Document:

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Exhibit 10.1

                              HELIX BIOMEDIX, INC.

                   COMMON STOCK AND WARRANT PURCHASE AGREEMENT

      This Common Stock and Warrant Purchase Agreement (the "Agreement") is made
as of February 15, 2005 by and between Helix BioMedix, Inc., a Delaware
corporation (the "Company") and the investors listed on Exhibit A attached
hereto (each a "Purchaser" and together the "Purchasers").

      The parties hereby agree as follows:

      1.    PURCHASE AND SALE OF COMMON STOCK AND WARRANTS.

            1.1   SALE AND ISSUANCE OF COMMON STOCK AND WARRANTS.

                  (a) The Company will, prior to the Initial Closing (as defined
below), authorize the sale and issuance of up to 3,000,000 shares of the
Company's $0.001 par value common stock ("Shares"). The Shares will have the
rights set forth in the Certificate of Incorporation of the Company
("Certificate").

                  (b) In addition the Company will, prior to the Initial
Closing, authorize the sale and issuance of warrants to Purchasers who purchase
$750,000 or more of the Shares, to purchase up to ten percent (10%) of the
number of Shares purchased of $0.001 par value common stock in the form attached
hereto as Exhibit B ("Warrants") (Shares and Warrants are collectively referred
to herein as "Securities").

                  (c) Subject to the terms and conditions of this Agreement,
each Purchaser agrees to purchase at the closing and the Company agrees to sell
and issue to each Purchaser at the closing that number of Shares and a Warrant
to purchase the number of shares of common stock set forth opposite each such
Purchaser's name on Exhibit A. The aggregate purchase price of each Share and,
if applicable, the corresponding Warrant share is $1.50.

            1.2   CLOSING; DELIVERY.

                  (a) The purchase and sale of the Securities shall take place
at the offices of the Company, 22122 - 20th Avenue SE, Bothell, WA 98021, on or
before February 15, 2005 (which time and place are designated as the "Initial
Closing").

                  (b) If less than all of the Securities are sold and issued at
the Initial Closing, subject to the terms and conditions of this Agreement, the
Company may sell and issue at one or more subsequent closings (each, a
"Subsequent Closing"), up to the balance of the unissued Securities to such
persons or entities as may be approved by the Company in its sole discretion.
Any such sale and issuance in a Subsequent Closing shall be on the same terms
and conditions as those contained herein. In the event there is more than one
closing, the term "Closing" shall apply to the Initial Closing and each such
Subsequent Closing unless otherwise specified herein.

                  (c) At each Closing, the Company shall deliver to each
Purchaser certificates representing the Securities being purchased thereby
against payment of the purchase price therefor by wire transfer to a bank
account designated by the Company.

      2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby
represents and warrants to each Purchaser that, except as set forth on a
Schedule of Exceptions delivered separately by the Company to each Purchaser,
which exceptions shall be deemed to be representations and warranties as if made
hereunder:

            2.1 ORGANIZATION, GOOD STANDING AND QUALIFICATION. The Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware and has all requisite corporate power and authority to
carry on its business. The Company is duly qualified to transact business and is
in

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good standing in each jurisdiction in which the failure so to qualify would have
a material adverse effect on its business or properties.

            2.2 CAPITALIZATION. The authorized capital of the Company consists,
or will consist, immediately prior to the Initial Closing, of:

                  (a) 25,000,000 shares of Preferred Stock, of which 220,000
shares have been designated Series A Junior Participating Preferred Stock, none
of which are issued and outstanding and all of which are reserved for issuance
pursuant to the Company's Rights Agreement dated August 21, 2003 ("Rights
Agreement"). The rights, privileges and preferences of the Preferred Stock are
as stated in the Certificate.

                  (b) 100,000,000 shares of Common Stock, of which 13,533,370
shares of have been issued and outstanding. All of the outstanding shares of
Common Stock have been duly authorized, are fully paid and nonassessable and
were issued in compliance with all applicable federal and state securities laws.

                  (c) The Company has reserved 5,400,000 shares of Common Stock
for issuance to officers, directors, employees and consultants of the Company
pursuant to its 2000 Stock Option Plan duly adopted by the Board of Directors
and approved by the Company stockholders (the "Stock Plan"). Of such reserved
shares of Common Stock, 2,463,666 are covered by option grant agreements and
2,891,334 remain available for issuance pursuant to the Stock Plan.

                  (d) The Company has reserved 7,940,369 shares of Common Stock
for issuance upon the exercise of to issued and outstanding warrants.

                   (e) Except for (i) conversion privileges of the Preferred
Stock, (ii) the outstanding options issuable pursuant to the Stock Plan, (iii)
the outstanding warrants referenced in item (d) above, and (iv) rights set forth
in the Rights Agreement, there are no outstanding options, warrants, rights
(including conversion or preemptive rights and rights of first refusal or
similar rights) or agreements, orally or in writing, for the purchase or
acquisition from the Company of any shares of its capital stock.

            2.3 SUBSIDIARIES. The Company does not currently own or control,
directly or indirectly, any interest in any other corporation, association, or
other business entity. The Company is not a participant in any joint venture,
partnership or similar arrangement.

            2.4 AUTHORIZATION. All corporate action on the part of the Company,
its officers, directors and stockholders necessary for the authorization,
execution and delivery of this Agreement, the performance of all obligations of
the Company hereunder and the authorization, issuance and delivery of the
Securities has been taken or will be taken prior to the Closing, and the
Agreement, when executed and delivered by the Company, shall constitute valid
and legally binding obligations of the Company, enforceable against the Company
in accordance with its terms except (i) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, and other laws of
general application affecting enforcement of creditors' rights generally, (ii)
as limited by laws relating to the availability of specific performance,
injunctive relief, or other equitable remedies.

            2.5 VALID ISSUANCE OF SECURITIES. The Securities being issued to the
Purchasers hereunder, when issued, sold and delivered in accordance with the
terms hereof for the consideration expressed herein, will be duly and validly
issued, fully paid and nonassessable and free of restrictions on transfer other
than restrictions on transfer under this Agreement, applicable state and federal
securities laws and liens or encumbrances created by or imposed by a Purchaser.
Based in part upon the representations of the Purchasers in this Agreement and
subject to the provisions of Section 2.6 below, the Securities will be issued in
compliance with all applicable federal and state securities laws. The Company
covenants that neither it nor any authorized agent acting on its behalf will
take any action hereafter that would cause the failure of such compliance.

            2.6 GOVERNMENTAL CONSENTS. No consent, approval, order or
authorization of, or registration, qualification, designation, declaration or
filing with, any federal, state or local governmental authority on the part of
the Company is required in connection with the consummation of the transactions
contemplated by

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this Agreement, except for filings pursuant to applicable state securities laws
and Regulation D of the Securities Act of 1933, as amended (the "Securities
Act").

            2.7 LITIGATION. There is no action, suit, proceeding or
investigation pending or, to the Company's knowledge, currently threatened
against the Company that questions the validity of the Agreement or the right of
the Company to enter into it, or to consummate the transactions contemplated
hereby, or that might result, either individually or in the aggregate, in any
material adverse change in the assets, condition or affairs of the Company,
financially or otherwise, or any change in the current equity ownership of the
Company, nor is the Company aware that there is any basis for the foregoing. The
Company is not a party or subject to the provisions of any order, writ,
injunction, judgment or decree of any court or government agency or
instrumentality. There is no action, suit, proceeding or investigation by the
Company currently pending or which the Company intends to initiate. The
foregoing includes, without limitation, actions, suits, proceedings or
investigations pending or threatened in writing (or any basis therefore known to
the Company) involving the prior employment of any of the Company's employees,
their use in connection with the Company's business, or any information or
techniques allegedly proprietary to any of their former employers, or their
obligations under any agreements with prior employers.

            2.8 INTELLECTUAL PROPERTY. To its knowledge, the Company owns or
possesses sufficient legal rights to all patents, trademarks, service marks,
trade names, copyrights, trade secrets, licenses, information and proprietary
rights and processes necessary for its business without any conflict with, or
infringement of, the rights of others. There are no outstanding options,
licenses, or agreements of any kind relating to the foregoing, nor is the
Company bound by or a party to any options, licenses or agreements of any kind
with respect to the patents, trademarks, service marks, trade names, copyrights,
trade secrets, licenses, information, proprietary rights and processes of any
other person or entity. The Company has not received any communications alleging
that the Company has violated or, by conducting its business, would violate any
of the patents, trademarks, service marks, trade names, copyrights, trade
secrets or other proprietary rights or processes of any other person or entity.
The Company is not aware that any of its employees is obligated under any
contract (including licenses, covenants or commitments of any nature) or other
agreement, or subject to any judgment, decree or order of any court or
administrative agency, that would interfere with the use of such employee's best
efforts to promote the interest of the Company or that would conflict with the
Company's business. Neither the execution or delivery of this Agreement, nor the
carrying on of the Company's business by the employees of the Company, nor the
conduct of the Company's business as proposed, will, to the Company's knowledge,
conflict with or result in a breach of the terms, conditions, or provisions of,
or constitute a default under, any contract, covenant or instrument under which
any such employee is now obligated. The Company does not believe it is or will
be necessary to use any inventions of any of its employees (or persons it
currently intends to hire) made prior to their employment by the Company.

            2.9   COMPLIANCE WITH OTHER INSTRUMENTS.

                  (a) The Company is not in violation or default of any
provisions of its Certificate or Bylaws or of any instrument, judgment, order,
writ, decree or contract to which it is a party or by which it is bound or, to
its knowledge, of any provision of federal or state statute, rule or regulation
applicable to the Company. The execution, delivery and performance of the
Agreements and the consummation of the transactions contemplated hereby or
thereby will not result in any such violation or be in conflict with or
constitute, with or without the passage of time and giving of notice, either a
default under any such provision, instrument, judgment, order, writ, decree or
contract or an event which results in the creation of any lien, charge or
encumbrance upon any assets of the Company.

                  (b) To its knowledge, the Company has avoided every condition,
and has not performed any act, the occurrence of which would result in the
Company's loss of any right granted under any license, distribution agreement or
other agreement.

            2.10  AGREEMENTS; ACTION.

                  (a) Other than (i) standard employee benefits generally made
available to all employees, (ii) standard director and officer indemnification
agreements approved by the Board of Directors, and (iii) the purchase of shares
of the Company's capital stock and the issuance of options to purchase shares of
the

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Company's common stock, in each instance, approved by the Board of Directors,
there are no agreements, understandings or proposed transactions between the
Company and any of its officers, directors, affiliates, or any affiliate
thereof.

                  (b) Except for agreements explicitly contemplated by the
Agreements, there are no agreements, understandings, instruments, contracts or
proposed transactions to which the Company or any of its subsidiaries is a party
or by which it is bound that involve (i) obligations (contingent or otherwise)
of, or payments to, the Company or any of its subsidiaries in excess of,
$25,000, (ii) the license of any patent, copyright, trade secret or other
proprietary right to or from the Company or any of its subsidiaries, or (iii)
the grant of rights to manufacture, produce, assemble, license, market, or sell
its products to any other person or affect the Company's exclusive right to
develop, manufacture, assemble, distribute, market or sell its products.

                  (c) Neither the Company nor any of its subsidiaries has (i)
declared or paid any dividends, or authorized or made any distribution upon or
with respect to any class or series of its capital stock, (ii) incurred any
indebtedness for money borrowed or incurred any other liabilities individually
in excess of $25,000 or in excess of $100,000 in the aggregate, (iii) made any
loans or advances to any person, other than ordinary advances for travel
expenses, or (iv) sold, exchanged or otherwise disposed of any of its assets or
rights, other than the sale of its inventory in the ordinary course of business.

