Document:

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                                                                  Exhibit 10.2.1

Dated: 29 August 2006

                               (1) BIOVEX LIMITED

                                       AND

                              (2) DR. GARETH BEYNON

                                   ----------

                                SERVICE AGREEMENT

                                   ----------

                                (WILMERHALE LOGO)

                                  Alder Castle
                                 10 Noble Street
                                London, EC2V 7QJ
                            Tel: +44 (0)20 7645 2400
                            Fax: +44 (0)20 7645 2424
                             Ref: DAA/0287572/00131

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THIS AGREEMENT is dated the 29th day of August 2006

BETWEEN:

(1)  BIOVEX LIMITED a company registered in England and Wales under registered
     number 03480520 with its registered office is at 70 Milton Park, Abingdon,
     Oxford, OX14 4RX (the "COMPANY"); and

(2)  DR. GARETH BEYNON of 1 Sotwell Manor, Bakers Lane, Brightwell-cum-Sotwell,
     Oxon OX10 0PX ("YOU/YOU").

1.   TITLE

     You will be employed by the Company as its Chief Executive Officer and you
     will report to the Board.

2.   JOB DUTIES

     You agree that you will:

2.1  devote the whole of your working time, attention and abilities to your
     duties for the Company, the Parent or their Group Companies under this
     agreement, unless you are absent from work due to ill health, incapacity,
     injury, authorised annual leave or at the Company's request;

2.2  faithfully and diligently perform your duties to the best of your ability,
     act in the best interests of the Company and its Group Companies at all
     times and use your best endeavours to promote and develop the best
     interests of the Company and any Group Companies;

2.3  without payment of additional salary or remuneration, act as a director of
     the Parent and accept any other offices or directorships in the Company or
     any Group Company and perform such other duties and exercise such other
     powers in relation to the business of the Company or any Group Company as
     may from time to time be reasonably vested in or assigned to you by the
     Board;

2.4  obey the reasonable and lawful directions of the Board at all times and
     comply with any lawful rules, regulations and policies issued by the
     Company from time to time;

2.5  keep the Board (or the board of directors of any other Group Company for
     whom you are carrying out any duties) fully informed in a timely manner of
     any duties or activities you are undertaking on behalf of the Company or
     any Group Company in such form as the Board may reasonably require;

2.6  not obtain or accept, directly or indirectly, any discount, rebate, gift,
     commission, fees or other benefit from any third party in respect of any
     sale or purchase of goods or services by the Company or any Group Company;
     and

2.7  carry out your duties and exercise your powers jointly with any other
     person appointed by the Board in its discretion to act jointly with you.

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3.   OUTSIDE INTERESTS

3.1  You agree that, during your employment with the Company, you will not,
     without the prior written consent of the Board, be employed or engaged by,
     appointed as a director or officer of or be otherwise interested or
     concerned (including, but not limited to interests as shareholder, partner,
     investor or lender) in any other business, firm, company, corporation or
     organisation.

3.2  Notwithstanding any term of this agreement, you may hold (directly or
     through nominees including your spouse, partner or minor children) by way
     of bona fide personal investment any units of any authorised unit trust and
     up to 3% of the issued shares, debentures or other securities of any
     company whose shares are listed on a recognised investment exchange, on the
     AIM market of the London Stock Exchange plc, NASDAQ, the New York Stock
     Exchange or comparable markets.

3.3  During your employment you shall comply with all applicable rules of law
     and any policy, code, rules or regulations of the Company or any Group
     Company relating to dealings in shares, debentures or other securities of
     the Company and any Group Company or relating to any unpublished price
     sensitive information affecting the securities of the Company, any Group
     Company or any other company or corporation.

4.   FREEDOM TO TAKE UP EMPLOYMENT WITH THE COMPANY

     You undertake that by entering into this agreement or performing any of
     your duties for the Company you will not be in breach of any other
     agreement, contract or obligation binding on you.

5.   PERIOD OF CONTINUOUS EMPLOYMENT

     You agree that your employment with the Company and your period of
     continuous employment for the purposes of the Employment Rights Act 1996
     commenced on 25 October 1999. No period of employment with a previous
     employer will count as part of your period of continuous employment with
     the Company.

6.   TERM

6.1  Subject to clause 22 below and the remainder of this clause 6, this
     agreement (and hence your employment) may be terminated by either party to
     this agreement giving to the other party not less than 12 months' notice of
     termination of employment in writing.

6.2  Without prejudice to the Company's rights under clause 22 below, the
     Company may in its absolute discretion choose to terminate your employment
     immediately at any time (whether or not notice of termination has been
     served by either party to this agreement) by making you a payment in lieu
     of notice within 14 calendar days of the Termination Date equivalent to the
     basic salary that would have been paid to you by the Company during the
     unexpired period of notice due to you under clause 6.1 of this agreement.
     The payment in lieu of notice will not take into account any commission,
     bonus, holiday entitlement, incentives, car allowance, pension
     contributions, employee benefits that would have been paid or provided to
     you or otherwise applicable during the unexpired period of notice. The
     payment in lieu of notice will

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     be subject to deductions for income tax, employee's national insurance
     contributions and other deductions required by law.

6.3  The normal retirement age for your position is 65.

7.   PLACE OF WORK

7.1  Your normal place of work will be the Company's main offices. The Company
     reserves the right to change your normal place of work, temporarily or
     permanently, to anywhere within or outside the United Kingdom (including,
     in particular, to the Parent Company's premises at 34 Commerce Way, Woburn,
     MA01801, USA) provided that the Company will give you at least three
     months' prior notice of any permanent change of location.

7.2  You shall be required from time to time to travel to and work from such
     places within or outside the United Kingdom for such periods as the Company
     may reasonably require for the proper and efficient performance of your
     duties.

8.   SALARY

8.1  You will be paid a basic salary at the rate of L190,550 per annum, which
     shall be subject to deductions for income tax, employee's national
     insurance contributions and any other deductions required by law. Your
     salary will accrue on a day-to-day basis and will be payable monthly in
     arrears on or about the last working day of each month. Your salary is paid
     in respect of your duties both for the Company and any Group Company for
     whom you are required to work and includes any directors' fees due to you.

8.2  Your salary will be reviewed by the Company once each year, provided that
     there shall be no obligation on the Company to increase your salary as a
     result of any such review.

9.   EXPENSES

     You will be reimbursed all out-of-pocket expenses reasonably and properly
     incurred by you solely on the business of the Company or any Group Company
     provided you:

9.1  comply with any expenses policy of the Company in force from time to time;

9.2  produce to the Company such receipts or other evidence of actual payment of
     the expenses concerned as the Company reasonably requires; and

9.3  submit all expense claims for any such expenses within three months of
     incurring the expenditure.

10.  PENSIONS, BONUSES AND OTHER BENEFITS

10.1 PENSION: You shall be entitled to join the Company's money purchase pension
     scheme (the "Plan"), subject at all times to the rules of the Plan in force
     from time to time (which may be varied from time to time at the discretion
     of the Company). The Company will contribute, by means of monthly
     instalments to the Plan, an annual sum

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     equivalent to 10% of your basic annual salary in the applicable calendar
     year, subject at all times to:

     (a)  any contribution limitations prescribed by HM Revenue and Customs from
          time to time; and

     (b)  the rules of the applicable plan,

     both of which may vary from time to time.

10.2 BONUS SCHEME: Subject to the terms, conditions and rules of any applicable
     bonus plan in force from time to time and the successful achievement by you
     and by the Company of any targets, budgets or objectives determined by the
     Compensation Committee of the Parent for each year, you shall be eligible
     for a discretionary bonus of up to 30% of your basic annual salary at the
     applicable time. Whether each target or objective has been successfully
     completed, whether to pay any bonus and, if so, the amount of any bonus are
     matters within the discretion of the Compensation Committee of the Parent.
     You agree that the terms, conditions and rules applicable to the bonus plan
     may be varied from time to time in the absolute discretion of the Company
     and you acknowledge that the targets and objectives are likely to vary from
     year to year. The fact that a bonus is paid in one year is no guarantee
     that bonuses will be paid in subsequent years. As the bonus is intended to
     incentivise you to remain in the employment of the Company, the payment of
     any bonus is conditional on your being in the employment of the Company on
     the day the bonus is due for payment. All bonuses shall be subject to
     deductions for income tax, employee's national insurance contributions and
     any other withholdings required by applicable law.

10.3 EMPLOYEE BENEFITS: Subject to you and, where applicable, your spouse/civil
     partner or minor children meeting any conditions of eligibility on a
     ongoing basis (including those imposed by the relevant insurer and/or
     underwriter), the rules, terms and conditions of the applicable scheme at
     the relevant time (which may be varied from time to time at the absolute
     discretion of the Company) and to the Company being able to secure cover
     for you and, where applicable, your spouse/civil partner or minor children
     at rates which are reasonably acceptable to the Company, the Company will
     provide you, your spouse/civil partner and minor children with cover under
     its private medical expenses insurance scheme and will provide you (only)
     with cover under the Company's permanent health insurance scheme and life
     assurance scheme. The terms and conditions relating to the benefits
     provided under each scheme are as set out in the relevant insurance scheme
     that the Company has in force at the applicable time (which will change
     from time to time during the term of this agreement). Any descriptions of
     the benefits stated in the staff handbook or elsewhere are provided for
     guidance purposes only and do not constitute binding terms and conditions
     of employment. You acknowledge that each insurance scheme includes detailed
     terms and conditions relating to your entitlement to benefits under any
     given circumstances, the level of cover and the cessation of the benefits.
     You are advised to obtain and review a copy of the terms and conditions of
     each insurance scheme, which are available from the Company's Human
     Resources Department.

     The Company reserves the right to withdraw any or all of these schemes at
     any time and/or to vary the schemes, the insurers, the rules, terms and
     conditions applicable to the scheme (including the eligibility conditions)
     or the level of cover at any time in its

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     absolute discretion. You acknowledge and agree that you shall not be
     entitled to any benefits under any of the insurance schemes that may be
     provided for your benefit unless the claim is admitted and paid by the
     relevant insurance provider and that the Company shall have no obligation
     to take any legal action against any insurance provider in order to secure
     admission of any claim or payment of any benefits. Nothing in this
     agreement or in the rules, terms and conditions of any insurance scheme
     shall give rise to any express or implied limitations on the right of the
     Company to terminate your employment at any time in accordance with clause
     6 or clause 22 of this agreement, provided that any insurance provider
     paying benefits to the Company under the Company's permanent health
     insurance scheme due to your incapacity agrees to pay the same level of
     benefits directly to you on the basis of and subject to the same
     substantive terms or conditions of cover (including the relevant definition
     of incapacity). You acknowledge and agree that you will not, following the
     termination of your employment by the Company in compliance with the terms
     of this clause, have any right of action or claims whatsoever against the
     Company arising from or in connection with the permanent health insurance
     scheme or the payment (or cessation of payment) of any benefits to you
     under the permanent health insurance scheme. You shall not have any express
     or implied right to receive any benefits or to the continuation of benefits
     following the termination of your employment.

