**EXHIBIT        4.7**

**EXECUTIVE EMPLOYMENT AGREEMENT**

**THIS AGREEMENT**made the 6th day of June,        2007.

BETWEEN:

ONCOLYTICS BIOTECH INC.

(“Oncolytics”)

 

-and-

 

BRADLEY        GEORGE THOMPSON

(the        “Employee”)

WHEREAS Oncolytics is engaged in the business of developing pharmaceutical        products;

AND WHEREAS Oncolytics and the Employee entered into an Employment Agreement        dated July 22,1999, which has been amended;

AND WHEREAS Oncolytics and the Employee wish to further amend and restate        the terms of employment pursuant to this Agreement;

NOW THEREFORE the parties agree as follows:

**Section 1 - Definitions and Interpretation**

|   | (1) | In this Agreement the following defined terms shall have the                    meanings indicated: |
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|   | (a) | “Business” means the business currently carried on                    by Oncolytics, which is the development, testing, marketing and sale of                    pharmaceutical. products together with such additional business as Oncolytics                    may decide to undertake from time to time; |
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|   | (b) | “Commencement Date” means July 22,                    1999; |
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|   | (c) | “Confidential Information” means all confidential                    information of Oncolytics and includes: |
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|   | (i) | any data or information directly or indirectly related to the                    Business or arising directly or indirectly in the course of, or derived from                    the Employee’s employment with Oncolytics whether related to products,                    equipment, inventions, ideas, designs, methods, systems, improvements,                    processes, research or otherwise; |
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|   | (ii) | any of Oncolytics’ technical or scientific                    know-how; |
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|   | (iii) | financial and sales information, customer lists, pricing                    policies, lists of suppliers, proprietary computer programs in any format                    whatsoever, programming techniques, the manner of plans or methods of operation                    and the like relating to the Business; |
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|   | (iv) | patent applications, drawings, blueprints, manuals, letters,                    notebooks, reports and all other materials (written or otherwise) related to                    the Business or to the agents, joint venturers or contractors of Oncolytics;                    and |
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|   | (v) | any information provided to or received by Oncolytics on a                    confidential basis; |
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|   | (d) | “Good Reason” means any one of the following events                    occurring on or after the Commencement Date: |
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|   | (i) | any reduction in the Employee’s then existing annual base                    compensation and benefits, unless comparable reductions are made for all other                    executive employees of Oncolytics; |
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|   | (ii) | any material diminution of the Employee’s duties,                    responsibilities, authority or reporting structure, excluding for this purpose                    an isolated or inadvertent action not taken in bad faith which is remedied by                    Oncolytics immediately after notice thereof is given by the                    Employee; |
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|   | (iii) | any request that the Employee relocate to a work site that would                    increase the Employee’s one-way commute distance by more than eighty (80)                    kilometers from the Employee’s then principal residence, unless the                    Employee accepts such relocation opportunity; or |
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|   | (iv) | any material breach by Oncolytics of its obligations under this                    Agreement that is not remedied within thirty (30) days of written notice of                    such breach from the Employee; |
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|   | (e) | “Intellectual Property” means all information, data,                    designs, processes, software, algorithms and inventions, including those that                    may be the subject of patent, copyright, industrial design, trademarks, trade                    secret or other forms of legal protection, made, conceived or developed by the                    Employee during the term of employment with Oncolytics, whether alone or                    jointly with others and whether during or after regular working hours, that                    relates to or in any way pertains to or connects with any matter developed, or                    under investigation or development by Oncolytics or related to the                    Business; |
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|   | (f) | “Termination Event” means: |
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|   | (i) | breach by the Employee of any material provision of this                    Agreement; |
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|   | (ii) | material violation by the Employee of any statutory or common                    law duty of loyalty to Oncolytics; |
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|   | (iii) | the commission of an indictable offence by the Employee against                    Oncolytics; and |
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|   | (iv) | personal or professional conduct of the Employee which in the                    reasonable and good faith judgment of Oncolytics may significantly injure                    Oncolytics’ Business or interfere with the Employee’s job                    performance. |
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|   | (2) | This Agreement shall be governed by and construed in accordance                    with the laws in force in the Province of Alberta. The parties hereby submit to                    the jurisdiction of the Courts of Alberta. |
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|   | (3) | The parties shall with reasonable diligence take all action, do                    all things, attend or cause their representatives to attend all meetings and                    execute all further documents, agreements and assurances as may be required                    from time to time in order to carry out the terms and conditions of this                    Agreement in accordance with their true intent. |
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|   | (4) | The following schedule is attached to and forms part of this                    Agreement: |
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|   | Schedule ”A” – Job Description |
|--------|-------------------------------------------------------|
|   | Schedule ”B” – Benefits        |   |

