Document:

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                                                                   Exhibit 10.68

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                        EXCLUSIVE INDEPENDENT CONTRACTOR
                                    AGREEMENT

                                       FOR

                                PROJECT SENTINEL

                                     BETWEEN

                       CLINICAL REFERENCE LABORATORY, INC.

                                       AND

                         CALYPTE BIOMEDICAL CORPORATION

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                                = CONFIDENTIAL =

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The symbol '[**]' is used to indicate that a portion of the exhibit has been
omitted and filed separately with the Committee.

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                                TABLE OF CONTENTS
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<TABLE>
<CAPTION>
SECTION                                                                                                        PAGE
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<S>                                                                                                            <C>
1        Structure of Relationship................................................................................1
         1.1      General.........................................................................................1
         1.2      Duties of CRL...................................................................................2
         1.3      Duties of Calypte...............................................................................4
         1.4      Supply of the Reagents..........................................................................4
         1.5      Pricing and Allocation of Revenue...............................................................4
         1.6      Independent Management..........................................................................4
         1.7      Marketing and Promotion.........................................................................4

2        Duration of Agreement....................................................................................4
         2.1      Term............................................................................................4
         2.2      Termination by Mutual Consent...................................................................4
         2.3      Termination for Cause...........................................................................5
         2.4      Completion of Testing...........................................................................5
         2.5      Survival of Rights and Obligations..............................................................5

3        Non-Competition and Exclusivity..........................................................................5
         3.1      Limitation on Competing Activities..............................................................5
         3.2      Use of Trademarks...............................................................................6
         3.3      License of Technology...........................................................................6

4        Confidentiality of Information...........................................................................6
         4.1      Non-Disclosure of Confidential Information......................................................6
         4.2      Exceptions......................................................................................6
         4.3      Return or Destruction of Confidential Information...............................................7
         4.4      External Communications.........................................................................7

5        Insurance and Indemnification............................................................................7
         5.1      Insurance.......................................................................................7
         5.2      Indemnification.................................................................................7

6        Representations and Warranties...........................................................................8
         6.1      Corporate Status................................................................................8
         6.2      Binding Effect..................................................................................8
         6.3      No Default......................................................................................8
         6.4      Effect of Agreement.............................................................................8

7        Miscellaneous............................................................................................9
         7.1      Governing Law...................................................................................9
</TABLE>

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<TABLE>
<S>                                                                                                             <C>
         7.2      Entire Agreement................................................................................9
         7.3      Severability....................................................................................9
         7.4      Force Majeure...................................................................................9
         7.5      Non-Assignment..................................................................................9
         7.6      Amendments.....................................................................................10
         7.7      Notices........................................................................................10
         7.8      Waivers........................................................................................10
         7.9      Captions.......................................................................................10
         7.10     Proper Business Practices......................................................................10
         7.11     Counterparts...................................................................................10

SCHEDULE 1.4      INITIAL PRICES FOR REAGENTS....................................................................11

SCHEDULE 1.5      PRICING AND ALLOCATION OF REVENUE..............................................................12

EXHIBIT A         PROJECT SENTINEL DESCRIPTION...................................................................13

EXHIBIT B         FORM OF TESTING AGREEMENT......................................................................15
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                   EXCLUSIVE INDEPENDENT CONTRACTOR AGREEMENT
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         THIS EXCLUSIVE INDEPENDENT CONTRACTOR AGREEMENT (the "AGREEMENT") is
made as of January 21, 2000 (the "EFFECTIVE DATE") between CLINICAL REFERENCE
LABORATORY, INC., a Kansas corporation ("CRL"), and CALYPTE BIOMEDICAL
CORPORATION, a Delaware corporation ("CALYPTE") (collectively, the "PARTIES").

                                 R E C I T A L S
                                 ---------------

A.       Calypte is a manufacturer of in vitro diagnostic tests, in particular
         urine tests for the detection of HIV-1 antibodies, and is the owner of
         certain proprietary technology related to such tests (the
         "TECHNOLOGY").

B.       CRL is a provider of in vitro diagnostic testing services, licensed
         throughout the United States to perform HIV-1 and other tests.

C.       The Parties have identified a commercial opportunity to provide to
         clinics, physicians and other healthcare providers (collectively,
         "PROVIDERS") a national urine testing service for the diagnosis of
         HIV-1 and other STD infections ("PROJECT SENTINEL"), more fully
         explained in Exhibit A hereto. The Parties acknowledge that Project
         Sentinel shall only include offering such tests to Providers and not
         the general public, as neither Party is in the business of providing,
         or has the capability to provide, pre- and post-testing counseling to
         the general public nor proper reporting of test results to governmental
         authorities as required by applicable law.

D.       The Parties desire to set forth the terms and conditions upon which
         they shall act as independent contractors on an exclusive basis to
         pursue Project Sentinel.

                               A G R E E M E N T S
                               -------------------

NOW, THEREFORE, the Parties agree as follows:

1        STRUCTURE OF RELATIONSHIP

1.1      GENERAL. Subject to the terms and conditions hereof, (i) Calypte hereby
         engages the services of CRL as specified herein and CRL undertakes to
         provide such services as an independent contractor, (ii) Calypte
         undertakes to perform the services specified herein, and (iii) Calypte
         shall promote urine STD clinical testing services such as those
         embodied in Project Sentinel exclusively with CRL, as provided herein
         to permit CRL to provide such services. This Agreement creates
         contractual rights between the Parties only, and shall not be deemed to
         create or give rise to a partnership, trust, joint venture, or other
         legal entity. For all purposes, the Parties shall be considered as
         independent contractors and shall not be deemed to be

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         partners, joint venturers, agents or affiliates of each other. This
         Agreement does not grant, and no Party shall have, any authority,
         express or implied, to create or assume any obligation, enter into any
         agreement, make any representation or warranty, file any document with
         any governmental body or serve or accept legal process on behalf of the
         other, to settle any claim by or against the other, or to bind or
         otherwise render the other liable in any way.

1.2      DUTIES OF CRL. CRL shall use commercially reasonable efforts to provide
         the following services to Calypte for Project Sentinel:

         1.2.1    Assemble Collection Kits (as defined in Exhibit A hereto) and
                  distribute Collection Kits to Providers.

         1.2.2    Obtain a properly and fully completed, executed Testing
                  Agreement (in substantially the form as set forth in Exhibit B
                  hereto) from Calypte, Wampole Laboratories ("WAMPOLE") or
                  Providers prior to receiving, administratively processing,
                  testing or reporting the results of Specimens (as defined in
                  Exhibit A hereto).

         1.2.3    Receive and administratively process all Specimens in
                  accordance with CRL's then-current standard procedures,
                  PROVIDED that each Specimen shall only be identified by bar
                  code number as further provided in Exhibit A hereto.

         1.2.4    Perform requested diagnostic tests on Specimens in accordance
                  with Calypte's written directions (which must be commercially
                  reasonable and satisfactory to CRL), applicable law and
                  regulations, and standard clinical laboratory practices.

         1.2.5    Report Specimen test results to the relevant Provider via fax,
                  e-mail or as directed by the Provider.

         1.2.6    Assess and implement sampling and testing logistics for
                  chlamydia and gonorrhea.

         1.2.7    Bill customers pursuant to Section 1.5 hereto, PROVIDED that
                  Calypte acknowledges that CRL shall not be responsible for
                  risk of non-payment or collection efforts, and that CRL
                  accordingly does not guarantee payment by Providers or any
                  other party. CRL shall, however, use commercially reasonable
                  efforts to obtain payment. If CRL does not pursue payment,
                  then Calypte reserves the right to pursue payment at its sole
                  expense and for its sole benefit.

         1.2.8    Provide sales reports to Calypte within thirty (30) working
                  days of the end of each month and apportion revenues for a
                  given month within forty five (45) working days of the end of
                  that month between the Parties in accordance with Section 1.5
                  hereof.

