Document:

Exhibit 4.1

 

NEITHER THIS SECURITY NOR THE SECURITIES
FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

COMMON STOCK PURCHASE WARRANT

 

AETHLON
MEDICAL, Inc.

 

	Warrant Shares: [_______]	Initial Exercise Date: __________, 2013

 

THIS COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies that, for value received, _____________ (the “Holder”)
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on
or after the date hereof (the “Initial Exercise Date”) and on or prior to the close of business on the five
year anniversary of the Initial Exercise Date (the “Termination Date”) but not thereafter, to subscribe for
and purchase from Aethlon Medical, Inc., a Nevada corporation (the “Company”), up to ______ shares (the “Warrant
Shares”) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise
Price, as defined in Section 2(b).

 

Section 1.   Definitions.
Definitions. For the purposes hereof, in addition to the terms defined elsewhere in this Warrant, (a) capitalized terms
not otherwise defined herein shall have the meanings set forth in the Purchase Agreement and (b) the following terms shall have
the following meanings:

 

“Business
Day” means any day except any Saturday, any Sunday, any day which shall be a federal legal holiday in the United States
or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other
instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to
receive Common Stock.

 

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“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers, consultants, advisors or
directors of the Company pursuant to any stock or option plan duly adopted for such purpose by a majority of the existing members
of the Board of Directors or a majority of the members of a committee of directors established for such purpose, (b) securities
upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other securities exercisable or exchangeable
for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement, provided that such securities
have not been amended since the date of this Agreement to increase the number of such securities or to decrease the exercise, exchange
or conversion price of such securities, (c) securities issued pursuant to acquisitions or strategic transactions approved by a
majority of the disinterested directors of the Company, provided that any such issuance shall only be to a Person which is, itself
or through its subsidiaries, an operating company in a business synergistic with the business of the Company and in which the Company
receives benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities
primarily for the purpose of raising capital or to an entity whose primary business is investing in securities, and (d) issuances
of restricted securities issued by the Company from time to time for the payment of services or to vendors, which shares are not
issued for cash consideration in an amount not to exceed 3,000,000 shares per fiscal year of the Company.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Purchase
Agreement” means, collectively, the Unit Purchase Agreement, dated as of ___________, 2013 and Subscription Agreement,
dated as of __________, 2013, among the Company and the original Holders, as amended, modified or supplemented from time to time
in accordance with its terms.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Subsidiary”
shall have the meaning set forth in the Purchase Agreement.

 

“Trading
Day” means a day on which the New York Stock Exchange is open for business.

 

“Trading
Market” means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date
in question: the NYSE AMEX LLC, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York
Stock Exchange or the OTC Bulletin Board.

 

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“Transaction
Documents” shall have the meaning set forth in the Purchase Agreement.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a national securities exchange, the daily volume weighted average price of the Common Stock for such date (or the
nearest preceding date) on the trading market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P.
(based on a Trading Day from 9:30 a.m. New York City time to 4:02 p.m. New York City time); (b)  if the Common Stock is quoted
on the OTC Bulletin Board, the volume weighted average price of the Common Stock for such date (or the nearest preceding date)
on the OTC Bulletin Board; (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices
for the Common Stock are then reported in the “Pink Sheets” published by Pink Sheets, LLC (or a similar organization
or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported;
or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected
in good faith by the Subscribers of a majority in interest of the Securities then outstanding and reasonably acceptable to the
Company, the fees and expenses of which shall be paid by the Company; provided that in each case where Bloomberg L.P. data is being
relied upon, Holder shall provide to the Company a copy of such information for the Company's records.

 

Section 2.Exercise.

 

a)                 
Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part,
at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or
such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of
the Holder appearing on the books of the Company) of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto;
and, within 3 Trading Days of the date said Notice of Exercise is delivered to the Company, the Company shall have received payment
of the aggregate Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a United States
bank. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to
the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in
full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within 3 Trading Days of the date
the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion
of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares
purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall
maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Holder and any assignee,
by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase
of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may
be less than the amount stated on the face hereof.

 

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b)                 
Exercise Price. The exercise price per share of the Common Stock under this Warrant shall be equal to $0.22,
subject to adjustment hereunder (the “Exercise Price”).

 

c)                 
Cashless Exercise. This Warrant may also be exercised at any time after the Initial Exercise Date at such time by
means of a “cashless exercise” in which the Holder shall be entitled to receive a certificate for the number of Warrant
Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A) = the
VWAP on the Trading Day immediately preceding the date of such election;

 

(B) = the
Exercise Price of this Warrant, as adjusted; and

 

(X) =
the number of Warrant Shares issuable upon exercise of this Warrant in accordance with the terms of this Warrant by means of a
cash exercise rather than a cashless exercise.

 

Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant
to this Section 2(c).

 

d)                
Exercise Limitations. Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section
2 or otherwise, to the extent that after giving effect to such issuance after exercise, the Holder (together with the Holder’s
affiliates, and any other person or entity acting as a group together with the Holder or any of the Holder’s affiliates),
would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of this Section, beneficial
ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
Holder is solely responsible for any schedules required to be filed in accordance therewith. The Company shall have no obligation
to verify or confirm the accuracy of such filings.  In any case, the number of outstanding shares of Common Stock shall be
determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder
or its affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial
Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon not less than 61 days’
prior notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2.3, provided
that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions
of this Section 2.3 shall continue to apply. Any such increase or decrease will not be effective until the 61st day
after such notice is delivered to the Company. The limitations contained in this paragraph shall apply to a successor holder of
this Warrant.

 

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e)            Mechanics of Exercise.

 

                                                                i.           
Delivery of Certificates Upon Exercise. Certificates for shares purchased hereunder shall be transmitted by the Company’s
transfer agent (the “Transfer Agent”) to the Holder by crediting the account of the Holder’s prime broker
with the Depository Trust Company through its Deposit Withdrawal Agent Commission (“DWAC”) system if the Company
is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the
Warrant Shares to or resale of the Warrant Shares by the Holder or (B) the shares are eligible for resale without volume or manner-of-sale
limitations pursuant to Rule 144, and otherwise by physical delivery of certificates to the address specified by the Holder in
the Notice of Exercise within 4 Trading Days from the delivery to the Company of the Notice of Exercise Form, surrender of this
Warrant (if required) and payment of the aggregate Exercise Price as set forth above, together with any letters, documents or materials
completed and signed by Holder as required by the Company's Transfer Agent or counsel necessary to cause the issuance of the certificates
to the Holder (the “Warrant Share Delivery Date”). This Warrant shall be deemed to have been exercised on the
date the Exercise Price is received by the Company. The Warrant Shares shall be deemed to have been issued, and Holder or any other
person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as
of the date the Warrant has been exercised by payment to the Company of the Exercise Price (or by cashless exercise, if permitted)
and all taxes required to be paid by the Holder, if any, pursuant to Section 2(e)(vi) prior to the issuance of such shares, have
been paid. If the Company fails for any reason to deliver to the Holder certificates evidencing the Warrant Shares subject to a
Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and
not as a penalty, for each $1,000 of Warrant Shares subject to such exercise, $10 per Trading Day (increasing to $20 per Trading
Day on the seventh Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery
Date until such certificates are delivered.