11.  HOURS OF WORK

11.1 You agree to work such hours as may be necessary for the proper and
     efficient performance of your duties under this agreement and in any event
     not less that the normal working hours of the Company, as established from
     time to time.

11.2 You agree that the limit on average weekly working time set out in
     Regulation 4(1) of the Working Time Regulations 1998 will not apply to you.
     You acknowledge that you understand that your continued employment is not
     in any way conditional on you agreeing to this opt out of the 48 hour limit
     on your average working time during each week and you may therefore delete
     this clause 11.2 if you do not agree to opt out. After signing this
     agreement, you may opt back into the 48 hour average working week by giving
     the Company three months prior written notice.

12.  HOLIDAYS

12.1 The Company's holiday year runs from 1 April to 31 March.

12.2 You will be entitled to 25 working days as paid annual leave in each
     holiday year, in addition to recognised English bank holidays. For the
     holiday year during which your employment commences or terminates, your
     holiday entitlement will be calculated on a pro rata basis.

12.3 All holiday must be authorised in advance by the Chairman of the Parent and
     must be taken at times that are convenient to the Company having due regard
     to the needs of the business of the Company or any relevant Group Company.
     For the avoidance of doubt Regulations 15(1) to 15(4) of the Working Time
     Regulations 1998 (dealing with dates when leave is taken) will not apply to
     your employment.

12.4 You may not, without the prior permission of the Board, carry forward any
     unused part of your holiday entitlement to a subsequent holiday year.
     Subject to payments

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     made under clause 12.6 below, the Company will not make any payment in lieu
     of holiday which has accrued, but has not been taken, by the end of any
     holiday year.

12.5 Following either party to this agreement giving notice to terminate this
     agreement, the Company may at its discretion require you to take, during
     the notice period, some or all of any holiday entitlement which will have
     accrued to you by the date of termination of your employment, but which you
     have not yet taken.

12.6 On the termination of your employment with the Company, the Company will:

     (a)  pay you in lieu of your accrued holiday, save that if you are
          dismissed for gross misconduct, the Company shall be under no
          obligation to pay you holiday pay in respect of accrued but untaken
          holiday in excess of any minimum holiday entitlement required by law
          for the year in question. Any payment in lieu of holiday entitlement
          will be subject to deductions for income tax, employee's national
          insurance contributions and other deductions required by law; or

     (b)  deduct an amount representing salary paid during holiday taken but not
          accrued by the date of termination of your employment from any
          payments due to you from the Company (including your final salary
          payment or any payment in lieu of notice) or, in the event that this
          is insufficient, require you to repay such amount to the Company as a
          debt within 7 days of the termination of your employment.

     Any payment in lieu, deductions or repayments in respect of holiday
     entitlement shall be calculated on the basis of one day's holiday giving
     rise to a payment in lieu equivalent to 1/260 of your basic annual salary.

13.  DEDUCTIONS FROM WAGES

     Without prejudice to any other rights open to the Company, you consent to
     the Company deducting from any wages due to you, (including Company sick
     pay) sums representing the amount of any outstanding loans or advances made
     to you by the Company, any overpayment of salary or expenses and payment
     made to you by mistake or through misrepresentation.

14.  DATA PROTECTION

     In order to keep and maintain any records relating to your employment under
     this agreement and in order to record and monitor attendance, it will be
     necessary for the Company to record, keep and process personal data
     relating to you on computer and in hard copy form. Examples of personal
     data include: details of your disciplinary record; any grievances raised by
     you; the contents of your personnel file; and any sensitive personal data
     held by the Company such as your religious beliefs, your ethnic or racial
     origin and information relating to your physical and mental health.
     Further, in order to pay your salary and offer you the other benefits to
     which you may be entitled, the Company may also need to obtain from you
     details of your bank account and other financial information. To the extent
     that it is reasonably necessary in connection with your employment and the
     Company's responsibilities as an employer, you agree that this data may be
     disclosed to others, including other

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     employees of the Company or any Group Company, the Company's professional
     advisers, the Inland Revenue or other taxation authority, the police and
     other regulatory authorities. You hereby consent to the recording,
     processing, use and disclosure by the Company of personal data relating to
     you as set out above (including the recording, processing, use and
     disclosure of your sensitive personal data to the extent required by reason
     of your employment or by law), including the transmission of such data
     abroad whether the recipient is located within or outside the European
     Economic Area.

15.  SICKNESS OR INJURY

15.1 If you are absent from work due to sickness, injury or accident you will
     notify a suitable member of staff of the Company as soon as possible.

15.2 If you are absent from work for less than 7 calendar days you will complete
     a self-certification form setting out the nature of your illness or
     incapacity on your return to work. If your absence continues for 7 calendar
     days or more you agree that you will on the eighth calendar day of such
     absence submit a doctor's certificate to the Company and that you will
     submit further doctor's certificate promptly to cover any continued period
     of absence.

15.3 Provided you comply with the notification and certification procedure set
     out above, the Company will pay your normal basic salary for 90 working
     days of absence due to illness, accident or injury in any period of 12
     months, whether or not such days of absence are consecutive. In the event
     that you exhaust your Company sick pay entitlement in any period of 12
     months:

     (a)  you shall not be entitled to any further Company sick pay until and
          unless you have returned to work for a consecutive period of not less
          than 3 calendar months;

     (b)  any further payments of enhanced Company sick pay will be made at the
          sole discretion of the Company;

     (c)  the Company will pay any statutory sick pay that may be due in
          accordance with the prevailing statutory sick pay regulations; and

     (d)  the Company will pay any benefits due to you in accordance with the
          rules, terms and conditions stated in the Company's permanent health
          scheme, in accordance with and subject to the terms and conditions
          stated in clause 10.3 of this agreement.

15.4 You agree that, with effect from the date any benefits become payable to
     you under the Company's permanent health scheme, you:

     (a)  shall cease to be entitled to any salary, Company sick pay, other
          remuneration (save for the PHI benefits), car allowance, other
          allowances, bonuses, commission, pension contributions, life
          assurance, private medical insurance cover, stock options grants,
          incentives, or other employee benefits;

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     (b)  shall cease to have any obligation to hold you out as its Chief
          Executive Officer and the Company shall be entitled to appoint a new
          Chief Executive Officer; and

     (c)  will, if requested to do so by the Board at any time, immediately
          resign from all directorships and other offices held by you in the
          Company or any Group Companies.

15.5 Failure to comply with the certification requirements set out above may
     result in your forfeiting your entitlement to be paid during periods of
     absence and in your facing disciplinary action.

15.6 Company sick pay paid to you at the discretion of the Company at any time
     shall include any statutory sick pay payable to you under the then
     prevailing rules of the statutory sick pay scheme. The Company may deduct
     from Company sick pay an amount or amounts equal to any state sickness
     benefit to which you are entitled.

15.7 The Company reserves the right to require you to undergo a medical
     examination by the Company's doctor or an independent medical practitioner
     in the event that you are unable to carry out your normal duties for the
     Company or are absent from work due to illness, accident or injury for not
     less than one month and you agree that the doctor or independent medical
     practitioner may disclose to the Company the results of the examination and
     discuss with the Company and its professional advisers any matters arising
     from the examination as might impair you from properly discharging your
     duties. You also authorise your own doctor to provide the Company's doctor
     and/or independent medical practitioner with any relevant extracts from
     your medical notes. This clause is without prejudice to your statutory
     rights, including your rights under the Access to Medical Reports Act 1988.

16.  CONFIDENTIALITY

16.1 During the course of your employment you will have access to and become
     aware of information which is confidential to the Company. You undertake
     that you will not, save in the proper performance of your duties, use
     (whether for your own benefit or for the benefit of any other person, firm,
     company or organisation) or disclose to any person, firm, company or
     organisation any of the trade secrets or other confidential information of
     or relating to (a) the Company; (b) any Group Company; (c) any customer or
     Prospective Customer (as defined below) of the Company or any Group
     Company; (d) any person, firm, company or organisation with whom or which
     the Company is involved in any kind of business dealings, venture or
     partnership; or (e) the business of the Company or any Group Company, which
     (in the case of each of (a) through to (e)) you received or obtained in the
     course of your duties for the Company or as a result of your employment by
     the Company. You will likewise use your best endeavours to prevent the
     unauthorised publication or disclosure by any third party of any such trade
     secrets or confidential information.

16.2 The restriction stated in clause 16.1 above shall continue to apply after
     the termination of your employment, but shall cease to apply to information
     which must be disclosed by law or by an order of any court or tribunal of
     competent jurisdiction and to information which becomes available to the
     public generally (other than by reason of your breaching this clause).
     Nothing in this clause will prevent you making a

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     "protected disclosure" within the meaning of Section 43A Employment Rights
     Act 1996, provided that you have first followed and exhausted any
     reasonable Company procedure in relation to the reporting of any alleged
     wrongdoing or malfeasance on the part of the Company or any Group Company
     or any of its/their officers, directors, employees or advisers.

