Document:

Unassociated Document

    THE
      SHARES OF COMMON
      STOCK
      SUBSCRIBED FOR BY THIS AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT OF 1933, AS AMENDED, OR ANY OTHER APPLICABLE STATE SECURITIES LAWS AND
      TRANSFER OF SUCH SHARES IS RESTRICTED BY THE TERMS OF THIS
      AGREEMENT.

     

    SUBSCRIPTION
      AGREEMENT

     

    This
      SUBSCRIPTION AGREEMENT (the "Agreement")
      is
      made by and between the subscriber hereto (the “Subscriber”)
      and
Calypte
      Biomedical Corporation,
      a
Delaware
      corporation
      (the "Company”).
      

     

    The
      Subscriber hereby agrees to purchase, and the Company hereby agrees to issue
      and
      to sell to the Subscriber, the number of shares (the “Shares”)
      of
      common stock of the Company, par value $.03 per share (the "Common
      Stock"),
      and
      warrant to purchase additional shares of Common Stock (the “Warrant”),
      in
      the form of Exhibit
      A,
      (the
      Shares, the Warrant and the shares underlying the Warrant are hereinafter
      referred to collectively as the “Securities”),
      set
      forth on the signature page, for a purchase price in cash equal to $0.035
      per
      share (the aggregate amount to be paid by the Subscriber shall be referred
      to as
      the "Purchase
      Price").
      After
      acceptance of this Agreement by the Company and payment and delivery by the
      Subscriber to the Company of the Purchase Price in the form of wire transfer
      pursuant to the terms of Section 7(b) of this Agreement, the Company shall
      issue
      and deliver to the Subscriber the Securities. 

    

    NOW,
      THEREFORE, in order to implement the foregoing and in consideration of the
      mutual representations, warranties, covenants and agreements contained herein
      and for other good and valuable consideration, the receipt and adequacy of
      which
      are hereby acknowledged, the parties hereto agree as follows.

     

    1. Subscriber's
      Representations and Warranties.
      The
      Subscriber hereby represents and warrants to and agrees with the Company
      that:

    

    (a) Access
      to Information.
      The
      Subscriber acknowledges that it has been furnished with the Company's Form
      10-K
      for the year ended December 31, 2007 as filed with the Securities and Exchange
      Commission (the “Commission”)
      together with all subsequently filed Forms 10-Q, 8-K, and other publicly
      available filings made with the Commission (hereinafter referred to collectively
      as the "Reports")
      and
      has been afforded (i) the opportunity to ask such questions as it has deemed
      necessary of, and to receive answers from, representatives of the Company
      concerning the terms and conditions of the offering of the Securities and the
      merits and risks of investing in the Company; (ii) access to information about
      the Company and its subsidiary and their respective financial condition, results
      of operations, business, properties, management and prospects sufficient to
      enable it to evaluate its investment; and (iii) the opportunity to obtain such
      additional information that the Company possesses or can acquire without
      unreasonable effort or expense that is necessary to make an informed investment
      decision with respect to the investment. Neither such inquiries nor any other
      investigation conducted by or on behalf of the Subscriber or its representatives
      or counsel shall modify, amend or affect the Subscriber's right to rely on
      the
      truth, accuracy and completeness of the Reports and the Company's
      representations and warranties contained herein.

     

     

    
      
        	 	
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    (b) Information
      on Subscriber.
      The
      Subscriber is and was not a “U.S. person,” as defined in Regulation S of the
      Securities Act of 1933, as amended (the “1933
      Act”),
      at
      the time the offer or sale of the Securities is made. Additionally, the
      Subscriber is an "accredited investor," as such term is defined in Regulation
      D
      of the 1933 Act or is part of a group that is experienced in investments and
      business matters, has made investments of a speculative nature and has purchased
      securities of United States publicly-owned companies in private placements
      in
      the past and, with its representatives, has such knowledge and experience in
      financial, tax and other business matters as to enable the Subscriber to utilize
      the information made available by the Company, to evaluate the merits and risks
      of an investment in the Company and to make an informed investment decision
      with
      respect to the proposed purchase, which represents a speculative investment.
      The
      Subscriber is a natural person or an entity duly organized, validly existing
      and
      in good standing under the laws of the jurisdiction of its organization with
      the
      requisite corporate or partnership power and authority to enter into and to
      consummate the transactions contemplated by this Agreement and otherwise to
      carry out its obligations hereunder. The execution, delivery and performance
      by
      the Subscriber of the transactions contemplated by this Agreement has been
      duly
      authorized by all necessary corporate or, if the Subscriber is not a
      corporation, such partnership, limited liability company or other applicable
      like action, on the part of the Subscriber. This Agreement has been duly
      executed by the Subscriber and when delivered by the Subscriber in accordance
      with terms hereof, will constitute the valid and legally binding obligation
      of
      the Subscriber, enforceable against it in accordance with its terms, except
      as
      such enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation or similar laws relating to, or
      affecting generally the enforcement of, creditors’ rights and remedies or by
      other equitable principles of general application. The Subscriber is able to
      bear the risk of such investment for an indefinite period and to afford a
      complete loss thereof. The information set forth on the signature page hereto
      regarding the Subscriber is accurate.