 

                                                                
ii.           
Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at
the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant
Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

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                                                                  iii.            Rescission
Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates
representing the Warrant Shares pursuant to Section 2(e)(i) by the Warrant Share Delivery Date, then, the Holder will have
the right to rescind such exercise.

 

                                                                  iv.            Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Exercise. In addition to any other rights
available to the Holder, if the Company fails for any reason to deliver to the Holder such certificate or certificates by the Warrant
Share Delivery Date, and if after such Share Delivery Date the Holder is required by its brokerage firm to purchase (in an open
market transaction or otherwise), or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in
satisfaction of a sale by the Holder of the Warrant Shares which the Holder was entitled to receive upon the conversion relating
to such Share Delivery Date (a “Buy-In”), then the Company shall (A) pay in cash to the Holder (in addition
to any other remedies available to or elected by the Holder) the amount by which (x) the Holder’s total purchase price (including
any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the aggregate number of shares of Common
Stock that the Holder was entitled to receive from the conversion at issue multiplied by (2) the actual sale price at which the
sell order giving rise to such purchase obligation was executed (including any brokerage commissions) and (B) at the option of
the Holder, either reissue (if surrendered) this Warrant in a principal amount equal to the principal amount of the attempted conversion
or deliver to the Holder the number of shares of Common Stock that would have been issued if the Company had timely complied with
its delivery requirements under this Warrant. For example, if the Holder purchases Common Stock having a total purchase price of
$11,000 to cover a Buy-In with respect to an attempted exercise of this Warrant with respect to which the actual sale price of
the Warrant Shares (including any brokerage commissions) giving rise to such purchase obligation was a total of $10,000 under clause
(A) of the immediately preceding sentence, the Company shall be required to pay the Holder $1,000. The Holder shall provide the
Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company,
evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to
it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with
respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon conversion of this
Warrant as required pursuant to the terms hereof.

 

                                                                  v.           
No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon
the exercise of this Warrant. As to any fraction of a share which Holder would otherwise be entitled to purchase upon such exercise,
the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole share.

 

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                                                                  vi.           
Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for
any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses
shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may
be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued
in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment
Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient
to reimburse it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing
of any Notice of Exercise.

 

                                                                  vii.          
Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely
exercise of this Warrant, pursuant to the terms hereof.

 

Section 3.        Certain
Adjustments.

 

a)      Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend
or otherwise make a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company
upon exercise of this Warrant or any other convertible securities of the Company), (ii) subdivides all outstanding shares of Common
Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) all outstanding shares of Common
Stock into a smaller number of shares or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock
of the Company to all holders of Common Stock, then in each case the Exercise Price shall be multiplied by a fraction of which
the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before
such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event
and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise
Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately
after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become
effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

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b)     
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company effects any merger or
consolidation of the Company with or into another Person, (ii) the Company effects any sale of all or substantially all of its
assets in one or a series of related transactions, (iii) any tender offer or exchange offer (whether by the Company or another
Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities,
cash or property or (iv) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (each “Fundamental
Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each
Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction,
the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation,
and any additional consideration (the “Alternate Consideration”) receivable as a result of such merger, consolidation
or disposition of assets by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately
prior to such event. For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted
to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder
shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental
Transaction. To the extent necessary to effectuate the foregoing provisions, any successor to the Company or surviving entity in
such Fundamental Transaction shall issue to the Holder a new warrant consistent with the foregoing provisions and evidencing the
Holder’s right to exercise such warrant into Alternate Consideration. The terms of any agreement pursuant to which a Fundamental
Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this
Section 3(c) and insuring that this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction
analogous to a Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction that
is (1) an all cash transaction, (2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act, or
(3) a Fundamental Transaction involving a person or entity not traded on a national securities exchange, the Nasdaq Global Select
Market, the Nasdaq Global Market, or the Nasdaq Capital Market, the Company or any successor entity shall pay at the Holder’s
option, exercisable at any time concurrently with or within 30 days after the consummation of the Fundamental Transaction, an amount
of cash equal to the value of this Warrant as determined in accordance with the Black Scholes Option Pricing Model obtained from
the “OV” function on Bloomberg L.P. using (A) a price per share of Common Stock equal to the VWAP of the Common Stock
for the Trading Day immediately preceding the date of consummation of the applicable Fundamental Transaction, (B) a risk-free interest
rate corresponding to the U.S. Treasury rate for a 30 day period immediately prior to the consummation of the applicable Fundamental
Transaction, (C) an expected volatility equal to the 100 day volatility obtained from the “HVT” function on Bloomberg
L.P. determined as of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction and
(D) a remaining option time equal to the time between the date of the public announcement of such transaction and the Termination
Date; provided that in each case where Bloomberg L.P. data is being relied upon, Holder shall provide to the Company a copy of
such information for the Company's records.

 

 

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c)     
Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a
share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding
as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

d)    
Notice to Holder.

 

                                                                  i.     
Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the
Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and setting forth a
brief statement of the facts requiring such adjustment.

 

                                                                  ii.      Notice to Allow Exercise
by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B)
the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize
the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of
any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification
of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially
all of the assets of the Company, of any compulsory share exchange whereby the Common Stock is converted into other securities,
cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the
affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last address as it shall
appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter
specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption,
rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled
to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification,
consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities,
cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided
that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice. The Holder is entitled to exercise this Warrant during the period commencing on
the date of such notice to the effective date of the event triggering such notice.

 

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Section 4.        Transfer
of Warrant.

 

a)     
Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section
4(d) herein and to the provisions of the Purchase Agreement, this Warrant and all rights hereunder (including, without limitation,
any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company
or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed
by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer.
Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name
of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment,
and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly
be cancelled. The Warrant, if properly assigned, may be exercised by a new holder for the purchase of Warrant Shares without having
a new Warrant issued.

