Document:

2005 Credit Facility Agreement
                                     Between
            Calypte Biomedical Corporation and Marr Technologies, BV

Securities:                9% Notes, each with term as specified in Section II.c
                           below (the "Note(s)") of the Issuer

Issuer:                    Calypte Biomedical Corporation (the "Issuer" or the
                           "Company")
                           AMEX: HIV

Purchaser:                 Marr Technologies, B.V.

Commitment Amount:         $5,500,000

Use of Proceeds:           General Corporate Purposes

I. Terms of Note Issuance

      a.    Note Issuance: Beginning on the Effective Date and continuing
            through December 31, 2005, the Issuer may issue Notes, in its sole
            discretion (each, a "Note"), which the Purchaser shall be obligated
            to accept, with an aggregate total not to exceed the Commitment
            Amount. Issuer may issue only one Note within any 30 day period.

      b.    Issuance Notice: The Issuer shall indicate its intention to issue a
            Note by delivering to the Purchaser an Issuance Notice (each, an
            "Issuance Notice") via facsimile transmission. The Issuance Notice
            shall specify:

            (i)   The amount of the Note (the "Note Amount");

            (ii)  The date on which the Note is to be effective and funded,
                  which shall be no sooner than 4 business days from the date of
                  the Issuance Notice. If the Issuer wishes the Note to be
                  funded on the fourth business day, the Issuance Notice must be
                  delivered to the Purchaser and such receipt confirmed, before
                  8:30 a.m. ET.

            (iii) A form of Issuance Notice is attached hereto as Exhibit B.

      c.    Note Amount: The Note Amount shall be a minimum of $500,000 in any
            single issuance and the maximum Note Amount shall be $1,500,000.

      d.    The members of the Company's Board of Directors shall, by vote at a
            duly-noticed meeting or by written consent, unanimously approve the
            Company's issuance of any Note under the Agreement.

II. Settlement

      a.    Settlement: Within 24 hours of the Issuer's transmission of the
            Issuance Notice to the Purchaser, Purchaser shall confirm receipt
            thereof. Once the Purchaser confirms the receipt of the Issuance
            Notice, Purchaser shall have 3 business days in which to purchase
            the Note by wire transfer of immediately available funds to the
            Issuer's designated account. At the election of either party, an
            escrow agent may be used.

<PAGE>

      b.    Note Agreement: Each Note issued pursuant to an Issuance Notice
            under this Agreement shall be evidenced by a Note substantially in
            the form of Exhibit A hereto and shall be executed by authorized
            representatives of both Purchaser and Issuer.

      c.    Term of Note. Each Note issued under the terms of this Agreement
            shall have a term of 12 months, except that any Note(s) outstanding
            at the expiration of this Agreement shall be immediately due and
            payable. Each Note shall be repaid upon maturity by wire transfer of
            immediately available funds to the Purchaser's designated account.

      d.    Interest. Interest shall accrue at 9% per annum on any Notes issued
            under the terms of this Agreement and shall be paid in cash upon the
            maturity of the Note. Any amount of principal or interest due in
            respect of a Note which is not paid on its due date shall bear
            interest from the due date until payment (as well after as before
            judgment) at a rate of 11% per annum.

III. General Conditions

      a.    Effective Date: The Effective Date of this agreement shall be
            April 4, 2005.

      b.    Expiration of Agreement. This agreement shall terminate on 31 May
            2006.

      c.    Subsequent Financings: During the term of this Agreement, Issuer
            will notify Purchaser of all offerings for equity financing which it
            may undertake. Equity financings shall, for the purposes of this
            Agreement, be defined as cash received by Issuer from the sale of
            Issuer's common stock, $0.03 par value, or such other equity
            security or other security convertible into shares of Issuer's
            common stock as it may offer from time to time, for cash,
            specifically excluding (i) shares of Common Stock or Common Stock
            Equivalents to consultants, employees, officers, or directors of the
            Company, as compensation for their services to the Company or any of
            its direct or indirect Subsidiaries pursuant to arrangements
            approved by the Board of Directors of the Company and consistent
            with past practice, (ii) the issuance of the Securities pursuant to
            the 8% Convertible Notes and related warrants transaction documents,
            (iii) shares of Common Stock issued and sold in a firm commitment
            underwritten public offering (which shall not include an equity line
            of credit, shelf takedown, or similar financing arrangement)
            resulting in net proceeds to the Company of in excess of
            $15,000,000, (iv) up to 250,000 shares of Common Stock or Common
            Stock Equivalents issuable in connection with an equipment financing
            by Vencore Solutions LLC, (v) issuance of shares of Common Stock to
            Logisticorp, Inc., and Southwest Resource Preservation, Inc., or
            their successors and assigns, based upon the issuance and conversion
            of outstanding convertible debentures, with the issuance of said
            Common Stock not to exceed 700,000 shares, (vi) shares of Common
            Stock issued as consideration for the acquisition of another company
            or business in which the shareholders of the Company do not have an
            ownership interest, which acquisition has been approved by the Board
            of Directors of the Company, (vii) shares of Common Stock issued in
            connection with Anti-Dilution Entitlements or New Entitlements (each
            as defined in the Amendment to Securities Purchase Agreement dated

<PAGE>

            on or about the date hereof), or (viii) shares of Common Stock or
            Common Stock Equivalents issued in connection with Strategic
            Transactions, which shall be defined as a transaction or
            relationship in which the Company issues shares of Common Stock or
            other securities of the Company to a Person which is, itself or
            through its subsidiaries, an operating company in a business
            synergistic with the business of the Company and in which the
            Company receives benefits in addition to the investment of funds,
            but shall not include a transaction in which the Company is issuing
            securities primarily for the purpose of raising capital or to an
            entity whose primary business is investing in securities. Strategic
            Transaction includes bona fide equipment or real property leases,
            sale and leaseback, or licensing agreements, provided that such
            transaction is approved by the Board of Directors of the Company and
            is not for the purpose of raising capital.

              .i. Issuer will grant Purchaser the right of first refusal to
                  participate in any such subsequent equity financings on the
                  same key terms and conditions, which shall include the dollar
                  investment amount or number of shares to be purchased,
                  pricing, number of warrants and their terms, if any,
                  registration rights and fees, as applicable to the subject
                  offer. Purchaser shall inform Issuer of its decision to
                  participate in any subsequent equity financing within two
                  business days of notice from Issuer. Such right shall
                  terminate on the later of (a) 31 December 2005 or (b) the last
                  date on which a Note is outstanding under this Agreement.

              ii. Regardless of Purchaser's election to participate in any such
                  subsequent equity financings, the Total Note Purchase
                  Commitment under this Agreement shall be decreased dollar for
                  dollar by the net amount of such subsequent equity financing
                  completed by Issuer after the closing of the 8% Senior
                  Convertible Note financing.

      e.    Issuance of Warrant. As a fee for the Note purchase commitment
            evidenced by this Agreement, Issuer agrees to grant, on the
            Effective Date, a warrant to purchase 500,000 shares of its common
            stock, $0.03 par value, at a price of $0.40 per share, but in no
            case less than the closing trade price of Issuer's Common Stock on
            the Effective Date. The warrant shall be exercisable beginning six
            months following the grant date and shall have a term of five years
            from the Effective Date.

                  The Warrant shall be issued to:

                                    Marr Technologies BV
                                    Strawinskylaan 1431
                                    1077XX Amsterdam
                                    Netherlands

                  or to such other party as may be directed by Purchaser. A form
                  of warrant is attached as Exhibit C.

      f.    Non-utilization of Commitment. No utilization of this Credit
            Facility may be made if, at the time the Issuance Notice is tendered
            to Purchaser or at the time the Note is issued, an event of default
            or an event which, with the giving of notice or lapse of time or
            both, would constitute an event of default (the "Event of Default")
            has occurred and is continuing or would result from such utilization
            of this facility.

<PAGE>

      g.    Events of Default. Purchaser may, without prejudice to its other
            rights hereunder, terminate its obligation to purchase the Notes and
            declare all outstanding amounts owing to Purchaser pursuant to Notes
            issued under this Agreement, together with all accrued interest and
            such other payments payable under this Agreement, immediately due
            and payable at any time after any of the following events shall have
            occurred:

            i.    The Issuer defaults in the due performance or observance of
                  any of its obligations under this agreement and, if such
                  default is, in the opinion of the Purchaser, capable of
                  remedy, such default shall not have been remedied within 14
                  days of the Purchaser notifying the Issuer of such default; or

            ii.   Any judgment or order of a court of competent jurisdiction in
                  an amount exceeding $10,000 made against the Issuer is not
                  stayed or complied with within 21 days or if an encumbrancer
                  takes possession of the whole or part of the assets, rights,
                  or revenues of the Issuer or a distress or other process is
                  levied or enforced upon any of the assets, rights or revenues
                  of the Issuer and is not discharged within 21 days; or

            iii.  The Issuer is adjudicated and found insolvent or any step is
                  taken or proceedings are commenced for the winding-up,
                  administration, liquidation, restructuring or dissolution of
                  the Issuer or for the appointment of a liquidator, trustee in
                  bankruptcy, receiver or similar officer in respect of the
                  Issuer or the whole or any part of its assets, rights, or
                  revenues; or

            iv.   The Issuer is, or has been deemed to be, unable to, or admits
                  inability to, pay its debts as they come due or it commences
                  negotiations with one or more if its creditors with a view to
                  the general rescheduling of all or any of its debts or
                  proposes or enters into any composition or other arrangement
                  for the benefit of its creditors generally, or of any class
                  thereof; or

            v.    The common stock of the Issuer ceases to be listed on the
                  American Stock Exchange; or

            vi.   Any other event occurs or circumstance arises which is likely
                  to have a material adverse effect on the business or financial
                  condition of the Issuer.

