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EXECUTION COPY

                         REGISTRATION RIGHTS AGREEMENT

      This Registration Rights Agreement ("Agreement"), dated as of May 31,
2005, is made and entered into by and between Decorize, Inc., a Delaware
corporation (the "Company") and Nest USA, Inc., a Delaware corporation (the
"Holder").

                                   WITNESSETH:

      WHEREAS, the Company has entered into that certain Securities Purchase
Agreement dated as of even date herewith (the "Purchase Agreement"), whereby the
Company will sell and Holder will buy certain of the Company's securities on the
terms and subject to the restrictions contained in the Purchase Agreement; and

      WHEREAS, in consideration of the purchase by Holder of the Company's
securities pursuant to the Purchase Agreement, the Company has agreed to grant
Holder the registration rights set forth in this Agreement;

      NOW, THEREFORE, in consideration of the representations, covenants and
agreements contained herein, and certain other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

      The terms defined in this Article I shall have for all purposes of this
Agreement the respective meanings set forth below:

 "Board" shall mean the Board of Directors of the Company.

 "Common Stock" shall mean the Common Stock, $.001 par value, of the Company,
and any other class of capital stock of the Company that is duly authorized and
issued from time to time that does not have preferential rights as to dividends
or distributions of the Company's assets over any other class of capital stock
of the Company, including any shares issued in exchange for shares of Common
Stock upon any recapitalization by the Company.

 "Exchange Act" shall mean the Securities and Exchange Act of 1934, as it may be
amended from time to time.

 "Misstatement" shall mean an untrue statement of a material fact or an omission
to state a material fact required to be stated in a Registration Statement or
Prospectus or necessary to make the statements in a Registration Statement or
Prospectus not misleading.

 "Person" shall mean a natural person, partnership, corporation, business trust,
association, joint venture or other entity or a government or agency or
political subdivision thereof.

      "Prospectus" shall mean the prospectus included in any Registration
Statement, as supplemented by any and all prospectus supplements and as amended
by any and all post-effective amendments and including all material incorporated
by reference in such prospectus.

<PAGE>

      "Purchase Agreement" shall mean the Securities Purchase Agreement, dated
as of even date herewith, to which the Company and the Holder are parties.

      "Registrable Security" shall mean (a) an outstanding share of Common Stock
issued by the Company to the Holder pursuant to the Purchase Agreement,
including any shares of Common Stock issued upon the exercise of the Warrants
sold to Holder thereunder, and (b) any security issued or issuable with respect
to such Common Stock by way of a stock dividend or stock split or in connection
with a combination of shares, recapitalization, merger, consolidation or
reorganization; provided, that, any such share or security shall be deemed to be
Registrable Security only if and so long as it is a Transfer Restricted
Security.

      "Registration" shall mean a Mandatory Registration described in Section
2.01 and a Piggyback Registration described in Section 2.02 hereof.

      "Registration Expenses" shall mean the out-of-pocket expenses of a
Registration, including without limitation the following:

            (1) all registration and filing fees (including fees with respect to
      filings required to be made with the National Association of Securities
      Dealers, Inc.) and any securities exchange on which the Common Stock is
      then listed;

            (2) fees and expenses of compliance with securities or blue sky laws
      (including reasonable fees and disbursements of counsel for the
      underwriters in connection with blue sky qualifications of the Registrable
      Securities);

            (3) printing, messenger, telephone and delivery expenses;

            (4) reasonable fees and disbursements of counsel for the Company;
      and

            (5) reasonable fees and disbursements of all independent certified
      public accountants of the Company incurred specifically in connection with
      such Registration.

      "Registration Statement" shall mean any registration statement which
covers Registrable Securities pursuant to the provisions of this Agreement,
including the Prospectus included in such registration statement, amendments
(including post-effective amendments) and supplements to such registration
statement, and all exhibits to and all material incorporated by reference in
such registration statement.

      "SEC" shall mean the Securities and Exchange Commission.

      "Securities Act" shall mean the Securities Act of 1933, as amended from
time to time.