 

b)     
New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid
office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved
in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated
the Initial Exercise Date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant
thereto.

 

c)     
Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that
purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may
deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any
distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

d)    
Transfer Restrictions. If, at the time of the surrender of this Warrant in connection
with any transfer of this Warrant, the transfer of this Warrant shall not be either (i) registered pursuant to an effective registration
statement under the Securities Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume
or manner-of-sale restrictions pursuant to Rule 144, the Company may require, as a condition of allowing such transfer, that the
Holder or transferee of this Warrant, as the case may be, comply with the provisions of the Purchase Agreement.

 

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Section 5.       Miscellaneous.

 

a)    
No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights or other rights
as a stockholder of the Company prior to the exercise hereof.

 

b)     Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case
of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

c)     Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of
any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised
on the next succeeding Business Day.

 

d)     Authorized
Shares.

 

The Company
covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock one
hundred (100%) of the number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights
under this Warrant. In case such amount of Common Stock is insufficient at any time, the Company shall call and hold a special
meeting to increase the number of authorized common stock. Management of the Company shall recommend to shareholders to vote in
favor of increasing the number of authorized common stock.

 

The Company
further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty
of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the
purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant
Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading
Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise
of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant, be duly
authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect
of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

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Except and
to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending
its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions
as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting
the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate
in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant
and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory
body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

Before taking
any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary
from any public regulatory body or bodies having jurisdiction thereof.

 

e)     
Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant
shall be determined in accordance with the provisions of the Purchase Agreement.

 

f)      
Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not
registered, will have restrictions upon resale imposed by state and federal securities laws.

 

g)     
Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part
of Holder shall operate as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies, notwithstanding
the fact that all rights hereunder terminate on the Termination Date. If the Company willfully and knowingly fails to comply with
any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to Holder such amounts
as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including
those of appellate proceedings, incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any
of its rights, powers or remedies hereunder.

 

 

    	12

    	 

    

 

h)     Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the
Company shall be delivered in accordance with the notice provisions of the Purchase Agreement.

 

i)      Limitation
of Liability. No provision hereof, in the absence of any affirmative action by Holder to exercise this Warrant to purchase
Warrant Shares, and no enumeration herein of the rights or privileges of Holder, shall give rise to any liability of Holder for
the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

 

j)       Remedies.
The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled
to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be adequate.

 

k)     Successors
and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure
to the benefit of and be binding upon the successors of the Company and the successors and permitted assigns of Holder. The provisions
of this Warrant are intended to be for the benefit of all Holders from time to time of this Warrant and shall be enforceable by
the Holder or holder of Warrant Shares.

 

l)      Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the
Company and Holders holding Warrants at least equal to a majority of the Warrant Shares issuable upon exercise of all then outstanding
Warrants.

 

m)   
Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions
or the remaining provisions of this Warrant.

 

n)     Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose,
be deemed a part of this Warrant.

 

********************

 

    	13

    	 

    

 

IN WITNESS WHEREOF, the
Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

	 	AETHLON MEDICAL,
    Inc.	 
	 	 	 	 
	 	By: 	 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

 

 

 

 

 

 

    	14

    	 

    

 

NOTICE OF EXERCISE

 

To:AETHLON
Medical, Inc.

 

(1)  
The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant
(only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer
taxes, if any.

 

(2)  
Payment shall take the form of (check applicable box):

 

[ ] in lawful
money of the United States; or

 

[ ] [if permitted]
the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c),
to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure
set forth in subsection 2(c).

 

(3)  
Please issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other
name as is specified below:

 

_______________________________

 

The Warrant Shares shall be delivered to
the following DWAC Account Number or by physical delivery of a certificate to:

 

_______________________________

 

_______________________________

 

_______________________________

 

(4) Accredited Investor.
The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933,
as amended.

 

[SIGNATURE
OF HOLDER]

 

 

	Name of Investing Entity: 	 

 

	Signature of Authorized Signatory of Investing Entity: 	 

 

	Name of Authorized Signatory: 	 

 

	Title of Authorized Signatory: 	 

 

	Date: 	 

 

 

    	 

    	 

    

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

 

 

FOR VALUE RECEIVED, [____]
all of or [_______] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

 

_______________________________________________
whose address is

 

_______________________________________________________________.

 

 

 

_______________________________________________________________

 

Dated: ______________, _______

 

 

	 	Holder’s Signature:	 	 
	 	 	 	 
	 	Holder’s Address:	 	 
	 	 	 	 
	 	 	 	 

 

 

 

Signature Guaranteed: ___________________________________________

 

 

NOTE: The signature to this Assignment
Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever,
and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing Warrant.Exhibit 10.1

 

UNIT PURCHASE AGREEMENT

 

UNIT PURCHASE AGREEMENT
(this “Agreement”) made as of the date set forth on the signature page hereof between Aethlon Medical, Inc., a Nevada
corporation (the “Company”), and the subscriber(s) identified on Exhibit A annexed hereto (the “Subscriber”).

 

W I T N E S S E T H:

 

WHEREAS, the Company
is conducting a private offering (the “Offering”) consisting of up to a maximum of 160 units (the “Units”),
each Unit consisting of (a) one hundred thousand (100,000) shares of the Company’s common stock par value $0.001 per share
(the “Common Stock”) at a purchase price of $0.125 per share and (b) a five-year warrant (collectively, the “Warrants”
and together with the Units and Common Stock, the “Securities”) to purchase fifty thousand (50,000) shares of Common
Stock of the Company at an exercise price equal to $0.22 per share, subject to equitable adjustment thereunder (the “Exercise
Price”) at a negotiated price of $12,500 per Unit (the “Unit Purchase Price”);

 

WHEREAS, the Company
has retained __________________ to act as its placement agent in connection with the sale of the Units pursuant to this Agreement
(the “Placement Agent”);

 

WHEREAS, the Offering
is on a “best efforts, all-or-none” basis to attain the minimum offering amount of $200,000 purchase price for the
Units (the “Minimum Offering”), and on a “reasonable efforts” basis as to the remaining Units to be sold
up to the maximum offering amount of $2,000,000 purchase price for the Units (the “Maximum Offering”), to a limited
number of “accredited investors” (as that term is defined by Rule 501(a) of Regulation D (“Regulation D”)
promulgated by the Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the
“Securities Act”);

 

WHEREAS, the Company
and each Subscriber is executing and delivering this agreement in reliance upon the exemption from securities registration afforded
by Section 4(2) of the Securities Act and Rule 506 of Regulation D promulgated by the SEC under the Securities Act;

 

WHEREAS the subscription
for the Securities will be made in accordance with and subject to the terms and conditions of this Subscription Agreement and the
Company’s Confidential Private Placement Memorandum dated October 10, 2013, together with all amendments thereof and supplements
and exhibits thereto and as such may be amended from time to time (the “Memorandum”); and

 

WHEREAS, the Subscriber
desires to purchase such number of Units as set forth on the signature page hereof on the terms and conditions hereinafter set
forth.

