Document:

OPTION AGREEMENT

THIS AGREEMENT made as of the 28th day of September, 2001

BETWEEN:
                          Whitegold Natural Resource Corp.,
                          ---------------------------------
                          of Suite 612, 475 Howe Street, Vancouver,
                          British Columbia, V6C 2B3

                          (the "Optionor")
                                                               OF THE FIRST PART

AND:

                          Big Cat Mining Corporation,
                          ---------------------------
                          of 7928 Rowland Road, Edmonton, Alberta, T6A 3W1

                          (the "Optionee")
                                                              OF THE SECOND PART

WHEREAS:

A. The  Optionor  is the owner of certain  mineral  claims  located in the Liard
Mining Division of British Columbia (the "Property").

B. The  Optionor  has agreed to grant an  exclusive  option to the  Optionee  to
acquire an interest in and to the Property, subject to the Royalty, on the terms
and conditions hereinafter set forth;

NOW THEREFORE  THIS  AGREEMENT  WITNESSES  that in  consideration  of the sum of
$20.00 now paid by the Optionee to the Optionor  (the receipt of which is hereby
acknowledged), the parties agree as follows:

DEFINITIONS
-----------

1.   For the purposes of this  Agreement,  the following words and phrases shall
     have the following meanings, namely:

     (a)  Commencement of Commercial Production" means:

          (i)  if a Mill is located on the Property, the last day of a period of
               40 consecutive days in which, for not less than 30 days, the Mill
               processed  ore from  the  Property  at 60  percent  of its  rated
               concentrating capacity; or

          (ii) if no Mill is located on the  Property,  the last day of a period
               of 30 consecutive days during which ore has been shipped from the
               Property on a reasonably regular basis for the purpose of earning
               revenues,

          but no period of time during which ore or  concentrate is shipped from
          the Property for testing purposes,  and no period of time during which
          milling  operations are undertaken as initial tune-up,  shall be taken
          into account in  determining  the date of  Commencement  of Commercial
          Production;

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                                        2

     (b)  "Exploration Expenditures" means the sum of:

          (i)  all costs of acquisition  and  maintenance  of the Property,  all
               exploration and development  expenditures and all other costs and
               expenses  of  whatsoever  kind or  nature  including  those  of a
               capital  nature,  incurred or  chargeable  by the  Optionee  with
               respect to the  exploration  and  development of the Property and
               the placing of the Property into commercial production, and

          (ii) as compensation for general overhead  expenses which the Optionee
               will incur,  an amount  equal to 10% of all  amounts  included in
               subparagraph  (i) in each year except  costs of fixed  assets and
               costs and  expenditures  paid by the Optionee  under any contract
               involving  payments by it in excess of $100,000 in the year,  and
               5% of all other  amounts  included  in  subparagraph  (i) in each
               year;

     (c)  "Option"  means the option to acquire a 50% undivided  interest in and
          to the Property as provided in this Agreement;

     (d)  "Option  Period"  means the period  during the term of this  Agreement
          from  the  date  hereof  to and  including  the  date of  exercise  or
          termination of the Option;

     (e)  "Property"  means the mineral claims described in Schedule "A" and all
          mining leases and other mining interests derived from any such claims.
          Any reference to any mineral claim comprised in the Property  includes
          any mineral  leases or other  interests  into which such mineral claim
          may have been converted;

     (f)  "Property   Rights"   means   all   licenses,    permits,   easements,
          rights-of-way,  certificates and other approvals obtained by either of
          the  parties  either  before or after the date of this  Agreement  and
          necessary for the exploration and development of the Property,  or for
          the purpose of placing the  Property  into  production  or  continuing
          production;

     (g)  "Royalty" means the amount of royalty from time to time payable to the
          Optionor hereunder and as defined in Schedule "B" attached hereto.

REPRESENTATIONS AND WARRANTIES OF THE OPTIONOR
----------------------------------------------

2. (a) The Optionor represents and warrants to the Optionee that:

          (i)  it is legally  entitled  to hold the  Property  and the  Property
               Rights and will  remain so  entitled  until all  interest  of the
               Optionor in the  Property  (other than the  Royalty,  if any) has
               been duly transferred to the Optionee as contemplated hereby;

          (ii) it is and at the time of each transfer to the Optionee of mineral
               claims  comprised in the Property he will be, the recorded holder
               and beneficial owner of all of the mineral claims  comprising the
               Property  free and  clear of all  liens,  charges  and  claims of
               others,  except as noted on Schedule "A", and no taxes or rentals
               are due;

          (iii)the mineral  claims  comprised in the Property have been duly and
               validly  located  and  recorded  pursuant  to  the  laws  of  the
               jurisdiction  in which the  Property  is situate  and,  except as
               specified in Schedule "A" and  accepted by the  Optionee,  are in
               good  standing  with  respect  to  all  filings,   fees,   taxes,
               assessments,  work  commitments  or other  conditions on the date
               hereof and until the dates set opposite the  respective  names in
               Schedule "A";
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                                        3

          (iv) there  is no  adverse  claim  or  challenge  against  or  to  the
               ownership of or title to any of the mineral claims comprising the
               Property, nor to the knowledge of the Optionor is there any basis
               therefore,  and there are no outstanding agreements or options to
               acquire or purchase the Property or any portion  thereof,  and no
               person  other  than  the  Optionor,  pursuant  to the  provisions
               hereof,   has  any  royalty  or  other  interest   whatsoever  in
               production from any of the mineral claims comprising the Property
               other than as set out in Schedule "A";

          (v)  no  proceedings  are pending  for, and the Optionor is unaware of
               any basis for the institution of any  proceedings  leading to the
               placing of the  Optionor  in  bankruptcy  or subject to any other
               laws governing the affairs of insolvent persons.

     (b)  The  representations  and  warranties  contained  in this  section are
          provided for the exclusive benefit of the Optionee and a breach of any
          one or more  thereof may be waived by the Optionee in whole or in part
          at any time  without  prejudice  to its rights in respect of any other
          breach of the same or any other  representation  or warranty,  and the
          representations and warranties contained in this section shall survive
          the execution hereof.

REPRESENTATIONS AND WARRANTIES OF THE OPTIONEE
----------------------------------------------

3. (a) The Optionee represents and warrants to the Optionor that:

          (i)  it has been duly incorporated and validly exists as a corporation
               in  good  standing  under  the  laws  of  its   jurisdiction   of
               incorporation;

          (ii) it is  lawfully  authorized  to  hold  mineral  claims  and  real
               property under the laws of the jurisdiction in which the Property
               is situate;

          (iii)it  has  duly  obtained  all  corporate  authorizations  for  the
               execution  of this  Agreement  and for  the  performance  of this
               Agreement by it and the  consummation of the  transaction  herein
               contemplated  will not  conflict  with or result in any breach of
               any covenants or agreements  contained in or constitute a default
               under or  result in the  creation  of any  encumbrance  under the
               provisions  of the  Articles or the  constating  documents of the
               Optionee  or  any   shareholders'   or   directors'   resolution,
               indenture,  agreement or other instrument whatsoever to which the
               Optionee is a party or by which it is bound or to which it or the
               Property may be subject; and

          (iv) no proceedings are pending for and the Optionee is unaware of any
               basis for the  institution  of any  proceedings  leading  to, the
               dissolution  or winding up of the  Optionee or the placing of the
               Optionee in bankruptcy or subject to any other laws governing the
               affairs of insolvent corporations.

     (b)  The  representations  and  warranties  contained  in this  section are
          provided for the exclusive benefit of the Optionor and a breach of any
          one or more  thereof may be waived by the Optionor in whole or in part
          at any time  without  prejudice  to its rights in respect of any other
          breach of the same or any other  representation  or  warranty  and the
          representations and warranties contained in this section shall survive
          the execution hereof.

