Document:

Exhibit 10.19

 

 

QUICKLOGIC
CORPORATION

 

2005 EXECUTIVE
BONUS PLAN

 

 

TABLE OF CONTENTS

 

	
  SECTION 1

  	
  BACKGROUND,
  PURPOSE AND DURATION

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Effective Date

  	
   

  
	
  1.2

  	
  Purpose of the Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  “Actual Award”

  	
   

  
	
  2.2

  	
  “Affiliate”

  	
   

  
	
  2.3

  	
  “Board”

  	
   

  
	
  2.4

  	
  “Code”

  	
   

  
	
  2.5

  	
  “Committee”

  	
   

  
	
  2.6

  	
  “Company”

  	
   

  
	
  2.7

  	
  “Disability”

  	
   

  
	
  2.8

  	
  “Employee”

  	
   

  
	
  2.9

  	
  “Participant”

  	
   

  
	
  2.10

  	
  “Performance Period”

  	
   

  
	
  2.11

  	
  “Plan”

  	
   

  
	
  2.12

  	
  “Target
  Award”

  	
   

  
	
  2.13

  	
  “Termination of Service”

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3

  	
  SELECTION
  OF PARTICIPANTS AND DETERMINATION OF AWARDS

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Selection of Participants

  	
   

  
	
  3.2

  	
  Determination of Target Awards

  	
   

  
	
  3.3

  	
  Discretion to Modify Awards

  	
   

  
	
  3.4

  	
  Discretion to
  Determine Criteria

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4

  	
  PAYMENT OF AWARDS

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Right to Receive Payment

  	
   

  
	
  4.2

  	
  Timing of Payment

  	
   

  
	
  4.3

  	
  Form of Payment

  	
   

  
	
  4.4

  	
  Payment in the Event of
  Death or Disability

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5

  	
  VARIABLE PAY PROGRAM

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6

  	
  ADMINISTRATION

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Committee is the
  Administrator

  	
   

  
	
  6.2

  	
  Committee Authority

  	
   

  
	
  6.3

  	
  Decisions Binding

  	
   

  
	
  6.4

  	
  Delegation by the Committee

  	
   

  

 

i

 

	
  SECTION 7

  	
  GENERAL PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Tax Withholding

  	
   

  
	
  7.2

  	
  No Effect on
  Employment or Service

  	
   

  
	
  7.3

  	
  Participation

  	
   

  
	
  7.4

  	
  Successors

  	
   

  
	
  7.5

  	
  Beneficiary Designations

  	
   

  
	
  7.6

  	
  Nontransferability of
  Awards

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8

  	
  AMENDMENT,
  TERMINATION AND DURATION

  	
   

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  Amendment,
  Suspension or Termination

  	
   

  
	
  8.2

  	
  Duration of the Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9

  	
  LEGAL CONSTRUCTION

  	
   

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Gender and Number

  	
   

  
	
  9.2

  	
  Severability

  	
   

  
	
  9.3

  	
  Requirements of Law

  	
   

  
	
  9.4

  	
  Governing Law

  	
   

  
	
  9.5

  	
  Captions

  	
   

  

 

ii

 

QUICKLOGIC
CORPORATION

 

2005
EXECUTIVE BONUS PLAN

 

 

SECTION 1

BACKGROUND, PURPOSE AND DURATION

 

1.1                                 Effective Date.  The Compensation
Committee of the Board adopted the Plan effective as of January 1, 2005.

 

1.2                                 Purpose of the Plan.  The Plan
is intended to increase shareholder value and the success of the Company by
motivating key employees (a) to perform to the best of their abilities,
and (b) to achieve the Company’s objectives.

 

SECTION 2

DEFINITIONS

 

The
following words and phrases shall have the following meanings unless a
different meaning is plainly required by the context:

 

2.1                                 “Actual Award” means as to any Performance
Period, the actual award (if any) payable to a Participant for the Performance
Period, subject to the Committee’s authority under Section 3.3 to modify
the award.

 

2.2                                 “Affiliate” means any corporation or other
entity (including, but not limited to, partnerships and joint ventures)
controlled by the Company.

