Document:

<PAGE>

                                                                  EXHIBIT 10.2.7

                               BIOVEX GROUP, INC.

                            INDEMNIFICATION AGREEMENT

     This Agreement is made as of _______ 2006, by and between BioVex Group,
Inc., a Delaware corporation (the "Corporation), and _______________ (the
"Indemnitee"), a director or officer of the Corporation.

     WHEREAS, it is essential to the Corporation to retain and attract as
directors and officers the most capable persons available, and

     WHEREAS, the substantial increase in corporate litigation subjects
directors and officers to expensive litigation risks at the same time that the
availability of directors' and officers' liability insurance has been severely
limited, and

     WHEREAS, it is now and has always been the express policy of the
Corporation to indemnify its directors and officers, and

     WHEREAS, the Indemnitee does not regard the protection available under the
Corporation's Certificate of Incorporation and insurance as adequate in the
present circumstances, and may not be willing to serve or continue to serve as a
director or officer without adequate protection, and

     WHEREAS, the Corporation desires the Indemnitee to serve, or continue to
serve, as a director or officer of the Corporation;

     NOW THEREFORE, the Corporation and the Indemnitee do hereby agree as
follows:

     1. Agreement to Serve. The Indemnitee agrees to serve or continue to serve
as a director or officer of the Corporation for so long as the Indemnitee is
duly elected or appointed or until such time as the Indemnitee tenders a
resignation in writing.

     2. Definitions. As used in this Agreement:

          (a) The term "Proceeding" shall include any threatened, pending or
completed action, suit, arbitration, alternative dispute resolution proceeding,
administrative hearing or other proceeding, whether brought by or in the right
of the Corporation or otherwise and whether of a civil, criminal, administrative
or investigative nature, and any appeal therefrom.

          (b) The term "Corporate Status" shall mean the status of a person who
is or was, or has agreed to become, a director or officer of the Corporation, or
is or was serving, or has agreed to serve, at the request of the Corporation, as
a director, officer, fiduciary, partner, trustee, member, employee or agent of,
or in a similar capacity with, another corporation, partnership, joint venture,
trust, limited liability company or other enterprise.

          (c) The term "Expenses" shall include, without limitation, attorneys'
fees, retainers, court costs, transcript costs, fees and expenses of experts,
travel expenses, duplicating

<PAGE>

costs, printing and binding costs, telephone charges, postage, delivery service
fees and other disbursements or expenses of the types customarily incurred in
connection with investigations, judicial or administrative proceedings or
appeals, but shall not include the amount of judgments, fines or penalties
against Indemnitee or amounts paid in settlement in connection with such
matters.

          (d) References to "other enterprise" shall include employee benefit
plans; references to "fines" shall include any excise tax assessed with respect
to any employee benefit plan; references to "serving at the request of the
Corporation" shall include any service as a director, officer, employee or agent
of the Corporation which imposes duties on, or involves services by, such
director, officer, employee, or agent with respect to an employee benefit plan,
its participants, or beneficiaries; and a person who acted in good faith and in
a manner such person reasonably believed to be in the interests of the
participants and beneficiaries of an employee benefit plan shall be deemed to
have acted in a manner "not opposed to the best interests of the Corporation" as
referred to in this Agreement.

     3. Indemnity of Indemnitee. Subject to Sections 6, 7 and 9, the Corporation
shall indemnify the Indemnitee in connection with any Proceeding as to which the
Indemnitee is, was or is threatened to be made a party (or is otherwise
involved) by reason of the Indemnitee's Corporate Status, to the fullest extent
permitted by law (as such may be amended from time to time). In furtherance of
the foregoing and without limiting the generality thereof:

          (a) Indemnification in Third-Party Proceedings. The Corporation shall
indemnify the Indemnitee in accordance with the provisions of this Section 3(a)
if the Indemnitee was or is a party to or threatened to be made a party to or
otherwise involved in any Proceeding (other than a Proceeding by or in the right
of the Corporation to procure a judgment in its favor or a Proceeding referred
to in Section 6 below) by reason of the Indemnitee's Corporate Status or by
reason of any action alleged to have been taken or omitted in connection
therewith, against all Expenses, judgments, fines, penalties and amounts paid in
settlement actually and reasonably incurred by or on behalf of the Indemnitee in
connection with such Proceeding, if the Indemnitee acted in good faith and in a
manner which the Indemnitee reasonably believed to be in, or not opposed to, the
best interests of the Corporation and, with respect to any criminal Proceeding,
had no reasonable cause to believe that his or her conduct was unlawful.

          (b) Indemnification in Proceedings by or in the Right of the
Corporation. The Corporation shall indemnify the Indemnitee in accordance with
the provisions of this Section 3(b) if the Indemnitee was or is a party to or
threatened to be made a party to or otherwise involved in any Proceeding by or
in the right of the Corporation to procure a judgment in its favor by reason of
the Indemnitee's Corporate Status or by reason of any action alleged to have
been taken or omitted in connection therewith, against all Expenses and, to the
extent permitted by law, amounts paid in settlement actually and reasonably
incurred by or on behalf of the Indemnitee in connection with such Proceeding,
if the Indemnitee acted in good faith and in a manner which the Indemnitee
reasonably believed to be in, or not opposed to, the best interests of the
Corporation, except that, if applicable law so provides, no indemnification
shall be made under this Section 3(b) in respect of any claim, issue, or matter
as to which the Indemnitee shall have been adjudged to be liable to the
Corporation, unless, and only to the extent, that the Court of Chancery of
Delaware or the court in which such action or suit was brought shall determine

                                       2

<PAGE>

upon application that, despite the adjudication of such liability but in view of
all the circumstances of the case, the Indemnitee is fairly and reasonably
entitled to indemnity for such Expenses as the Court of Chancery or such other
court shall deem proper.