<PAGE>
                                        4

GRANT AND EXERCISE OF OPTION
----------------------------

4.   (a) The Optionor hereby grants to the Optionee the sole and exclusive right
     and option to acquire a 50% undivided  interest in and to the Property free
     and clear of all charges, encumbrances and claims, except for those set out
     in Schedule "A".

     (b)  The  Option  shall  be  fully  exercised  by  the  Optionee  incurring
          Exploration Expenditures of $3,500,000 on the Property as follows:

          (A)  $50,000 on or before March 1, 2003;

          (B)  a further $100,000 on or before December 31, 2003;

          (C)  a further $350,000 on or before December 31, 2004.

          (D)  a further $1,000,000 on or before December 31, 2005; and

          (E)  a further $2,000,000 on or before December 31, 2006.

     In the event that the Optionee  spends,  in any of the above periods,  less
     than the specified sum, it may pay the Optionor the difference  between the
     amount it actually  spent and the  specified  sum before the expiry of that
     period in full  satisfaction of the  expenditures  specified.  In the event
     that the Optionee spends,  in any period,  more than the specified sum, the
     excess shall be carried forward and applied to the  expenditures to be made
     in succeeding periods.

     (c)  If and when the  Option has been  exercised,  a 50%  undivided  right,
          title and interest in and to the  Property  shall vest in the Optionee
          free and clear of all charges, encumbrances and claims, except for the
          obligations  of the Optionee to pay the Optionor the Royalty,  if any,
          and to give the Optionor a right of first refusal on any mineral claim
          comprising  a part  of the  Property  which  the  Optionee  wishes  to
          abandon.

     (d)  In the event that the Optionee  does not fully  exercise the Option by
          fulfilling  the  terms  set  out  in  subparagraph  (b)  by  the  10th
          anniversary  of this  Agreement  the Option and this  Agreement  shall
          terminate.

RIGHT OF ENTRY
--------------

5.   Throughout  the Option  Period,  the directors and officers of the Optionee
     and its servants,  agents and independent contractors,  shall have the sole
     and exclusive right in respect of the Property to:

     (a)  enter thereon;

     (b)  have exclusive and quiet possession thereof;

     (c)  do such prospecting, exploration, development and other mining work as
          the Optionee in its sole discretion may determine advisable;

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                                        5

     (d)  bring  upon  and  erect  upon  the  Property  such  buildings,  plant,
          machinery and equipment as the Optionee may deem advisable; and

     (e)  remove and dispose of  reasonable  quantities  of ores,  minerals  and
          metals for the purposes of obtaining assays or making other tests.

TRANSFER OF PROPERTY
--------------------

6.   (a) Concurrently  with the execution of this Agreement,  the Optionor shall
     deliver to the Optionee duly executed transfers of the appropriate interest
     in the Property  which shall be acquired by the Optionee  upon  exercise of
     the Option.

     (b)  The Optionee shall be entitled to record all transfers contemplated at
          its own cost with the  appropriate  government  office to effect legal
          transfer  of  such  interest  in the  Property  into  the  name of the
          Optionee,  provided that the Optionee  shall hold such interest in the
          Property  subject to the terms of this Agreement,  it being understood
          that the  transfer  of such legal title to the  Optionee  prior to the
          exercise of the Option is for administrative convenience only.

OBLIGATIONS OF THE OPTIONEE DURING OPTION PERIOD
------------------------------------------------

7.   During the Option Period, the Optionee shall:

     (a)  maintain  in good  standing  those  mineral  claims  comprised  in the
          Property by the doing and filing of  assessment  work or the making of
          payments in lieu thereof, by the payment of taxes and rentals, and the
          performance of all other actions which may be necessary in that regard
          and in order to keep such  mineral  claims free and clear of all liens
          and other  charges  arising  from the  Optionee's  activities  thereon
          except those at the time contested in good faith by the Optionee;

     (b)  permit the directors,  officers,  employees and designated consultants
          of the Optionor, at their own risk and expense, access to the Property
          at all  reasonable  times,  and the Optionor  agrees to indemnify  the
          Optionee  against  and to save it  harmless  from all  costs,  claims,
          liabilities  and  expenses  that the Optionee may incur or suffer as a
          result of any injury (including injury causing death) to any director,
          officer,  employee or designated  consultant of the Optionor  while on
          the Property;

     (c)  permit the  Optionor,  at its own  expense,  reasonable  access to the
          results of the work done on the  Property  during  the last  completed
          calendar year;

     (d)  do all work on the Property in a good and  workmanlike  fashion and in
          accordance  with  all  applicable   laws,   regulations,   orders  and
          ordinances of any governmental authority;

     (e)  indemnify  and save the  Optionor  harmless  in respect of any and all
          costs, claims,  liabilities and expenses arising out of the Optionee's
          activities on the Property, but the Optionee shall incur no obligation
          hereunder  in respect of claims  arising  or  damages  suffered  after
          termination  of the  Option  if upon  termination  of the  Option  any
          workings on or  improvements  to the Property made by the Optionee are
          left in a safe condition.

<PAGE>
                                        6

TERMINATION OF OPTION
---------------------

8.   (a) The Optionee may terminate the Option by notice to the Optionor.

     (b)  If the Option is  terminated  by the  Optionee  or the  Optionor,  the
          Optionee shall:

          (i)  leave in good  standing  for a period of at least 24 months  from
               the  termination  of  the  Option  Period  those  mineral  claims
               comprised in the Property;

          (ii) deliver to the  Optionor a Bill of Sale or other  proper  form of
               transfer  documents,  in recordable form whereby the right, title
               and interest in and to the Property has been  transferred  to the
               Optionor or its nominee or nominees,  free and clear of all liens
               or  charges  arising  from  the  Optionee's   activities  on  the
               Property; and

          (iii)deliver  at no  cost  to the  Optionor  within  90  days  of such
               termination, copies of all reports, maps, assay results and other
               relevant  technical  data compiled by,  prepared at the direction
               of, or in the  possession  of the  Optionee  with  respect to the
               Property and not theretofore furnished to the Optionor.

     (c)  Notwithstanding the termination of the Option, the Optionee shall have
          the right, within a period of 180 days following the end of the Option
          Period, to remove from the Property all buildings,  plant,  equipment,
          machinery, tools, appliances and supplies which have been brought upon
          the Property by or on behalf of the  Optionee,  and any such  property
          not removed  within such 180 day period  shall  thereafter  become the
          property of the Optionor.

ROYALTY
-------

9.   (a) Upon the Commencement of Commercial Production,  the Optionee shall pay
     to the Optionor the  Royalty,  being equal to 3% of net Smelter  Returns on
     the terms and conditions as set out in this section and in Schedule "B".

     (b)  Instalments of the Royalty  payable under  paragraph (a) shall be paid
          by the Optionee as follows:

          (i)  within  45 days  after  the end of each of the  Optionee's  first
               three  fiscal  quarters in each fiscal year and within 60 days of
               the end of the  Optionee's  last  fiscal  quarter in each  fiscal
               year,  the Optionee  shall pay to the Optionor an amount equal to
               25% of the  estimated  Royalty,  if  any,  for the  fiscal  year,
               adjusted if necessary  after the first quarter of any fiscal year
               to  reflect  any  change  during  the  fiscal  year in  estimated
               Royalty; and

          (ii) within 120 days after the end of the Optionee's  fiscal year, the
               balance, if any, of Royalty payable in respect of the fiscal year
               last completed.

