You would include this codebase tag if you have a folder to store .class extension files.

This is what you would write in a HTML file.

<APPLET CODEBASE="class" CODE="TextScrollerApplet.class" WIDTH=500 HEIGHT=50>

Note:
You can name anything for JAVA class extension folder. In this case I named it "class". 

Parameter Name:  CodeBase
Possible Values: any given name
Default:         none
Description:     This optional attribute specifies the 
                 base URL of the applet -- the directory
                 that contains the applet's code (.class files).
                 If this attribute is not specified, then
                 the document's URL is used.

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