     4. Indemnification of Expenses of Successful Party. Notwithstanding any
other provision of this Agreement, to the extent that the Indemnitee has been
successful, on the merits or otherwise, in defense of any Proceeding or in
defense of any claim, issue or matter therein (other than a Proceeding referred
to in Section 6), the Indemnitee shall be indemnified against all Expenses
actually and reasonably incurred by or on behalf of the Indemnitee in connection
therewith. Without limiting the foregoing, if any Proceeding or any claim, issue
or matter therein is disposed of, on the merits or otherwise (including a
disposition without prejudice), without (i) the disposition being adverse to the
Indemnitee, (ii) an adjudication that the Indemnitee was liable to the
Corporation, (iii) a plea of guilty or nolo contendere by the Indemnitee, (iv)
an adjudication that the Indemnitee did not act in good faith and in a manner
the Indemnitee reasonably believed to be in or not opposed to the best interests
of the Corporation, and (v) with respect to any criminal proceeding, an
adjudication that the Indemnitee had reasonable cause to believe his or her
conduct was unlawful, the Indemnitee shall be considered for the purposes hereof
to have been wholly successful with respect thereto.

     5. Indemnification for Expenses of a Witness. To the extent that the
Indemnitee is, by reason of the Indemnitee's Corporate Status, a witness in any
Proceeding to which the Indemnitee is not a party, the Indemnitee shall be
indemnified against all Expenses actually and reasonably incurred by or on
behalf of the Indemnitee in connection therewith.

     6. Exceptions to Right of Indemnification. Notwithstanding anything to the
contrary in this Agreement, except as set forth in Section 10, the Corporation
shall not indemnify the Indemnitee in connection with a Proceeding (or part
thereof) initiated by the Indemnitee unless the initiation thereof was approved
by the Board of Directors of the Corporation. Notwithstanding anything to the
contrary in this Agreement, the Corporation shall not indemnify the Indemnitee
to the extent the Indemnitee is reimbursed from the proceeds of insurance, and
in the event the Corporation makes any indemnification payments to the
Indemnitee and the Indemnitee is subsequently reimbursed from the proceeds of
insurance, the Indemnitee shall promptly refund such indemnification payments to
the Corporation to the extent of such insurance reimbursement.

     7. Notification and Defense of Claim. As a condition precedent to the
Indemnitee's right to be indemnified, the Indemnitee must notify the Corporation
in writing as soon as practicable of any Proceeding for which indemnity will or
could be sought. With respect to any Proceeding of which the Corporation is so
notified, the Corporation will be entitled to participate therein at its own
expense and/or to assume the defense thereof at its own expense, with legal
counsel reasonably acceptable to the Indemnitee. After notice from the
Corporation to the Indemnitee of its election so to assume such defense, the
Corporation shall not be liable to the Indemnitee for any legal or other
expenses subsequently incurred by the Indemnitee in connection with such
Proceeding, other than as provided below in this Section 7. The Indemnitee shall
have the right to employ his or her own counsel in connection with such
Proceeding, but the fees and expenses of such counsel incurred after notice from
the Corporation of its assumption of the defense thereof shall be at the expense
of the Indemnitee unless (i) the

                                       3

<PAGE>

employment of counsel by the Indemnitee has been authorized by the Corporation,
(ii) counsel to the Indemnitee shall have reasonably concluded that there may be
a conflict of interest or position on any significant issue between the
Corporation and the Indemnitee in the conduct of the defense of such Proceeding
or (iii) the Corporation shall not in fact have employed counsel to assume the
defense of such Proceeding, in each of which cases the fees and expenses of
counsel for the Indemnitee shall be at the expense of the Corporation, except as
otherwise expressly provided by this Agreement, and provided that Indemnitee's
counsel shall cooperate reasonably with the Corporation's counsel to minimize
the cost of defending claims against the Corporation and the Indemnitee. The
Corporation shall not be entitled, without the consent of the Indemnitee, to
assume the defense of any claim brought by or in the right of the Corporation or
as to which counsel for the Indemnitee shall have reasonably made the conclusion
provided for in clause (ii) above. The Corporation shall not be required to
indemnify the Indemnitee under this Agreement for any amounts paid in settlement
of any Proceeding effected without its written consent. The Corporation shall
not settle any Proceeding in any manner that would impose any penalty or
limitation on the Indemnitee without the Indemnitee's written consent. Neither
the Corporation nor the Indemnitee will unreasonably withhold or delay their
consent to any proposed settlement.

     8. Advancement of Expenses. Subject to the provisions of Section 9, in the
event that the Corporation does not assume the defense pursuant to Section 7 of
any Proceeding of which the Corporation receives notice under this Agreement,
any Expenses actually and reasonably incurred by or on behalf of the Indemnitee
in defending such Proceeding shall be paid by the Corporation in advance of the
final disposition of such Proceeding; provided, however, that the payment of
such Expenses incurred by or on behalf of the Indemnitee in advance of the final
disposition of such Proceeding shall be made only upon receipt of an undertaking
by or on behalf of the Indemnitee to repay all amounts so advanced in the event
that it shall ultimately be determined that the Indemnitee is not entitled to be
indemnified by the Corporation as authorized in this Agreement. Such undertaking
shall be accepted without reference to the financial ability of the Indemnitee
to make repayment. Any advances and undertakings to repay pursuant to this
Section 8 shall be unsecured and interest-free.