16.3 For the purposes of this agreement confidential information shall include,
     but shall not be limited to:

     (a)  corporate, marketing, product development and business development
          strategies and plans;

     (b)  budgets, management accounts, bank account details and other
          confidential financial data;

     (c)  business, sales and marketing methods;

     (d)  details, designs, know-how, technical data, techniques, processes and
          specifications of or relating to any products and services being sold,
          provided, manufactured, distributed, researched or developed,
          including all: research and development reports and data; genetic
          data; databases; chemical formulae; information relating to
          pre-clinical or clinical trials; medical records; proprietary
          vaccines; vaccines; pharmaccines; anti-viral therapies; disease
          inhibitors; proprietary bioinformatics; proprietary elements or
          compounds (whether organic or inorganic); methods of manufacture;
          nucleotide or nucleotide sequence including DNA and RNA sequences;
          gene; vector or construct including plasmids, phages or viruses; host
          organism including bacteria, fungi, algae and protozoa; hybridomas;
          eukaryotic or prokaryotic cell line or expression system or any
          development strain or product of that cell line or expression system;
          protein including any peptide or amino acid sequence, enzyme, antibody
          or protein conferring targeting properties and any fragment of a
          protein or a peptide enzyme or antibody; drug or pro-drug; assay or
          reagent; any other genetic or biologic material or micro-organism;
          multi-cellular plants; data for the derivation of molecular structures
          including NMR spectra, X Ray diffraction patterns, and other primary
          experimental information, assignments and other calculations, required
          for determination of the structure, and co-ordinates of the derived
          molecular structure; and any intellectual property rights;

     (e)  computer technology; computer programs; software applications and
          systems; information relating to proprietary hardware or software
          (including updates); source and object code to proprietary software;
          confidential algorithms developed or used for such proprietary
          software;

     (f)  details of the salaries, remuneration, fees, bonuses, commissions and
          other employment terms applicable to employees, officers and
          consultants;

     (g)  the names, addresses and contact details of any customers, Prospective
          Customers, suppliers, advisers, distributors, agents and other
          business partners, customer lists in whatever medium this information
          is stored and the

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          requirements of those customers or the potential requirements of
          Prospective Customers for any products or services;

     (h)  the terms and conditions of business with customers, suppliers,
          advisers, distributors, agents and other business partners, including
          any pricing policy, discount policy or credit policy adopted and the
          terms of any partnership, joint venture or other form of commercial
          co-operation or agreement with any third party;

     (i)  software and technical information necessary for the development,
          maintenance or operation of any websites and the source and object
          code of each website;

     (j)  existing, pending or threatened litigation; and

     (k)  any other information which is the subject of an obligation of
          confidence owed to a third party, in particular the content of
          discussions or communications with any Prospective Customers or
          prospective business partners.

17.  DELIVERY UP OF THE COMPANY'S PROPERTY

17.1 You may not, save in the proper performance of your duties or with the
     prior permission of the Company, remove any property belonging to the
     Company or any Group Company, or relating to the affairs of the Company or
     any Group Company, from the Company's or any Group Company's premises, or
     make any copies of documents or records relating to the Company's or any
     Group Company's affairs.

17.2 Upon the Company's request at any time, and in any event on the termination
     of your employment, you will promptly deliver up to the Company or its
     authorised representative, any plans, keys, mobile telephone, security
     passes, credit cards, customer lists, price lists, equipment, documents,
     records, papers, computer disks tapes or other computer hardware or
     software or memory medium or devices (together with all copies of the
     same), and all property of whatever nature in your possession or under your
     control which belongs to the Company or any Group Company or relates to its
     or their business affairs. You will, at the Company's request, provide the
     Company without delay with a written statement confirming that you have
     complied with this obligation.

17.3 If, on the termination of your employment, you have any information
     relating to the Company or any Group Company or work you have carried out
     for the Company or any Group Company which is stored on a device (which for
     the purpose of this agreement includes any personal computer, laptop
     computer, web-server, personal digital assistant, mobile telephone, memory,
     disk or any other storage medium) which device does not belong to the
     Company, you agree to disclose this fact to the Company immediately upon
     the termination of your employment and you agree to provide the Company
     with immediate access to the relevant device so that the Company may
     download the information and/or supervise its deletion from the device
     concerned. You will, at the Company's request, furnish the Company with a
     written statement confirming that you have complied with your duty of
     disclosure to the Company under this clause.

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18.  COPYRIGHT AND DESIGN RIGHTS

18.1 You acknowledge and agree that the provisions of this clause 18 apply in
     respect of any works in which copyrights, design rights, or database rights
     (or similar forms of intellectual property protection) may exist which you
     have made or originated either by yourself or jointly with other people
     during your employment with the Company, but prior to the date of this
     agreement, as well as any such works which you may so make or originate
     after the date of this agreement.

18.2 You will promptly disclose to the Board all works in which copyrights,
     design rights or database rights (or similar forms of intellectual property
     protection) may exist which you have made or originated or which you make
     or originate either by yourself or jointly with other people during your
     employment whether before or after the date of this agreement.

18.3 Any copyright work, design or database which has been or may be created by
     you in the normal course of your employment, in the course of carrying out
     duties specifically assigned to you or which is capable of being used or
     exploited by the Company or any Group Company in its business operations,
     shall be the property of the Company whether or not the work was made at
     the direction of the Company or was intended for the Company and the
     copyright in it and the rights in any design or database shall belong
     absolutely to the Company throughout all jurisdictions and in all parts of
     the world, together with all rights of registration, extensions and renewal
     (where relevant).

18.4 To the extent that such copyrights, design rights and database rights (and
     similar forms of intellectual property protection) are not otherwise vested
     in the Company, you hereby assign the same to the Company, together with
     all past and future rights of action relating thereto. In relation to any
     copyright work, design or database that may created by you in the future,
     whether in the normal course of your employment, in the course of carrying
     out duties specifically assigned to you or which is capable of being used
     or exploited by the Company or any Group Company in its business
     operations, you hereby assign, by way of present assignment of future
     rights to the extent permissible by law, the copyrights, design rights and
     database rights (and similar forms of intellectual property protection) in
     the same to the Company, with the intention that such copyrights, design
     rights and database rights (and similar forms of intellectual property
     protection) should forthwith upon completion of the relevant works vest in
     the Company.

18.5 You recognise and accept that the Company may edit, copy, add to, take
     from, adapt, alter and translate the product of your services in exercising
     the rights assigned under clause 18.3.

18.6 To the fullest extent permitted by law, you irrevocably and unconditionally
     waive any provision of law known as "moral rights" including any moral
     rights you may otherwise have under sections 77 to 85 inclusive of the
     Copyright Designs and Patents Act 1988 in relation to the rights referred
     to at clause 18.3. You give this waiver in favour of the Company and each
     Group Company, and all successors in title to and licensees of the
     copyright, design right and database right in such works (whether existing
     or future).

<PAGE>

18.7 You agree that you will at the Company's request and expense, execute such
     further documents or deeds and do all things necessary or reasonably
     required to confirm and substantiate the rights of the Company under this
     clause 18 both before and after the termination of this agreement for any
     reason.

18.8 You agree that you will not at any time make use of, disclose or exploit
     the Company's property, trade marks, service marks, documents, materials or
     information in which the Company or any Group Company owns (wholly or
     partially) the copyright, design right or database right (or similar forms
     of intellectual property protection) for any purpose which has not been
     authorised by the Company.

19.  INVENTIONS

19.1 You acknowledge and agree that the provisions of this clause 19 apply in
     respect of any invention, discovery, design, improvement or other matter or
     work whatsoever made or discovered or to be made or discovered by you
     (whether alone or jointly with others) from time to time during the course
     of your employment with the Company whether before or after the date of
     this agreement.

19.2 It has been and it shall be part of your normal duties at all times to
     consider in what manner and by what new methods or devices, products,
     services, processes, equipment or systems of the Company and each Group
     Company might be improved and to further the intellectual property
     interests of the Company. You and the Company agree that, because of the
     nature of your duties and the particular responsibilities arising from your
     duties, you have had and continue to have a special obligation to further
     the interests of the Company.

19.3 You hereby acknowledge and agree that the sole ownership of any invention,
     discovery, design, improvement or other matter or work whatsoever made or
     discovered or to be made or discovered by you (whether alone or jointly
     with others) from time to time in the course of undertaking your normal
     duties for the Company or any Group Company under this agreement or in the
     course of carrying out duties assigned to you by the Company or any Group
     Company under this agreement, whether in each case before or after the date
     of this agreement, and all patents, trade secret rights and other
     intellectual property and proprietary rights therein ("Company Inventions")
     shall (subject to any contrary provisions of the Patents Act 1977, the
     Copyright Designs and Patents Act 1988 or any other applicable laws and to
     any rights of a joint inventor thereof) belong free of charge and
     exclusively to the Company or as it may direct.

19.4 You shall promptly give to the Board full details of all inventions,
     discoveries, designs, improvements or other matter or works whatsoever made
     or discovered by you from time to time during your employment with the
     Company, whether before or after the date of this agreement.

19.5 All worldwide copyright, design rights and database rights in all Company
     Inventions shall be and remain the property of the Company and the
     provisions of clause 18 above shall apply in relation to the same.

19.6 You agree that you shall, at any time during your employment or thereafter,
     at the Company's expense, do all such acts and things and execute such
     documents

<PAGE>

     (including without limitation making application for letters patent) as the
     Company may reasonably request in order to vest effectually all Company
     Inventions, to the extent that the same is the property of the Company or
     any other Group Company, and any protection as to ownership or use (in any
     part of the world) of the same, in the Company or any Group Company, or as
     the Company may direct, and you hereby irrevocably appoint the Company for
     these purposes to be your attorney in your name and on your behalf to
     execute and do such acts and things and execute any such documents as set
     out above.

19.7 You agree that you will not knowingly do or omit to do anything which will
     or may have the result of imperilling any such protection aforesaid or any
     application for such protection.

19.8 You agree that you will not at any time make use of, disclose or exploit
     any Company Invention belonging wholly or partially to the Company or any
     Group Company for any purpose which has not been authorised by the Company.

19.9 Each of the provisions in this clause 19 is distinct and severable from the
     others and if at any time one or more of such provisions is or becomes
     invalid, illegal or unenforceable, the validity, legality and
     enforceability of the remaining provisions of the clause will not in any
     way be affected or impaired.

20.  GARDEN LEAVE

     The Company shall be under no obligation to provide you with work during
     any period of notice of termination of employment (or any part thereof),
     whether such notice is given by the Company or by you (the "NOTICE
     PERIOD"). During the Notice Period, the Company may require you: (a) to
     carry out special projects or alternative duties provided that they are
     reasonably consistent with your status within the Company and your
     qualifications and skills; and/or (b) to cease carrying out some or all of
     your duties and powers for the Company or any Group Company; and/or (c) not
     to have any business dealings with the employees, suppliers, advertisers,
     customers and agents of the Company or any Group Company; and/or (d) not to
     attend at any premises or offices of the Company or any Group Company. You
     agree that you will, if requested to do so by the Board at any time during
     the Notice Period, immediately resign from all directorships and other
     offices held by you in the Company or any Group Companies. You will, during
     the Notice Period, continue to receive your salary and all contractual
     benefits provided by your employment. During the Notice Period you may not
     be engaged or employed by, take up any office or partnership in or be
     otherwise interested or concerned in any other company, firm, business or
     organisation without the prior written permission of the Company. You will
     continue to owe the Company duties of good faith, fidelity and loyalty
     during the Notice Period and the provisions of this agreement will continue
     in force during the Notice Period unless otherwise stated in this clause
     20.