      "Transfer Restricted Security" shall mean an issued and outstanding
security that has not been sold to or through a broker, dealer or underwriter in
a public distribution or other public securities transaction or sold in a
transaction exempt from the registration and prospectus delivery requirements of
the Securities Act under Rule 144(k) promulgated thereunder (or any successor
rule other than Rule 144A). A security shall cease being a Transfer Restricted
Security if (i) all stop transfer instructions or notations and restrictive
legends with respect to such security are eligible to be removed, and (ii) the
Holder has received an opinion of counsel to the Company, to the effect that
such shares in holder's hands are freely transferable in any public or private
transaction without registration under the Securities Act (or holder has waived
receipt of such opinion).

                                       2
<PAGE>

      "Underwritten Registration" or "Underwritten Offering" shall mean a
Registration in which securities of the Company are sold to an underwriter for
distribution to the public.

                                   ARTICLE II
                                  REGISTRATIONS

      2.01 Mandatory Registration. On or before the ninetieth (90th) day
following the date of this Agreement, the Company shall file a Registration
Statement with the Securities and Exchange Commission for purposes of
registering the resale of the Registrable Securities owned by the Holder (or its
successors and permitted assigns) and shall take such commercially reasonable
actions in order to effect as soon thereafter as practicable the Registration
under the Securities Act of all such Registrable Securities.

      2.02 Piggyback Registration. Each time the Company decides to file a
Registration Statement under the Securities Act with respect to its Common Stock
(other than on Forms S-4 or S-8 or any successor form for the registration of
securities issued or to be issued in connection with a merger or acquisition or
employee benefit plan), including any Registration Statement filed on behalf of
stockholders of the Company exercising registration rights granted by the
Company with respect to such shares, the Company shall give written notice
thereof to Holder, and the Company shall include in such Registration Statement
such shares of Registrable Securities for which it has received written requests
to register such shares within thirty (30) days after such written notice has
been given; provided, that the Company shall not be required to do so if there
is an effective Registration Statement with respect to the Registrable
Securities owned by Holder, as contemplated in Section 2.01. If in the good
faith judgment of the managing underwriter in any Underwritten Offering, the
inclusion of all of the shares of Registrable Securities and any other Common
Stock requested to be registered by third parties holding similar registration
rights would interfere with the successful marketing of a smaller number of such
shares, then the number of shares of Registrable Securities and other Common
Stock to be included in the offering (except for shares to be issued by the
Company in an offering initiated by the Company) shall be reduced as provided
herein. The Company shall advise all holders of securities requesting
registration of the underwriters' decision, and the number of shares of
securities that are entitled to be included in the Underwritten Registration
shall be allocated first to the Company for securities being sold for its own
account and thereafter as set forth in Section 2.03 below. If any person does
not agree to the terms of any such underwriting, he shall be excluded therefrom
by written notice from the Company or the underwriter. Any Registrable
Securities or other securities excluded or withdrawn from such underwriting
shall be withdrawn from such registration. If shares are so withdrawn from the
registration or if the number of shares of Registrable Securities to be included
in such registration was previously reduced as a result of marketing factors,
the Company shall then offer to all persons who have retained the right to
include securities in the registration the right to t 6 0 include additional
securities in the registration in an aggregate amount equal to the number of
shares so withdrawn, with such shares to be allocated among the persons
requesting additional inclusion in accordance with Section 2.03 below.

                                       3
<PAGE>

      2.03 Registration Cutback. In any circumstance in which all of the
Registrable Securities and other shares of Common Stock of the Company
(including shares of Common Stock issued or issuable upon conversion of any
currently unissued securities of the Company) with registration rights (the
"Other Shares") requested to be included in a registration on behalf of Holder
or other selling stockholders cannot be so included as a result of limitations
of the aggregate number of shares of Registrable Securities and Other Shares
that may be so included, the number of shares of Registrable Securities and
Other Shares that may be so included shall be allocated among each of the Holder
and other selling stockholders requesting inclusion of shares pro rata on the
basis of the number of shares Registrable Securities and Other Shares that would
be held by each of the Holder and other selling stockholders, assuming
conversion. If Holder or any other selling stockholders does not request
inclusion of the maximum number of shares of Registrable Securities and Other
Shares allocated to him or it pursuant to the above-described procedure, the
remaining portion of such stockholder's allocation shall be reallocated among
those other selling stockholders whose allocations did not satisfy their
requests pro rata on the basis of the number of Registrable Securities and Other
Shares which would be held by the Holder and other selling stockholders,
assuming conversion, and this procedure shall be repeated until all of the
shares of Registrable Securities and Other Shares which may be included in the
registration on behalf of Holder and other selling stockholders have been so
allocated.