     9. Procedures.

          (a) In order to obtain indemnification or advancement of Expenses
pursuant to this Agreement, the Indemnitee shall submit to the Corporation a
written request, including in such request such documentation and information as
is reasonably available to the Indemnitee and is reasonably necessary to
determine whether and to what extent the Indemnitee is entitled to
indemnification or advancement of Expenses. Any such indemnification or
advancement of Expenses shall be made promptly, and in any event within 60 days
after receipt by the Corporation of the written request of the Indemnitee,
unless the Corporation determines within such 60-day period that the Indemnitee
did not meet the applicable standard of conduct. Such determination, and any
determination that advanced Expenses must be repaid to the Corporation, shall be
made in each instance (a) by a majority vote of the directors of the Corporation
consisting of persons who are not at that time parties to the Proceeding
("disinterested directors"), whether or not a quorum, (b) by a committee of
disinterested directors designated by a majority vote of disinterested
directors, whether or not a quorum, (c) if there are no disinterested directors,
or if the disinterested directors so direct, by independent legal counsel

                                       4

<PAGE>

(who may, to the extent permitted by applicable law, be regular legal counsel to
the Corporation) in a written opinion, or (d) by the stockholders of the
Corporation.

          (b) The termination of any Proceeding by judgment, order, settlement,
conviction or upon a plea of nolo contendere or its equivalent, shall not, of
itself, create a presumption that the Indemnitee did not act in good faith and
in a manner that the Indemnitee reasonably believed to be in, or not opposed to,
the best interests of the Corporation, and, with respect to any criminal
Proceeding, had reasonable cause to believe that his or her conduct was
unlawful.

          (c) The Indemnitee shall cooperate with the person, persons or entity
making such determination with respect to the Indemnitee's entitlement to
indemnification, including providing to such person, persons or entity upon
reasonable advance request any documentation or information which is not
privileged or otherwise protected from disclosure and which is reasonably
available to the Indemnitee and reasonably necessary to such determination. Any
Expenses actually and reasonably incurred by the Indemnitee in so cooperating
shall be borne by the Corporation (irrespective of the determination as to the
Indemnitee's entitlement to indemnification) and the Corporation hereby
indemnifies the Indemnitee therefrom.

     10. Remedies. The right to indemnification or advancement of Expenses as
provided by this Agreement shall be enforceable by the Indemnitee in any court
of competent jurisdiction if the Corporation denies such request, in whole or in
part, or if no disposition thereof is made within the applicable period referred
to in Section 9. Unless otherwise required by law, the burden of proving that
indemnification or advancement of Expenses is not appropriate shall be on the
Corporation. Neither the failure of the Corporation to have made a determination
prior to the commencement of such action that indemnification is proper in the
circumstances because the Indemnitee has met the applicable standard of conduct,
nor an actual determination by the Corporation that the Indemnitee has not met
such applicable standard of conduct, shall be a defense to the action or create
a presumption that the Indemnitee has not met the applicable standard of
conduct. The Indemnitee's Expenses actually and reasonably incurred in
connection with successfully establishing the Indemnitee's right to
indemnification, in whole or in part, in any such Proceeding shall also be
indemnified by the Corporation.

     11. Partial Indemnification. If the Indemnitee is entitled under any
provision of this Agreement to indemnification by the Corporation for some or a
portion of the Expenses, judgments, fines, penalties or amounts paid in
settlement actually and reasonably incurred by or on behalf of the Indemnitee in
connection with any Proceeding but not, however, for the total amount thereof,
the Corporation shall nevertheless indemnify the Indemnitee for the portion of
such Expenses, judgments, fines, penalties or amounts paid in settlement to
which the Indemnitee is entitled.

     12. Subrogation. In the event of any payment under this Agreement, the
Corporation shall be subrogated to the extent of such payment to all of the
rights of recovery of the Indemnitee, who shall execute all papers required and
take all action necessary to secure such rights, including execution of such
documents as are necessary to enable the Corporation to bring suit to enforce
such rights.

                                       5

<PAGE>

     13. Term of Agreement. This Agreement shall continue until and terminate
upon the later of (a) six years after the date that the Indemnitee shall have
ceased to serve as a director or officer of the Corporation or, at the request
of the Corporation, as a director, officer, partner, trustee, member, employee
or agent of another corporation, partnership, joint venture, trust, limited
liability company or other enterprise or (b) the final termination of all
Proceedings pending on the date set forth in clause (a) in respect of which the
Indemnitee is granted rights of indemnification or advancement of Expenses
hereunder and of any proceeding commenced by the Indemnitee pursuant to Section
10 of this Agreement relating thereto.

     14. Indemnification Hereunder Not Exclusive. The indemnification and
advancement of Expenses provided by this Agreement shall not be deemed exclusive
of any other rights to which the Indemnitee may be entitled under the
Certification of Incorporation, the By-Laws, any other agreement, any vote of
stockholders or disinterested directors, the General Corporation Law of
Delaware, any other law (common or statutory), or otherwise, both as to action
in the Indemnitee's official capacity and as to action in another capacity while
holding office for the Corporation. Nothing contained in this Agreement shall be
deemed to prohibit the Corporation from purchasing and maintaining insurance, at
its expense, to protect itself or the Indemnitee against any expense, liability
or loss incurred by it or the Indemnitee in any such capacity, or arising out of
the Indemnitee's status as such, whether or not the Indemnitee would be
indemnified against such expense, liability or loss under this Agreement;
provided that the Corporation shall not be liable under this Agreement to make
any payment of amounts otherwise indemnifiable hereunder if and to the extent
that the Indemnitee has otherwise actually received such payment under any
insurance policy, contract, agreement or otherwise.