                  (d) The Company has not engaged in the past three months in
any discussion (i) with any representative of any corporation or corporations
regarding the merger of the Company with or into any such corporation or
corporations in which more than 50% of the voting power of the Company would be
disposed of, (ii) with any representative of any corporation, partnership,
association or other business entity or any individual regarding the sale,
conveyance or disposition of all or substantially all of the assets of the
Company or a transaction or series of related transactions in which more than
50% of the voting power of the Company would be disposed of, or (iii) regarding
any other form of liquidation, dissolution or winding up of the Company.

                  (e) For the purposes of subsections (b) and (c) above, all
indebtedness, liabilities, agreements, understandings, instruments, contracts
and proposed transactions involving the same person or entity (including persons
or entities the Company has reason to believe are affiliated with that person or
entity) shall be aggregated for the purposes of meeting the individual minimum
dollar amounts of each such subsection.

            2.11 NO CONFLICT OF INTEREST. The Company is not indebted, directly
or indirectly, to any of its officers or directors or to their respective
spouses or children, in any amount whatsoever other than in connection with
expenses or advances of expenses incurred in the ordinary course of business or
relocation expenses of employees. None of the Company's officers or directors,
or any members of their immediate families, are, directly or indirectly,
indebted to the Company (other than in connection with purchases of the
Company's stock) or, to the Company's knowledge, have any direct or indirect
ownership interest in any firm or corporation with which the Company is
affiliated or with which the Company has a business relationship, or any firm or
corporation which competes with the Company except that officers, directors
and/or stockholders of the Company may own stock in (but not exceeding two
percent of the outstanding capital stock of) any publicly traded company that
may compete with the Company. To the Company's knowledge, none of the Company's
officers or directors or any members of their immediate families are, directly
or indirectly, interested in any material contract with the Company. The Company
is not a guarantor or indemnitor of any indebtedness of any other person, firm
or corporation.

            2.12 RIGHTS OF REGISTRATION AND VOTING RIGHTS. Holders of 3,747,000
shares of our common stock have unlimited piggyback registration rights, subject
to prorata cutback at underwriter's discretion. Registration expenses (exclusive
of underwriting discounts, selling commissions and stock transfer taxes) will be
borne by us. The registration rights will terminate at such time as a holder may
sell his shares within a three-month period pursuant to Rule 144. To the
Company's knowledge, no stockholder of the Company has entered into any
agreements with respect to the voting of capital shares of the Company.

            2.13 TITLE TO PROPERTY AND ASSETS. The Company owns its property and
assets free and clear of all mortgages, liens, loans and encumbrances, except
such encumbrances and liens which arise in the ordinary course of business and
do not materially impair the Company's ownership or use of such property or
assets. With

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respect to the property and assets it leases, the Company is in compliance with
such leases and, to its knowledge, holds a valid leasehold interest free of any
liens, claims or encumbrances.

            2.14 FINANCIAL STATEMENTS. The Company has no material liabilities,
contingent or otherwise, other than (i) liabilities incurred in the ordinary
course of business that are not material, individually or in the aggregate, and
(ii) obligations under contracts and commitments incurred in the ordinary course
of business which would not be required under generally accepted accounting
principles to be reflected in the financial statements prepared in accordance
with generally accepted accounting principles.

            2.15 TAX RETURNS AND PAYMENTS. The Company has filed all tax returns
and reports as required by law. These returns and reports are true and correct
in all material respects. The Company has paid all taxes and other assessments
due.

            2.16 INSURANCE. The Company has in full force and effect fire and
casualty insurance policies, with extended coverage, sufficient in amount
(subject to reasonable deductibles) to allow it to replace any of its properties
that might be damaged or destroyed.

            2.17 LABOR AGREEMENTS AND ACTIONS. The Company is not bound by or
subject to (and none of its assets or properties is bound by or subject to) any
written or oral, express or implied, contract, commitment or arrangement with
any labor union, and no labor union has requested or, to the knowledge of the
Company, has sought to represent any of the employees, representatives or agents
of the Company. There is no strike or other labor dispute involving the Company
pending, or to the knowledge of the Company threatened, which could have a
material adverse effect on the assets, properties, financial condition,
operating results, or business of the Company, nor is the Company aware of any
labor organization activity involving its employees. The employment of each
officer and employee of the Company is terminable at the will of the Company.

            2.18 CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT AGREEMENTS.
Each employee, consultant and officer of the Company has executed an agreement
with the Company regarding confidentiality and proprietary information. The
Company is not aware that any of its employees or consultants is in violation
thereof, and the Company will use its best efforts to prevent any such
violation.

            2.19 PERMITS. The Company has all franchises, permits, licenses and
any similar authority necessary for the conduct of its business, the lack of
which could materially and adversely affect the business, properties, prospects,
or financial condition of the Company. The Company is not in default in any
material respect under any of such franchises, permits, licenses or other
similar authority.

      3. REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS. Each Purchaser hereby
represents and warrants to the Company that:

            3.1 AUTHORIZATION. Such Purchaser has full power and authority to
enter into this Agreement. The Agreement, when executed and delivered by the
Purchaser, will constitute valid and legally binding obligations of the
Purchaser, enforceable in accordance with its terms, except as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance, and any other laws of general application affecting enforcement of
creditors' rights generally, and as limited by laws relating to the availability
of a specific performance, injunctive relief, or other equitable remedies.

            3.2 PURCHASE ENTIRELY FOR OWN ACCOUNT. This Agreement is made with
the Purchaser in reliance upon the Purchaser's representation to the Company,
which by the Purchaser's execution of this Agreement, the Purchaser hereby
confirms, that the Securities to be acquired by the Purchaser will be acquired
for investment for the Purchaser's own account, not as a nominee or agent, and
not with a view to the resale or distribution of any part thereof, and that the
Purchaser has no present intention of selling, granting any participation in, or
otherwise distributing the same. By executing this Agreement, the Purchaser
further represents that the Purchaser does not presently have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant
participation to such person or to any third person, with respect to any of the
Securities. The Purchaser has not been formed for the specific purpose of
acquiring the Securities.

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            3.3 DISCLOSURE OF INFORMATION. The Purchaser has had an opportunity
to discuss the Company's business, management, financial affairs and the terms
and conditions of the offering of the Securities with the Company's management
and has had an opportunity to review the Company's facilities. The Purchaser
understands that such discussions, as well as any other written information
delivered by the Company to the Purchaser, were intended to describe the aspects
of the Company's business which it believes to be material. THE PURCHASER
ACKNOWLEDGES AND AGREES THAT, AT ANYTIME FOLLOWING THE CLOSING, THE COMPANY MAY
SELL AND ISSUE EQUITY SECURITIES THAT ARE DILUTIVE TO THE SECURITIES AND ARE ON
ECONOMIC TERMS SUBSTANTIALLY MORE FAVORABLE TO THE PURCHASERS THEREOF THAN THE
TERMS OF THIS AGREEMENT. The foregoing, however, does not limit or modify the
representations or warranties of the Company in Section 2 of this Agreement or
the right of Purchaser to rely thereon.

            3.4 RESTRICTED SECURITIES. The Purchaser understands that the
Securities have not been, and will not be, registered under the Securities Act,
by reason of a specific exemption from the registration provisions of the
Securities Act which depends upon, among other things, the bona fide nature of
the investment intent and the accuracy of the Purchaser's representations as
expressed herein. The Purchaser understands that the Securities are "restricted
securities" under applicable U.S. federal and state securities laws and that,
pursuant to these laws, the Purchaser must hold the Securities indefinitely
unless they are registered with the Securities and Exchange Commission and
qualified by state authorities, or an exemption from such registration and
qualification requirements is available. The Purchaser acknowledges that the
Company has no obligation to register or qualify the Securities for resale. The
Purchaser further acknowledges that if an exemption from registration or
qualification is available, it may be conditioned on various requirements
including, but not limited to, the time and manner of sale, the holding period
for the Securities, and on requirements relating to the Company which are
outside of the Purchaser's control, and which the Company is under no obligation
and may not be able to satisfy.

            3.5 LEGENDS. The Purchaser understands that the Securities, and any
securities issued in respect thereof or exchange therefor, may bear one or all
of the following legends:

                  (a) "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A
FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER
THE SECURITIES ACT OF 1933."

                  (b) Any legend required by the Blue Sky laws of any state to
the extent such laws are applicable to the shares represented by the certificate
so legended.

            3.6 ACCREDITED INVESTOR. The Purchaser is an accredited investor as
defined in Rule 501(a) of Regulation D promulgated under the Securities Act.

            3.7 FOREIGN INVESTORS. If the Purchaser is not a United States
person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986,
as amended), such Purchaser hereby represents that it has satisfied itself as to
the full observance of the laws of its jurisdiction in connection with any
invitation to subscribe for the Securities or any use of this Agreement,
including (i) the legal requirements within its jurisdiction for the purchase of
the Securities, (ii) any foreign exchange restrictions applicable to such
purchase, (iii) any governmental or other consents that may need to be obtained,
and (iv) the income tax and other tax consequences, if any, that may be relevant
to the purchase, holding, redemption, sale, or transfer of the Securities. Such
Purchaser's subscription and payment for and continued beneficial ownership of
the Securities, will not violate any applicable securities or other laws of the
Purchaser's jurisdiction.

            3.8 NO GENERAL SOLICITATION. Neither the Purchaser, nor any of its
officers, employees, agents, directors, stockholders or partners has engaged the
services of a broker, investment banker or finder to contact any potential
investor nor has the Purchaser or any of the Purchaser's officers, employees,
agents, directors, stockholders or partners, agreed to pay any commission, fee
or other remuneration to any third party to solicit or

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contact any potential investor. Neither the Purchaser, nor any of its officers,
directors, employees, agents, stockholders or partners has (a) engaged in any
general solicitation, or (b) published any advertisement in connection with the
offer and sale of the Securities.

      4. CONDITIONS OF THE PURCHASERS' OBLIGATIONS AT CLOSING. The obligations
of each Purchaser to the Company under this Agreement are subject to the
fulfillment, on or before the Closing, of each of the following conditions,
unless otherwise waived:

            4.1 REPRESENTATIONS AND WARRANTIES. The representations and
warranties of the Company contained in Section 2 shall be true and correct in
all material respects on and as of the Closing with the same effect as though
such representations and warranties had been made on and as of the date of the
Initial Closing.

            4.2 PERFORMANCE. The Company shall have performed and complied with
all covenants, agreements, obligations and conditions contained in this
Agreement that are required to be performed or complied with by it on or before
the Initial Closing.

            4.3 QUALIFICATIONS. All authorizations, approvals or permits, if
any, of any governmental authority or regulatory body of the United States or of
any state that are required in connection with the lawful issuance and sale of
the Stock pursuant to this Agreement shall be obtained and effective as of the
Closing.

            4.4 PROCEEDINGS AND DOCUMENTS. All corporate and other proceedings
in connection with the transactions contemplated at the Closing and all
documents incident thereto shall be reasonably satisfactory in form and
substance to Purchaser, and Purchaser (or its counsel) shall have received all
such counterpart original and certified or other copies of such documents as
reasonably requested.

      5. CONDITIONS OF THE COMPANY'S OBLIGATIONS AT CLOSING. The obligations of
the Company to each Purchaser under this Agreement are subject to the
fulfillment, on or before the Closing, of each of the following conditions,
unless otherwise waived:

            5.1 REPRESENTATIONS AND WARRANTIES. The representations and
warranties of each Purchaser contained in Section 3 shall be true and correct in
all material respects on and as of the Closing with the same effect as though
such representations and warranties had been made on and as of the Closing.

