**EXHIBIT        4.12**

**AMENDMENT NO.** **1**

THIS        AGREEMENT made the 20th day of March, 2008.

BETWEEN:

ONCOLYTICS BIOTECH INC.

(“Oncolytics”)

 

- and        -

 

MARY ANN        DILLAHUNTY

(the        “Employee”)

WHEREAS Oncolytics and the Employee entered into an Employment Agreement        dated the 12th day of January, 2007, as amended pursuant to Amending Agreement #1        dated December 3, 2007 (the “Employment Agreement)”

AND WHEREAS the parties wish to amend the Employment Agreement;

NOW THEREFORE the parties agree as follows:

Section 1 –Amendments

The Employment Agreement is hereby amended:

|   | (a) | by replacing Section 3(1) with the following: |
|--------|-----|----------------------------------------------------|

“Commencing January 1, 2008, Oncolytics shall pay to the Employee        a salary of TWO HUNDRED THIRTY-ONE THOUSAND SEVEN HUNDRED AND FIFTY UNITED STATES DOLLARS        (US$231,750.00) per annum, exclusive of bonuses, benefits and other compensation, payable        in equal installments of NINETEEN THOUSAND THREE HUNDRED TWELVE UNITED STATES DOLLARS AND        FIFTY CENTS (US$19,312.50) on the last day of each month.”

|   | (b) | by replacing Section 4 with the following: |
|--------|-----|-------------------------------------------------|

“The Employee shall be entitled to payment in lieu of employment        benefits (medical, dental, etc,) of a total of TWENTY EIGHT THOUSAND SEVEN HUNDRED        AND

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FIFTY-FIVE UNITED STATES DOLLARS (US$28,755.00) annually, payable pro rata        with the Employee’s monthly payment of salary.”

Section 2 - Effective Date

 

| (1) | This Amending Agreement shall be effective from and after                    January 1, 2008. |
|-----|----------------------------------------------------------------------------------------------------|

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

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/ Doug        Ball                                                  

|   | Doug Ball               |   |
|--------|-------------------------|--------|
|   | Chief Financial Officer |

 

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

-2-

 

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