 

2.3                                 “Board” means the Board of Directors of the
Company.

 

2.4                                 “Code” means the Internal Revenue Code of 1986, as
amended.  Reference to a specific section of
the Code or regulation thereunder shall include such section or
regulation, any valid regulation promulgated thereunder, and any comparable
provision of any future legislation or regulation amending, supplementing or
superseding such section or regulation.

 

2.5                                 “Committee” means the committee appointed by
the Board (pursuant to Section 6.1) to administer the Plan.  Until otherwise determined by the Board,
(a) the Company’s Compensation Committee shall constitute the Committee,
and (b) for administrative convenience, the independent, non-employee
members of the Board also may act as the Committee from time to time.

 

2.6                                 “Company” means QuickLogic Corporation, a
Delaware corporation, or any successor thereto.

 

 

2.7                                 “Disability” means a permanent and total
disability determined in accordance with uniform and nondiscriminatory
standards adopted by the Committee from time to time.

 

2.8                                 “Employee” means any employee of the Company
or of an Affiliate at the level of Vice President or above, whether such
individual is so employed at the time the Plan is adopted or becomes so
employed subsequent to the adoption of the Plan.

 

2.9                                 “Participant” means as to any Performance
Period, an Employee who has been selected by the Committee for participation in
the Plan for that Performance Period.

 

2.10                           “Performance Period” means any fiscal
year of the Company or such other shorter period of time as determined by the
Committee.

 

2.11                           “Plan” means the QuickLogic Corporation 2005
Executive Bonus Plan, as set forth in this instrument and as hereafter amended
from time to time.

 

2.12                           “Target
Award” means the target award payable under the Plan to a Participant for
the Performance Period, as determined by the Committee in accordance with Section 3.2.

 

2.13                           “Termination of Service” means a
cessation of the employee-employer relationship between an Employee and the
Company or an Affiliate for any reason, including, but not by way of
limitation, a termination by resignation, discharge, death, Disability,
retirement, or the disaffiliation of an Affiliate, but excluding any such
termination where there is a simultaneous reemployment by the Company or an
Affiliate.

 

SECTION 3

SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS

 

3.1                                 Selection of Participants. 
The Committee, in its sole discretion, shall select the Employees who shall be
Participants for any Performance Period. 
Participation in the Plan is in the sole discretion of the Committee, on
a Performance Period by Performance Period basis.  Accordingly, an Employee who is a Participant
for a given Performance Period in no way is guaranteed or assured of being
selected for participation in any subsequent Performance Period or Periods.

 

3.2                                 Determination of Target Awards. 
The Committee, in its sole discretion, shall establish a Target Award for each
Participant.

 

3.3                                 Discretion to Modify Awards. 
Notwithstanding any contrary provision of the Plan, the Committee may, in its
sole discretion and at any time increase, reduce or eliminate a Participant’s
Actual Award.  The Committee may
determine the amount of any reduction on the basis of such factors as it deems
relevant, and shall not be required to establish any allocation or weighting
with respect to the factors it considers.

 

2

 

3.4                                 Discretion to Determine Criteria. 
Notwithstanding any contrary provision of the Plan, the Committee shall, in its
sole discretion, determine the performance requirements applicable to any
Target Award.  The requirements may be on
the basis of any factors the Committee determines relevant, and may be on an
individual, divisional, business unit or Company-wide basis.  Failure to meet the requirements will result
in a failure to earn the Target Award, except as provided in Section 3.3.

 

SECTION 4

PAYMENT OF AWARDS

 

4.1                                 Right to Receive Payment.  Each
Actual Award shall be paid solely from the general assets of the Company.  Nothing in this Plan shall be construed to
create a trust or to establish or evidence any Participant’s claim of any right
other than as an unsecured general creditor with respect to any payment to
which he or she may be entitled.