         1.2.9    Such other duties as the Parties may mutually agree in writing
                  to be performed by CRL.

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1.3      DUTIES OF CALYPTE. Calypte shall use commercially reasonable efforts to
         perform the following services for Project Sentinel:

         1.3.1    Manufacture and provide HIV-1 Urine EIA and Urine Western Blot
                  (the "REAGENTS") for supply to CRL pursuant to Section 1.4
                  hereof. Calypte warrants that the Reagents, when used
                  according to the directions printed in the then-current
                  package insert, shall meet the performance claims listed
                  therein and shall be fit for the purposes intended for Project
                  Sentinel.

         1.3.2    Create, ensure compliance with applicable law and arrange for
                  printing of all collateral materials including, but not
                  limited to, brochures and advertising materials.

         1.3.3    Use commercially reasonable efforts to develop additional
                  urine-based testing methods and supplemental applications for
                  urine STD testing. Upon the availability of such new tests,
                  the parties shall negotiate in good faith the terms by which
                  these new tests would be incorporated into Project Sentinel.

         1.3.4    Conduct, oversee and bear all costs associated with
                  telemarketing for Project Sentinel.

         1.3.5    Ensure that CRL is the  exclusive  provider of the services
                  specified in Section 1.2 for Project Sentinel.

         1.3.6    Such other duties as the Parties may mutually agree in writing
                  to be performed by Calypte.

1.4      SUPPLY OF THE REAGENTS  [**]

1.5      PRICING AND ALLOCATION OF REVENUE. The initial pricing for the
         Collection Kits and testing services to be provided under Project
         Sentinel is set forth in Schedule 1.5 hereto. Given that Project
         Sentinel would not be possible without the contributions of each of
         the Parties, the Parties shall jointly make all pricing
         determinations for the products and services provided to Providers
         under this Agreement, including without limitation any amendment to
         Schedule 1.5 during the term hereof, subject to Section 1.4 hereof.
         CRL shall, on a monthly basis, allocate the revenues received under
         Project Sentinel in the manner set forth in Schedule 1.5 hereto and
         Section 1.2.8 hereof. Any adjustments to such allocations shall
         require the mutual written agreement of both Parties, PROVIDED that
         any increase in customer pricing, without a corresponding written
         agreement to the contrary, shall result in a proportional increase
         for all areas of allocation, subject to Section 1.4 hereof. CRL may
         offset against amounts due to Calypte pursuant to this Section 1.5
         for amounts payable by Calypte to CRL hereunder.

1.6      INDEPENDENT MANAGEMENT. Except as expressly provided in this Agreement,
         CRL shall have exclusive decision-making authority relating to all
         services provided by CRL hereunder and Calypte shall have exclusive
         decision-making authority relating to all services performed by Calypte
         hereunder.

1.7      MARKETING AND PROMOTION.  [**]

2        DURATION OF AGREEMENT

2.1      TERM. This Agreement shall be effective as of the Effective Date and
         shall be valid and continue in full force and effect for a period of
         five (5) years or until terminated in accordance with Sections 2.2 or
         2.3 hereof. After the expiration of the initial five (5) year

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         period, this Agreement shall automatically renew for additional terms
         of one (1) year each, unless either party provides written notice of
         its intent not to renew this Agreement at least ninety (90) days prior
         to the expiration of the then current term.

2.2      TERMINATION BY MUTUAL CONSENT. This Agreement may be terminated at any
         time by the mutual written agreement of the Parties.

2.3      TERMINATION FOR CAUSE. Either Party may terminate this Agreement in the
         event that the other Party is in material breach of a material
         obligation under this Agreement and such breach is not remedied within
         sixty (60) calendar days after written notice of such breach is
         provided by the non-breaching Party to the Party in breach.

2.4      COMPLETION OF TESTING. Upon the expiration or termination of this
         Agreement for any reason, (i) Calypte acknowledges and agrees that CRL
         shall have the right and option to continue testing of Specimens,
         including without limitation use of the Technology, for a reasonable
         period of time (which at CRL's election may be at least until the
         expiration date of Collection Kits distributed prior to the effective
         date of the expiration or termination of this Agreement) to permit CRL
         to complete testing of Specimens received in Collection Kits remaining
         with Providers, (ii) CRL shall not be obligated to, but in its sole
         discretion may, recall Collection Kits from Providers at any time after
         sixty (60) calendar days from the expiration or termination date of
         this Agreement, Calypte shall within thirty (30) working days of CRL's
         invoice refund the portion of allocated revenues received by Calypte
         related to such Collection Kits, (iii) CRL shall, as commercially
         reasonable, immediately discontinue the assembly and distribution of
         Collection Kits (as described in Exhibit A) which are specifically
         designed for use solely with Project Sentinel, and (iv) Calypte shall
         at CRL's request repurchase Reagents not used by CRL at the price paid
         by CRL (PROVIDED that CRL shall use commercially reasonable efforts to
         (A) utilize all Reagents prior to requesting any such repurchase, and
         (B) notify Calypte as soon as is reasonably possible of any such
         repurchase, with an estimate of the amount of such repurchase).

2.5      SURVIVAL OF RIGHTS AND OBLIGATIONS. The rights and obligations of the
         Parties pursuant to Sections 2.4, 3.3, 4 and 5.2 hereof shall survive
         and continue after the termination of this Agreement. Termination of
         this Agreement shall not relieve the Parties of any liability which
         arose hereunder prior to the date of such termination nor preclude any
         Party from pursuing all rights and remedies it may have hereunder or at
         law or in equity with respect to any breach of this Agreement, nor
         prejudice a Party's right to obtain performance of any obligation
         provided for in this Agreement, which right expressly survives
         termination.

3        NON-COMPETITION AND EXCLUSIVITY

3.1      LIMITATION ON COMPETING ACTIVITIES. [**]

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3.2      USE OF TRADEMARKS. Calypte at its cost shall obtain and maintain
         U.S. Federal trademark or service mark registrations for "SENTINEL"
         and/or any other trademarks, service marks or trade names which the
         parties shall mutually determine to use for the promotion and
         operation of Project Sentinel (collectively, the "MARKS"). During
         the term of this Agreement and the completion period specified in
         Section 2.4 hereof, Calypte grants to CRL an exclusive (except as to
         Calypte and Wampole), royalty-free license to use the Marks for
         Project Sentinel. Calypte warrants to CRL that (subject to obtaining
         such registrations) it owns or will own the Marks and has or will
         have the right to license their use to CRL, and that CRL's use of
         the Marks shall not infringe the proprietary rights of any third
         party. Each of the parties undertakes and agrees that, except as
         otherwise may be agreed by them in writing, neither party shall use
         the Marks (i) for any purpose during the term hereof other than
         Project Sentinel, and (ii) for any purpose whatsoever after the
         expiration or termination of this Agreement. For the avoidance of
         doubt, Calypte agrees to not use the Marks after the expiration or
         termination of this Agreement except with the written consent of CRL.

3.3      LICENSE OF TECHNOLOGY. During the term of this Agreement and the
         completion period specified in Section 2.4 hereof, Calypte grants to
         CRL a non-exclusive, royalty-free license to use the Technology for
         Project Sentinel. Calypte warrants to CRL that to the best of its
         knowledge it owns the Technology and has the right to license its use
         to CRL, and that CRL's use of the Technology shall not infringe the
         proprietary rights of any third party.

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4        CONFIDENTIALITY OF INFORMATION

4.1      NON-DISCLOSURE OF CONFIDENTIAL INFORMATION. Each Party shall maintain
         in confidence, and shall not use, disseminate or disclose for any
         purpose whatsoever other than for the purposes of this Agreement, any
         and all information (herein "CONFIDENTIAL INFORMATION"), whether oral
         or written (including, without limitation, in electronic form),
         furnished to it pursuant to this Agreement, or in connection with the
         transactions contemplated by this Agreement including, but not limited
         to, technical information, know-how, customer lists, trade secrets,
         business strategy, financial data, development and manufacturing
         processes and techniques, and all other confidential and proprietary
         information of whatever description, and shall cause, instruct and
         oblige its directors, officers, employees and agents and any other
         person acting in concert with it or on its behalf and having access to
         such Confidential Information to keep the same in confidence.