            5.2 PERFORMANCE. All covenants, agreements and conditions contained
in this Agreement to be performed by the Purchasers on or prior to the Closing
shall have been performed or complied with in all material respects.

            5.3 QUALIFICATIONS. All authorizations, approvals or permits, if
any, of any governmental authority or regulatory body of the United States or of
any state that are required in connection with the lawful issuance and sale of
the Stock pursuant to this Agreement shall be obtained and effective as of the
Closing.

            5.4 BOARD APPROVAL. The Company's Board of Directors shall have
authorized the sale and issuance of the Securities.

      6. MISCELLANEOUS.

            6.1 SURVIVAL OF WARRANTIES. Unless otherwise set forth in this
Agreement, the warranties, representations and covenants of the Company and the
Purchasers contained in or made pursuant to this Agreement shall survive the
execution and delivery of this Agreement and the Closing.

            6.2 TRANSFER; SUCCESSORS AND ASSIGNS. The terms and conditions of
this Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or
their respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

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            6.3 GOVERNING LAW/VENUE. This Agreement and all acts and
transactions pursuant hereto and the rights and obligations of the parties
hereto shall be governed, construed and interpreted in accordance with the laws
of the State of Washington. Each party agrees that it will not bring any action
relating to this Agreement or any acts or transactions contemplated hereby in
any court other than a federal or state court sitting in King County, State of
Washington. Each party further agrees that it will submit to the jurisdiction of
such court and that it will not seed to change the venue of such action.

            6.4 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

            6.5 TITLES AND SUBTITLES. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

            6.6 NOTICES. Any notice required or permitted by this Agreement
shall be in writing and shall be deemed sufficient upon delivery, when delivered
personally or by overnight courier or sent by fax (upon customary confirmation
of receipt), or 48 hours after being deposited in the U.S. mail, as certified or
registered mail, with postage prepaid, addressed to the party to be notified at
such party's address as set forth on the signature page or Exhibit A hereto, or
as subsequently modified by written notice.

            6.7 FINDER'S FEE. Each party represents that it neither is nor will
be obligated for any finder's fee or commission in connection with this
transaction. Each Purchaser agrees to indemnify and to hold harmless the Company
from any liability for any commission or compensation in the nature of a
finder's fee (and the costs and expenses of defending against such liability or
asserted liability) for which each Purchaser or any of its officers, employees,
or representatives is responsible. The Company agrees to indemnify and hold
harmless each Purchaser from any liability for any commission or compensation in
the nature of a finder's fee (and the costs and expenses of defending against
such liability or asserted liability) for which the Company or any of its
officers, employees or representatives is responsible.

            6.8 ATTORNEY'S FEES. If any action at law or in equity (including
arbitration) is necessary to enforce or interpret the terms of any of the
Agreements, the prevailing party shall be entitled to reasonable attorney's
fees, costs and necessary disbursements in addition to any other relief to which
such party may be entitled.

            6.9 AMENDMENTS AND WAIVERS. Any term of this Agreement may be
amended or waived only with the written consent of the Company and the holders
of at least a majority of the Common Stock issued or issuable upon conversion of
the Stock. Any amendment or waiver effected in accordance with this Section 6.9
shall be binding upon the Purchasers and each transferee of the Securities, each
future holder of all such Securities, and the Company.

            6.10 SEVERABILITY. If one or more provisions of this Agreement are
held to be unenforceable under applicable law, the parties agree to renegotiate
such provision in good faith. In the event that the parties cannot reach a
mutually agreeable and enforceable replacement for such provision, then (a) such
provision shall be excluded from this Agreement, (b) the balance of the
Agreement shall be interpreted as if such provision were so excluded and (c) the
balance of the Agreement shall be enforceable in accordance with its terms.

            6.11 DELAYS OR OMISSIONS. No delay or omission to exercise any
right, power or remedy accruing to any party under this Agreement, upon any
breach or default of any other party under this Agreement, shall impair any such
right, power or remedy of such non-breaching or non-defaulting party nor shall
it be construed to be a waiver of any such breach or default, or an acquiescence
therein, or of or in any similar breach or default thereafter occurring; nor
shall any waiver of any single breach or default be deemed a waiver of any other
breach or default theretofore or thereafter occurring. Any waiver, permit,
consent or approval of any kind or character on the part of any party of any
breach or default under this Agreement, or any waiver on the part of any party
of any provisions or conditions of this Agreement, must be in writing and shall
be effective only to the extent specifically set forth in such writing. All
remedies, either under this Agreement or by law or otherwise afforded to any
party, shall be cumulative and not alternative.

            6.12 ENTIRE AGREEMENT. This Agreement, and the documents referred to
herein constitute the entire agreement between the parties hereto pertaining to
the subject matter hereof, and any and all other written or oral agreements
relating to the subject matter hereof existing between the parties hereto are
expressly canceled.

                                       10
<PAGE>
      6.13 EXCULPATION AMONG PURCHASERS. Each Purchaser acknowledges that it is
not relying upon any person, firm or corporation, other than the Company and its
officers and directors, in making its investment or decision to invest in the
Company. Each Purchaser agrees that no Purchaser nor the respective controlling
persons, officers, directors, partners, agents, or employees of any Purchaser
shall be liable to any other Purchaser for any action heretofore or hereafter
taken or omitted to be taken by any of them in connection with the purchase of
the Securities.

      The parties have executed this Common Stock and Warrant Purchase Agreement
as of the date first written above.

                               COMPANY:

                               HELIX BIOMEDIX, INC.

                               By:
                                  ---------------------------------------------
                                  R. Stephen Beatty, President and CEO

                                       11
<PAGE>
Purchaser's Signature Page

---------------------------------------------
Name (Printed)

---------------------------------------------
Signature                           Date

---------------------------------------------
Name if jointly held (Printed)

----------------------------------------------
Signature                           Date

----------------------------------------------
Title if Applicable

----------------------------------------------
Social Security Number or ID

----------------------------------------------
Address

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

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

----------------------------------------------
Email Address

----------------------------------------------
Telephone

----------------------------------------------
Facsimile

Signature Page to Stock and Warrant Purchase Agreement

                                       12
<PAGE>
EXHIBIT A

SCHEDULE OF PURCHASERS

<TABLE>
<CAPTION>
     PURCHASER            SHARES OF COMMON STOCK    SHARES OF WARRANT STOCK       $ INVESTED
     ---------            ----------------------    -----------------------       ----------
<S>                       <C>                       <C>                           <C>
Allen Cooperman                           17,000                          0          $25,500
Frank Cymerman                            10,000                          0          $10,000
Stephen C. Garner                         10,000                          0          $15,000
George Jacobs                             66,667                          0         $100,000
William Jacobson                          26,667                          0          $40,000
Kevin Keller                              17,000                          0          $17,000
James W. Mahaffey                         34,000                          0          $51,000
RBFSC, Inc.                              750,000                          0       $1,125,000
Pierce, Gregory                           28,000                          0          $42,000
Schoenfeld, Mitchell                      20,000                          0          $30,000
ABC Investment Group                     500,000                          0         $750,000
Slaven, Joel                              10,000                          0          $15,000
Slaven, Morton                            10,000                          0          $15,000
Turner, Barry                             10,000                          0          $15,000
Goldmark, George                          10,000                          0          $15,000
Lawaczeck, Elmar                          16,667                          0          $25,000
Wills, Harrison                           12,500                          0          $18,750
Alintoff, Larry                           10,000                          0          $15,000
Kamin, Steven                             10,000                          0          $15,000
Steele, Ronna M.                          13,333                          0          $20,000
McAdam, William                           25,000                          0          $37,500
Osofsky, Alan                             25,000                          0          $37,500
Jones, Lawrence Blake                     33,333                          0          $50,000
</TABLE>

                                       13
<PAGE>
EXHIBIT B - FORM OF WARRANT

THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY
STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION STATEMENT
IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR UNLESS (i) SOLD PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS AND (ii) AT THE OPTION OF
THE COMPANY, AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT
SUCH REGISTRATION IS NOT REQUIRED HAS BEEN DELIVERED TO THE COMPANY.

<TABLE>
<S>                                      <C>
--------------------------------------------------------------------------------
HOLDER(S):                               WARRANT NUMBER:
--------------------------------------------------------------------------------
                                         NO. OF SHARES FOR WHICH THIS WARRANT
                                         IS INITIALLY EXERCISABLE:
--------------------------------------------------------------------------------
ISSUE DATE:                              TERMINATION DATE:
--------------------------------------------------------------------------------
</TABLE>

                                 WARRANT FOR THE
                       PURCHASE OF SHARES OF COMMON STOCK
                                       OF
                              HELIX BIOMEDIX, INC.

      THIS CERTIFIES THAT, for valuable consideration, that the undersigned,
together with (his/her/its) successors and permitted assigns (the "Holder") is
entitled to purchase, subject to the terms set forth below, up to
_________________shares of duly authorized, validly issued, fully paid and
nonassessable shares of common stock, $0.001 par value per share (the "Common
Stock") of Helix BioMedix, Inc., a Delaware corporation (the "Company").

      1. Exercise of Warrant. The terms and conditions upon which this Warrant
may be exercised, and the Common Stock covered hereby (the "Warrant Stock") may
be purchased, are as follows:

         (a) Term. Subject to the terms hereof, the purchase right represented
by this Warrant may be exercised in whole or in part, but not as to a fractional
share of Warrant Stock, at any time and from time to time until the close of
business on the fifth anniversary hereof.

         (b) Number of Shares. The number of shares of Common Stock for which
this Warrant is initially exercisable is the amount set forth above the Holder's
signature and on page one of this Warrant, which number is subject to adjustment
pursuant to Section 2 of this Warrant.

         (c) Purchase Price. The per share purchase price for the shares of
Common Stock to be issued upon exercise of this Warrant shall be equal to two
dollars ($2.00) per share (the "Warrant Price").

         (d) Method of Exercise. The exercise of the purchase rights evidenced
by this Warrant shall be effected by (a) the surrender of the Warrant, together
with a duly executed copy of the form of a subscription attached hereto, to the
Company at its principal offices at 22122 20th Avenue SE, Suite 148, Bothell, WA
98021 (or such other office or agency of the Company as it may designate by
notice in writing to the Holder at the address of the Holder appearing on the
books of the Company) and (b) the delivery of the purchase price in an amount
equal to the number of shares for which the purchase rights hereunder are being
exercised multiplied by the Warrant Price, which amount may be paid by cashier's
check payable to the Company's order or by wire transfer to the Company's
account. Each exercise of this Warrant shall be deemed to have been effected
immediately prior to the close of business on the day on which this Warrant
shall have been surrendered to the Company together with the purchase price as
provided herein or at such later date as may be specified in the executed form
of subscription, and at such

                               Exhibit B-Warrant
                                       1
<PAGE>
time the person or persons in whose name or names any certificate or
certificates for shares of Common Stock shall be issuable upon such exercise as
provided herein shall be deemed to have become the holder or holders of record
thereof.

         (e) Exercise by Exchange. In addition to and without limiting the
rights of the Holder under the terms hereof, at the Holder's option, and if
approved by the Company, this Warrant may be exercised during the term specified
under Section 1(a) by being exchanged in whole or in part prior to its
expiration for a number of shares of Common Stock having an aggregate fair
market value on the date of such exercise equal to the difference between (x)
the fair market value of the number of shares of Common Stock subject to this
Warrant designated by the Holder hereof on the date of the exercise and (y) the
aggregate Warrant Price for such shares in effect at such times. The following
formula illustrates how many shares would then be issued upon exercise pursuant
to this Section 1(e):

            Let:  FMV   =     Fair market value per share of Common Stock at
                              date of exercise.