 

4.2                                 Timing of Payment.  Payment of
each Actual Award shall be made as soon as practicable as determined by the
Committee after the end of the Performance Period during which the Actual Award
was earned, but in no event later than two and a half months after the end of
the Performance Period.  Unless otherwise
determined by the Committee, a Participant must be employed by the Company or
any Affiliate on the last day of the Performance Period to receive a payment
under the Plan.

 

4.3                                 Form of Payment.  Each Actual Award shall be paid in cash (or its
equivalent) in a single lump sum.

 

4.4                                 Payment in the Event of Death or
Disability.  If a Participant dies or becomes Disabled prior to the
payment of an Actual Award earned by him or her prior to death or Disability
for a prior Performance Period, the Actual Award shall be paid to his or her
estate or to the Participant, as the case may be, subject to the Committee’s
discretion to reduce or eliminate any Actual Award otherwise payable.

 

SECTION 5

VARIABLE PAY PROGRAM

 

At its discretion, the
Committee may also establish a variable pay program under the Plan.  The program may result in (i) an increase or
decrease in an eligible employee’s planned salary compensation and/or (ii) a
bonus payment, based on the Company’s achievement of performance objectives to
be established by the Committee.

 

SECTION 6

ADMINISTRATION

 

6.1                                 Committee is the Administrator. 
The Plan shall be administered by the Committee.  The Committee shall consist of not less than
two (2) independent members of the Board. 
The

 

3

 

members
of the Committee shall be appointed from time to time by, and serve at the
pleasure of, the Board.

 

6.2                                 Committee Authority.  It
shall be the duty of the Committee to administer the Plan in accordance with
the Plan’s provisions.  The Committee
shall have all powers and discretion necessary or appropriate to administer the
Plan and to control its operation, including, but not limited to, the power to
(a) determine which Employees shall be granted awards, (b) prescribe
the terms and conditions of awards (including the provisions of the variable
pay program), (c) interpret the Plan and the awards, (d) adopt such
procedures and subplans as are necessary or appropriate to permit participation
in the Plan by Employees who are foreign nationals or employed outside of the
United States, (e) adopt rules for the administration, interpretation and
application of the Plan as are consistent therewith, and (f) interpret,
amend or revoke any such rules.

 

6.3                                 Decisions Binding.  All
determinations and decisions made by the Committee, the Board, and any delegate
of the Committee pursuant to the provisions of the Plan shall be final,
conclusive, and binding on all persons, and shall be given the maximum
deference permitted by law.

 

6.4                                 Delegation by the Committee. 
The Committee, in its sole discretion and on such terms and conditions as it
may provide, may delegate all or part of its authority and powers under the
Plan to one or more independent directors and/or one or more officers of the
Company.

 

SECTION 7

GENERAL PROVISIONS

 

7.1                                 Tax Withholding.  The Company
shall withhold all applicable taxes from any Actual Award, including any
federal, state and local taxes (including, but not limited to, the Participant’s
FICA and SDI obligations).

 

7.2                                 No Effect on Employment or
Service.  Nothing in the Plan shall interfere with or limit in any
way the right of the Company to terminate any Participant’s employment or
service at any time, with or without cause. 
For purposes of the Plan, transfer of employment of a Participant
between the Company and any one of its Affiliates (or between Affiliates) shall
not be deemed a Termination of Service. 
Employment with the Company and its Affiliates is on an at-will basis
only.  The Company expressly reserves the
right, which may be exercised at any time and without regard to when during a
Performance Period such exercise occurs, to terminate any individual’s
employment with or without cause, and to treat him or her without regard to the
effect that such treatment might have upon him or her as a Participant.

 

7.3                                 Participation.  No Employee shall
have the right to be selected to receive an award under this Plan, or, having
been so selected, to be selected to receive a future award.

 

7.4                                 Successors.  All obligations of the
Company under the Plan, with respect to awards granted hereunder, shall be
binding on any successor to the Company, whether the existence of such
successor is the result of a direct or indirect purchase, merger, consolidation,
or otherwise, of all or substantially all of the business or assets of the
Company.