 

    	1

    	 

    

 

NOW, THEREFORE, in consideration
of the premises and the mutual representations and covenants hereinafter set forth, the parties hereto do hereby agree as follows:

 

		I.	SUBSCRIPTION FOR SECURITIES

 

1.1   
Subject to the terms and conditions hereinafter set forth and as set forth in the Memorandum, the Subscriber hereby subscribes
for and agrees to purchase from the Company, and the Company subject to its rights to accept or reject this subscription, agrees
to sell to the Subscriber, such number of Units for the aggregate purchase price as is set forth on the signature page hereof.
The purchase price is payable by wire transfer, to be held in escrow until the conditions to closing are achieved, to Signature
Bank, the escrow agent (the “Escrow Agent”) as follows:

 

Bank:

ABA Number:

Account #:

Account Name:

Swift Code:

 

1.2   
The Subscriber understands acknowledges and agrees that, except as otherwise set forth herein or otherwise required by law,
that once irrevocable, the Subscriber is not entitled to cancel, terminate or revoke this Agreement or any agreements of the Subscriber
hereunder and that this Agreement and such other agreements shall survive the death or disability of the Subscriber and shall be
binding upon and inure to the benefit of the parties and their heirs, executors, administrators, successors, legal representatives
and permitted assigns. If the Subscriber is more than one person, the obligations of the Subscriber hereunder shall be joint and
several and the agreements, representations, warranties and acknowledgments herein contained shall be deemed to be made by and
be binding upon each such person and his/her heirs, executors, administrators, successors, legal representatives and permitted
assigns.

 

II.REPRESENTATIONS BY SUBSCRIBER

 

Each Subscriber hereby
severally, and not jointly, represents and warrants to the Company that each such Subscriber’s representations in the Subscription
Agreement, in the form attached as Exhibit A to the Memorandum, entered into in connection with this Agreement are true and correct
as of the date hereof.

 

		III.	REPRESENTATIONS BY AND COVENANTS OF THE COMPANY

 

The Company hereby represents
and warrants to the Subscriber that:

 

3.1   
Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and
in good standing under the laws of the State of Nevada and has full corporate power and authority to own and use its properties
and its assets and conduct its business as currently conducted. Each of the Company’s subsidiaries identified on Schedule
3.1 hereto (the “Subsidiaries”) is an entity duly organized, validly existing and in good standing under the laws
of the jurisdiction of its incorporation with the requisite corporate power and authority to own and use its properties and assets
and to conduct its business as currently conducted. Neither the Company, nor any of its Subsidiaries is in violation of any of
the provisions of their respective articles of incorporation, by-laws or other organizational or charter documents, including,
but not limited to the Charter Documents (as defined below). Each of the Company and its Subsidiaries is duly qualified to conduct
business and is in good standing as a foreign corporation in each jurisdiction in which the nature of the business conducted or
property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the
case may be, would not result in a direct and/or indirect (i) material adverse effect on the legality, validity or enforceability
of any of the Securities and/or this Agreement, (ii) material adverse effect on the results of operations, assets, business,
condition (financial and other) or prospects of the Company and its Subsidiaries, taken as a whole, or (iii) material adverse effect
on the Company’s ability to perform in any material respect on a timely basis its obligations under the Transaction Documents
(any of (i), (ii) or (iii), a “Material Adverse Effect”).

 

    	2

    	 

    

 

3.2   
Capitalization and Voting Rights. The authorized, issued and outstanding capital stock of the Company is as set forth
in Schedule 3.2 hereto and all issued and outstanding shares of capital stock of the Company are validly issued, fully paid
and nonassessable. Except as set forth in Schedule 3.2 hereto, (i) there are no outstanding securities of the Company or
any of its Subsidiaries which contain any preemptive, redemption or similar provisions, nor is any holder of securities of the
Company or any Subsidiary entitled to preemptive or similar rights arising out of any agreement or understanding with the Company
or any Subsidiary by virtue of any of the Transaction Documents, and there are no contracts, commitments, understandings or arrangements
by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries;
(ii) neither the Company nor any Subsidiary has any stock appreciation rights or "phantom stock" plans or agreements
or any similar plan or agreement; and (iii) except as set forth in Schedule 3.2 there are no outstanding options, warrants, agreements,
convertible securities, preemptive rights or other rights to subscribe for or to purchase or acquire, any shares of capital stock
of the Company or any Subsidiary or contracts, commitments, understandings, or arrangements by which the Company or any Subsidiary
is or may become bound to issue any shares of capital stock of the Company or any Subsidiary, or securities or rights convertible
or exchangeable into shares of capital stock of the Company or any Subsidiary. Except as set forth in Schedule 3.2 and as
otherwise required by law, there are no restrictions upon the voting or transfer of any of the shares of capital stock of the Company
pursuant to the Company’s Charter Documents (as defined below) or other governing documents or any agreement or other instruments
to which the Company is a party or by which the Company is bound. All of the issued and outstanding shares of capital stock of
the Company are validly issued, fully paid and nonassessable and the shares of capital stock of the Subsidiaries are owned by the
Company, free and clear of any mortgages, pledges, liens, claims, charges, encumbrances or other restrictions (collectively, “Encumbrances”).
All of such outstanding capital stock has been issued in compliance with applicable federal and state securities laws. The issuance
and sale of the Securities and, upon issuance, the Shares, as contemplated hereby will not obligate the Company to issue shares
of Common Stock or other securities to any other person (other than the Subscriber) and except as set forth in Schedule 3.2
will not result in the adjustment of the exercise, conversion, exchange or reset price of any outstanding security. The Company
does not have outstanding stockholder purchase rights or “poison pill” or any similar arrangement in effect giving
any person the right to purchase any equity interest in the Company upon the occurrence of certain events.