4.2      EXCEPTIONS. Notwithstanding the foregoing, no Party shall be obliged to
         keep in confidence or incur any liability for disclosure of
         Confidential Information received which (i) was already known to the
         recipient at the time of its receipt, (ii) was permitted in writing to
         be disclosed by the party from which it was obtained, (iii) was within
         the public domain at the time of its disclosure to the recipient, (iv)
         comes into the public domain without any breach of this Agreement, (v)
         becomes known or available to the recipient other than as a result of
         any breach of this Agreement by the recipient, or (vi) is validly
         required to be disclosed by any applicable law, court or regulatory or
         examining authority. Furthermore, in the event that a Party or anyone
         to whom a party transmits the Confidential Information becomes legally
         compelled to disclose any of the Confidential Information, such Party
         shall provide the other Party with prompt notice of such so that the
         other Party may seek an appropriate remedy and/or waive compliance with
         the provisions of this Agreement. In the event that such a remedy is
         not obtained, each Party shall furnish only that portion of the
         Confidential Information that it is advised by written opinion of its
         legal counsel to be legally required and shall exercise commercially
         reasonable efforts to obtain such reliable assurance that confidential
         treatment shall be accorded to the Confidential Information.

4.3      RETURN OR DESTRUCTION OF CONFIDENTIAL INFORMATION. Upon the expiration
         or termination of this Agreement, each Party agrees to return any
         Confidential Information and all copies thereof at the written request
         of the Party which furnished such Confidential Information, or shall
         procure that all tangible forms of such Confidential Information are
         destroyed.

4.4      EXTERNAL COMMUNICATIONS. Except as reasonably necessary to effect a
         Party's rights and obligations hereunder, without the prior written
         consent of the other Party, each Party, its agents, representatives and
         employees shall not disclose to any person or entity the terms,
         conditions or other facts with respect to this Agreement, the
         collaboration which is the subject hereof, or any transactions
         contemplated hereby. However, either party is free to issue and may
         disclose marketing or public relations information in an effort to
         further or enhance the marketing/public relations aspect of Project
         Sentinel. Such disclosing party shall

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         provide a copy of any such information to the other party before any
         information is disclosed to a non-party.

5        INSURANCE AND INDEMNIFICATION

5.1      INSURANCE. Each Party shall maintain policies of insurance (including
         without limitation liability, auto, workers compensation and
         professional negligence coverages) reasonably and prudently required
         for the conduct of their respective business, as determined by the
         individual Parties.

5.2      INDEMNIFICATION. Each Party (for purposes of this Section 5.2, an
         "INDEMNIFYING PARTY") shall, to the extent permitted by applicable law,
         defend, indemnify, and hold harmless the other Party and its respective
         officers, directors, shareholders, employees, agents, independent
         contractors, representatives and affiliates (for purposes of this
         Section 5.2, collectively the "INDEMNIFIED PERSONS") from and against
         any loss, damage, liability, cost or expense, including without
         limitation reasonable attorneys' fees and disbursements incurred or
         suffered by the Indemnified Persons, arising in connection with:

         5.2.1    Any breach of a representation or warranty of the Indemnifying
                  Party as set forth herein;

         5.2.2    Any breach by the Indemnifying Party of any of its covenants,
                  or failure by the Indemnifying Party to perform any of its
                  agreements or obligations, as set forth in this Agreement; and

         5.2.3    Claims or demands arising out of or related to any fraud, bad
                  faith, willful misconduct or negligence of the Indemnifying
                  Party or any of its affiliates, respectively, or their
                  respective employees, agents or representatives, in connection
                  with this Agreement.

6        REPRESENTATIONS AND WARRANTIES

         Each Party represents and warrants to the other Party, as of the
         Effective Date, that:

6.1      CORPORATE STATUS. Such Party is a corporation duly incorporated and
         organized and validly existing in all respects under the laws of the
         jurisdiction of its incorporation, with full power and authority to
         enter into, execute, deliver and perform its obligations under this
         Agreement and to own its assets and to carry on its business as it is
         now being conducted, and as currently planned to be conducted, and no
         action has been taken or threatened (whether by such party or any third
         party) for its liquidation, bankruptcy, receivership or analogous
         process.

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6.2      BINDING EFFECT. Such Party's execution and delivery of, and the
         performance of its obligations under, this Agreement has been duly and
         validly authorized, and each of its obligations hereunder constitutes
         its valid, legal and binding obligation enforceable against such Party
         in accordance with such obligation's terms.

6.3      NO DEFAULT. Such Party is not in violation of or default under any term
         of its articles of incorporation or analogous charter documents (as
         applicable) or any provision of any agreement to which it is a party or
         by which any of its assets or properties is bound, or to its knowledge
         any provision of any judgment, decree, order, writ, statute, rule or
         regulation applicable to it, which violation or default would
         materially and adversely affect its performance hereunder.

6.4      EFFECT OF AGREEMENT. The execution and delivery by such Party of this
         Agreement, and the performance or observance of any of its obligations
         hereunder, does not and will not conflict with, nor does it and nor
         will it result in any violation of or default under, any agreement to
         which it is a party or by which any of its assets or properties is
         bound, nor to its knowledge any provision of any judgment, order,
         decree, writ, statute, rule or regulation applicable to it, which
         violation or default would materially and adversely affect its
         business, assets liabilities, financial condition or prospects.

7        MISCELLANEOUS

7.1      GOVERNING LAW. This Agreement and the documents to be entered into
         pursuant to it shall be deemed to have been made in the State of Kansas
         and shall be governed by and construed and enforced in accordance with,
         the internal laws of the State of Kansas.

7.2      ENTIRE AGREEMENT. This Agreement, including the Schedules and Exhibits
         attached hereto, constitutes the entire agreement between the Parties
         with respect to the subject matter hereof and supersedes and replaces
         any and all previous negotiations, understandings, correspondence,
         commitments and agreements, oral or written, with respect to such
         subject matter.

7.3      SEVERABILITY. Any provision of this Agreement which shall be held to be
         invalid, illegal, or unenforceable in any respect shall be ineffective
         to the extent of such invalidity, illegality or unenforceability only,
         without affecting or impairing in any way the remaining provisions
         hereof. If at any time any provision of this Agreement is held to be
         invalid, illegal, or unenforceable, then the Parties shall negotiate in
         good faith to modify such provision so that it is valid, legal and
         enforceable, and has the same intended economic effect as the original
         provision.

7.4      FORCE MAJEURE. A Party shall not be liable to the other Party for
         failure to perform any part of this Agreement, with the exception of
         payment obligations, if such failure results from an act of God, war
         conditions, revolt, revolution, sabotage, government, state or
         municipal

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         regulations or actions, embargo, fire, strike, or other labor trouble,
         or any cause beyond such Party's reasonable control. Upon the
         occurrence of any such event which results in, or will result in, delay
         or failure to perform according to the terms of this Agreement, the
         Party whose performance is delayed or prevented shall immediately give
         notice to the other Party of such occurrence and the effect and/or
         anticipated effect of such occurrence on the performance of such Party.
         The Party whose performance is so affected shall use commercially
         reasonable efforts to minimize disruptions in its performance and to
         resume full performance of its obligations under this Agreement as soon
         as possible.