                                   ARTICLE III
                               COMPANY PROCEDURES

      3.01 General Procedures. If and whenever the Company is required to
register Registrable Securities, the Company will use its best efforts to effect
such registration to permit the sale of such Registrable Securities in
accordance with the intended plan of distribution thereof, and pursuant thereto
the Company will as expeditiously as possible:

            (a) prepare and file with the SEC as soon as practicable a
      Registration Statement with respect to such Registrable Securities and use
      its reasonable best efforts to cause such Registration Statement to become
      effective and remain effective no later than 120 days after it is filed,
      and to remain effective until the Registrable Securities covered by such
      Registration Statement have been sold;

            (b) prepare and file with the SEC such amendments and post-effective
      amendments to the Registration Statement, and such supplements to the
      Prospectus, as may be requested by Holder or any underwriter of
      Registrable Securities or as may be required by the rules, regulations or
      instructions applicable to the registration form used by the Company or by
      the Securities Act or rules and regulations thereunder to keep the
      Registration Statement effective until all Registrable Securities covered
      by such Registration Statement are sold in accordance with the intended
      plan of distribution set forth in such Registration Statement or
      supplement to the Prospectus;

            (c) deliver to Holder and the underwriters, if any, without charge,
      as many copies of each Prospectus (and each preliminary prospectus) as
      such Persons may reasonably request and a reasonable number of copies of
      the then-effective Registration Statement and any post-effective
      amendments thereto and any supplements to the Prospectus, including
      financial statements and schedules, all documents incorporated therein by
      reference and all exhibits (including those incorporated by reference).
      The Company hereby consents to the use of each such Prospectus (or
      preliminary prospectus) by the Holder and the underwriters, if any, in
      connection with the offering and sale of the Registrable Securities
      covered by such Prospectus (or preliminary prospectus);

                                       4
<PAGE>

            (d) prior to any public offering of Registrable Securities, register
      or qualify or cooperate with Holder, the underwriters, if any, and their
      respective counsel in connection with the registration or qualification of
      such Registrable Securities for offer and sale under the securities or
      blue sky laws of such jurisdictions as Holder or such underwriters may
      designate in writing and do anything else necessary or advisable to enable
      the disposition in such jurisdictions of the Registrable Securities
      covered by the Registration Statement; provided, that the Company shall
      not be required to qualify generally to do business in any jurisdiction
      where it is not then so qualified or to take any action which would
      subject it to general service of process in any such jurisdiction where it
      is not then so subject;

            (e) cause all such Registrable Securities to be listed on each
      securities exchange or automated quotation system on which similar
      securities issued by the Company are then listed;

            (f) provide a transfer agent and registrar for all such Registrable
      Securities not later than the effective date of such Registration
      Statement;

            (g) advise each seller of such Registrable Securities, promptly
      after it shall receive notice or obtain knowledge thereof, of the issuance
      of any stop order by the SEC suspending the effectiveness of such
      Registration Statement or the initiation or threatening of any proceeding
      for such purpose and promptly use its reasonable best efforts to prevent
      the issuance of any stop order or to obtain its withdrawal if such stop
      order should be issued;

            (h) at least three days prior to the filing of any Registration
      Statement or prospectus or any amendment or supplement to such
      Registration Statement or prospectus or any document that is to be
      incorporated by reference in such Registration Statement or prospectus,
      furnish a copy thereof to each seller of such Registrable Securities or
      their counsel;

            (i) notify Holder at any time when a prospectus relating to such
      Registration Statement is required to be delivered under the Securities
      Act, of the happening of any event as a result of which the prospectus
      included in such Registration Statement, as then in effect, includes a
      Misstatement, and then to correct such Misstatement as set forth in
      Section 3.05; and

