Document:

AMENDED AND RESTATED CONSULTING AGREEMENT

     This AMENDED AND RESTATED CONSULTING AGREEMENT (this "Agreement"), dated as
of May __, 2001, is entered into, by and among HELIX BIOMEDIX,  INC., a Delaware
corporation ("Helix"),  KATZ-MILLER VENTURES L.L.C.  ("Consultant"),  Ralph Katz
("Katz")  and  Jeffrey A.  Miller  ("Miller")  (Katz and  Miller  are  sometimes
referred to herein collectively as the "Consulting Principals").

                              PRELIMINARY RECITALS
                              --------------------

     WHEREAS,  Helix and  Consultant  entered  into a  consulting  agreement  on
September  30,  1999,  containing  provisions  relating  to the  services  to be
provided  to Helix by  Consultant  and the  compensation  to be paid by Helix to
Consultant; and

     WHEREAS,  Helix  and  Consultant  desire  to amend  and  restate  the terms
governing the relationship between the parties:

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

     1. Termination of Prior Agreement.
     ----------------------------------
     The prior  agreement  between the parties,  dated  September  30, 1999,  is
terminated  and  superseded in its entirety by this  Agreement.  Notwithstanding
such termination, Helix acknowledges that Consultant has previously been awarded
stock and options covering  280,000 shares in the aggregate,  and agrees to take
no steps to seek the return of such shares.

     2. Compensation.
     ----------------
     In consideration for the services heretofore rendered by Consultant and its
agreement not to compete with Helix, Helix shall:

          (a) pay to Consultant the sum of Eighty Thousand Dollars  ($80,000) on
     or before July 1, 2001.

          (b) extend to Consultant,  subsequent to Consultant and the Consulting
     Principals  executing  a  promissory  note,  in  substantially  the form as
     Exhibit A attached hereto,  payable to Helix bearing interest at 5.985% per
     annum and bearing a term of sixty (60) days, a loan in the amount of Eighty
     Thousand Dollars ($80,000); and

          (c) issue to Consultant  warrants to purchase  Company common stock at
     the following  exercise prices and amounts,  all such warrants to expire on
     June 30, 2011:

               (i) Fifty Thousand (50,000) shares at $1.50 per share;

               (ii) Fifty Thousand (50,000) shares at $3.00 per share;

<PAGE>

               (iii) Fifty Thousand (50,000) shares at $4.50 per share; and

               (iv) Fifty Thousand (50,000) shares at $6.00 per share.

     2.1 Restricted Stock
     --------------------

          (a) Consultant recognizes and understands that neither the warrants to
     be issued to  Consultant  hereunder nor the shares of Helix stock which may
     be obtained upon exercise of those warrants (collectively the "Securities")
     will be registered under the Securities Act of 1933 (the "Securities  Act")
     or under the securities laws of any state.

          (b) Consultant represents and warrants that (i) each of the Consulting
     Principals  has knowledge and experience in business,  finance,  securities
     and  investments,  such  experience  being  based on  actual  participation
     therein;  (ii) each of the  Consulting  Principals is capable of evaluating
     the merits and risks of an investment in the Securities;  (iii) each of the
     Consulting Principals is an experienced and sophisticated  investor and has
     experience  in  investments  similar  to that of the  Securities;  (iv) the
     Securities  which  may be  acquired  by it  will  be  acquired  solely  for
     investment  and not with a view  toward  resale or  redistribution;  (v) no
     assurances  have been made  concerning the future results of Helix or as to
     the  value  of  the  Securities;  (vi)  it  (and  each  of  the  Consulting
     Principals)  is an accredited  investor  within the meaning of Regulation D
     promulgated  under  the  authority  of the  Securities  Act;  and (vii) the
     Consulting Principals are the sole equity owners of Consultant.

          (c)  Consultant  has  consulted  with its own counsel in regard to the
     securities laws and is fully aware (i) of the circumstances  under which it
     is required to hold the Securities; (ii) of the limitations on the transfer
     or disposition  of the  Securities;  and (iii) that the Securities  must be
     held  indefinitely  unless the  transfer  thereof is  registered  under the
     securities laws or an exemption from registration is available.

          (d)  Consultant has been furnished with a copy of the Annual Report on
     Form  10-KSB  of Helix  filed  with the  Commission  under  the  Securities
     Exchange Act of 1934,  as amended,  for the fiscal year ended  December 31,
     2000.  Helix  has made  available  to  Consultant  the  opportunity  to ask
     questions and receive  answers  concerning  the terms and conditions of the
     transactions  contemplated  by this  Agreement and to obtain any additional
     information which they possess or could reasonably  acquire for the purpose
     of verifying the accuracy of the information furnished to Consultant as set
     forth  herein  or  for  the  purpose  of   considering   the   transactions
     contemplated  hereby. Helix has offered, and agrees during the term of this
     Agreement,  to make  available to  Consultant  upon request at any time all
     exhibits filed by Helix with the Securities and Exchange Commission as part
     of any of the reports filed therewith.

                                        2
<PAGE>

     3. Restrictive Covenant.
     ------------------------
     Except as  otherwise  agreed to in  writing  by Helix,  for a period of two
years following  execution of this Agreement,  neither Consultant nor any of the
Consulting  Principals  shall  as an  individual,  partner,  member  of a  joint
venture,  consultant  agent,  salesman,  director or  stockholder  (other than a
beneficial  holder  of not more  than 5% of the  outstanding  voting  stock of a
company  having  at least 250  holders  of voting  stock) of a  corporation,  or
otherwise directly or indirectly:

          (a) enter into or engage in any  business or consult with any business
     or  entity  competitive  with  Helix in the area of the  research  into and
     development of commercial  applications for lytic peptide technology within
     any area of the United States in which Helix is then doing business;

          (b) solicit or attempt to solicit any of Helix's  customers  with whom
     Consultant  has had contact as a  Consultant  or employee of Helix with the
     intent or purpose to perform for such customer the same or similar services
     which Consultant performed for such customer during the term of his service
     hereunder or employment by Helix;

          (c) employ or solicit, or attempt to employ or solicit, for himself or
     any third party, the employment of any of Helix's employees; or

          (d) induce or attempt to induce any  employee,  consultant or agent of
     Helix to discontinue providing services to Helix.