7.5      NON-ASSIGNMENT. No Party may assign this Agreement or rights or
         obligations hereunder, in whole or in part, without the written consent
         of the other Party, which consent shall not be unreasonably withheld,
         PROVIDED that either Party may transfer, assign and/or delegate its
         rights and obligations hereunder to the purchaser of substantially all
         of its assets (which for the avoidance of doubt shall permit the
         acquisition of a controlling interest in the equity securities of
         either Party by any person or entity and/or the merger of either Party
         with any person or entity without the consent of the other Party) if
         such purchaser undertakes in writing to the other Party hereto to
         assume, observe and perform the obligations of such assigning Party,
         and such assigning Party remains liable to the other Party hereto for
         the full performance of such obligations. This Agreement shall be
         binding on and shall inure to the benefit of any and all successors and
         permitted assigns of either Party.

7.6      AMENDMENTS. No amendment, modification, revision or waiver of any
         provision of this Agreement shall in any event be effective unless the
         same shall be in writing and signed by both Parties hereto.

7.7      NOTICES. All notices under this Agreement shall be in writing and given
         in person, first class registered mail or by Federal Express, Airborne
         or other reputable delivery service, delivery costs prepaid, addressed
         to the Parties at the addresses specified on the last page hereof, or
         to such other address of which either Party may notify the other
         pursuant to this provision. Any such notice or communication may also
         be given by facsimile or other electronic communication to the
         appropriate designation with confirmation of receipt. Notices sent by
         mail shall be effective upon receipt; notices given by hand, delivery
         service, fax, or other electronic communication shall be effective when
         delivered and with confirmation of receipt.

7.8      WAIVERS. A Party shall not be deemed to have waived any right, power or
         privilege under this Agreement unless such waiver is in writing and
         signed by such Party. No waiver shall be deemed to be a continuing
         waiver unless so stated in writing.

7.9      CAPTIONS. The captions appearing in this Agreement are inserted only as
         a matter of convenience and as a reference and in no way define, limit
         or describe the scope or intent of this Agreement.

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OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

<PAGE>

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

7.10     PROPER BUSINESS PRACTICES. No Party shall pay, promise, offer or
         authorize payment of anything of value in any form to any person or
         organization, either directly or indirectly, through an agent,
         representative, subcontractor or other third party, to obtain or retain
         business, where such payment, promise, offer or authorization is
         contrary to applicable law. Each Party shall comply with all applicable
         laws and regulations in the performances of its duties under this
         Agreement.

7.11     COUNTERPARTS. This Agreement may be executed in one or more
         counterparts, each of which shall be deemed to be an original, but all
         of which taken together shall constitute one and the same instrument.

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

CLINICAL REFERENCE LABORATORY, INC.    CALYPTE BIOMEDICAL CORPORATION

BY:      /s/ Timothy S. Sotos          BY:      /s/ Nancy E. Katz
         -------------------------              -------------------------------
         Timothy Sotos                          Nancy Katz
         Chairman & CEO                         President

ADDRESS:    8433 Quivera Road          ADDRESS:     1265 Harbor Bay Parkway
            Lenexa, Kansas 66215                    Alameda, CA 94502
FAX:        (913) 492-2057             FAX:         (510) 814-8408

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                   EXCLUSIVE INDEPENDENT CONTRACTOR AGREEMENT            PAGE 10

THE SYMBOL '[**]' IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

<PAGE>

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                                  SCHEDULE 1.4
                                  ------------

                           INITIAL PRICES FOR REAGENTS

                                      [**]

                                  SCHEDULE 1.5
                                  ------------

                        PRICING AND ALLOCATION OF REVENUE

                                      [**]

                                    EXHIBIT A
                                    ---------
                          PROJECT SENTINEL DESCRIPTION
                                      [**]

                                    EXHIBIT B
                                    ---------
                                TESTING AGREEMENT
                   REGARDING SENTINEL STD-TM- TESTING SERVICES

The undersigned agrees as follows:

-        The obligation of the Sentinel-TM- STD Testing Service is limited to
the reporting of test results. Pre- and post-test counseling of patients is the
sole responsibility of the party identified below.
-        It is the sole responsibility of the party identified below to comply
with local laws and regulations regarding the reporting of transmissible
diseases to health authorities.
-        The party identified below hereby certifies that it is authorized by
competent authorities to order HIV antibody and STD testing.
-        The party identified below hereby certifies that it is solely
responsible for compliance with applicable laws and regulations regarding
informed consent and confidentiality.
-        The party identified below acknowledges that it will receive results
that are identified only by bar-code number, and agrees not to submit samples
identified in any manner by patient name.
-        The party identified below accepts sole responsibility for compliance
with sample collection and transport instructions, and agrees to collect and
transport samples only with the materials provided.
-        The party identified below agrees to purchase the urine testing
services according to the pricing and delivery schedule indicated below.
Services will be invoiced monthly based for kits shipped in that month, and
payment will be made within 30 days of invoicing. Applicable sales taxes will be
charged on the invoice.
-        Kits which are unused or expired are not eligible for reimbursement or
replacement.
-        The party identified below understands that the Sentinel-TM- STD
Testing Service is intended for, and priced for, a typical mix of positive and
negative HIV antibody samples. The use of the Service purely as a means of
confirming positive samples is contrary to the spirit of the Service, and CRL
reserves the right to decline future orders from institutions that, in CRL's
sole opinion, misuse the Service in this manner.

<TABLE>
<CAPTION>
                                                 NUMBER OF SAMPLE                                       FREQUENCY OF
TEST SERVICE                                     COLLECTION KITS               PRICE                    SHIPMENT
------------                                     ---------------               -----                    --------
<S>                                              <C>                           <C>                      <C>
HIV-1 Antibody Only                                   25                        550.00                   __ this order only
                                                                                                         ________/month
HIV-1 Antibody Only                                  100                      2,100.00                   __ this order only
                                                                                                         ________/month
HIV-1 Antibody, Chlamydia and Gonorrhea               25                      2,250.00                   __ this order only
                                                                                                         ________/month
HIV-1 Antibody, Chlamydia and Gonorrhea              100                      7,500.00                   __ this order only
                                                                                                         ________/month
Chlamydia and Gonorrhea                               25                      1,750.00                   __ this order only
                                                                                                         ________/month
Chlamydia and Gonorrhea                              100                      6,000.00                   __ this order only
                                                                                                         ________/month
</TABLE>

Purchase Order No._______________________

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                   EXCLUSIVE INDEPENDENT CONTRACTOR AGREEMENT            PAGE 11

THE SYMBOL '[**]' IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

<PAGE>

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

Clinical Reference Laboratories (CRL) agrees as follows:

1)       CRL will process properly collected samples on a timely basis, and make
         every effort to report results (including HIV-1 Antibody Western Blot
         results if appropriate) within three working days of receipt of
         samples, subject to delays beyond its control.
2)       CRL will report results electronically according to the mechanism
         identified below.
3)       CRL will report results only by sample bar-code number.
4)       CRL reserves the right to decline future orders from any Institution.
5)       CRL shall ship collection kits with no less than 9 month remaining
         shelf life.