                                       5
<PAGE>

            (j) permit a representative of Holder, the underwriters, if any, and
      any attorney or accountant retained by Holder or underwriter to
      participate, at each such Person's own expense, in the preparation of the
      Registration Statement, and cause the Company's officers, directors and
      employees to supply all information reasonably requested by any such
      representative, underwriter, attorney or accountant in connection with the
      Registration; provided, however, that such representatives, underwriters,
      attorneys or accountants enter into a confidentiality agreement, in form
      and substance reasonably satisfactory to the Company, prior to the release
      or disclosure of any such information.

      3.02 Registration Expenses. The Registration Expenses of all Registrations
shall be borne by the Company. It is acknowledged by Holder that Holder will
bear all incremental selling expenses relating to the sale of the Registrable
Securities, such as underwriters' commissions and discounts, brokerage fees,
underwriter marketing costs and all fees and expenses of any legal counsel
representing Holder.

      3.03 Requirements for Participation in Underwritten Offerings. No person
may participate in any Underwritten Offering for equity securities of the
Company pursuant to a Registration initiated by the Company hereunder unless
such Person (a) agrees to sell such Person's securities on the basis provided in
any underwriting arrangements approved by the Company and (b) completes and
executes all questionnaires, powers of attorney, indemnities, lock-up
agreements, underwriting agreements and other documents required under the terms
of such underwriting arrangements.

      3.04 Suspension of Sales. Upon receipt of written notice from the Company
that a Registration Statement or Prospectus contains a Misstatement, Holder
shall forthwith discontinue disposition of Registrable Securities until it has
received copies of a supplemented or amended Prospectus correcting the
Misstatement (it being understood that the Company hereby covenants to prepare
and file such supplement or amendment as soon as practicable after the time of
such notice), or until it is advised in writing by the Company that the use of
the Prospectus may be resumed. Notwithstanding anything to the contrary in this
Agreement, the Company may temporarily suspend any Registration made under this
Agreement for the benefit of Holder, including any made pursuant to this Section
2.01, if the Board of Directors determines in good faith that it is necessary to
do so in light of one or more undisclosed transactions that are material to the
Company, including any that may be deemed such a Misstatement, and the Company
shall furnish to Holder a certificate signed by the President of the Company
setting forth notice of such determination. In such event, the Company shall
have the right to defer such filing for a period of not more than sixty (60)
days after receipt of the request of Holder; provided, that the Company shall
not defer its obligation in this manner more than once in any 12-month period.

      3.05 Reporting Obligations. As long as Holder shall own Registrable
Securities, the Company, at all times while it shall be reporting under the
Exchange Act, covenants to file timely (or obtain extensions in respect thereof
and file within the applicable grace period) all reports required to be filed by
the Company after the date hereof pursuant to Section 13(a) or 15(d) of the
Exchange Act and to promptly furnish Holder with true and complete copies of all
such filings. The Company further covenants that it will take such further
action as Holder may reasonably request, all to the extent required from time to
time to enable Holder to sell shares of Common Stock held by Holder without
registration under the Securities Act within the limitation of the exemptions
provided by Rule 144 promulgated under the Securities Act ("Rule 144"),
including providing any legal opinions. Upon the request of Holder, the Company
shall deliver to Holder a written certification of a duly authorized officer as
to whether it has complied with such requirements.

                                       6
<PAGE>

      3.06 Indemnification.

            (a) The Company agrees to indemnify, to the extent permitted by law,
      the Holder of Registrable Securities, its officers and directors and each
      Person who controls Holder (within the meaning of the Securities Act)
      against all losses, claims, damages, liabilities and expenses (including
      attorneys' fees) caused by any untrue or alleged untrue statement of
      material fact contained in any Registration Statement, prospectus or
      preliminary prospectus or any amendment thereof or supplement thereto or
      any omission or alleged omission of a material fact required to be stated
      therein or necessary to make the statements therein not misleading, except
      insofar as the same are caused by or contained in any information
      furnished in writing to the Company by holder expressly for use therein or
      by holder' failure to deliver a copy of the Registration Statement or
      prospectus or any amendments or supplements thereto after the Company has
      furnished holder with a sufficient number of copies of the same. The
      Company will indemnify the underwriters, their officers and directors and
      each Person who controls such underwriters (within the meaning of the
      Securities Act) to the same extent as provided above with respect to the
      indemnification of the Holder.