     

    (c) Purchase
      of Securities and Investment Intent.
      The
      Subscriber is purchasing the Securities for its own account for the Purchase
      Price. The Subscriber is acquiring the Securities as principal for its own
      account for investment purposes only and not with a view to or for distributing
      or reselling such Shares or Warrant or any part thereof, without prejudice,
      however, to the Subscriber’s right at all times to sell or otherwise dispose of
      all or any part of such Securities in compliance with applicable federal and
      state securities laws. The Subscriber does not have any agreement or
      understanding, directly or indirectly, with any person to distribute any of
      the
      Securities. The Subscriber also represents that its purchase of the Securities
      is intended to be made as an “Offshore
      Transaction”
as
      defined in Regulation S. 

    

    (d) Compliance
      with Securities Act.
      The
      Subscriber understands and agrees that the Securities have not been registered
      under the 1933 Act, by reason of their issuance in a transaction that does
      not
      require registration under the 1933 Act (based in part on the accuracy of the
      representations and warranties of the Subscriber contained herein), and that
      such Securities must be held unless a subsequent disposition is registered
      under
      the 1933 Act or is exempt from such registration.

     

     

    
      
        
          	 	
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    (e) Legend
      on Securities.
      The
      Securities shall bear the following legend (or something comparable for the
      Warrant), unless the Securities shall have been included in an effective
      registration statement under the 1933 Act:

    

    "THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THESE SECURITIES MAY
      NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
      EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR AN OPINION OF
      COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT
      REQUIRED.”

    

    (f) Communication
      of Offer.
      The
      offer to sell the Securities was directly communicated to the Subscriber. At
      no
      time was the Subscriber presented with or solicited by any leaflet, newspaper
      or
      magazine article, radio or television advertisement, or any other form of
      general advertising or solicited or invited to attend a promotional meeting
      otherwise than in connection and concurrently with such communicated
      offer.

    

    (g) 
      Certain Trading Activities.
      The
      Subscriber has not directly or indirectly, nor has any person acting on behalf
      of or pursuant to any understanding with the Subscriber, engaged in any trading
      in any securities of the Company (including, without limitation, any Short
      Sales
      (defined below) involving the Company’s securities) during the 20 trading days
      immediately preceding the Closing. For purposes of this Section, "Short
      Sales"
      include,
      without limitation, all “short sales” as defined in Rule 3b-3 of the Securities
      Exchange Act of 1934, as amended (the “1934
      Act”)
      and
      include all types of direct and indirect stock pledges, forward sale contracts,
      options, puts, calls, short sales, swaps and similar arrangements (including
      on
      a total return basis), and sales and other transactions through non-U.S. broker
      dealers or foreign regulated brokers having the effect of hedging the securities
      or investment made under this Agreement. As of the date of this Agreement,
      the
      Subscriber has no open short position in the Common Stock, and covenants that
      neither it nor any person acting on its behalf or pursuant to any understanding
      with it will engage in any Short Sales prior to the public disclosure of the
      material terms of this transaction by the Company.

     

    (h) Correctness
      of Representations.
      The
      Subscriber represents that the foregoing representations and warranties are
      true
      and correct. The foregoing representations and warranties shall survive the
      date
      hereof.

    

    2. Company
      Representations and Warranties.
      The
      Company represents and warrants to and agrees with the Subscriber
      that:

    

    (a) Due
      Incorporation.
      The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware and has the requisite corporate power
      to
      own its properties and to carry on its business as now being conducted. The
      Company is duly qualified as a foreign corporation to do business and is in
      good
      standing in each jurisdiction where the nature of the business conducted or
      property owned by it makes such qualification necessary, other than those
      jurisdictions in which the failure to so qualify would not have a material
      adverse effect on the business, operations or financial condition of the
      Company.

     

     

    
      
        
          	 	
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    (b) Outstanding
      Stock.
      All
      issued and outstanding shares of capital stock of the Company have been duly
      authorized and validly issued and are fully paid and
      non-assessable.

    

    (c) Authority;
      Enforceability.
      This
      Agreement has been duly authorized, executed and delivered by the Company and
      is
      a valid and binding agreement enforceable in accordance with its terms, subject
      to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
      and
      similar laws of general applicability relating to or affecting creditors' rights
      generally and to general principles of equity; and the Company has full
      corporate power and authority necessary to enter into this Agreement and to
      perform its obligations hereunder.

    

    (d) Shares
      Duly Authorized.
      The
      Securities when issued and delivered in accordance with the terms of this
      Agreement, will be duly authorized, validly issued, fully paid and
      non-assessable.