     (c)  After  Commencement  of  Commercial  Production,  the Optionee  shall,
          within 45 days after the end of each  fiscal  quarter,  furnish to the
          Optionor quarterly unaudited statements  respecting  operations on the
          Property, together with a statement showing the calculation of Royalty
          for the fiscal quarter last completed.

     (d)  Forthwith after the end of each fiscal year,  commencing with the year
          in which Commencement of Commercial Production occurs, the accounts of
          the Optionee  relating to operations on the Property  shall be audited
          by the auditors of the Optionee,  at its expense, and the statement of
          operations,  which  shall  include the  statement  of  calculation  of
          Royalty for the year last  completed.  The Optionor shall have 45 days
          after receipt of such  statements to question the accuracy  thereof in
          writing and, failing such objection, the statements shall be deemed to
          be correct and unimpeachable thereafter.

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                                        7

     (e)  If the audited financial  statements  furnished  pursuant to paragraph
          (d) disclose  any  overpayment  of Royalty by the Optionee  during the
          fiscal year, the amount of the  overpayment  shall be debited  against
          future instalments of Royalty payable hereunder.

     (f)  If the audited financial  statements  furnished  pursuant to paragraph
          (d) disclose any  underpayment  of Royalty by the Optionee  during the
          year, the amount thereof shall be paid to the Optionor forthwith after
          determination thereof.

     (g)  The  Optionor  agrees to  maintain  for each mining  operation  on the
          Property,  up-to-date and complete  records relating to the production
          and  sale of  minerals,  ore,  bullion  and  other  product  from  the
          Property, including accounts, records, statements and returns relating
          to  treatment  and  smelting  arrangements  of such  product,  and the
          Optionor or its agents shall have the right at all  reasonable  times,
          including  for a period  of 12  months  following  the  expiration  or
          termination of this Agreement, to inspect such records, statements and
          returns  and  make  copies  at its  own  expense  for the  purpose  of
          verifying the amount of Royalty payments to be made by the Optionee to
          the Optionor pursuant hereto. The Optionor shall have the right at its
          own expense to have such accounts audited by independent auditors once
          each fiscal year.

     (h)  Upon the Optionor  receiving a total of  $1,000,000  from  payments of
          Royalty,  the Royalty shall terminate.  The Optionee shall always have
          the right to prepay such amount before it is actually due.

POWER TO CHARGE PROPERTY
------------------------

10. At any time after the Optionee has  exercised  the Option,  the Optionee may
grant mortgages,  charges or liens (each of which is herein called a "mortgage")
of and upon the Property or any portion thereof,  any mill or other fixed assets
located thereon and any or all of the tangible  personal  property located on or
used in connection  with the Property to secure  financing of development of the
Property, provided that, unless otherwise agreed to by the Optionor, it shall be
a term of each mortgage that the mortgagee or any person  acquiring title to the
Property  upon  enforcement  of the mortgage  shall hold the same subject to the
rights of the  Optionor  hereunder  as if the  mortgagee  or any such person had
executed this Agreement.

TRANSFERS
---------

11.  (a) The  Optionee  may at any time  either  during  the  Option  Period  or
     thereafter,  sell,  transfer or otherwise  dispose of all or any portion of
     its interest in and to the Property and this  Agreement  provided  that any
     purchaser,  grantee or  transferee  of any such  interest  shall have first
     delivered to the Optionor its  agreement  related to this  Agreement and to
     the Property, containing:

          (i)  a covenant by such  transferee to perform all the  obligations of
               the Optionee to be performed  under this  Agreement in respect of
               the  interest to be acquired by it from the  Optionee to the same
               extent as if this Agreement had been originally  executed by such
               transferee; and

<PAGE>
                                        8

          (ii) a  provision  subjecting  any  further  sale,  transfer  or other
               disposition  of such interest in the Property and this  Agreement
               or any  portion  thereof to the  restrictions  contained  in this
               paragraph (a).

     (b)  No  assignment  by the Optionee of any  interest  less than its entire
          interest in this Agreement and in the Property  shall,  as between the
          Optionee and the  Optionor,  discharge it from any of its  obligations
          hereunder,  but  upon  the  transfer  by the  Optionee  of the  entire
          interest at the time held by it in this  Agreement,  whether to one or
          more  transferees  and  whether  in one or in a number  of  successive
          transfers,  the  Optionee  shall be deemed to be  discharged  from all
          obligations  hereunder  save and except for the payment of the Royalty
          or other fulfillment of contractual  commitments  accrued due prior to
          the date on which the Optionee shall have no further  interest in this
          Agreement.

     (c)  If the Optionor  should  receive a bona fide offer from an independent
          third party (the  "Proposed  Purchaser")  dealing at arm's length with
          the  Optionor  to  purchase  all or a  part  of  its  interest  in the
          Property,  which  offer the  Optionor  desires  to  accept,  or if the
          Optionor  intends  to  sell  all or a  part  of  its  interest  in the
          Property:

          (i)  The Optionor  shall first offer (the  "Offer")  such  interest in
               writing to the Optionee upon terms no less  favourable than those
               offered by the  Proposed  Purchaser  or intended to be offered by
               the Optionor, as the case may be.

          (ii) The Offer shall specify the price,  terms and  conditions of such
               sale, the name of the Proposed  Purchaser and shall,  in the case
               of an  intended  offer by the  Optionor,  disclose  the person or
               persons to whom the Optionor  intends to offer its interest  and,
               if the offer received by the Optionor from the Proposed Purchaser
               provides for any consideration  payable to the Optionor otherwise
               than in cash, the Offer shall include the  Optionor's  good faith
               estimate of the cash equivalent of the non-cash consideration.

          (iii)If  within a period  of 60 days of the  receipt  of the Offer the
               Optionee notifies the Optionor in writing that it will accept the
               Offer,  the Optionor  shall be bound to sell such interest to the
               Optionee on the terms and  conditions of the Offer.  If the Offer
               so accepted by the Optionee  contains the  Optionor's  good faith
               estimate of the cash equivalent of the non cash  consideration as
               aforesaid, and if the Optionee disagrees with the Optionor's best
               estimate,  the Optionee  shall so notify the Optionor at the time
               of acceptance  and the Optionee  shall,  in such notice,  specify
               what it considers,  in good faith, the fair cash equivalent to be
               and the  resulting  total  purchase  price.  If the  Optionee  so
               notifies the Optionor,  the  acceptance by the Optionee  shall be
               effective and binding upon the Optionor and the Optionee, and the
               cash  equivalent  of any  such  non-cash  consideration  shall be
               determined  by  binding  arbitration  and shall be payable by the
               Optionee,  subject to prepayment as hereinafter provided,  within
               60 days following its determination by arbitration.  The Optionee
               shall in such case pay to the  Optionor,  against  receipt  of an
               absolute transfer of clear and unencumbered title to the interest
               of the Optionor  being sold,  the total  purchase  price which is
               specified  in its notice to the Optionor and such amount shall be
               credited to the amount  determined  following  arbitration of the
               cash equivalent of any non-cash consideration.

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                                        9

          (iv) If  the  Optionee  fails  to  notify  the  Optionor   before  the
               expiration  of the time limited  therefore  that it will purchase
               the interest  offered,  the  Optionor may sell and transfer  such
               interest to the Proposed  Purchaser at the price and on the terms
               and  conditions  specified  in the Offer for a period of 60 days,
               but the  terms  of  this  paragraph  shall  again  apply  to such
               interest if the sale to the Proposed  Purchaser is not  completed
               within such 60 days.

          (v)  Any  sale  hereunder  shall  be  conditional  upon  the  Proposed
               Purchaser  delivering a written  undertaking to the Optionee,  in
               form and substance  satisfactory  to its counsel,  to be bound by
               the terms and conditions of this Agreement.

