ADDITIONAL COSTS

There is a surcharge for advancement of all fees and other payments remitted to the U.S. Patent and Trademark Office, Copyright Office or Courts, if the charges are not specifically listed above, and which have not been paid in advance, of 15% of the amount remitted.  All such fees and charges, and all other out-of-pocket costs and expenses of $1.00 or more, are customarily charged to clients -- usually rounded off to the nearest dollar.  These include costs of facsimile, telephone, duplication, postage, Federal Express or other courier service, transportation, and other out-of-pocket disbursements over $1.00.  The Code of Professional Responsibility emphasizes that ultimate liability for all monetary advances for costs and expenses must be that of the client.

IMPORTANT OTHER INFORMATION

1.         Flat or Fixed fees are based generally on averages derived from past experiences of time required for the corresponding services, taking into account savings incident to record keeping.  If, however, an "Average" is indicated, it means there is too much potential variation in the time and effort required for the service to set a flat fee, and actual fees will be based on hourly rates.  The same is, of course, true if "Minimum" is indicated.

2.         Hourly Rates are based, roughly, on what is being  charged for comparable services performed by persons having similar qualifications, including experience, in the Washington, D.C. Metropolitan area.  They include, as indicated above, office overhead, which amounts to about 50% to 55% of the fee for all overhead which cannot be conveniently charged directly, such as, for example, administrative costs, equipment and space costs, taxes, library, continuing legal education, maintenance and repair, salaries, and so forth.  In addition, indirectly it includes 30% to 40% of time which cannot be charged to a particular client directed to administrative matters, continuing legal education, keeping abreast of recent legal decisions, statutes, regulations, professional articles, etc.  Fees based on hourly charges are usually imposed upon completion of a specific work product, such as the preparation of patent applications, amendments, responses, patent and/or trademark licenses, legal opinions, and the like.  Hourly charges for inter partes matters, such as Interferences, Oppositions and Cancellation Proceedings, as well as Court Proceedings, are usually charged on a month-by-month basis, at least for those months wherein significant services were provided.  Unless provided in conjunction with a specific work product or an ongoing inter partes matter, we generally do not charge for responding to telephone inquiries which do not require further research on our part.  But, it sometimes occurs, that a continuing matter or problem is involved wherein a client needs ongoing advice often on a daily or weekly basis, whereupon such services are charged.  Indirectly it is unfair to other clients if we do not do so.  We maintain our time records on the basis of tenths of hours, that is, six minute intervals or better.  Our charges are initially made on what we term a "Charge Memorandum" which other firms sometimes call invoices, debit notes, debit fees, and the like.  At or about the beginning of each month (with some exceptions), Statements of Account are sent to clients, which include our charge memoranda for the preceding month, acknowledge any payments which were made, and set forth any amount still owing.  If a Charge Memorandum for the prior month is questioned, no charge is made for double-checking our time records to ensure it is correct, or to make adjustments if incorrect (which may result in an increase or decrease).  However, there will be relatively nominal charges if we are required to check charge memoranda which are not for the previous month, or to check charge memoranda more than once.

3.         If substantial economies of scale can be achieved, flat fees may be reduced accordingly.  If it appears economies of scale are probable, estimates will be provided on request.

4.         All Statements of Account are payable within thirty (30) days of receipt unless other arrangements are made.  If payments cannot be made within thirty (30) days, clients are strongly encouraged to let us know.  We reserve an option to add carrying charges up to the extent permitted by law on unpaid balances ninety (90) days or more overdue.

5.         Clients who cannot pay promptly because they are experiencing cash-flow or other financial problems are most strongly urged to let us know as soon as possible.  There are a number of reasons for this.  For example, we may be able to take actions, which reduce or defer further charges and expenses.  Also, we may be able to provide advice, based on years of experience in the Intellectual Property field that would otherwise be unavailable to the client.

6.         Our withdrawal as counsel for clients who are in arrearage for more than ninety (90) days will, unless other arrangements are made, be considered as authorized in all matters wherein we represent them to be exercised at our discretion.

7.         Services and costs incident to withdrawing or attempting to withdraw as counsel, for whatever reason, are charged to clients.  This includes services and costs incident to returning or transferring copies of files, if requested by clients.

8.         Court or agency approval may be required for our withdrawal after we have entered an appearance in Proceedings before a court or an agency, and all services and costs incident thereto will be charged to the client involved.  If withdrawal is not approved, then all other services and costs for further representation will be charged to the client involved until withdrawal can be obtained or the matter is otherwise terminated.

