Exhibit 10.63


 





AETHLON MEDICAL, INC.


NOTICE OF GRANT OF STOCK OPTION


 


 


Notice is hereby given
of the following grant of an option to purchase shares of the Common Stock of Aethlon Medical, Inc., a Nevada corporation (the
"Company"):


 


	Optionee:	Richard H. Tullis
	 	 
	Grant Date:	July 1, 2013
	 	 
	Exercise Price:	$0.10 per share
	 	 
	Number of Option Shares:	500,000
	 	 
	Expiration Date:	July 1, 2023
	 	 
	Type of Option:	Nonqualified Stock Option
	 	 
	Vesting Schedule:	125,000 Option Shares shall vest on each of
	 	 
	July 1, 2014, July 1, 2015, July 1, 2016 and July 1, 2017	 


 


Optionee agrees to be bound
by the terms of the Stock Option Agreement attached hereto as Exhibit A.


 


No Employment or Service
Contract. Nothing in this Notice or in the attached Stock Option Agreement shall confer upon Optionee any right to continue
in service in any capacity, including as an employee, for any period of specific duration or interfere with or otherwise restrict
in any way the rights of the Company (or any Parent or Subsidiary employing or retaining Optionee) or of Optionee, which rights
are hereby expressly reserved by each, to terminate Optionee's service and/or employment at any time for any reason, with or without
cause.




 


 






    	 	 	 



     

    

 





Definitions. All
capitalized terms in this Notice shall have the meaning assigned to them in this Notice or in the attached Stock Option Agreement.


 


 





	Dated as of: July 1, 2013	Aethlon Medical, Inc.
	 	 
	 	By: /s/ James A. Joyce
	 	Name: James A. Joyce
	 	Chairman and Chief Executive Officer
	 	 
	 	 
	 	OPTIONEE
	 	 
	 	 
	 	/s/ Richard H. Tullis
	 	Name: Richard H. Tullis
	 	Address: 3886 Spanish Oak Court
	 	                 Oceanside, CA 92058



 


 


 





ATTACHMENTS 


Exhibit A - Stock Option Agreement




 


 


 






    	 		 



     

    

 


 





EXHIBIT A


 


AETHLON MEDICAL, INC.

STOCK OPTION AGREEMENT


 


RECITALS


 


The Board of Directors
of Aethlon Medical, Inc. (the "Company"), by unanimous written consent dated July 1, 2013, has deemed it fair
and in the best interest of the Company and its stockholders that the Company issue to Richard H. Tullis (the "Optionee")
an option to acquire an aggregate of 500,000 shares of restricted Common Stock of the Company.


 


All capitalized terms
in this Agreement not defined herein shall have the meaning assigned to them in the attached Appendix.


 


AGREEMENT 


 


NOW, THEREFORE, it is hereby agreed as follows:


 


1.Grant
of Option. The Company hereby grants to the Optionee, as of the Grant Date, an option to purchase up to the number of
Option Shares specified in the Grant Notice. The Option Shares shall be purchasable from time to time during the option term specified
in Paragraph 2 at the Exercise Price. Except as otherwise provided herein, this option shall be subject to the terms and conditions
of the Plan.


 


2.Option
Term. This option shall expire at the close of business on the Expiration Date, unless sooner terminated in accordance
with Paragraph 5.


 


3.Limited
Transferability. During the Optionee's lifetime, this option shall be exercisable only by the Optionee and shall not be
assignable or transferable other than by will or by the laws of descent and distribution following the Optionee's death.


 


4.Dates
of Exercise. This option shall become exercisable for the Option Shares as specified in the Vesting Schedule.


 


5.Cessation
of Service. The option term specified in Paragraph 2 shall terminate (and this option shall cease to be outstanding) prior
to the Expiration Date should any of the following events occur:


 


(a)If the Optionee's
service is terminated for any reason other than death or disability, then the Optionee may exercise this option, only to the extent
that the option would have been exercisable upon the date of such termination (the "Termination Date"), no later than
twelve (12) months after the Termination Date.