This agreement is executed and binding as of the last date executed by the
signers below..

             The remainder of this page is intentionally left blank.

<PAGE>

Calypte Biomedical Corporation
("Issuer") A Delaware Corporation

By:________________________________

Title:  ______________________________

Date:  ______________________________

Marr Technologies, B.V.
("Purchaser")

By:________________________________

Title:  ______________________________

Date:  ______________________________

<PAGE>

                                                                       EXHIBIT A

                             FORM OF PROMISSORY NOTE

$_____________
                                                                          [Date]
                                                          Pleasanton, California

      FOR VALUE RECEIVED, Calypte Biomedical Corporation, a Delaware corporation
(the "Borrower") promises to pay to the order of Marr Technologies, B.V. (the
"Payee"), the principal amount of ____________________________________ and
No/100 Dollars ($__________.00) ("Principal"). The unpaid Principal due under
this Note shall bear interest from the date hereof until paid, computed at a
rate equivalent of 9% per annum (computed on the basis of a 360-day year and
actual days elapsed).

      This Note shall be payable in full twelve months from the date hereof, or
on May 31, 2006, if earlier (the "Maturity Date"). All accrued interest on the
entire unpaid principal shall likewise be due on the Maturity Date. Any amount
of principal or interest due in respect of a Note which is not paid on its due
date shall bear interest from the due date until payment (as well after as
before judgment) at a rate of 11% per annum

      Payment of the Principal and interest shall be made in lawful money of the
United States in the form of a wire transfer of immediately available funds to
an account specified by Payee or at such other place as Payee may from time to
time direct in writing. Payee shall be entitled to assign its rights hereunder,
and in the event of such assignment, any references to "Payee" herein shall
include such subsequent holder or holders.

      No delay on the part of the Payee in exercising any right under this Note,
or other undertaking securing or affecting this Note shall operate as a waiver
of such right or any other right, nor shall any omission in exercising any right
on the part of the Payee under this Note. In the event this Note is not paid
when due, the Borrower shall pay all costs of collection, including, without
limitation, reasonable attorneys' fees.

      All notices and other communications hereunder shall be in writing and
shall be deemed received (1) upon receipt or refusal thereof, if delivered
personally or via overnight courier service, or (2) upon receipt by the sender
of transmission confirmation, if delivered via facsimile. Notice to either party
hereto, if faxed or sent by overnight courier service, shall be to the following
addresses:

     If to the Payee, to:                  If to the Borrower, to:

     Marr Technologies, BV                 Calypte Biomedical Corporation
     Strawinskylaan 1431                   5000 Hopyard Road, Suite 480
     1077XX Amsterdam                      Pleasanton, CA 94588
     Netherlands                           Attention:  Executive Vice President
     Attention:  Christian Strik              and CFO
     Facsimile:                            Facsimile:  925-730-0146

Any party may change their address for notice by giving all other parties notice
of such change pursuant to this paragraph.

<PAGE>

      At the option of the Borrower, all or any portion of the Principal and
accrued interest due on this Note may be otherwise prepaid without premium or
penalty, the amount of the prepayment to be applied first to accrued interest
and the remainder to any unpaid balance of Principal.

      This Note and the rights and obligations of the parties hereto shall be
governed by and construed in accordance with the laws of the State of Delaware,
without regard to the conflicts of laws principles of the State of Delaware. All
rights of Payee hereunder shall inure to the benefit of its successors and
assigns, and all obligations of the Borrower shall bind its successors and
assigns; provided, however, that this Note and the Borrower's obligations
hereunder shall not be assignable by the Borrower without the prior written
consent of Payee. The Borrower hereby waives presentment, demand, protest,
notice of dishonor and/or protest, notice of nonpayment and all other notices
and demands, and assents to the extension of the time of payment, forbearance or
other indulgence, without notice.

      To induce Payee to accept this Note, the Borrower irrevocably agrees that,
subject to Payee's sole and absolute election, all actions or proceedings, in
any way, manner or respect, arising out of or from or related to this Note shall
be litigated in courts having situs within the City of Wilmington, State of
Delaware. The Borrower hereby consents and submits to the jurisdiction of any
local, state or federal court located within said City and State. The Borrower
hereby waives any right it may have to transfer or change the venue of any
litigation brought against the Borrower by Payee in accordance with this
paragraph, and the Borrower hereby specifically waives any right to assert the
doctrine of forum non conveniens.

      THE BORROWER IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION,
SUIT, COUNTERCLAIM, OR PROCEEDING (I) TO ENFORCE OR DEFEND ANY RIGHTS UNDER OR
IN CONNECTION WITH THIS NOTE OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT
DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH, OR
(II) ARISING FROM ANY DISPUTE OR CONTROVERSY IN CONNECTION WITH OR RELATED TO
THIS NOTE OR ANY SUCH AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT, AND AGREES
THAT ANY SUCH ACTION, SUIT COUNTERCLAIM OR PROCEEDING SHALL BE TRIED BEFORE A
COURT AND NOT BEFORE A JURY.

      All of Payee's rights and remedies under this Note are cumulative and
non-exclusive. The acceptance by Payee of any partial payment made hereunder
after the time when any of the Borrower's liabilities become due and payable
will not establish a custom or waive any rights of Payee to enforce prompt
payment hereof. Payee's failure to require strict performance by the Borrower of
any provision of this Note shall not waive, affect or diminish any right of
Payee thereafter to remain in strict compliance and performance herewith.

      IN WITNESS WHEREOF, Calypte Biomedical Corporation has executed and
delivered this Promissory Note the day and year first written above.

                                               CALYPTE BIOMEDICAL CORPORATION

                                               By:
                                                  ------------------------------
                                                  Richard R. Brounstein
                                                  Executive Vice President
                                                  and Chief Financial Officer

<PAGE>

                                                                       Exhibit B

                                     Form Of

                                 ISSUANCE NOTICE

                         Calypte Biomedical Corporation

             The undersigned hereby certifies, with respect to a 9% Note of
    Calypte Biomedical Corporation (the "Company") issuable in connection
    with this Issuance Notice dated __________________ (the "Issuance
    Notice"), delivered pursuant to the 2005 Credit Facility Agreement
    dated as of April 4, 2005 (the "Agreement"), as follows:

             1. The undersigned is the duly appointed _________________ of
the Company.

             2. The Note Amount is $____________.

             3. The Settlement Date shall be _________, 2005.

    The undersigned has executed this Notice this ___th day of ___________ 2005.

                                              CALYPTE BIOMEDICAL CORPORATION

                                              By:
                                                 -----------------------------
                                                 Name:
                                                 Title:

<PAGE>

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED ("1933 ACT"), OR ANY STATE SECURITIES LAWS AND SHALL NOT
BE SOLD, PLEDGED, HYPOTHECATED, DONATED, OR OTHERWISE TRANSFERRED, WHETHER OR
NOT FOR CONSIDERATION, BY THE HOLDER EXCEPT UPON THE ISSUANCE TO THE COMPANY OF
A FAVORABLE OPINION OF ITS COUNSEL OR THE SUBMISSION TO THE COMPANY OF SUCH
OTHER EVIDENCE AS MAY BE SATISFACTORY TO COUNSEL FOR THE COMPANY, IN EITHER
CASE, TO THE EFFECT THAT ANY SUCH TRANSFER SHALL NOT BE IN VIOLATION OF THE 1933
ACT AND APPLICABLE STATE SECURITIES LAWS.

                         CALYPTE BIOMEDICAL CORPORATION

                          Common Stock Purchase Warrant
                                       to
                             Purchase 500,000 Shares
                                       of
                                  Common Stock

                      Original Issue Date: Apirl 4, 2005

                This Common Stock Purchase Warrant is issued to:

                              Marr Technologies BV
                               Strawinskylaan 1439
                       1077XX Amsterdam, The Netherlands

by CALYPTE BIOMEDICAL CORPORATION, a Delaware corporation (hereinafter called
the "Company", which term shall include its successors and assigns).

      FOR VALUE RECEIVED and subject to the terms and conditions hereinafter set
out, the registered holder of this Warrant as set forth on the books and records
of the Company (the "Holder") is entitled upon surrender of this Warrant to
purchase from the Company 500,000 fully-paid and non-assessable shares of Common
Stock, $0.03 par value per share (the "Common Stock"), at the Exercise Price (as
defined below) per share.

      This Warrant shall expire at the close of business on April 3, 2010.

      1. (a) The right to purchase shares of Common Stock represented by this
Warrant may be exercised by the Holder, in whole or in part, by the surrender of
this Warrant (properly endorsed if required) at the principal office of the
Company at 5000 Hopyard Road, Suite 480, Pleasanton, California 94588 (or such
other office or agency of the Company as it may designate by notice in writing
to the Holder at the address of the Holder appearing on the books of the
Company), and upon payment to the Company, by cash or by certified check or bank
draft, of the Exercise Price for such shares. The Company agrees that the shares
of Common Stock so purchased shall be deemed to be issued to the Holder as the
record owner of such shares of Common Stock as of the close of business on the
date on which this Warrant shall have been surrendered and payment made for such
shares of Common Stock as aforesaid. Certificates for the shares of Common Stock
so purchased (together with a cash adjustment in lieu of any fraction of a
share) shall be delivered to the Holder within a reasonable time, not exceeding
five (5) business days, after the rights represented by this Warrant shall have

<PAGE>

been so exercised, and, unless this Warrant has expired, a new Warrant
representing the number of shares of Common Stock, if any, with respect to which
this Warrant shall not then have been exercised, in all other respects identical
with this Warrant, shall also be issued and delivered to the Holder within such
time, or, at the request of the Holder, appropriate notation may be made on this
Warrant and the same returned to the Holder.