                  WP    =     Warrant Price at date of exercise.

                  N     =     Number of shares desired to be exercised.

                  X     =     Number of shares issued upon exercise.

            Therefore:  X     =     (FMV)(N)-(WP)(N)
                                    ----------------
                                          FMV

            Upon any such exercise, the number of shares of Common Stock
purchasable upon exercise of this Warrant shall be reduced by such designated
number of shares of Common Stock and, if a balance of purchasable shares of
Common Stock remains after such exercise, the Company shall execute and deliver
to the Holder hereof a new warrant for such balance of shares of Common Stock.

            No payment to the Company of any cash or other consideration shall
be required from the Holder of this Warrant in connection with any exercise of
this Warrant by exchange pursuant to this Section 1(e). Such exchange shall be
effective upon the date of receipt by the Company of the original Warrant
surrendered for cancellation and a written request from the Holder hereof that
the exchange pursuant to this section be made, or at such later date as may be
specified in such request.

            For the purposes of this Warrant, the "fair market value" of any
number of shares of Common Stock shall mean:

                  (i) as long as the Common Stock is traded on the
Over-The-Counter Bulletin Board or is traded on the American Stock Exchange (or
equivalent recognized source of quotations), an amount equal to the average of
the high and low reported trading prices of one share of such securities for the
three (3) trading days prior to the surrender of this Warrant for exchange in
accordance with the terms hereof.

                  (ii) in all other cases, the fair value as determined in good
faith by the Board of Directors of the Company and reasonably agreed to by the
Holder.

            (f) Issuance of Shares. As soon as reasonably practicable after each
exercise of this Warrant, in whole or in part, the Company at its expense will
cause to be issued in the name of and delivered to the Holder hereof or as such
Holder (upon payment by such Holder of any applicable transfer taxes) may
direct,

                               Exhibit B-Warrant
                                        2
<PAGE>
                  (i) a certificate or certificates for the number of duly
authorized validly issued, fully paid and nonassessable shares of Common Stock
to which such Holder shall be entitled upon such exercise, and

                  (ii) in case such exercise is in part only, a new warrant or
warrants of like tenor, calling in the aggregate on the face or faces thereof
for the number of shares of Common Stock (without giving effect to any
adjustment thereof) to the number of such shares called for on the face of this
Warrant minus the number of such shares designated by the Holder upon such
exercise as provided herein.

      2.    Certain Adjustments.

            (a) Mergers, Consolidations or Sale of Assets. If at any time after
the date hereof while this Warrant remains outstanding and unexpired there shall
be a capital reorganization (other than a combination or subdivision of Warrant
Stock otherwise provided for herein), or a merger or consolidation of the
Company with or into another corporation, or the sale of the Company's
properties and assets as, or substantially as, an entirety to any other person,
then, as a part of such reorganization, merger, consolidation or sale, lawful
provision shall be made so that the Holder shall thereafter be entitled to
receive upon exercise of this Warrant, during the period specified in this
Warrant and upon payment of the purchase price, the number of shares of stock or
other securities, cash or property of the Company or the successor corporation
resulting from such reorganization, merger, consolidation or sale, to which a
Holder of the Common Stock deliverable upon exercise of this Warrant would have
been entitled under the provisions of the agreement in such reorganization,
merger, consolidation or sale if this Warrant had been exercised immediately
before that reorganization, merger, consolidation or sale. In any such case,
appropriate adjustment (as determined reasonably and in good faith by the
Company's Board of Directors) shall be made in the application of the provisions
of this Warrant with respect to the rights and interests of the Holder after the
reorganization, merger, consolidation or sale to the end that the provisions of
this Warrant (including adjustment of the Warrant Price then in effect and the
number of shares of Warrant Stock) shall be applicable after that event, as near
as reasonably may be, in relation to any shares or other property deliverable
after that event upon exercise of this Warrant.

            (b) Splits and Subdivisions; Dividends. In the event the Company
should at any time or from time to time while this Warrant remains outstanding
and unexpired effect or fix a record date for the effectuation of a split or
subdivision of the outstanding shares of its Common Stock or the determination
of the holders of Common Stock entitled to receive a dividend or other
distribution payable in additional shares of Common Stock or other securities or
warrants, options or other rights convertible into, or entitling the holder
thereof to receive directly or indirectly, additional shares of Common Stock
(hereinafter referred to as the "Common Stock Equivalents") without payment of
any consideration by such holder for the additional shares of Common Stock or
Common Stock Equivalents (including the additional shares of Common Stock
issuable upon conversion or exercise thereof), then, as of such record date (or
the date of distribution, split or subdivision if no record date is fixed), the
per share Warrant Price shall be appropriately increased in proportion to such
increase (or potential increase) of outstanding shares.

            (c) Combination of Shares. If the number of shares of Common Stock
outstanding at any time after the date hereof is decreased by a combination of
the outstanding shares of Common Stock, the per share purchase price shall be
appropriately increased and the number of shares of Warrant Stock shall be
appropriately decreased in proportion to such decrease in outstanding shares.

             (d) Certificate as to Adjustments. In the case of each adjustment
or readjustment of the Warrant Price pursuant to this Section 2, the Company at
its expense will promptly compute such adjustment or readjustment in accordance
with the terms hereof and cause a certificate, signed by the Company's principal
financial officer, setting forth such adjustment or readjustment and showing in
detail the facts upon which such adjustment or readjustment is based to be
delivered to the Holder of this Warrant. The Company will furnish or cause to be
furnished to such Holder a certificate setting forth:

                  (i)   Such adjustments and readjustments;

                  (ii)  The purchase price at the time in effect and how it was
calculated; and

                               Exhibit B-Warrant
                                        3
<PAGE>
                  (iii) The number of shares of Warrant Stock and the amount, if
any, of other property at the time receivable upon the exercise of the Warrant.

         (e) Notices of Record Date, etc. In the event of:

                  (i) Any taking by the Company of a record of the holders of
any class of securities of the Company for the purpose of determining the
holders thereof who are entitled to receive any dividend (other than a cash
dividend payable at the same rate as that of the last such cash dividend
theretofore paid) or other distribution, or any right to subscribe for, purchase
or otherwise acquire any shares of stock of any class or any other securities or
property, or to receive any other right; or

                  (ii) Any capital reorganization of the Company, any
reclassification or recapitalization of the capital stock of the Company or any
transfer of all or substantially all of assets of the Company to any other
person or any consolidation or merger involving the Company; or

                  (iii) Any voluntary or involuntary dissolution, liquidation or
winding-up of the Company; the Company will mail to the Holder of this Warrant
at least ten (10) business days prior to the earliest date specified therein, a
notice specifying:

                        (1)   The date on which any such record is to be taken
for the purpose of such dividend, distribution or right, and the amount and
character of such dividend, distribution or right; and

                        (2)   The date on which any such reorganization,
reclassification, transfer, consolidation, merger, dissolution, liquidation or
winding-up is expected to become effective and the record date for determining
stockholders entitled to vote thereon and the time.

      3. Fractional Shares. No fractional shares shall be issued in connection
with any exercise of this Warrant. In lieu of the issuance of such fractional
share, the Company shall make a cash payment equal to the then fair market value
of such fractional share as determined in good faith by the Company's Board of
Directors.

      4. No Privilege of Stock Ownership. Prior to the exercise of this Warrant,
the Holder shall not be entitled, by virtue of holding this Warrant, to any
rights of a shareholder of the Company, including (without limitation) the right
to vote, receive dividends or other distributions, exercise preemptive rights or
be notified of shareholder meetings, and such Holder shall not be entitled to
any notice or other communication concerning the business or affairs of the
Company. Nothing in this Section 4, however, shall limit the right of the Holder
to be provided the notices described in Section 2 hereof, or to participate in
distributions described in Section 2 hereof if the Holder exercises this
Warrant.

      5. Limitation of Liability. Except as otherwise provided herein, in the
absence of affirmative action by the Holder hereof to purchase the Warrant
Stock, no mere enumeration herein of the rights or privileges of the Holder
hereof shall give rise to any obligation of such Holder to purchase any
securities or any liability of such Holder for the purchase price or as a
shareholder of the Company, whether such obligation or liability is asserted by
the Company or by creditors of the Company.

      6. Representations and Warranties of the Holder. The Holder represents and
warrants to the Company as follows:

         (a) Purchase Entirely for Own Account. This Warrant is made with the
Holder in reliance upon such Holder's representation to the Company, which by
such Holder's execution of this Warrant such Holder hereby confirms, that the
Warrant and Warrant Stock are being acquired for investment for such Holder's
own account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof in violation of the federal or state securities
laws.

         (b) Investment Experience. The Holder represents that it can bear the
economic risk of its investment and has such knowledge and experience in
financial or business matters that it is capable of evaluating the merits and
risks of the investment in the Warrant and the Warrant Stock. If an entity, the
Holder also represents it has not been organized solely for the purpose of
acquiring the Warrant or the Warrant Stock.

                               Exhibit B-Warrant
                                        4
<PAGE>
         (c) Restricted Securities. The Holder understands that the Warrant
being issued hereunder and the Warrant Stock to be purchased hereunder are
characterized as "restricted securities" under the federal securities laws
inasmuch as they are being acquired from the Company in a transaction not
involving a public offering and that under such laws and applicable regulations
such securities may be resold without registration under the Securities Act of
1933, as amended (the "Securities Act"), only in certain limited circumstances.
In this connection, the Holder represents that it is familiar with Securities
and Exchange Commission Rule 144, as presently in effect, and understands the
resale limitations imposed thereby and by the Securities Act.

         (d) Legends. It is understood that the certificates evidencing the
Warrant Stock may bear a legend substantially in the following form:

            "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
            OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAWS
            (COLLECTIVELY, THE "SECURITIES LAWS"). THEY MAY NOT BE SOLD, OFFERED
            FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE
            ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE
            SECURITIES UNDER THE SECURITIES LAWS (i) UNLESS SOLD PURSUANT TO AN
            EXEMPTION FROM REGISTRATION UNDER THE SECURITIES LAWS AND (ii) THE
            COMPANY, IF IT SO REQUESTS, HAS RECEIVED AN OPINION OF COUNSEL
            REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
            REQUIRED."

In addition, the certificates evidencing the Warrant Stock may bear any legend
required by the Company's charter documents or the laws of the State of
Washington and any other state in which the securities will be issued.

      7.  Transfers and Exchanges.

         (a) The Holder may not sell, hypothecate, pledge or otherwise dispose
of any interest in the Warrant or the Warrant Stock unless such transfer would
not violate any provision of this Section 7.

         (b) Subject to the conditions of this Section 7, upon delivery to the
Company of a duly completed and executed Assignment in substantially the form
attached hereto, a new warrant shall be issued to the transferee therein named.
All new warrants issued in connection with transfers or exchanges shall not
require the signature of the new Holder hereof and shall be identical in form
and provision to this Warrant except as to the number of shares.