     4. Right of First Refusal.
     --------------------------
     Subject to the terms and conditions specified in this Section 4, Consultant
and the  Consulting  Principals  hereby grant to Helix a right of first  refusal
with respect to any future sales by Consultant of shares of Helix's common stock
now  owned or which  may be  received  pursuant  to  execution  of any  warrants
described in Section 2(b) above (the "First Refusal Shares").

     Except as may be provided in Section 4(c) below,  each time Consultant or a
Consulting Principal proposes to offer any First Refusal Shares, such party (the
"Offering  Party")  shall  first make an offer of such  shares to the Company in
accordance with the following provisions:

          (a) The  Offering  Party  shall  deliver  a notice by  certified  mail
     ("Notice") to Helix stating (i) its bona fide intention to offer such First
     Refusal Shares, (ii) the number of such shares to be offered, and (iii) the
     price and terms, if any, upon which it proposes to offer such shares.

          (b) Within 7 calendar days after giving of the Notice, Helix may elect
     to  purchase  or  obtain,  at the price and on the terms  specified  in the
     Notice,  any or all of the First  Refusal  Shares  offered by the  Offering
     Party.

          (c) The  provisions  of this  Section  4 shall  not apply to offers by
     Consultant to sell Helix's common stock in brokers' transactions as defined
     in Section 4(4) of the Securities Act.

     5. Release of Claims.
     ---------------------
     Each of the parties to this  Agreement  hereby  agrees to fully and forever
release,  acquit and discharge all other parties to this  Agreement,  their past
and present,  subsidiary  and  affiliated  corporations,  divisions and business
entities, and their past and present officers,  directors,  trustees,  employees
and agents from any and all liability for any and all injuries, claims, demands,
damages,  actions or suits of any kind or nature,  including attorneys' fees and

                                        3
<PAGE>

costs,  arising out of Consultant  and the Consulting  Principals  activities as
such,  based on any  facts in  existence  in whole or in part at the time of the
signing  of this  Agreement,  and  whether  known or  unknown at the time of the
execution  of this  Agreement.  This  Section  5  shall  not be  interpreted  to
constitute  a  release  of any  claim  arising  from  service  by  either of the
Consulting Principals on the Board of Directors of Helix.

     6. Assignment.
     --------------
     No party  hereto may assign or  delegate  any of its rights or  obligations
hereunder without the prior written permission of the other party hereto. Except
as otherwise  expressly provided herein, all covenants and agreements  contained
in this  Agreement  by or on behalf of the parties  hereto  shall be binding and
inure to the benefit of the respective legal representatives, heirs, successors,
affiliates and assigns of the parties hereto.

     7. Severability.
     ----------------
     If any  provision  of this  Agreement is held to be  unenforceable  for any
reason,  it shall be  adjusted  rather than  voided,  if  possible,  in order to
achieve  the intent of the  parties to the extent  possible.  In any event,  all
other  provisions  of this  Agreement  shall be  deemed  valid  and  enforceable
notwithstanding   the  adjustment  or  elimination  of  any  such  unenforceable
provision.

     8. Counterparts.
     ----------------
     This  agreement  may be executed in  multiple  counterparts,  each of which
shall be deemed an original,  but all of which taken together  shall  constitute
one and the same Agreement.

     9. Descriptive Headings: Interpretation.
     ----------------------------------------
     The descriptive  headings in this Agreement are inserted for convenience of
reference  only and are not  intended  to be part of or to affect the meaning or
interpretation of this Agreement.

     10. Notices.
     ------------
     All notices, demands or other communications to be given or delivered under
or by reason of the provisions of this  Agreement  shall be in writing and shall
be deemed to have been duly given if (i) delivered  personally to the recipient;
(ii) sent to the  recipient  by  reputable  express  courier  services  (charges
prepaid);  (iii) mailed to the recipient by certified or registered mail, return
receipt and postage  prepaid;  or (iv) transmitted by facsimile to the recipient
with a  confirmation  copy to follow the next day to be  delivered  by overnight
carrier.  Such notices,  demands and other  communications  shall be sent to the
addresses  indicated below, or to such other address as the party may specify in
writing:

                           (a)      If to Consultant, Katz or Miller

                           Katz-Miller Ventures L.L.C.
                           710 East Ogden, Suite 630
                           Naperville, Illinois 60563
                           Attn: Jeffrey A. Miller
                           Facsimile:       (781) 823-5520

                                        4
<PAGE>

                           (b)      If to Helix

                           Helix BioMedix, Inc.
                           210 Baronne Street, suite 1004
                           New Orleans, Louisiana 70112
                           Attn: Elizabeth L. Scheer
                           Facsimile:       (504) 525-2266

     The  effective  date of such  notice  shall  be the  date  such  notice  is
personally delivered,  three days after the date of mailing if sent by certified
or registered mail, one day after the date of delivery to the overnight  courier
if sent by  overnight  courier,  or the  next  business  day  after  the date of
transmission if sent by facsimile.

