Company: AEMD
Filing Date: 2025-04-18
Form Type: DEF 14A
Source: 0001683168-25-002685
Chunk: 33

Company: AETHLON MEDICAL INC
Filing Date: 2025-04-18
Form: DEF 14A
Chunk 33
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 adjustment for stock splits, reclassifications, subdivisions and similar adjustments.

We agreed to file
a resale registration statement registering the shares underlying the Inducement Warrants (“Resale Registration Statement”)
within ninety (90) days of the date of the Agreement and to use commercially reasonable best efforts to cause the Resale Registration
Statement to be effective on or prior to the 150th calendar day after the date of the Agreement. Subject to the terms of the Agreement,
we will be required to pay certain liquidated damages if the shares underlying the Inducement Warrants are not filed within the ninety
(90) period, as more fully described in the Agreement.

We further agreed
that until sixty (60) days after the closing date of the warrant exercise, it will not (other than in connection with limited enumerated
exceptions) issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of common stock or common
stock equivalents or file any registration statement or any amendment or supplement (other than the registration statement registering
the shares underlying the Inducement Warrants).

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Inducement Warrants Reset of Exercise Price

Section 3(i) of the Inducement Warrants
includes, a Reset of Exercise Price provision that required a potential reset the exercise price of the Inducement Warrants at a price
equal to 100% of the trailing five day VWAP immediately preceding March 31, 2025, , that in no event shall the Reset
Price be less than 20% of the most recent closing price at the time of execution of the warrant inducement (subject to adjustment for
reverse and forward stock splits, recapitalizations and similar transactions following the date of the warrant inducement); provided,
however, this provision in Section 3(i) shall be subject to approval at either (i) the special meeting of the stockholders to be held
at the earliest practicable date after the date hereof, or (ii) the Company’s next two (2) annual meetings of stockholders. The
five day VWAP immediately preceding March 31, 2025 was above the exercise price of $0.3736 per share and therefore noreset
of the exercise price is necessary.

We are seeking stockholder approval for
Proposal No. 2 because, pursuant to the Inducement Warrants and specifically the Reset of Exercise Price language in Section 3(i), we
agreed to pursue shareholder approval in this Special Meeting