          (b) This Warrant may be exercised to acquire, from and after the
date which is six months hereafter, the number of shares of Common Stock set
forth on the first page hereof (subject to adjustments described in this
Warrant); provided, however, the right hereunder to purchase such shares of
Common Stock shall expire at 5:00 p.m. Pleasanton, California time on April 3,
2010.

      2. This Warrant is being issued by the Company pursuant to the terms of
the 2005 Credit Facility Agreement between Calypte Biomedical Corporation and
Marr Technologies BV.

      3. The Company covenants and agrees that all Common Stock upon issuance
against payment in full of the Exercise Price by the Holder pursuant to this
Warrant will be validly issued, fully paid and non-assessable and free from all
taxes, liens and charges with respect to the issue thereof (except to the extent
resulting from the Holder's own circumstances, actions or omissions). The
Company covenants and agrees that during the period within which the rights
represented by this Warrant may be exercised, the Company will have at all times
authorized, and reserved for the purpose of issue or transfer upon exercise of
the rights evidenced by this Warrant, a sufficient number of shares of Common
Stock to provide for the exercise of the rights represented by this Warrant, and
will procure at its sole expense upon each such reservation of shares the
listing thereof (subject to issuance or notice of issuance) on all stock
exchanges on which the Common Stock is then listed or inter-dealer trading
systems on which the Common Stock is then traded. The Company will take all such
action as may be necessary to assure that such shares of Common Stock may be so
issued without violation of any applicable law or regulation, or of any
requirements of any national securities exchange upon which the Common Stock may
be listed or inter-dealer trading system on which the Common Stock is then
traded. The Company will not take any action which would result in any
adjustment in the number of shares of Common Stock purchasable hereunder if the
total number of shares of Common Stock issuable pursuant to the terms of this
Warrant after such action upon full exercise of this Warrant and, together with
all shares of Common Stock then outstanding and all shares of Common Stock then
issuable upon exercise of all options and other rights to purchase shares of
Common Stock then outstanding, would exceed the total number of shares of Common
Stock then authorized by the Company's Restated and Amended Articles of
Incorporation, as then amended.

      4. The Initial Exercise Price is the greater of (i) $0.40 or (ii) the
quoted closing trade price on the Original Issue Date per share of Common Stock
("Initial Exercise Price"). The Initial Exercise Price shall be adjusted as
provided for below in this Section 4 (the Initial Exercise Price, and the
Initial Exercise Price, as thereafter then adjusted, shall be referred to as the
"Exercise Price") and the Exercise Price from time to time shall be further
adjusted as provided for below in this Section 4. Upon each adjustment of the
Exercise Price, the Holder shall thereafter be entitled to receive upon exercise
of this Warrant, at the Exercise Price resulting from such adjustment, the
number of shares of Common Stock obtained by (i) multiplying the Exercise Price
in effect immediately prior to such adjustment by the number of shares of Common
Stock purchasable hereunder immediately prior to such adjustment, and (ii)
dividing the product thereof by the Exercise Price resulting from such
adjustment. The Exercise Price shall be adjusted as follows:

<PAGE>

            (i) In the case of any amendment to the Company's Articles of
Incorporation to change the designation of the Common Stock or the rights,
privileges, restrictions or conditions in respect to the Common Stock or
division of the Common Stock, this Warrant shall be adjusted so as to provide
that upon exercise thereof, the Holder shall receive, in lieu of each share of
Common Stock theretofore issuable upon such exercise, the kind and amount of
shares, other securities, money and property receivable upon such designation,
change or division by the Holder issuable upon such exercise had the exercise
occurred immediately prior to such designation, change or division. This Warrant
shall be deemed thereafter to provide for adjustments, which shall be as nearly
equivalent as may be practicable to the adjustments provided for in this Section
4. The provisions of this Subsection 4(i) shall apply in the same manner to
successive reclassifications, changes, consolidations and mergers.

            (ii) If the Company shall at any time subdivide its outstanding
shares of Common Stock into a greater number of shares of Common Stock, or
declare a dividend or make any other distribution upon the Common Stock payable
in shares of Common Stock, the Exercise Price in effect immediately prior to
such subdivision or dividend or other distribution shall be proportionately
reduced, and conversely, in case the outstanding shares of Common Stock shall be
combined into a smaller number of shares of Common Stock, the Exercise Price in
effect immediately prior to such combination shall be proportionately increased.

            (iii) If any capital reorganization or reclassification of the
capital stock of the Company, or any consolidation or merger of the Company with
or into another corporation or other entity, or the sale of all or substantially
all of the Company's assets to another corporation or other entity shall be
effected in such a way that holders of shares of Common Stock shall be entitled
to receive stock, securities, other evidence of equity ownership or assets with
respect to or in exchange for shares of Common Stock, then, as a condition of
such reorganization, reclassification, consolidation, merger or sale (except as
otherwise provided below in this Section 4), lawful and adequate provisions
shall be made whereby the Holder shall thereafter have the right to receive upon
the exercise hereof upon the basis and upon the terms and conditions specified
herein, such shares of stock, securities, other evidence of equity ownership or
assets as may be issued or payable with respect to or in exchange for a number
of outstanding shares of such Common Stock equal to the number of shares of
Common Stock immediately theretofore purchasable and receivable upon the
exercise of this Warrant under this Section 4 had such reorganization,
reclassification, consolidation, merger or sale not taken place, and in any such
case appropriate provisions shall be made with respect to the rights and
interests of the Holder to the end that the provisions hereof (including,
without limitation, provisions for adjustments of the Exercise Price and of the
number of shares of Common Stock receivable upon the exercise of this Warrant)
shall thereafter be applicable, as nearly as may be, in relation to any shares
of stock, securities, other evidence of equity ownership or assets thereafter
deliverable upon the exercise hereof (including an immediate adjustment, by
reason of such consolidation or merger, of the Exercise Price to the value for
the Common Stock reflected by the terms of such consolidation or merger if the
value so reflected is less than the Exercise Price in effect immediately prior
to such consolidation or merger). Subject to the terms of this Warrant, in the
event of a merger or consolidation of the Company with or into another
corporation or other entity as a result of which the number of shares of common
stock of the surviving corporation or other entity issuable to holders of Common
Stock, is greater or lesser than the number of shares of Common Stock
outstanding immediately prior to such merger or consolidation, then the Exercise

<PAGE>

Price in effect immediately prior to such merger or consolidation shall be
adjusted in the same manner as though there were a subdivision or combination of
the outstanding shares of Common Stock. The Company shall not effect any such
consolidation, merger or sale, unless, prior to the consummation thereof, the
successor corporation (if other than the Company) resulting from such
consolidation or merger or the corporation purchasing such assets shall assume
by written instrument executed and mailed or delivered to the Holder, the
obligation to deliver to the Holder such shares of stock, securities, other
evidence of equity ownership or assets as, in accordance with the foregoing
provisions, the Holder may be entitled to receive or otherwise acquire. If a
purchase, tender or exchange offer is made to and accepted by the holders of
more than fifty (50%) percent of the outstanding shares of Common Stock, the
Company shall not effect any consolidation, merger or sale with the person
having made such offer or with any affiliate of such person, unless prior to the
consummation of such consolidation, merger or sale the Holder of this Warrant
shall have been given a reasonable opportunity to then elect to receive upon the
exercise of this Warrant the amount of stock, securities, other evidence of
equity ownership or assets then issuable with respect to the number of shares of
Common Stock in accordance with such offer.

      (iv) In case the Company shall, at any time prior to exercise of this
Warrant, consolidate or merge with any other corporation or other entity (where
the Company is not the surviving entity) or transfer all or substantially all of
its assets to any other corporation or other entity, then the Company shall, as
a condition precedent to such transaction, cause effective provision to be made
so that the Holder of this Warrant upon the exercise of this Warrant after the
effective date of such transaction shall be entitled to receive the kind and
amount of shares, evidences of indebtedness and/or other securities or property
receivable on such transaction by a holder of the number of shares of Common
Stock as to which this Warrant was exercisable immediately prior to such
transaction (without giving effect to any restriction upon such exercise); and,
in any such case, appropriate provision shall be made with respect to the rights
and interest of the Holder of this Warrant to the end that the provisions of
this Warrant shall thereafter be applicable (as nearly as may be practicable)
with respect to any shares, evidences of indebtedness or other securities or
assets thereafter deliverable upon exercise of this Warrant. Upon the occurrence
of any event described in this Section 4(iv), the holder of this Warrant shall
have the right to (i) exercise this Warrant immediately prior to such event at
an Exercise Price equal to lesser of (1) the then Exercise Price or (2) the
price per share of Common Stock paid in such event, or (ii) retain ownership of
this Warrant, in which event, appropriate provisions shall be made so that the
Warrant shall be exercisable at the Holder's option into shares of stock,
securities or other equity ownership of the surviving or acquiring entity.