     15. No Special Rights. Nothing herein shall confer upon the Indemnitee any
right to continue to serve as an officer or director of the Corporation for any
period of time or at any particular rate of compensation.

     16. Savings Clause. If this Agreement or any portion thereof shall be
invalidated on any ground by any court of competent jurisdiction, then the
Corporation shall nevertheless indemnify the Indemnitee as to Expenses,
judgments, fines, penalties and amounts paid in settlement with respect to any
Proceeding to the full extent permitted by any applicable portion of this
Agreement that shall not have been invalidated and to the fullest extent
permitted by applicable law.

     17. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute the original.

     18. Successors and Assigns. This Agreement shall be binding upon the
Corporation and its successors and assigns and shall inure to the benefit of the
estate, heirs, executors, administrators and personal representatives of the
Indemnitee.

     19. Headings. The headings of the paragraphs of this Agreement are inserted
for convenience only and shall not be deemed to constitute part of this
Agreement or to affect the construction thereof.

                                       6

<PAGE>

     20. Modification and Waiver. This Agreement may be amended from time to
time to reflect changes in Delaware law or for other reasons. No supplement,
modification or amendment of this Agreement shall be binding unless executed in
writing by both of the parties hereto. No waiver of any of the provisions of
this Agreement shall be deemed or shall constitute a waiver of any other
provision hereof nor shall any such waiver constitute a continuing waiver.

     21. Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been given (i) when
delivered by hand or (ii) if mailed by certified or registered mail with postage
prepaid, on the third day after the date on which it is so mailed:

          (a) if to the Indemnitee, to the address indicated on the signature
page hereto

          (b) if to the Corporation, to: 245 First Street, Suite 1800,
Cambridge, Massachusetts 02142, Attention: Chief Financial Officer.

or to such other address as may have been furnished to the Indemnitee by the
Corporation or to the Corporation by the Indemnitee, as the case may be.

     22. Applicable Law. This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of Delaware. The Indemnitee
may elect to have the right to indemnification or reimbursement or advancement
of Expenses interpreted on the basis of the applicable law in effect at the time
of the occurrence of the event or events giving rise to the applicable
Proceeding, to the extent permitted by law, or on the basis of the applicable
law in effect at the time such indemnification or reimbursement or advancement
of Expenses is sought. Such election shall be made, by a notice in writing to
the Corporation, at the time indemnification or reimbursement or advancement of
Expenses is sought; provided, however, that if no such notice is given, and if
the General Corporation Law of Delaware is amended, or other Delaware law is
enacted, to permit further indemnification of the directors and officers, then
the Indemnitee shall be indemnified to the fullest extent permitted under the
General Corporation Law, as so amended, or by such other Delaware law, as so
enacted.

     23. Enforcement. The Corporation expressly confirms and agrees that it has
entered into this Agreement in order to induce the Indemnitee to continue to
serve as an officer or director of the Corporation, and acknowledges that the
Indemnitee is relying upon this Agreement in continuing in such capacity.

     24. Entire Agreement. This Agreement sets forth the entire agreement of the
parties hereto in respect of the subject matter contained herein and supercedes
all prior agreements, whether oral or written, by any officer, employee or
representative of any party hereto in respect of the subject matter contained
herein; and any prior agreement of the parties hereto in respect of the subject
matter contained herein is hereby terminated and cancelled. For avoidance of
doubt, the parties confirm that the foregoing does not apply to or limit the
Indemnitee's rights under Delaware law or the Corporation's Certificate of
Incorporation or By-Laws.

     25. Consent to Suit. In the case of any dispute under or in connection with
this Agreement, the Indemnitee may only bring suit against the Corporation in
the Court of Chancery of the State of Delaware. The Indemnitee hereby consents
to the exclusive jurisdiction and

                                       7

<PAGE>

venue of the courts of the State of Delaware, and the Indemnitee hereby waives
any claim the Indemnitee may have at any time as to forum non conveniens with
respect to such venue. The Corporation shall have the right to institute any
legal action arising out of or relating to this Agreement in any court of
competent jurisdiction. Any judgment entered against either of the parties in
any proceeding hereunder may be entered and enforced by any court of competent
jurisdiction.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the day and year first above written.

Attest:

By:                                     By:
    ---------------------------------       ------------------------------------
Name:                                   Name:
      -------------------------------         ----------------------------------
                                        Title:
                                               ---------------------------------

                                        INDEMNITEE:

                                        ----------------------------------------

                                       8<PAGE>

                                                                  EXHIBIT 10.5.1

                                 PROMISSORY NOTE

$2,500,000.00                                           Cambridge, Massachusetts
                                                                   June 29, 2006

     FOR VALUE RECEIVED, on the Maturity Date, as such term is defined in
Section 1.1 below, BIOVEX, INC., a Delaware business corporation with its chief
executive office and principal place of business presently at 245 First Street,
Cambridge, Massachusetts 02142 ("BORROWER") promises to pay to the order of
MASSACHUSETTS DEVELOPMENT FINANCE AGENCY, a body politic and corporate created
by Chapter 289 of The Acts of 1998 and established under Massachusetts General
Laws Chapter 23G as amended, ("LENDER") at its principal offices at 160 Federal
Street, Boston, MA 02110, or at such other place as the holder of this note may
from time to time designate in writing, the principal sum of TWO MILLION FIVE
HUNDRED THOUSAND DOLLARS ($2,500,000.00) or such lesser amount advanced by
Lender pursuant to Section 1.1 below (the "LOAN"), or so much thereof then
remaining unpaid, in lawful money of the United States with interest at the rate
or rates set forth below, until fully paid. Borrower further agrees to pay upon
demand made after the occurrence and during the continuance of an Event of
Default, as such term is defined below, all costs, including reasonable
attorneys' fees reasonably incurred in the collection of Borrower's obligations
and the defense, preservation, enforcement or protection of Lender's rights and
remedies under this Note, or in the foreclosure of any mortgage or security
interest now or hereafter securing the same or in any proceedings to otherwise
enforce or protect upon an Event of Default Lender's rights and remedies under
this Note or any security therefor. Interest on this Note shall be computed on
the basis of a year of three hundred sixty (360) days and actual days elapsed.