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                   EXCLUSIVE INDEPENDENT CONTRACTOR AGREEMENT            PAGE 12

THE SYMBOL '[**]' IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

<PAGE>

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

                                    EXHIBIT B

          TESTING AGREEMENT REGARDING SENTINEL-TM- STD TESTING SERVICES

SHIP TO:

Company      _____________________________________________________
Contact Name _____________________________________________________
Address      _____________________________________________________
             _____________________________________________________
City         ______________________ State_________ Zip____________

(   )                  (   )
-------------------    ---------------------      ------------------------
Telephone              Facsimile                  E-mail

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

BILL TO:

Company      _____________________________________________________
Contact Name _____________________________________________________
Address      _____________________________________________________
             _____________________________________________________
City         ______________________ State_________ Zip____________

(   )                  (   )
-------------------    ---------------------      ------------------------
Telephone              Facsimile                  E-mail

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

BUSINESS INFOR:

Please check one:   ____INDIVIDUAL    ____PARTNERSHIP    ____CORPORATION
FEDERAL TAX ID #/SOCIAL SECURITY #  __________________  STATE INCORP.__________
TYPE OF BUSINESS ____________________________  DATE STARTED _______________
MAJOR VENDOR REFERENCE:

NAME______________________________________CONTACT_______________________
ADDRESS___________________________________PHONE_________________________
CITY________________________________STATE______________ZIP______________

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

TEST RESULTS ARE TO BE COMMUNICATED EXCLUSIVELY TO THE ATTENTION OF:

Name__________________________________   Title________________________
Address______________________________________
_____________________________________________
City________________ State_________ Zip______ Telephone (_____)_______________

RESULTS ARE TO BE TRANSMITTED VIA            Facsimile No. (     )
                                         ---               --------------------
(CHOOSE ONE)                                 E-mail address
                                         ---               --------------------

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

The undersigned is authorized on behalf of the Institution named above to agree,
and hereby does agree, to the terms and conditions of this Sentinel-TM- STD
Testing Agreement

____________________   ________________________________________________________
Name                   State Medical License No., if Institution is a physician

Title_________________________________________

______________________________________________     ___________________________
Signature                                                              Date

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                   EXCLUSIVE INDEPENDENT CONTRACTOR AGREEMENT            PAGE 13

THE SYMBOL '[**]' IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE COMMISSION.<PAGE>

                        COMMON STOCK PURCHASE AGREEMENT

                  This COMMON STOCK PURCHASE AGREEMENT (the "Agreement") dated
January 18, 2000 is entered into by and between Conductus, Inc., a Delaware
corporation (together with its successors, the "Company"), and the investor set
forth on the signature page attached hereto ("Investor").

                  Unless otherwise defined herein, capitalized terms used herein
and not defined herein shall have the meanings given to them under the
Securities Act of 1933, as amended (the "Securities Act").

                  The parties hereto agree as follows:

                  1. PURCHASE AND SALE. In consideration of and upon the basis
of the representations, warranties and agreements and subject to the terms and
conditions set forth in this Agreement, Investor agrees to purchase from the
Company, and the Company agrees to sell to Investor, on the Closing Date
specified in Section 2 hereof, the number of shares of the Company's Common
Stock (the "Common Shares") set forth on the signature page attached hereto for
a price per share equal to $13.66875 (the "Purchase Price"). On or before the
Closing Date (as defined below), the Company will have authorized the sale and
issuance of the Common Shares to Investor.

                  2. CLOSING.

                  The closing of the sale of the Common Shares (the "Closing")
shall take place on January 18, 2000 upon satisfaction or, if applicable, waiver
of the conditions set forth in Sections 7 and 8 hereof, or at such other date
and time as the Investor and the Company shall mutually agree (such date and
time and any subsequent closing pursuant to Section being referred to herein as
the "Closing Date"). At the Closing, the Company shall deliver to Investor a
certificate representing the Common Shares, against payment by Investor of the
Purchase Price by check or wire transfer of immediately available funds.

                  3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company
hereby represents and warrants to Investor as follows:

                     a. The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and has
all requisite corporate power and authority to carry on its business as now
conducted and as proposed to be conducted. The Company is duly qualified to
transact business and is in good standing in each jurisdiction in which the
failure to so qualify would have a material adverse effect on its business or
properties.

                     b. All corporate action on the part of the Company, its
officers and directors necessary for the authorization, execution and
delivery of this Agreement, the performance of all obligations of the Company
hereunder and thereunder, and the authorization, issuance (or reservation for
issuance), sale and delivery of the Common Shares has been taken or

<PAGE>

will be taken prior to the Closing, and this Agreement constitutes a valid
and legally binding obligation of the Company, enforceable in accordance with
their respective terms, except (i) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, and other laws of general application
affecting enforcement of creditors' rights generally and (ii) as limited by
laws relating to the availability of specific performance, injunctive relief,
or other equitable remedies.

                     c. The Company is not in violation or default of any
provision of its Amended and Restated Certificate of Incorporation or bylaws,
or of any judgment, order, writ, or decree by which it is bound. The Company
is not in violation or default in any material respect of any instrument or
contract to which it is a party or by which it is bound, or, to its
knowledge, of any provision of any federal or state statute, rule or
regulation applicable to the Company, which violation or default would have a
material adverse effect on its business or properties. The execution,
delivery and performance of this Agreement and the consummation of the
transactions contemplated hereby will not result in any such violation or be
in conflict with or constitute, with or without the passage of time and
giving of notice, either a default under any such provision, instrument,
judgment, order, writ, decree or contract or an event that results in the
creation of any lien, charge or encumbrance upon any assets of the Company or
the suspension, revocation, impairment, forfeiture, or nonrenewal of any
material permit, license, authorization, or approval applicable to the
Company, its business or operations or any of its assets or properties.

                     d. No consent, approval, order or authorization of, or
registration, qualification, designation, declaration or filing with, any
federal, state or local governmental authority on the part of the Company is
required in connection with the consummation of the transactions contemplated
by this Agreement, except the filing pursuant to Regulation D promulgated by
the Securities and Exchange Commission under the Securities Act, which filing
will be effected within 15 days of the sale of the Common Shares hereunder,
or such other post-closing filings as may be required.

                     e. Except as disclosed in the SEC Filings (as defined
below) (i) there is no action, suit, proceeding or investigation pending or,
to the Company's knowledge, currently threatened against the Company that
questions the validity of this Agreement or the right of the Company to enter
into such agreements, or to consummate the transactions contemplated hereby,
and (ii) there is no action, suit, proceeding or investigation pending or, to
the knowledge of the Company, currently threatened in writing against the
Company, or against any executive officer or director of the Company which
might result, either individually or in the aggregate, in any material
adverse change in the business, properties, financial condition or operating
results of the Company, as such business is presently conducted.

                     f. The Company has filed all filings with the United
States Securities and Exchange Commission (the "SEC") under the Securities
Act or under Section 13(a) or 15(d) of the Securities Exchange Act of 1934,
as amended (the "Exchange Act") or under the rules and regulations
promulgated by the SEC (any such filing, an "SEC Filing") required to be
filed by the Company pursuant to such acts and no SEC Filing contained, on
the date on which such document was filed with the SEC, any untrue statement
of a material fact or omitted to state any material fact required to be
stated therein or necessary in order to make the statements, in the

                                       2
<PAGE>

light of the circumstances under which they were made, not misleading. The
financial statements of the Company included in SEC Filings (including any
similar documents filed after the date of this Agreement) comply as to form
in all material respects with applicable accounting requirements and the
published rules and regulations of the SEC with respect thereto, have been
prepared in accordance with generally accepted accounting principles (except,
in the case of unaudited statements, as permitted by Form 10-Q of the SEC)
applied on a consistent basis during the periods involved (except as may be
indicated in the notes thereto), and fairly present the consolidated
financial position of Company and its consolidated subsidiaries as of the
dates thereof and the consolidated results of their operations and cash flows
for the periods then ended (subject, in the case of unaudited statements, to
normal year-end audit adjustments).

                     g. Since the date of the Company's most recent quarterly
report on Form 10-Q or most recent periodic report on Form 8-K filed with the
SEC, there has not been any development that has not otherwise been publicly
disclosed that is reasonably likely to result in any material adverse change
in the financial condition or results of operations of the Company.

                     h. Except as disclosed in the SEC Filings and as
contemplated hereby, and except for registration rights granted to the
holders of Series C Preferred Stock upon substantially the same terms as the
registration rights granted to the Investor hereunder as set forth in Section
6 hereof, the Company has not granted or agreed to grant any registration
rights, including piggy-back rights, to any person or entity.

                     i. As of December 10, 1999, the authorized capital stock
of the Company consisted of 5,000,000 shares of Preferred Stock, 50,000 of
which have been designated Series A Junior Participating Preferred Stock
("Series A Preferred Stock"), none of which are issued and outstanding,
4,500,000 of which have been designated Series B Preferred Stock ("Series B
Preferred Stock"), 2,461,227 shares of which are issued and outstanding, and
20,000,000 shares of Common Stock, 7,156,716 shares of which are issued and
outstanding. As of December 22, 1999, 400,000 shares of Preferred Stock have
been designated Series C Preferred Stock, ("Series C Preferred Stock"),
375,000 of which are issued and outstanding. Series C Preferred Stock is
convertible into Common Stock at the rate of 10 shares of Common Stock for
each share of Series C Preferred Stock. The Series A Preferred Stock, Series
B Preferred Stock, Series C Preferred Stock and the Common Stock are
collectively referred to herein as the "Capital Stock". All of the issued and
outstanding shares of Capital Stock have been duly authorized, validly issued
and are fully paid and nonassessable.

                     j. The Common Shares, when issued, sold or delivered in
accordance with the terms hereof, for the consideration expressed herein,
will be duly and validly issued, fully paid and nonassessable and will be
free of any liens and encumbrances created by the Company and, subject to the
accuracy of the representations of the Investor in this Agreement, will be
issued in compliance with all applicable federal and state securities laws.