      (v) Subsequent Equity Sales

            (a) If the Company or any subsidiary thereof, as applicable,  at any
            time prior to the one year  anniversary  of the Original Issue Date,
            shall  issue  shares of Common  Stock or  Common  Stock  Equivalents
            (which shall mean any  securities  of the Company or any  Subsidiary
            which  entitle  the holder  thereof to acquire  Common  Stock at any
            time,  including  without  limitation,  any debt,  preferred  stock,
            rights,  options,  warrants or other  instrument that is at any time
            convertible  into or  exchangeable  for, or  otherwise  entitles the
            holder  thereof to receive,  Common Stock or other  securities  that
            entitle the holder to receive, directly or indirectly, Common Stock)
            entitling  any Person to acquire  shares of Common  Stock at a price

<PAGE>

            per share less than the Exercise  Price (if the holder of the Common
            Stock or  Common  Stock  Equivalent  so  issued  shall at any  time,
            whether  by  operation   of  purchase   price   adjustments,   reset
            provisions,  floating  conversion,  exercise or  exchange  prices or
            otherwise,  or  due  to  warrants,   options  or  rights  issued  in
            connection  with such  issuance,  be entitled  to receive  shares of
            Common Stock at a price less than the Exercise Price,  such issuance
            shall be deemed to have occurred for less than the Exercise  Price),
            then, the Exercise Price shall be reduced to equal such lower price.
            Such  adjustment  shall be made whenever such Common Stock or Common
            Stock Equivalents are issued. The Company shall notify the Holder in
            writing, no later than the Trading Day following the issuance of any
            Common Stock or Common  Stock  Equivalent  subject to this  section,
            indicating  therein the applicable  issuance price, or of applicable
            reset price,  exchange  price,  conversion  price and other  pricing
            terms.

            (b) For purposes of this subsection 4(v), the following  subsections
            (v)(b)(l) to (v)(b)(3) shall also be applicable:

                  (1)  Issuance  of Rights or  Options.  In case at any time the
            Company shall in any manner grant (directly and not by assumption in
            a merger or otherwise) any warrants or other rights to subscribe for
            or to purchase,  or any options for the purchase of, Common Stock or
            any stock or security  convertible  into or exchangeable  for Common
            Stock (such warrants,  rights or options being called  "Options" and
            such  convertible or exchangeable  stock or securities  being called
            "Convertible  Securities")  whether or not such Options or the right
            to  convert  or  exchange  any  such   Convertible   Securities  are
            immediately  exercisable,  and the price per share for which  Common
            Stock is  issuable  upon the  exercise  of such  Options or upon the
            conversion or exchange of such Convertible Securities (determined by
            dividing  (i) the sum (which  sum shall  constitute  the  applicable
            consideration)  of  (x)  the  total  amount,  if  any,  received  or
            receivable by the Company as consideration  for the granting of such
            Options,  plus (y) the aggregate amount of additional  consideration
            payable to the Company upon the exercise of all such  Options,  plus
            (z),  in the  case of  such  Options  which  relate  to  Convertible
            Securities,  the aggregate  amount of additional  consideration,  if
            any, payable upon the issue or sale of such  Convertible  Securities
            and upon the  conversion  or  exchange  thereof,  by (ii) the  total
            maximum  number of shares of Common Stock issuable upon the exercise
            of such  Options  or upon the  conversion  or  exchange  of all such
            Convertible  Securities  issuable upon the exercise of such Options)
            shall be less than the Exercise Price in effect immediately prior to
            the time of the granting of such  Options,  then the total number of
            shares of Common Stock issuable upon the exercise of such Options or
            upon conversion or exchange of the total amount of such  Convertible
            Securities  issuable  upon the  exercise  of such  Options  shall be
            deemed to have been  issued  for such price per share as of the date
            of granting  of such  Options or the  issuance  of such  Convertible
            Securities  and  thereafter  shall be deemed to be  outstanding  for
            purposes  of  adjusting  the  Exercise  Price.  Except as  otherwise
            provided in  subsection  4(v)(b)(3),  no  adjustment of the Exercise
            Price shall be made upon the actual issue of such Common Stock or of
            such  Convertible  Securities  upon exercise of such Options or upon
            the actual issue of such Common Stock upon conversion or exchange of
            such Convertible Securities.

<PAGE>

                  (2) Issuance of  Convertible  Securities.  In case the Company
            shall in any  manner  issue  (directly  and not by  assumption  in a
            merger or otherwise) or sell any Convertible Securities,  whether or
            not  the  rights  to  exchange  or  convert  any  such   Convertible
            Securities are immediately exercisable,  and the price per share for
            which  Common  Stock is issuable  upon such  conversion  or exchange
            (determined by dividing (i) the sum (which sum shall  constitute the
            applicable  consideration)  of (x)  the  total  amount  received  or
            receivable by the Company as consideration  for the issue or sale of
            such  Convertible  Securities,  plus  (y) the  aggregate  amount  of
            additional  consideration,  if any,  payable to the Company upon the
            conversion or exchange  thereof,  by (ii) the total number of shares
            of Common Stock issuable upon the conversion or exchange of all such
            Convertible  Securities)  shall be less than the  Exercise  Price in
            effect immediately prior to the time of such issue or sale, then the
            total  maximum  number  of  shares of  Common  Stock  issuable  upon
            conversion or exchange of all such  Convertible  Securities shall be
            deemed to have been  issued  for such price per share as of the date
            of the issue or sale of such  Convertible  Securities and thereafter
            shall be deemed to be  outstanding  for  purposes of  adjusting  the
            Exercise  Price,  provided that (a) except as otherwise  provided in
            subsection 4(v)(b)(3),  no adjustment of the Exercise Price shall be
            made upon the actual  issuance of such Common Stock upon  conversion
            or  exchange  of such  Convertible  Securities  and  (b) no  further
            adjustment  of the  Exercise  Price  shall be made by  reason of the
            issue or sale of Convertible Securities upon exercise of any Options
            to purchase any such Convertible Securities for which adjustments of
            the Exercise  Price have been made pursuant to the other  provisions
            of subsection 4(v).

                  (3)  Change  in  Option  Price or  Conversion  Rate.  Upon the
            happening of any of the following  events,  namely,  if the purchase
            price  provided  for  in  any  Option   referred  to  in  subsection
            4(v)(b)(l)  hereof,  the additional  consideration,  if any, payable
            upon  the  conversion  or  exchange  of any  Convertible  Securities
            referred to in subsections  4(v)(b)(l) or 4(v(b)(2),  or the rate at
            which Convertible  Securities referred to in subsections  4(v)(b)(l)
            or 4(v)(b)(2) are convertible  into or exchangeable for Common Stock
            shall  change at any time  (including,  but not limited to,  changes
            under  or by  reason  of  provisions  designed  to  protect  against
            dilution),  the  Exercise  Price in effect at the time of such event
            shall forthwith be readjusted to the Exercise Price which would have
            been  in  effect  at such  time  had  such  Options  or  Convertible
            Securities  still  outstanding  provided for such  changed  purchase
            price, additional  consideration or conversion rate, as the case may
            be,  at  the  time  initially  granted,   issued  or  sold.  On  the
            termination of any Option for which any adjustment was made pursuant
            to  this  subsection  4(v)  or any  right  to  convert  or  exchange
            Convertible Securities for which any adjustment was made pursuant to
            this  subsection  4(v)  (including   without   limitation  upon  the
            redemption  or  purchase  for   consideration  of  such  Convertible
            Securities  by the  Company),  the  Exercise  Price  then in  effect
            hereunder  shall  forthwith be changed to the  Exercise  Price which
            would have been in effect at the time of such  termination  had such
            Option  or  Convertible   Securities,   to  the  extent  outstanding
            immediately prior to such termination, never been issued.

<PAGE>

            (c) Notwithstanding the foregoing,  no adjustment will be made under
            this  paragraph  (v) in respect of: (1) the  issuance of  securities
            upon the  exercise or  conversion  of any Common  Stock  Equivalents
            issued  by the  Company  prior to the  Original  Issue  Date of this
            Warrant  (but  this  subsection  (v) will  apply to any  amendments,
            modifications,  and  reissuances  thereof  and  as a  result  of any
            changes,  resets or  adjustments  to a Conversion or Exchange  Price
            thereunder whether or not as a result of any amendment, modification
            or  reissuance),  or (2) the grant of  options or  warrants,  or the
            issuance of additional securities, under any duly authorized Company
            stock option,  stock incentive plan,  restricted stock plan or stock
            purchase  plan  in  existence  on the  Closing  Date  or  thereafter
            approved by the stockholders of the Company, or (3) shares of Common
            Stock or Common Stock Equivalents issued to consultants,  employees,
            officers or  directors  of the Company,  as  compensation  for their
            services   to  the   Company  or  any  of  its  direct  or  indirect
            Subsidiaries  pursuant  to  arrangements  approved  by the  Board of
            Directors of the Company and consistent  with past practice,  or (4)
            the issuance of the Securities pursuant to the Transaction Documents
            (as defined in the Notes  Purchase  Agreement  dated on or about the
            date hereof),  or (5) up to 250,000 shares of Common Stock or Common
            Stock Equivalents issuable in connection with an equipment financing
            by Vencore  Solutions,  LLC, or (6) the  issuance of Common Stock to
            Logisticorp,  Inc., and Southwest  Resource  Preservation,  Inc., or
            their successors and assigns, based upon the issuance and conversion
            of  outstanding  convertible  debentures,  with the issuance of said
            Common Stock not to exceed 700,000  shares,  or (7) shares of Common
            Stock issued as consideration for the acquisition of another company
            or business in which the  shareholders of the Company do not have an
            ownership interest, which acquisition has been approved by the Board
            of Directors of the  Company,  or (8) pursuant to the  Anti-Dilution
            Entitlements and New Entitlements  (each as defined in the Amendment
            to Securities Purchase Agreement dated on or about the date hereof),
            or (9) shares of Common Stock or Common Stock Equivalents  issued in
            connection with Strategic Transactions,  which shall be defined as a
            transaction  or  relationship  in which the Company issues shares of
            Common  Stock or other  securities  of the Company to a Person which
            is, itself or through its  subsidiaries,  an operating  company in a
            business  synergistic  with the business of the Company and in which
            the Company  receives  benefits in  addition  to the  investment  of
            funds,  but shall not include a transaction  in which the Company is
            issuing  securities  primarily for the purpose of raising capital or
            to an entity whose  primary  business is  investing  in  securities.
            Strategic  Transaction includes bona fide equipment or real property
            leases, sale and leaseback,  or licensing agreements,  provided that
            such  transaction  is  approved  by the  Board of  Directors  of the
            company and is not for the purpose of raising capital.

