AMENDED
ATTORNEY-CLIENT FEE AGREEMENT
This is
the written fee agreement ("Agreement") that California law or firm
policy requires an attorney to have with a client. Shaub &
Williams (“Attorney") has continued to provide legal services
relating to the undersigned client(s) Cord Blood America, Inc.
and its subsidiaries (“Client"). The firm is a limited
liability partnership (LLP), registered with the California
Secretary of State and the State Bar of California. The partners
and other professionals of an LLP are responsible for their own
tortious conduct but not for the misconduct of others. The assets
of an LLP, including amounts payable to clients under any policies
of insurance covering errors and omissions of professionals of the
firm, are available to satisfy claims against the LLP.
1
.
CONDITIONS . This Agreement will not take effect, and
Attorney will have no obligation to continue provide legal services
under its terms until Client returns this Agreement signed by
Client and Client pays the initial retainer called for under
Article 7 below.
2.
SCOPE OF
SERVICES . Client
hires Attorney to provide legal services: for corporate and
litigation matters requested and all matters incidental
thereto. If Client requests Attorney to provide legal services in
other matters, the provision of those services also will be
governed by this Agreement.
3.
AUTHORIZATION
BY CLIENT .
Attorney is authorized by Client to perform any service for and on
Client's behalf to do all things which Attorney considers
necessary, appropriate or advisable to resolve or complete the
matters for which Client has requested Attorney's
services.
4.
FEES
. Client
hereby agrees to pay Attorney's fees which are based upon the time
expended and required to represent Client in the above-described
matters; without limiting the foregoing, Attorney will charge
Client for the time Attorney spends on telephone calls relating to
Client's matter, including but not limited to calls with Client,
witnesses, experts, consultants, investigators and other persons
hired for the matter as well as any co-counsel, opposing counsel
and court and administrative agency personnel; the legal personnel
assigned to Client's matters will confer among themselves about the
matters as required; when they do confer, each person will charge
for the time expended; likewise, if more than one of Attorney's
legal personnel attends a meeting, hearing or other proceeding,
each will charge for the time spent; Attorney will charge for
waiting time in court and elsewhere and for travel time both local
and out of town. Attorney agrees that prior to expending time
equivalent to more than $5,000 in fees on a particular project,
Attorney will provide Client a good faith estimate of the time to
be expended for such project.
Time is
charged in minimum units of l/l0th (0.1) of an hour.
5.
BILLING
RATES .
Attorney's current billing rates are as follows:
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Partners
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US$275-350 per
hour
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Of Counsel
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US$240-350 per
hour
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Associates
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US$110-265 per
hour
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Clerks/Paralegals
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US$ 60 - 80 per
hour
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6.
INCREASES
IN FEES .
Attorney may from time to time find it necessary to increase its
hourly billing rates. Attorney will notify Client at least one
month in advance of any such increases. Client should feel free to
discuss with Attorney any questions Client may have prior to the
effective date of the change or increase. All changes or increases
to which Client has no objection, or are paid by Client, will be
deemed to be accepted and become part of this Agreement. If Client
objects or declines to pay any increased rates, Attorney will have
the right to withdraw as Attorney for the Client and terminate this
Agreement.
7.
RETAINER
FEE AND REPLENISHING DEPOSIT . Client
agrees to issue to Attorney an initial retainer to cover services
rendered prior to or after the execution of this fee agreement
totaling 1 million shares of registered, free trading Cord Blood
America, Inc. stock. Attorney may sell such shares
as
costs are incurred and fees earned and apply the net proceeds of
sale of such shares as payment for outstanding and current
billings. Attorney acknowledges the provisions of the securities
laws which preclude trading on inside information, including
specifically Section 10b and Rule 10b(5) under the Securities and
Exchange Act of 1934, and agrees to abide by all such laws.