**Section 2 - Employment**

|   | (1) | Oncolytics confirms the employment of the Employee in the                    position of President and Chief Executive Officer, which started on the                    Commencement Date. |
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|   | (2) | The Employee shall perform the duties and responsibilities                    associated with the position of President and Chief Executive Officer,                    including those set out on the Job Description attached as                    Schedule ”A”. The Employee may, from time to time, be assigned                    or undertake additional duties and responsibilities consistent with those                    generally appropriate for a President and Chief Executive Officer, and the                    Employee’s duties and responsibilities may be modified or expanded from                    time to time. |
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|   | (3) | The Employee shall perform the duties and responsibilities set                    out in Section 2(2): |
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|   | (a) | diligently, faithfully and to the best of the Employee’s                    ability; and |
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|   | (b) | in the best interests of Oncolytics |
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|   | (4) | The Employee shall comply with the terms, conditions and                    requirements of Oncolytics’ Policy Manual, as the same may be amended,                    revised or added to from time to time. |
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**Section 3 - Remuneration**

|   | (1) | Commencing January 1, 2007, Oncolytics shall pay to the                    Employee a salary of THREE HUNDRED SIXTY FOUR THOUSAND SIX HUNDRED EIGHTY ONE                    ($364,681) CANADIAN DOLLARS per annum, exclusive of bonuses, benefits and other                    compensation, payable in equal installments of FIFTEEN THOUSAND ONE HUNDRED                    NINETY-FIVE CANADIAN DOLLARS and FIVE CENTS ($15,195.05) on the 15th and last                    day of each month. |
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|   | (2) | Oncolytics shall, on or before the anniversary date of this                    Agreement in each year, evaluate and set the Employee’s salary for the                    next ensuing year. |
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|   | (3) | Oncolytics shall reimburse the Employee for all out-of-pocket                    expenses incurred by the Employee in the performance of the Employee’s                    obligations under this Agreement, subject to Oncolytics’ policies then in                    force. |
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|   | (4) | Oncolytics shall be entitled to withhold from any payments made                    to the Employee any amounts that Oncolytics is required to withhold pursuant to                    any Act in force that relates to income tax, unemployment insurance premiums or                    pension plan premiums in any jurisdiction under which such payments are                    required to be made by or on behalf of the Employee, including, without                    limitation, the Income Tax Act (Canada), the Employment Insurance Act (Canada),                    the Canada Pension Plan. |
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**Section 4 - Benefits**

The Employee shall be entitled to participate in benefit plans described in        Schedule ”B” and in other benefit plans instituted by Oncolytics from time        to time.

**Section 5 - Vacations**

The Employee shall, in addition to all statutory holidays, be entitled to        twenty (20) days paid vacation during each twelve (12) month period of employment under        this Agreement. The Employee’s vacation time shall be governed by applicable policies        of Oncolytics.

**Section 6 - Place of Employment**

The Employee shall perform the majority of the Employee’s employment        obligations from and out of Oncolytics’ offices located in the City of Calgary,        Alberta, Canada.