<PAGE>

            (d) The adjustments that would arise under this paragraph (v) shall
            only take effect from such time as the Company has obtained
            stockholder approval; and if such stockholder approval is obtained,
            then the adjustments that would have occurred under this paragraph
            (v) for issuance prior to the date of such Stockholder approval
            shall take effect as of the date of such stockholder approval. The
            Company must use its best efforts to seek and obtain stockholder
            approval as soon as possible following, and in any event within 90
            days of, the date of issue of the relevant shares of Common Stock or
            Common Stock Equivalents.

      Whenever the Exercise Price shall be adjusted  pursuant to this Section 4,
the Company shall issue a certificate  signed by its President or Vice President
and by its Treasurer,  Assistant  Treasurer,  Secretary or Assistant  Secretary,
setting forth, in reasonable  detail,  the event  requiring the adjustment,  the
amount of the  adjustment,  the method by which such  adjustment  was calculated
(including  a  description  of the basis on which the Board of  Directors of the
Company made any determination  hereunder),  and the Exercise Price after giving
effect to such  adjustment,  and shall cause copies of such  certificates  to be
mailed (by first-class mail, postage prepaid) to the Holder of this Warrant. The
Company shall make such  certificate  and mail it to the Holder  promptly  after
each adjustment.

      No fractional  shares of Common Stock shall be issued in  connection  with
any exercise of this Warrant, but in lieu of such fractional shares, the Company
shall  make a cash  payment  therefore  equal in  amount to the  product  of the
applicable fraction multiplied by the Exercise Price then in effect.

      5. In the event the Company  grants  rights  (other  than  rights  granted
pursuant to a  shareholder  rights or poison pill plan) to all  shareholders  to
purchase Common Stock,  the Holder shall have the same rights as if this Warrant
had been exercised immediately prior to such grant.

      6. The shares of Common Stock  issuable  upon the exercise of this Warrant
shall have  piggyback  rights for inclusion in the next  registration  statement
filed by the Company with the Securities and Exchange Commission.

      7. This Warrant need not be changed  because of any change in the Exercise
Price or in the number of shares of Common Stock purchased hereunder.

      8. The terms  defined in this  paragraph,  whenever  used in this Warrant,
shall,  unless the context  otherwise  requires,  have the  respective  meanings
hereinafter  specified.  The term  "Common  Stock"  shall mean and  include  the
Company's Common Stock, $0.03 par value per share, authorized on the date of the
original  issue  of  this  Warrant  and  shall  also  include  in  case  of  any
reorganization, reclassification, consolidation, merger or sale of assets of the
character  referred  to in  Section 4 hereof,  the stock,  securities  or assets
provided  for in such  paragraph.  The term  "Company"  shall also  include  any
successor corporation to Calypte Biomedical Corporation by merger, consolidation
or otherwise.  The term  "outstanding"  when used with reference to Common Stock
shall  mean at any  date as of which  the  number  of  shares  thereof  is to be
determined,  all issued shares of Common Stock, except shares then owned or held
by or for the  account  of the  Company.  The term  "1933  Act"  shall  mean the
Securities Act of 1933, as amended,  or any successor  Federal statute,  and the
rules and  regulations of the Securities and Exchange  Commission,  or any other
Federal agency then  administering  the 1933 Act,  there-under,  all as the same
shall be in effect at the time.

      9. This Warrant is  exchangeable,  upon the surrender hereby by the Holder
at the  office  or  agency  of the  Company,  for new  Warrants  of  like  tenor
representing in the aggregate the right to subscribe for and purchase the number
of shares of Common Stock which may be subscribed  for and purchased  hereunder,
each of such new Warrants to represent  the right to subscribe  for and purchase

<PAGE>

such number of shares of Common  Stock as shall be  designated  by the Holder at
the time of such surrender. Upon receipt of evidence satisfactory to the Company
of the loss,  theft,  destruction  or mutilation of this Warrant or any such new
Warrants and, in the case of any such loss, theft, or destruction, upon delivery
of a bond of indemnity,  reasonably satisfactory to the Company, or, in the case
of any such  mutilation,  upon surrender or cancellation of this Warrant or such
new Warrants,  the Company will issue to the Holder a new Warrant of like tenor,
in lieu  of this  Warrant  or such  new  Warrants,  representing  the  right  to
subscribe  for and  purchase  the number of shares of Common  Stock which may be
subscribed for and purchased hereunder.

      10. The  Company  will at no time close its  transfer  books  against  the
transfer  of this  Warrant or of any shares of Common  Stock  issued or issuable
upon the exercise of this warrant in any manner which interferes with the timely
exercise  of this  Warrant.  This  Warrant  shall not  entitle the Holder to any
voting  rights or any rights as a  shareholder  of the  Company.  The rights and
obligations of the Company, of the Holder, and of any holder of shares of Common
Stock issuable hereunder, shall survive the exercise of this Warrant.

      11. This  Warrant  sets forth the entire  agreement of the Company and the
Holder of the Common  Stock  issuable  upon the  exercise of this  Warrant  with
respect  to the rights of the Holder  and the  Common  Stock  issuable  upon the
exercise of this  Warrant,  notwithstanding  the knowledge of such Holder of any
other agreement or the provisions of any agreement,  whether or not known to the
Holder,  and the Company  represents  that there are no agreements  inconsistent
with the terms  hereof or which  purport  in any way to bind the  Holder of this
Warrant or the Common Stock.

      12.  The laws of the  State  of  California  shall  govern  the  validity,
interpretation  and  performance  of this  Warrant  and  each of its  terms  and
provisions.

      IN WITNESS  WHEREOF,  the Company has caused this  Warrant to be signed by
its duly authorized officer.

CALYPTE BIOMEDICAL CORPORATION

  By
    ----------------------------------------
    Name: Richard D. Brounstein
    Title: Executive Vice President & CFO

<PAGE>

                          FORM OF ELECTION TO PURCHASE

(To be executed by the Holder to exercise the right to purchase shares of Common
Stock under the Warrant to which this form applies, issued by Calypte Biomedical
Corporation ("Calypte"))

To Calypte Biomedical Corporation:

      The undersigned hereby irrevocably elects to purchase _____________ shares
of common stock, $0.03 par value per share, of Calypte (the "Common Stock") and,
encloses herewith $________ in cash, certified or official bank check or checks,
which sum  represents  the aggregate  Exercise Price (as defined in the Warrant)
for the  number  of shares of Common  Stock to which  this Form of  Election  to
Purchase relates,  together with any applicable taxes payable by the undersigned
pursuant to the Warrant.

      The undersigned  requests that certificates for the shares of Common Stock
issuable upon this exercise be issued in the name of

                                      PLEASE INSERT SOCIAL SECURITY OR
                                      TAX IDENTIFICATION NUMBER

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

--------------------------------------------------------------------------------
                         (Please print name and address)

Dated:______________,_____            Name of Holder:

                                       (Print)
                                              ----------------------------

                                       (By:)
                                              ----------------------------
                                       (Name:)
                                       (Title:)
                                       (Signature  must conform in all respects
                                       to name of holder as specified on the
                                       face of the Warrant)

<PAGE>

                               FORM OF ASSIGNMENT

[To be completed and signed only upon transfer of Warrant]

      FOR VALUE RECEIVED,  the undersigned  hereby sells,  assigns and transfers
unto  ________________________________  the  right  represented  by  the  within
Warrant to purchase  ____________  shares of Common Stock of Calypte  Biomedical
Corporation  to which the within Warrant  relates and appoints  ________________
attorney to transfer said right on the books of Calypte  Biomedical  Corporation
with full power of substitution in the premises.

Dated:

---------------, ----

                             -----------------------------------------------
                            (Signature  must  conform in all respects to name of
                             holder as specified on the face of the Warrant)

                             -----------------------------------------------
                             Address of Transferee

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

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

In the presence of:

--------------------------EXHIBIT 10.52

                           NEOMEDIA TECHNOLOGIES, INC

                      POLICY STATEMENT ON ETHICAL BEHAVIOR

A.       PURPOSE

         It is the policy of NeoMedia  Technologies,  Inc. (the "Company") to do
         business in compliance with all applicable  laws, rules and regulations
         and accepted  community  ethical and moral  standards.  It has been the
         Company's longstanding policy to maintain the highest ethical standards
         in the conduct of its affairs and in its  relationship  with customers,
         suppliers,  employees,  advisors and the  communities  and countries in
         which its operations are located.

         As an integral  member of the Company team,  you are expected to accept
         certain  responsibilities,  adhere to acceptable business principles in
         matters of  personal  conduct,  and  exhibit a high  degree of personal
         integrity at all times.  This not only involves sincere respect for the
         rights and  feelings  of  others,  but also  demands  that in both your
         business and personal life, you refrain from any behavior that might be
         harmful  to you,  your  co-workers,  or the  Company,  or that might be
         viewed unfavorably by current or potential customers,  or by the public
         at large.  Whether you are on duty or off, your conduct reflects on the
         Company.  You  are,  therefore,   encouraged  to  observe  the  highest
         standards of professionalism at all times.