            (b) In connection with any Registration Statement in which Holder is
      participating, Holder will furnish to the Company in writing such
      information and affidavits as the Company reasonably requests for use in
      connection with any such Registration Statement or prospectus and, to the
      extent permitted by law, will indemnify the Company, its directors and
      officers and agents and each Person who controls the Company (within the
      meaning of the Securities Act) against any losses, claims, damages,
      liabilities and expenses (including without limitation reasonable
      attorneys' fees) resulting from any untrue statement of material fact
      contained in the Registration Statement, prospectus or preliminary
      prospectus or any amendment thereof or supplement thereto or any omission
      of a material fact required to be stated therein or necessary to make the
      statements therein not misleading, but only to the extent that such untrue
      statement or omission is contained in any information or affidavit so
      furnished in writing by holder expressly for use therein; provided, that
      the obligation to indemnify will be several, not joint and several, among
      such holders of Registrable Securities, and the liability of each such
      holder of Registrable Securities will be in proportion to and limited to
      the gross amount received by such holder from the sale of Registrable
      Securities pursuant to such Registration Statement. The Holder will
      indemnify the underwriters, their officers, directors and each Person who
      controls such underwriters (within the meaning of the Securities Act) to
      the same extent as provided above with respect to indemnification of the
      Company.

            (c) Any person entitled to indemnification herein will (i) give
      prompt written notice to the indemnifying party of any claim with respect
      to which it seeks indemnification and (ii) unless in such indemnified
      party's reasonable judgment a conflict of interest between such
      indemnified and indemnifying parties may exist with respect to such claim,
      permit such indemnifying party to assume the defense of such claim with
      counsel reasonably satisfactory to the indemnified party. If such defense
      is assumed, the indemnifying party will not be subject to any liability
      for any settlement made by the indemnified party without its consent (but
      such consent will not be unreasonably withheld). An indemnifying party who
      is not entitled to, or elects not to, assume the defense of a claim will
      not be obligated to pay the fees and expenses of more than one counsel for
      all parties indemnified by such indemnifying party with respect to such
      claim, unless in the reasonable judgment of any indemnified party a
      conflict of interest may exist between such indemnified party and any
      other of such indemnified parties with respect to such claim.

                                       7
<PAGE>

            (d) The indemnification provided for under this Agreement will
      remain in full force and effect regardless of any investigation made by or
      on behalf of the indemnified party or any officer, director or controlling
      person of such indemnified party and will survive the transfer of
      securities. The Company and Holder also agree to make such provisions as
      are reasonably requested by any indemnified party for contribution to such
      party in the event the Company's or Holder's indemnification is
      unavailable for any reason.

            (e) Notwithstanding the foregoing, to the extent that the provisions
      on indemnification and contribution contained in the underwriting
      agreement entered into in connection with an Underwritten Offering are in
      conflict with the foregoing provisions, the provisions of the underwriting
      agreement shall control.

      3.07 Restrictions on Public Sales. In consideration of the agreements
contemplated herein, Holder and the Company further agree to the following
restrictions:

            (a) Holder, if the Company or the managing underwriters so request
      in connection with any underwritten registration of the Company'
      securities, will not, without the prior written consent of the Company or
      such underwriters, effect any sale of the Registrable Securities to the
      public pursuant to a public offering or otherwise or other distribution of
      any equity securities of the Company, including any sale pursuant to Rule
      144 (each of the foregoing, a "Prohibited Sale"), during the seven (7)
      days prior to, and during the one hundred eighty (180) day period
      commencing on, the effective date of such underwritten registration,
      except in connection with such underwritten registration; provided, that
      the foregoing shall not apply to restrict the sale by any Stockholders who
      together with any of its Affiliates, as such term is defined in the
      Securities Act, holds less than two percent (2%) of the Common Stock on a
      fully diluted basis..

