**EXHIBIT        4.5**

**EXECUTIVE EMPLOYMENT AGREEMENT**

**THIS AGREEMENT**made the 29th day of May,        2007.

BETWEEN:

ONCOLYTICS BIOTECH INC.

(“Oncolytics”)

 

-and-

 

KARL L.        METTINGER, M.D., Ph.D.

(the        “Employee”)

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

AND WHEREAS Oncolytics has employed the Employee since September 21,        2005;

AND WHEREAS Oncolytics and the Employee wish to 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 September 21,                    2005; |
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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

**Section 2 - Employment**

| (1) | Oncolytics agrees to employ the Employee in the position of                    Chief Medical Officer and the Employee accepts the employment, starting on the                    Commencement Date. |
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| (2) | The Employee shall perform the duties and responsibilities                    associated with the position of Chief Medical 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 Medical 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 AND NINE THOUSAND ($US309,000.00) UNITED                    STATES DOLLARS per annum, exclusive of bonuses, benefits and other                    compensation, payable in equal installments of TWENTY-FIVE THOUSAND SEVEN                    HUNDRED FIFTY ($US25,750.00) UNITED STATES DOLLARS on last day of each month.                    The Employee shall be eligible for a bonus payment of not more than fifty (50%)                    percent of the annual base salary based upon mutually agreed corporate and                    personal objectives. |
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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 reasonable                    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)                    and the Canada Pension Plan. |
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**Section 4 - Benefits**

The Employee shall be entitled to payment in lieu of employment benefit        (medical, dental, etc.) of a total value of $US 34,880.00 annually.

**Section 5 - Vacations**

The Employee shall, in addition to all statutory holidays, be entitled to a        twenty (20) days 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 the Employee’s office in Berkeley, California, and        Oncolytics’ offices located in the City of Calgary, Alberta, Canada, with the        exception that the Employee may on occasion be required to attend meetings at other        sites.

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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. |
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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. |
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-6-

**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. |
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| (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 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. |
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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, and: |
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|   | (a) | the termination occurs prior to the third anniversary of the                    Commencement Date, the Employee shall be entitled to severance payment equal to                    six (6) months salary; or |
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|   | (b) | the termination occurs on or after the third anniversary of the                    Commencement Date, the Employee shall be entitled to severance payment equal to                    nine (9) months salary. |
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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) and        agreed to by Oncolytics. The pay in lieu of notice as provided pursuant to this Section        9(4) shallinclude 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 notice or payment in                    lieu thereof, in accordance with Section 9(4) or 9(5) shall be and is                    conclusively deemed to be reasonable notice for 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 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; 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 an 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:

|   | TO:                                                              | Oncolytics   |   |
|--------|------------------------------------------------------------------|--------------|--------|
|   | ONCOLYTICS                    BIOTECH INC.                       |         |
|   | Suite 210,                    1167 Kensington Crescent N.W. |
|   | Calgary, Alberta                    T2N 1X7                      |         |
|   | Attention:                    President                          |         |
|   | TO:                                                              | The Employee |   |
|   | Karl L.                    Mettinger, M.D., Ph.D.           |         |
|   | 1367                    La Loma Avenue                      |         |
|   | Berkeley, CA                    94708                            |         |
|        |                                                                  |              |        |  |  |  |  |  |  |

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        postaldisruption) 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 enure to the benefit of and be binding upon the parties        hereto and:

|   | (a) | in the case of Oncolytics, its successors and permitted assigns;                    and |
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|   | (b) | in the case of the Employee, his 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/        Brad Thompson                                       

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

         

         

Per:     /s/ Doug        Ball                                                 

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

         

|                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| /s/  Doug                    Ball                                                                                                                                                                                                                                                                                               | /s/ Karl L.                Mettinger                                                                                    |
| Witness                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                        | KARL L. METTINGER, M.D., Ph.D. |

 

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**SCHEDULE** **”A”**

**JOB        DESCRIPTION**

The Employee shall perform the duties and responsibilities associated with        the position of Chief Medical Officer, and without limiting the generality of the        foregoing, shall provide guidance and assistance to Oncolytics related to:

|   | 1.             | discussions concerning clinical and regulatory                    strategy;                                                                      |   |
|--------|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   | 2.             | discussions with clinical oncologists concerning clinical trial                    structure: and                                                |
|        | 3.        | preparation for and attendance at meetings with appropriate                regulatory authorities; and                                           |
|        | 4,   | acting as one of Oncolytics’ representatives for                    communications with the U.S. FDA and other regulatory agencies.
  |

 

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