21.  SUSPENSION

     In addition to the right to put you on garden leave set out in clause 20,
     the Company may suspend you on full pay pending the outcome of a
     disciplinary investigation or for health reasons. Whilst on suspension the
     Company may impose the same conditions as are applicable during garden
     leave.

<PAGE>

22.  TERMINATION OF EMPLOYMENT

22.1 The Company may terminate your employment with immediate effect by serving
     written notice of immediate termination on you in the event that you:

     (a)  are, in the reasonable view of the Board, guilty of gross misconduct,
          wilful and serious neglect of duty, material dishonesty, gross
          incompetence or gross negligence;

     (b)  infringe (in a manner which the Board reasonably considers to be
          material or prejudicial to the interests of the Company or any Group
          Company) any rules or regulations imposed by any regulatory or other
          external authority or professional body applicable to your employment
          or which regulate the performance of your duties, the Company's
          business or the listing of the shares or securities of the Company or
          any Group Company on a recognised investment exchange or you fail to
          continue to possess any qualification or meet any condition or
          requirement laid down by any such applicable regulatory authority or
          professional body or by any legislation or regulations;

     (c)  act in a way which in the reasonable view of the Board brings you, the
          Company or any Group Company into material disrepute, whether or not
          such act is directly related to the affairs of the Company or any
          Group Company;

     (d)  breach clause 3.3 of this agreement, violate any rules of the Company
          relating to your dealings with the shares of the Company or any Group
          Company and/or enter into any transaction which contravenes the
          insider dealing provisions contained in the Criminal Justice Act 1993
          or any other statutory provision;

     (e)  become bankrupt, have an interim order made against you under the
          Insolvency Act 1986 or make any composition or enter into any deed of
          arrangement with your creditors or the equivalent of any of these
          under any other jurisdiction;

     (f)  are convicted of a criminal offence (other than a motoring offence for
          which you are not sentenced to any term of imprisonment, whether
          immediate or suspended); or

     (g)  become disqualified from acting as a director of a company or resign
          from any office you hold as a director of the Company or any Group
          Company otherwise than at the written request of the Company or with
          the prior written consent of the Company.

22.2 In the event of the termination of your employment pursuant to clause 22.1,
     you shall not be entitled to receive notice of termination in accordance
     with clause 6.1 of this agreement or any payment in lieu of notice in
     accordance with clause 6.2 of this agreement.

22.3 You agree that you will, on the termination of your employment, transfer to
     the Company (or as the Company may direct) any qualifying shares or nominee
     shareholdings provided to you by or held by you in or on behalf of the
     Company or

<PAGE>

     any Group Company subject to and in accordance with the Company's articles
     of association from time to time.

23.  OFFICES

23.1 If, for any reason, you shall either:

     (a)  resign, at the Company's request, as a director of the Company or any
          Group Company; or

     (b)  be removed from office as a director of the Company or any Group
          Company,

     then you agree that, notwithstanding your so ceasing to be a director of
     the Company or any applicable Group Company (as the case may be), your
     employment shall not terminate, there shall be no constructive dismissal,
     you shall continue to act as an executive employed by the Company on and
     subject to the terms and conditions otherwise set out in this agreement and
     you shall have no claim against the Company or any Group Company in respect
     of any loss of office.

23.2 You agree that you will, on the termination of your employment, resign
     immediately from all offices you hold in the Company and/or any Group
     Company.

23.3 You hereby irrevocably appoint the Company to be your attorney to execute
     any documents and do anything in your name to effect your resignation as a
     director of the Company or any Group Company should you fail to resign
     following a request from the Company to do so in accordance with clause
     23.2. A written notification signed by a director of the Company that any
     instrument, document or act falls within the authority conferred by this
     clause will be conclusive evidence that it does so.

24.  RESTRICTIONS AFTER TERMINATION OF EMPLOYMENT

24.1 You agree and covenant to the Company that you will not, without the prior
     written permission of the Board, during the period of 12 months immediately
     following the Termination Date (less any period you are required to cease
     undertaking any duties for the Company pursuant to clause 20 of this
     agreement), and whether on your own behalf or on behalf of any individual,
     company, firm, business or other organisation, directly or indirectly:

     (a)  in connection with the carrying on of any business which competes in
          the Restricted Area with the Business, solicit or entice away from the
          Company or any Group Company the business or custom of any customer or
          Prospective Customer (as defined below) with which customer or
          Prospective Customer you had business dealings on behalf of the
          Company or any Group Company during the Relevant Period or about which
          customer or Prospective Customer you are privy to confidential
          information at the Termination Date;

     (b)  in connection with the carrying on of any business which competes in
          the Restricted Area with the Business, accept any business, orders or
          custom from any customer or Prospective Customer of the Company or any
          Group Company with which customer or Prospective Customer you had
          business dealings on behalf of the Company or any Group Company during
          the

<PAGE>

          Relevant Period or about which customer or Prospective Customer you
          are privy to confidential information at the Termination Date;

     (c)  in connection with the carrying on of any business which competes in
          the Restricted Area with the Business, endeavour to entice away from
          the Company or any Group Company any supplies of goods or services
          being provided to the Company or any Group Company by any person,
          firm, company or organisation whom or which supplied goods or services
          to the Company or any Group Company during the Relevant Period with
          whom you had business dealings on behalf of the Company or any Group
          Company in the course of the Relevant Period or about whom you are
          privy to confidential information at the Termination Date;

     (d)  in any way seek to affect the terms of business on which the Company
          or any Group Company deals with any person, firm, company or
          organisation whom or which was a customer, agent, distributor or
          contractor of or whom or which supplied goods or services to the
          Company or any Group Company during the Relevant Period or act or omit
          to act in any manner which will or is likely to result in any such
          person, firm, company or organisation terminating or reducing the
          amount of business dealings with or the custom, services or supplies
          it provides to or for the Company or any Group Company;

     (e)  solicit or seek to entice away from the Company or any Group Company
          any person employed or engaged by the Company or any Group Company as
          a director, officer, president or a vice president or any other person
          employed or engaged in a managerial, technical, engineering, sales,
          marketing, research and/or development capacity at the Termination
          Date with whom you had dealings during the Relevant Period. This
          restriction shall apply regardless of whether the solicitation
          involves a breach of contract on the part of the consultant, director
          or employee concerned; or

     (f)  employ or engage or offer to employ or engage any person employed or
          engaged by the Company or any Group Company as a director, officer,
          president or a vice president or any other person employed or engaged
          in a managerial, technical, engineering, sales, marketing, research or
          product development capacity at the Termination Date with whom you had
          dealings during the Relevant Period. This restriction shall apply
          regardless of whether the employment involves a breach of contract on
          the part of the consultant, director or employee concerned.

24.2 You agree and covenant to the Company that you will not, without the prior
     written permission of the Board, for a period of 12 months immediately
     following the Termination Date (less any period you are required to cease
     undertaking your duties for the Company pursuant to clause 20):

     (a)  be engaged, appointed or employed within the Restricted Area by;

     (b)  undertake any duties in relation to the Restricted Area (wherever you
          are based) for; or

     (c)  be otherwise interested, concerned or involved in,

<PAGE>

     (as the context permits) any person, firm, company, corporation, business
     or organisation which competes in the Restricted Area with the Business.

24.3 Each of the sub-clauses contained in clause 24 constitutes an entirely
     separate and independent covenant. If any restriction is held to be invalid
     or unenforceable by a court of competent jurisdiction, it is intended and
     understood by the parties that such invalidity or unenforceability will not
     affect the remaining restrictions or the validity of the rest of the
     agreement and that if any such restriction would be valid if some part
     thereof were deleted, such restrictions shall apply with such modification
     as may be necessary to make them effective.

24.4 You agree that if you receive an offer of employment, consultancy,
     directorship or other office or partnership during the continuance in force
     of any of the above, you will prior to acceptance of an offer, provide the
     party making the offer with copies of this clause and details of your
     notice period, the restrictions on your use and disclosure of confidential
     information and the clauses dealing with copyright and inventions.

24.5 You acknowledge that the Company is entering into this agreement not only
     for itself but also as the trustee of each Group Company and with the
     intention that the Company and/or any Group Company will be entitled to
     seek the protection of and enforce each of its restrictions directly
     against you. If requested to do so by the Company, you will at any time
     enter into like restrictions as those contained in this clause 24 (mutatis
     mutandis) with any other Group Company.

24.6 Nothing in this clause 24 shall prohibit you from holding the investments
     and interests set out in clause 3.2 above.

24.7 Following the date upon which your employment terminates, you will not:

     (a)  represent yourself as being in any way connected with the business of
          the Company or any Group Company (except to the extent agreed by such
          Company); or

     (b)  carry on, cause or permit to be carried on any business under or using
          any name, trade mark, service mark, style, logo, get-up or image which
          is or has been used by the Company or any Group Company, or which in
          the reasonable opinion of the Company, is calculated to cause
          confusion with such a name, trade mark, service mark, style, logo,
          get-up or image or infer a connection with the Company or any Group
          Company.

25.  DISCIPLINARY AND GRIEVANCE PROCEDURES

25.1 The Company's disciplinary procedure shall apply to you, but may be
     modified by the Company to the extent that the Company determines to be
     reasonable to take into account your position in the Company. All
     disciplinary decisions will be taken by a director of the Company (other
     than you) and your right of appeal shall be to one of the non-employee
     directors or the Chairman of the Parent.

25.2 The Company's grievance procedure shall not apply to you. If you have any
     grievance relating to your employment you should write to the Board setting
     out full

<PAGE>

     details of the grievance and providing all relevant information. You agree
     to promptly answer (in writing if so required) any questions put to you by
     any member of the Board in relation to such grievance. All grievances shall
     be determined by a director of the Parent (other than you) and you shall
     have a right of appeal to one of the non-executive directors or the
     Chairman of the Parent.

26.  SECURITY

26.1 All communications, whether by telephone, email, fax, or any other means,
     which are transmitted, undertaken or received using the Company's
     information technology ("IT") or communications systems or Company property
     will be treated by the Company as work related and the Company's IT systems
     and network are provided for your use in undertaking your duties. You agree
     that the Company may intercept, record and monitor all such communications
     made by you and your use of the Company's IT systems and network without
     further notice. Accordingly, you should not regard any such communications
     or use as being private and matters which are private should be conducted
     by you outside of your working hours, away from the Company's premises and
     without use of the Company's communications and IT hardware, software,
     systems and networks.

