Yes, you have to kill him., I did this:
Went in single mode into the room. Ran out and lead them through the nifty traps in the corridor - my DK finished off the rest in the drill grounds.
DK => sneak mode, and then arrows. Keeping in sneak mode, so the guards didn't spot me.
http://www.kiya1.de/beyond/act1screens/drilltraps0.pnghere is the screenie to show how to run past the traps.