 

3.3   
Authorization; Enforceability.The Company has all corporate right, power and authority to enter into, execute and
deliver this Agreement and each other agreement, document, instrument and certificate to be executed by the Company in connection
with the consummation of the transactions contemplated hereby, including, but not limited to Transaction Documents and to perform
fully its obligations hereunder and thereunder. All corporate action on the part of the Company, its directors and stockholders
necessary for the (a) authorization execution, delivery and performance of this Agreement and the Transaction Documents by the
Company; and (b) authorization, sale, issuance and delivery of the Securities and upon issuance, the Shares contemplated hereby
and the performance of the Company’s obligations under this Agreement and the Transaction Documents has been taken. This
Agreement and the Transaction Documents have been duly executed and delivered by the Company and each constitutes a legal, valid
and binding obligation of the Company, enforceable against the Company in accordance with its respective terms, subject to laws
of general application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance,
injunctive relief or other equitable remedies, and to limitations of public policy. The Securities are duly authorized and, when
issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable,
free and clear of all Encumbrances other than restrictions on transfer provided for in the Transaction Documents. The Shares, when
issued and paid for in accordance with the terms of the Transaction Documents, will be validly issued, fully paid and nonassessable,
free and clear of all Encumbrances imposed by the Company other than restrictions on transfer provided for in the Transaction Documents.
The Company has reserved a sufficient number of Warrant Shares for issuance upon the exercise of the Warrants, free and clear of
all Encumbrances, except for restrictions on transfer set forth in the Transaction Documents or imposed by applicable securities
laws. Except as set forth on Schedule 3.3 hereto, the issuance and sale of the Securities contemplated hereby will not give
rise to any preemptive rights or rights of first refusal on behalf of any person other than the Subscribers.

 

    	3

    	 

    

 

3.4   
No Conflict; Governmental Consents.

 

(a)            
The execution and delivery by the Company of this Agreement and the Transaction Documents, the issuance and sale of the
Securities (including, when issued, the Shares) and the consummation of the other transactions contemplated hereby or thereby do
not and will not (i) result in the violation of any law, statute, rule, regulation, order, writ, injunction, judgment or decree
of any court or governmental authority to or by which the Company is bound including without limitation all foreign, federal, state
and local laws applicable to its business and all such laws that affect the environment, except in each case as could not have
or reasonably be expected to result in a Material Adverse Effect, (ii) conflict with or violate any provision of the Company’s
Articles of Incorporation (the “Articles”), as amended or the Bylaws, (and collectively with the Articles, the “Charter
Documents”) of the Company, and (iii) conflict with, or result in a material breach or violation of, any of the terms or
provisions of, or constitute (with or without due notice or lapse of time or both) a default or give to others any rights of termination,
amendment, acceleration or cancellation (with or without due notice, lapse of time or both) under any agreement, credit facility,
lease, loan agreement, mortgage, security agreement, trust indenture or other agreement or instrument to which the Company or any
Subsidiary is a party or by which any of them is bound or to which any of their respective properties or assets is subject, nor
result in the creation or imposition of any Encumbrances upon any of the properties or assets of the Company or any Subsidiary.

 

(b)           
No approval by the holders of Common Stock, or other equity securities of the Company is required to be obtained by the
Company in connection with the authorization, execution, delivery and performance of this Agreement and the other Transaction Documents
or in connection with the authorization, issue and sale of the Securities and, upon issuance, the Shares, except as has been previously
obtained.

 

(c)            
No consent, approval, authorization or other order of any governmental authority or any other person is required to be obtained
by the Company in connection with the authorization, execution, delivery and performance of this Agreement and the other Transaction
Documents or in connection with the authorization, issue and sale of the Securities and, upon issuance, the Shares, except such
post-sale filings as may be required to be made with the SEC, FINRA and with any state or foreign blue sky or securities regulatory
authority, all of which shall be made when required.

 

3.5   
Consents of Third Parties.No vote, approval or consent of any holder of capital stock of the Company or any other
third parties is required or necessary to be obtained by the Company in connection with the authorization, execution, deliver and
performance of this Agreement and the other Transaction Documents or in connection with the authorization, issue and sale of the
Securities and, upon issuance, the Shares, except as previously obtained, each of which is in full force and effect.

 

3.6   
Shell Company Status; SEC Reports; Financial Statements. The Company has never been an issuer subject to Rule 144(i)
under the Securities Act. The Company has (a) for the twenty-four (24) months preceding the filing of the Company’s Annual
Report on Form 10-K of the fiscal year ended March 31, 2013 (the “2013 10-K”) (or such shorter period as the Company
was required by law to file such reports) (i) disclosed all material information required to be publicly disclosed by it on Form
8-K, (ii) filed all reports on Form 10-Q and Form 10-K and (iii) filed all other reports (other than any Form 8-K) required to
be filed by it under the Securities Act and the Securities Exchange Act of 1934, as amended, including pursuant to Section 13(a)
or 15(d) thereof (the “Exchange Act”) and (b) since the filing of the 2013 10-K, the Company has filed all reports
required to be filed by it under the Securities Act and Exchange Act, (the foregoing materials being collectively referred to herein
as the "SEC Reports" and, together with the Schedules to this Agreement (if any), the "Disclosure Materials")
on a timely basis or has timely filed a valid extension of such time of filing and has filed any such SEC Reports prior to the
expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements
of the Exchange Act and the rules and regulations of the SEC promulgated thereunder, and none of the SEC Reports, when filed, contained
any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order
to make the statements therein, in light of the circumstances under which they were made, not misleading. The financial statements
of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules
and regulations of the SEC with respect thereto as in effect at the time of filing. Such financial statements have been prepared
in accordance with United States generally accepted accounting principles (“GAAP”) applied on a consistent basis during
the periods involved, except as may be otherwise specified in such financial statements or the footnotes thereto, and fairly present
in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof
and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal,
immaterial, year-end audit adjustments.

    	4

    	 

    

 

3.7   
Licenses. Except as otherwise set forth in the SEC Reports, the Company and its Subsidiaries have sufficient licenses,
permits and other governmental authorizations currently required for the conduct of their respective businesses or ownership of
properties and is in all material respects in compliance therewith.