     1.0. FUNDING; TERM; INTEREST RATE; PAYMENTS.

          1.1. FUNDING; TERM.

          (a) Borrower may request one (1) or more advances of up to the entire
     principal amount of this Note for the installation of the Tenant
     Improvements, as such term is defined in that certain Leasehold Mortgage by
     and between Lender and Borrower, of even date herewith (the "MORTGAGE"), at
     the premises located at 34-A Commerce Way, Woburn, Massachusetts (the
     "PREMISES"). All advances pursuant to this Section 1.1(a) shall be made
     upon satisfaction of those conditions precedent specified in that certain
     Construction Rider to Leasehold Mortgage and Security Agreement by and
     between Borrower and Lender of even date herewith.

          (b) Borrower may request one (1) or more advances, subject to
     availability of funds hereunder as a result of advances made pursuant to
     Section 1.1(a) above and the limitation on the total aggregate advances
     made pursuant to this Section 1.1(b) set forth below, for the purpose of
     purchasing new or used equipment (the "EQUIPMENT") to be operated and
     maintained at the Premises provided that (i) Borrower's request for the
     advance is accompanied by invoices evidencing the purchase of the Equipment
     for which the advance is sought and evidence of delivery of such Equipment
     to the Premises and (ii) such advance does not exceed eighty-five percent
     (85%) of the invoice cost of the Equipment purchased with the funds
     advanced hereunder. Total advances made pursuant to this Section 1.1(b)
     shall not exceed an aggregate of Seven Hundred Thousand Dollars
     ($700,000.00).

          (c) Total advances made pursuant to Section 1.1(a) and (b) for Phase I
     of the Tenant Improvements, as set forth in the plans and specifications
     certified by the architect for the Tenant

<PAGE>

     Improvements to be delivered and approved by Lender (the "PLANS")
     (described as the build-out of an analytical laboratory, a small scale
     Pilot-cGMP manufacturing facility and office space), shall not exceed
     twenty-five percent (25%) of the overall project costs for Phase I. Total
     advances made pursuant to Section 1.1(a) and (b) for Phase I and Phase II
     of the Tenant Improvements as set forth in the Plans shall not exceed
     twenty-five percent (25%) of the overall project costs for the Tenant
     Improvements. Each request for an advance hereunder shall constitute a
     representation and warranty by Borrower that all applicable conditions to
     such advance have been satisfied on the date of such request. Provided no
     Event of Default exists on the date of each request for an advance and no
     event or circumstance exists on such date which with the passage time, or
     notice, or both would result in an Event of Default, Lender shall advance
     the full requested amount within ten (10) business days of the date of such
     request (the "FUND DATE"). The term of this Note shall commence on July 1,
     2006 (the "TERM COMMENCEMENT DATE") and shall mature on June 1, 2013 (the
     "MATURITY DATE")

          1.2. PAYMENTS OF PRINCIPAL AND INTEREST. Payments of interest only
     during the first eighteen (18) months of the term of this Note, at the rate
     provided in Section 1.3 below, shall be due and payable and shall commence
     on the first day of the calendar month next following the first Fund Date
     (the "PAYMENT START DATE"). Each such payment of accrued interest shall be
     paid in arrears. Thereafter, subject to the adjustment in payment provided
     in Section 1.4 below, payments of principal and interest at the rate
     provided in Section 1.3 below shall commence on the nineteen (19) month
     anniversary of the Term Commencement Date (the "AMORTIZATION COMMENCEMENT
     DATE") and shall continue on the same date of each successive month
     thereafter through and including the Maturity Date, at which time all
     remaining principal and accrued interest shall be paid. Each such monthly
     payment shall include principal equal to the aggregate then outstanding
     principal amount divided by the number of months then remaining in the term
     plus accrued interest on the outstanding principal balance at the rate
     provided in Section 1.3 (or, if applicable, Section 1.4) and shall be paid
     in arrears.

          1.3. INTEREST RATE. So long as no Event of Default (hereafter defined)
     has occurred and is continuing (but subject to applicable cure or grace
     periods), and subject to the adjustment in the interest rate provided in
     Section 1.4 below, the principal outstanding hereunder from time to time
     shall bear interest, beginning on the Payment Start Date, on the
     outstanding principal amount of this Note at a rate of six percent (6%) per
     annum (based upon a three hundred and sixty (360) day year and actual days
     elapsed).