26.2 The interception, recording and monitoring of communications is intended to
     protect the Company's business interests, for example, but without
     limitation, for the purposes of quality control, security of communication
     and IT systems, protection of the Company's confidential information and
     legitimate business interests, record-keeping and evidential requirements,
     detection and prevention of criminal activity or misconduct and to assist
     the Company to comply with relevant legal requirements.

26.3 You agree that intercepted communications may be used as evidence in
     disciplinary or legal proceedings, including in any such action against
     you.

27.  COLLECTIVE AGREEMENTS

     There are no collective agreements which directly affect your terms and
     conditions of employment.

28.  PARTICULARS OF EMPLOYMENT

     This agreement includes the particulars of employment required by the
     Employment Rights Act 1996.

29.  RECONSTRUCTION OR AMALGAMATION

     If before the termination of this agreement, your employment is terminated
     by reason of the liquidation of the Company for the purposes of any
     reconstruction or amalgamation, and you are offered employment with any
     concern or undertaking resulting from such reconstruction or amalgamation
     on terms and conditions no less favourable than the terms of this
     agreement, then, to the extent permitted by law, you will have no claim
     against the Company in respect of the determination of your employment.

<PAGE>

30.  ENTIRE AGREEMENT

30.1 This agreement is in substitution for and supersedes any previous service
     agreement, contract of employment or offer letter between the Company or
     any Group Company and you (including, without limitation, the service
     agreement between the Company and you dated 15 May 2000), all of which
     shall be deemed to have been terminated by mutual consent on the date this
     agreement comes into force and without giving rise to claims against the
     Company. You hereby acknowledge and warrant that this agreement states the
     entire agreement between the parties in relation to your terms of
     employment, that there are no agreements or arrangements whether written or
     oral or implied between the Company or any Group Company and you relating
     to your employment by the Company other than those expressly set out in
     this agreement and that you are not entering into this agreement in
     reliance on any representation not expressly set out in this agreement.

30.2 The termination of this agreement howsoever arising shall not affect any of
     the provisions of this agreement which are expressed to operate or have
     effect or are capable of operation or effect after such termination.

31.  NOTICES

     Any notice you are required to give under this agreement must be hand
     delivered to the Chief Financial Officer of the Parent at the Parent's
     principal executive office from time to time. Any notice the Company is
     required to give you will be hand delivered to you or sent by recorded
     delivery post to your last notified home address. These notices will be
     deemed to have been given on the date of receipt if hand delivered and, if
     posted, on the day on which the letter would be delivered in the ordinary
     course of recorded delivery post.

32.  THIRD PARTIES

     This agreement constitutes an agreement solely between the Company and you,
     and, save where otherwise provided, for the purposes of the Contracts
     (Rights of Third Parties) Act 1999, nothing in this contract confers or
     purports to confer on a third party any benefit or any right to enforce a
     term of this contract.

33.  INTERPRETATION

33.1 Any reference in this agreement to:

33.2 any Act or delegated legislation includes any statutory modification or
     re-enactment of it or the provision referred to;

33.3 "BUSINESS" means any business, trade or other commercial activities of the
     Company or any Group Company operated at the Termination Date: (a) with
     which business of the Company or any Group Company you are concerned or
     involved to any material extent during the Relevant Period; or (b) in
     relation to which business of the Company or any Group Company you are
     privy to confidential information at the Termination Date;

33.4 "BOARD" shall mean the Board of Directors of the Parent from time to time
     or any person or any committee of the Board duly appointed by it;

<PAGE>

33.5 "GROUP COMPANY" means each and every all company and/or corporation in any
     jurisdiction: (a) which from time to time is a subsidiary or a holding
     company of the Company; (b) which from time to time is a subsidiary of such
     holding company (excluding the Company); and (c) over which the Company or
     its holding company has control within the meaning of Section 416 of the
     Income and Corporation Taxes Act 1988 (and where the terms "SUBSIDIARY" and
     "HOLDING COMPANY" have the meanings attributed to them by section 736 of
     the Companies Act 1985);

33.6 "INCLUDE" and "INCLUDING" and "IN PARTICULAR" shall be construed as being
     by way of illustration only and shall not limit the generality of the
     preceding words;

33.7 "PARENT" means BioVex Group, Inc., a Delaware corporation and the sole
     shareholder of the Company.

33.8 "PROSPECTIVE CUSTOMER" means any person with whom the Company or any Group
     Company is in negotiations in relation to the sale or supply of goods
     and/or services by the Company or any Group Company to such person or to
     whom the Company or any Group Company has submitted a tender relating to
     such a sale or supply arrangement;

33.9 "RELEVANT PERIOD" means the period of 12 months immediately preceding the
     Termination Date, save where you are placed on garden leave and undertake
     no duties for the Company for part or all of the Notice Period ("GARDEN
     LEAVE"), in which case the Relevant Period shall mean the period of 12
     months immediately preceding the date upon which you commence Garden Leave;

33.10 "RESTRICTED AREA" means the United States of America, the United Kingdom
     and such other countries within which, on the date your employment
     terminates, the Company or any Group Company operates the Business and in
     relation to which country, during the Relevant Period, you:

     (a)  undertook material duties for the Company or any Group Company in
          relation to any part of the Business being operated in that country;
          or

     (b)  had a material degree of management responsibility for a material part
          of the Business being operated in that country; or

     (c)  were privy to confidential information relating to the Business; and

33.11 "TERMINATION DATE" means the date upon which your employment with the
     Company terminates howsoever arising.

34.  GOVERNING LAW

     Your terms of employment with the Company are governed by laws of England
     and the parties submit to the exclusive jurisdiction of the English courts.
     The Company may however enforce the agreement in any other courts of
     competent jurisdiction.

<PAGE>

IN WITNESS WHEREOF this agreement has been executed and delivered as a deed on
the date stated on the first page of this agreement.

EXECUTED AND DELIVERED AS A DEED
BY BIOVEX LIMITED
ACTING BY:                              /s/ illegible
                                        ----------------------------------------
                                        Director

                                        /s/ P. Astley-Sparke
                                        ----------------------------------------
                                        Director/Secretary

EXECUTED AND DELIVERED AS A DEED
BY DR. GARETH BEYNON:                   /s/ Gareth Beynon
                                        ----------------------------------------
in the presence of:-

Signature of witness                    /s/ Jan Steiner
                                        ----------------------------------------
Name of witness                         Jan Steiner

Address of witness                      1 Sotwell Manor

                                        /s/ illegible
                                        ----------------------------------------
Occupation of witness                   Pharmaceutical Consultantt<PAGE>

                                                                  EXHIBIT 10.2.2

                              EMPLOYMENT AGREEMENT

          This Employment Agreement (the "Agreement") is made and entered into
as of the 29th day of August, 2006, by and between BioVex, Inc., a Delaware
corporation with its principal place of business at 34 Commerce Way, Woburn, MA
01801 (the "Company"), and Philip Astley-Sparke, residing at 8 Amanda Lane,
Weston, MA 02493 (the "Executive").

                                   WITNESSETH

          WHEREAS, the Company and Biovex Limited, a company registered in
England and Wales with a registered office at 70 Milton Park, Abingdon, Oxford
("Biovex Ltd."), both are wholly-owned subsidiaries of Biovex Group, Inc. (the
"Parent Company");

          WHEREAS, the Executive currently is serving as the President and Chief
Financial Officer of the Parent Company and the President of the Company;

          WHEREAS, the Executive currently is a party to a service agreement
dated July 10, 2000 (the "Service Agreement") entered into with Biovex Ltd.,
pursuant to which the Executive currently divides his time and efforts working
and traveling between the United Kingdom and the United States; and

          WHEREAS, the Parties desire to enter into an employment agreement and
to terminate the Service Agreement.

     NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which is mutually acknowledged, the Company and the Executive
(individually a "Party" and together the "Parties"), intending to be legally
bound, agree as follows:

     1. Certain Definitions. For purposes of this Agreement,

          1.1 "Board" shall mean the Board of Directors of the Parent Company
from time to time or any person or any committee of the Board duly appointed by
it;

          1.2 "Cause" shall mean:

               (a) a good faith finding by the Company that the Executive has:

                    (i) engaged in gross misconduct, willful and serious neglect
of duty, material dishonesty, gross incompetence or gross negligence;

                    (ii) infringed any rules or regulations imposed by any
regulatory or other external authority or professional body applicable to his
employment or which regulate the performance of his duties, the Company's
business or the listing of the shares or securities of the Company or any Group
Company on a recognized investment exchange or failed to possess any
qualification or meet any condition or requirement laid down by any such
applicable regulatory authority or professional body or by any legislation or
regulations;

<PAGE>

                    (iii) acted in a way which in the reasonable view of the
Board brought the Executive, the Company or any Group Company into material
disrepute, whether or not such act was directly related to the affairs of the
Company or any Group Company;

                    (iv) violated any rules of the Company relating to dealings
with the shares of the Company or any Group Company and/or entered into any
transaction which contravenes the insider dealing provisions of the Securities
Exchange Act of 1934, as amended or any other applicable statute, rule, or
regulation relating to dealings of shares;

               (b) the conviction of the Executive of, or the entry of a
pleading of guilty or nolo contendere by the Executive to, any crime involving
moral turpitude or any felony;

               (c) any material breach of this Agreement by the Executive; or

               (d) the Executive becomes disqualified by any court,
administrative agency, regulatory authority or professional body from acting as
a director of the Company and/or any Group Company, or resigns from any office
he holds as a director of the Company or any Group Company (other than upon the
written request or written consent of the Company); or

               (e) the Company has entered into a definitive written agreement
providing for the merger, consolidation, reorganization, recapitalization, or
statutory share exchange involving the Company or a sale or other disposition of
all or substantially all of the assets of the Company in one or a series of
transactions which has resulted or will result in the termination of this
Agreement, and the Executive has rejected alternative employment by the Company
or its successor on terms and conditions which are substantially similar in all
material respects to the terms and conditions of this Agreement (as determined
by the Board in its sole discretion).

          1.3 "Chairman" shall mean the Chairman of the Board of the Parent
Company or its designee, as may be appointed from time to time.