     11. Confidential Information and Discoveries.
     ---------------------------------------------
     Consultant and each of the Consulting Principals agree that all information
of a technical or business nature  including but not limited to know-how,  trade
secrets,  secret  business  information,  plans,  data,  processes,  techniques,
customer information,  inventions,  discoveries,  formulae, patterns and devices
("Confidential  Information")  pertaining to the business of Helix is a valuable
business property right of Helix. Consultant and the Consulting Principals agree
that such Confidential  Information,  whether in written,  verbal or model form,
shall not be disclosed to anyone  outside the  employment  of Helix or otherwise
used by Consultant or the  Consulting  Principals for any purpose other than the
fulfillment of their  respective  obligations  under this Agreement  without the
express  authorization  of  Helix.  Confidential  Information  does not  include
information  which  Consultant or the Consulting  Principals can demonstrate (i)
has  become  generally  available  to the  public  other  than as a result  of a
disclosure  by  Consultant  or the  Consulting  Principals;  or (ii) has  become
available to Consultant or the Consulting Principals on a non-confidential basis
from a  source  other  than  Helix,  provided  such  source  is not  bound  by a
confidentiality  agreement with Helix or otherwise  prohibited from transmitting
the  information  to Consultant or the  Consulting  Principals by a contractual,
legal or fiduciary obligation.

     Any and all improvements, inventions, discoveries, formulae or processes in
any  way  related  to  Helix's  business  which  Consultant  or  the  Consulting
Principals may conceive or make during regular  working hours or otherwise shall
be sole and  exclusive  property  of Helix  and  Consultant  and the  Consulting
Principals will disclose the same to Helix and will, whenever requested by Helix
to do so (either during the term of this Agreement or  thereafter),  execute and
assign any and all  applications,  assignments or other  instruments  and do all
things  which Helix may deem  necessary  or  appropriate  in order to apply for,
obtain, maintain,  enforce and defend patents,  copyrights,  trademarks or other
forms of protection, or in order to assign or convey or otherwise make available
to  Helix  the sole and  exclusive  right,  title  and  interest  in and to said
improvements,  inventions,  discoveries,  formulae,  processes,  applications or
patents.

     No provision in this Agreement is intended to require  assignment of any of
the rights of  Consultant  or the  Consulting  Principals  in an invention if no
equipment,  supplies,  facilities, or trade secret information of Helix was used
to develop same, and if the invention was developed  entirely on Consultant's or
the  Consulting  Principals'  own time, and the invention does not relate to the
business of Helix or to Helix's actual or demonstrably  anticipated  research or
development and does not result from any work performed by the Consultant or the
Consulting Principals for Helix.

                                        5
<PAGE>

     The provisions of this Section 11 shall continue until two years  following
the execution of this Agreement.

     12. Return of Documents.
     ------------------------
     Consultant shall forthwith return and deliver to Helix and shall not retain
any original or copies of any books,  papers,  price lists,  customer contracts,
bids, customer lists, files, books of account, notebooks and other documents and
data (in  printed,  audio,  video,  electronic  or other  form)  relating to the
performance of services rendered by Consultant hereunder, all of which materials
are hereby agreed to be the property of Helix.

     13. Preliminary Recitals.
     -------------------------
     The  preliminary  recitals  set forth in the  preamble  hereto  are  hereby
incorporated and made part of this Agreement.

     14. Entire Agreement.
     ---------------------
     Except as otherwise  expressly set forth herein,  this Agreement sets forth
the entire  understanding of the parties,  and supersedes and preempts all prior
oral or written understandings and agreements with respect to the subject matter
hereof.

     15.  Governing  Law.
     --------------------
     This Agreement  shall be construed and enforced in accordance  with and all
questions concerning the construction,  validity, interpretation and performance
of this  Agreement  shall be governed by the laws of the State of  Washington as
applied to Washington residents.

     16. Representations and Warranties.
     -----------------------------------

          16.1. Helix represents and warrants that (i) it is a corporation, duly
     organized,  validly  existing  and in good  standing  under the laws of the
     state of Delaware,  has duly  authorized  the execution and  performance of
     this  Agreement,  and such execution and  performance  will not violate its
     Certificate of Incorporation, Bylaws, or any contract or agreement by which
     it is bound;  and (ii) when executed and delivered,  this Agreement will be
     enforceable in accordance with its terms, subject to bankruptcy, insolvency
     and similar laws affecting creditors' rights generally.

          16.2.  Consultant and the Consulting  Principals jointly and severally
     represent and warrant that (i)  Consultant is a limited  liability  company
     duly organized, validly existing and in good standing under the laws of the
     State of Delaware,  has duly  authorized  the execution and  performance of
     this  Agreement,  and such execution and  performance  will not violate its
     Articles of Organization, Operating Agreement, or any contract or agreement
     by which it is bound  and (ii)  this  Agreement  is valid  and  enforceable
     against  Consultant  and the Consulting  Principals in accordance  with its
     terms and each  instrument to be executed by Consultant  and the Consulting
     Principals pursuant to this Agreement will, when executed and delivered, be
     enforceable in accordance with its terms, subject to bankruptcy, insolvency
     and similar laws affecting creditors' rights generally.

     17. Compliance with Laws.
     -------------------------
     Consultant   shall  comply  with  all   federal,   state  and  local  laws,
regulations,  ordinances,  orders,  decrees,  resolutions  and other acts of any
governmental   entity,   including  but  not  limited  to  securities  laws  and
regulations  that are  applicable  to this  Agreement  and the work and services
performed or provided hereunder.

     18. Attorney's Fees.
     --------------------
     If a dispute  arises  relating to the  performance  of the  obligations  of
either Consultant (or the Consulting  Principals) or Helix pursuant to the terms
of this Agreement and legal or other costs are incurred,  the  prevailing  party
shall be  entitled to recover all  reasonable  costs  incurred in the defense or
prosecution of the claim, including court costs,  reasonable attorney's fees and
other claim-related expenses.

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

HELIX BIOMEDIX, INC.

/s/ R. Stephen Beatty                          /s/ Ralph Katz
--------------------------------               ---------------------------------
By:  R. Stephen Beatty                         Ralph Katz
President and Chief Executive Officer

KATZ-MILLER VENTURES L.L.C.