          1.4. ADDITIONAL INTEREST AMOUNT, PAYMENT AND ADJUSTMENT TO INTEREST
     RATE.

          (a) Upon the occurrence of any Trigger Event (defined in Section
     1.4(c) below), an Additional Interest Amount, as defined below, shall be
     calculated in respect of the outstanding principal amount of this Note for
     a period (the "ADDITIONAL INTEREST COMPUTATION PERIOD") commencing on the
     Payment Start Date and ending on the Additional Interest Payment Date
     (defined below). The "ADDITIONAL INTEREST AMOUNT" shall be equal to the
     difference between (i) the aggregate interest amount that would have
     accrued on the outstanding principal amount of this Note during the
     Additional Interest Computation Period at an annual interest rate equal to
     ten percent (10%) based upon a three hundred and sixty (360) day year and
     actual days elapsed, and (ii) the aggregate amount of interest due and
     payable to Lender hereunder during the same period pursuant to Section 1.3
     of this Note. The Additional Interest Amount shall be paid to Lender in one
     (1) lump sum on the due date (the "ADDITIONAL INTEREST PAYMENT DATE") which
     shall be the date of the regularly scheduled monthly installment next
     following the date of the Trigger Event,

                                       2

<PAGE>

     which Additional Interest Amount shall be paid together with such regularly
     scheduled monthly installment.

          (b) Beginning with the Additional Interest Payment Date and continuing
     thereafter for the remainder of the term of this Note, interest on any
     principal outstanding hereunder shall accrue and be payable in arrears
     hereunder at ten percent (10%) per annum together with the principal sum
     due pursuant to Section 1.2.

          (c) For purposes of this Note, a "TRIGGER EVENT" shall mean any of the
     following: (i) the date that Borrower's audited financial statements
     reflect achievement by Borrower of EBITDA (calculated in the manner set
     forth) greater than or equal to ten thousand dollars ($10,000) for any
     complete twelve-month fiscal year, (ii) the Borrower is acquired or merged,
     whether Borrower is the surviving entity or not, during the term of this
     Note, or (iii) the Borrower completes an initial public offering of its
     stock. For purposes of this Note, "EBITDA" shall mean for any complete
     twelve-month fiscal year the sum of (i) net income (or loss) of Borrower
     for such period (excluding extraordinary gains and non-cash gains,
     including without limitation any one-time or lump sum license fees and
     development, milestone or similar payments made by any third party as part
     of a strategic partnership or similar arrangement), plus (ii) all interest
     expense of Borrower for such fiscal year, plus (iii) all charges against
     income of Borrower for such fiscal year for federal, state and local taxes,
     plus (iv) depreciation expenses for such fiscal year, plus (v) amortization
     expenses for such period, all determined in accordance with generally
     accepted accounting principles in the United States of America in effect
     from time to time applied on a consistent basis and with reference to the
     Borrower's audited financial statements with respect to such fiscal year.

     2.0. DEFAULT RATE. To the extent allowed by applicable law, after the
occurrence of any Event of Default and during the continuation thereof (and
after giving effect to any applicable grace or cure periods), after the Maturity
Date, or after judgment has been rendered on this Note, all outstanding
principal and unpaid interest shall bear, until paid, interest at a rate per
annum equal to five (5%) percentage points greater than that which would
otherwise be applicable assessed retroactive to the date that the Event of
Default first occurs (the "DEFAULT RATE").

     3.0. LATE CHARGE. If a regularly scheduled payment is ten (10) days or more
late, Borrower will be charged five percent (5%) of the unpaid portion of the
regularly scheduled payment or ten dollars ($10.00), whichever is greater. If
Lender demands payment of this Loan after the occurrence and during the
continuation of an Event of Default (after giving effect to any applicable grace
or cure periods), and Borrower does not pay the Loan within fifteen (15) days
after Lender's demand, Borrower will be charged either five percent (5%) of the
unpaid principal amount plus accrued unpaid interest or ten dollars ($10.00),
whichever is greater.

     4.0. EXPENSES. Borrower further promises to pay to Lender, as incurred, and
as an additional part of the unpaid principal amount, upon demand made after the
occurrence and during the continuance of an Event of Default all costs, expenses
and reasonable attorneys' fees reasonably incurred by Lender: (a) in the
protection, modification, collection, defense or enforcement of all or part of
this Note or any guaranty hereof; or (b) in the foreclosure or enforcement of
any mortgage or security interest which may now or hereafter secure the debt
hereunder, or (c) with respect to any action taken to protect, defend, modify or
sustain the lien of any such mortgage or security agreement; or (d) with respect
to any litigation or controversy arising from or connected with this Note or any
mortgage or security agreement or collateral which may now or hereafter secure
this Note; or (e) with respect to any act to protect defend, modify, enforce or
release any of its rights or remedies with regard to, or otherwise effect
collection of,

                                       3

<PAGE>

any collateral which may now or in the future secure this Note or with regard to
or against Borrower or any endorser, guarantor or surety of this Note.

     5.0 OPTIONAL PREPAYMENT; TERMINATION. (a) Borrower may at any time elect to
prepay the unpaid amount of this Note, or any part thereof, without penalty or
premium; provided, however, that, notwithstanding anything hereinto the
contrary, in the event that any Additional Interest Amount is due and payable
pursuant to Section 1.4 hereof, any such prepayment shall first be applied to
(i) the Additional Interest Amount then owed, then to (ii) any unpaid Expenses
required by Section 4.0 above, then to (iii) Late Fees, if any are due, then to
(iv) Default Rate interest, if any is due, then to (v) regularly accrued but
unpaid interest pursuant to Section 1.3 above, and then finally to (vi) the
principal amount outstanding.

     (b) Borrower may terminate the Loan facility at any time provided that (i)
no principal, interest, fees, expenses or other amounts remain outstanding
hereunder and (ii) Borrower provides Lender with written notice of its election
to terminate this Loan.

