This Employment Agreement (this "Agreement"), dated as of September 24, 2003, and effective as of July 1,
2003 (the "Effective Date"), is made and entered into by and between Helix BioMedix, Inc., a Delaware
corporation, (the "Company"), and R. Stephen Beatty (the "Executive").
The Company and Executive hereby agree as follows:
The Company will employ Executive and Executive will accept employment by the Company as President and
Chief Executive Officer. During Executive's employment, Executive shall serve the Company faithfully and to the
best of his ability, devoting substantially all his working time, attention and energies to the business of the
Company, unless otherwise approved in writing by the Board of Directors of the Company (the "Board").
Subject to the direction of the Board, Executive will have such reasonable duties, responsibilities, powers and
authority as are prescribed by the Board or the bylaws of the Company. Executive shall not engage in any other
business activity (except the management of personal investments and charitable and civic activities that in the
aggregate do not interfere with the performance of Executive's duties) without first obtaining the written consent
of the Board, and such consent shall not unreasonably be withheld.
2. TERM OF AGREEMENT
The term of this Agreement ("Term") shall commence on July 1, 2003 and will continue in effect until June 30,
2006, unless otherwise terminated as set forth herein.
(a) BASE SALARY. Company shall pay Executive a base salary at an annual rate of Two Hundred Eighty Five
Thousand Dollars ($285,000) payable in accordance with Company's regular pay schedule for senior
management. The Board shall review Executive's salary and performance annually, and Executive shall be eligible
for an increase in his base salary based on such review.
(b) STOCK OPTIONS. The Company shall issue options to Executive to acquire shares of the Company's
common stock ("Sh