 

4

 

7.5                                 Beneficiary Designations. 
If permitted by the Committee, a Participant under the Plan may name a
beneficiary or beneficiaries to whom any vested but unpaid award shall be paid
in the event of the Participant’s death. 
Each such designation shall revoke all prior designations by the
Participant and shall be effective only if given in a form and manner
acceptable to the Committee.  In the
absence of any such designation, any vested benefits remaining unpaid at the
Participant’s death shall be paid to the Participant’s estate.

 

7.6                                 Nontransferability of Awards. 
No award granted under the Plan may be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, other than by will, by the laws of descent
and distribution, or to the limited extent provided in Section 7.5.  All rights with respect to an award granted
to a Participant shall be available during his or her lifetime only to the
Participant.

 

SECTION 8

AMENDMENT, TERMINATION AND DURATION

 

8.1                                 Amendment, Suspension or Termination. 
The Board, in its sole discretion, may amend or terminate the Plan, or any part
thereof, at any time and for any reason. The amendment, suspension or
termination of the Plan shall not, without the consent of the Participant,
alter or impair any rights or obligations under any Actual Award theretofore
earned by such Participant.  No award may
be granted during any period of suspension or after termination of the Plan.

 

8.2                                 Duration of the Plan.  The Plan
shall commence on the date specified herein, and subject to Section 8.1
(regarding the Board’s right to amend or terminate the Plan), shall remain in
effect thereafter.

 

SECTION 9

LEGAL CONSTRUCTION

 

9.1                                 Gender and Number.  Except where
otherwise indicated by the context, any masculine term used herein also shall
include the feminine; the plural shall include the singular and the singular
shall include the plural.

 

9.2                                 Severability.  In the event any
provision of the Plan shall be held illegal or invalid for any reason, the
illegality or invalidity shall not affect the remaining parts of the Plan, and
the Plan shall be construed and enforced as if the illegal or invalid provision
had not been included.

 

9.3                                 Requirements of Law.  The
granting of awards under the Plan shall be subject to all applicable laws,
rules and regulations, and to such approvals by any governmental agencies or
national securities exchanges as may be required.

 

5

 

9.4                                 Governing Law.  The Plan and all
awards shall be construed in accordance with and governed by the laws of the
State of California, but without regard to its conflict of law provisions.

 

9.5                                 Captions.  Captions are provided herein
for convenience only, and shall not serve as a basis for interpretation or
construction of the Plan.

 

6EXHIBT 10.21

                                 PROMISSORY NOTE

                                 APRIL 27, 2005

JERSEY CITY, NEW JERSEY                                              $350,000.00

FOR VALUE RECEIVED, the undersigned, CORD BLOOD AMERICA, INC., a Florida
corporation (the "Company"), promises to pay CORNELL CAPITAL PARTNERS, LP (the
"Lender") at 101 Hudson Street, Suite 3700, Jersey City, New Jersey 07302 or
other address as the Lender shall specify in writing, the principal sum of up to
THREE HUNDRED FIFTY THOUSAND DOLLARS ($350,000) and interest on the unpaid
principal sum advanced to the Company by the Lender at the annual rate of twelve
percent (12%) on the unpaid balance pursuant to the following terms:

         WHEREAS, pursuant to a Registration Rights Agreement dated March 22,
2005 between the Company and the Lender (the "Registration Rights Agreement"),
the Company shall file a registration statement with the U.S. Securities and
Exchange Commission ("SEC") to register for resale shares of the Company's
common Stock, par value $0.0001 ("Common Stock") to be issued to the Lender in
connection with the Standby Equity Distribution Agreement dated March 22, 2005
between the Company and the Lender (the "SEDA"); and

         WHEREAS, contemporaneously with the execution and delivery of this
Promissory Note (the "Note"), the Company and the Lender are entering into a
Pledge and Escrow Agreement among the Lender, the Company, Matthew L. Schissler
and Stephanie A. Schissler, and David Gonzalez, Esq. (the "Pledge Agreement")
(collectively, this Note and the Pledge Agreement are referred to as the
"Transaction Documents").