         (c) It shall be a condition to any transfer of this Warrant that the
transferee shall be an accredited investor, within the meaning of the Securities
Act, and that the Company shall have received, at the time of such transfer or
exercise (i) a representation letter, or at the option of the Company, a legal
opinion, in form and substance reasonably satisfactory to the Company and its
counsel, reciting the pertinent circumstances surrounding the proposed transfer
and stating that such transfer is exempt from the prospectus and registration
requirements of the Securities Act and applicable state securities laws and (ii)
a statement in writing from, and signed by, any proposed transferees containing
the same representations and warranties as set forth in Section 6 hereof and
agreeing to be bound by the provisions of this Section 7, such statement to be
in the form of Assignment attached hereto. Notwithstanding the foregoing, as
long as the transfer of this Warrant is in compliance with applicable securities
laws and there are no significant issues of fact (such as whether or not the
Holder is an "affiliate," as such term is defined in Rule 144 of the Securities
Act) or unusual questions of law, the requirement of a representation letter or
legal opinion shall not apply to (a) the transfer of this Warrant or any part
thereof to a partnership of which the Holder is a partner or to the beneficial
owners or affiliates of such partnership, (b) the transfer of this Warrant or
any part thereof to beneficial owners, employees or affiliates of the Holder,
(c) bona fide gifts to a member of a Holder's immediate family or trustee for a
member of a Holder's immediate family, (d) transfers by will upon the death of a
Holder, or (e) transfers pursuant to a divorce or dissolution of the marriage of
a Holder.

         (d) Ownership of Warrants. The Company may treat the person in whose
name any Warrant is registered on the register kept by the Company or its
transfer agent as the owner and Holder thereof for all purposes, notwithstanding
any notice to the contrary. A Warrant, if properly assigned, may be exercised by
a new

                               Exhibit B-Warrant
                                       5
<PAGE>
Holder without a new Warrant first having been issued. Nothing in this Section
7(d) shall relieve the Holder of his obligations under Section 7(c) hereof.

      8. Successors and Assigns. The terms and provisions of this Warrant shall
be binding upon the Company and the Holder and their respective successors and
assigns, subject at all times to the restrictions set forth herein.

      9. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the
Company of evidence reasonably satisfactory to it and its counsel of the loss,
theft, destruction or mutilation of this Warrant, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to the Company,
and upon reimbursement to the Company of all reasonable expenses incidental
thereto, and upon surrender and cancellation of this Warrant, if mutilated, the
Company will make and deliver a new warrant of like tenor and dated as of such
cancellation, in lieu of this Warrant.

      10. Saturdays, Sundays, Holiday, etc. If the last or appointed day for the
taking of any action or the expiration of any right required or granted herein
shall be a Saturday or Sunday or shall be a legal holiday in the State of
Washington, then such action may be taken or such right may be exercised on the
next succeeding day not a Saturday, Sunday or legal holiday.

      11. Amendments and Waivers. Any term of this Warrant may be amended and
the observance of any term of this Warrant may be waived (either generally or in
a particular instance and either retroactively or prospectively) only with the
written consent of the Company and the Holder. Any such amendment or waiver
shall be binding on the parties.

      12. Governing Law. The terms and conditions of this Warrant shall be
governed by and construed in accordance with the law of the State of Washington,
without regard to conflict of law provisions.

      13. Notices. All notices and other communications under this Warrant shall
be in writing and shall be delivered in person, via facsimile machine, sent by
documented overnight delivery service, or mailed by registered or certified
mail, return receipt requested, postage prepaid, addressed (a) if to any Holder
of any Warrant, at the registered address of such Holder as set forth in the
register kept at the principal office of the Company, or (b) if to the Company,
to the attention of its President or Chief Financial Officer at its principal
offices, provided that the exercise of any Warrant shall be effected in the
manner provided in Section 1. Unless otherwise specified in this Warrant, all
such notices and other written communications shall be effective (and considered
delivered and received for the purposes of this Agreement) (i) if delivered,
upon delivery, (ii) if by facsimile machine during normal business hours upon
transmission with confirmation of receipt by the receiving party's facsimile
terminal and if not sent during normal business hours, then on the next day,
(iii) if sent by documented overnight delivery service, on the date following
the date on which such notice is delivered to such overnight delivery service
for mailing, or (iv) if mailed via first-class regular mail, three (3) day after
depositing in the U.S. Mail.

                               Exhibit B-Warrant
                                        6
<PAGE>
      IN WITNESS WHEREOF, the parties have executed this Warrant effective as of
the date first written above.

                                    THE COMPANY:

                                    HELIX BIOMEDIX, INC.,
                                    Delaware Corporation
                                    By:
                                          --------------------------------
                                    Name: R. Stephen Beatty, President and Chief
                                          Executive Officer

                                    Address:    22122 20th Ave. SE, Suite 148
                                                Bothell, WA  98021

                                    Telephone:  (425) 402-8400

                                    Facsimile:  (425) 806-2999

                                    Number of shares for which this warrant is
                                    initially exercisable:

                                    HOLDER:

                                    ------------------------------------------
                                    (Signature)

                                    ------------------------------------------
                                    (Signature if joint)

                                    Title if applicable:
                                                         ---------------------
                                    Address:
                                             ---------------------------------

                                    Facsimile:
                                               -------------------------------

                                    Soc. Sec. No. or Tax ID:
                                                             -----------------

                               Exhibit B-Warrant
                                        7
<PAGE>
SUBSCRIPTION

Helix BioMedix, Inc.
22122 20th Ave. SE, Suite 148
Bothell, WA  98021

Ladies and Gentlemen:

      The undersigned, ______________________________________hereby elects to
purchase, pursuant to the provisions of the Warrant dated _____________________,
held by the undersigned, _____________shares of Common Stock of Helix BioMedix,
Inc., a Delaware corporation, and tenders herewith payment of the purchase price
of such shares in full.

      The undersigned hereby confirms and acknowledges the investment
representations and warranties made in Section 6 of the Warrant and accepts such
shares subject to the restrictions of the Warrant, copies of which are available
from the Secretary of the Company.

Date:                           Print Name(s):
     -------------------                      --------------------------------

                                             ---------------------------------
                                Signature:
                                          ------------------------------------

                                Title if applicable:
                                                    --------------------------

                                Signature:
                                           -----------------------------------

                                Title if applicable:
                                                    --------------------------
                                Address:
                                        --------------------------------------

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

                               Exhibit B-Warrant
                                        8
<PAGE>
FORM OF ASSIGNMENT

The undersigned hereby assigns this Warrant to

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

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

-----------------------------------------------------------------
      (Print or type name, address and zip code of assignee)

Please insert Social Security or other identifying number of assignee:

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

and irrevocably appoints ___________________ as agent to transfer this Warrant
on the books of the Company.  The agent may substitute another to act for him
or it.

Date:
      --------------

Signed:

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

-----------------------------------------------------------------
(All owners must sign exactly as name(s) appear(s) on the front of this Warrant)

      The undersigned assignee hereby confirms and acknowledges the investment
representations and warranties made in Section 6 of the Warrant and agrees to be
bound by the obligations set forth in the Warrant, copies of which are available
from the Secretary of the Company.

Date:                                By:
       -------------------                ---------------------------------

                                          Name:
                                               ----------------------------

                                          Title:
                                                ---------------------------

                               Exhibit B-Warrant
                                        9exv10w17

 

Exhibit 10.17

Approved by the Compensation Committee: January 24, 2005

Approved by the Board of Directors: January 25, 2005

1999 COMERICA INCORPORATED

AMENDED AND RESTATED

DEFERRED COMPENSATION PLAN

 

 

1999 COMERICA INCORPORATED

AMENDED AND RESTATED

DEFERRED COMPENSATION PLAN

	 	 	 	 	 
	ARTICLE I PURPOSE AND INTENT
	 	I-1
	 
	ARTICLE II DEFINITIONS
	 	 	 	 
	A. Definitions
	 	II-1
	(1) Account Balance Plan
	 	II-1
	(2) Account(s)
	 	II-1
	(3) Annual Base Compensation
	 	II-1
	(4) Beneficiary(ies)
	 	II-1
	(5) Board 
	 	II-1
	(6) Change in Control
	 	II-1
	(7) Code 
	 	II-1
	(8) Comerica Stock 
	 	II-1
	(9) Comerica Stock Fund 
	 	II-1
	(10) Committee
	 	II-2
	(11) Compensation 
	 	II-2
	(12) Compensation Deferral(s)
	 	II-2
	(13) Corporation 
	 	II-2
	(14) Deferral Period 
	 	II-2
	(15) Disabled and Disability 
	 	II-2
	(16) Eligible Employee
	 	II-3
	(17) Employer
	 	II-3
	(18) ERISA
	 	II-3
	(19) Exchange Act
	 	II-3
	(20) Incentive Award 
	 	II-3
	(21) Irrevocable Election Form 
	 	II-4
	(22) Management Incentive Plan 
	 	II-4
	(23) Participant 
	 	II-4
	(24) Performance Period 
	 	II-4
	(25) Plan
	 	II-4
	(26) Plan Administrator(s) 
	 	II-4
	(27) Retirement
	 	II-4
	(28) Section 16 Insider
	 	II-4
	(29) Section 409A Performance Based Compensation
	 	II-4
	(30) Specified Employee 
	 	II-5
	(31) Trust 
	 	II-5
	(32) Trustee
	 	II-5
	(33) Unforeseeable Emergency
	 	II-5
	 
	ARTICLE III ELECTION TO PARTICIPATE IN THE PLAN
	 	 	 	 
	A. Completion of Irrevocable Election Form
	 	III-1
	(1) Deferrals of Ordinary Compensation
	 	III-1
	(2) Deferrals of Performance Based Incentive Awards
	 	III-1

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	B. Contents of Irrevocable Election Form
	 	III-1
	C. Effect of Submitting an Irrevocable Election Form
	 	III-1
	D. Special Rules Applicable to Irrevocable Election Forms
and Deferral of Compensation
	 	III-2
	(1) Deferral Election to be Made Before
Compensation is Earned
	 	III-2
	(2) Irrevocability of Deferral Election
	 	III-2
	E. Deferrals By Committee
	 	III-3
	F. Deferred Compensation Transferred into the Plan
	 	III-4
	G. Subsequent Elections
	 	III-5
	 
	ARTICLE IV DEFERRED COMPENSATION ACCOUNTS AND
INVESTMENT OF DEFERRED COMPENSATION
	 	 	 	 
	A. Deferred Compensation Accounts
	 	IV-1
	B. Earnings on Compensation Deferrals
	 	IV-1
	C. Contribution of Compensation Deferrals to Trust
	 	IV-2
	D. Insulation from Liability
	 	IV-2
	E. Ownership of Compensation Deferrals
	 	IV-2
	F. Special Rule Application to Certain Reallocations
	 	IV-3
	G. Adjustment of Accounts Upon Changes In Capitalization
	 	IV-4
	 
	ARTICLE V DISTRIBUTION OF COMPENSATION DEFERRALS
	 	 	 	 
	A. In General
	 	V-1
	(1) Employment Through Deferral Period
	 	V-1
	(2) Termination Prior to End of Deferral Period 
	 	V-2
	(3) Death of Participant Prior to End of
Installment Distribution Period 
	 	V-3
	(4) Hardship Distributions
	 	V-3
	(5) Cash Out Distributions
	 	V-5
	(6) Change in Control
	 	V-5
	B. Designation of Beneficiary
	 	V-6
	(1) Beneficiary Designation Must be Filed Prior to
Participant’s Death
	 	V-6
	(2) Absence of Beneficiary
	 	V-6
	 
	ARTICLE VI AMENDMENT OR TERMINATION
	 	 	 	 
	A. Amendment and Termination of Plan
	 	VI-1
	 
	ARTICLE VII AUDITING OF ACCOUNTS AND STATEMENTS
TO PARTICIPANTS
	 	 	 	 
	A. Auditing of Accounts
	 	VII-1
	B. Statements to Participants
	 	VII-1
	C. Fees and Expenses of Administration
	 	VII-1
	D. Noncompliance
	 	VII-1

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	ARTICLE VIII MISCELLANEOUS PROVISIONS
	 	 	 	 
	A. Vesting of Participant Accounts
	 	VIII-1
	B. Prohibition Against Assignment
	 	VIII-1
	C. No Employment Contract
	 	VIII-1
	D. Successors Bound
	 	VIII-1
	E. Prohibition Against Loans
	 	VIII-2
	F. Administration By Committee
	 	VIII-2
	G. Governing Law and Rules of Construction
	 	VIII-2
	H. Power to Interpret
	 	VIII-2
	I. Compliance & Severability 
	 	VIII-3
	J. Claims Procedures
	 	VIII-3
	K. Effective Date
	 	VIII-3

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ARTICLE I

PURPOSE AND INTENT

     The 1999 Comerica Incorporated Amended and Restated Deferred Compensation Plan (the “Plan”)
enables Participants to defer receipt of all or a portion of their Compensation to provide
additional income for their subsequent retirement, disability or termination of employment. It is
the intention of the Corporation that the Plan cover only employees who are management or
highly-compensated employees within the meaning of sections 201(2), 301(a)(3), and 401(a)(1) of
ERISA.