     6.0. DEFAULT. The happening of any of the following events or conditions
shall constitute an "EVENT OF DEFAULT" under this Note:

          6.1. Failure to make any payment of principal or interest on any sum
     due under this Note within five (5) days after written notice that the same
     is due and payable; provided, however, that Lender shall not be required to
     provide such written notice more than twice in any twelve (12) month
     period.

          6.2. Failure by Borrower to observe or perform any covenant contained
     herein or a default or the occurrence of an event of default in any
     agreement between Borrower and Lender in connection herewith, including
     that certain Leasehold Mortgage and Security Agreement by and between
     Borrower and Lender of even date herewith (the "MORTGAGE"), beyond the
     applicable grace or cure period (or, if no such grace or cure period is
     specified, then beyond thirty (30) days following the occurrence of any
     such default or event of default), provided, however, that if such default
     or event of default cannot be cured within the applicable grace or cure
     period, provided Borrower commences cure within thirty (30) days of such
     default or event of default and continuously and diligently pursues such
     cure thereafter, such applicable grace or cure period shall be extended an
     additional sixty (60) days.

          6.3. A material default or the occurrence of a material event of
     default under that certain Commercial Lease by and between Borrower and
     Cummings Properties, LLC ("LANDLORD") dated December 2, 2005, including all
     addenda and riders thereto (the "LEASE") beyond the applicable grace or
     cure period. A "material" default as provided in this Section 6.3 mean any
     breach and/or default of any covenant, term or condition of the Lease which
     in the Lender's good faith reasonable belief evidences an unacceptable
     decline in the Borrower's ability to fully perform its obligations under
     this Note.

          6.4 Failure of Borrower to maintain the term of the Lease throughout
     the full term of this Note except for any termination arising from casualty
     or condemnation.

          6.5. Any cancellation, termination, surrender or transfer of the
     Lease, or any amendment or modification thereof without the Lender's prior
     written consent.

                                       4

<PAGE>

          6.6. Any representation or warranty made by Borrower herein or in any
     agreement executed in connection herewith, including the Mortgage, or any
     statement, certificate or other data furnished by Borrower in connection
     herewith or with such agreements, proves at any time to be incorrect in any
     material respect.

          6.7. A final judgment or judgments for the payment of money shall be
     rendered against Borrower in an amount, individually or in the aggregate,
     of at least two hundred fifty thousand dollars ($250,000.00), and any such
     judgment shall remain unsatisfied and in effect for any period of thirty
     (30) consecutive days without a stay of execution, and the Lender holds the
     good faith belief that such unsatisfied judgment or unstayed execution is
     materially adverse to the condition (financial or otherwise) of the
     Borrower or the Lender's collateral for this Note.

          6.8. Borrower shall: (a) apply for or consent to the appointment of a
     receiver, trustee or liquidator of all or a substantial part of any of its
     assets; (b) admit in writing its inability to pay its debts as they mature;
     or (c) file or permit the filing of any petition, case arrangement,
     reorganization, or the like under any insolvency or bankruptcy law, or the
     adjudication of it as a bankrupt, or the making of an assignment for the
     benefit of creditors or the consenting to any form or arrangement for the
     satisfaction, settlement or delay of debt or the appointment of a receiver
     for all or any part of its properties.

          6.9. An order, judgment or decree shall be entered, or a case shall be
     commenced, against Borrower, without its application, approval or consent
     by any court of competent jurisdiction, approving a petition or permitting
     the commencement of a case seeking reorganization or liquidation of
     Borrower or appointing a receiver, trustee or liquidator of Borrower, or of
     all or a substantial part of the assets of Borrower, and Borrower, by any
     act, indicates its approval thereof, consent thereto, or acquiescence
     therein, or such order, judgment, decree or case shall continue unstayed
     and in effect for any period of sixty (60) consecutive days, or an order
     for relief in connection therewith shall be entered.

          6.10. If Borrower shall dissolve or liquidate, or be dissolved or
     liquidated, or cease to legally exist or failure of the Borrower to pay the
     Additional Interest Amount due from any merger or consolidation
     constituting a Trigger Event.

          6.11. Failure of Borrower to pay any other indebtedness or obligation,
     or if any such other indebtedness or obligation shall be accelerated, or if
     there exists any event of default under any instrument, document or
     agreement governing, evidencing or securing such other indebtedness or
     obligation, in any event, in an amount, individually or in the aggregate,
     of at least two hundred fifty thousand dollars ($250,000.00); and any such
     amount remains unpaid or any such indebtedness or obligations remains
     accelerated or any such event of default remains uncured, in each case, for
     any period of thirty (30) consecutive days; and the Lender holds the good
     faith belief that such unpaid indebtedness or event of default is
     materially adverse to the condition (financial or otherwise) of the
     Borrower or the Lender's collateral for this Note.

          6.12. Intentionally deleted.

          6.13. The Borrower, for any reason, fails to maintain, or ceases the
     operations necessary for the development, application and manufacturing of
     OncoVEX, ImmunoVEX and other cancer and theraputic vaccines on the
     Premises.

                                       5

<PAGE>

          6.14. Failure of the Borrower to pay the Additional Interest Amount
     due from any sale by Borrower of all or substantially all its assets, or a
     change in the ownership of the capital stock of the Borrower, constituting
     a Trigger Event.

     Upon and after an Event of Default, the whole of said indebtedness, both
principal and interest, and including any other sums which may become due under
this Note, shall, at the option of the holder of this Note, immediately become
due and payable without presentment, demand, protest, notice of protest, or
other notice of dishonor of any kind, all of which are hereby expressly waived
by Borrower.