         It would be  virtually  impossible  to cite  examples  of every type of
         activity  which  might give rise to a question  of  unethical  conduct.
         Therefore,  it is  important  that  each of us  rely  on our  own  good
         judgement in the performance of our duties and  responsibilities.  When
         those  situations  occur where the proper  course of action is unclear,
         request  advice  and  counsel  from  an  officer  of the  Company.  The
         reputation  and good  name of the  Company  depends  entirely  upon the
         honesty and integrity of each one of us.

         Employees should read this Policy Statement with the following in mind:

         1.       The  Company  requires  every  employee  to comply  with these
                  standards.

         2.       This  list  is  not  comprehensive.   The  Company  encourages
                  employees who have questions  about these  standards and their
                  application  to  employee  conduct to discuss  them with their
                  manager,  the Company's counsel, or with the manager in charge
                  of human resources or the Chief Financial Officer.

         3.       An  employee  who knows or has reason to know of any  activity
                  that violates or could violate these  standards  must promptly
                  report  the  matter to the  President  or the Chief  Financial
                  Officer.

         4.       Each  employee  will be given a copy of this Policy  Statement
                  and be asked to sign an Employee Acknowledgement Form.

<PAGE>

B.       RESPONSIBILITY FOR POLICY ENFORCEMENT

         These  principles set forth in this Policy Statement are to be strictly
         observed. Each manager should insure that appropriate procedures are in
         place  such  that  at  the  time  of  employment  or  promotion  into a
         management,  supervisory,  sales or purchasing position an acknowledged
         copy of this Policy  Statement is obtained for  permanent  retention in
         the employees' personnel file.

         In January of each year,

         1.       each Corporate officer and senior management personnel will be
                  asked  to  reaffirm  this  Policy  Statement  by  signing  and
                  returning  to the  Corporate  office  a copy  of  this  Policy
                  Statement, and

         2.       each  manager will ask all  employees to reaffirm  this Policy
                  Statement  by reviewing  the  statements  with each  employee,
                  obtaining two signed copies on the attached  form, one copy of
                  which will be retained in the employee's  personnel file. Each
                  manager  will  notify  the  President  or the Chief  Financial
                  Officer in  writing of  refusals  to sign,  or any  exceptions
                  requested to, this requirement.

         Because  violations are serious matters,  any infraction of this Policy
         Statement  will subject an  employee,  without  regard to position,  to
         disciplinary   action,   which  may   include   reprimand,   probation,
         suspension, reduction in salary, demotion or discharge depending on the
         seriousness of the offense. Claims of ignorance,  overzealousness, good
         intentions  or lack of injury  cannot  excuse  or  justify  acts  which
         violate  this  Policy  Statement.  In  addition,  similar  disciplinary
         measures will apply to any employee who directs,  orders or approves of
         such prohibited  activities,  or has knowledge of them and does not act
         promptly to correct  them in  accordance  with this  Policy  Statement.
         Appropriate  disciplinary  measures will be imposed on any employee who
         fails  to  carry  out the  management  responsibility  to  insure  that
         subordinates are adequately informed about this Policy Statement.

         The Company's attorneys will advise management  concerning the legality
         of corporate conduct and, upon approval from an officer of the Company,
         should be called upon for guidance and counsel if any  questions  arise
         regarding  Company  policy or concerning any proposed  activities  that
         raise any question of possible conflict with this Policy Statement.

         As used in this Policy  Statement,  the term "Company" means and refers
         to  Neomedia   Technologies,   Inc.  and  all  of  its   divisions  and
         subsidiaries,  domestic and foreign,  and the term "employee" means and
         refers  to  the   directors,   officers   and   employees  of  Neomedia
         Technologies, Inc. and all of its divisions and subsidiaries.

C.       COMPLIANCE WITH LAWS AND REGULATIONS

         All  activities of the Company and its employees  shall be conducted in
         compliance with all federal, state and other laws, rules,  regulations,
         orders and judicial decrees. An officer or employee having any question
         as to the validity of any action  proposed to be taken on behalf of the
         Company shall submit it to the President for opinion.

         No claim of business  exigency,  increased sales or profits or business
         opportunity shall excuse any violation of this Policy Statement.
<PAGE>

         In addition to literal compliance with legal requirements, each officer
         and employee  must adhere to and comply with the  overriding  moral and
         ethical  standards  of our  society  in the  conduct of  business.  The
         Company's   interests  are  not  served  by  unethical   practices  and
         activities even though not in technical violation of the law.

D.       GIFTS OF ALL KINDS.

         The purpose of the policy relating to entertainment,  gifts, favors and
         gratuities  is to avoid any  implication  that  unfair or  preferential
         treatment  will be granted or received by the  Company's  employees  in
         their course of dealing on behalf of the Company. A basic consideration
         should  be that  public  disclosure  would not be  embarrassing  to the
         Company or the recipient. The following guidelines are provided for the
         applications of this policy:

         1.       Gifts of cash,  or cash  equivalents,  are  never  permissible
                  regardless of amount;

         2.       An especially  strict standard is imposed on gifts,  services,
                  or  considerations  of any kind  from  suppliers.  Only  those
                  considerations which are deemed common business courtesies and
                  are of an insignificant or nominal value to the recipient will
                  be permitted;

         3.       Gifts, favors, and entertainment may be given to others at the
                  Company's  expense only if they are  consistent  with accepted
                  business  practices  and are of such  limited  value that they
                  cannot be considered as a bribe or payoff.

E.       FAVORS.

         Employees  may not give or  receive  any gifts or favors to or from any
         customer,  supplier,  competitor  (other than a gift of nominal  value)
         without the prior  consent of a manager.  In no event shall an employee
         give or receive a gift in the form of cash, stocks,  bonds, options, or
         similar types of items.

         It is  impermissible  and may be  unlawful to give,  offer,  or promise
         anything of value for the purpose of influencing  someone in connection
         with  Company  business  or a  Company  transaction.  Similarly,  it is
         impermissible  and  may be  unlawful  to  solicit,  demand,  or  accept
         anything  of value with the intent of being  influenced  or rewarded in
         connection  with any Company  business or  transaction.  Therefore,  no
         employee may give or receive any gift it could  reasonably be viewed as
         being done to gain a business advantage.

         Employees  are not prevented  from  incurring  normal  business-related
         expenses  for  entertainment  or from  accepting  personal  mementos of
         minimal  value.  It is acceptable to  occasionally  allow a supplier or
         customer to pay for a business meal.

F.       BRIBES.

         The  Company  will  pay only  those  agents  with  whom it has a formal
         written  agreement and from whom it has an invoice detailing the amount
         to be paid.  Employees  must insure  that  vouchers  properly  identify
         commissions.
<PAGE>

         An  employee  may make  payment  to an agent for only the  amount  that
         constitutes  the proper  remuneration  for the service  rendered by the
         agent.  An employee may not make a commission  or any other  payment if
         that employee knows or has reason to know the payment will be used as a
         bribe.

G.       ANTITRUST LAWS AND TRADE REGULATIONS

         The antitrust laws and  regulations  shall be observed at all times, in
         all situations,  by all employees of the Company. At the heart of these
         laws, price-fixing,  including the exchange of pricing information with
         competitors,  and bid-rigging acts or arrangements  with competitors to
         divide or  allocate  markets or  customers  or exclude  others from the
         market,  are absolutely  prohibited.  Jail  sentences,  fines and heavy
         damages have been imposed on individuals and corporations violating the
         antitrust laws.

         It is  expected  that  employees  whose  activities  are  significantly
         affected  by the  antitrust  laws  will  have a  working  knowledge  of
         permissible  and  impermissible  activities  involved in their work and
         will consult with their superiors and the Company's attorneys,  through
         appropriate  channels,  concerning  any  matter  on which  there is any
         question.

         It is the  responsibility  of all  officers  and  managers to make this
         policy known to, and regularly stress its importance to, employees over
         whom they have supervision,  and to administer and execute this policy.
         They shall continue to call upon the Company's attorneys,  after having
         obtained  proper  authorization,  for such  assistance  and  reviews of
         compliance   procedures  as  they  and  the  Company's  attorneys  deem
         advisable to insure the effectiveness of this policy.

H.       ELECTION CAMPAIGN LAWS

         Federal law  prohibits a  corporation  from  making a  contribution  or
         expenditure in connection with any election at which  Presidential  and
         Vice-Presidential electors, or a Senator or Representative to Congress,
         are to be voted for,  or in  connection  with any  primary  election or
         political  convention  or caucus held to select  candidates  for any of
         these offices.

         Most  states of the  United  States  and many  foreign  countries  have
         similar  laws   prohibiting   corporate   political   contributions  in
         connection with elections to political office.

         It is the policy of the Company that such laws shall be observed by all
         officers  and   employees   and  that  no  corporate   funds  shall  be
         contributed,  expended or reimbursed,  directly or indirectly,  for any
         purpose  contrary  to such  laws.  Any  officer  or  employee  asked to
         contribute  corporate funds, or to contribute funds in such a manner or
         amount  leading to the belief  that  corporate  funds  would be used in
         connection with any political  campaign,  shall immediately  notify the
         President or the Chief Financial Officer.

