Exhibit 10.9
 
CONVERTIBLE PROMISSORY NOTE
$800,000 PLUS INTEREST DUE & PAYABLE
DOCUMENT B-03012010b)
 
 
THIS NOTE AND THE SHARES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS NOTE AND THE
SHARES ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT OR
APPLICABLE EXEMPTION OR SAFE HARBOR PROVISION.
 
FOR VALUE RECEIVED, on the Effective Dale, as defined below on the signature
page. Cord Blood America, Inc. as Obligor ("Borrower," or "Obligor"), hereby
promises to pay to the Lender ("Lender" or " Holder"), as defined below on the
signature page, the Principal Sum, as defined below, along with the Interest
Rate, as defined below, according to the terms herein.
 
The-Lender" shall be:
JMJ Financial / Its Principal, or Its Assignees
The "Principal Sum" shall be:
$800.000 (eight hundred thousand US Dollars): Subject to the following: accrued,
unpaid interest shall be added to the Principal Sum.
The "Consideration" shall be:
$750,000 (seven hundred fifty thousand US Dollars) in the form of the Secured &
Collateralized Promissory Note Document C-030l2010b (including Security &
Collateral Agreement).
The "Interest Rate" shall be:
10% one-time interest charge on the Principal Sum. No interest or principal
payments are required until the Maturity Date, but both principal and interest
may be included in conversion prior to maturity date.
The "Conversion Price" shall be the following price:
As applied to the Conversion Formula set forth in 2.2, 85% (eighty-five percent)
of the average of the five (5) lowest trade prices in the 20 trading days
previous to the conversion: as applies to Cord Blood America, Inc. voting common
stock.
The "Maturity Date" is the date upon which the Principal Sum of this Note, as
well as any unpaid interest shall be due and payable, and that dale shall be:
3 (three) years from the Effective Date, as defined below on the signature page.
The "Prepayment Terms" shall be:
Prepayment is not permitted, unless approved by Holder in writing.

 
DOCUMENT B-03012010b
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ARTICLE I PAYMENT-RELATED PROVISIONS
 
1.1 Interest Rate. Subject to the Holder's right to convert, interest payable on
this Note will accrue interest at the Interest Rate and shall be applied to the
Principal Sum.
 
ARTICLE 2 CONVERSION RIGHTS
 
The Holder will have the right to convert the Principal Sum and accrued interest
under this Note into Shares of the Borrower's Common Stock as set forth below.
 
2.1 Conversion Rights and Cashless Exercise. Subject to the terms set forth in
Section 2.7, the Holder will have the right at its election from and after the
Effective Date, and then at any time, to convert all or part of the outstanding
and unpaid Principal Sum and accrued interest into shares of fully paid and
nonassessable shares of common stock of Cord Blood America. Inc. (as such stock
exists on the date of issuance of this Note, or any shares of capital stock of
Cord Blood America. Inc. into which such stock is hereafter changed or
reclassified, the "Common Stock") as per the Conversion Formula set forth in
Section 2.2. Any such conversion shall be cashless, and shall not require
further payment from Holder. Unless otherwise agreed in writing by both the
Borrower and the Holder, at no time will the Holder convert any amount of the
Note into common stock that would result in the Holder owning more than 4.99% of
the common stock outstanding of Cord Blood America, Inc. Shares from any such
conversion will be delivered to Holder within 2 (two) business days of
conversion notice delivery (see 3.1) via "I ) "DWAC/FAST" electronic transfer
(see Section 2.6).
 
2.2. Conversion Formula. The number of shares issued through conversion is the
conversion amount divided by the conversion price.
 
 
ft Shares = Conversion Amount
                       Conversion Price

 
2.3 Conversion Formula Adjustments. The Conversion Formula described in Sections
2.2 and the number and kind of shares or other securities to be issued upon
conversion is subject to adjustment upon any of the events as described in 2.3.1
to 2.3.3, or any other event as mutually agreed in writing by both the Holder
and Borrower. The adjustment due to any of the described events shall be: The
result of the Conversion Formula described in 2.2 above shall be multiplied by
(2) two, such that the number of shares calculated in the Conversion Formula
would be doubled.
 