     7.0. MAXIMUM PERMISSIBLE INTEREST RATE. Borrower shall not be obligated to
pay and Lender shall not collect interest at a rate higher than the maximum
permitted by law or the maximum that will not subject Lender to any civil or
criminal penalties. If, because of the acceleration of maturity the payment of
interest in advance or any other reason, Borrower is required, under the
provisions hereof, pursuant to the provisions of any other agreements,
instruments, documents, security agreements, mortgages, financing statements,
and supplements thereto and relating to the Loan, or entered into between
Borrower in favor of, or with, Lender, at any time, for any purpose (the "LOAN
DOCUMENTS") or otherwise, to pay interest at a rate in excess of such maximum
rate, the rate of interest under such provisions shall immediately and
automatically be reduced to such maximum rate and any payment made in excess of
such maximum rate shall be applied to principal outstanding hereunder or, if
received by applicable law, shall be returned to Borrower.

     8.0. SOURCE OF LOAN; LIMITED RECOURSE. Borrower hereby acknowledges that
the Loan is being made by Lender from the Commonwealth of Massachusetts's
Emerging Technology Fund created pursuant to Section 27 of Chapter 23G of
Massachusetts General Laws (the "FUND") which is administered by Lender. In
consideration of the Lender's agreement to make the Loan, to the extent that the
Borrower ever has any off-sets, defenses or claims against the Lender, its
subsidiaries, affiliates, any members of the Fund's advisory committee, parents,
officers, directors, employees, agents, predecessors, successors and assigns,
both present and former (collectively, the "LENDER AFFILIATES"), the Borrower
and its partners, subsidiaries, affiliates, parents, officers, directors,
employees, agents, heirs, successors, assigns, and executors, (collectively, the
"OBLIGOR PARTIES"), agree that any recourse an Obligor Party may have against
the Lender or any Lender Affiliate will be limited to the Fund for any action
and actions, cause and causes of action, suits, debts, controversies, damages,
judgments, executions, claims and demands whatsoever asserted or unasserted, in
contract, tort, law or in equity which the Obligor Parties may have upon or
against the Lender or any Lender Affiliate by reason of any matter, cause,
causes or thing whatsoever including, without limitation, to any claim that
relates to, in whole or in part, directly or indirectly (a) the making or
administration of the Loan, including, without limitation, such claims and
defenses based on mistake, usury, misrepresentation, or negligence; (b) any
covenants, agreements, duties, or obligations set forth in the Loan Documents;
(c) the actions or omissions of the Lender or any Lender Affiliate in connection
with the initiation or continuing exercise of any right or remedy contained in
the Loan Documents or at law or in equity; (d) lost profits; (e) loss of
business opportunity; (f) increased financing costs; (g) increased legal or
administrative fees; or (h) damages to business reputation, but excluding the
gross negligence and willful misconduct of the Lender.

     9.0. REPLACEMENT DOCUMENTS. Upon receipt of an affidavit of an officer of
Lender as to the loss, theft, destruction or mutilation of the Note or any other
security document(s), together with an agreement reasonably satisfactory to the
Borrower to indemnify the Borrower from any loss incurred by it in connection
therewith, and, in the case of any such loss, theft, destruction or mutilation,
upon surrender and cancellation of such Note or other document(s), Borrower will
issue, in lieu thereof, a replacement Note or other document(s) in the same
principal amount thereof and otherwise of like tenor.

     10.0 INTENTIONALLY DELETED.

                                       6

<PAGE>

     11.0. CONSENT TO JURISDICTION. Borrower hereby agrees that any state or
local court of the Commonwealth of Massachusetts or any United States District
Court for the District of Massachusetts or, at the option of Lender, any court
in which Lender shall initiate legal or equitable proceedings and which has
subject matter jurisdiction over the matter in controversy, shall have exclusive
jurisdiction to hear and determine any claims or disputes between Borrower and
Lender pertaining directly or indirectly to this Note or to any matter arising
in connection with this Note.

     12.0. WAIVERS. Borrower agrees that no delay or failure on the part of the
holder in exercising any power, privilege, remedy, option or right hereunder
shall operate as a waiver thereof or of any other power, privilege, remedy or
right; nor shall any single or partial exercise of any power, privilege, remedy,
option or right hereunder preclude any other or future exercise thereof or the
exercise of any other power, privilege, remedy, option or right. The rights and
remedies expressed herein are cumulative, and may be enforced successively,
alternately, or concurrently and are not exclusive of any rights or remedies
which holder may or would otherwise have under the provisions of all applicable
laws, and under the provisions of all agreements between Borrower and Lender.

     Borrower hereby waives presentment, demand, notice, protest and all other
demands and notices in connection with the delivery, acceptance, performance,
default or enforcement of this Note. Borrower hereby assents to any extension or
postponement of the time of payment or any other indulgence, to the addition or
release of any party or person primarily or secondarily liable, and to the
addition, release and/or substitution of all or any portion of any collateral
now or hereafter securing this Note.

     BORROWER AND LENDER MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED
HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE OR ANY OTHER
DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF
ANY PARTY. THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR LENDER TO MAKE THE
LOAN AND ACCEPT THIS NOTE.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       7

<PAGE>

     This Note is executed as a sealed instrument and shall be governed by and
construed in accordance with the laws of the Commonwealth of Massachusetts.

WITNESS:                                BORROWER:

                                        BIOVEX, INC.

/s/ [signature illegible]               By: /s/ Philip Astley-Sparke
-------------------------------------       ------------------------------------
                                            Philip Astley-Sparke,
                                            President
                                            Duly Authorized

                                       8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}]]