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**Section 7 - Confidential Information**

 

|   | (1) | The Employee confirms that the Confidential Information is the                    sole and exclusive property of Oncolytics and is held by the Employee in trust                    for the benefit of Oncolytics. The Employee shall use the Employee’s best                    efforts and exercise utmost diligence to protect and safeguard the Confidential                    Information. Neither during the period of employment by Oncolytics nor                    thereafter for a period of three years shall the Employee, directly or                    indirectly, use or disclose to any other person any Confidential Information,                    whether or not acquired, learned or obtained or developed by the Employee alone                    or in conjunction with others, except as such disclosure or use may be required                    in connection with the employment with Oncolytics or as may be agreed to in                    writing by Oncolytics. |
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|   | (2) | Subsection 7(1) shall not apply to Confidential Information                    that: |
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|   | (a) | is in the public domain at the time of its disclosure, or which,                    after disclosure, becomes part of the public domain other than by disclosure by                    the Employee; |
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|   | (b) | the Employee can show was in the Employee’s possession at                    the time of disclosure and was not acquired from Oncolytics; or |
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|   | (c) | was received by the Employee from a third party without a                    covenant of confidentiality, provided such third party is under no obligation                    of confidentiality with respect to the Confidential Information. |
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|   | (3) | The Employee shall keep informed of Oncolytics’ policies                    and procedures for safeguarding Oncolytics’ property including, without                    limitation, the Confidential Information and the confidentiality thereof, and                    will strictly comply therewith at all times. The Employee shall not, except as                    required in the course of the employment with Oncolytics, remove from                    Oncolytics’ premises any Oncolytics property including, without                    limitation, Confidential Information. The Employee shall, immediately upon                    termination of employment with Oncolytics, return to Oncolytics all of                    Oncolytics’ property in the Employee’s possession, including,                    without limitation, all tangible parts of or relating to the Confidential                    Information as is in the Employee’s possession or under the                    Employee’s control without retaining any copies or record thereof or any                    other mechanical means that, alone or in combination with other means, would                    permit the Employee to reproduce or make available the Confidential                    Information. |
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|   | (4) | The Employee shall advise any future employer, associate or                    affiliate that the Employee has signed this Agreement and is bound by its terms                    and conditions. |
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**Section 8 - Intellectual Property**

|   | (1) | The Employee confirms that any and all Intellectual Property                    shall be the sole and exclusive property of Oncolytics and shall be assigned by                    the Employee to Oncolytics. The Employee agrees to disclose promptly to                    Oncolytics or its nominee any |
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nominee any and all Intellectual Property and to execute written assignments        of the Employee’s right, title and interest in and to the Intellectual Property to        Oncolytics or its nominee.

|   | (2) | With respect to any Intellectual Property, the Employee also                    agrees: |
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|   | (a) | to assist Oncolytics or its nominee in preparing any necessary                    copyright and patent applications, including Canadian and foreign applications,                    covering the Intellectual Property; |
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|   | (b) | to sign and deliver all such applications and their assignment                    to Oncolytics or its nominee; and |
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|   | (c) | generally to give all information and testimony, to co-operate                    with Oncolytics and its solicitors, to sign all lawful papers, and to do all                    lawful things that may be needed or requested by Oncolytics to obtain, extend,                    reissue, maintain or enforce Canadian and foreign copyrights or patents                    covering the Intellectual Property. |
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|   | (3) | Oncolytics shall bear all expenses that are incurred in                    obtaining, extending, reissuing, maintaining and enforcing any and all                    copyrights or patents in respect of the Intellectual Property assigned to                    Oncolytics by the Employee, and in the vesting and perfecting of title thereto                    in Oncolytics and shall pay the Employee reasonable compensation for any time                    that Oncolytics may require the Employee to expend in order to accomplish the                    above subsequent to the termination of employment with Oncolytics. |
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|   | (4) | The Employee hereby waives in favour of Oncolytics, all moral                    rights in any and all copyright works authored or co-authored by the Employee                    during the term of this Agreement that directly relate to the Business of                    Oncolytics. |
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**Section 9 - Term and Termination**