                                               /s/ Jeffrey A. Miller
--------------------------------               ---------------------------------
By:                                            Jeffrey A. Miller

                                        7
<PAGE>

                                    Exhibit A

                                 PROMISSORY NOTE

$80,800                                                      Seattle, Washington
                                                                     May 1, 2001

The undersigned,  Katz-Miller  Ventures L.L.C., Ralph Katz and Jeffrey A. Miller
(collectively  "Maker"),  promise  to pay  to  Helix  BioMedix,  Inc.  or  order
(collectively,  "Holder"),  the sum of Eighty  Thousand  Eight  Hundred  Dollars
($80,800) including accrued interest,  all as hereinafter  provided and upon the
following agreements, terms and conditions.

                                  Interest Rate

     The entire  principal  balance of this Note shall bear simple interest from
the date of this Note until  this Note is fully paid at the rate of six  percent
(5.985%) per annum.

                                    Payments

     All  interest  to accrue  under the term of this note shall be  retained by
Holder  at the  initial  disbursement  of funds  under  this  Note.  The  entire
principal  balance  of this Note shall be due and  payable on or before  July 1,
2001, and may be prepaid at any time without penalty.

     The principal balance may be paid in whole or in part through the surrender
and redemption of shares of Helix Common Stock,  such securities being valued at
the  closing  trade on the day such  shares are  tendered  in  repayment  of the
principal balance.

                                Place of Payment

     All  payments  pursuant to this Note shall be made to Holder at 210 Baronne
Street,  Suite 1004,  New Orleans,  Louisiana  70112,  or such other  address as
Holder may hereafter designate from time to time.

                            Default; Default Interest

     If Maker fails to pay this Note in strict  accordance with its terms, or if
Maker otherwise defaults under this Note, this Note shall bear interest from the
date of default by Maker until the default is fully cured at a default  interest
rate ("Default Rate") equal to sixteen percent (16%) per annum.  Notwithstanding
the foregoing,  if Maker defaults as described in this paragraph,  at the option
of Holder,  this entire Note shall become  immediately  due and  payable.  After
acceleration, this Note shall bear interest at the Default Rate.

                                        8
<PAGE>

                                 Applicable Law

     This Note shall be construed in accordance with and governed by the laws of
the State of Washington.

                             Successors and Assigns

     This Note  shall  inure to the  benefit  of  Holder  and any  successor  or
assignee  of  Holder.  This  Note  shall  be  binding  upon  Maker  and  Maker's
successors, assignees, personal representatives and heirs.

                               Costs and Expenses

     Maker shall pay all costs and expenses which Holder may incur in connection
with this Note because of Maker's default,  including,  without limitation,  the
following costs: (a) reasonable  attorneys' fees for legal services  incurred by
Holder in connection with any default by Maker relating to any  determination of
any rights or remedies of Holder;  and (b)  reasonable  attorneys'  fees for any
actions, proceedings, reviews or appeals therefrom which Holder may institute or
in which Holder may appear or participate.

                                    Liability

     Each person  signing this Note shall be jointly and  severally  liable with
respect to this Note and hereby waives demand,  presentment for payment,  notice
of  intention  to  accelerate  the  maturity,  protest and notice of protest and
nonpayment.  Each such party hereby  further  agrees that none of the  following
events (with or without notice) shall diminish,  impair or otherwise  affect the
liability of any such party with respect to this Note: (a) any  modification  or
extension  of the terms of this Note;  or (b) any  release  of any party  liable
pursuant to this Note.

ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY,  EXTEND CREDIT, OR TO FORBEAR
FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.

Katz-Miller Ventures L.L.C.                         /s/ Jeffrey A. Miller
                                                    ----------------------------
                                                    Jeffrey A. Miller

By:
   ----------------------------------               /s/ Ralph Katz
                                                    ----------------------------
    Its:                                            Ralph Katz
        -----------------------------

                                        9AMENDED AND RESTATED CONSULTING AGREEMENT

     This AMENDED AND RESTATED CONSULTING AGREEMENT (this "Agreement"), dated as
of May __, 2001, is entered into by and among HELIX  BIOMEDIX,  INC., a Delaware
corporation  ("Helix"),  and DUNSFORD HILL CAPITAL PARTNERS,  INC., a California
corporation ("Consultant").

                              PRELIMINARY RECITALS

     WHEREAS,  Helix and  Consultant  entered  into a  consulting  agreement  on
October 27, 2000 (the "Prior Agreement"),  containing provisions relating to the
services to be provided to Helix by consultant and the  compensation  to be paid
by Helix to Consultant; and

     WHEREAS,  Helix  and  Consultant  desire  to amend  and  restate  the terms
governing the relationship between the parties; and

     WHEREAS,  Helix is a publicly owned biotechnology  company which is engaged
in (i) developing,  testing,  patenting,  and manufacturing  synthetic bioactive
peptides (small proteins) having  applications in the  pharmaceutical and health
care  fields  and (ii)  licensing  its  proprietary  technology  and in  seeking
strategic corporate alliances for further development and  commercialization  of
its technology (collectively, the "Business"); and

     WHEREAS, Helix desires outside professional  assistance in various areas of
strategic and financial planning and believes that Consultant has experience and
expertise that will be valuable to Helix; and

     WHEREAS, Helix desires to engage Consultant as a consultant, and Consultant
desires to perform consulting services for Helix, under the terms and conditions
set forth herein; and

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

     1. Novation.
     ------------
     Except as provided in sections 2.5(a) and 16 below,  the Prior Agreement is
hereby extinguished and replaced in its entirety by this Agreement.

     2. Consulting.
     --------------

     2.1 Consulting Services.
     ------------------------
     Helix  hereby  engages  Consultant,  and  Consultant  hereby  accepts  such
engagement  and agrees to serve as consultant to Helix  concerning  the Business
for a  period  of one  year,  beginning  on the  date  hereof  (the  "Consulting
Period").  In connection  with the performance of its duties,  Consultant  shall
cause Consultant's duties hereunder to be performed primarily by Randall Caudill
(the "Consulting Principal").