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ARTICLE II

DEFINITIONS

     A. Definitions. The following words and phrases, wherever capitalized, shall have the
following meanings respectively:

     (1) “Account Balance Plan” means any deferred compensation plan under which
Participants may elect to defer compensation into a deferred compensation account for the benefit
of that Participant.

     (2) “Account(s)” means the account established for each Participant under Article
IV(A) hereof.

     (3) “Annual Base Compensation” means all ordinary and regular compensation earned by a
Participant during a calendar year, including overtime and commissions.

     (4) “Beneficiary(ies)” means the person(s), natural or corporate, in whatever
capacity, designated by a Participant pursuant to this Plan, or the person otherwise deemed to constitute the
Participant’s beneficiary under Article V(B)(2) hereof.

     (5) “Board” means the Board of Directors of the Corporation.

     (6) “Change in Control” means a change in control as defined in Code Section 409A and
any interpretive authorities promulgated thereunder.

     (7) “Code” means the Internal Revenue Code of 1986, as amended.

     (8) “Comerica Stock” means shares of common stock of the Corporation, $5.00 par value.

     (9) “Comerica Stock Fund” means the deemed investment established under the
Plan pursuant to which a Participant may have requested such deemed investment

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prior to January 1, 1999, of sums deferred under the Plan in units whose value is tied to
the market value of shares of Comerica Stock.

     (10) “Committee” means the Compensation Committee of the Board, or such other
committee appointed by the Board to administer the Plan.

     (11) “Compensation” means gross salary from the Employer including base salary,
incentive compensation, bonuses, overtime, commissions, any Incentive Award and any other form of
cash remuneration approved by the Committee.

     (12) “Compensation Deferral(s)” means both the amount of Compensation a Participant
has elected to defer pursuant to an Irrevocable Election Form, as well as the amount of any
Compensation deferred under another deferred compensation plan that is transferred into the Plan
pursuant to Article III(F), and where the context requires, shall include earnings on said amounts.

     (13) “Corporation” means Comerica Incorporated, a Delaware corporation, and any
successor entity.

     (14) “Deferral Period” means the period during which a Participant elects to defer
receipt of Compensation under the Plan, which period shall end coincident with the Participant’s
Retirement.

     (15) “Disabled” or “Disability” means a Participant who is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a continuous period of not
less than 12 months, or is by reason of any medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less than 12 months,
receiving

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income replacement benefits for a period of not less than 3 months under an accident and
health plan covering employees of the Participant’s Employer.

     (16) “Eligible Employee” means an individual employed by an Employer who is: (i)
eligible to receive compensation under the Comerica Incorporated Management Incentive Plan; (ii)
eligible to receive compensation under an incentive program sponsored by any business unit of the
Employer, provided the Compensation the individual expects to earn in the year his deferral
election is operative is approximately $100,000; or (iii) approved for participation by the
Committee on the basis of high earning potential and other relevant factors consistent with the
Plan.

     (17) “Employer” means Comerica Incorporated, a Delaware corporation, and its
subsidiary corporations, and any successor entity which may succeed the Employer and its subsidiary
corporations.

     (18) “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended.

     (19) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     (20) “Incentive Award” means a business unit incentive or an incentive award granted
to Participants pursuant to the Management Incentive Plan which qualifies as Section 409A
Performance Based Compensation and which is related to the Corporation’s performance, including,
but not limited to, three year performance.

     (21) “Irrevocable Election Form” means the Irrevocable Election Form used to make
deferral elections under this Plan, as adopted by the Corporation, as it may be revised from time
to time.

     (22) “Management Incentive Plan” means the Amended and Restated Comerica Incorporated
Management Incentive Plan, as amended.

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     (23) “Participant” means an employee whose Irrevocable Election Form has been timely
received by the Corporation pursuant to Article III(A) hereof, and who either has a deferral
election currently in effect or an Account balance under the Plan.

     (24) “Performance Period” means, with respect to Compensation, the time period
specified by the Committee, which cannot be less than 12 months, during which Participants can earn
such Compensation.

     (25) “Plan” means the unfunded, nonqualified elective 1999 Comerica Incorporated
Amended and Restated Deferred Compensation Plan, the provisions of which are set forth herein, as
they may be amended from time to time.

     (26) “Plan Administrator(s)” means the individual(s) appointed by the Committee to
handle the day to day administration of the Plan.

     (27) “Retirement” means the later of the first date that a Participant is entitled to
receive an immediate benefit under the Comerica Incorporated Retirement Plan, or such Participant’s
separation from service as defined in Code Section 409A and any interpretive authorities
promulgated thereunder.

     (28) “Section 16 Insider” means any Participant who is designated by the Corporation
as a reporting person under Section 16 of the Exchange Act.

     (29) “Section 409A Performance Based Compensation” means any Incentive Award which
qualifies as “performance based compensation” within the meaning of Code Section 409A, Notice
2005-1, and any other interpretive authorities promulgated thereunder. Notwithstanding any other
provision herein, no Incentive Award will be deemed to constitute performance based compensation if
the performance conditions that serve as the basis for the Incentive Award are substantially
certain to be satisfied at the time a Participant makes an election to defer the Incentive Award
under Article III hereof.

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     (30) “Specified Employee” means a key employee of the Corporation as defined in Code
Section 416(i) without regard to paragraph (5) thereof, and as contemplated in Code Section 409A
and any interpretive authorities promulgated thereunder.

     (31) “Trust” means a rabbi trust, as may be established by the Corporation in
connection with this Plan. Such rabbi trust will be irrevocable, and will contain certain key
provisions, which the Internal Revenue Service would require in order to conclude that
contributions made thereto by an employer, to provide for the payment of non-qualified deferred
compensation benefits to employees, will not be taxed (other than with respect to employment taxes
imposed under Code Section 3121(v)(2)) to employees at the time contributions are made, but
instead, at the time the benefits are received or otherwise made available to the employee.

     (32) “Trustee” means the entity selected by the Corporation as trustee of the Trust.

     (33) “Unforeseeable Emergency” means a severe financial hardship to the Participant
resulting from an illness or accident of the Participant, the Participant’s spouse, or a dependent
(as defined in Code Section 152(a)) of the Participant, loss of the Participant’s property due to
casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant. This definition shall be construed in a manner that is consistent
with Code Section 409A and any interpretive authorities promulgated thereunder.

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ARTICLE III

ELECTION TO PARTICIPATE IN THE PLAN

     A. Completion of Irrevocable Election Form.

     (1) Deferrals of Annual Base Compensation. An Eligible Employee who wishes to become
a Participant in the Plan must submit a signed Irrevocable Election Form, indicating the amount of
Annual Base Compensation the Participant wishes to defer, before the first day of the calendar year
in which such Annual Base Compensation is earned, or earlier if the Plan Administrator so
determines.

     (2) Deferrals of Performance Based Incentive Awards. Notwithstanding the preceding
subparagraph, any Eligible Employee who wishes to defer an Incentive Award must submit a signed
Irrevocable Election Form no later than six months prior to the end of the applicable Performance
Period, or earlier if the Plan Administrator so requires.

     The participant will be deemed to have made an election under this Plan on the date that the
Corporation receives the Irrevocable Election Form. An Eligible Employee must timely file an
Irrevocable Election Form with respect to each year’s Compensation and each Performance Period’s
Incentive Award that he or she wishes to defer.

     B. Contents of Irrevocable Election Form. Each Irrevocable Election Form shall: (i)
designate the amount of Compensation to be deferred in whole percentages or in whole dollars; (ii)
request that the Employer defer payment of Compensation to the Participant until the year the
Participant reaches Retirement; (iii) state how the Participant wishes to receive payment of the
Compensation Deferrals at Retirement; and (iv) contain other provisions the Committee deems
appropriate.

     C. Effect of Submitting an Irrevocable Election Form. Upon Participant’s submission
of his or her Irrevocable Election Form, the Participant shall be (i) bound by the provisions of the Plan and by
the provisions of any agreement governing the Trust; (ii) bound by the provisions of the
Irrevocable Election Form; and (iii) deemed to have

lll-1

 

 

assumed the risks of deferral, including, without limitation, the risk of poor investment performance and the risk that the Corporation may
become insolvent.

     D. Special Rules Applicable to Irrevocable Election Forms and Deferral of
Compensation.

     (1) Deferral Election to be Made Before Compensation is Earned. Compensation may only
be deferred to the extent that it has not yet been earned by a Participant. An election to defer
Annual Base Compensation must be received by the Corporation before the first day of the calendar
year in which the Compensation is earned, however, with respect to an Incentive Award, the election
to defer must be received by the Corporation no later than six months prior to the end of the
applicable Performance Period. Notwithstanding the preceding sentence, an Irrevocable Election Form
received by the Corporation within thirty (30) days of the date an individual first becomes
eligible to participate in the Plan may defer Compensation for such calendar year to the extent it
has not yet been earned. Notwithstanding anything in this Article III to the contrary, the
Committee, in its sole discretion, may impose limitations on the percentage or dollar amount of any
Participant election to defer Compensation and may impose rules prohibiting the deferral of less
than 100% of any award under any incentive compensation plan of the Employer that permits deferral
of awards thereunder.

     (2) Irrevocability of Deferral Election. Except as provided in Articles III(G) and
V(A)(4) below, the provisions of the Irrevocable Election Form relating to a Participant’s election to defer Compensation and the
Participant’s selection of the time and manner of payment of the Compensation Deferrals shall be
irrevocable.

     E. Deferrals By Committee. At its discretion, the Committee may defer any
portion of Compensation payable to a Participant pursuant to a notice to the Participant provided
such notification is given before the first day of the calendar year in which the

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Annual Base Compensation will be earned; however, with respect to an Incentive Award, the Committee must give
such notice no later than six months prior to the end of the applicable Performance Period.
Notwithstanding the preceding sentence, such a deferral election by the Committee will be permitted
only if the Committee’s election does not cause any portion of the Plan to violate Code § 409A or
any of the interpretive authorities promulgated thereunder. The notice must (1) include the amount
of Compensation to be deferred in whole percentages or whole dollars, (2) designate that such
deferral will not become payable until the Participant’s Retirement, and (3) state whether the
Participant shall receive such distribution in a lump sum or installments. Any Compensation
deferred under the Plan by the Committee shall be deemed invested in the investment option under
the Plan which most closely approximates a money market fund pending the Employer’s receipt of an
investment request from the Eligible Employee. It shall be the Eligible Employee’s obligation to
submit an investment request to the Employer if any Compensation deferred by the Committee is to be
invested in any fund other than a money market fund. Notwithstanding anything to the contrary, no
Compensation, other than Compensation placed in the Account prior to January 1, 1999, shall be
invested in or reallocated to Comerica Stock.