|   | (1) | The Employee’s employment under this Agreement shall                    commence on the Commencement Date and shall continue until terminated in                    accordance with this Section 9. |
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|   | (2) | Subject to Sections 9(3), (4) and (5), and notwithstanding                    any other provision contained herein to the contrary, the employment                    relationship between the Employee and Oncolytics arising out of this Agreement                    shall terminate upon forty-five (45) days notice being given to Oncolytics by                    the Employee or immediately upon notice being given to the Employee by                    Oncolytics. |
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|   | (3) | If Oncolytics is entitled to terminate this Agreement as the                    result of a Termination Event, Oncolytics shall not be required to compensate                    the Employee in respect of such termination or provide any period of notice in                    lieu of compensation with respect to such termination. |
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|   | (4) | Subject to Section 9(5), if this Agreement is terminated by                    Oncolytics at any time other than pursuant to Section 9(3), or if this                    Agreement is terminated by the Employee for Good Reason, the Employee shall be                    entitled to severance payment equal to eighteen (18) months salary. Such                    severance compensation shall be paid to the Employee so as to maximize any                    reduction in income tax payable thereon as permitted by the Income Tax Act                    (Canada). The severance payment as provided pursuant to this Section 9(4)                    shall include an amount equal to the value of all benefits to which the                    Employee would otherwise have been entitled during the notice                    period. |
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|   | (5) | Notwithstanding Section 9(4), if there is a change of                    control of Oncolytics, as defined herein, and if this Agreement is terminated                    by Oncolytics at any time within one (1) year following the change of control                    other than pursuant to Section 9(3), the Employee shall be entitled to                    severance payment equal to twice that determined pursuant to Section 9(4).                    Such severance compensation shall be paid to the Employee so as to maximize any                    reduction in income tax payable thereon as permitted by the Income Tax Act                    (Canada). |
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For the purposes of this Section 9(5), “change of control”        means any amalgamation, merger or other corporate reorganization which results in any        change in the present effective voting control of Oncolytics, or will result in a change of        the person or persons who own or control sufficient voting shares in Oncolytics to elect a        majority of the directors of Oncolytics, or will result in a person acquiring sufficient        voting shares in Oncolytics to elect a majority of the directors of Oncolytics.

|   | (6) | The Employee acknowledges and agrees that payment in lieu of                    notice in accordance with Section 9(4) or 9(5) shall be and is                    conclusively deemed to be reasonable compensation for termination of this                    Agreement and hereby waives any claim or potential claim that the Employee now                    has or may hereafter have, against Oncolytics for further severance                    compensation or notice other than that provided by the terms of this                    Agreement. |
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|   | (7) | The Employee confirms that: |
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|   | (a) | any breach of this Agreement or unauthorized disclosure of                    Confidential Information may result in irreparable harm to the Business of                    Oncolytics and considerable monetary damages to Oncolytics; |
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|   | (b) | the damages suffered by Oncolytics may be difficult to                    establish; and |
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|   | (c) | interim and permanent injunctions may be the only suitable                    remedy for Oncolytics; |
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but nothing herein shall in any way limit or restrict any other remedies        available to Oncolytics at law or in equity including an action for damages.

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|   | (8) | Termination of the Employee’s employment with Oncolytics                    for any reason whatsoever shall not terminate the Employee’s obligations                    under Sections 7, 8 and 10 of this Agreement. |
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**Section 10 - Non-Competition**