                                        1
<PAGE>

     2.2 Duties.
     -----------
     Consultant  shall  faithfully  and to the best of its  ability  perform the
duties  assigned  by the Board of  Directors  of Helix and shall serve under the
direction of the President and Chief  Executive  Officer of Helix.  These duties
shall include, without limitation, the following duties:

               (a)  strategic planning,

               (b)  assisting  Helix in developing and  monitoring  business and
                    science plans,

               (c)  assisting Helix in seeking additional financing,

               (d)  assist Helix with efforts to enhance shareholder value, and

               (e)  reporting  on a  quarterly  basis  Consultant's  progress in
                    respect of duties assigned by Board, in a format  reasonably
                    requested by the Chief Executive Officer of Helix.

     2.3 Relationship of Parties.
     ----------------------------
     Consultant shall be deemed an independent contractor and not an employee of
Helix.  All  letterhead,  business  cards  and  promotional  materials  used  or
distributed by Consultant shall present Consultant as a business  consultant to,
and not an employee or principal of, Helix.  Consultant shall be responsible for
all taxes associated with payment hereunder, including but not limited to income
taxes and social security taxes.

     2.4 Expenses.
     -------------
     All ordinary and reasonable  out-of-pocket  expenses incurred by Consultant
solely as a result of the  performance  of  Consultant's  services  as  assigned
pursuant to Section 2.2 above,  including  reasonable travel expenses,  shall be
reimbursed to Consultant by Helix, provided that Consultant shall have submitted
an invoice  together  with other  documentation  of such  expenses  as Helix may
reasonably require.

     2.5 Compensation.
     -----------------

          (a) Consultant's current entitlement to options or warrants to acquire
     Helix stock at $1.50 per share,  not including  any  potential  entitlement
     contingent upon triggering events,  shall survive this Novation and vest in
     accordance with the provisions of the Prior Agreement.

          (b) As  consideration  for the  services to be rendered by  Consultant
     hereunder,  its  agreement  not to compete with Helix and its  agreement to
     promote services for and through Helix during the Consulting Period,  Helix
     hereby grants to Consultant warrants  ("Warrants") to purchase an aggregate
     of 120,000 shares of the Helix's common stock at an exercise price of $1.50
     per share,  during that period  commencing  on the date first above written
     and ending on September  30, 2011,  when any and all  unexercised  Warrants
     granted herein shall expire and terminate.

                                        2
<PAGE>

          (c) In the  event of any  change in the  outstanding  shares of common
     stock by reason of any stock dividend or split,  recapitalization,  merger,
     consolidation, combination or exchange of shares or other similar corporate
     change,  the maximum  aggregate  number and class of shares of common stock
     which may be  purchased  by  Consultant  pursuant to the  Warrants  will be
     equitably adjusted for such event.

     2.6 Restricted Stock
     --------------------

          (a) Consultant  recognizes and  understands  that neither the Warrants
     nor the  shares  of Common  Stock of Helix to be  purchased  by  Consultant
     pursuant  to  the  Warrants   (collectively,   the  "Securities")  will  be
     registered  under the Securities Act of 1933  ("Securities  Act"), or under
     the securities laws of any state (the "securities laws").

          (b)  Consultant  represents  and  warrants  that  (i)  the  Consulting
     Principal has knowledge and experience in business, finance, securities and
     investments,  such experience being based on actual participation  therein,
     (ii) the Consulting Principal is capable of evaluating the merits and risks
     of an  investment  in the  Securities  and the  suitability  thereof  as an
     investment  therefor,  (iii) the Consulting Principal is an experienced and
     sophisticated  investor in investments,  including  investments  similar to
     that  of the  Securities,  (iv)  Securities  to be  acquired  by it will be
     acquired  solely  for  investment  and not  with a view  toward  resale  or
     redistribution  in violation of the securities laws, and no assurances have
     been made  concerning the future results of Helix or as to the value of the
     Securities,  (v)  it  (and  the  Consulting  Principal)  is an  "accredited
     investor"  within the meaning of  Regulation  D  promulgated  by the United
     States Securities and Exchange  Commission (the  "Commission")  pursuant to
     the  Securities  Act,  and  (vi)  the  Consulting  Principal  is  the  sole
     shareholder of Consultant.

          (c)  Consultant  has  consulted  with its own counsel in regard to the
     securities laws and is fully aware (i) of the circumstances  under which it
     is required to hold the Securities, (ii) of the limitations on the transfer
     or disposition  of the  Securities,  and (iii) that the securities  must be
     held  indefinitely  unless the  transfer  thereof is  registered  under the
     securities laws or an exemption from registration is available.

          (d)  Consultant  the  Consulting  Principal have been furnished with a
     copy of the Annual Report on Form 10-KSB of Helix filed with the Commission
     under the Securities Exchange Act of 1934, as amended,  for the fiscal year
     ended  December  31,  2000.  Helix has made  available  to  Consultant  the
     opportunity to ask questions and receive  answers  concerning the terms and
     conditions of the transactions contemplated by this Agreement and to obtain
     any additional  information which they possess or could reasonably  acquire
     the purpose of  verifying  the  accuracy of the  information  furnished  to
     Consultant  as set  forth  herein or for the  purpose  of  considering  the
     transactions  contemplated  hereby. Helix has offered to, and agrees during
     the term of this  Agreement,  make available to Consultant  upon request at
     any time all exhibits  filed by Helix with the Commission as part of any of
     the reports filed therewith.