    

    (e)  Stop
      Transfer.
      The
      Shares are restricted securities as of the date of this Agreement. The Company
      will not issue any stop transfer order or other order impeding the sale, resale
      or delivery of the Stock, except as may be required by federal securities
      laws.

    

    (f)  No
      General Solicitation.
      Neither
      the Company, nor any of its affiliates, nor to its knowledge, any person acting
      on its or their behalf, has engaged in any form of general solicitation or
      general advertising (within the meaning of Regulation S or D under the 1933
      Act)
      in connection with the offer or sale of the Shares.

    

    3. Regulation
      S Offering.
      This
      offering is being made pursuant to the exemption from the registration
      provisions of the 1933 Act afforded by Regulation S thereunder. 

    

    4. Reissuance
      of Securities.
      The
      Company will cause the removal of the legend set forth in Section 1(e) above
      at
      such time as (a) the Subscriber is permitted to, and disposes of, the Securities
      pursuant to an exemption to the registration requirements of the 1933 Act or
      Rule 144 of the 1933 Act, in the opinion of counsel reasonably satisfactory
      to
      the Company, or (b) upon sale of the Securities pursuant to an effective
      registration statement under the 1933 Act. The Company agrees to cooperate
      with
      the Subscriber in connection with all sales pursuant to Rule 144 of the 1933
      Act
      and provide legal opinions necessary to allow such sales provided the Company
      and its counsel receive requested written representations from the Subscriber
      and selling broker, if any. The Company will pay for its costs in connection
      with the removal of the legend hereunder.

    

    5. “Piggy-Back”
      Registration Rights.
      

    

    (a)  The
      Company agrees that when it registers any Common Stock under the 1933 Act by
      registration on Form S-1 or other similar form for sale for the account of
      one
      or more holders of Common Stock, the Company will use its best efforts to
      register all or some portion of the Securities in such registration statement
      as
      the Company may reasonably determine feasible. The Company will pay all expenses
      incident to the registration of the Securities hereunder and the Company’s
      performance of or compliance with this Agreement.

     

     

    
      
        
          	 	
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    (b)
       The
      Seller will furnish to the Company in writing such information and
      representation letters with respect to itself and the proposed distribution
      by
      it as reasonably shall be necessary in order to assure compliance with federal
      and state securities laws. 

     

    6. Fees
      and Expenses.
      Each
      party shall pay the fees and expenses of its advisers, counsel, accountants
      and
      other experts, if any, and all other expenses incurred by such party incident
      to
      the negotiation, preparation, execution, delivery and performance of this
      Agreement. The Company shall pay all stamp and other taxes and duties levied
      in
      connection with the issuance of the Securities.

    

    7. Miscellaneous.

    

    (a) Notices.
      All
      notices, demands, requests, consents, approvals, and other communications
      required or permitted hereunder shall be in writing and, unless otherwise
      specified herein, shall be (i) personally served, (ii) deposited in the mail,
      registered or certified, return receipt requested, postage prepaid, (iii)
      delivered by reputable air courier service with charges prepaid, or (iv)
      transmitted by hand delivery or facsimile, addressed as set forth below or
      to
      such other address as such party shall have specified most recently by written
      notice. Any notice or other communication required or permitted to be given
      hereunder shall be deemed effective (a) upon hand delivery or delivery by
      facsimile, with accurate confirmation generated by the transmitting facsimile
      machine, at the address or number designated below (if delivered on a business
      day during normal business hours where such notice is to be received), or the
      first business day following such delivery (if delivered other than on a
      business day during normal business hours where such notice is to be received)
      or (b) on the second business day following the date of mailing by express
      courier service, fully prepaid, addressed to such address, or upon actual
      receipt of such mailing, whichever shall first occur. The addresses for such
      communications shall be: (i) if to the Company to Calypte Biomedical
      Corporation, 16290 SW Upper Boones Ferry Road, Portland, Oregon 97224, facsimile
      number: (503) 601-6299, and
      (ii)
      if to the Subscriber, to the name, address and facsimile number set forth on
      the
      signature page hereto. 

    

    (b) Closing.
      The
      closing of the transactions contemplated by this Agreement shall take place
      on
      September 19, 2008 at 5:00 p.m. (Pacific Standard Time) at the Company’s
      corporate office or such other location and time as may be determined by the
      Company. At the closing, the Subscriber shall deliver to the Company the
      Purchase Price in United States dollars and in immediately available funds,
      by
      wire transfer to the following account:

     

    

      
        	
                Pay
                  to:

              	
                FC
                  - Silicon Valley Bank

              
	 	
                3003
                  Tasman Drive

              
	 	
                Santa
                  Clara, CA 95054, USA

              
	
                Routing
                  & Transit #:

              	
                \\FW:121140399

              
	
                Swift
                  Code:

              	
                SVBKUS6S

              
	
                For
                  Credit of:

              	
                Calypte
                  Biomedical Corporation

              
	
                Final
                  Credit Account #:

              	
                FNC
                  - 3300349200

              

      

    

    

    Upon
      receipt of the Purchase Price, the Company shall deliver to the Subscriber,
      the
      Securities.

