal
process may issue thereon. The parties hereto and all persons claiming through
or under them hereby attorn to the jurisdiction of the arbitrator and to the
jurisdiction of any court in which the judgment may be entered. Arbitration may
not be waived except upon delivery by the parties of a written notice to that
affect.

                                       35
<Page>

8.4  NOTICES

Notices and all other communications contemplated by this Agreement shall be in
writing and shall be deemed to have been duly given when personally delivered by
either FedEx or other reputable overnight courier service or by registered or
certified U.S. mail, return receipt requested. In the case of the Executive,
mailed notices shall be addressed to him at the home address which he most
recently communicated to the Employer in writing. In the case of the Employer,
mailed notices shall be addressed to its corporate headquarters, and all notices
shall be directed to the attention of its President, with a copy to Visible
Genetics Inc., 700 Bay Street, Toronto, Ontario, M5G 1ZG Canada, attention:
General Counsel. All notices to VGI shall be delivered to the foregoing address.
Notices shall be deemed delivered and received upon receipt or refusal of
receipt.

                                       36
<Page>

          This Agreement is binding upon and is for the benefit of the parties
and their respective successors.

          IN WITNESS OF WHICH the Parties have duly executed this Agreement.

                                     VISIBLE GENETICS INC.

                                     By:
                                        ----------------------------------------
                                        Name:
                                        Title:

                                     By:
                                        ----------------------------------------
                                        Name:
                                        Title:

                                     VISIBLE GENETICS CORP.

                                     By:
                                        ----------------------------------------
                                        Name:
                                        Title:

                                     -------------------------------------------
                                        Name:
                                        Title:

                                     EXECUTIVE

                                     -------------------------------------------
                                     Richard T. Daly

                                       37

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