     2.7 Company Information.
     ------------------------

     In connection with Consultant's  engagement,  Helix will furnish Consultant
and/or the Consulting  Principal  with all  information  concerning  Helix which
Consultant  and/or the Consulting  Principal  shall  reasonably  request.  Helix
represents and warrants that all such information  concerning Helix will be true
and accurate in all material  respects and will not contain any untrue statement

                                        3
<PAGE>

of a material fact or omit to state a material  fact  necessary in order to make
statements therein not misleading in light of the circumstances under which such
statements  are made.  Helix  acknowledges  and agrees that  Consultant  and the
Consulting Principal will be using and relying upon such information supplied by
Helix and its officers,  agents and others concerning Helix without  independent
investigation or verification thereof or independent  appraisal by Consultant or
the Consulting Principal.

     2.8 Restrictive Covenant.
     -------------------------

     Except as otherwise  consented to in writing by Helix,  such consent  being
not unreasonably withheld, during the term of this Agreement and for a period of
two years  thereafter,  neither  Consultant nor the Consulting  Principal  shall
either as an  individual  on his own  account;  as a  partner,  joint  venturer,
consultant,  agent,  salesman  for  any  person;  as  an  officer,  director  or
stockholder  (other  than  a  beneficial  holder  of  not  more  than  5% of the
outstanding  voting  stock of a company  having at least 250  holders  of voting
stock) of a corporation; or otherwise, directly or indirectly:

          (a) enter into or engage in any  business or consult with any business
     or entity directly competitive with Helix anywhere in the world;

          (b)  solicit or attempt to solicit  any of Helix  customers  with whom
     Consultant  has had contact as a  Consultant  or employee of Helix with the
     intent or purpose to perform for such customer the same or similar services
     which Consultant performed for such customer during the term of his service
     hereunder or employment by Helix;

          (c) employ or solicit, or attempt to employ or solicit, for himself or
     any third party, the employment of any of Helix's employees; or

          (d) induce or attempt to induce any  employee,  consultant or agent of
     Helix to discontinue services to Helix.

     Notwithstanding  the above, Helix acknowledges and agrees that Consultant's
and   Consulting    Principal's    existing    relationships    with   Northwest
Biotherapeutics, Inc. and VaxGen, Inc. are not in violation of this Section 2.8.
The  provisions of this  subsection  2.8 shall survive the  termination  of this
Agreement.

     3. Assignment.
     --------------
     No party  hereto may assign or  delegate  any of its rights or  obligations
hereunder without the prior written consent of the other party hereto. Except as
otherwise  expressly provided herein, all covenants and agreements  contained in
this Agreement by or on behalf of any of the parties hereto shall be binding and
inure to the benefit of the respective legal representatives,  heirs, successors
affiliates and assigns of the parties hereto, whether so expressed or not.

     4. Severability.
     ----------------
     If any  provision  of this  Agreement is held to be  unenforceable  for any
reason,  it shall be  adjusted  rather than  voided,  if  possible,  in order to
achieve  the intent of the  parties to the extent  possible.  In any event,  all
other  provisions of this Agreement shall be deemed valid and enforceable to the
full extent.

     5. Counterparts.
     ----------------
     This  Agreement  may be executed in  multiple  counterparts,  each of which
shall be deemed an original,  but all of which taken together  shall  constitute
one and the same Agreement.

                                        4
<PAGE>

     6. Descriptive Headings: Interpretation.
     ----------------------------------------
     The descriptive  headings in this Agreement are inserted for convenience of
reference  only and are not  intended  to be part of or to affect the meaning or
interpretation  of this  Agreement.  The  use of the  word  "including"  in this
Agreement shall be by way of example rather than by limitation.

     7. Notices.
     -----------
     All notices, demands or other communications to be given or delivered under
or by reason of the provisions of this  Agreement  shall be in writing and shall
be deemed to have been duly given if (i) delivered  personally to the recipient,
(ii)  sent to the  recipient  by  reputable  express  courier  service  (charges
prepaid) or mailed to the  recipient  by certified or  registered  mail,  return
receipt and postage prepaid,  or (iii)  transmitted by telecopy to the recipient
with a  confirmation  copy to follow the next day to be  delivered  by overnight
carrier.  Such  notices,  demands and other  communication  shall be sent to the
addresses indicated below:

                  (a)      If to Consultant:

                           Dunsford Hill Capital Partners, Inc.
                           1080 Chestnut Street, Apt. 16-A
                           San Francisco, California  94109
                           Attn:  Mr. Randall Caudill

                  (b)      If to Helix:

                           Helix Biomedix, Inc.
                           22122 20th Ave. SE
                           Bothell, WA  98021
                           Attn:  Chief Executive Officer

or to such  other  address  or to the  attention  of such  other  person  as the
recipient party has specified by prior written notice to the sending party.  The
effective  date of such notice  shall be (w) the date such notice is  personally
delivered,  (x) three days after the date of  mailing  if sent by  certified  or
registered mail, (y) one day after date of delivery to the overnight  courier if
sent by  overnight  courier  or (z) the  next  business  day  after  the date of
transmission by telecopy or e-mail.

     8. Confidential Information and Discoveries.
     --------------------------------------------
     Consultant and the  Consulting  Principal  agree that all  information of a
technical or business  nature such as know-how,  trade secrets,  secret business
information,   plans,  data,   processes,   techniques,   customer  information,
inventions,  discoveries,  formulae,  patterns,  devices,  etc.,  ("Confidential
Information")  pertaining  to the  business  of Helix,  is a  valuable  business
property right of Helix.  Consultant and the  Consulting  Principals  agree that
such Confidential  Information,  whether in written, verbal or model form, shall
not be disclosed to anyone  outside the employment of Helix or otherwise used by
Consultant or the Consulting Principal for any purpose other than fulfillment of
their  respective   obligations  under  this  Agreement,   without  the  express
authorization of Helix.  Confidential  Information does not include  information
which  Consultant or the  Consulting  Principal can  demonstrate  (i) has become
generally  available  to the public  other than as a result of a  disclosure  by
Consultant or the Consulting Principal,  (ii) has become available to Consultant
or the Consulting Principal on a non-confidential basis from a source other than
Helix,  provided such source is not bound by a  confidentiality  agreement  with
Helix or otherwise prohibited from transmitting the information to Consultant or
the Consulting Principal by a contractual, legal or fiduciary obligation.