SURRENDER AND ACQUISITION OF PROPERTY
INTEREST PRIOR TO TERMINATION OF AGREEMENT
------------------------------------------

12. The Optionee may at any time elect to abandon any one or more of the mineral
claims  comprised  in the  Property  by giving  notice to the  Optionor  of such
intention.  For a period of 30 days after giving such  notice,  the Optionor may
elect to have any or all of the  mineral  claims in respect of which such notice
has been given  transferred  to it by  delivery  of a request  therefore  to the
Optionee, whereupon the Optionee shall deliver to the Optionor a Bill of Sale or
other  appropriate  transfer  documents in registrable  form  transferring  such
mineral  claims to the  Optionor.  Any  claims so  transferred  shall be in good
standing  under the laws of the  jurisdiction  in which they are  situate for at
least 24 months from the date of transfer. If the Optionor fails to make request
for the transfer of any mineral  claims as aforesaid  within such 30 day period,
the Optionee may then abandon such mineral claims without  further notice to the
Optionor.  Upon  any  such  transfer  or  abandonment,  the  mineral  claims  so
transferred or abandoned  shall for all purposes of this Agreement cease to form
part of the Property.

FORCE MAJEURE
-------------

13.  (a) If the  Optionee  is at any time  either  during the  Option  Period or
     thereafter  prevent or delayed in  complying  with any  provisions  of this
     Agreement  by  reason  of  strikes,   lock-outs,  labour  shortages,  power
     shortages,   fuel  shortages,   fires,  wars,  acts  of  God,  governmental
     regulations  restricting  normal  operations,  shipping delays or any other
     reason or  reasons,  other than lack of funds,  beyond  the  control of the
     Optionee,  the time  limited  for the  performance  by the  Optionee of its
     obligations hereunder shall be extended by a period of time equal in length
     to the period of each such  prevention or delay,  but nothing  herein shall
     discharge  the  Optionee  from its  obligations  hereunder  to maintain the
     Property in good standing;

     (b)  The Optionee shall give prompt notice to the Optionor of each event of
          force  majeure under  paragraph  (a) and upon  cessation of such event
          shall furnish to the Optionor with notice t that effect  together with
          particulars  of the  number  of days by which the  Obligations  of the
          Optionee hereunder have been extended by virtue of such event of force
          majeure and all preceding events of force majeure.

     (c)  After the  Commencement of Commercial  Production,  the Optionee shall
          work,  mine and operate the Property  during such time or times as the
          Optionee  in  its  sole  judgment  considers  such  operations  to  be
          profitable.  The  Optionee  may  suspend or curtail  operations,  both
          before and after Commencement of Commercial Production, during periods
          when the products  derived from the Property cannot be profitable sold
          at prevailing prices or if an unreasonable  inventory thereof,  in the
          Optionee's   sole  judgment,   has   accumulated  or  would  otherwise
          accumulate.

<PAGE>
                                       10

CONFIDENTIAL INFORMATION
------------------------

14. No  information  furnished  by the  Optionee to the  Optionor  hereunder  in
respect of the  activities  carried  out on the  Property  by the  Optionee,  or
related to the sale of minerals,  ore, bullion or other product derived from the
Property,  shall be published by the Optionor  without the prior written consent
of the  Optionee,  but such consent in respect of the  reporting of factual data
shall not be  unreasonably  withheld,  and shall not be  withheld  in respect of
information required to be publicly disclosed pursuant to applicable  securities
or corporation laws.

ARBITRATION
-----------

15.  (a) The parties agree that all questions or matters in dispute with respect
     to the  accounting  of  monies  hereunder  or in any  respect  to any other
     dispute which the parties agree shall be settled by  arbitration,  shall be
     submitted to arbitration pursuant to the terms hereof.

     (b)  It shall be a condition  precedent to the right of any party to submit
          any matter to arbitration  pursuant to the provisions hereof, that any
          party  intending to refer any matter to  arbitration  shall have given
          not less than 10 days' prior  notice of its  intention to do so to the
          other party, together with particulars of the mater in dispute. On the
          expiration of such 10 days, the party who gave such notice may proceed
          to refer the dispute to arbitration as provided in paragraph (c).

     (c)  The party desiring  arbitration shall appoint one arbitrator and shall
          notify the other party of such  appointment and the other party shall,
          within 15 days after  receiving  such  notice,  either  consent to the
          appointment  of  such  arbitrator  which  shall  then  carry  out  the
          arbitration or appoint an arbitrator and the two arbitrators so named,
          before  proceeding to act, shall within 30 days of the  appointment of
          the last appointed arbitrator, unanimously agree on the appointment of
          a third arbitrator to act with them and be chairman of the arbitration
          herein provided for.

     If the other party shall fail to appoint an arbitrator within 15 days after
     receiving  notice of the  appointment  of the first  arbitrator,  the first
     arbitrator  shall  be the  only  arbitrator,  and if  the  two  arbitrators
     appointed by the parties shall be unable to agree on the appointment of the
     chairman,  the chairman  shall be  appointed  under the  provisions  of the
     Commercial  arbitration  Act of British  Columbia.  Except as  specifically
     otherwise  provided in this section,  the  arbitration  herein provided for
     shall be conducted in  accordance  with such Act. The  chairman,  or in the
     case where only one arbitrator is appointed,  the single arbitrator,  shall
     fix a time and place in  Vancouver,  British  Columbia,  for the purpose of
     hearing the  evidence  and  representations  of the  parties,  and he shall
     preside over the  arbitration  and determine all questions of procedure not
     provided for under such Act or this section. After hearing any evidence and
     representations that the parties may submit, the single arbitrator,  or the
     arbitrators, as the case may be, shall make an award and reduce the same to
     writing and delivery  one copy thereof to each of the parties.  The expense
     of the arbitration shall be paid as specified in the award.

     (d)  The parties agree that the award of a majority of the  arbitrators  or
          in the case of a single arbitrator, of such arbitrator, shall be final
          and binding upon each of them.

DEFAULT AND TERMINATION
-----------------------

16.  (a) If at any time during the Option  Period the Optionee  fails to perform
     any obligation  required to be performed by it hereunder or is in breach of
     a  warranty  given by it  hereunder,  which  failure  or breach  materially
     interferes  with the  implementation  of this  Agreement,  the Optionor may
     terminate this Agreement, but only if:

<PAGE>
                                       11

          (i)  it shall  have  first  given to the  Optionee a notice of default
               containing  particulars of the obligation  which the Optionee has
               not performed or the warranty breached; and

          (ii) the Optionee has not,  within 45 days following  delivery of such
               notice of default, cured such default or commenced proceedings to
               cure such  default by  appropriate  payment or  performance,  the
               Optionee  hereby  agreeing that should it so commence to cure any
               default it will  prosecute the same to  completion  without undue
               delay.

     Should the Optionee fail to comply with the provision of subparagraph (ii),
     the Optionor may thereafter terminate this Agreement.

     (b)  The Optionee may  permanently  discontinue  mining  operations  on the
          Property at any time after the  Commencement of Commercial  Production
          when in its opinion no further mining  operations can be  economically
          carried out thereon.  At such time,  the Optionee shall dispose of all
          mining  plant  and  equipment   used  on  the  Property,   effect  all
          reclamation  work as  required  by law and  otherwise  dispose  of the
          Property  as it  thinks  fit.  Any  purchaser  of the  Property  after
          termination  of  mining  operations  on the  Property  shall  take the
          Property free and clear of all claims by the Optionor. The accounts of
          the Optionee  relating to its mining  operations on the Property shall
          be audited by the  auditors  of the  Optionee  as soon as  practicable
          after the sale or disposition  of all mining plant,  equipment and the
          Property  and  completion  of  reclamation.  Final  settlement  of any
          Royalty payable to the Optionor shall be effected  without delay after
          receipt of the final audited  statements.  After receipt of such final
          audited statements and payment of Royalty,  if any, this Agreement and
          the mutual  obligations  of the Optionee  and the  Optionor  hereunder
          shall terminate.