     

    
      
        
          	 	
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    (c) Entire
      Agreement; Assignment.
      This
      Agreement represents the entire agreement between the parties hereto with
      respect to the subject matter hereof and may be amended only by a writing
      executed by both parties. No right or obligation of either party shall be
      assigned by that party without the written consent of the other party.

     

    (d) Execution.
      This
      Agreement may be executed in separate counterparts, each of which shall be
      deemed an original and both of which shall constitute one and the same document.
      This Agreement may be executed by facsimile transmission.

    

    (e) Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Oregon without regard to principles of conflicts of laws. Any action
      brought by either party against the other concerning the transactions
      contemplated by this Agreement shall be brought only in the state courts of
      Oregon or in the federal courts located in the state of Oregon. Both parties
      and
      the individuals executing this Agreement agree to submit to the jurisdiction
      of
      such courts and waive trial by jury. The prevailing party shall be entitled
      to
      recover from the other party its reasonable attorney's fees and costs. In the
      event that any provision of this Agreement or any other agreement delivered
      in
      connection herewith is invalid or unenforceable under any applicable statute
      or
      rule of law, then such provision shall be deemed inoperative to the extent
      that
      it may conflict therewith and shall be deemed modified to conform with such
      statute or rule of law. Any such provision which may prove invalid or
      unenforceable under any law shall not affect the validity or enforceability
      of
      any other provision of any agreement.

    

    (f) Specific
      Enforcement, Consent to Jurisdiction.
      The
      Company and the Subscriber acknowledge and agree that irreparable damage would
      occur in the event that any of the provisions of this Agreement were not
      performed in accordance with their specific terms or were otherwise breached.
      It
      is accordingly agreed that the parties shall be entitled to an injunction or
      injunctions to prevent or cure breaches of the provisions of this Agreement
      and
      to enforce specifically the terms and provisions hereof or thereof, this being
      in addition to any other remedy to which any of them may be entitled by law
      or
      equity. Subject to Section 7(e) hereof, each of the Company and the Subscriber
      hereby waives, and agrees not to assert in any such suit, action or proceeding,
      any claim that it is not personally subject to the jurisdiction of such court,
      that the suit, action or proceeding is brought in an inconvenient forum or
      that
      the venue of the suit, action or proceeding is improper. Nothing in this Section
      shall affect or limit any right to serve process in any other manner permitted
      by law.

    

    

     

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    IN
      WITNESS WHEREOF,
      the
      parties have hereby executed this Agreement as of the day set forth in the
      acceptance set forth below.

     

    

      
        	
                20,000,000

              	 	
                SUBSCRIBER
                  NAME:

              
	
                Number
                  of Shares 

              	 	
                 
                  

              
	 	 	 
	
                1,000,000

              	 	 
	
                Number
                  of Shares Underlying Warrant 

              	 	 
	 	 	 
	
                $700,000

              	 	
                By:    
                                             

              
	
                Dollar
                  Amount of Subscription 

              	 	
                Title: 
                                             

              
	Tendered
                by
                Subscriber	 	 
	 	 	 
	 	 	
                  
                  

              
	 	 	(Street
                Address)
	 	 	 
	 	 	 

	 	 	
                (City
                  and State)(Zip
                  Code) 

              
	 	 	 
	 	 	  

	 	 	
                Telephone
                  Number

              

      

    

     

     

    ACCEPTANCE

     

    The
      foregoing subscription is hereby accepted, subject to the terms and conditions
      hereof, as of September __, 2008.
      

    

      
        	
                $700,000

              	 	
                CALYPTE
                  BIOMEDICAL CORPORATION

              
	
                Amount
                  of Subscription Accepted

              	 	 	 
	
                20,000,000

              	 	
                By:

              	 
	
                Number
                  of Shares

              	 	 	
                Name:
                  Donald N. Taylor

              
	 	 	 	
                Title:
                  Chief Executive Officer

              
	
                1,000,000

              	 	 	 
	
                Number
                  of Shares Underlying Warrant 

              	 	 	 

      

    

     

     

    
      
        
          	 	
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        7Unassociated Document

    

      NEITHER
        THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES
        HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
        SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
        REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
        ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
        EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
        AN
        AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
        REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
        SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
        TO
        SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
        COMPANY. 