1. FUNDING BY LENDER. Subject to the notification and satisfaction of the
conditions to the Closings set forth herein, the principal amount of One Hundred
Seventy Five Thousand Dollars ($175,000) shall be funded on the date hereof (the
"Initial Closing"), and the principal amount of One Hundred Seventy Five
Thousand Dollars ($175,000) shall be funded on the date the Company notifies the
Lender, in writing, that it has received a written comment letter from the SEC
in connection with the Registration Statement or that the Registration Statement
has been declared effective without comment (the "Second Closing")
(collectively, referred to as the "Closings" and individually referred to as the
"Closing"). The Lender shall fund each Closing as soon as practicable, but shall
be entitled to a five (5) business day grace period to process the funding at
each Closing.

2. PRINCIPAL AND INTEREST. For value received, the Company hereby promises to
pay to the order of the Lender on the nine (9) month anniversary of the date
hereof (the "Maturity Date") in lawful money of the United States of America and
in immediately available funds the principal sum of up to Three Hundred Fifty
Thousand Dollars ($350,000) or such lesser amount requested and received by the
Company under this Note, together with interest on the unpaid principal of this
Note at the rate of twelve percent (12%) per year (computed on the basis of a
365-day year and the actual days elapsed) from the date of each Closing until
paid.

<PAGE>

3. SCHEDULED PRINCIPAL AND INTEREST PAYMENTS OF THE NOTE. The Company shall make
monthly scheduled payments ("Scheduled Payments") of $58,333.33 of principal,
plus accrued and unpaid interest on the outstanding principal as of the date of
each Scheduled Payment. The first Scheduled Payment shall be due and payable on
the date three (3) months from the date hereof, and each succeeding Scheduled
Payment shall be due and payable on the same date on each succeeding calendar
month thereafter for a total of six (6) Scheduled Payments or until all amounts
due hereunder have been paid, if sooner.

4. RIGHT OF PREPAYMENT. Notwithstanding the Scheduled Payments pursuant to
Section 3, the Company at its option shall have the right to prepay, with three
(3) business days advance written notice, a portion or all outstanding principal
of the Note. The prepayment price shall be equal to the amount of principal
prepaid, plus interest accrued on the outstanding principal prepaid. There shall
be no prepayment fee or penalty.

5. FEES. The Company shall pay to Yorkville Advisors Management, LLC a
commitment fee of ten percent (10%) of the gross proceeds of each Closing as a
commitment fee which shall be paid and deducted from the gross proceeds of each
Closing, a fee of $10,000 as a structuring fee which shall be deducted from the
gross proceeds of the Initial Closing, and shall issue to the Lender a warrant
to purchase 1,000,000 shares of Common Stock ("Warrant Shares") at an exercise
price of $0.20 for a period of five (5) years. The warrant shall be exercisable
on a cash basis, except that if there is an event of default under the
Transaction Documents, the Lender shall have the option to exercise the warrant
on a cashless basis. The Company shall include the Warrant Shares on the
Registration Statement.

6. CONDITIONS TO THE LENDER'S OBLIGATIONS TO THE INITIAL CLOSING. The obligation
of the Lender hereunder to fund the Initial Closing is subject to the
satisfaction, at or before the Initial Closing, of each of the following
conditions, provided that these conditions are for the Lender's sole benefit and
may be waived by the Lender at any time in its sole discretion:

     a.   The Company shall have executed the Transaction Documents, and
          delivered the same to the Lender.

     b.   The Company shall have provided to the Lender a certificate of good
          standing from the Secretary of State of the Company's State of
          incorporation.

     c.   The Company shall have obtained the approval of its board of directors
          and a majority of its outstanding shares of capital stock (voting as
          separate classes, if required by applicable law) to approve and ratify
          this transaction.

     d.   Matthew L. Schissler and Stephanie A. Schissler shall have delivered
          to the Escrow Agent the Pledged Shares as well as executed and
          medallion guaranteed stock powers as required pursuant to the Pledge
          Agreement.