NOTICES
-------

17.  (a) Each notice, demand or other communication  required or permitted to be
     given under this Agreement shall be in writing and shall be sent by prepaid
     registered mail deposited in a Post Office in Canada addressed to the party
     entitled  to  receive  the same,  or  delivered,  telexed,  telegraphed  or
     telecopied to such party at the address for such party specified above. The
     date of receipt of such notice,  demand or other communication shall be the
     date of delivery thereof if delivered,  telexed, telegraphed or telecopied,
     or, if given by registered mail as aforesaid,  shall be deemed conclusively
     to be the  third  business  day after  the same  shall  have been so mailed
     except  in the case of  interruption  of  postal  services  for any  reason
     whatever,  in which case the date of receipt shall be the date on which the
     notice,   demand  or  other  communication  is  actually  received  by  the
     addressee.

     (b)  Either  party may at any time and from time to time  notify  the other
          party in writing of a change or address  and the new  address to which
          notice shall be given to it thereafter until further change.

GENERAL

18.  (a) This  Agreement  shall  supersede  and replace any other  agreement  or
     arrangement,  whether  oral or  written,  heretofore  existing  between the
     parties in respect of the subject matter of this Agreement.

<PAGE>
                                       12

     (b)  No consent or waiver  expressed  or implied by either party in respect
          of any breach or default by the other in the performance by such other
          of its  obligations  hereunder  shall be deemed or  construed  to be a
          consent to or a waiver of any other breach of default.

     (c)  The  parties  shall  promptly  execute  or  cause to be  executed  all
          documents,   deeds,  conveyances  and  other  instruments  of  further
          assurance  and do such further and other acts which may be  reasonably
          necessary or advisable to carry out fully the intent of this Agreement
          or to record wherever appropriate the respective interest from time to
          time of the parties in the Property.

     (d)  This  Agreement  shall enure to the benefit of and be binding upon the
          parties and their respective successors and permitted assigns.

     (e)  This Agreement  shall be governed by and construed in accordance  with
          the laws of British  Columbia  and shall be subject to the approval of
          all securities regulatory authorities having jurisdiction.

     (f)  Time shall be of the essence in this Agreement.

     (g)  Wherever the neuter and singular is used in this Agreement it shall be
          deemed to include the plural,  masculine and feminine, as the case may
          be.

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

The CORPORATE SEAL of                                         )
Whitegold Resource Corp.                                      )
was hereunto affixed in the                                   )
presence of:                                                  )        c/s
                                                              )
/s/Allen Achilles                                             )
-----------------
Allen Achilles                                                )

The CORPORATE SEAL of                                         )
Big Cat Mining Corporation                                    )
was hereunto affixed in the                                   )
presence of:                                                  )        c/s
                                                              )
/s/Phil Mudge                                                 )
-------------
Phil Mudge                                                    )

<PAGE>
                                       13

                                  SCHEDULE "A"
                  To Option Agreement dated September 28, 2001

Claim Name                Record Number         Year of Expiry
----------                -------------         --------------

ISK1                      227242                March 5, 2002
ISK2                      227244                March 5, 2002
ISK3                      227243                March 5, 2002
ISK4                      227245                March 5, 2002
BRYS1                     669164M               August 16, 2002
BRYS2                     669165M               August 16, 2002
BRYS3                     669200M               August 16, 2002
BRYL1                     669160M               August 15, 2002
BRYL2                     669161M               August 15, 2002
BRYL3                     669162M               August 15, 2002
BRYL4                     669163M               August 16, 2002
GRIZZLY                   228114                August 10, 2002
ISK5                      227213                March 3, 2003
ISK6                      227224                March 3, 2002

Liard Mining Division

<PAGE>
                                       14

                                  SCHEDULE "B"
                  To Option Agreement dated September 28, 2001

                               NET SMELTER RETURNS
                               -------------------

1. For the  purposes of this  Agreement  "Net  Smelter  Returns"  shall mean the
actual proceeds received from any mint,  smelter or other purchaser for the sale
of bullion,  concentrates  or ores  produced  from the Property and sold,  after
deducting  from such proceeds the following  charges to the extent that they are
not deducted by the purchaser in computing payment:

     (a)  in the case of the sale of bullion, refining charges only;

     (b)  in the  case  of the  sale  of  concentrates,  smelting  and  refining
          charges, penalties and the cost of transportation of such concentrates
          from the Property to any smelter or other purchaser; and

     (c)  in the case of ores  shipped  to a  purchaser,  refining  charges  for
          bullion  and  charges  for   smelting,   refining   and  the  cost  of
          transportation  from the mill to any  smelter or other  purchaser  for
          concentrates.

2. The Optionee  shall have the right to commingle  with ore from the  Property,
ore produced from other properties owned or controlled by the Optionee, provided
the Optionee  shall adopt and employ  reasonable  practices and  procedures  for
weighing,  sampling and  assaying in order to determine  the amounts of products
derived from, or attributable to, ore mined and produced from the Property.  The
Optionee  shall  maintain  accurate  records of the  results  of such  sampling,
weighing  and  assaying  with  respect  to any ore mined and  produced  from the
Property.  The Optionor or its authorized  agent shall be permitted the right to
examine at all reasonable  times such records  pertaining to commingling of ores
or to the calculations of Net Smelter Returns.

3.  Commencing  on the  fifth  anniversary  of this  Agreement  and  every  year
thereafter until  Commencement of Commercial  Production from the Property,  the
Optionee  shall pay the Optionor an advance on Net Smelter  Returns of $100,000.
Any  advances  on Net  Smelter  Returns  paid  under  this  paragraph  shall  be
accumulated  and be deductible  from any Net Smelter  Returns to the Optionor to
the extent such Net Smelter  Returns  payments  exceed $100,000 for any calendar
year.

4. If, after  Commencement  of  Commercial  Production  from the  Property,  Net
Smelter  Returns  payable to the Optionor  for any  calendar  year are less than
$100,000,  the  Optionee  shall pay to the  Optionor  on or before June 1 of the
following year the difference between the $100,000 and the amount of Net Smelter
Returns payable for the said calendar year.EMPLOYMENT AGREEMENT

     This Employment  Agreement  ("Agreement") dated as of February 28, 2003 and
effective as of January 1, 2003 (the "Effective Date"), is made and entered into
between Helix BioMedix,  Inc., a Delaware  corporation ("the Company") and Kerry
Palmer ("the Executive").

     WHEREAS,  the Company  wishes to enter into an agreement with the Executive
governing  the terms and  conditions  of his  employment,  and the  Executive is
willing to be employed on the terms and conditions set forth in this Agreement;

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

1. Employment.
--------------
The Company shall employ the  Executive,  and the  Executive  shall serve in the
full-time employ of the Company,  on the terms and subject to the conditions set
forth in this  Agreement.  The  Executive  shall serve in the  position of Chief
Financial Officer with duties and  responsibilities  customary for that position
plus any  additional  duties and  responsibilities  which may be assigned to the
Executive  from time to time by the Board of  Directors  or the Chief  Executive
Officer of the Company. Executive's duties will include, but are not limited to,
preparing  regulatory  reports,  handling  accounting  functions  and  preparing
financial  projections.  The Executive  shall devote his best efforts and all of
his business time and attention to the business of the Company.  Executive shall
not engage in any other  business  activity  (except the  management of personal
investments  and  charitable and civic  activities  that in the aggregate do not
interfere with the  performance of Executive's  duties)  without first obtaining
the  written  consent  of the Board or  Directors,  and such  consent  shall not
unreasonably  be  withheld.  Executive  further  agrees to abide by all by-laws,
policies,  practices,  procedures,  or rules of the Company. The Executive shall
perform his duties and responsibilities  under the direction and supervision of,
and shall report directly to, the Chief Executive Officer of the Company or such
other officer as the Chief Executive Officer determines.