                  4. REPRESENTATIONS AND WARRANTIES OF INVESTOR. Investor hereby
represents and warrants to the Company on the date hereof, and agrees with the
Company (unless otherwise specified as provided in the paragraphs below), as
follows:

                                       3
<PAGE>

                     a. Investor understands that no United States federal or
state agency has passed on, reviewed or made any recommendation or
endorsement of the Common Shares.

                     b. Investor has full power and authority to enter into
this Agreement and such Agreement constitutes its valid and legally binding
obligation, enforceable in accordance with its terms, except (i) as limited
by applicable bankruptcy, insolvency, reorganization, moratorium, and other
laws of general application affecting enforcement of creditors' rights
generally and (ii) as limited by laws relating to the availability of
specific performance, injunctive relief, or other equitable remedies.

                     c. This Agreement is made with Investor in reliance upon
Investor's representation to the Company, which by Investor's execution of
this Agreement Investor hereby confirms, that the Common Shares (below
referred to as the "Securities") will be acquired for investment for
Investor's own account, not as a nominee or agent, and not with a present
view to the resale or distribution of any part thereof, and that Investor has
no present intention of selling, granting any participation in, or otherwise
distributing the same. By executing this Agreement, Investor further
represents that Investor does not have any contract, undertaking, agreement
or arrangement with any person to sell, transfer or grant participations to
such person or to any third person, with respect to any of the Securities.

                     d. Investor is an investor in securities of companies in
the development stage and acknowledges that it can bear the economic risk of
its investment, and has such knowledge and experience in financial or
business matters that it is capable of evaluating the merits and risks of the
investment in the Securities. Investor also represents it has not been
organized for the purpose of acquiring the Securities.

                     e. Investor is an "accredited investor" within the
meaning of SEC Rule 501(a) of Regulation D, as presently in effect and all
representations made by Investor in that certain Investor Questionnaire
completed by Investor and delivered to the Company are true and correct in
all respects as if made on the date hereof.

                     f. Investor understands that the Securities are being
offered and sold in reliance on a transactional exemption from the
registration requirements of Federal and state securities laws and that the
Company is relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgments and understandings of the Investor
set forth herein in order to determine the applicability of such exemptions
and the suitability of the Investor to acquire the Securities.

                     g. Investor understands that the Securities it is
purchasing are characterized as "restricted securities" under the federal
securities laws inasmuch as they are being acquired from the Company in a
transaction not involving a public offering and that under such laws and
applicable regulations such securities may be resold without registration
under the Securities Act, only in certain limited circumstances. In this
connection, Investor represents that it is familiar with SEC Rule 144, as
presently in effect, and understands the resale limitations imposed thereby
and by the Securities Act.

                                       4
<PAGE>

                     h. Without in any way limiting the representations set
forth above, Investor further agrees not to make any disposition of all or
any portion of the Securities unless and until the transferee has agreed in
writing for the benefit of the Company to be bound by the terms of this
Agreement provided and to the extent such terms are then applicable, and:

                        (1) There is then in effect a Registration Statement
under the Securities Act covering such proposed disposition and such
disposition is made in accordance with such Registration Statement; or

                        (2) (i) Investor shall have notified the Company of
the proposed disposition and shall have furnished the Company with a detailed
statement of the circumstances surrounding the proposed disposition, and (ii)
if reasonably requested by the Company, Investor shall have furnished the
Company with an opinion of counsel, reasonably satisfactory to the Company
that such disposition will not require registration of such shares under the
Securities Act. It is agreed that the Company will not require opinions of
counsel for transactions made pursuant to Rule 144 except in circumstances
that require a designation of an entity's status as an "affiliate".

                     i. It is understood that the certificates evidencing the
Securities will bear the following legends:

                  "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT
WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS
SOLD PURSUANT TO RULE 144 OF SUCH ACT."

                     j. The execution, delivery and performance of this
Agreement and the consummation by Investor of the transactions contemplated
hereby do not and will not (i) result in a violation of Investor's charter
documents or bylaws or (ii) conflict with any material agreement, indenture
or instrument to which Investor is a party, or (iii) result in a violation of
any order, judgment or decree of any court or governmental agency applicable
to Investor or, to the Investor's knowledge, of any law, rule, or regulation.
Investor is not required to obtain any consent or authorization of any
governmental agency in order for it to perform its obligations under this
Agreement.

                  5. COVENANTS.

                     a. The Investor covenants and agrees with the Company
that (i) neither Investor nor any of Investor's affiliates nor any person
acting on its or their behalf will at any time offer or sell any Common
Shares, other than pursuant to registration under the Securities Act or
pursuant to an available exemption therefrom, and (ii) that the Investor
shall report to the Company Sales made pursuant to a registration statement
under Section 6 below.

                                       5
<PAGE>

                     b. With a view to making available the benefits of
certain rules and regulations of the SEC that may at any time permit the sale
of the restricted securities to the public without registration, the Company
agrees to:

                        (1) Make and keep public information available, as
those terms are understood and defined in Rule 144 under the Securities Act,
at all times after the effective date of the first registration under the
Securities Act filed by the Company for an offering of its securities to the
general public;

                        (2) Use its best efforts to then file with the SEC in
a timely manner all reports and other documents required of the Company under
the Securities Act and the Exchange Act; and

                        (3) So long as Investor owns any of the Common
Shares, to furnish to the Investor upon request, a written statement by the
Company as to its compliance with the reporting requirements of said Rule 144
and of the Securities Act and of the Exchange Act, a copy of the most recent
annual or quarterly report of the Company, and such other reports and
documents of the Company as the Investor may reasonably request in availing
itself of any rule or regulation of the SEC allowing the Investor to sell any
such securities without registration.

                  6. REGISTRATION RIGHTS.

                     a. REGISTRATION OF SHARES. The Company shall file with
the SEC, as promptly as practicable following the Closing and in any event
within 120 days after the Closing, a registration statement under the
Securities Act covering the resale to the public by the Investor of the
Common Shares (the "Registration Statement"). The Company shall use its best
efforts to cause the Registration Statement to be declared effective by the
SEC as soon as practicable and in any event within 180 days after the
Closing. The Company shall cause the Registration Statement to remain
effective until the later of 2 years from the Closing Date or such time as
all Common Shares may be sold under Rule 144 within a ninety (90) day period
or such earlier time as all of the Common Shares covered by the Registration
Statement have been sold pursuant thereto.

                     b. LIMITATIONS ON REGISTRATION RIGHTS.