2.3.1. Merger. Consolidation or Sale of Assets. If the Borrower at any time
consolidates with or merges into, or sells or conveys all or substantially all
of its assets to. any other entity, the unpaid Principal Sum of this Note and
accrued interest thereon will thereafter be deemed to evidence the right to
purchase such number and kind of shares or other securities and properly as
would have been issuable or distributable, on account of such consolidation,
merger, sale or conveyance, upon or with respect to the securities subject to
the conversion or purchase right immediately prior to such consolidation,
merger, sale or conveyance. The foregoing provision will similarly apply to
successive transactions of a similar nature by any such successor or purchaser.
Without limiting the generality of the foregoing, the anti-dilution provisions
of this Note will apply to such securities of such successor or purchaser after
any such consolidation, merger, sale or conveyance.
 
 
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2.3.2. Reclassification. If the Borrower at any time, by reclassification or
otherwise, changes the Common Stock into the same or a different number of
securities of any class or classes, the unpaid Principal Sum of this Note and
accrued interest thereon will thereafter be deemed to evidence the right to
purchase such number and kind of securities as would have been issuable as the
result of such change with respect to the Common Stock immediately prior to such
reclassification or other change.
 
2.3.3. Stock Splits. Stock Dividends, and Combinations. If the shares of Common
Stock are subdivided or combined into a greater or smaller number of shares of
Common Stock, or if a stock dividend is paid on the Common Stock.
 
2.4. This section 2.4 intentionally left blank.
 
2.5 Reservation of Shares. As of the issuance date of this Note and for the
remaining period during which the conversion right exists, the Borrower will
reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of Common Stock upon the full conversion of
this Note. The Borrower represents that upon issuance, such shares will be duly
and validly issued, fully paid and non-assessable. The Borrower agrees that its
issuance of this Note constitutes full authority to its officers, agents and
transfer agents who are charged with the duty of executing and issuing stock
certificates to execute and issue the necessary certificates for shares of
Common Stock upon the conversion of this Note.
 
2.6. Delivery' of Conversion Shares. Shares from any such conversion will be
delivered to Holder by 2:30pm EST within 2 (two) business days of conversion
notice delivery (see 3.1) by "DWAC/FAST" electronic transfer (see "Share
Delivery" attachment). If those shares are not delivered in accordance with this
timeframe stated in this Section 2.6. at any time for any reason prior to
offering those shares for sale in a private transaction or in the public market
through its broker, Holder may rescind that particular conversion to have the
conversion amount returned to the note balance with the conversion shares
returned to the Borrower. The Company will make its best efforts to deliver
shares to Holder same day /next day.
 
2.7. Discharge By Payment. Conversions under this Convertible Promissory Note
Document B-03012010b are available only after the Conversion Amount described
herein is discharged by payment of equal or greater value from the Secured &
Collateralized Promissory Note Document C-03012010b by either, at the Holder's
choice, cash payment, or surrender of security/collateral, or other negotiated
form of payment mutually agreed to in writing.
 
ARTICLE 3 MISCELLANEOUS
 
3.1. Notices. Any notice required or permitted hereunder must be in writing and
either personally served, sent by facsimile or email transmission, or sent by
overnight courier. Notices will be deemed effectively delivered at the time of
transmission if by facsimile or email, and if by overnight courier the business
day after such notice is deposited with the courier service for delivery.
 
DOCUMENT B-03012010b
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3.2. Amendment Provision. The term "Note" and all reference thereto, as used
throughout this instrument, means this instrument as originally executed, or if
later amended or supplemented, then as so amended or supplemented.
 
3.3. Assignability. This Note will be binding upon the Borrower and its
successors and permitted assigns, and will inure to the benefit of the Holder
and its successors and permitted assigns, and may be assigned by the Holder.
 
3.4. Governing Law. This Note will be governed by. and construed and enforced in
accordance, with the laws of the State of Florida, without regard to the
conflict of laws principles thereof. 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 Florida or in the federal courts located in
Miami-Dade County, in the Stale of Florida. Both parties and the individuals
signing this Agreement agree to submit to the jurisdiction of such courts.
 