            (b) The Company agrees not to effect any Prohibited Sale or other
      distribution of its equity securities, or any securities convertible into
      or exchangeable or exercisable for such equity securities, during the
      period commencing on the seventh day prior to, and ending on the one
      hundred eightieth (180th) day following, the effective date of any
      underwritten Demand or Piggyback Registration, except in connection with
      any such underwritten registration and except for any offering pursuant to
      an employee benefit plan and registered on Form S-8 (or any successor
      form).

                                       8
<PAGE>

                            ARTICLE IV MISCELLANEOUS

      4.01 Notices. All notices and other communications provided for or
permitted hereunder shall be made in accordance with the notice provisions
contained in Section 8.03 of the Purchase Agreement.

      4.02 Successors and Assigns. This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of the Company. No rights under
this Agreement may be assigned by Holder without the prior written consent of
the Company.

      4.03 Counterparts. This Agreement may be executed in multiple counterparts
(including facsimile counterparts), each of which shall be deemed an original,
and all of which together shall constitute the same instrument, but only one of
which need be produced.

      4.04 GOVERNING LAW; VENUE. NOTWITHSTANDING THE PLACE WHERE THIS AGREEMENT
MAY BE EXECUTED BY ANY OF THE PARTIES HERETO, THE PARTIES EXPRESSLY AGREE THAT
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE STATE OF
DELAWARE AS APPLIED TO AGREEMENTS AMONG DELAWARE RESIDENTS ENTERED INTO AND TO
BE PERFORMED ENTIRELY WITHIN DELAWARE, WITHOUT REGARD TO THE CONFLICT OF LAW
PROVISIONS OF SUCH JURISDICTION. VENUE FOR ANY ACTION TO ENFORCE, INTERPRET, OR
RESOLVE ANY DISPUTE WITH RESPECT TO ANY PROVISION OF THIS AGREEMENT SHALL BE
EXCLUSIVELY IN GREENE COUNTY, MISSOURI, AND ALL PARTIES HERETO AGREE THAT ANY
LITIGATION DIRECTLY OR INDIRECTLY RELATING TO THIS AGREEMENT MUST BE BROUGHT
BEFORE AND DETERMINED BY A COURT OF COMPETENT JURISDICTION WITHIN SUCH COUNTY
AND STATE. EACH OF THE PARTIES FURTHER ACKNOWLEDGE THAT SUCH VENUE IS
APPROPRIATE AND AGREE NOT TO RAISE ANY ARGUMENT THAT SUCH VENUE IS IN ANY WAY
UNDULY INCONVENIENT FOR ANY OF THEM, WITH THEIR EXECUTION HEREOF BEING EVIDENCE
OF THEIR AGREEMENT TO SUBMIT TO THE JURISDICTION OF SUCH COURTS.

      4.05 Amendments and Modifications. Upon the written consent of Holder,
compliance with any of the provisions, covenants and conditions set forth in
this Agreement may be waived, or any of such provisions, covenants or conditions
may be modified. No course of dealing between Holder or the Company and any
other party hereto or, amended or deleted any failure or delay on the part of
Holder or the Company in exercising any rights or remedies under this Agreement
shall operate as a waiver of any rights or remedies of Holder or the Company. No
single or partial exercise of any rights or remedies under this Agreement by a
party shall operate as a waiver or preclude the exercise of any other rights or
remedies hereunder or thereunder by such party.

                           [signature page to follow]

                                       9
<PAGE>

      IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
executed as of the date first written above.

                                   COMPANY:

                                   DECORIZE, INC.,
                                   a Delaware corporation

                                   By: /s/ Steve Crowder
                                       ---------------------
                                   Name: Steve Crowder
                                   Title: President and CEO

                                   HOLDER:

                                   NEST USA, INC.
                                   a Delaware corporation

                                   By: /s/ Marwan M. Atalla
                                       ---------------------
                                   Name: Marwan M. Atalla
                                   Title: President

                                       10EXHIBIT 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:

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Signature                                   Signature

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Name                                        Name

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Date                                        Division, Subsidiary or Branch

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                                            Title

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                                            Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]