     Upon the death of the Participant on behalf of whom the Compensation is deferred, unless the
Participant has delivered a beneficiary designation form to the Corporation with respect to the
sums deferred by the Committee, the balance will be distributed to the Beneficiary(ies) listed on
the most recent beneficiary designation form delivered to the Corporation with respect to any other
Compensation deferred by the Participant under the Plan. If the Participant has not submitted a
beneficiary designation form with respect to

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such other deferrals, the Compensation deferred by the Committee and any earnings thereon shall be payable in cash to the Participant’s estate upon his or
her death.

     F. Deferred Compensation Transferred into the Plan.

     (1) At the discretion of the Committee, a Participant may be permitted to transfer previously
deferred compensation into the Plan, so long as such amounts were deferred pursuant to the terms of
a nonqualified deferred compensation plan of the Corporation and/or its subsidiary corporations.
Further, such transfer will only be permitted if the Committee determines (1) that the transfer
will meet the applicable requirements of the Plan, and will not adversely affect the Plan’s status
as an “unfunded” Plan for income tax purposes and for purposes of Title I of ERISA; and (2) the
Participant has had no right, in conjunction with said transfer, to receive such deferred
compensation in cash. Compensation Deferrals that are transferred into the Plan will be allocated
to a book reserve account on behalf of the Participant and, unless otherwise stated, will be
subject to all of the terms and conditions of the Plan for Compensation Deferrals, including, but
not limited to the provisions of Article IV.

     (2) Amounts transferred from the Imperial Bancorp Deferred Compensation Plan effective
November 30, 2001, were accepted into this Plan pursuant to Resolutions of the Compensation Committee of the Board of Directors of Comerica, signed January 21, 2002. If any
Participant, prior to November 30, 2001, had elected to receive a “Short-Term Payout” from such
plan pursuant to its Article 4, Section 4.1, such election shall be honored. “Short-Term Payouts”
are not permitted under any other circumstances.

     G. Subsequent Elections. If a Participant wishes to extend a deferral period to a
later date, or make a change in the method of payment with respect to Compensation

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deferred after December 31, 2004, he or she may do so provided that such a subsequent deferral election (1) may
not be made less than 12 months prior to the date of such Participant’s first scheduled payment;
and (2) will extend the deferral period for a minimum of 5 years from the date that each such
payment would have otherwise have been made to such Participant (except in the case of death,
Disability or an Unforeseeable Emergency). Furthermore, a Participant may extend a deferral period
to a later date, or make a change in the method of payment with respect to Compensation deferred
prior December 31, 2004, only to the extent allowed by Code Section 409A and any interpretive
authorities promulgated thereunder.

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ARTICLE IV

DEFERRED COMPENSATION ACCOUNTS

AND INVESTMENT OF DEFERRED COMPENSATION

     A. Deferred Compensation Accounts. The Plan Administrator shall establish a book
reserve account in the name of each Participant. As soon as is administratively feasible following
the date Compensation subject to a Participant’s deferral election would otherwise be paid to the
Participant, the Plan Administrator shall credit the Compensation being deferred to the
Participant’s Account. From time to time, at intervals to be determined by the Committee, each
Participant’s Account shall be credited with earnings or charged with losses resulting from the
deemed investment of the Compensation Deferrals credited to the Account as though the Compensation
Deferrals had been hypothetically invested in the investments selected by the Participant as
provided below, and shall be charged with any distributions, any federal and state income tax
withholdings, any social security tax as may be required by law and by any further amounts,
including administrative fees and expenses, the Employer is either required to withhold or
determines are appropriate charges to such Participant’s Account.

     B. Earnings on Compensation Deferrals. At the time a Participant submits an
Irrevocable Election Form, and from time to time thereafter at intervals to be determined by the
Committee, each Participant shall select, in a form approved by and in accordance with procedures
established by the Committee, how the Participant chooses the balance (and any earnings and
dividends credited thereon) to be deemed to be invested among investment options (which shall not
include Comerica Stock) to be made available by the Committee for record-keeping purposes. In lieu
of making investment options available to

IV-1

 

 

Participants, the Corporation may credit deferred sums
with a reasonable rate of interest to reflect the time value of money.

     The Corporation shall be under no obligation to acquire any of the investments selected
by any Participant, and any investments actually made by the Corporation with Compensation
Deferrals will be acquired solely in the name of the Corporation, and will remain the sole property
of the Corporation, except to the extent held in a Trust.

     C. Contribution of Compensation Deferrals to Trust. In the sole discretion of the
Corporation, all or any portion of the Compensation Deferrals credited to any Participant’s Account
may be contributed to a Trust established by the Corporation in connection with the Plan. No
Participant or Beneficiary shall have the right to direct or require that the Corporation
contribute the Participant’s Compensation Deferrals to the Trust. Any Compensation Deferrals so
contributed shall be held, invested and administered to provide benefits under the Plan except as
otherwise required in the agreement governing the Trust.

     D. Insulation from Liability. No member of the Committee or officer, employee or
director of any Employer shall be liable to any person for any action taken or omitted in
connection with the administration of this Plan or Trust unless attributable to such individual’s
own fraud or willful misconduct.

     E. Ownership of Compensation Deferrals. Title to and beneficial ownership of any
assets, of whatever nature, which may be allocated by the Corporation to any Account in the name of
any Participant shall at all times remain with the Corporation, and no Participant or Beneficiary
shall have any property interest whatsoever in any specific assets of the Corporation by reason of
the establishment of the Plan nor shall the rights of any

IV-2

 

 

Participant or Beneficiary to payments under the Plan be increased by reason of the Corporation’s contribution of Compensation Deferrals
to the Trust. The rights of each Participant and Beneficiary hereunder shall be limited to
enforcing the unfunded, unsecured promise of the Participant’s Employer to pay benefits under the
Plan, and the status of any Participant or Beneficiary shall be that of an unsecured general
creditor of the Corporation. Participants and Beneficiaries shall not be deemed to be parties to
any trust agreement the Corporation enters into with the Trustee.

     F. Special Rule Applicable To Certain Reallocations.

     (1) Notwithstanding the foregoing, effective January 1, 1999, a Participant may not direct a
reallocation out of any investment fund into the Comerica Stock Fund. A Participant may however,
reallocate out of the Comerica Stock Fund into any other investment fund (which shall not include
the Comerica Stock Fund), except as provided in subsection (2) of this section.

     (2) A Section 16 Insider may not direct a reallocation out of the Comerica Stock Fund into any
other investment funds if, within the previous six months, he or she (or any other person whose
transactions are attributed to the Section 16 Insider under Section 16 of the Exchange Act) either (i) acquired shares of Comerica Stock in the open market or
pursuant to a private transaction, or (ii) made an election under the Plan (or under any other plan
sponsored by the Corporation) that resulted in an acquisition of equity securities of the
Corporation within the meaning of that term under Section 16 of the Exchange Act.

     To the extent consistent with rules under Section 16 of the Exchange Act, the foregoing
prohibitions shall not be applicable if the reallocation is in connection with the Section 16
Insider’s death, Disability, Retirement or termination of employment.

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     Notwithstanding any other provision of the Plan, effective January 1, 1999, except in
the circumstances of death, Disability, Retirement or other termination of employment, a Section 16
Insider shall not be permitted to receive a cash distribution from the Plan which is funded to any
extent by a disposition of his or her interest.

     G. Adjustment of Accounts Upon Changes In Capitalization. With respect to Accounts
that are deemed to be invested in whole or in part in the Comerica Stock Fund, in the event the
number of outstanding shares of Comerica Stock changes as a result of any stock split, stock
dividend, recapitalization, merger, consolidation, reorganization, combination, or exchange of
shares, split-up, split-off, spin-off, liquidation or other similar change in capitalization, or
any distribution made to common stockholders other than cash dividends, the number or kind of
shares of Comerica Stock in which such Accounts are deemed to be invested shall be automatically
adjusted, and the Committee shall be authorized to make such other equitable adjustment of any
Account, so that the value of the Account shall not be decreased by reason of the occurrence of
such event. Any such adjustment shall be conclusive and binding.

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ARTICLE V

DISTRIBUTION OF COMPENSATION DEFERRALS

     A. In General. The benefits payable hereunder as deferred compensation shall be paid
to the Participant or to the Participant’s Beneficiary as follows:

     (1) Employment Through Deferral Period. If the Participant’s employment with Employer
continues until the last day of the Deferral Period, the Corporation shall, as soon as
administratively feasible following the end of the Deferral Period, distribute, or commence to
distribute, the balance of the Account in the name of the Participant, in cash, in any manner
described below which is selected by the Participant in the Participant’s Irrevocable Election
Form: (i) a lump sum; (ii) five (5) annual installments; (iii) ten (10) annual installments; or
(iv) fifteen (15) annual installments, however, in the case of a Specified Employee, distributions
may not be made until at least six months after the date of such Specified Employee’s Retirement
(or, if earlier, the date of death of the Specified Employee) to the extent that it complies with
Code Section 409A and any interpretive authorities promulgated thereunder. Notwithstanding the
preceding sentence, with respect to any and all Compensation transferred into the Plan from the
Imperial Entertainment Group Equity Appreciation Rights Program, and earnings thereon, if the
Participant’s employment with Employer continues until the last day of the Deferral Period, the
Corporation shall, as soon as administratively feasible following the end of the Deferral Period,
distribute said transferred amounts in a lump sum only.

     For purposes of determining the amount of annual installments, X shall equal the number of
years over which benefits will be paid as elected by the Participant. The Corporation shall pay to
the Participant or to the Participant’s Beneficiary an amount equal

V-1

 

 

to 1/X of the fair market value of the Account in the Participant’s name, such value to be based on the closing price of the
corresponding investment fund on the exchange on which such fund is listed or the market on which
such fund is traded, on the trading day prior to the distribution of the installment payment. On
approximately the same date of the following year, the Corporation shall pay to the Participant or
to the Participant’s Beneficiary an amount equal to 1/X-1 of the fair market value of such Account,
such value to be determined as stated in the preceding sentence. On approximately the same date of
the following year, the Corporation shall pay to the Participant or to the Participant’s
Beneficiary an amount equal to 1/X-2 of the fair market value of such Account (as determined
above), and similar payments shall continue to be made on approximately the same date of each
succeeding year until a total of X annual payments have been made.

     (2) Termination Prior to End of Deferral Period. If the Participant’s employment with
the Employer terminates prior to the last day of the Deferral Period (unless such termination is
due to the Participant’s Disability), then notwithstanding the manner of distribution selected by
the Participant in the Participant’s Irrevocable Election Form, the Corporation shall distribute
(or direct the Trustee to distribute) in a lump sum payment, an amount equal to the fair market
value of the Account in the name of the Participant, such value to be determined as of the earliest
convenient date, as determined by the Committee, which occurs subsequent to the date the
Participant’s employment terminates, provided such date is within 30 days from the Participant’s termination. Notwithstanding the preceding sentence, in the case of a
Specified Employee, distributions may not be made until at least six months after the date of such
Specified Employee’s termination (or, if earlier, the date of death of such Specified Employee).
Notwithstanding the acceleration

V-2

 

 

of payment as described in this subparagraph V(A)(2), such
acceleration will only be permitted to the extent that it complies with Code Section 409A and any
interpretive authorities promulgated thereunder.

     If the Participant’s employment with the Employer terminates prior to the last day of the
Deferral Period because the Participant has become Disabled, the Participant’s Account shall be
distributed, or commence to be distributed, as soon as administratively feasible following his or
her termination date, in such manner specified in the Participant’s Irrevocable Election Form.