2.   Term.
----------
The term of this Agreement shall be continuous from and after the Effective Date
for a period of two (2) years,  unless  extended  in writing by both the Company
and the  Executive  or earlier  terminated  in  accordance  with Section 4 ("the
Term").

3.   Compensation.
------------------
During the Term of this  Agreement,  the Executive  shall be  compensated by the
Company as follows:

     (a) Annual Base Salary.
     -----------------------
     The Company shall pay  Executive an annual base salary for the  Executive's
     actual period of employment at a rate of Eighty Thousand Dollars  ($80,000)
     per year commencing from and after the Effective Date.  Executive's  annual
     base salary shall increase to a rate of Ninety Thousand  Dollars  ($90,000)
     per year commencing on June 1, 2003. The  Executive's  base salary shall be
     paid in accordance  with the Company's  normal payroll  policies for senior
     management  as are from  time to time in  effect.  The  Company  agrees  to
     reconsider compensation upon receipt of licensing revenues.

<PAGE>

Employment Agreement
Kerry Palmer/Helix BioMedix, Inc.
Page 2

     (b) Vacation and Fringe Benefits.
     ---------------------------------
     During the Executive's actual period of employment,  the Executive shall be
     eligible  for three (3) weeks' paid  vacation per year.  In  addition,  the
     Executive  shall be entitled to  participate  in any and all group medical,
     dental, vision, retirement, or disability benefit plans which are from time
     to time maintained by the Company for its senior  executive  employees,  in
     accordance  with the terms and conditions of such plans or programs as they
     may be  amended  from  time to  time.  Nothing  herein  contained  shall be
     construed as requiring the Company to establish or continue any  particular
     benefit plan in discharge of its obligations under this Agreement.

     (c) Stock Options.
     ------------------
     The Company and the  Executive  shall enter into a Stock  Option  Agreement
     granting  Executive  options to purchase  common stock subject to the terms
     and conditions of the Company's Amended Stock Option Plan. The Stock Option
     Agreement  shall be dated  February  28, 2003.  The Stock Option  Agreement
     shall grant Executive  90,000 options to purchase common stock at $1.00 per
     share.  Fifteen  thousand  (15,000)  options  shall vest upon  signing this
     Employment  Agreement.  The remaining 75,000 options shall vest pursuant to
     the Company's Amended Stock Option Plan.

     (d) Incentive Compensation.
     ---------------------------
     Executive shall be entitled to participate in a manner  consistent with all
     other senior  management  participation in any incentive  compensation plan
     that may be adopted by the Company.

     (e) Business Expenses.
     ----------------------
     The Executive shall be reimbursed, in a manner consistent with the policies
     of the  Company,  for all  reasonable  business  expenses  incurred  in the
     performance of his duties  pursuant to this  Agreement,  to the extent such
     expenses are substantiated in writing,  and are consistent with the general
     policies  of the  Company  relating  to the  reimbursement  of  expenses of
     executive-level  employees  of the  Company.  Expenses  for items  that are
     reasonably  deemed to be personal by the Company shall not be reimbursed by
     the Company and are the sole responsibility of the Executive.

     (f) Insurance.
     --------------
     The  Company  will  maintain  a policy  of  insurance  for  directors'  and
     officers'  liability  with such coverage as may be determined by the Board.
     Executive  will be  included  within  that  policy  of  insurance  with the
     premiums paid by the Company.

     (g) Deduction and Withholding.
     ------------------------------
     All  compensation  and other  benefits  to or on  behalf  of the  Executive
     pursuant  to  this  Agreement  shall  be  subject  to such  deductions  and
     withholding  as may be agreed to by the Executive or required by applicable
     law, rule or regulation.

<PAGE>

Employment Agreement
Kerry Palmer/Helix BioMedix, Inc.
Page 3

4. Termination.
---------------

     (a) Termination by Executive.
     -----------------------------
     The Executive may  terminate his  employment  with the Company at any time,
     for any reason, with or without cause.

     (b) Termination by the Company.
     -------------------------------
     The Company shall have the right to terminate the Executive's employment at
     any time, for any reason, without or without cause.

     (c) Termination due to Death or Disability.
     -------------------------------------------
     The  Executive's  employment  pursuant to this  Agreement  shall  terminate
     automatically  on the  date of the  Executive's  death or  disability.  For
     purposes of this  Agreement,  the Executive  shall be deemed to be disabled
     (as  determined  in good faith by the  Board),  if for a period of at least
     four (4)  consecutive  months  he is unable to  substantially  perform  the
     essential  functions  of his  position  with the  Company  with or  without
     reasonable  accommodation.  The Executive and the Company  acknowledge that
     Executive's  ability to perform the duties specified in Section 1 is of the
     essence of this  Agreement.  If the  Executive's  employment  terminates by
     reason of his disability,  his employment  termination date shall be deemed
     to be  the  last  day  of  the  four  (4)  month  period  described  in the
     immediately preceding paragraph.

5.   Termination Payments.
--------------------------
In the event of termination of the employment of Executive, all compensation and
benefits set forth in this Agreement  shall  terminate,  except as  specifically
provided in this Section 5.

     (a) Termination by the Company With Cause.
     ------------------------------------------
     Upon termination by the Company With Cause (as defined below),  the Company
     shall pay  Executive  any  unpaid  annual  base  salary,  earned but unused
     vacation,  and incentive  compensation  due (if any), for services  already
     performed to the effective date of  termination  of employment,  subject to
     normal withholding or other deductions.

     (b) Termination by the Company Without Cause.
     ---------------------------------------------
     Upon  termination  by the Company  Without  Cause (as defined  below),  the
     Company  shall pay  Executive  any unpaid  annual base  salary,  earned but
     unused  vacation,  and  incentive  compensation  due (if any) for  services
     already  performed to the  effective  date of  termination  of  employment,
     subject to normal withholding or other deductions. In addition, the Company
     shall pay  Executive  his base  salary  for a period  of six (6)  months in
     accordance  with the Company's  regular  payroll  practices then in effect,
     subject to normal withholding and other deductions.  The Company will issue
     and file  appropriate  tax  documents  in  connection  with  any  severance
     payments.   Payment  of  the  above-described  severance  compensation  and
     benefits is conditioned on Executive executing a full mutual release of all
     claims relating to his employment with or termination from the Company in a
     form  provided  by  the  Company.  Executive  will  have  the  duty  to use
     reasonable  effects to mitigate the costs to the Company by  attempting  to
     obtain  other  employment  within  a  reasonable  time  after  termination.
     Executive's  compensation  from  such  other  employment  will be  credited
     against  the  amounts  due from the  Company  to the  extent  the  combined
     compensation  from  Executive's  new position and Company's  payments under
     this Section 5(b) would otherwise  exceed  Executive's base salary with the
     Company  at the  effective  date of  termination.  Executive  has a duty to
     notify the Company when he obtains new employment.

<PAGE>

Employment Agreement
Kerry Palmer/Helix BioMedix, Inc.
Page 4

     (c) Termination by Executive Without Good Reason.
     -------------------------------------------------
     Upon  termination  by  Executive  Without  Good Reason (as defined  below).
     Executive  shall  receive the  compensation  set forth in Section  5(a) and
     shall not be entitled to any other compensation, benefits or payments.