       

       

      CALYPTE
        BIOMEDICAL CORPORATION

       

      WARRANT

      

        
          	
                  Warrant
                    No. _______

                	
                  Original
                    Issue Date: September __,
                    2008

                

        

      

       

      Calypte
        Biomedical Corporation,
        a
        Delaware corporation (the “Company”),
        hereby
        certifies that, for value received, Almyn
        Limited, an entity registered in the British Virgin Islands,
        or its
        registered assigns (the “Holder”),
        is
        entitled to purchase from the Company up to a total of 1,000,000 shares of
        Common Stock (each such share, a “Warrant
        Share”
        and all
        such shares, the “Warrant
        Shares”),
        at any
        time and from time to time from through and including September __, 2010
        (the
“Expiration
        Date”),
        and
        subject to the following terms and conditions:

       

      1. Definitions.
        As used
        in this Warrant, the following terms shall have the respective definitions
        set
        forth in this Section 1. Capitalized terms that are used and not defined
        in this
        Warrant that are defined in the Subscription Agreement (as defined below)
        shall
        have the respective definitions set forth in the Subscription
        Agreement.

       

      “Business
        Day”
        means
        any day except Saturday, Sunday and any day that is a federal legal holiday
        in
        the United States or a day on which banking institutions in the State of
        New
        York are authorized or required by law or other government action to
        close.

       

      “Common
        Stock”
        means
        the common stock of the Company, par value $.03 per share, and any securities
        into which such common stock may hereafter be reclassified. 

       

      “Exercise
        Price” means
        $0.06, subject to adjustment in accordance with Section 8.

       

      “Fundamental
        Transaction”
        means
        any of the following: (1) the Company effects any merger or consolidation
        of the
        Company with or into another Person, (2) the Company effects any sale of
        all or
        substantially all of its assets in one or a series of related transactions,
        (3)
        any tender offer or exchange offer (whether by the Company or another Person)
        is
        completed pursuant to which holders of Common Stock are permitted to tender
        or
        exchange their shares for other securities, cash or property, or (4) the
        Company
        effects any reclassification of the Common Stock or any compulsory share
        exchange pursuant to which the Common Stock is effectively converted into
        or
        exchanged for other securities, cash or property.

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      “Original
        Issue Date”
        means
        the Original Issue Date (“OID”) first set forth on the first page of this
        Warrant.

       

      “Portland
        Courts”
        means
        the state and federal courts sitting in Portland, Oregon.

       

      “Subscription
        Agreement”
        means
        the Subscription Agreement, dated September __, 2008, to which the Company
        and
        the original Holder are parties.

       

      “Trading
        Day”
        means
        (i) a day on which the Common Stock is traded on a Trading Market (other
        than
        the OTC Bulletin Board), or (ii) if the Common Stock is not listed on a Trading
        Market (other than the OTC Bulletin Board), a day on which the Common Stock
        is
        traded in the over-the-counter market, as reported by the OTC Bulletin Board,
        or
        (iii) if the Common Stock is not quoted on any Trading Market, a day on which
        the Common Stock is quoted in the over-the-counter market as reported by
        the
        National Quotation Bureau Incorporated (or any similar organization or agency
        succeeding to its functions of reporting prices); provided, that in the event
        that the Common Stock is not listed or quoted as set forth in (i), (ii) and
        (iii) hereof, then Trading Day shall mean a Business Day.

       

      2. Registration
        of Transfers.
        The
        Company shall register the transfer of any portion of this Warrant in the
        Company’s warrant register, upon surrender of this Warrant, with the Form of
        Assignment attached hereto duly completed and signed, to the Company at its
        address specified herein. Upon any such registration or transfer, a new Warrant
        to purchase Common Stock, in substantially the form of this Warrant (any
        such
        new Warrant, a “New
        Warrant”),
        evidencing the portion of this Warrant so transferred shall be issued to
        the
        transferee and a New Warrant evidencing the remaining portion of this Warrant
        not so transferred, if any, shall be issued to the transferring Holder. The
        acceptance of the New Warrant by the transferee thereof shall be deemed the
        acceptance by such transferee of all of the rights and obligations of a holder
        of a Warrant. 

       

      3. Exercise
        and Duration of Warrants.
        This
        Warrant shall be exercisable by the registered Holder at any time and from
        time
        to time from and after the Original Issue Date and through and including
        the
        Expiration Date. At 5:00 p.m. Pacific time on the Expiration Date, the portion
        of this Warrant not exercised prior thereto shall be and become void and
        of no
        value. 

       

      4. Delivery
        of Warrant Shares.

       

      To
        effect
        exercises hereunder, the Holder shall not be required to physically surrender
        this Warrant unless the aggregate Warrant Shares represented by this Warrant
        is
        being exercised. Upon delivery of the Exercise Notice (in the form attached
        hereto) to the Company (with the attached Warrant Shares Exercise Log) at
        its
        address for notice set forth herein and upon payment of the Exercise Price
        multiplied by the number of Warrant Shares that the Holder intends to purchase
        hereunder, the Company shall promptly (but in no event later than five Trading
        Days after the Date of Exercise (as defined herein) issue and deliver to
        the
        Holder, the Warrant Shares issuable upon such exercise, which, as required
        by
        the Subscription Agreement, shall bear the following legend, unless the Shares
        shall have been included in an effective registration statement under the
        1933
        Act:

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

      "THE
        SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
        SECURITIES ACT OF 1933, AS AMENDED. THESE SHARES MAY NOT BE SOLD, OFFERED
        FOR
        SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
        STATEMENT UNDER SUCH SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY
        SATISFACTORY TO CALYPTE BIOMEDICAL CORPORATION THAT SUCH REGISTRATION IS
        NOT
        REQUIRED.”