          1.4 "Good Reason" shall mean a good faith determination by the
Executive that there has occurred a material breach by the Company of any
provision of the Agreement, including, without limitation, a material diminution
in the Executive's position, authority or responsibilities or a material
reduction in his salary or benefits, which breach continues for more than thirty
(30) business days following receipt by the Company of written notice from the
Executive setting forth in reasonable detail the nature of such breach.

          1.5 "Group Company" shall mean each and every all company and/or
corporation in any jurisdiction: (a) which from time to time is a parent company
or subsidiary of the Company; (b) which from time to time is a parent company or
subsidiary of Biovex Ltd.; or (c) over which the Company or Biovex Ltd. has
voting control.

          1.6 "Prospective Customer" shall mean any person with whom the Company
or any Group Company is in negotiations in relation to the sale or supply of
goods and/or services by the Company or any Group Company or to whom the Company
or any Group Company has submitted an offer relating to such sale or supply
arrangement.

                                       -2-

<PAGE>

     2. Term of Employment. The Company hereby agrees to employ the Executive on
an at will basis, and the Executive hereby accepts such employment with the
Company, upon the terms set forth in this Agreement, commencing on the date set
forth above (the "Start Date").

     3. Title; Capacity; Duties. The Executive shall serve as the President of
the Parent Company or in such other reasonably comparable position as the Board
may determine from time to time.

          3.1 Location; Travel. The Executive's employment shall be based at the
Company's headquarters in Woburn, MA, or such place(s) in the Commonwealth of
Massachusetts or the United Kingdom as the Board shall determine. The Executive
may be required from time to time to travel to and work from such places within
or outside the United States for such periods as the Company may reasonably
require for the proper and efficient performance of the Executive's duties;
provided, however, that the Company shall provide the Executive with at least
three (3) months' advance notice prior to a required relocation.

          3.2 Duties. The Executive agrees to:

               (a) act as a director of the Company and accept any other
offices, appointments, or directorships in the Company or any Group Company and
perform such other duties and exercise such other powers in relation to the
business of the Parent Company, the Company, or any Group Company as may from
time to time be reasonably assigned to him by the Board;

               (b) devote his entire business time, attention, energies and
abilities to the business and interests of the Company and/or any Group Company;

               (c) faithfully and diligently perform his duties to the best of
his ability, act in the best interests of the Company and any Group Company at
all times and use his best efforts to promote and develop the best interests of
the Company and any Group Company;

               (d) obey the reasonable and lawful directions of the Board at all
times and comply with any lawful rules, regulations, instructions, personnel
practices and policies and any changes therein that may be adopted by the
Company from time to time;

               (e) keep the Board (or the board of directors of any other Group
Company for whom the Executive is carrying out any duties) fully informed in a
timely manner of any duties or activities the Executive undertakes on behalf of
the Company or any Group Company in such form as the Board may reasonably
require;

               (f) not obtain or accept, directly or indirectly, any discount,
rebate, gift, commission, fees or other benefit from any third party in respect
of any sale or purchase of goods or services by the Company or any Group
Company;

               (g) carry out his duties and exercise his powers jointly with any
other person appointed by the Board in its discretion to act jointly with the
Executive; and

                                       -3-

<PAGE>

               (h) comply with all applicable rules of law and all policies,
codes, rules or regulations of the Company or any Group Company, including, but
not limited to, all policies, codes, rules, or regulations relating to dealings
in shares, debentures or other securities of the Company and any Group Company
or relating to any confidential information affecting the securities of the
Company, any Group Company or any other company or corporation.

          3.3 Hours of Work. The Executive agrees to work such hours as may be
necessary for the proper and efficient performance of his duties under this
Agreement and in any event not less that the normal working hours of the
Company, as may be established from time to time.

     4. Compensation and Benefits.

          4.1 Salary. The Company shall pay the Executive, in accordance with
the Company's regular payroll practices, an annualized base salary of $252,865
for the one-year period commencing on the Start Date. This salary is paid with
respect to all of the Executive's activities undertaken or performed on behalf
of the Company and any Group Company. Such salary shall be subject to review and
adjustment from time to time, as determined by the Board.

          4.2 Bonus. Subject to the terms, conditions and rules of any
applicable bonus plan in force from time to time and the successful achievement
by the Executive and by the Company of any targets, budgets or objectives
determined by the Compensation Committee of the Company for each calendar year,
the Executive shall be eligible for a discretionary bonus of up to 30% of his
base annual salary for that year. The decision whether each target or objective
has been successfully completed, whether to pay any bonus and, if so, the amount
of any bonus to be paid, are matters within the sole discretion of the Company's
Compensation Committee. The Executive agrees that the terms, conditions and
rules applicable to the bonus plan may be varied from time to time in the
absolute discretion of the Company and acknowledges that the targets and
objectives are likely to vary from year to year. The fact that a bonus is paid
in any one year shall be no guarantee that bonuses will be paid in any
subsequent year. As the bonus is intended to incentivize the Executive to remain
in the employment of the Company, the payment of any bonus is conditional on the
Executive being employed by the Company on the day the bonus is paid.

          4.3 Fringe Benefits. The Executive shall be entitled to participate in
all benefit programs that the Company establishes and makes available to its
U.S. employees, to the extent that the Executive is eligible under (and subject
to the provisions of) the plan documents governing those programs. The terms and
conditions relating to the benefits provided under each benefit plan are as set
out in the relevant plans that the Company has in force at the applicable time,
which may change from time to time during the term of this Agreement. Any
descriptions of benefits provided by the Company (other than as stated in the
applicable plans) are provided for guidance purposes only and do not constitute
binding terms and conditions of employment. The Executive acknowledges that each
benefit plan includes detailed terms and conditions relating to his entitlement
to benefits under any given circumstances, the level of coverage and the
cessation of the benefits. The Executive is advised to obtain and review a copy
of the terms and conditions of each plan, which are available from the Company's
Human Resources Department.

                                       -4-

<PAGE>

               (a) 401(k) Plan. The Executive will be eligible to participate in
a defined contribution plan now existing or hereafter established in accordance
with Section 401(k) of the Internal Revenue Code for similarly situated
employees employed in the United States (the "401(k) Plan"), to the extent that
the Executive is or will be eligible under the provisions thereof. Pursuant to
the 401(k) Plan, each pay period the Executive may contribute to the 401(k) Plan
from his salary on a pre-tax basis, up to the maximum annual amount permitted by
applicable law. Each year the Company will contribute a total of three percent
(3%) of the Executive's base salary to the Executive's account.

               (b) Paid Time Off. The Company's paid time off schedule runs on a
calendar year basis from April 1st to March 31st.

                    (i) Holidays. The Executive will be eligible for holiday pay
for the holidays recognized by the Company in Massachusetts.

                    (ii) Vacation. The Executive shall be eligible for up to 25
days paid vacation per calendar year, accruing at a rate of 2.083 days per month
that the Executive is employed during such year. For the calendar year(s) during
which the Executive's employment commences or terminates, the Executive's
entitlement to vacation pay will be calculated on a pro rata basis. All vacation
time off must be authorized in advance by the Chief Executive Officer of the
Parent Company and must be taken at times that are convenient to the Company,
having due regard to the needs of the business of the Company or any relevant
Group Company. The Executive may not, without the prior permission of the Board,
carry forward any unused, accrued vacation days to the next calendar year.
Vacation days are not transferable into cash while the Executive remains
employed with the Company). On the termination of employment with the Company,
the Company will pay the Executive any accrued, unused vacation days.

          4.4 Reimbursement of Expenses. The Company shall reimburse the
Executive for all reasonable travel, entertainment and other expenses incurred
or paid by the Executive in connection with, or related to, the performance of
his duties, responsibilities or services under this Agreement, provided the
Executive:

               (a) Complies with any expense policy of the Company in force from
time to time;

               (b) Produces to the Company such receipts or other evidence of
actual payment of the expenses concerned as the Company reasonably requires; and

               (c) Submits all expense claims for any such expenses within three
(3) months of incurring the expenditure.

          4.5 Withholdings. All salary, bonus and other compensation payable to
the Executive shall be subject to applicable taxes and withholdings. Without
prejudice to any other rights available to the Company, the Executive consents
to the Company deducting from any sums due to him, such sums representing the
amount of any outstanding loans or advances made to the Executive by the
Company, any overpayment of salary or expenses, and any payment made to the
Executive by mistake or through misrepresentation. The Executive agrees to
timely

                                       -5-

<PAGE>

execute and convey all documentation necessary to authorize the Company to
deduct any sums due pursuant to this Section 4.5.

     5. Employment Termination. This Agreement and the employment of the
Executive shall terminate upon the occurrence of any of the following:

          5.1 At the election of either Party, immediately upon written notice
to the other.

          5.2 At the election of the Executive for Good Reason.

          5.3 At the election of the Company for Cause, immediately upon written
notice by the Company to the Executive, which notice shall identify the Cause
upon which termination is based.

          5.4 Upon the death or disability of the Executive. As used in this
Agreement, the term "disability" shall mean the inability of the Executive with
reasonable accommodation as may be required by state or federal law, due to a
physical or mental disability, for a period of ninety (90) days, whether or not
consecutive, during any 365-day period to perform the services contemplated
under this Agreement. A determination of disability shall be made by a physician
satisfactory to both the Executive and the Company; provided that if the
Executive and the Company do not agree on a physician, the Executive and the
Company shall each select a physician and these two together shall select a
third physician, and the determination as to disability by at least two of the
three physicians shall be binding on all Parties.

     6. Effect of Termination of Employment.

          6.1 Termination for Cause or by the Executive without Good Reason. In
the event the Executive's employment is terminated by the Company for Cause
pursuant to Section 5.3 or by the Executive without Good Reason pursuant to
Section 5.1, the Company shall pay to the Executive the compensation and
benefits otherwise payable to him under Section 4 through the last calendar day
of his actual employment by the Company.

          6.2 Termination Without Cause or for Good Reason. In the event the
Executive's employment is terminated by the Company without Cause pursuant to
Section 5.1 or by the Executive for Good Reason pursuant to Section 5.2, the
Company shall pay to the Executive a lump sum payment equal to 12-months of the
Executive's base salary, as then in effect (the "Severance Pay"), subject to the
Executive's execution and non-revocation of a severance agreement and release
drafted by the Company. For the avoidance of doubt, the Severance Pay shall not
include any commissions, paid time off, incentives, car allowance, 401(k)
contributions, bonuses, or other benefit provided to the Executive during his
employment.