 

3.8   
Litigation. Except as set forth in the SEC Reports, the Company knows of no pending or threatened legal or governmental
proceedings against the Company or any Subsidiary which could materially adversely affect the business, property, financial condition
or operations of the Company and its Subsidiaries, taken as a whole, or which materially and adversely questions the validity of
this Agreement or the other Transaction Documents or the right of the Company to enter into this Agreement and the other Transaction
Documents, or to perform its obligations hereunder and thereunder. Neither the Company nor any Subsidiary is a party or subject
to the provisions of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality which
could materially adversely affect the business, property, financial condition or operations of the Company and its Subsidiaries
taken as a whole. Except as set forth in the SEC Reports, there is no action, suit, proceeding or investigation by the Company
or any Subsidiary currently pending in any court or before any arbitrator or that the Company or any Subsidiary intends to initiate.
Neither the Company nor any Subsidiary, nor any director or officer thereof, is or since the Form 10-K has been the subject of
any action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary
duty. There has not been, and to the Company’s knowledge, there is not pending or contemplated, any investigation by the
SEC involving the Company or any current or former director or officer of the Company.

 

3.9   
Compliance. Except as set forth in the SEC Reports or on Schedule 3.9, neither the Company nor any Subsidiary:
(i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time
or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice
of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement
or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation
has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority
or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without
limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety,
product quality and safety and employment and labor matters, except in each case as could not have or reasonably be expected to
result in a Material Adverse Effect.

 

3.10
Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued
by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as
currently conducted, except where the failure to possess such permits could not reasonably be expected to result in a Material
Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings
relating to the revocation or modification of any Material Permit.

 

3.11
FDA. The Company’s Hemopurifier product is subject to the jurisdiction of the Center for Devices of Radiological
Health (CDRH) a division of the U.S. Food and Drug Administration (“FDA”) and may be subject to the Federal Food, Drug
and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”). The Hemopurifier iscurrently manufactured, tested,
distributed, and/or marketed by the Company and/or its Subsidiaries or outsourced vendors in compliance with all applicable requirements
established by the CDRH and other federal or state laws, rules and regulations applicable to the clinical testing and development
of the Hemopurifier, except where the failure to be in compliance would not reasonably be expected to have a Material Adverse Effect.
There is no pending, completed or, to the Company’s knowledge, threatened, action from the FDA or any other governmental
entity (including any lawsuit, arbitration, or legal or administrative or regulatory proceeding, charge, complaint, or investigation)
against the Company or any of its Subsidiaries, and none of the Company or any of its Subsidiaries has received any notice, warning
letter or other communication from the FDA or any other governmental entity, which retracts any portion of the Investigational
Device Exemption (IDE) for the Hemopurifier in the United States as approved by the FDA on June 25, 2013. The Company has
not been informed by the FDA that the FDA will prohibit the marketing, sale, license or use in the United States of any product
currently developed, produced or marketed by the Company.

 

3.12
Investment Company. The Company is not an “investment company” within the meaning of such term under
the Investment Company Act of 1940, as amended, and the rules and regulations of the SEC thereunder.

 

3.13
Brokers. Except for the fees payable to the Placement Agent as set forth on Schedule 3.13, neither the Company
nor any of the Company's officers, directors, employees or stockholders has employed or engaged any broker or finder in connection
with the transactions contemplated by this Agreement and no fee or other compensation is or will be due and owing to any broker,
finder, underwriter, placement agent or similar person in connection with the transactions contemplated by this Agreement. The
Company is not party to any agreement, arrangement or understanding whereby any person has an exclusive right to raise funds and/or
place or purchase any debt or equity securities for or on behalf of the Company.

 

    	5

    	 

    

 

3.14
Intellectual Property; Employees.

 

(a)            
The Company owns or possesses sufficient legal rights to all patents, trademarks, service marks, trade names, copyrights,
trade secrets, licenses, information and other proprietary rights and processes necessary for its business as now conducted and
as presently proposed to be conducted, without any known infringement of the rights of others as described in the SEC Reports and
which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”).
Except as disclosed on Schedule 3.14 or the SEC Reports, there are no material outstanding options, licenses or agreements
of any kind relating to the Intellectual Property Rights, nor is the Company bound by or a party to any material options, licenses
or agreements of any kind with respect to the patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses,
information and other proprietary rights and processes of any other person or entity other than such licenses or agreements arising
from the purchase of “off the shelf” or standard products. The Company has not received any written communications
alleging that the Company has violated or, by conducting its business as presently proposed to be conducted, would violate any
Intellectual Property Rights of any other person or entity. The Company and its Subsidiaries have taken reasonable security measures
to protect the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do so could
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect

 

(b)           
Except as disclosed in the SEC Reports, the Company is not aware that any of its employees is obligated under any contract
(including licenses, covenants or commitments of any nature) or other agreement, or subject to any judgment, decree or order of
any court or administrative agency, that would interfere with their duties to the Company or that would conflict with the Company’s
business as presently conducted.

 

(c)            
Neither the execution nor delivery of this Agreement, nor the carrying on of the Company’s business by the employees
of the Company, nor the conduct of the Company’s business as presently conducted, will, to the Company’s knowledge,
conflict with or result in a breach of the terms, conditions or provisions of, or constitute a default under, any contract, covenant
or instrument under which any employee is now obligated.

 

(d)           
To the Company’s knowledge, no employee of the Company, nor any consultant with whom the Company has contracted, is
in violation of any term of any employment contract, proprietary information agreement or any other agreement relating to the right
of any such individual to be employed by, or to contract with, the Company because of the nature of the business conducted by the
Company; and to the Company’s knowledge the continued employment by the Company of its present employees, and the performance
of the Company’s contracts with its independent contractors, will not result in any such violation. The Company has not received
any written notice alleging that any such violation has occurred. Except as described in SEC Reports, no employee of the Company
has been granted the right to continued employment by the Company or to any compensation following termination of employment with
the Company except for any of the same which would not have a Material Adverse Effect on the business of the Company. The Company
is not aware that any officer, key employee or group of employees intends to terminate his, her or their employment with the Company,
nor does the Company have a present intention to terminate the employment of any officer, key employee or group of employees.

    	6

    	 

    

 

3.15
Title to Properties and Assets; Liens, Etc. Except as described in the SEC Reports, the Company has good and marketable
title to its properties and assets, including the properties and assets reflected in the most recent balance sheet included in
the Company’s financial statements, and good title to its leasehold estates, in each case subject to no Encumbrances, other
than (a) those resulting from taxes which have not yet become delinquent; and (b) Encumbrances which do not materially detract
from the value of the property subject thereto or materially impair the operations of the Company; and (c) those that have otherwise
arisen in the ordinary course of business, none of which are material. Except as set forth in Schedule 3.15, the Company
is in compliance with all material terms of each lease to which it is a party or is otherwise bound.