         This policy, it is emphasized,  relates not only to direct disbursement
         of Company funds but also to indirect contributions or payments made in
         any form or through any means, such as through consultants,  suppliers,
         customers or other third parties or by  reimbursement  to employees for
         personal contributions or payments.

         Even where  political  contributions  are  permitted by law, no Company
         funds in excess of $100.00 in each case shall be used for such purposes
         unless authorized by the President or Chief Financial Officer.
<PAGE>

         Each manager is responsible;

         1.       for disseminating  this policy and stressing its importance to
                  employees  over  whom  they  have  supervision  who  are  in a
                  position to make a contribution  of corporate  funds or obtain
                  reimbursements from the Company therefore,

         2.       for reviewing with the Company's attorneys any questions as to
                  the propriety of any  contribution or expenditure  which could
                  possibly  violate  this  policy  before such  contribution  or
                  expenditure is made, and

         3.       for  reporting  directly to the  President or Chief  Financial
                  Officer of the Company any violation or apparent  violation of
                  this policy.

         This policy does not prohibit or  discourage  any officers or employees
         from  engaging in political  activities  in an  individual  capacity on
         their own time at their  own  expense,  or  during  an unpaid  leave of
         absence,  or from making  political  contributions  or  expenditures of
         their personal funds, or from expressing  views and taking  appropriate
         action as Company  officers or employees with respect to legislative or
         political matters affecting the Company.

I.       RELATIONSHIP WITH GOVERNMENTAL AGENCIES AND OFFICIALS

         Payments,  regardless of amount, or gifts or entertainment of more than
         nominal value to employees of the United States and any other  domestic
         or  foreign  jurisdiction,  regardless  of  motive,  are  viewed by the
         Company  as  improper  and they are not to be  permitted.  In  addition
         federal law imposes criminal  penalties on Corporations and individuals
         violating  these  laws.  It is  important  that all  Company  personnel
         realize that our relationship with agencies and public officials should
         in all respects be of such a nature that the integrity  and  reputation
         of the  officials and the Company will not be impugned in the event the
         full details of the relationship, including any gifts or entertainment,
         become a matter of public record.

J.       PROPER ACCOUNTING FOR FUNDS, ASSETS AND DISBURSEMENTS

         Employees are forbidden to use, directly or indirectly, corporate funds
         and assets for any unlawful purpose or to accomplish any unlawful goal.
         The  Company  also  prohibits  the   establishment  or  maintenance  of
         undisclosed or unrecorded funds and assets.

         All reporting information should be accurate and timely.  Employees may
         not make any false or misleading entries in any books and records.

         It is essential that at all times there be full and accurate accounting
         for funds  and other  assets of the  Company  by those  entrusted  with
         control over them and that all  disbursements  or uses of Company funds
         be legal and be fully  documented,  and be  accurately  recorded in its
         accounts. To this end, these standards must be observed:

         1.       The use of assets of the Company for any personal, unlawful or
                  improper purpose is strictly prohibited.
<PAGE>

         2.       No  undisclosed  or  unrecorded  fund or asset of the  Company
                  shall be established for any purpose.

         3.       No false or misleading  entries shall be made in the books and
                  records of the Company for any reason,  and no employee  shall
                  engage in any  arrangement  that  results  in such  prohibited
                  acts.

         4.       No payment on behalf of the Company shall be approved  without
                  adequate  supporting  documentation or made with the intention
                  or  understanding  that any part of such payment is to be used
                  for any purpose  other than that  described  by the  documents
                  supporting the payment.

         5.       No employee  shall  accept any bribes or  kickbacks or make or
                  offer any bribe to anyone  within or outside  the  Company for
                  any purpose of advantage to the Company or to any individual.

         6.       All  employees  having  management,   supervisory,   auditing,
                  accounting,   bookkeeping,   and  other  similar  and  related
                  responsibilities   shall  be  familiar  with  the   accounting
                  responsibilities  of the Foreign  Corrupt  Practices  Act, and
                  regulations thereunder and shall observe its provisions.

         7.       Employees  dealing  with  or in  foreign  countries  shall  be
                  familiar with the provisions of the Foreign Corrupt  Practices
                  Act,  and  regulations  thereunder,   and  shall  observe  its
                  provisions  in all  transactions  with  foreign  nationals  or
                  companies.

         Any officer or employee  having  knowledge  of any act or  circumstance
         which is  prohibited  by the  foregoing  paragraphs  shall  immediately
         report the matter to the  President or Chief  Financial  Officer of the
         Company. Any question as to the legality of any payment for consultants
         or other  similar  fees shall be  submitted  to the  President or Chief
         Financial Officer of the Company for opinion.

         The Chief Financial  Officer shall maintain  procedures to preclude the
         accumulation  of funds which are not  recorded on the books and records
         of the  Company.  The internal  accounting  department  shall  maintain
         suitable  written audit and other  controls to monitor  compliance  and
         reveal any violations of these policies.

K.       CONFLICTS OF INTEREST - OUTSIDE ACTIVITIES

         If an  employee  is hired for a position  that gives the  employee  the
         authority  to spend  Company  funds  or set  Company  policy,  it is an
         implicit  condition of his or her employment  that the employee use the
         authority in the Company's interest.

         Every  employee  is  prohibited  from  partaking  in  any  activity  or
         association  that  creates or appears to create a conflict  between the
         employee's personal interest and the Company's business  interests.  In
         addition, no employee must allow any situation or personal interests to
         interfere  with the  exercise  of  independent  judgment  or with  that
         employee's ability to act in the best interests of the Company.

         The term "conflict of interest"  describes any circumstance  that would
         cast doubt on an employee's  ability to act with total objectivity with
         regard to the  Company's  interest.  Each employee is expected to avoid
         any action or involvement  which would in any way compromise his or her
         actions on behalf of the Company.
<PAGE>

         Circumstances  in  which a  conflict  of  interest  on the  part of any
         employee shall be deemed to exist include,  but are not limited to, the
         following:

         1.       Relationships with suppliers, contractors or customers:

                  (a)      Ownership  of a material  interest  in any  supplier,
                           contractor,  subcontractor,  customer or other entity
                           (other than an affiliate  of the Company)  with which
                           the Company does business.

                  (b)      Acting in any capacity - including director, officer,
                           partner, consultant,  employee, distributor, agent or
                           the    like    -    for    suppliers,    contractors,
                           subcontractors,  customers or other  entities  (other
                           than an  affiliate  of the  Company)  with  which the
                           Company does business.

                  (c)      Acceptance  of  payments,  services  or loans  from a
                           supplier,  contractor,   subcontractor,  customer  or
                           other entity (other than an affiliate of the Company)
                           with which the Company does  business.  This includes
                           gifts,  trips,  entertainment or other favors of more
                           than nominal value.

         2.       Ownership of property affected by Company action:

                  (a)      Ownership or  acquisition  of property,  the value of
                           which is likely to be  affected  by any action of the
                           Company or influenced by a decision or recommendation
                           of the employee owning such property.

                  (b)      Ownership or  acquisition of any property or interest
                           where   confidential   or   unpublished   information
                           obtained  through  the  Company  has in any way  been
                           considered in such ownership or acquisition.

         3.       Appropriation or diversion of corporate opportunity:

                  (a)      The  appropriation  by an officer or  employee or the
                           diversion  to others of any business  opportunity  in
                           which  it  is  known  or  it  could   reasonably   be
                           anticipated that the Company would be interested.

                  (b)      The   disclosure   of   any   "insider"    non-public
                           information about the Company.

         4.       Interest in or position with competitor:

                  (a)      Ownership by an employee of a material interest in an
                           enterprise in competition with the Company.

                  (b)      Acting as  director,  officer,  partner,  consultant,
                           employee  or  agent  of any  enterprise  which  is in
                           competition with the Company.

         These  prohibitions  and requirements are applicable to close relatives
         or members of the immediate family of any employee.

<PAGE>

         An interest is "material"  within the meaning of this policy when it is
         significant either by reference to the employee's financial position or
         in  reference  to the size of the  entity  involved.  In case of doubt,
         materiality should be presumed.

         The legal form of ownership will be of no  significance  in determining
         whether a possible conflict of interest may exist except that ownership
         of an aggregate of less than one tenth of 1% of the  securities  of any
         corporation  which has total assets of $50 million or more shall not be
         deemed to involve a conflict of interest under this policy and need not
         be reported.

         Employees  shall  not  engage  in any  outside  interest,  activity  or
         investment  which may be adverse to the  Company or  conflict  with its
         best  interests.  This  includes  engaging  in an  illegal  or  immoral
         enterprise, or accepting sales commissions, professional fees, or other
         forms of  remuneration  from outside the Company in connection  with or
         resulting  from  duties  or  responsibilities  as an  employee  of  the
         Company;  provided,  however,  that an employee  may,  with  management
         approval,  serve as a director  of another  company,  whether or not an
         affiliate of the Company,  give  lectures,  conduct  seminars,  publish
         articles and books, serve as a committee member,  trustee, or regent or
         in other  similar  capacities,  and  retain any fees,  honorariums,  or
         similar compensation received therefor.

         Any outside  interest or activities  which have been fully disclosed to
         the  Company,  and  approved in writing,  either at the time of initial
         employment of subsequent  thereto,  may continue in the manner approved
         until and unless advised to the contrary. Any employee who has doubt as
         to the propriety of any outside  interests or  activities  may obtain a
         clarification  at any time by submitting a written  request through the
         employee's  manager  and in cases  where  there is any doubt  about the
         application  of  the  policy  to  outside   interests,   the  Company's
         attorneys,  after receiving written authorization from the President or
         Chief Financial Officer to consult with the Company's attorneys.