          6.3 Termination for Death or Disability. In the event the Executive's
employment is terminated by death or because of disability pursuant to Section
5.4, the Company shall pay to the estate of the Executive or to the Executive,
as the case may be, the compensation that would otherwise be payable to the
Executive for thirty (30) calendar days after the termination of his employment
because of death or disability.

                                       -6-

<PAGE>

          6.4 Certain Post-Termination Obligations. The Executive agrees that
upon the termination of his employment with the Company for any reason:

               (a) The Executive shall resign or be considered to have resigned
from all offices he then holds in the Company and/or any Group Company;

               (b) The Executive will no longer represent himself as being in
any way connected with the business of the Company or any Group Company (except
to the extent agreed by such Company) or carry on, cause or permit to be carried
on any business under or using any name, trademark, trade dress, service mark,
style, logo or image which is or has been used by the Company or any Group
Company, or which in the reasonable opinion of the Company, is calculated to
cause confusion with such a name, trademark, trade dress, service mark, style,
logo or image or infer a connection with the Company or any Group Company; and

               (c) The Executive shall transfer to the Company (or its designee)
any nominee shares or other interests which the Executive then holds on behalf
of or in trust for the Company or any Group Company.

               (d) The Executive agrees to sign all papers and take any other
actions as may be necessary to effect his termination of employment from the
Company or any Group Company in accordance with this Section 6.4. The Executive
further agrees that if the Company is unable, after reasonable effort, to secure
the signature of the Executive on any such papers, the Chairman (or its
designee) shall be entitled to execute any such papers as the agent and the
attorney-in-fact of the Executive, and the Executive hereby irrevocably
designates and appoints the Chairman (or its designee) as his agent and
attorney-in-fact to execute any such papers on his behalf and to take any and
all actions as the Company may deem necessary or desirable in order to
effectuate the provisions of this Section 6.4.

     7. Non-Competition and Non-Solicitation.

               (a) During the Executive's employment for the Company and for a
period of one (1) year after the termination thereof for any reason, the
Executive will not, without the prior written permission of the Board, in the
geographical areas that the Company or any Group Company does business or has
done business at the time of the Executive's separation from employment,
directly or indirectly:

                    (i) engage in any business or enterprise (whether as owner,
partner, officer, director, executive, consultant, investor, lender or
otherwise, except as the holder of not more than one percent (1%) of the
outstanding stock of a publicly-held company) that is competitive with the
Company's and any Group Company's business, including, but not limited to, any
business or enterprise that develops, manufactures, markets or sells any product
or service that competes with any product or service developed, manufactured,
marketed or sold, or planned to be developed, manufactured, marketed or sold, by
the Company or any Group Company while the Executive was employed by the
Company; or

                    (ii) either alone or in association with others: (A)
solicit, recruit, induce, attempt to solicit, recruit or induce, or permit any
organization directly or indirectly controlled by the Executive to solicit,
recruit, induce, or attempt to solicit, recruit or

                                       -7-

<PAGE>

induce any director, officer, president, or vice president of the Company to
leave the employ of the Company; or (B) solicit, recruit, induce, attempt to
solicit, recruit or induce for employment or hire or engage as an independent
contractor, or permit any organization directly or indirectly controlled by the
Executive to solicit, recruit, induce, attempt to solicit, recruit or induce for
employment or hire or engage as an independent contractor, any other employee
who was employed by the Company at any time during the Executive's employment
for the Company in a managerial, technical, engineering, sales, marketing,
research and/or development capacity; provided, however, that this subsection
7(a)(ii)(B) shall not apply to any individual whose employment or engagement
with the Company has been terminated for a period of six (6) months or longer;
and/or

                    (iii) either alone or in association with others, solicit,
divert, take away, or adversely affect the relationship that the Company has
with, or attempt to solicit, divert, take away, or adversely affect the
relationship that the Company has with, or permit any organization directly or
indirectly controlled by the Executive to solicit, divert, take away, or
adversely affect the relationship that the Company has with, or attempt to
solicit, divert, take away, or adversely affect the relationship that the
Company has with, the business or patronage of any of the clients, customers,
accounts or suppliers, or prospective clients, customers, accounts or suppliers,
of the Company, which were contacted, solicited, served, or retained by the
Company at any time during the Employment Period.

               (b) The provisions of this Section 7 shall apply to the Company,
Biovex Ltd., and any current or future Group Company. The Company, Biovex Ltd.,
and any Group Company will be entitled to seek the protection of and enforce
each of the restrictions in this Section 7 directly against the Executive.

               (c) The Executive agrees that if the Executive violates the
provisions of Section 7, the Executive shall continue to be bound by the
restrictions set forth in this Section 7 until a period of one (1) year has
expired without any violation of such provisions.

               (d) If any restriction set forth in this Section 7 is found by
any court of competent jurisdiction to be unenforceable because it extends for
too long a period of time or over too great a range of activities or in too
broad a geographic area, it shall be interpreted to extend only over the maximum
period of time, range of activities or geographic area as to which it may be
enforceable.

     8. Proprietary Information and Developments.

          8.1 Proprietary Information.

               (a) The Executive agrees that all information, whether or not in
writing, of a private, secret or confidential nature concerning the Company's or
any Group Company's business, business relationships or financial affairs
(collectively, "Proprietary Information") is and shall be the exclusive property
of the Company. The Executive will not disclose any Proprietary Information to
any person or entity other than employees of the Company or use the same for any
purposes (other than in the performance of his duties as an employee of the
Company) without prior written approval from the Board, either during or after

                                       -8-

<PAGE>

his employment with the Company, unless and until such Proprietary Information
has become public knowledge without fault by the Executive. By way of
illustration, but not limitation, Proprietary Information includes:

                    (i) corporate, marketing, product development and business
development strategies and plans;

                    (ii) budgets, management accounts, bank account details and
other confidential financial data;

                    (iii) business, sales and marketing methods;

                    (iv) details, designs, know-how, technical data, techniques,
processes and specifications of or relating to any products and services being
sold, provided, manufactured, distributed, researched or developed, including
all: research and development reports and data; genetic data; databases;
chemical formulae; information relating to pre-clinical or clinical trials;
medical records; proprietary vaccines; vaccines; pharmaccines; anti-viral
therapies; disease inhibitors; proprietary bioinformatics; proprietary elements
or compounds (whether organic or inorganic); methods of manufacture; nucleotide
or nucleotide sequence including DNA and RNA sequences; gene; vector or
construct including plasmids, phages or viruses; host organism including
bacteria, fungi, algae and protozoa; hybridomas; eukaryotic or prokaryotic cell
line or expression system or any development strain or product of that cell line
or expression system; protein including any peptide or amino acid sequence,
enzyme, antibody or protein conferring targeting properties and any fragment of
a protein or a peptide enzyme or antibody; drug or pro-drug; assay or reagent;
any other genetic or biologic material or micro-organism; multi-cellular plants;
data for the derivation of molecular structures including NMR spectra, X Ray
diffraction patterns, and other primary experimental information, assignments
and other calculations, required for determination of the structure, and
co-ordinates of the derived molecular structure; and any intellectual property
rights;

                    (v) computer technology; computer programs; software
applications and systems; information relating to proprietary hardware or
software (including updates); source and object code to proprietary software;
confidential algorithms developed or used for such proprietary software; and
software and technical information necessary for the development, maintenance or
operation of any websites and the source and object code of each website;

                    (vi) details of the salaries, remuneration, fees, bonuses,
commissions and other employment terms applicable to employees, officers and
consultants;

                    (vii) the names, addresses and contact details of any
customers, any Prospective Customers, suppliers, advisers, distributors, agents
and other business partners, customer lists in whatever medium this information
is stored and the requirements of those customers or the potential requirements
of Prospective Customers for any products or services;

                    (viii) the terms and conditions of business with customers,
suppliers, advisers, distributors, agents and other business partners, including
any pricing policy,

                                       -9-

<PAGE>

discount policy or credit policy adopted and the terms of any partnership, joint
venture or other form of commercial cooperation or agreement with any third
party;

                    (ix) claims or litigation threatened against the Company;
and

                    (x) any other information which is the subject of an
obligation of confidence owed to a third party, in particular the content of
discussions or communications with any Prospective Customers or prospective
business partners.

               (b) The Executive agrees that all files, documents, letters,
memoranda, reports, records, data, sketches, drawings, methods, laboratory
notebooks, program listings, computer equipment or devices, computer programs or
other written, photographic, or other tangible material containing Proprietary
Information, whether created by the Executive or others, which shall come into
his custody or possession, as well as any plans, keys, mobile telephone,
security passes, credit cards, customer lists, price lists, equipment,
documents, records, papers, computer hardware, software or equipment, and all
property of whatever nature in his possession or control which belongs to the
Company or any Group Company (collectively, "Company Property") shall be and are
the exclusive property of the Company and are to be used by the Executive only
in the performance of his duties for the Company.

               (c) Return of Company Property.

                    (i) All materials or copies of Company Property in the
custody or possession of the Executive shall be delivered to the Company upon
the earlier of (i) a request by the Company or (ii) termination of his
employment. After such delivery (which shall be accompanied by a written
statement confirming that the Executive has complied with the obligations set
forth in this Section 8.1(c)(i)), the Executive shall not retain any such
materials or copies thereof or any such tangible property.

                    (ii) If, on the termination of the Executive's employment,
the Executive has any Proprietary Information and/or Company Property relating
to the Company or any Group Company or work the Executive has carried out for
the Company or any Group Company which is stored on a device (including, but not
limited to, any personal computer, laptop computer, web-server, personal digital
assistant, mobile telephone, memory, disk or any other storage medium) that the
Executive is under no obligation to return pursuant to the preceding Section,
the Executive agrees to disclose this fact to the Company immediately upon the
termination of his employment and agrees to provide the Company with immediate
access to the relevant device(s) so that the Company may download the
information and/or supervise its deletion from the device concerned. The
Executive will, at the Company's request, furnish the Company with a written
statement confirming that he has complied with his duty of disclosure to the
Company under this Section 8.1(c)(ii).

               (d) The Executive agrees that his obligation not to disclose or
to use information and materials of the types set forth in subsections (a) and
(b) above, and his obligation to return materials and tangible property set
forth in subsection (c) above, also extend to such types of information,
materials and tangible property of customers of the Company or

                                      -10-

<PAGE>

suppliers to the Company or other third parties who may have disclosed or
entrusted the same to the Company or to the Executive.