Attorney agrees to hold unsold shares in trust until such time as a
bill is either outstanding or current costs are incurred or fees
earned. Attorney reserves the right to require, and anticipate the
need for, deposits or advances for fees, costs and expenses as they
are or will be incurred or paid once all shares of Cord Blood
America, Inc. issued to Attorney are sold or can no longer be sold
on the open market. If additional retainers, deposits or advances
are necessary, Attorney will contact Client and request payments in
accordance with this Agreement. Client agrees to make all such
payments in accordance with Attorney's requests. The initial
payment, and future payments made under this Article [which could
be more or less than the initial amount(s)], will each be a deposit
or advance on account of costs and expenses as and when they are
incurred by Attorney or billed to Client, and on account of
attorney's fees billed to Client. Client authorizes Attorney to
draw against any retainer, deposit or advance accordingly, and,
without limiting the foregoing, to pay any costs or expenses
incurred and any fees due. Notwithstanding the payment of any
retainer now or hereafter made by Client, client agrees to pay
Attorney's billing statements in full in accordance with the terms
of this Agreement so that all retainers, advances or deposits are
replenished from time to time. Any balance of any retainer, advance
or deposit after Attorney's final billing will be refunded or paid
to Client. Client acknowledges that all retainers, advances or
deposits are not estimates of fees or costs but merely advances,
payments or deposits for security.
8.
EXPENSES
. Attorney
will incur various costs and expenses in performing legal services
under this Agreement. Client agrees to pay for all such costs and
expenses. Attorney agrees to seek payment of such costs from the
retainer of 1 million Cord Blood America, Inc. shares as long as
such shares have not already been sold to cover earlier fees and/or
costs and as long as such shares can be sold on the open market.
Costs and expenses commonly incurred include government charges,
filing fees, lodgment fees and like expenses; attorney and
corporate services fees and expenses; long distance telephone
calls; cellular telephone calls; overnight delivery services;
messenger and other delivery fees; extraordinary postage; parking
and other local travel expenses; bank fees and charges relating to
wire, telegraphic or similar transfers of funds, as well as
dishonored checks; fees costs and expenses of experts, consultants,
investigators, searchers, and other professionals which Attorney
retains or associates in connection with the representation;
mediators, arbitrators, referees, and special masters' fees and
expenses and other similar items; out-of-town travel, mileage,
meals and accommodations; on-line charges, including but not
limited to Westlaw, Lexis and the Internet; photocopying and other
reproduction costs; fax charges; clerical staff; secretarial
overtime; charges for outside word processing and other similar
items. In the case of litigation, Client also agrees to pay for all
court costs, including filing fees; jury fees; court and deposition
reporters' fees and expenses; notary fees; depositions;
translations; certifications; process servers; attorney services;
transcripts; video deposition, editing and play back costs; witness
fees; demonstrative evidence and miscellaneous case costs. In
litigation matters where the place of deposition, hearing, trial,
production or inspection is more than 50 miles from Attorney's
office, Attorney may retain local co-counsel to handle any
emergency or routine matters in the interests of efficiency. Client
agrees to pay all such costs, disbursements and expenses in
addition to hourly fees. Attorney may request that Client make any
payments of more than $100 directly to the providers of goods
and/or services, and Client agrees to do so upon such request. Any
damages, attorney's fees, costs, sanctions or other monies that
Client is ordered to pay to other parties by a court or
arbitrator(s) will be Client's entire responsibility.
9.
BILLING
STATEMENTS. Attorney
will send Client monthly statements which normally are rendered
prior to the 15th day of each month. Billing statements are due and
payable on receipt. Until all shares of Cord Blood America, Inc.
stock issued to Attorney are sold to pay prior fees and/or costs or
such shares cannot be sold on the open market, Attorney agrees to
sell shares to pay such billing statements. Client agrees to
contact Attorney no later than forty-five days from the date of the
bill with any questions or objections to the bill. Any questions or
objections not made by Client to Attorney in writing within that
period will be deemed waived. Except as provided herein by sale of
the retainer of 1million shares of Cord Blood America, Inc., unless
otherwise stated on Attorney’s billing statements, all
billings will be in United States currency and payable in United
States currency drawn on a U.S. bank.
Attorney
reserves the right to charge interest at the rate of 1-1/2% per
month on the unpaid balance of any fees, costs, expenses and other
amounts that remain outstanding and past due for a period in excess
of 120 days whether or not this agreement has been
terminated.
Where a
requested retainer, deposit, advance