 


(b)If the Optionee's
service is terminated because of the Optionee's death or disability (or the Optionee dies within twelve (12) months after a termination
other than for cause or because of the Optionee's disability), then this option may be exercised only to the extent that it would
have been exercisable by the Optionee on the Termination Date and must be exercised by the Optionee (or the Optionee's legal representative)
no later than twelve (12) months after the Termination Date.


 


 






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(c) Notwithstanding
the provisions above, if the Optionee's service is terminated for cause, neither the Optionee, the Optionee's estate nor such other
person who may then hold this option shall be entitled to exercise it with respect to any Option Shares whatsoever.


 


6.Adjustment
in Option Shares. Should any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization,
combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Company's
receipt of consideration, appropriate adjustments shall be made to (i) the total number and/or class of securities subject to this
option and (ii) the Exercise Price in order to reflect such change and thereby preclude a dilution or enlargement of benefits hereunder.


 


7.Stockholder
Rights. The holder of this option shall not have any rights as a stockholder of the Company with respect to the Option
Shares until such person shall have exercised the option, paid the Exercise Price and become a holder of record of the purchased
shares.


 


8.Registration
Rights. If the Company at any time proposes to register any of its securities under the Securities Act of 1933, as amended
(the "Act"), for sale to the public, whether for its own account or for the account of other security holders or both,
provided the Registrable Securities (as defined below) are not otherwise subject to an effective registration statement, the Company
will cause such Registrable Securities to be included with the securities to be covered by the registration statement proposed
to be filed by the Company. In the event that any registration pursuant to this Paragraph 8 shall be, in whole or in part, an underwritten
public offering of Common Stock of the Company, the number of shares of Registrable Securities to be included in such an underwriting
may be reduced by the managing underwriter if and to the extent that the Company and the underwriter shall reasonably be of the
opinion that such inclusion would adversely affect the marketing of the securities to be sold by the Company therein; provided,
however, that the Company shall notify the Optionee in writing of any such reduction. "Registrable Securities" means
the number of shares of the Company's Common Stock set forth on the first page of the Notice of Grant of Stock Option.


 


9.Manner
of Exercising Option.


 


(a)In order to
exercise this option with respect to all or any part of the Option Shares for which this option is at the time exercisable, the
Optionee (or any other person or persons exercising the option) shall take the following actions:


 


(i)Execute and deliver to the Company
a written notice setting forth the number of Option Shares for which the option is exercised;


 


 



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(ii)Pay the aggregate Exercise Price
for the purchased shares in cash or in one or more of the following forms:


 


(A)by cancellation
of indebtedness of the Company to the Optionee;


 


(B)if approved
by the Board, by surrender of shares that either: (1) have been owned by the Optionee for more than one year and have been paid
for within the meaning of Rule 144 promulgated under the Securities Act (and, if such shares were purchased from the Company by
use of a promissory note, such note has been fully paid with respect to such shares); or (2) were obtained by the Optionee in the
public market;


 


(C)if approved
by the Board, by waiver of compensation due or accrued to the Optionee for services rendered;


 


(D)with respect
only to purchases upon exercise of an option, and provided that a public market for the Company's stock exists:


 


(1)through a "same
day sale" commitment from the Optionee and a broker-dealer that is a member of the National Association of Securities Dealers
(an "NASD Dealer") whereby the Optionee irrevocably elects to exercise the option and to sell a portion of the shares
so purchased to pay for the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such shares to forward
the Exercise Price directly to the Company; or


 


(2)through a "margin"
commitment from the Optionee and an NASD Dealer whereby the Optionee irrevocably elects to exercise the option and to pledge the
shares so purchased to the NASD Dealer in a margin account as security for a loan from the NASD Dealer in the amount of the Exercise
Price, and whereby the NASD Dealer irrevocably commits upon receipt of such shares to forward the Exercise Price directly to the
Company; or


 


(E)by any combination
of the foregoing. Except to the extent the sale and remittance procedure is utilized in connection with the option exercise, payment
of the Exercise Price must accompany the written notice delivered to the Company in connection with the option exercise;


 


(iii)Furnish to the Company appropriate
documentation that the person or persons exercising the option (if other than Optionee) have the right to exercise this option;


 


 



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(iv)Execute and deliver to the Company
such written representations as may be requested by the Company in order for it to comply with the applicable requirements of federal
and state securities laws; and


 


(v)Make appropriate arrangements with
the Company for the satisfaction of all federal, state and local income and employment tax withholding requirements applicable
to the option exercise.