                                        5
<PAGE>

     Any and all improvements, inventions, discoveries, formulae or processes in
any way related to Helix's business which Consultant or the Consulting Principal
may conceive or make during his regular  working hours or otherwise shall be the
sole and exclusive property of Helix and Consultant and the Consulting Principal
will disclose the same to Helix and will,  whenever  requested by Helix to do so
(either  during the terms of this Agreement or  thereafter),  execute and assign
any and all applications, assignments and/or other instruments and do all things
which Helix may deem  necessary or  appropriate  in order to apply for,  obtain,
maintain, enforce and defend patents,  copyrights,  trademarks or other forms of
protection,  or in order to assign and convey or  otherwise  make  available  to
Helix  the  sole  and  exclusive  right,  title  and  interest  in and  to  said
improvements,  inventions,  discoveries,  formulae,  processes,  applications or
patents.

     No provision in this Agreement is intended to require  assignment of any of
the rights of  Consultant  or the  Consulting  Principal  in an  invention if no
equipment,  supplies, facilities, or trade secret information of Helix was used,
and the  invention  was  developed  entirely on the  Consultant's  or Consulting
Principal's own time; and the invention does not relate to the business of Helix
or to Helix's actual or demonstrably  anticipated  research or development;  and
does not result from any work  performed  by the  Consultant  or the  Consulting
Principal for Helix.

     The  provisions  of this Section 8 shall  survive the  termination  of this
Agreement.

     9. Return of Documents.
     -----------------------
     Upon the  termination  of this Agreement for any reason,  Consultant  shall
forthwith  return and  deliver to Helix and shall not  retain  any  original  or
copies of any books, papers, price lists or customer contracts, bids or customer
lists,  files,  books of account,  notebooks  and other  documents  and data (in
printed,  audio, video, electronic or other form) relating to the performance of
services  rendered by Consultant  hereunder,  all of which  materials are hereby
agreed to be the property of Helix.

     10. Preliminary Recitals.
     -------------------------
     The  Preliminary  Recitals  set forth in the  preamble  hereto  are  hereby
incorporated and made part of this Agreement.

     11. Entire Agreement.
     ---------------------
     Except as otherwise  expressly set forth herein,  this Agreement sets forth
the entire  understanding of the parties,  and supersedes and preempts all prior
oral or written understandings and agreements with respect to the subject matter
hereof.

     12. Governing Law.
     ------------------
     This Agreement shall be construed and enforced in accordance  with, and all
questions concerning the construction,  validity, interpretation and performance
of this Agreement shall be governed by, the laws of the State of Delaware.

     13. Representations and Warranties.
     -----------------------------------

     13.1 Helix  represents and warrants that: (i) Helix is a corporation,  duly
organized,  validly existing and in good standing under the laws of the State of
Delaware,  has duly  authorized the execution and performance of this Agreement,
and  such   execution  and   performance   will  not  violate  its  Articles  of

                                        6
<PAGE>

Incorporation,  Bylaws,  or any contract or agreement by which it is bound;  and
(ii) this Agreement is valid and  enforceable  against Helix in accordance  with
its  terms,  and  each  instrument  to be  executed  by Helix  pursuant  to this
Agreement will,  when executed and delivered,  be enforceable in accordance with
its  terms,  subject  to  bankruptcy,  insolvency  and  similar  laws  affecting
creditors' rights generally.

     13.2  Consultant   represents  and  warrants  that:  (i)  Consultant  is  a
corporation duly organized, validly existing and in good standing under the laws
of the State of California, has duly authorized the execution and performance of
this Agreement, and such execution and performance will not violate its Articles
of Incorporation,  bylaws or any contract or agreement by which it is bound; and
(ii)  this  Agreement  is  valid  and  enforceable  against  Consultant  and the
Consulting  Principal in accordance  with its terms,  and each  instrument to be
executed by Consultant and the Consulting  Principal  pursuant to this Agreement
will, when executed and delivered,  be enforceable in accordance with its terms,
subject to bankruptcy,  insolvency and similar laws affecting  creditors' rights
generally.

     14. Compliance with Laws.
     -------------------------
     Consultant   shall  comply  with  all  federal,   state,  and  local  laws,
regulations,  ordinances,  orders, decrees,  resolutions,  and other acts of any
governmental  entity,  including,  but  not  limited  to,  securities  laws  and
regulations  that are  applicable  to this  Agreement  and the work and services
performed or provided hereunder.

     15. Attorney's Fees.
     --------------------
     If a dispute  arises  relating to the  performance  of the  obligations  of
either  Consultant (or the Consulting  Principal) or Helix pursuant to the terms
of this Agreement and legal or other costs are incurred,  the  prevailing  party
shall be  entitled to recover all  reasonable  costs  incurred in the defense or
prosecution of the claim, including court costs, reasonable attorney's fees, and
other claim-related expenses.