     (d) Termination by Executive With Good Reason.
     ----------------------------------------------
     Upon  termination  by  Executive  With  Good  Reason  (as  defined  below),
     Executive  shall  receive the  compensation  set forth in Section  5(b) and
     shall not be entitled to any other compensation, benefits or payments.

     (e) Termination as a Result of Death or Disability.
     ---------------------------------------------------
     In the event of termination of Executive's  employment  pursuant to Section
     4(c),  Executive or his estate shall be paid the  compensation set forth in
     Section 5(a) and shall not be entitled to any other compensation,  benefits
     or payments.

     (f) Definition of "Cause".
     --------------------------
     "Cause" as used in this Agreement shall mean a  determination  by the Board
     of Directors  that one or more of the following  has occurred:  (i) willful
     misconduct,  or dishonesty in the  performance of  Executive's  duties that
     results in a material  adverse  effect on the Company;  (ii)  conviction of
     Executive of a felony  involving  an act of  dishonesty,  moral  turpitude,
     deceit  or  fraud;  or  (iii)  current  use by  the  Executive  of  illegal
     substances.

     (g) Definition of "Good Reason".
     --------------------------------
     "Good Reason" as used in this Agreement shall mean the occurrence of any of
     the following events, without the consent of the Executive:  (i) a demotion
     or other  material  reduction  in the  nature  and  status  of  Executive's
     responsibilities;  or (ii) a material  reduction in Executive's annual base
     salary or any failure by the Company to satisfy its duty to compensate  the
     Executive as required under this Agreement.

     6. Intellectual Property.
     -------------------------
     The  Company  shall own all right,  title and  interest  (including  patent
     rights,  copyrights,  trade secret  rights,  mask work rights,  sui generis
     database  rights and all other  intellectual  rights of any sort throughout
     the world)  relating to any and all inventions  (whether or not patented or
     patentable),   discoveries,  works  of  authorship,  mask  works,  designs,
     know-how,  ideas and information  made or conceived or reduced to practice,
     in  whole  or  in  part,  by  Executive   during  the  Term   (collectively
     "Inventions")  to and only to the fullest  extent allowed by RCW 49.44.140,
     which provides that this  Agreement does not apply to any such  inventions,
     discoveries  and  any  patent,  patent  application,   copyright  or  other
     intellectual property right for which no equipment,  supplies,  facility or
     trade secret information of the Company was

<PAGE>

Employment Agreement
Kerry Palmer/Helix BioMedix, Inc.
Page 5

     used and that was developed  entirely on the Executive's  own time,  unless
     (a)  the  inventions,  discoveries  and  any  patent,  patent  application,
     copyright or other intellectual  property right relates (i) directly to the
     business of the Company;  or (ii) to the Company's  actual or  demonstrably
     anticipated  research or development;  or (b) such inventions,  discoveries
     and  any  patent,  patent  application,  copyright  or  other  intellectual
     property  right  results from any work  performed by the  Executive for the
     Company.  Executive  will  disclose  all  Inventions  to the Company so the
     Company can make an  independent  assessment  about the  application of RCW
     49.44.140. Executive shall assist the Company, at the Company's expense, to
     executive  such  documents and perform such other acts as the Company deems
     necessary or appropriate for the Company to obtain patents or copyrights on
     such  Inventions  and  to  assign  to the  Company  or  its  designee  such
     Inventions  and any patent  and  copyright  applications  and  patents  and
     copyrights  relating  thereto.  Executive agrees to disclose any Inventions
     created by the Executive prior to Executive's  employment with the Company.
     If  Executive  uses or discloses  Executive's  own (except  where  excluded
     pursuant  to this  Section)  or any third  party's  Inventions  when acting
     within the scope of  Executive's  employment,  the Company  will have,  and
     Executive  grants  the  Company,  a  perpetual,   irrevocable,   worldwide,
     royalty-free, non-exclusive, sublicensable right and license to exploit and
     exercise all such  Inventions  rights.  To the extent  allowed by law, this
     Section includes all "moral rights"  "artist's  rights" or the like. To the
     extent that Executive  retains any such moral or artist's rights  Executive
     hereby  ratifies  and consents to any action that may be taken with respect
     to such  rights by or  authorized  by the Company and agrees not to asserts
     any such rights  with  respect  thereto.  Executive  will  confirm any such
     ratifications and consents from time to time as requested by the Company.

7.   Privacy.
-------------
Executive  recognizes  and agrees that  Executive has no  expectation of privacy
with respect to the  Company's  telecommunications,  networking  or  information
processing systems (including,  but not limited to, stored computer files, email
messages and voice mail) and that Executive's activity and any files or messages
on or using any of these Company-owned systems may be monitored and/or copied at
any time without notice.

8. Confidentiality of Information.
----------------------------------

     (a)  Scope.
     -----------
     During the term of his  employment  with the  Company  and  thereafter  the
     Executive shall not at any time,  whether during or after his employment by
     the Company, take or use, or otherwise disclose to anyone, any Confidential
     Information,  except as  necessary  to  perform  his duties  hereunder,  as
     permitted by the Chief Executive Officer of the Company,  or as required by
     any court or governmental agency.

<PAGE>

Employment Agreement
Kerry Palmer/Helix BioMedix, Inc.
Page 6

     (b) Definition.
     ---------------
     "Confidential  Information"  shall mean any and all trade  secrets,  ideas,
     suggestions,    innovations,    conceptions,    discoveries,    strategies,
     improvements,     technological    developments,     methods,    processes,
     specifications,   formulae,  compositions,  techniques,  systems,  computer
     software and programs,  notes,  memoranda,  work sheets, lists of actual or
     potential customers and suppliers,  pricing information and policies, works
     of authorship,  products,  data, and information in any form, which concern
     or relate to any  aspect of the  actual  or  contemplated  business  of the
     Company and which are stamped  "confidential"  or are otherwise  treated as
     confidential  by the Company,  except for such items as the  Executive  can
     prove through  clear and  convincing  evidence  were in the public  domain,
     being publicly and openly known,  prior to the date of  commencement of the
     Executive's  employment by the Company or,  subsequent to such date, became
     part of the public domain,  being publicly and openly known, through lawful
     and proper means.

     (c) Restrictions.
     -----------------
     The Executive  agrees that the restrictions set forth in this paragraph are
     reasonable and necessary to protect the Company.

9. Noncompetition and Nonsolicitation.
--------------------------------------

     (a) Scope.
     ----------
     During the Term and for a period of two (2) years from the  effective  date
     of  termination  of  employment,  the  Executive  shall  not,  directly  or
     indirectly, as principal, agent, employee, officer, shareholder, consultant
     or  otherwise,  engage in any  business  that  competes  directly  with the
     Company, and will not solicit or aid in soliciting, endeavor to obtain as a
     customer or client,  accept  sales,  marketing,  financial,  or  consulting
     business from, or perform sales, marketing,  consulting or related business
     for any person, firm, corporation, association or other entity: (i) that is
     or was a Company  customer for whom  Executive  performed  any services for
     with whom Executive had  maintained  substantial  business  contacts at any
     time during the Term; or (ii) whose business  Executive  solicited,  either
     alone or in conjunction with others, on behalf of the Company or any of its
     subsidiaries during the Term.

     (b) Consideration.
     ------------------
     Executive acknowledges that his employment with the Company, his receipt of
     Confidential  Information and information about Inventions from the Company
     and his  training  with the Company all  constitute  consideration  for the
     agreements in this Section.

