**EXHIBIT        4.8**

**AMENDING AGREEMENT NO.** **1**

THIS        AGREEMENT made the 3rd day of December, 2007,

BETWEEN:

ONCOLYTICS BIOTECH INC.

(“Oncolytics”)

 

- and        -

 

MARY ANN        DILLAHUNTY

(“Dillahunty”)

WHEREAS Oncolytics and Dillahunty entered into an Employment Agreement dated        the 12th day of January 12, 2007 (the “Employment        Agreement”);

AND WHEREAS the parties wish to amend the Employment Agreement;

NOW THEREFORE the parties agree as follows:

Section        1 - Amendments

| (1) | The Employment Agreement is hereby amended as                    follows: |
|-----|---------------------------------------------------------------------------|

|   | (a) | Section 3(1) is amended to increase the annual salary to                    TWO HUNDRED TWENTY-FIVE THOUSAND (US $225,000) UNITED STATES DOLLARS per annum                    exclusive of bonuses, benefits and other compensation, payable in equal                    installments of EIGHTEEN THOUSAND SEVEN HUNDRED FIFTY (US $18,750) UNITED                    STATES DOLLARS on the last day of each month. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Section 4 is amended to increase the payment in lieu of                    employment benefits to a total value of TWENTY-FIVE THOUSAND SEVEN HUNDRED                    FIFTY-FIVE (US $25,755) UNITED STATES DOLLARS annually. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Schedule ”A” is amended by replacing the last                    sentence with the following: |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

         

“The Employee shall perform the employment duties on a part-time basis        for three-quarters (314) of normal working hours and days which on the average shall be 39        weeks per year.”

Section        2 - Effective Date

| (1) | This Amending Agreement shall be effective from and after                    November 1, 2007. |
|-----|-----------------------------------------------------------------------------------------------------|

| (2) | In all other respects the parties confirm that the Employment                    Agreement, as amended, shall remain in full force and effect. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

 

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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/ B.        Thompson                                    

|   | [Name]  Thompson               |
|--------|-------------------------------------|
|   | [Title]     CEO |   |

         

         

Per:      /s/ D.A.        Ball                                            

|   | [Name]  Doug Ball        |
|--------|-------------------------------|
|   | [Title]    CFO |   |

 

|                                                                                                |                                                                                                                                                                                                                     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| /s/ T. Gene                    Dillahunty                                                                                                                                                                                                                                                    | /s/ Mary Ann                    Dillahunty                              |
| WITNESS                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                          | MARY ANN DILLAHUNTY |

 

 

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