EXHIBIT
        4.6

EXECUTIVE EMPLOYMENT AGREEMENT

THIS AGREEMENT made the 30th day of May,
        2007

BETWEEN:

ONCOLYTICS BIOTECH INC.

(“Oncolytics”)



-and-



DOUGLAS
        BALL

(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 May 16, 2000, 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:
|--- | ----------------------------------------------------------------------------------------------------

| | (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;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | “Commencement Date” means
                    May 16,2000;
| | --- | ----------------------------------------------------------

| | (c) | “Confidential Information” means all confidential
                    information of Oncolytics and includes:
| | --- | -------------------------------------------------------------------------------------------------------------

| | (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;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (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;
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (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
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v) | any information provided to or received by Oncolytics on a
                    confidential basis;
| | --- | --------------------------------------------------------------------------------------------------

| | (d) | “Good Reason” means any one of the following events
                    occurring on or after the Commencement Date:
| | --- | --------------------------------------------------------------------------------------------------------------------

| | (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;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (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;
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (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
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (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;
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (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;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | “Termination Event” means:
| | --- | --------------------------

| | (i) | breach by the Employee of any material provision of this
                    Agreement;
| | --- | ---------------------------------------------------------------------------------------

| | (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
| | ----- | ---------------------------------------------------------------------------------------------------

| | (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.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(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.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(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.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | The following schedule is attached to and forms part of this
                    Agreement:
|--- | -------------------------------------------------------------------------------------------

Schedule ”A” – Job Description

| | Schedule ”B” – Benefits
| | -----------------------

Section 2 - Employment

|(1) | Oncolytics confirms the employment of the Employee in the
                    position of Chief Financial Officer, which started on the Commencement
                    Date.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | The Employee shall perform the duties and responsibilities
                    associated with the position of Chief Financial Officer, including those set
                    out on the Job Description attached as Schedule ”A”. The
                    Employee shall report to the President and CEO of Oncolytics. The Employee may,
                    from time to time, be assigned or undertake additional duties and
                    responsibilities consistent with those generally appropriate for a Chief
                    Financial Officer, and the Employee’s duties and responsibilities may be
                    modified or expanded from time to time.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | The Employee shall perform the duties and responsibilities set
                    out in Section 2(2):
|--- | -------------------------------------------------------------------------------------------------------

| | (a) | diligently, faithfully and to the best of the Employee’s
                    ability; and
| | --- | -----------------------------------------------------------------------------------------

| | (b) | in the best interests of Oncolytics.
| | --- | ------------------------------------

|(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.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 3 - Remuneration

|(1) | Commencing January 1, 2007, Oncolytics shall pay to the
                    Employee a salary of TWO HUNDRED FORTY-SIX THOUSAND TWO HUNDRED FORTY
                    ($246,240) CANADIAN DOLLARS per annum, exclusive of bonuses, benefits and other
                    compensation, payable in equal installments of TEN THOUSAND TWO HUNDRED SIXTY
                    ($10,260) CANADIAN DOLLARS 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.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(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.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(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.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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.

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:
|--- | -------------------------------------------------------------------------------------

| | (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;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | the Employee can show was in the Employee’s possession at
                    the time of disclosure and was not acquired from Oncolytics; or
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------

| | (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.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(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.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(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.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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 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:
|--- | ----------------------------------------------------------------------------------------

| | (a) | to assist Oncolytics or its nominee in preparing any necessary
                    copyright and patent applications, including Canadian and foreign applications,
                    covering the Intellectual Property;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | to sign and deliver all such applications and their assignment
                    to Oncolytics or its nominee; and
| | --- | --------------------------------------------------------------------------------------------------------------------

| | (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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| | (d) | 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.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | The Employee hereby waives in favour of Oncolytics, ail 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.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(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.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(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.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(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 twelve (12) 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.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(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.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(7) | The Employee confirms that:
|--- | ---------------------------

| | (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;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | the damages suffered by Oncolytics may be difficult to
                    establish; and
| | --- | -----------------------------------------------------------------------------------------

| | (c) | interim and permanent injunctions may be the only suitable
                    remedy for Oncolytics; 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.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(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.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(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.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(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.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(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.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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:

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

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

| | TO:  The
                Employee
| | ---------------------------------

| | Douglas
                Ball
                78 Evergreen Terrace SW
                Calgary, Alberta
                T2Y 2V9
| | -----------------------------------------------------------------------------------------------------------------------------

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
                    May 16, 2000, and all amendments thereto; and
| | --- | ----------------------------------------------------------------------------------------------------------------------



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| | (b) | enure to the benefit of and be binding upon the parties hereto
                    and:
| | --- | ---------------------------------------------------------------------------------------

| | (i) | in the case of Oncolytics, its successors and permitted assigns;
                    and
| | --- | ----------------------------------------------------------------------------------------

| | (ii) | in the case of the Employee, her heirs, executors,
                    administrators or other personal representatives.
| | ---- | ------------------------------------------------------------------------------------------------------------------------

IN WITNESS WHEREOF the parties have executed this Agreement as of the day
        and year first above written.

ONCOLYTICS BIOTECH INC.



Per:
        /s/ Brad
        Thompson

| | Brad Thompson   | 
| | --------------- | 
| | President & CEO





Per:
        /s/
        Matt Coffee

| | Matt Coffey              | 
| | ------------------------ | 
| | Chief Scientific officer



|                                    |                                 
|----------------------------------- | --------------------------------
|/s/
                    [Illegible] | /s/ Douglas
                Ball
|Witness                             |                                 





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SCHEDULE
        ”A”

JOB
        DESCRIPTION

The
        Employee shall perform the duties and responsibilities associated with the position of
        Chief Financial 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 of 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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