3.5. Maximum Payments. Nothing contained herein may be deemed to establish or
require the payment of a rate of interest or other charges in excess of the
maximum permitted by applicable law. In the event that the rate of interest
required to be paid or other charges hereunder exceed the maximum permitted by
such law, any payments in excess of such maximum will be credited against
amounts owed by the Borrower to the Holder and thus refunded to the Borrower.
 
3.6. Attorney Fees. In the event any attorney is employed by either party to
this Note with regard to any legal or equitable action, arbitration or other
proceeding brought by such party for the enforcement of this Note or because of
an alleged dispute, breach, default or misrepresentation in connection with any
of the provisions of this Note, the prevailing party in such proceeding will be
entitled to recover from the other party reasonable attorneys' fees and other
costs and expenses incurred, in addition to any other relief to which the
prevailing party may be entitled.
 
3.7.  No Public Announcement. Except as required by securities law, no public
announcement may be made regarding this Note, payments, or conversions without
written permission by both Borrower and Holder.
 
3.8. Opinion of Counsel. In the event that an opinion of counsel is needed for
any matter related to this Note, Holder has the right to have any such opinion
provided by its counsel. Holder also has the right to have any such opinion
provided by Borrower's counsel.
 
3.9. Effective Date. This Note will become effective only upon occurrence of the
two following events: execution by both parties, and delivery of valid payment
by the Lender in the form of the Secured & Collateralized Promissory Note
Document C-03012010b (including Security & Collateral Agreement).
 
3.10. Director's Resolution. Once effective, Borrower will execute and deliver
to Holder a copy of a Board of Director's resolution resolving that this note is
validly issued, paid, and effective.

DOCUMENT B-03012010b
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BORROWER[S]:
  [img001.jpg] Matthew L. Schissler Chairman & CEO Cord Blood America, Inc.    
LENDER/HOLDER:   [img002.jpg] JMJ Financial / Its Principal  

 
EFFECTIVE DATE AS EXECUTED BY LENDER/HOLDER:     10/7/10  
 
NOTARY FOR SIGNATURE BY LENDER/HOLDER:
 
[img003.jpg]
 
DOCUMENT B-03012010b
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SAMPLE
NOTICE OF CONVERSION
 
(To be executed by the Holder in order to convert the Note)
 
The undersigned hereby elects to convert a portion of the Note issued by Cord
Blood America, Inc. into Shares of Common Stock of Cord Blood America, Inc.
according to the conditions set forth in such Note, as of the date written
below.
 
Date of
Conversion:__________________________________________________________________________
                                                                                                                 
Conversion
Amount:_________________________________________________________________________   
                                                                              .                            
Conversion
Price:___________________________________________________________________________         
                                                                                                        
Shares To Be
Delivered:______________________________________________________________________ 
                                                                                                       .
Signature:_________________________________________________________________________________
                                                                          .                            
Print
Name:________________________________________________________________________________        
                                        .                                           .                       
Address:__________________________________________________________________________________
 
_________________________________________________________________________________________
 
_________________________________________________________________________________________

 
Shares from any such conversion will be delivered to Holder by 2:30pm EST within
2 (two) business days of conversion notice by "DWAC/FAST" electronic transfer in
accordance with Section 2.6.

DOCUMENT B-03012010b
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SHARE DELIVERY ATTACHEMENT
 
EXAMPLE
 
2.6. Delivery of Conversion Shares. Shares from any such conversion will be
delivered to Holder within 2 (two) business days of conversion notice delivery
(see 3.1) via "DWAC/FAST" electronic transfer. If those shares are not delivered
in accordance with this timeframe stated in this Section 2.6, at any time for
any reason prior to offering those shares for sale in a private transaction or
in the public market through its broker, Holder may rescind that particular
conversion to have the conversion amount returned to the note balance with the
conversion shares returned to the Borrower.
 
Example:
 
Holder delivers conversion notice to Borrower at 5:15pm eastern time on Monday
January 1st.
 
Borrower's transfer agent must deliver shares to Holder's broker via "DWAC/FAST"
electronic transfer by no later than 10:30am eastern time on Wednesday January
3rd.

 
 
DOCUMENT B-03012010b

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