 


(b)As soon as
practical after the Exercise Date, the Company shall issue to or on behalf of the Optionee (or any other person or persons exercising
this option) a certificate for the purchased Option Shares, with the appropriate legends affixed thereto.


 


(c)In no event
may this option be exercised for any fractional shares.


 


10.Compliance
with Laws and Regulations.


 


(a)The exercise
of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance by the Company and the Optionee
with all applicable requirements of law relating thereto and with all applicable regulations of any stock exchange (or the Nasdaq
Stock Market or the OTC Bulletin Board, if applicable) on which the Common Stock may be listed for trading (or quoted) at the time
of such exercise and issuance.


 


(b)The inability
of the Company to obtain approval from any regulatory body having authority deemed by the Company to be necessary to the lawful
issuance and sale of any Common Stock pursuant to this option shall relieve the Company of any liability with respect to the non-issuance
or sale of the Common Stock as to which such approval shall not have been obtained. The Company, however, shall use its best efforts
to obtain all such approvals.


 


11.Successors and Assigns. Except to the
extent otherwise provided in Paragraph 3, the provisions of this Agreement shall inure to the benefit of, and be binding upon,
the Company and its successors and assigns and the Optionee, the Optionee's assigns and the legal representatives, heirs and legatees
of the Optionee's estate.


 


12.Notices. Any notice required to be given or
delivered to the Company under the terms of this Agreement shall be in writing and addressed to the Company at its principal corporate
offices. Any notice required to be given or delivered to the Optionee shall be in writing and addressed to the Optionee at the
address indicated below the Optionee's signature line on the Grant Notice. All notices shall be deemed effective upon personal
delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified.


 


13.Governing Law. The interpretation,
performance and enforcement of this Agreement shall be governed by the laws of the State of California without resort to any conflict-of-laws
rules that would result in the application of the laws of any other jurisdiction.


 


 


 






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IN WITNESS WHEREOF.
the undersigned have duly executed this Agreement as of July 1, 2013.


 










	 	Aethlon Medical, Inc., a Nevada corporation
	 	 
	 	By: /s/ James A. Joyce
	 	        James A. Joyce
	 	       Chairman and Chief Executive Officer
	 	 
	 	 
	 	Optionee
	 	 
	 	 
	 	/s/ Richard H. Tullis
	 	Name: Richard H. Tullis



 


 


 


 


 


 


 


 






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APPENDIX A


 


The following definitions shall be in effect under the Agreement:


 


		1.	Agreement shall mean this Stock Option Agreement.



 


		2.	Code shall mean the Internal Revenue Code of 1986, as amended.



 


		3.	Common Stock shall mean the Company's common stock.



 


		4.	Exercise Date shall mean the date on which the option shall have been exercised in
accordance with Paragraph 9 of the Agreement.



 


		5.	Exercise Price shall mean the exercise price payable per Option Share as specified
in the Grant Notice.



 


		6.	Expiration Date shall mean the date on which the option expires as specified in the
Grant Notice.



 


		7.	Grant Date shall mean the date of grant of the option as specified in the Grant Notice.



 


		8.	Grant Notice shall mean the Notice of Grant of Stock Option accompanying the Agreement,
pursuant to which Optionee has been informed of the basic terms of the option evidenced hereby.



 


		9.	Nonqualified Stock Option shall mean an option not intended to satisfy the requirements
of Section 422 of the Code.



 


		10.	Option Shares shall mean the number of shares of Common Stock subject to the option.



 


		11.	Vesting Schedule shall mean the vesting schedule specified in the Grant Notice pursuant
to which the Option Shares shall become exercisable.



 




 


 


 


 


 






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