|   | (1) | The Employee shall not, during the term of this Agreement,                    engage, hold an interest in or have any involvement, either directly or                    indirectly, in any business entity, venture or undertaking if such would                    materially interfere with or conflict with the Employee’s duties and                    obligations to Oncolytics as provided for under this Agreement, provided that                    the acquisition of a non-control position in publicly traded companies will not                    contravene this Section. |
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|   | (2) | The Employee shall not, during the term of this Agreement, and                    for a period of one (1) year following the termination or expiration of this                    Agreement, either individually or in partnership or jointly or in conjunction                    with any person, firm or corporation as principal, employee, partner, director                    or as a shareholder or investor (if actually involved in the management of a                    business which is competitive with the Business of Oncolytics) carry on or be                    engaged in any business which is directly competitive with the Business of                    Oncolytics. |
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|   | (3) | The parties agree that all of the restrictions contained in                    Subsection 10(2) hereof are reasonable and valid, and that all defences to                    the strict enforcement thereof by Oncolytics are hereby waived by the                    Employee. |
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|   | (4) | The Employee agrees that the remedy at law for any breach by the                    Employee of the provisions of this Section 10 may be inadequate and that                    in the event of such breach, Oncolytics may make an application to a court of                    competent jurisdiction for an order granting Oncolytics temporary, permanent or                    both kinds of injunctive relief against the Employee, without the necessity of                    proving actual damage to Oncolytics. |
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|   | (5) | The Employee agrees that any waiver by Oncolytics of a breach of                    this Agreement by the Employee shall only be a waiver with respect to the                    particular breach giving rise to the waiver. |
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**Section 11 - Notices**

All notices, reports, invoices, payments and formal communications        (collectively referred to as “Notices”) required or permitted to be given        hereunder shall be in writing and shall be delivered personally or sent by prepaid        registered mail or facsimile transmission to the following address or such other address as        the relevant party may notify from time to time:

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|   | TO:  Oncolytics |
|--------|---------------------------|

|   | ONCOLYTICS                BIOTECH INC.                Suite 210, 1167 Kensington Crescent N.W.                Calgary, Alberta                T2N                Attention:  President |
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|   | TO:  The                Employee |
|--------|--------------------------------------------|

|   | Bradley George                Thompson1                775 - 7th Avenue N.W.                  Calgary, Alberta                T2N 025 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

Notices        sent by prepaid registered mail shall be deemed to be received by the addressee on the        seventh day (excluding Saturdays, Sundays, Statutory Holidays and any period of postal        disruption) following the mailing thereof. Notices personally served shall be deemed to be        received when actually delivered, provided such delivery shall be during normal business        hours.

**Section 12 - Enurement**

This Agreement shall:

|   | (a) | replace and supercede the Employment Agreement dated                    July 22, 1999, and all amendments thereto; and |
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|   | (b) | enure to the benefit of and be binding upon the parties hereto                    and: |
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|   | (i) | in the case of Oncolytics, its successors and permitted assigns;                    and |
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|   | (ii) | in the case of the Employee, her heirs, executors,                    administrators or other personal representatives. |
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IN WITNESS WHEREOF the parties have executed this Agreement as of the day        and year first above written.

**ONCOLYTICS BIOTECH INC.**

         

Per:     /s/ Doug        Bell                                                             

|   | Doug Bell               |   |
|--------|-------------------------|--------|
|   | Chief Financial Officer |

         

         

Per:              /s/ Fred        Steward                                                       

|   | Fred Stewart |
|--------|--------------|
|   | Director     |   |

         

|                                                                                                |                                                                                                                                                                                                                                                                                       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| /s/ Debbie                    Burgess                                                                                                                                                                                                                                                                                                | /s/ Bradley George                Thompson                                         |
| Witness                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                            | **BRADLEY GEORGE THOMPSON** |

 

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**SCHEDULE** **”A”**

**JOB        DESCRIPTION**

The        Employee shall perform the duties and responsibilities associated with the position of        President and Chief Executive Officer.

 

 

 

A-1

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**SCHEDULE** **”B”**

**BENEFITS**

| (1) | Oncolytics shall: |
|-----|-------------------|

(a)          pay the Employee Health Care Premiums for the Employee; and the        Employee’s spouse and dependent children; and

(b)          annually, pay to the Employee’s Registered Retirement Savings Plan, as        directed by the Employee, an amount equal to ten (10%) percent of the Employee’s        annual salary as set out in Section 3(1), not to exceed the annual maximum allowable        contribution.

(2)          The Employee is presently entitled to designate an additional amount equal        to a maximum six (6%) percent of the Employee’s annual salary to be paid by        Oncolytics, on a monthly basis, into an Employee Health Trust in accordance with the        provisions of the Employee Health Trust Plan currently in place, and as such provisions may        be revised from time to time.

 

B-1

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