                        (1) The Company may, by written notice to the
Investor, (x) delay the filing or effectiveness of the Registration Statement
(for up to a total of sixty (60) days) or (y) suspend (for up to a total of
seventy-five (75) days within any twelve-month period) the Registration
Statement after effectiveness and require that the Investor immediately cease
sales of shares pursuant to the Registration Statement, in the event and
during such period as the Company determines that the existence of any fact
or the happening of any event (including without limitation pending
negotiations relating to, or the consummation of, a transaction or the
occurrence of any other event) would require additional disclosure of
material information by the Company in the Registration Statement the
confidentiality of which the Company has a business purpose to preserve or
which fact or event would render the Company unable to comply with

                                       6
<PAGE>

SEC requirements (in either case, a "Suspension Event"). In the case of any
Suspension Event occurring prior to and delaying the filing of the
Registration Statement, the Company shall file the Registration Statement,
the Company shall be required to keep the Registration Statement effective
until the earlier of (x) such time as all of the shares offered thereby have
been disposed of in accordance with the intended methods of distribution set
forth in the Registration Statement or (y) the period required by Section 6.a
above plus an extended period equal to the number of days during which any
such suspension was in effect.

                        (2) If the Company delays or suspends the
Registration Statement or requires the Investor to cease sales of shares
pursuant to paragraph (1) above, the Company shall, as promptly as
practicable following the termination of the circumstance which entitled the
Company to do so, take such actions as may be necessary to file or reinstate
the effectiveness of the Registration Statement and/or give written notice to
all Investors authorizing them to resume sales pursuant to the Registration
Statement. If as a result thereof the prospectus included in the Registration
Statement has been amended to comply with the requirements of the Securities
Act, the Company shall enclose such revised prospectus with the notice to
Investor given pursuant to this paragraph 2, and the Investor shall make no
offers or sales of shares pursuant to the Registration Statement other than
by means of such revised prospectus.

                     c. REGISTRATION PROCEDURES.

                        (1) In connection with the filing by the Company of
the Registration Statement, the Company shall furnish to each Investor a copy
of the prospectus, including a preliminary prospectus, in conformity with the
requirements of the Securities Act and such additional copies as are
reasonably requested by the Investor.

                        (2) The Company shall use its best efforts to
register or qualify the Common Shares covered by the Registration Statement
under the securities laws of such states as the Investor shall reasonably
request; PROVIDED, HOWEVER, that the Company shall not be required in
connection with this paragraph (ii) to qualify as a foreign corporation or
execute a general consent to service of process in any jurisdiction.

                        (3) If the Company has delivered final prospectuses
to the Investor and after having done so the prospectus is amended to comply
with the requirements of the Securities Act, the Company shall promptly
notify the Investor and, if requested by the Company, the Investor shall
immediately cease making offers or sales of shares under the Registration
Statement and return all prospectuses to the Company. The Company shall
promptly provide the Investor with revised prospectuses and, following
receipt of the revised prospectuses, the Investor shall be free to resume
making offers and sales under the Registration Statement.

                        (4) The Company shall pay the expenses incurred by it
in complying with its obligations under this Section 6, including all
registration and filing fees, exchange listing fees, fees and expenses of
counsel for the Company, and fees and expenses of accountants for the
Company, but excluding (x) any brokerage fees, selling commissions or

                                       7
<PAGE>

underwriting discounts incurred by the Investor in connection with sales
under the Registration Statement and (y) the fees and expenses of any counsel
retained by Investor.

                     d. REQUIREMENTS OF INVESTOR. The Company shall not be
required to include any Common Shares in the Registration Statement unless
the Investor furnishes to the Company in writing such information regarding
the Investor and the proposed sale of Common Shares by such Investor as the
Company may reasonably request in writing in connection with the Registration
Statement or as shall be required in connection therewith by the SEC or any
state securities law authorities.

                     e. ASSIGNMENT OF RIGHTS. The Investor may not assign any
of its rights under this Section 6 except in connection with the transfer of
some or all of its Common Shares to an affiliated entity or to the limited or
general partner(s) or members of the Investor, PROVIDED each such transferee
agrees in a written instrument delivered to the Company to be bound by the
provisions of this Section 6.

                     f. INDEMNIFICATION.

                        (1) To the extent permitted by law, the Company shall
indemnify and hold the Investor, the partners or officers, directors and
stockholders of the Investor, legal counsel and accountants for the Investor,
any underwriter (as defined in the Securities Act) for the Investor and each
person, if any, who controls the Investor or underwriter within the meaning
of the Securities Act or the Exchange Act, against any losses, claims,
damages or liabilities (joint or several) to which they may become subject
under the Securities Act, the Exchange Act or any state securities laws,
insofar as such losses, claims, damages, or liabilities (or actions in
respect thereof) arise out of or are based upon any of the following
statements, omissions or violations in connection with the Registration
Statement (collectively a "Violation"): (i) any untrue statement or alleged
untrue statement of a material fact contained in such registration statement,
including any preliminary prospectus or final prospectus contained therein or
any amendments or supplements thereto, (ii) the omission or alleged omission
to state therein a material fact required to be stated therein, or necessary
to make the statements therein not misleading, or (iii) any violation or
alleged violation by the Company of the Securities Act, the Exchange Act, any
state securities laws or any rule or regulation promulgated under the
Securities Act, the Exchange Act or any state securities laws; and the
Company will reimburse the Investor, underwriter or controlling person for
any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the indemnity agreement contained in this subsection
6.f(1) shall not apply to amounts paid in settlement of any such loss, claim,
damage, liability or action if such settlement is effected without the
consent of the Company (which consent shall not be unreasonably withheld),
nor shall the Company be liable in any such case for any such loss, claim,
damage, liability or action to the extent that it arises out of or is based
upon a Violation that occurs in reliance upon and in conformity with written
information furnished expressly for use in connection with such registration
by the Investor, underwriter or controlling person; provided further,
however, that the foregoing indemnity agreement with respect to any
preliminary prospectus shall not inure to the benefit of the Investor or
underwriter, or any person

                                       8
<PAGE>

controlling the Investor or underwriter, from whom the person asserting any
such losses, claims, damages or liabilities purchased shares in the offering,
if the Company shall have furnished to the Investor a revised prospectus (by
amendment or supplement) which cures the defect giving rise to such loss,
claim, damage or liability and if a copy of such revised prospectus (as then
amended or supplemented) was not sent or given by or on behalf of the
Investor or underwriter to such person, if required by law so to have been
delivered, at or prior to the written confirmation of the sale of the shares
to such person.

                        (2) To the extent permitted by law, the Investor
shall indemnify and hold harmless the Company, each of its directors, each of
its officers who has signed the registration statement, each person, if any,
who controls the Company within the meaning of the Securities Act, legal
counsel and accountants for the Company, any underwriter, any other party
selling securities in such registration statement and any controlling person
of any such underwriter or other party, against any losses, claims, damages
or liabilities (joint or several) to which any of the foregoing persons may
become subject, under the Securities Act, the Exchange Act or any state
securities laws, insofar as such losses, claims, damages or liabilities (or
actions in respect thereto) arise out of or are based upon any Violation, in
each case to the extent (and only to the extent) that such Violation occurs
in reliance upon and in conformity with written information furnished by the
Investor expressly for use in connection with such registration; and the
Investor will reimburse any person intended to be indemnified pursuant to
this subsection 6.f(2), for any legal or other expenses reasonably incurred
by such person in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the indemnity
agreement contained in this subsection 6.f(2) shall not apply to amounts paid
in settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Investor (which consent
shall not be unreasonably withheld), provided that in no event shall any
indemnity under this subsection 6.f(2) exceed the gross proceeds from the
offering received by such Investor.