 

3.16
Obligations to Related Parties. Except as described in the SEC Reports and in Schedule 3.16, there are no
obligations of the Company to officers, directors, stockholders, or employees of the Company other than (a) for payment of salary
or other compensation for services rendered, (b) reimbursement for reasonable expenses incurred on behalf of the Company and (c)
for other standard employee benefits made generally available to all employees (including stock option agreements outstanding under
any stock option plan approved by the Board of Directors of the Company). Except as disclosed in the SEC Reports, none of the officers
or directors of the Company and, to the Company’s knowledge, none of the employees of the Company is presently a party to
any transaction with the Company or any Subsidiary (other than as holders of stock options and/or warrants, and for services as
employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services
to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer,
director or such employee or, to the Company’s knowledge, any entity in which any officer, director, or any such employee
has a substantial interest or is an officer, director, trustee or partner.

 

3.17
Material Changes. Except as set forth in Schedule 3.17, since the date of the latest audited financial statements
included within the SEC Reports, except as specifically disclosed in the subsequent SEC Reports, (i) there has been no event, occurrence
or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not
incurred any liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred
in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's
financial statements pursuant to generally accepted accounting principles or required to be disclosed in filings made with the
SEC, (iii) the Company has not altered its method of accounting or the identity of its auditors, (iv) the Company has not declared
or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements
to purchase or redeem any shares of its capital stock, and (v) the Company has not issued any equity securities to any officer,
director or affiliate, except pursuant to existing Company stock option plans. The Company does not have pending before the SEC
any request for confidential treatment of information.

 

3.18
Sarbanes-Oxley. The Company is in compliance with all effective requirements of the Sarbanes-Oxley Act of 2002, as
amended, and the rules and regulations thereunder, that are applicable to it, except where such noncompliance could not have or
reasonably be expected to result in a Material Adverse Effect.

 

3.19
No General Solicitation. None of the Company, its Subsidiaries, any of their affiliates, and any person acting
on their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D
under the Securities Act) in connection with the offer or sale of the Securities.

 

3.20
No Integrated Offering. Assuming the accuracy of the Subscriber representations and warranties set forth in
Article I hereunder, none of the Company, its Subsidiaries, any of their affiliates, and any person acting on their behalf has,
directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances
that would require registration of any of the Securities under the Securities Act or that is likely to cause this offering of the
Securities to be integrated with prior offerings by the Company for purposes of the Securities Act or any applicable stockholder
approval provisions, including without limitation, under the rules and regulations of any exchange or automated quotation system
on which any of the securities of the Company are listed or designated. Except as disclosed in the SEC Reports, none of the Company,
its Subsidiaries, their affiliates and any person acting on their behalf, have taken any action or steps referred to in the preceding
sentence that would require registration of any of the Securities under the Securities Act or cause the offering of the Securities
to be integrated with other offerings.

    	7

    	 

    

 

3.21
Application of Takeover Protections. The Company has taken all necessary action, if any, in order to render inapplicable
any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other
similar anti-takeover provision under the Company's Charter Documents or the laws of its state of incorporation that is or could
become applicable to the Subscriber as a result of the Subscriber and the Company fulfilling their obligations or exercising their
rights under this Agreement, including, without limitation, the Company's issuance of the Securities and the Subscriber' ownership
of the Securities.

 

3.22
Taxes. Each of the Company and its Subsidiaries has filed all U.S. federal, state, local and foreign tax returns
which are required to be filed by each of them and all such returns are true and correct in all material respects, except for such
failures to file which could not reasonably be expected to have a Material Adverse Effect. The Company and each Subsidiary has
paid all taxes pursuant to such returns or pursuant to any assessments received by any of them or by which any of them are obligated
to withhold from amounts owing to any employee, creditor or third party. The Company and each Subsidiary has properly accrued all
taxes required to be accrued and/or paid, except where the failure to accrue would not have a Material Adverse Effect. To the knowledge
of the Company, the tax returns of the Company and its Subsidiaries are not currently being audited by any state, local or federal
authorities. Neither the Company nor any Subsidiary has waived any statute of limitations with respect to taxes or agreed to any
extension of time with respect to any tax assessment or deficiency. The Company has set aside on its books adequate provision for
the payment of any unpaid taxes.

 

3.23
Registration Rights. Except as set forth on Schedule 3.23, no person has any right to cause the Company to
effect the registration under the Securities Act of any securities of the Company.

 

3.24
Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange
Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act nor has the Company received any notification that the SEC is contemplating
terminating such registration. The Company has not, in the 12 months preceding the date hereof, received notice from any trading
market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing
or maintenance requirements of such trading market. The Company is, and has no reason to believe that it will not in the foreseeable
future continue to be, in compliance with all such listing and maintenance requirements

 

3.25
Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Offering
Materials, the Company confirms that neither it nor any other person acting on its behalf has provided the Subscriber or its agents
or counsel with any information that it believes constitutes or might constitute material, non-public information. The Company
understands and confirms that the Subscriber will rely on the foregoing representation in effecting transactions in securities
of the Company. All disclosure furnished by or on behalf of the Company to the Subscriber regarding the Company, its business and
the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct and does not contain
any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein,
in light of the circumstances under which they were made, not misleading. The press releases disseminated by the Company during
the twelve months preceding the date of this Agreement taken as a whole together the SEC Reports do not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements,
in light of the circumstances under which they were made and when made, not misleading.

 

3.26
Private Placement. Assuming the accuracy of the Subscribers’ representations and warranties set forth in Section
1, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Subscriber
as contemplated hereby.

 

3.27
DTC Status. The Company’s transfer agent (the “Transfer Agent”) is a partial member participant
of the Depository Trust Company Automated Securities Transfer Program. The Company's Common Stock is currently eligible for transfer
pursuant to the Depository Trust Company Automated Securities Transfer Program.

 

3.28
OFAC. Neither the Company nor, to the Company’s knowledge, any director, officer, agent, employee, affiliate
or person acting on its behalf, is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control
of the U.S. Treasury Department (“OFAC”); and the Company will not directly or indirectly use the proceeds of the sale
of the Units, or lend, contribute or otherwise make available such proceeds to any joint venture partner or other person or entity,
towards any sales or operations in Cuba, Iran, Syria, Sudan, Myranmar or any other country sanctioned by OFAC or for the purpose
of financing the activities of any person currently subject to any U.S. sanctions.

