Exhibit 10.13
 
LOC AGREEMENT

This LOC AGREEMENT (this “Agreement”) is made and entered into effective as of
March 9, 2012 by and between HELIX BIOMEDIX, INC., a Delaware corporation (the
“Company”), and Frank T. Nickell (“Nickell”) and supersedes in its entirety that
certain LOC Agreement by and between the Company and Nickell dated effective as
of March 6, 2012.

RECITALS

WHEREAS, Nickell has arranged for a line of credit (the “LOC”) to be extended to
the Company by Nickell’s bank as set forth in Exhibit A hereto; and

WHEREAS, in consideration therefor, the Company hereby agrees as provided
herein;

AGREEMENT

NOW, THEREFORE, in consideration of the premises, the mutual covenants of the
parties hereinafter set forth and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

1.  Line of Credit.  Nickell hereby agrees to use commercially reasonable
efforts to arrange for and maintain the LOC extended to the Company by Nickell’s
bank as set forth in Exhibit A hereto.

2.  Equity Financing and Repayment.  The Company shall use commercially
reasonable efforts to consummate an equity financing prior to the termination
date of the LOC in which it would sell and issue shares of its Common Stock at a
price per share of at least $0.60 for aggregate proceeds of at least $3,000,000,
upon consummation of which all amounts outstanding under the LOC shall be
immediately repaid, provided that all amounts outstanding under the LOC shall be
repaid in any event no later than July 1, 2014.

3.  Warrant.  The Company shall grant to Nickell a five-year fully vested
warrant to purchase 2,000,000 shares of the Company’s Common Stock at an
exercise price equal to the closing price of the Company’s Common Stock on the
date of grant.

4.  Miscellaneous.

4.1  Governing Law.  This Agreement shall in all respects be governed by and
construed and enforced in accordance with the laws of the State of Washington,
as such laws apply to contracts entered into and wholly to be performed within
such state.

4.2  Successors and Assigns.  Except as otherwise provided herein, the
provisions hereof shall inure to the benefit of, and be binding upon, the
successors, assigns, heirs, executors and administrators of the parties hereto.

4.3  Entire Agreement; Amendment.  This Agreement constitutes the full and
entire understanding and agreement between the parties with regard to the
subject matter hereof, and no party shall be liable or bound to any other party
in any manner by any warranties, representations or covenants except as
specifically set forth herein or therein.  Except as expressly provided herein,
neither this Agreement nor any term hereof may be amended, waived, discharged or
terminated other than by a written instrument signed by the party against whom
enforcement of any such amendment, waiver, discharge or termination is sought.

4.4  Expenses.  The Company shall reimburse Nickell for Nickell’s reasonable
expenses in connection with the LOC, including, without limitation, any interest
accrued and payable by Nickell in connection with the LOC.

5.5  Counterparts.  This Agreement may be executed in any number of
counterparts, each of which shall be enforceable against the party or parties
actually executing such counterparts, and all of which together shall constitute
one instrument.
 
 
 

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

  HELIX BIOMEDIX, INC.     NICKELL:               By:
/s/ R. Stephen Beatty
   
/s/ Frank T. Nickell
   
R. Stephen Beatty, President and
   
Frank T. Nickell
   
Chief Executive Officer
   
 
 

 
 
 

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EXHIBIT A

LOC
 
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