       

      (a) A
        “Date
        of Exercise”
        means
        the date on which the Holder shall have delivered to the Company: (i) the
        Exercise Notice (and Warrant if the aggregate Warrant Shares are being
        exercised), with the Warrant Exercise Log attached to it, appropriately
        completed and duly signed and (ii) payment of the Exercise Price for the
        number
        of Warrant Shares so indicated by the Holder to be purchased. 

       

      (b) If
        by the
        fifth Trading Day after a Date of Exercise the Company fails to deliver the
        required number of Warrant Shares in the manner required pursuant to Section
        4,
        then the Holder will have the right to rescind such exercise.

       

      (c) The
        Company's obligations to issue and deliver Warrant Shares in accordance with
        the
        terms hereof are absolute and unconditional, irrespective of any action or
        inaction by the Holder to enforce the same, any waiver or consent with respect
        to any provision hereof. Nothing herein shall limit a Holder's right to pursue
        any other remedies available to it hereunder, at law or in equity including,
        without limitation, a decree of specific performance and/or injunctive relief
        with respect to the Company's failure to timely deliver certificates
        representing Warrant Shares upon exercise of the Warrant as required pursuant
        to
        the terms hereof.

       

      5. Charges,
        Taxes and Expenses.
        Issuance and delivery of Warrant Shares upon exercise of this Warrant shall
        be
        made without charge to the Holder for any transfer agent fee or other incidental
        expense in respect of the issuance of such certificates, all of which expenses
        shall be paid by the Company; provided, however, that the Company shall not
        be
        required to pay any tax which may be payable in respect of any issuance,
        delivery or transfer of Warrant Shares. The Holder shall be responsible for
        all
        tax liability that may arise as a result of holding or transferring this
        Warrant
        or receiving Warrant Shares upon exercise hereof.

       

      6. Replacement
        of Warrant.
        If this
        Warrant is mutilated, lost, stolen or destroyed, the Company shall issue
        or
        cause to be issued in exchange and substitution for and upon cancellation
        hereof, or in lieu of and substitution for this Warrant, a New Warrant, but
        only
        upon receipt of evidence reasonably satisfactory to the Company of such loss,
        theft or destruction and customary and reasonable indemnity (which shall
        not
        include a surety bond), if requested. Applicants for a New Warrant under
        such
        circumstances shall also comply with such other reasonable regulations and
        procedures and pay such other reasonable third-party costs as the Company
        may
        prescribe. If a New Warrant is requested as a result of a mutilation of this
        Warrant, then the Holder shall deliver such mutilated Warrant to the Company
        as
        a condition precedent to the Company’s obligation to issue the New
        Warrant.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      7. Reservation
        of Warrant Shares.
        The
        Company covenants that it will at all times reserve and keep available out
        of
        the aggregate of its authorized but unissued and otherwise unreserved Common
        Stock, solely for the purpose of enabling it to issue Warrant Shares upon
        exercise of this Warrant as herein provided, the number of Warrant Shares
        which
        are then issuable and deliverable upon the exercise of this entire Warrant,
        free
        from preemptive rights or any other contingent purchase rights of Persons
        other
        than the Holder (taking into account the adjustments and restrictions of
        Section
        8). The Company covenants that all Warrant Shares so issuable and deliverable
        shall, upon issuance and the payment of the applicable Exercise Price in
        accordance with the terms hereof, be duly and validly authorized, issued
        and
        fully paid and nonassessable.

       

      8. Certain
        Adjustments.
        The
        Exercise Price of Warrant Shares issuable upon exercise of this Warrant is
        subject to adjustment from time to time as set forth in this Section
        8.

       

      (a) Stock
        Dividends and Splits.
        If the
        Company, at any time while this Warrant is outstanding, (i) pays a stock
        dividend on its Common Stock or otherwise makes a distribution on any class
        of
        capital stock that is payable in shares of Common Stock, (ii) subdivides
        outstanding shares of Common Stock into a larger number of shares, or (iii)
        combines outstanding shares of Common Stock into a smaller number of shares,
        then in each such case the Exercise Price shall be multiplied by a fraction
        of
        which the numerator shall be the number of shares of Common Stock outstanding
        immediately before such event and of which the denominator shall be the number
        of shares of Common Stock outstanding immediately after such event. Any
        adjustment made pursuant to clause (i) of this paragraph shall become effective
        immediately after the record date for the determination of stockholders entitled
        to receive such dividend or distribution, and any adjustment pursuant to
        clause
        (ii) or (iii) of this paragraph shall become effective immediately after
        the
        effective date of such subdivision or combination.