7. CONDITIONS TO THE LENDER'S OBLIGATIONS TO THE SECOND CLOSING. The obligation
of the Lender hereunder to fund the Second Closing is subject to the
satisfaction, at or before the Second Closing, of each of the following
conditions, provided that these conditions are for the Lender's sole benefit and
may be waived by the Lender at any time in its sole discretion:

                                       2

<PAGE>

          a.   The Company shall have provided the Lender written notice that
               Company has received a written comment letter from the SEC in
               connection with the Registration Statement or that the
               Registration Statement has been declared effective without
               comment.

          b.   All amounts past due and all amounts currently due to Tedder,
               James, Worden & Associates, P.A. have been satisfied or held in
               escrow out of the gross proceeds of the Second Closing.

          c.   No Events of Default shall have occurred under the Transaction
               Documents.

8. WAIVER AND CONSENT. To the fullest extent permitted by law and except as
otherwise provided herein, the Company waives demand, presentment, protest,
notice of dishonor, suit against or joinder of any other person, and all other
requirements necessary to charge or hold the Company liable with respect to this
Note.

9. COSTS, INDEMNITIES AND EXPENSES. In the event of default as described herein,
the Company agrees to pay all reasonable fees and costs incurred by the Lender
in collecting or securing or attempting to collect or secure this Note,
including reasonable attorneys' fees and expenses, whether or not involving
litigation, collecting upon any judgments and/or appellate or bankruptcy
proceedings. The Company agrees to pay any documentary stamp taxes, intangible
taxes or other taxes which may now or hereafter apply to this Note or any
payment made in respect of this Note, and the Company agrees to indemnify and
hold the Lender harmless from and against any liability, costs, attorneys' fees,
penalties, interest or expenses relating to any such taxes, as and when the same
may be incurred.

10. SECURED NATURE OF THE NOTE. This Note is secured by the Pledged Shares as
defined in the Pledge Agreement.

11. EVENT OF DEFAULT. An "Event of Default" shall be deemed to have occurred
upon the occurrence of any of the following, provided that the Company does not
cure such Event of Default within ten (10) days of receipt of written notice of
the Event of Default from the Lender: (i) failure by the Company to pay amounts
due hereunder, including principal, interest, costs, indemnities, or expenses
within five (5) calendar days of a Scheduled Payment due date or the Maturity
Date; (ii) failure by the Company to satisfy any of its other obligations or
requirements or comply with any of its other agreements under this Note; (iii)
any proceedings under any bankruptcy laws of the United States of America or
under any insolvency, not disclosed to the Lender, reorganization, receivership,
readjustment of debt, dissolution, liquidation or any similar law or statute of
any jurisdiction now or hereinafter in effect (whether in law or at equity) is
filed by or against the Company or for all or any part of its property; or (iv)
a breach by the Company of its obligations under the Pledge Agreement or any
other related agreements hereunder between the Company and the Lender of even
date herewith which is not cured by the Company by any applicable cure period
therein. Upon an Event of Default (as defined above), the entire principal
balance and accrued interest outstanding under this Note, and all other
obligations of the Company under this Note, shall be immediately due and payable
without any action on the part of the Lender, interest shall accrue on the
unpaid principal balance at twenty four percent (24%) per year or the highest
rate permitted by applicable law, if lower and the Lender shall be entitled to
seek and institute any and all remedies available to it.

                                       3

<PAGE>

12. MAXIMUM INTEREST RATE. In no event shall any agreed to or actual interest
charged, reserved or taken by the Lender as consideration for this Note exceed
the limits imposed by New Jersey law. In the event that the interest provisions
of this Note shall result at any time or for any reason in an effective rate of
interest that exceeds the maximum interest rate permitted by applicable law,
then without further agreement or notice the obligation to be fulfilled shall be
automatically reduced to such limit and all sums received by the Lender in
excess of those lawfully collectible as interest shall be applied against the
principal of this Note immediately upon the Lender's receipt thereof, with the
same force and effect as though the Company had specifically designated such
extra sums to be so applied to principal and the Lender had agreed to accept
such extra payment(s) as a premium-free prepayment or prepayments.