          8.2 Developments.

               (a) The Executive will make full and prompt disclosure to the
Company of all inventions, creations, improvements, discoveries, trade secrets,
secret processes, technology, know-how, copyrightable materials, methods,
developments, software, and works of authorship or other creative works, whether
patentable or not, which are created, made, conceived or reduced to practice by
him or under his direction or jointly with others during his employment by the
Company, whether or not during normal working hours or on the premises of the
Company (all of which are collectively referred to in this Agreement as
"Developments").

               (b) The Executive agrees to assign and does hereby assign to the
Company (or any person or entity designated by the Company) all his right, title
and interest in and to all Developments and all related patents, patent
applications, copyrights and copyright applications. However, this subsection
(b) shall not apply to Developments that do not relate to any business or
research and development conducted or planned to be conducted by the Company at
the time such Development is created, made, conceived or reduced to practice and
that are made and conceived by the Executive not during normal working hours,
not on the Company's premises and not using the Company's tools, devices,
equipment or Proprietary Information. The Executive understands that, to the
extent this Agreement shall be construed in accordance with the laws of any
state that precludes a requirement in an employment agreement to assign certain
classes of inventions made by an employee, this subsection (b) shall be
interpreted not to apply to any invention that a court rules and/or the Company
agrees falls within such classes. The Executive also hereby waives all claims to
moral rights in any Developments.

               (c) The Executive agrees to cooperate fully with the Company and
to take such further actions as may be necessary or desirable, both during and
after his employment with the Company, with respect to the procurement,
maintenance and enforcement of copyrights, patents and other intellectual
property rights (both in the United States and foreign countries) relating to
Developments. The Executive shall sign all papers, including, without
limitation, copyright applications, patent applications, declarations, oaths,
formal assignments, assignments of priority rights and powers of attorney, that
the Company may deem necessary or desirable in order to protect its rights and
interests in any Development. The Executive further agrees that if the Company
is unable, after reasonable effort, to secure the signature of the Executive on
any such papers, the Chairman (or its designee) shall be entitled to execute any
such papers as the agent and the attorney-in-fact of the Executive, and the
Executive hereby irrevocably designates and appoints the Chairman (or its
designee) as his agent and attorney-in-fact to execute any such papers on his
behalf and to take any and all actions as the Company may deem necessary or
desirable in order to protect its rights and interests in any Development under
the conditions described in this sentence.

          8.3 United States Government Obligations. The Executive acknowledges
that the Company from time to time may have agreements with other parties or
with the United States Government, or agencies thereof, which impose obligations
or restrictions on the Company

                                      -11-

<PAGE>

regarding inventions made during the course of work under such agreements or
regarding the confidential nature of such work. The Executive agrees to be bound
by all such obligations and restrictions that are made known to the Executive
and to take all action necessary to discharge the obligations of the Company
under such agreements.

          8.4 Equitable Remedies. The restrictions contained in Sections 7 and 8
are necessary for the protection of the business and goodwill of the Company and
are considered by the Executive to be reasonable for such purpose. The Executive
agrees that any breach of Sections 7 and/or 8 will cause the Company irreparable
harm. Therefore, in the event of any such breach or threatened breach, the
Executive agrees that the Company, in addition to such other remedies that may
be available, shall have the right to obtain an injunction from a court
restraining such a breach or threatened breach and the right to specific
performance of the provisions of Sections 7 and 8 without posting a bond and the
Executive hereby waives the adequacy of a remedy at law as a defense to such
relief.

          8.5 Other Agreements. The Executive hereby represents that he is not
bound by the terms of any agreement with any previous employer or other party to
refrain from using or disclosing any trade secret or confidential or proprietary
information in the course of his employment with the Company, to refrain from
competing, directly or indirectly, with the business of such previous employer
or any other party or to refrain from soliciting employees, customers or
suppliers of such previous employer or other party. The Executive further
represents that his performance of all the terms of this Agreement and the
performance of his duties as an employee of the Company does not and will not
breach any agreement to keep in confidence proprietary information, knowledge or
data acquired by him in confidence or in trust prior to his employment with the
Company and that the Executive will not disclose to the Company or induce the
Company to use any confidential or proprietary information, knowledge or
material belonging to any previous employer or others. Any agreement to which
the Executive is a party relating to nondisclosure, non-competition or
non-solicitation of employees, customers or suppliers is listed on Schedule A
attached hereto.

     9. Survival. The provisions of Sections 7 and 8 shall survive the
termination of this Agreement for any reason. The Executive agrees that any
change or changes in the Executive's employment duties, responsibilities, or
compensation after the signing of this Agreement shall not affect the validity
or scope of this Agreement.

     10. Notices Regarding Future Employments. The Executive agrees that if he
receives an offer of employment, consultancy, directorship or other office or
partnership during the effectiveness of the Executive's continuing obligations
set forth in Sections 7 and 8 above, he will prior to acceptance of an offer:

          10.1 Notify the party making the offer of Section 7, and the
restrictions on the Executive's use and disclosure of confidential information
and the provisions dealing with developments pursuant to Section 8; and

          10.2 Notify the Company of the offer, including a description of the
nature of the duties and responsibilities involved.

                                      -12-

<PAGE>

     11. Security; Privacy.

          11.1 All communications, whether by telephone, email, fax, or any
other means, which are transmitted, undertaken or received using the Company's
information technology ("IT") or communications systems or Company property are
treated by the Company as work related and the Company's IT systems and network
are provided for the Executive's use in undertaking his duties. The Executive
agrees that the Company may intercept, record and monitor all such
communications made by the Executive and his use of the Company's IT systems and
network without further notice. Accordingly, the Executive should have no
expectation of privacy with regard to any such communications. Private matters
should be conducted by the Executive outside of his working hours, away from the
Company's premises and without use of the Company's communications and IT
hardware, software, systems and/or networks.

          11.2 The Executive recognizes that the Company's interception,
recording and monitoring of communications is intended to protect the Company's
business interests, including, without limitation, for the purposes of quality
control, security of communication and IT systems, protection of the Company's
confidential information and other legitimate business interests, record-keeping
and evidential requirements, detection and prevention of criminal activity or
misconduct and to assist the Company to comply with relevant legal requirements

          11.3 The Executive agrees that intercepted communications may be used
as evidence in disciplinary or legal proceedings, including in any such action
against the Executive.

     12. Notices. Any notice the Executive is required to give under this
Agreement must be hand delivered to the Chairman (or its designee) at the
Company's principal executive office from time to time. Any notice the Company
is required to give the Executive will be hand delivered to the Executive or
sent by registered or certified mail, return receipt requested, postage prepaid
to the Executive's last home address of record. These notices will be deemed to
have been given on the date of receipt if hand delivered and, if posted, on the
day on which the letter would be delivered in the ordinary course of recorded
delivery post. Either Party may change the address to which notices are to be
delivered by giving notice of such change to the other party in the manner set
forth in this Section 12.

     13. Pronouns. Whenever the context may require, any pronouns used in this
Agreement shall include the corresponding masculine, feminine or neuter forms,
and the singular forms of nouns and pronouns shall include the plural, and vice
versa.

     14. Entire Agreement. This Agreement constitutes the entire agreement
between the parties and supersedes all prior agreements and understandings,
whether written or oral, relating to the subject matter of this Agreement
including, without limitation, the Service Agreement, all of which shall be
deemed to have been terminated by mutual consent as of the date this Agreement
comes into force and without giving rise to claims against the Company or any
Group Company. The Executive hereby acknowledges and warrants that this
Agreement states the entire agreement between the parties in relation to his
terms of employment, that there are no agreements or arrangements, whether
written or oral or implied, between the Company or any Group Company and the
Executive relating to his employment by the Company other than those

                                      -13-

<PAGE>

expressly set out in this Agreement, and that he is not entering into this
Agreement in reliance on any representation not expressly set out in this
Agreement. Nothing in this paragraph, however, shall modify, cancel or supersede
the Executive's obligations referenced in Sections 7 and 8 herein, or any other
provisions of this Agreement which are expressed to operate or have effect or
are capable of operation or effect after the termination of the Executive's
employment.

     15. Amendment. This Agreement may be amended or modified only by a written
instrument executed by both the Company and the Executive.

     16. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts (without reference
to the conflict of laws provisions thereof). Any action, suit or other legal
proceeding arising under or relating to any provision of this Agreement shall be
commenced only in a court of the Commonwealth of Massachusetts (or, if
appropriate, a federal court located within the Commonwealth of Massachusetts),
and the Company and the Executive each consents to the jurisdiction of such a
court. The Company and the Executive each hereby irrevocably waive any right to
a trial by jury in any action, suit or other legal proceeding arising under or
relating to any provision of this Agreement. For the avoidance of doubt, the
Parties agree that the laws of the United Kingdom and/or the European Union
shall not apply to any matter relating to this Agreement, including, without
limitation, the Executive's employment by the Company.

     17. Successors and Assigns; No Third Party Beneficiary. This Agreement
shall be binding upon and inure to the benefit of both parties and their
respective successors and assigns, including any corporation with which or into
which the Company may be merged or which may succeed to its assets or business;
provided, however, that the obligations of the Executive are personal and shall
not be assigned by him; and provided, further, that nothing in this contract
shall confer or purport to confer on a third party (other than any Group
Company) any benefit or any right to enforce a term of this contract.

     18. Acknowledgment. The Executive states and represents that he has had an
opportunity to fully discuss and review the terms of this Agreement with an
attorney. The Executive further states and represents that he has carefully read
this Agreement, understands the contents herein, freely and voluntarily assents
to all of the terms and conditions hereof, and signs his name of his own free
act.

     19. Miscellaneous.

          19.1 No delay or omission by the Company in exercising any right under
this Agreement shall operate as a waiver of that or any other right. A waiver or
consent given by the Company on any one occasion shall be effective only in that
instance and shall not be construed as a bar to or waiver of any right on any
other occasion.

          19.2 The captions of the sections of this Agreement are for
convenience of reference only and in no way define, limit or affect the scope or
substance of any section of this Agreement.

                                      -14-

<PAGE>

          19.3 In case any provision of this Agreement shall be invalid, illegal
or otherwise unenforceable, the validity, legality and enforceability of the
remaining provisions shall in no way be affected or impaired thereby.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year set forth above.

                                        BIOVEX GROUP, INC.

                                        By: /s/ G.W. Beynon
                                            ------------------------------------
                                        Title: C.E.O.

                                        EXECUTIVE

                                        /s/ P. Astley-Sparke
                                        ----------------------------------------
                                        Philip Astley-Sparke

                                      -15-

<PAGE>

                                   SCHEDULE A

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