       

      (b) Fundamental
        Transactions.
        If, at
        any time while this Warrant is outstanding there is a Fundamental Transaction,
        then the Holder shall have the right thereafter to receive, upon exercise
        of
        this Warrant, the same amount and kind of securities, cash or property as
        it
        would have been entitled to receive upon the occurrence of such Fundamental
        Transaction if it had been, immediately prior to such Fundamental Transaction,
        the holder of the number of Warrant Shares then issuable upon exercise in
        full
        of this Warrant (the “Alternate
        Consideration”).
        For
        purposes of any such exercise, the determination of the Exercise Price shall
        be
        appropriately adjusted to apply to such Alternate Consideration based on
        the
        amount of Alternate Consideration issuable in respect of one share of Common
        Stock in such Fundamental Transaction, and the Company shall apportion the
        Exercise Price among the Alternate Consideration in a reasonable manner
        reflecting the relative value of any different components of the Alternate
        Consideration. If holders of Common Stock are given any choice as to the
        securities, cash or property to be received in a Fundamental Transaction,
        then
        the Holder shall be given the same choice as to the Alternate Consideration
        it
        receives upon any exercise of this Warrant following such Fundamental
        Transaction. Any successor to the Company or surviving entity in such
        Fundamental Transaction shall, issue to the Holder a new warrant substantially
        in the form of this Warrant and consistent with the foregoing provisions
        and
        evidencing the Holder's right to purchase the Alternate Consideration for
        the
        aggregate Exercise Price upon exercise thereof. The terms of any agreement
        pursuant to which a Fundamental Transaction is effected shall include terms
        requiring any such successor or surviving entity to comply with the provisions
        of this paragraph (b). 

       

       

      9. Payment
        of Exercise Price.
        The
        Holder shall pay the Exercise Price in cash by delivering to the Company
        immediately available funds.

       

      10. No
        Fractional Shares.
        No
        fractional shares of Warrant Shares will be issued in connection with any
        exercise of this Warrant. In lieu of any fractional shares which would,
        otherwise be issuable, the Company shall pay cash equal to the product of
        such
        fraction multiplied by the closing price of one Warrant Share as reported
        by the
        applicable Trading Market on the date of exercise.

       

      11. Notices.
        Any and
        all notices or other communications or deliveries hereunder (including, without
        limitation, any Exercise Notice) shall be in writing and shall be deemed
        given
        and effective on the earliest of (i) the date of transmission, if such notice
        or
        communication is delivered via facsimile at the facsimile number specified
        in
        this Section prior to 6:30 p.m. (New York City time) on a Trading Day, (ii)
        the
        next Trading Day after the date of transmission, if such notice or communication
        is delivered via facsimile at the facsimile number specified in this Section
        on
        a day that is not a Trading Day or later than 6:30 p.m. (New York City time)
        on
        any Trading Day, (iii) the Trading Day following the date of mailing, if
        sent by
        nationally recognized overnight courier service, or (iv) upon actual receipt
        by
        the party to whom such notice is required to be given. The addresses for
        such
        communications shall be: (i) if to the Company, to Calypte Biomedical
        Corporation, Attn: President, or to Facsimile No.: 503-601-6299 (or such
        other
        address as the Company shall indicate in writing in accordance with this
        Section), or (ii) if to the Holder, to the address or facsimile number appearing
        on the warrant register or such other address or facsimile number as the
        Holder
        may provide to the Company in accordance with this Section.

       

      12. Warrant
        Agent.
        The
        Company shall serve as warrant agent under this Warrant. Upon 10 days' notice
        to
        the Holder, the Company may appoint a new warrant agent. Any corporation
        into
        which the Company or any new warrant agent may be merged or any corporation
        resulting from any consolidation to which the Company or any new warrant
        agent
        shall be a party or any corporation to which the Company or any new warrant
        agent transfers substantially all of its corporate trust or shareholders
        services business shall be a successor warrant agent under this Warrant without
        any further act. 