9.         While awaiting specific instructions from clients, it is our general policy to take the minimum steps necessary to avoid forfeiture or abandonment of the matters involved.  In such cases, unless we are instructed to the contrary, or unless we inform the client that payment in advance is required, certain services and advancement of fees are usually required.  This may thus include Motions for Extension and payment of various fees and other costs for which the client will be charged.  However, this general policy should not be considered or relied upon as a commitment to the client.

10.       Proposals or Estimates, which require more than nominal research or inquiry, are charged to the client or prospective client requesting same.

11.       Included in services based on hourly rates are all services devoted to the matter involved and all out-of-office time, such as required for transportation, waiting in Court or for Board proceedings and the like, but they normally exclude time involved briefing associates or for services of more than one attorney when conferring with other attorneys of our law firm in the office, unless such conference is specifically authorized.  However, charges will be made for all services and costs, which may arise in coordination with, or otherwise working with, other law firms or other lawyers outside our law firm.  If overnight travel and lodging are involved in a matter, the costs thereof will be charged to the client, but the maximum charge for services will be for ten (10) hours per day, unless, in fact, the actual time devoted to services, per se, is greater.  In exceptional situations pro bono, reduced or contingent fees will be considered.

12.       We do not pay referral fees.  Statements of Account and Charge Memoranda are normally made to correspondents authorizing or requesting services and expenses, and payments thereof are expected from same irrespective of who the actual client may be.  In particular, if the correspondent is an attorney, law firm, or assignee, unless other arrangements are made with us, that attorney, law firm, or assignee is responsible for payment.  In this connection, it should be understood that our attorney-client relationship exists with the client, as such, and our representation of the client may possibly become adversarial to the correspondent responsible for paying the client's services and expenses.  It should also be appreciated that as attorneys specializing in Intellectual Property law, we frequently represent a variety of legal entities, nationally and internationally, and often are not in a position to investigate the credit ratings of these entities.  We therefore consider that the individuals, as such, who request services and/or authorize expenditures stand behind them, and thus underwrite all fees and costs which proximately result from such requests and authorizations.  If this is not the case, we should be so informed in writing before or when such requests and/or authorizations are made.

13.       Acceptance of a new client deprives us of accepting other clients in the same technological or engineering field, concurrently and for an indeterminate future period of time.  Payments from or on behalf of clients in advance for services, however designated, are therefore considered fees that are "earned-on-receipt."  Nevertheless, if a client decides, after making an advance payment not to proceed, it is our general policy to refund portions of advanced payments not covered by time and expenses expended (including those required to close out the matter).  In contrast, payments advanced from or on behalf of clients for U.S. Patent and Trademark Office fees, U.S. Copyright fees, and Court fees and costs, as well as for foreign patent services and costs are considered as held in trust for payment of the requisite fees, costs and/or services, and (subject to having been already applied as intended or being payable as incurred obligations) remain the personal property of whomever advanced same.  We do not consider them in any sense to be revenue, gross receipts, or income of any type, much less "earned-on-receipt" fees and, if not expended or obligated, will be promptly returned to client upon request.

14.       All services will be performed in Virginia at our office or the U.S. Patent and Trademark Office in Virginia, U.S.A., unless otherwise advised or obvious.

15.       This Fee Schedule may be revised without notice to reflect generally, in a reasonable manner, monetary inflation and changed circumstances.  Annual revisions should be expected.  For continuing representation the revisions will govern during their effective dates.  This Fee Schedule and such reasonable revisions thereof will be considered to constitute a written and binding contract.

16.       This Fee Schedule applies to all matters on hand on October 1, 2000, and for matters wherein any fees or charges remain unpaid as of the same date, for all clients, correspondents and successors.

17.       It is important for clients to keep us informed of their current addresses.  Otherwise we may be unable to notify clients, for example, of maintenance fees, which may become due on issued patents, to file Section 8 & 15 Declarations of Continued Use, and to renew trademarks.

18.       In general, we consider all files generated in matters we handle for clients are our personal property, which, for a variety of reasons, we necessarily must retain in our possession.  Copies will, however, be furnished to clients and others they authorize, for charges (usually relatively nominal) to reflect the costs to us for doing so.

19.       In the event of disputes with clients and/or with those who pay and/or underwrite fees and costs (correspondents) relating to fees, or any other claims or controversies which arise out of our representation of clients and which are not otherwise amicably resolved, it is hereby agreed by us and such clients and correspondents to submit such disputes, claims and/or controversies to arbitration under the Arlington County Bar Association Arbitration Rules to a panel of Arbitrators selected from the Arlington County Bar Association Fee Arbitration Committee; to faithfully observe this agreement for arbitration and the Rules applicable to the arbitration; to abide by any award rendered by the Arbitrators; and to consent that a judgment of Court having jurisdiction may be entered upon the award

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