     16. Indemnification.
     --------------------
     Helix shall (A) indemnify  Consultant  and  Consulting  Principal  (jointly
and/or  severally,  the  "Indemnified  Parties"),  and hold them harmless to the
fullest  extent  permitted  by  law  against  any  losses,  claims,  damages  or
liabilities  to which the  Indemnified  Parties may become subject in connection
with (i) their use of information that is inaccurate in any respect (as a result
of  misrepresentation,  omission,  failure  to  update,  or  otherwise)  that is
provided  to  Indemnified  Parties  by  Helix,  its  representatives,  agents or
advisers,  regardless  of whether the  Indemnified  Parties  knew or should have
known of such  inaccuracy,  or (ii) any other aspect of rendering such services,
in the  case  of  each of  clauses  (i) and  (ii)  above  unless  it is  finally
judicially determined that such losses,  claims, damages or liabilities relating
thereto arise only out of the gross  negligence or willful  misconduct of any of
the Indemnified Parties, and (B) reimburse  Indemnified Parties for any legal or
other expenses  reasonably  incurred by them in connection  with  investigating,
preparing to defend or defending  any  lawsuits,  claims,  or other  proceedings
arising in any manner out of or in connection  with their  performance  of their
duties  pursuant to the  engagement  contemplated  herein,  unless it is finally
judicially determined that the losses,  claims,  damages or liabilities relating
thereto  arise only out of the gross  negligence  or willful  misconduct  of the
Indemnified  Parties. If, for any reason, the foregoing indemnity is unavailable
to the Indemnified  Parties or is  insufficient to hold the Indemnified  Parties
harmless  (other  than  in  the  event  that  the  losses,  claims,  damages  or
liabilities  relating  thereto arise only out of the gross negligence or willful
misconduct  of the  Indemnified  Parties),  then Helix shall  contribute  to the
amount  paid or  payable  by  Indemnified  Parties  as a result of such  claims,

                                        7
<PAGE>

liabilities,  losses,  damages, or expenses in such proportion as is appropriate
to reflect not only the relative  benefits received by Helix on the one hand and
the Indemnified  Parties on the other,  but also the relative fault of Helix and
the   Indemnified   Parties,   as   well   as  any   equitable   considerations.
Notwithstanding the provisions of this Agreement,  the aggregate contribution of
the Indemnified Parties to all claims, liabilities, losses, damages and expenses
shall not exceed the amount of the fees actually received by Consultant pursuant
to its  engagement  by Helix.  It is hereby  further  agreed  that the  relative
benefits to Helix on the one hand and the Indemnified  Parties on the other hand
with respect to the transactions contemplated in the engagement referenced above
shall be  deemed  to be in the same  proportion  as (i) the  total  value of the
transaction  bears to (ii) the fees  paid to  Consultant  with  respect  to such
transactions.   Helix  agrees  that  the   indemnification   and   reimbursement
commitments  set  forth  in  this  Agreement  shall  apply  whether  or not  the
Indemnified   Parties  are  a  formal  party  to  any  such  lawsuits  or  other
proceedings,  that the  Indemnified  Parties  are  entitled  to retain  separate
counsel  of their  choice in  connection  with any of the  matters to which such
commitments  relate, that such commitments shall be in addition to any liability
that Helix may have to the Indemnified  Parties at common law or otherwise,  and
that such commitments shall extend upon the terms set forth in this Agreement to
any  controlling  person,  director,  officer,  employee,  agent or affiliate of
Indemnified  Parties  and  shall  survive  any  termination  of this  Agreement;
provided   that  any  such  claim  arising  other  than  as  a  result  of  this
indemnification  procedure shall serve as a set-off against any claim hereunder.
Notwithstanding   the  provisions  of  Section  1  above,  the   indemnification
provisions of the Prior Agreement shall survive this novation and the provisions
of this Section 16 shall serve to supplement the provisions therein.

     17. Termination.
     ----------------
     This  Agreement may be  terminated  by either party upon 30 days'  advanced
written notice to the other party. Any securities which have not vested pursuant
to the retained  provisions of the Prior  Agreement or have not  otherwise  been
earned pursuant to this Agreement shall automatically be terminated and canceled
and Helix  shall have no further  obligation  to  Consultant  or the  Consulting
Principal in respect of such securities. Subsection 2.8 and Sections 8 and 16 of
this Agreement shall survive the expiration or termination of this Agreement.

     18. Activities of Consultant.
     -----------------------------
     In connection with this engagement, it is understood that Consultant and/or
the Consulting  Principal may identify and facilitate  contact between Helix and
corporations  or  individuals  that may  potentially  become the  Helix's  joint
venture partners,  licensees,  commercial  collaborators,  agents, directors, or
investors. To the extent that Consultant and/or the Consulting Principal contact
corporations  or individuals  as potential  joint venture  partners,  licensees,
commercial collaborators,  agents,  directors, or investors,  Helix acknowledges
that  Consultant's  and/or the Consulting  Principal's sole role is to initially
contact  such   potential   joint  venture   partners,   licensees,   commercial
collaborators,  agents,  directors, or investors and refer any resulting contact
to  Helix  or  its  designated  agent(s).  Accordingly,  Consultant  and/or  the
Consulting  Principal  shall have no  liability  to Helix or any other person or
party resulting from their so acting in connection with initiating such contacts
referenced  herein.  It  is  explicitly  agreed  that  Consultant's  and/or  the
Consulting  Principal's  role under this  engagement  will not include,  without
limitation:   performing  due  diligence;   verifying  information  provided  to
Consultant an/or the Consulting  Principal or, directly or indirectly,  to other
persons or parties pursuant to contacts made by Consultant and/or the Consulting
Principal as contemplated by this paragraph;  preparing any offering  memoranda;
or,   negotiating   or  structuring   any   agreements,   licenses,   commercial
collaborations, or investments by or with third parties.

                                        8
<PAGE>

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

                                                          HELIX BIOMEDIX, INC.

                                       By: /s/ R. Stephen Beatty
                                           -------------------------------------
                                           R. Stephen Beatty, President and
                                           Chief Executive Officer

                                           DUNSFORD HILL CAPITAL PARTNERS, INC.

                                       By: /s/ Randall Caudill
                                           -------------------------------------
                                           Randall Caudill, President

                                           CONSULTING PRINCIPAL

                                           /s/ Randall Caudill
                                           -------------------------------------
                                           Randall Caudill

                                        9

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