     (c) Reform.
     -----------
     If a court of  competent  jurisdiction  should  declare  any or all of this
     Agreement unenforceable because of any unreasonable restriction of duration
     and/or  geographical area in subparagraph  9(a), then such court shall have
     the express authority to reform subparagraph 9(a) to provide for reasonable
     restrictions  and/or to grant the Company such other  relief,  at law or in
     equity,  as are  reasonably  necessary  to  protect  the  interests  of the
     Company.

10. Nonsolicitation of Employees.
---------------------------------
During  the Term and for a period of two (2) years  from the  effective  date of
termination  of  employment,  the Executive  shall not,  directly or indirectly,
employ, solicit or induce or attempt to influence any employee of the Company or
any affiliate of the Company to terminate his or her employment with the Company
or any affiliate of the Company or to work for the Executive or any other person
or entity.

<PAGE>

Employment Agreement
Kerry Palmer/Helix BioMedix, Inc.
Page 7

11. Responsibilities Upon Termination.
--------------------------------------
Upon the  termination of his  employment by the Company for whatever  reason and
irrespective of whether or not such  termination is voluntary on his part:,  the
Executive  shall  promptly  deliver  to the  Company  all of its data,  designs,
drawings,  plans,  manuals,  notes,  memoranda,  work  sheets,   specifications,
customer lists, supplier lists, pricing information,  computer programs, and all
other  materials  which are or have  become the  property of the Company and all
copies or reproductions of any such.

12. Separate Agreements.
------------------------
The  covenants of the  Executive  contained in  paragraphs 6, 8, 9, 10 and 11 of
this  Agreement  shall be construed as separate  agreements  independent  of any
other agreement,  claim or cause of action of the Executive against the Company,
whether predicated on this Agreement or otherwise, and no other agreement, claim
or cause of action asserted by the Executive  shall  constitute a defense to the
enforcement by the Company of these covenants.  The covenants  contained in this
Agreement  are  necessary to protect the  legitimate  business  interests of the
Company.  Damages for the violation of any such covenants will not give full and
sufficient  relief to the  Company.  In the event of any  violation  of any such
covenants,  the Company shall be entitled (i) to injunctive  relief  against the
continued  violation  thereof,  and (ii) to its actual  damages.  In any dispute
concerning whether or not the Executive has violated any of such covenants,  the
prevailing  party shall be entitled to payment  from the other party for any and
all expenses, including attorneys' fees and expenses, incurred by the prevailing
party in connection with such dispute.

13. General.
------------

     (a) Survival.
     -------------
     The covenants of the  Executive  contained in paragraphs 6, 8, 9, 10 and 11
     of the  Agreement,  shall  survive the term of the  Executive's  employment
     under this Agreement.

     (b) Counterparts.
     -----------------
     This Agreement may be executed in any number of counterparts, each of which
     shall be deemed to be an original and all of which,  taken together,  shall
     constitute one instrument.

     (c) Headings.
     -------------
     All headings used in this Agreement are for convenience  only and shall not
     in any way  affect  the  construction  of or be  taken  into  consideration
     interpreting this Agreement.

     (d) Notices.
     ------------
     All  notices,  demands  and  other  communications  provided  for  by  this
     Agreement shall be in writing and shall be deemed to have been given at the
     time  the same is  delivered  in  person  or is  mailed  by  registered  or
     certified mail addressed as follows:

<PAGE>

Employment Agreement
Kerry Palmer/Helix BioMedix, Inc.
Page 8

   To the Company:   Steve Beatty, President and CEO
                     -------------------------------
                     Helix BioMedix, Inc., 22122 20th Ave. SE, Bothell, WA 98021
                     -----------------------------------------------------------

   To the Executive: Kerry Palmer
                     17126 N.E. 163rd Place
                     Woodinville, WA 98072

     Either  party  wishing to change the  address to which  notices,  requests,
     demands and other  communications  under this Agreement shall be sent shall
     give written notice of such change to the other party.

     (e) Dispute Resolution.
     -----------------------
     Any  controversies  or claims  arising out of or relating to this Agreement
     shall be fully and finally  settled by  arbitration in the city of Seattle,
     Washington  in  accordance  with the  Employment  Arbitration  Rules of the
     American  Arbitration   Association  then  in  effect  ("the  AAA  Rules"),
     conducted by one arbitrator  either mutually agreed upon by the Company and
     Executive  or chosen in  accordance  with the AAA  Rules,  except  that the
     parties  shall have any right to  discovery  as would be  permitted  by the
     Federal  Rules of Civil  Procedure  for a period of 90 days  following  the
     commencement  of such  arbitration,  and the  arbitrator  shall resolve any
     dispute that arises in connection  with such  discovery.  Judgment upon the
     award  rendered  by the  arbitrator  may be  entered  in any  court  having
     jurisdiction.  In any such dispute,  the prevailing party shall be entitled
     to its or his  attorneys'  fees and costs,  in addition to any other relief
     that may be awarded.

     (f) Governing Law.
     ------------------
     This  Agreement  shall be governed  by the laws of the State of  Washington
     without regard to any rules governing conflicts of laws.

     (g) Waiver.
     -----------
     The  waiver  or  failure  of  either  party  to  insist  in any one or more
     instances  upon  performance  of any term,  covenant or  condition  of this
     Agreement  shall not be construed as a waiver of future  performance of any
     such term, covenant or condition,  but the obligations of either party with
     respect to such term,  covenant or condition  shall  continue in full force
     and effect.  No course of dealing shall be implied or arise from any waiver
     or series of waivers of any right or remedy hereunder.

     (h) Severability.
     -----------------
     Each provision of this Agreement  shall be interpreted  where possible in a
     manner  necessary  to  sustain  its  legality  and  enforceability.  If any
     provision  of this  Agreement  shall  be  unenforceable  or  invalid  under
     applicable  law,  such  provision  shall be limited to the  minimum  extent
     necessary to render the same enforceable or valid. The  unenforceability of
     any  provision  of  this  Agreement  in  a  specific   situation,   or  the
     unenforceability  of any portion of any  provision  of this  Agreement in a
     specific situation, shall not

<PAGE>

Employment Agreement
Kerry Palmer/Helix BioMedix, Inc.
Page 9

     affect the  enforceability of (i) that provision or portion of provision in
     another situation or (ii) the other provisions or portions of provisions of
     this  Agreement if such other  provisions or the remaining  portions  could
     then continue to conform with the purposes of this  Agreement and the terms
     and requirements of applicable law.

     (i) Assignment.
     ---------------
     Except as may be provided under Section 3 above, this Agreement is personal
     to  Executive  and shall not be  assignable  by  Executive.  If the Company
     changes its name or changes to another  corporate form, this Agreement will
     remain in effect between the Executive and the Company's successor. All the
     terms and provisions of this Agreement shall be binding on and shall insure
     to the benefit of and be  enforceable  by the parties and their  respective
     successors and permitted assigns.

     (j) Amendments.
     ---------------
     This  Agreement  shall  not  be  amended  orally,  but  only  by a  written
     instrument executed by each party to this Agreement.

     (k) Entire Agreement.
     ---------------------
     This Agreement,  including documents  referenced herein, and any amendments
     or  extensions  to those  agreements  embodies  the  entire  agreement  and
     understanding between the parties with respect to the subject matter hereof
     and  supersedes all prior oral and written  agreements  and  understandings
     between the Company and the  Executive  with respect to the subject  matter
     hereof.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

                                         Helix BioMedix, Inc.

                                         By: /s/ R. Stephen Beatty
                                             -----------------------------------
                                             R. Stephen Beatty President and CEO

                                         Executive

                                             /s/ Kerry Palmer
                                             -----------------------------------
                                             Kerry Palmer

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