     (3) Death of Participant Prior to End of Installment Distribution Period. If the
Participant dies before a distribution of all of the Participant’s Account is made, then the
remaining balance of the Participant’s Account shall be distributed in a lump sum payment in an
amount equal to the fair market value of the Account as of the earliest convenient date as
determined by the Committee which occurs subsequent to the date of the Participant’s death,
provided such date is within 30 days of the Participant’s death. Notwithstanding the acceleration
of payment as described in this subparagraph V(A)(3), such acceleration will only be permitted to
the extent that it complies with Code Section 409A and any interpretive authorities promulgated
thereunder.

     (4) Hardship Distributions. In the event of an Unforeseeable Emergency involving a
Participant, the Committee may, in its sole discretion:

     (a) make a single distribution to the Participant from the Participant’s Account not to
exceed the amount sufficient to cover the emergency, plus amounts necessary to pay the taxes
anticipated as a result of the distribution. The amount distributed must take into account the
extent to which the hardship is or may be relieved through reimbursement or

V-3

 

 

compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation
of such assets would not itself cause severe financial hardship); and/or

     (b) permit the Participant to cancel a future deferral election and to instead receive, at
the otherwise scheduled payment date, such portion of the amount that is subject to the deferral
election, but only in an amount as shall be necessary in the judgment of the Committee to alleviate
the financial hardship occasioned by the Unforeseeable Emergency. Notwithstanding the cancellation
of future deferral elections as described in this subparagraph V(A)(4)(b), such cancellation will
only be permitted to the extent that it complies with Code Section 409A and any interpretive
authorities promulgated thereunder.

     Any Participant desiring a distribution or seeking to cancel a deferral on account of an
Unforeseeable Emergency shall submit to the Committee a written request which sets forth in
reasonable detail the Unforeseeable Emergency which would cause the Participant severe financial
hardship, and the amount of cash which the Participant believes to be necessary to alleviate the
financial hardship. In determining whether to grant either such request, the Committee shall apply
the standards of Code Section 409A and any interpretive authorities promulgated thereunder. Any Participant who receives a hardship
distribution or who is permitted to cancel a deferral election shall not again be eligible to
submit a deferral election until the next enrollment period after the calendar year in which a
hardship distribution or a cancellation is permitted, assuming the foregoing provision complies
with Code Section 409A and any interpretive authorities promulgated thereunder.

     If a Participant receives a hardship distribution under this Article V(A)(4) and/or under the
Comerica Incorporated Preferred Savings Plan, the Participant’s deferral election

V-4

 

 

hereunder shall be automatically canceled to the extent it would defer the Participant’s receipt of any Incentive
Award earned during the twelve-month period following the date of the Participant’s receipt of such
hardship distribution. Any Participant whose deferral election is automatically canceled in
accordance with the provisions hereof shall not again be eligible to submit a deferral election
until the next enrollment period after the calendar year in which the Participant receives a
hardship distribution. Notwithstanding a Participant’s receipt of a hardship distribution or the
cancellation of future deferral elections as described in this subparagraph V(A)(4)(b), such
receipt or cancellation will only be permitted to the extent that it complies with Code Section
409A and any interpretive authorities promulgated thereunder.

     (5) Cash Out Distributions. If, at the time an installment distribution of a
Participant’s Account is scheduled to commence, the fair market value of such Account does not
exceed $5,000, then notwithstanding an election by the Participant to receive distribution of such
Account in installments, the balance of such Account shall be distributed to the Participant in a
lump sum distribution on or about the date the first installment is scheduled to be made. For
amounts payable after January 1, 2005, the acceleration of payment as described in this paragraph Article V(A)(5), will not be
permitted except as provided under Code Section 409A and any interpretive authorities promulgated
thereunder.

     (6) Change in Control. Upon the occurrence of a Change in Control, the remaining
balance of a Specified Employee’s Account, shall be distributed to the Specified Employee, in a
lump sum, as soon as is administratively feasible following the date of such Specified Employee’s
termination after a Change in Control; however, a distribution upon a

V-5

 

 

Change in Control will not occur if the Specified Employee remains employed with the surviving entity 60 days after the date
of the Change in Control. Notwithstanding the acceleration of payment as described in this
subparagraph V(A)(6), such acceleration will only be permitted to the extent that it complies with
Code Section 409A and any interpretive authorities promulgated thereunder. Notwithstanding
anything to the contrary in this subparagraph V(A)(6), the acceleration following a Change in
Control provided for herein only applies to Compensation deferred after December 31, 2004.

     B. Designation of Beneficiary. A Participant shall deliver to the Corporation a
written designation of Beneficiary(ies) under the Plan, which designation may be amended or revoked
from time to time, without notice to, or consent of, any previously designated Beneficiary.

     (1) Beneficiary Designation Must be Filed Prior to Participant’s Death. No
designation of Beneficiary, and no amendment or revocation thereof, shall become effective if
delivered to the Corporation after such Participant’s death, unless the Committee shall determine
such designation, amendment or revocation to be valid.

     (2) Absence of Beneficiary. In the absence of an effective designation of Beneficiary, or
if no Beneficiary designated shall survive the Participant, then the balance of the Account in the
name of the Participant shall be paid to the Participant’s estate.

V-6

 

 

ARTICLE VI

AMENDMENT OR TERMINATION

     A. Amendment and Termination of Plan. This Plan may be amended or terminated at any
time in the sole discretion of the Committee by a written instrument executed by the Committee to
the extent that such termination or amendment complies with applicable laws including Code Section
409A and any interpretive authorities promulgated thereunder. No such amendment shall affect the
time of payment of any Compensation earned prior to the time of such amendment or termination
except as the Committee may determine to be necessary to carry out the purpose of the Plan.

     Written notice of any such amendment or termination shall be given to each Participant. Upon
termination of the Plan, the Corporation shall distribute to each Participant or Beneficiary, or
direct that the Trustee so distribute, the amounts which would have been distributed to such
Participant or Beneficiary under the Plan had the Participant’s employment with an Employer
terminated at the time of termination of the Plan. In addition, no such amendment shall make the
Trust revocable.

VI-1

 

 

ARTICLE VII

AUDITING OF ACCOUNTS AND STATEMENTS

TO PARTICIPANTS

     A. Auditing of Accounts. The Plan shall be audited from time to time as directed by
the Committee by auditors selected by the Committee.

     B. Statements to Participants. Statements will be provided to Participants under the
Plan on at least an annual basis.

     C. Fees and Expenses of Administration. Fees of the Trustee and expenses of
administration of the Plan shall be deducted from Accounts.

     D. Noncompliance. Compensation deferred for a Participant under any Account Balance
Plan for the taxable year and all preceding years in which any such Account Balance Plan, with
respect to that Participant, fails to meet the requirements, or fails to be operated in accordance
with applicable laws, is includible in gross income for the taxable year it was earned to the
extent it is not subject to a “substantial risk of forfeiture.” The income tax will be calculated
from the time a participant first became eligible in a defective plan, or from the time the plan
failed to comply, adding a late fee using the appropriate late income tax payment interest factor,
plus 1%. A 20% excise tax will also be assessed. The Corporation intends to operate the Plan in
accordance with all applicable laws, but in the event that any Account Balance Plan fails to meet
the requirements or fails to be operated in accordance with applicable laws, the Corporation will
not be responsible for any assessment of income tax, late fee, and/or excise tax. Such amounts will be the
responsibility of each affected Plan Participant and shall be deducted from each Participant’s
Account.

VII-1

 

 

ARTICLE VIII

MISCELLANEOUS PROVISIONS

     A. Vesting of Participant Accounts. Each Participant shall be fully vested in his or
her Account, which includes Compensation Deferrals transferred into the Plan from the Imperial
Entertainment Group Equity Appreciation Rights Program, notwithstanding the vesting schedule set
forth in the Imperial Entertainment Group Equity Appreciation Rights Program.

     B. Prohibition Against Assignment. Benefits payable to Participants and their
Beneficiaries under the Plan may not be anticipated, assigned (either at law or in equity),
alienated, sold, transferred, pledged or encumbered in any manner, nor may they be subjected to
attachment, garnishment, levy, execution or other legal or equitable process for the debts,
contracts, liabilities, engagements or acts of any Participant or Beneficiary. It will not,
however, be deemed a violation of this Article VIII(B) to follow a Domestic Relations Order
pursuant to procedures established by the Committee.

     C. No Employment Contract. Nothing in the Plan is intended to be construed, or shall
be construed, as constituting an employment contract between the Employer and any Participant nor
shall any Plan provision affect the Employer’s right to discharge any Participant for any reason or
for no reason.

     D. Successors Bound. The contractual agreement between the Corporation and each
Participant resulting from the execution of an Irrevocable Election Form shall be binding upon and inure to the benefit of the
Corporation, its successors and assigns, and to the Participant and to the Participant’s heirs,
executors, administrators and other legal representatives.

VIII-1

 

 

     E. Prohibition Against Loans. The Participant may not borrow any Compensation
Deferrals from the Corporation nor utilize his or her Account as security for any loan from the
Employer.

     F. Administration By Committee. Responsibility for administration of the Plan shall
be vested in the Committee. To the extent permitted by law, the Committee may delegate any
authority it possesses to the Plan Administrator(s). This includes the power and authority to
comply with the withholding and reporting requirements of Code Section 409A and Regulations
promulgated thereunder. To the extent the Committee has delegated authority concerning a matter to
the Plan Administrator(s), any reference in the Plan to the “Committee” insofar as it pertains to
such matter, shall refer likewise to the Plan Administrator(s).

     G. Governing Law and Rules of Construction. This Plan shall be governed in all
respects, whether as to construction, validity or otherwise, by applicable federal law and, to the
extent that federal law is inapplicable, by the laws of the State of Michigan and also in
accordance with Code Section 409A and any interpretive authorities promulgated thereunder. It is
the intention of the Corporation that the Plan established hereunder be “unfunded” for income tax
purposes and for purposes of Title I of ERISA, and the provisions hereof shall be construed in a
manner to carry out that intention.

     H. Power to Interpret. This Plan shall be interpreted and effectuated to comply with
the applicable requirements of ERISA, the Code and other applicable tax law principles; and all such applicable requirements are hereby
incorporated herein byreference. Subject to the above, the Committee shall have power to
construe and interpret this Plan, including but not limited to all provisions of this Plan relating
to eligibility for

VIII-2

 

 

benefits and the amount, manner and time of payment of benefits, any such
construction and interpretation by the Committee and any action taken thereon in good faith by the
Plan Administrator(s) to be final and conclusive upon any affected party. The Committee shall also
have power to correct any defect, supply any omission, or reconcile any inconsistency in such
manner and to such extent as the Committee shall deem proper to carry out and put into effect this
Plan; and any construction made or other action taken by the Committee pursuant to this Article
VIII(H) shall be binding upon such other party and may be relied upon by such other party.

     I. Compliance & Severability. It is the Corporation’s intent to comply with all
applicable tax and other laws, including Code Section 409A and any interpretive authorities
promulgated thereunder, so that all rights under the Plan will be limited as necessary in the
judgment of the Committee to conform therewith. Therefore, consistent with the effectuation of the
purposes hereof, each provision of this Plan shall be treated as severable, to the end that, if any
one or more provisions shall be adjudged or declared illegal, invalid or unenforceable, this Plan
shall be interpreted, and shall remain in full force and effect, as though such provision or
provisions had never been contained herein.

     J. Claims Procedures. Any claim for benefits under the Plan, must be made pursuant to
ERISA claims procedures, a copy of which is available upon request.

     K. Effective Date. The effective date of this amendment and restatement shall be
January 1, 2005, except as otherwise expressly stated herein.

VIII-3

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