13. ISSUANCE OF CAPITAL STOCK. So long as any portion of this Note is
outstanding, with the exception of Common Stock issued pursuant to the SEDA, the
Company shall not, without the prior written consent of the Lender, (i) issue or
sell shares of Common Stock or preferred stock (ii) issue any warrant, option,
right, contract, call, or other security instrument granting the holder thereof,
the right to acquire Common Stock (iii) enter into any security instrument
granting the holder a security interest in any and all assets of the Company, or
(iv) file any registration statement on Form S-8.

14. CANCELLATION OF NOTE. Upon the repayment by the Company of all of its
obligations hereunder to the Lender, including, without limitation, the
principal amount of this Note, plus accrued but unpaid interest, the
indebtedness evidenced hereby shall be deemed canceled and paid in full. Except
as otherwise required by law or by the provisions of this Note, payments
received by the Lender hereunder shall be applied first against expenses and
indemnities, next against interest accrued on this Note, and next in reduction
of the outstanding principal balance of this Note.

15. SEVERABILITY. If any provision of this Note is, for any reason, invalid or
unenforceable, the remaining provisions of this Note will nevertheless be valid
and enforceable and will remain in full force and effect. Any provision of this
Note that is held invalid or unenforceable by a court of competent jurisdiction
will be deemed modified to the extent necessary to make it valid and enforceable
and as so modified will remain in full force and effect.

16. AMENDMENT AND WAIVER. This Note may be amended, or any provision of this
Note may be waived, provided that any such amendment or waiver will be binding
on a party hereto only if such amendment or waiver is set forth in a writing
executed by the parties hereto. The waiver by any such party hereto of a breach
of any provision of this Note shall not operate or be construed as a waiver of
any other breach.

                                       4

<PAGE>

17. SUCCESSORS. Except as otherwise provided herein, this Note shall bind and
inure to the benefit of and be enforceable by the parties hereto and their
permitted successors and assigns.

18. ASSIGNMENT. This Note shall not be directly or indirectly assignable or
delegable by the Company. The Lender may assign this Note as long as such
assignment complies with the Securities Act of 1933, as amended.

19. NO STRICT CONSTRUCTION. The language used in this Note will be deemed to be
the language chosen by the parties hereto to express their mutual intent, and no
rule of strict construction will be applied against any party.

20. FURTHER ASSURANCES. Each party hereto will execute all documents and take
such other actions as the other party may reasonably request in order to
consummate the transactions provided for herein and to accomplish the purposes
of this Note.

21. NOTICES, CONSENTS, ETC. Any notices, consents, waivers or other
communications required or permitted to be given under the terms hereof must be
in writing and will be deemed to have been delivered: (i) upon receipt, when
delivered personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one (1) trading day after deposit
with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be:

If to Company:                   Cord Blood America, Inc.
                                 9000 W. Sunset Boulevard, Suite 4000
                                 Los Angeles, CA 90069
                                 Attention:        Matthew Schissler
                                 Telephone:        (310) 432-4090
                                 Facsimile:        (310) 432-4098

With a Copy to:                  Kirkpatrick & Lockhart Nicholson Graham, LLP
                                 201 South Biscayne Boulevard, Suite 2000
                                 Miami, Florida 33131
                                 Attention:        Clayton E. Parker, Esquire
                                 Telephone:        (305) 539-3306
                                 Facsimile:        (305) 358-7095

If to the Lender:                Cornell Capital Partners, LP
                                 101 Hudson Street, Suite 3700
                                 Jersey City, NJ 07302
                                 Attention:        Mark A. Angelo
                                 Telephone:        (201) 985-8300
                                 Facsimile:        (201) 985-8744

or at such other address and/or facsimile number and/or to the attention of such
other person as the recipient party has specified by written notice given to
each other party three (3) trading days prior to the effectiveness of such
change. Written confirmation of receipt (A) given by the recipient of such

                                       5

<PAGE>

notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the sender's facsimile machine containing the time,
date, recipient facsimile number and an image of the first page of such
transmission or (C) provided by a nationally recognized overnight delivery
service, shall be rebuttable evidence of personal service, receipt by facsimile
or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

22. REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The Lender's
remedies provided in this Note shall be cumulative and in addition to all other
remedies available to the Lender under this Note, at law or in equity (including
a decree of specific performance and/or other injunctive relief), no remedy of
the Lender contained herein shall be deemed a waiver of compliance with the
provisions giving rise to such remedy and nothing herein shall limit the
Lender's right to pursue actual damages for any failure by the Company to comply
with the terms of this Note. No remedy conferred under this Note upon the Lender
is intended to be exclusive of any other remedy available to the Lender,
pursuant to the terms of this Note or otherwise. No single or partial exercise
by the Lender of any right, power or remedy hereunder shall preclude any other
or further exercise thereof. The failure of the Lender to exercise any right or
remedy under this Note or otherwise, or delay in exercising such right or
remedy, shall not operate as a waiver thereof. Every right and remedy of the
Lender under any document executed in connection with this transaction may be
exercised from time to time and as often as may be deemed expedient by the
Lender. The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to the Lender and that the remedy at law
for any such breach may be inadequate. The Company therefore agrees that, in the
event of any such breach or threatened breach, the Lender shall be entitled, in
addition to all other available remedies, to an injunction restraining any
breach, and specific performance without the necessity of showing economic loss
and without any bond or other security being required.

23. GOVERNING LAW; JURISDICTION. All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by
the internal laws of the State of New Jersey, without giving effect to any
choice of law or conflict of law provision or rule (whether of the State of New
Jersey or any other jurisdictions) that would cause the application of the laws
of any jurisdictions other than the State of New Jersey. Each party hereby
irrevocably submits to the exclusive jurisdiction of the Superior Court of the
State of New Jersey sitting in Hudson County, New Jersey and the United States
Federal District Court for the District of New Jersey sitting in Newark, New
Jersey, for the adjudication of any dispute hereunder or in connection herewith
or therewith, or with any transaction contemplated hereby or discussed herein,
and hereby irrevocably waives, and agrees not to assert in any suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of
any such court, that such suit, action or proceeding is brought in an
inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by
mailing a copy thereof to such party at the address for such notices to it under
this Agreement 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.

                                       6

<PAGE>

24. NO INCONSISTENT AGREEMENTS. None of the parties hereto will hereafter enter
into any agreement, which is inconsistent with the rights granted to the parties
in this Note.

25. THIRD PARTIES. Nothing herein expressed or implied is intended or shall be
construed to confer upon or give to any person or entity, other than the parties
to this Note and their respective permitted successor and assigns, any rights or
remedies under or by reason of this Note.

26. WAIVER OF JURY TRIAL. AS A MATERIAL INDUCEMENT FOR THE LENDER TO LOAN TO THE
COMPANY THE MONIES HEREUNDER, THE COMPANY HEREBY WAIVES ANY RIGHT TO TRIAL BY
JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS AGREEMENT AND/OR ANY AND
ALL OF THE OTHER DOCUMENTS ASSOCIATED WITH THIS TRANSACTION.

27. ENTIRE AGREEMENT. This Note (including any recitals hereto) set forth the
entire understanding of the parties with respect to the subject matter hereof,
and shall not be modified or affected by any offer, proposal, statement or
representation, oral or written, made by or for any party in connection with the
negotiation of the terms hereof, and may be modified only by instruments signed
by all of the parties hereto.

                   [REMAINDER OF PAGE INTENTIONALY LEFT BLANK]

                                       7
<PAGE>

         IN WITNESS WHEREOF, this Promissory Note is executed by the undersigned
as of the date hereof.

                                     CORNELL CAPITAL PARTNERS, LP

                                     By:    Yorkville Advisors, LLC
                                     Its:   General Partner

                                     By:
                                         ---------------------------
                                     Name:  Mark Angelo
                                     Its:   Portfolio Manager

                                     CORD BLOOD AMERICA, INC.

                                     By:
                                         ---------------------------
                                     Name:  Matthew Schissler
                                     Title: Chairman and Chief Executive Officer

                                       8

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