       

      13. Miscellaneous.

       

      (a) This
        Warrant shall be binding on and inure to the benefit of the parties hereto
        and
        their respective successors and assigns. Subject to the preceding sentence,
        nothing in this Warrant shall be construed to give to any Person other than
        the
        Company and the Holder any legal or equitable right, remedy or cause of action
        under this Warrant. This Warrant may be amended only in writing signed by
        the
        Company and the Holder and their successors and assigns.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      (b) All
        questions concerning the construction, validity, enforcement and interpretation
        of this Warrant shall be governed by and construed and enforced in accordance
        with the internal laws of the State of Delaware, without regard to the
        principles of conflicts of law thereof. Each party agrees that all legal
        proceedings concerning the interpretations, enforcement and defense of this
        Warrant and the transactions herein contemplated (“Proceedings”)
        (whether brought against a party hereto or its respective Affiliates, employees
        or agents) shall be commenced exclusively in the Portland Courts. Each party
        hereto hereby irrevocably submits to the exclusive jurisdiction of the Portland
        Courts for the adjudication of any dispute hereunder or in connection herewith
        or with any transaction contemplated hereby or discussed herein, and hereby
        irrevocably waives, and agrees not to assert in any Proceeding, any claim
        that
        it is not personally subject to the jurisdiction of any Portland Court, or
        that
        such Proceeding has been commenced in an improper or inconvenient forum.
        Each
        party hereto hereby irrevocably waives personal service of process and consents
        to process being served in any such Proceeding by mailing a copy thereof
        via
        registered or certified mail or overnight delivery (with evidence of delivery)
        to such party at the address in effect for notices to it under this Warrant
        and
        agrees that such service shall constitute good and sufficient service of
        process
        and notice thereof. Nothing contained herein shall be deemed to limit in
        any way
        any right to serve process in any manner permitted by law. Each party hereto
        hereby irrevocably waives, to the fullest extent permitted by applicable
        law,
        any and all right to trial by jury in any legal proceeding arising out of
        or
        relating to this Warrant or the transactions contemplated hereby. If either
        party shall commence a Proceeding to enforce any provisions of this Warrant,
        then the prevailing party in such Proceeding shall be reimbursed by the other
        party for its attorney’s fees and other costs and expenses incurred with the
        investigation, preparation and prosecution of such Proceeding.

       

      (c) The
        headings herein are for convenience only, do not constitute a part of this
        Warrant and shall not be deemed to limit or affect any of the provisions
        hereof.

       

      (d) In
        case
        any one or more of the provisions of this Warrant shall be invalid or
        unenforceable in any respect, the validity and enforceability of the remaining
        terms and provisions of this Warrant shall not in any way be affected or
        impaired thereby and the parties will attempt in good faith to agree upon
        a
        valid and enforceable provision which shall be a commercially reasonable
        substitute therefor, and upon so agreeing, shall incorporate such substitute
        provision in this Warrant.

       

      (e) Prior
        to
        exercise of this Warrant, the Holder hereof shall not, by reason of being
        a
        Holder, be entitled to any rights of a stockholder with respect to the Warrant
        Shares.

       

       

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK, SIGNATURE
        PAGE FOLLOWS]

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

          IN
        WITNESS
        WHEREOF, the Company has caused this Warrant to be duly executed by its
        authorized officer as of the date first indicated above.

       

      
        	 	 	 
	 	CALYPTE
                BIOMEDICAL CORPORATION
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Name:
                Donald N. Taylor
	 	Title:
                President and Chief Executive Officer

      

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      EXERCISE
        NOTICE

       

      CALYPTE
        BIOMEDICAL CORPORATION

       

      WARRANT
        DATED SEPTEMBER __, 2008

       

      

       

      The
        undersigned Holder hereby irrevocably elects to purchase _____________ shares
        of
        Common Stock pursuant to the above referenced Warrant. Capitalized terms
        used
        herein and not otherwise defined have the respective meanings set forth in
        the
        Warrant.

       

      (1) The
        undersigned Holder hereby exercises its right to purchase _________________
        Warrant Shares pursuant to the Warrant.

       

      (2) The
        holder shall pay the sum of $____________ to the Company in accordance with
        the
        terms of the Warrant.

       

      (3) Pursuant
        to this Exercise Notice, the Company shall deliver to the holder _______________
        Warrant Shares in accordance with the terms of the Warrant.

       

      

      
        	 	 	 
	 	 	 
	
                Dated:         ,     

              	 	
                Name
                  of Holder/name on certificate:

              
	 	 	 
	 	 	
                (Print)                     

              
	 	 	 
	
                Mailing
                  address for certificate:

              	 	
                By:                        
                  

              
	 	 	
                Name:                         
                   

              
	 	 	
                Title:                            
                  

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

              

      

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      Warrant
        Shares Exercise Log

       

      
        	
                Date

              	
                Number
                  of Warrant Shares Available to be Exercised

              	
                Number
                  of Warrant Shares Exercised

              	
                Number
                  of Warrant Shares Remaining to be Exercised

              
	
                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

              	 	 	 

      

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      CALYPTE
        BIOMEDICAL CORPORATION 

      WARRANT
        ORIGINALLY ISSUED SEPTEMBER __, 2008

      WARRANT
        NO. _____

       

      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 above-captioned
        Warrant to purchase ____________ shares of Common Stock to which such Warrant
        relates and appoints ________________ attorney to transfer said right on
        the
        books of the Company 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 Transfere	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	In the presence of:	 	 	 
	 	 	 	 
	 	 	 	 

      

       

      
        
           

        

        
          10

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