                        (3) Promptly after receipt by an indemnified party
under this Section 6.f of notice of the commencement of any action (including
any governmental action), such indemnified party will, if a claim in respect
thereof is to be made against any indemnifying party under this Section 6.f,
deliver to the indemnifying party a written notice of the commencement
thereof and the indemnifying party so desires, jointly with any other
indemnifying party similarly noticed, to assume the defense thereof with
counsel mutually satisfactory to the parties; provided, however, that an
indemnified party (together with all other indemnified parties that may be
inappropriate due to actual or potential differing interests between such
indemnified party and any other party represented by such counsel in such
proceeding. The failure to deliver written notice to the indemnifying party
within a reasonable time of the commencement of any such action, if
prejudicial to its ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this
Section 6.f, but the omission so to deliver written notice to the
indemnifying party will not relieve it of any liability that it may have to
any indemnified party otherwise than under this Section 6.f.

                                       9
<PAGE>

                        (4) If the indemnification provided for in this
Section 6.f is held by a court of competent jurisdiction to be unavailable to
an indemnified party with respect to any loss, liability, claim, damage or
expense referred to herein, then the indemnifying party, in lieu of
indemnifying such indemnified party hereunder, shall contribute to the amount
paid or payable by such indemnified party as a result of such loss,
liability, claim, damage or expense in such proportion as is appropriate to
reflect the relative fault of the indemnifying party on the one hand and of
the indemnified party on the other in connection with the statements or
omissions that resulted in such loss, liability, claim, damage or expense, as
well as any other relevant equitable considerations. The relative fault of
the indemnifying party and of the indemnified party shall be determined by
reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission to state a material fact relates
to information supplied by the indemnifying party or by the indemnified party
and the parties' relevant intent, knowledge, access to information, and
opportunity to correct or prevent such statement or omission.

                        (5) Notwithstanding the foregoing, to the extent that
the provisions on indemnification and contribution contained in the
underwriting agreement entered into in connection with the underwritten
public offering are in conflict with the foregoing provisions, the provisions
in the underwriting agreement shall control.

                  7. CONDITIONS PRECEDENT TO INVESTOR'S OBLIGATIONS. The
obligations of Investor under subsection 1.a of this Agreement are subject to
the fulfillment on or before the Closing of each of the following conditions,
unless expressly waived in writing by the Investor:

                     a. The representations and warranties of the Company
contained in Section 3 shall be true on and as of the Closing with the same
effect as though such representations and warranties had been made on and as
of the date of such Closing, except for representations and warranties made
as of a particular date, which shall be true and correct as of such date.

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

                     c. The President of the Company shall deliver to
Investor at the Closing a certificate stating that the conditions specified
in Sections 7.a and 7.b have been fulfilled and stating that there shall have
been no material adverse change in the business, affairs, operations,
properties, assets or financial condition of the Company since the date of
this Agreement.

                     d. No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by any court or governmental authority of competent jurisdiction
which prohibits the consummation of any of the transactions contemplated by
this Agreement.

                                       10
<PAGE>

                     e. The Company shall have delivered to Investor a
certificate representing the Common Shares, duly registered on the books of
the Company in the name of the Investor.

                     f. Investor shall have received from Orrick, Herrington
& Sutcliffe, LLP, counsel for the Company, an opinion, dated as of the
Closing Date, in substantially the form attached hereto as EXHIBIT A.

                  8. CONDITIONS PRECEDENT TO THE COMPANY'S OBLIGATIONS. The
obligations of the Company to Investor under this Agreement are subject to the
fulfillment on or before the Closing of each of the following conditions by the
Investor, unless expressly waived in writing by the Company:

                     a. The representations and warranties of the Investor
contained in Section 4 shall be true on and as of the Closing with the same
effect as though such representations and warranties had been made on and as
of the date of such Closing, except for representations and warranties made
as of a particular date, which shall be true and correct as of such date.

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

                     c. No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by any court or governmental authority of competent jurisdiction
which prohibits the consummation of any of the transactions contemplated by
this Agreement.

                     d. The Investor shall have delivered the Purchase Price
for the Common Shares.

                  9. FEES AND EXPENSES. Each of Investor and the Company agrees
to pay its own expenses incident to the performance of its obligations
hereunder, including, but not limited to the fees, expenses and disbursements of
such party's counsel, except as is otherwise expressly provided in this
Agreement.

                 10. SURVIVAL OF THE REPRESENTATIONS, WARRANTIES, ETC. The
respective representations, warranties, and agreements made herein by or on
behalf of the parties hereto shall remain in full force and effect for a period
of two years from the Closing Date, regardless of any investigation made by or
on behalf of the other party to this Agreement or any officer, director or
employee of, or person controlling or under common control with, such party and
will survive delivery of and payment for the Common Shares.

                                       11
<PAGE>

                 11. TERMINATION.

                     a. This Agreement may be terminated and the transactions
contemplated by this Agreement may be abandoned at any time prior to the
Closing as follows:

                        (i)  by mutual written consent of the Company and the
Investor; or

                        (ii) by either the Company or the Investor if the
Closing shall not have occurred on or before January 31, 2000 (the
"Termination Date"); provided, however, that the right to terminate this
Agreement under this Section 11 shall not be available to any party whose
failure to fulfill any obligation under this Agreement has been the cause of,
or resulted in, the failure of the Closing to occur on or before the
Termination Date.

                     b. In the event of termination of this Agreement by
either the Company or Investor as provided in this Section 11, this Agreement
shall forthwith become void and have no effect, without any liability or
obligation on the part of the Company or Investor, other than the provisions
of this Section 11 and Section 13, and except to the extent that such
termination results from the willful and material breach by a party of any of
its representations, warranties, covenants or agreements set forth in this
Agreement.

                 12. NOTICES. Unless otherwise provided, any notice required or
permitted under this Agreement shall be given in writing and shall be deemed
effectively given upon delivery by confirmed facsimile or reliable international
courier service or upon personal delivery to the party to be notified.

                 13. MISCELLANEOUS.

                     a. This Agreement may be executed in one or more
counterparts and it is not necessary that signatures of all parties appear on
the same counterpart, but such counterparts together shall constitute but one
and the same agreement.

                     b. This Agreement shall inure to the benefit of and be
binding upon the parties hereto, their respective successors and assigns.

                     c. This Agreement shall be governed by, and construed in
accordance with, the internal laws of the State of California without regard
to principles of conflict of laws.

                     d. The provisions of this Agreement are severable, and
if any clause or provision hereof shall be held invalid, illegal or
unenforceable in whole or in part, such invalidity or unenforceability shall
not in any manner affect any other clause or provision of this Agreement.

                     e. The headings of the sections of this document have
been inserted for convenience of reference only and shall not be deemed to be
a part of this Agreement.

                                       12
<PAGE>

                     f. This Agreement constitutes the entire agreement and
supersedes all prior agreements and understandings, both written and oral,
between the parties hereto with respect to the subject matter of this
Agreement and is not intended to confer upon any person other than the
parties hereto any rights or remedies hereunder or under the terms of the
term sheets between such parties.

                     g. The term "affiliate" is used herein as defined in
Rule 144(a)(1) under the Securities Act.

                                       13
<PAGE>

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

                                           CONDUCTUS, INC.

                                           By:  /s/ Ron Wilderink
                                              ----------------------------------
                                           Name: Ron Wilderink
                                           Title: Chief Financial Officer

No. of Common Shares 500,000              INVESTOR
                    --------

                                           By: /s/ Jon C. Baker
                                              ----------------------------------
                                           Name: Jon C. Baker
                                           Title: Snowdon L.P.
                                                  1119 St. Paul St.
                                                  Baltimore, MD 21202
                                                  (410) 385-2645

<PAGE>

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

                                           CONDUCTUS, INC.

                                           By:  /s/ Ron Wilderink
                                              ----------------------------------
                                           Name: Ron Wilderink
                                           Title: Chief Financial Officer

No. of Common Shares 500,000              INVESTOR
                    --------

                                           By: /s/ Jon C. Baker
                                              ----------------------------------
                                           Name: Jon C. Baker
                                           Title: The Nevis Fund
                                                  1119 St. Paul St.
                                                  Baltimore, MD 21202
                                                  (410) 385-2645

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