L.       SECURITIES LAWS AND REGULATIONS

         United States securities  regulations,  which regulate  transactions in
         corporate  securities  (such  as  stocks  and  bonds),   impose  severe
         sanctions  against the use of "inside"  information in the purchase and
         sale of securities by officers and employees of a company for their own
         benefit  and  profit.   "Inside"  information  includes  any  important
         material  fact which may affect the  decision  of anyone  (including  a
         speculator) to buy, sell or hold a particular security.

         Until released to the public,  material information  concerning Company
         plans,   operations  or  financial   results  is  considered   "inside"
         information and, therefore,  confidential. Such data does not belong to
         the individual  employee who may handle it or otherwise come to know of
         it.  For any  person  to use such  information  for  personal  benefit,
         especially in connection with the trading of any Company securities, or
         to disclose such  information to others  outside the Company,  violates
         the law and is contrary to the Company's interests.

         Under  the  rules  of  the  United  States   Securities   and  Exchange
         Commission,  anyone who is in possession of material inside information
         is an  "insider".  This includes not only  knowledgeable  directors and
         officers  but also  non-management  employees  and persons  outside the
         Company  (wives,  friends,  brokers,  printers and others) who may have
         acquired  the  information  directly  or  indirectly  from  inside  the
         Company.  These rules prohibit insiders from trading in or recommending
         the  Company's   securities  while  such  inside  information   remains
         undisclosed  to the general  public.  The  securities  include not only
         those of the Company,  but also the  securities of any company of which
         you have acquired important,  non-public  knowledge as a result of your
         employment. Specifically, you should not trade in the securities of any
         company  which,  to  your  knowledge,  is  under  consideration  as  an
         acquisition by the Company.
<PAGE>

         The  insider  is  allowed  to  purchase,   sell  or  recommend  Company
         securities or the  securities of another  company only after the inside
         information  has  been  publicly  disclosed,  and  then  only  after  a
         reasonable  time has elapsed for the  information to be absorbed by the
         general public.

         The Company has rigidly  defined  channels  through which data proposed
         for public release must flow. No disclosure of inside information which
         could be material should be made without first consulting the Company's
         attorneys,  after receiving written authorization from the President or
         Chief Financial Officer to consult with the Company's attorneys.

         Regulations  which are  designed  to protect the  investing  public are
         strictly  enforced,  and both  civil and  criminal  action can be taken
         against  both the  individual  and  company  involved.  If you have any
         doubts as to whether a  contemplated  securities  transaction  might be
         deemed a  violation  of the  "insider"  trading  rule,  you may,  after
         receiving  proper  authorization,  request an opinion of the  Company's
         attorneys.

         Employees  are  prohibited  from  investing  in any  of  the  Company's
         customers, suppliers, or competitors unless the securities are publicly
         traded  and the  investments  are on the same  terms  available  to the
         general  public  and  not  based  on  any  "inside  information".  This
         prohibition  applies to all forms of investments  and to all employees,
         directors,  officers,  and agents of the  Company  and their  immediate
         families.

         In  general,  employees  should not have any  financial  interest  in a
         customer,  supplier, or competitor that could cause divided loyalty, or
         even the appearance of a divided loyalty.

M.       DISCLOSING CONFIDENTIAL INFORMATION

         Employees have an ethical duty not to disclose confidential information
         gleaned  from  business   transactions  and  to  protect   confidential
         relationships  between the Company and its  customers,  suppliers,  and
         shareholders.

         Business  information  that has not been  made  public  (e.g.,  insider
         information)   shall   not  be   released   to   private   individuals,
         organizations,  or government  bodies unless  demanded by legal process
         such as a subpoena or court order. Employees shall not use confidential
         information  obtained in the course of their employment for the purpose
         of advancing any private interest or otherwise for personal gain.

         Employees should refer any requests for information  (reference checks,
         credit  reporting,  etc.)  about  present  or former  employees  of the
         Company to the  manager in charge of the human  resources  function  or
         Chief Financial Officer for handling.
<PAGE>

N.       CONFIDENTIALITY

         The Company possesses and will continue to possess information that has
         been  created,  discovered,  and  developed  by the  Company;  has been
         disclosed to the Company under the  obligation of  confidentiality;  or
         has otherwise  become known to the Company or in which property  rights
         have been  assigned or conveyed to the Company,  which  information  is
         confidential to the Company and which  information has commercial value
         in the  business  of the  Company.  All such  information,  except such
         information  as is  known  or  becomes  known  to  the  public  without
         violation  of  the  terms  of  this  paragraph,   is  hereafter  called
         "Confidential and Proprietary Information".

         By  way  of   illustration,   but  not  limitation,   Confidential  and
         Proprietary  Information includes customer lists,  subscriptions lists,
         details of author or consultant contracts,  pricing policies, financial
         statements,  projections,  marketing  plans or strategies,  new product
         developments  or  plans,  business  acquisition  plans,  new  personnel
         acquisition  plans,  trade  secrets,  operation  methods,  software and
         computer programs.

         During the employee's employment with the Company and after termination
         (whether  voluntary or involuntary)  of the employee's  employment with
         the Company or any of its  affiliates,  the employee  shall keep secret
         and  retain  in  strictest   confidence  all  such   Confidential   and
         Proprietary  Information.  Nothing contained in this paragraph shall be
         deemed to  prevent  the  employee  from  utilizing  his or her  general
         knowledge,  intellect,  experience,  and skills for gainful  employment
         after termination of employment with the Company.

O.       DOCUMENTS

         All  memoranda,  notes,  lists,  records and other  documents  (and all
         copies  thereof) made or complied by the employee or made  available to
         the  employee  concerning  the  business  of the  Company or any of its
         affiliates  shall be the  Company's  property and shall be delivered to
         the Company promptly upon the termination of the employee's  employment
         with the  Company  or any of its  affiliates  or at any  other  time on
         request.

P.       OUTSIDE EMPLOYMENT

         No  employee  may serve as an  employee,  director,  or  officer of any
         supplier or customer  without the prior written approval of the manager
         in  charge  of human  resources  or the  Chief  Financial  Officer.  An
         employee  may never  serve as an  employee,  director,  or officer of a
         competitor  but may serve as an adviser or  consultant to a supplier or
         customer if that employee  conducts business as a representative of the
         Company.  Officers  of the  Company  may  not  engage  in  any  outside
         employment  other  than  work  as a  volunteer,  which  is done on such
         individual's  own time,  and other than  employment  for an  affiliated
         company of the Company which such  employment  has been approved by the
         Board of Directors of the Company.

         Any employee who does perform outside work has a special responsibility
         to avoid any conflict with the Company's  business  interests.  Outside
         work  cannot  be  performed  on  the  Company's  time  other  than  any
         employment  for  an  affiliated  company  of  the  Company  which  such
         employment has been approved by the Board of Directors of the Company.
<PAGE>

Q.       DOING BUSINESS WITH FAMILY MEMBERS

         If an employee  wishes to do  business on behalf of the Company  with a
         member of that employee's  immediate family or other relative or with a
         company of which a relative is an officer,  director, or principal, the
         employee  must first  disclose  the  relationship  and obtain the prior
         written approval of the President or the Chief Financial Officer of the
         Company.

R.       PRODUCT INTEGRITY

         In  connection  with the  design,  development,  testing,  manufacture,
         advertising,  sale or service of the Company's products,  all employees
         are  directed  to  adhere to  engineering,  manufacturing  and  ethical
         standards  which  provide  proper  design,  performance,  operation and
         maintenance of the Company's products.

         In connection with the sale of Company products, its advertising, sales
         promotions and customer  presentations  should accurately set forth any
         product specifications, capabilities or limitations. Representations of
         this type must be fully  documented by sound  engineering  and testing.
         Any overstatement or misstatement  either  affirmatively or by omission
         is to be strictly avoided.

         At the time of its sale,  each Company  product  should comply with all
         applicable  industry  standards,  and all  state,  federal  or  foreign
         statutes, regulations or codes, then in existence.

         The   individual   or   individuals   having   continuing   design  and
         manufacturing  responsibility  for a product shall be  responsible  for
         seeing that the product is in  compliance  with  applicable  standards,
         statutes,  codes  or  regulations,  and for  certification  of  product
         compliance.  Every such  individual  is expected to have and maintain a
         good working knowledge of the applicable standards, statutes, codes and
         regulations  relating to the products over which they have  supervisory
         responsibility.

         Managers who have any questions  under this policy should call upon the
         President  or the Chief  Financial  Officer  for an  opinion  as to the
         proper course of action.

         Any employee who believes he has  knowledge of any Company  product not
         in  conformity  with  these  standards  is  expected  to call it to the
         attention of the  relevant  management  personnel  so that  appropriate
         corrective action can be taken.

S.       REPORTS AND ASSURANCES

         Officers and employees having responsibilities within the areas covered
         by this Policy  Statement will be required to execute  periodic written
         reports  and  assurances  (under  oath if deemed  necessary)  regarding
         compliance  by them  and by  those  under  their  supervision  with the
         principles set forth in this Policy Statement.
<PAGE>

                            EMPLOYEE ACKNOWLEDGEMENT

I hereby  certify that I have received and read copies of the  Company's  Policy
Statement on Ethical  Behavior and that I fully  understand my  obligations  and
responsibilities and agree to fully comply with these policies.

Witness:

-------------------------                   ------------------------------------
Signature                                   Signature

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Name                                        Name

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Date                                        Division, Subsidiary or Branch

                                            ------------------------------------
                                            Title

                                            ------------------------------------
                                            Date

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