    	8

    	 

    

 

 

3.29
Bad Actor Disqualification

 

(a)    
No Disqualification Events. With respect to Securities to be offered and sold hereunder in reliance on Rule 506 under
the Securities Act ("Regulation D Securities"), none of the Company, any of its predecessors, any affiliated issuer,
any director, executive officer, other officer of the Company participating in the offering, any beneficial owner of 20% or more
of the Company's outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term
is defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of sale (each, an "Issuer
Covered Person" and, together, "Issuer Covered Persons") is subject to any of the "Bad Actor" disqualifications
described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a "Disqualification Event"), except for a Disqualification
Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person
is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under
Rule 506(e), and has furnished to the Placement Agent and the Subscriber a copy of any disclosures provided thereunder.

 

(b)    
Other Covered Persons. The Company is not aware of any person that (i) has been or will be paid (directly or indirectly)
remuneration for solicitation of purchasers in connection with the sale of the Securities and (ii) who is subject to a Disqualification
Event.  

 

(c)    
Notice of Disqualification Events. The Company will notify the Placement Agent in writing of (i) any Disqualification
Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, become a Disqualification
Event relating to any Issuer Covered Person, prior to any Closing of this Offering.

 

		IV.	TERMS OF SUBSCRIPTION

 

4.1   
The Securities will be offered for sale until the earlier of (i) the date upon which subscriptions for the Maximum Offering
offered hereunder have been accepted, (ii) November 30, 2013 (subject to the right of the Company and the Placement Agent to extend
the offering until December 31, 2013 without further notice to investors), or (iii) the date upon which the Company and the Placement
Agent elect to terminate the Offering (the “Termination Date”). The Offering is being conducted on a “reasonable
efforts, all or none” basis with respect to the Minimum Offering and thereafter on a “reasonable efforts”
basis for up to the Maximum Offering.

 

4.2   
The Company may hold an initial closing (“Initial Closing”) at any time after the receipt of accepted subscriptions
for the Minimum Offering. After the Initial Closing, subsequent closings with respect to additional Securities may take place at
any time prior to the Termination Date as determined by the Company, with respect to subscriptions accepted prior to the Termination
Date (each such closing, together with the Initial Closing, being referred to as a “Closing”). The last Closing of
the Offering, occurring on or prior to the Termination Date, shall be referred to as the “Final Closing”. Any subscription
documents or funds received after the Final Closing will be returned, without interest or deduction. In the event that the any
Closing does not occur prior to the Termination Date, all amounts paid by the Subscriber shall be returned to the Subscriber, without
interest or deduction. The Subscriber may revoke its subscription and obtain a return of the subscription amount paid to the Escrow
Account at any time before the date of the Initial Closing by providing written notice to the Placement Agent, the Company and
the Escrow Agent as provided in Section 6.1 below. Upon receipt of a revocation notice from the Subscriber prior to the date of
the Initial Closing, all amounts paid by the Subscriber shall be returned to the Subscriber, without interest or deduction. The
Subscriber may not revoke this subscription or obtain a return of the subscription amount paid to the Escrow Agent on or after
the date of the Initial Closing. Any subscription received after the Initial Closing but prior to the Termination Date shall be
irrevocable.

 

4.3   
The minimum purchase that may be made by any prospective investor shall be $12,500. Subscriptions
for investment below the minimum investment may be accepted at the discretion of the Placement Agent and the Company. The Company
and the Placement Agent reserve the right to reject any subscription made hereby, in whole or in part, in their sole discretion.
The Company’s agreement with each Subscriber is a separate agreement and the sale of the Securities to each Subscriber is
a separate sale.

 

4.4   
All funds shall be deposited in the account identified in Section 1.1 hereof.

 

4.5   
Certificates representing the Securities purchased by the Subscriber pursuant to this Agreement will be prepared for delivery
to the Subscriber as soon as practicable following the Closing (but in no event later than five (5) days after a Closing) at which
such purchase takes place. The Subscriber hereby authorizes and directs the Company to deliver the certificates representing the
Securities purchased by the Subscriber pursuant to this Agreement directly to the Subscriber’s residential or business or
brokerage house address indicated on the signature page hereto.

 

4.6   
The Company’s agreement with each Subscriber is a separate agreement and the sale of Securities to each Subscriber
is a separate sale.

 

    	9

    	 

    

 

		V.	CONDITIONS TO OBLIGATIONS OF THE SUBSCRIBER

 

5.1   
The Subscriber’s obligation to purchase the Securities at the Closing at which such purchase is to be consummated
is subject to the fulfillment on or prior to such Closing of the following conditions, which conditions may be waived at the option
of each Subscriber to the extent permitted by law:

 

(a)            
Representations and Warranties; Covenants. The representations and warranties made by the Company in Section 3 hereof
qualified as to materiality shall be true and correct as of the Initial Closing and on each Closing Date, except (i) to the extent
any such representation or warranty expressly speaks as of an earlier date, in which case such representation or warranty shall
be true and correct as of such earlier date, and, (ii) the representations and warranties made by the Company in Section 3 hereof
not qualified as to materiality shall be true and correct in all material respects at all times prior to and on the Closing Date,
except to the extent any such representation or warranty expressly speaks as of an earlier date, in which case such representation
or warranty shall be true and correct in all material respects as of such earlier date; provided however, that notwithstanding
the foregoing, the Company shall only be required to update the Disclosure Schedules by the delivery to the Subscribers by the
Company of an amended Disclosure Schedule with respect to any information that is of a material nature as of such proposed Closing
Date. All covenants, agreements and conditions contained in this Agreement to be performed by the Company on or prior to the date
of such Closing shall have been performed or complied with in all material respects.

 

(b)           
No Legal Order Pending. There shall not then be in effect any legal or other order enjoining or restraining the transactions
contemplated by this Agreement.

 

(c)            
No Law Prohibiting or Restricting Such Sale. There shall not be in effect any law, rule or regulation prohibiting
or restricting such sale or requiring any consent or approval of any person, which shall not have been obtained, to issue the Securities
(except as otherwise provided in this Agreement).

 

(d)           
Required Consents. The Company shall have obtained any and all consents, permits, approvals, registrations and waivers
necessary or appropriate for consummation of the purchase and sale of the Securities and the consummation of the other transactions
contemplated by the Transaction Documents, all of which shall be in full force and effect.

 

(e)Adverse
Changes. Since the date of execution of this Agreement, no event or series of events shall have occurred that reasonably could
have or result in a Material Adverse Effect.

 

(f)No
Suspensions of Trading in Common Stock; Listing. Trading in the Common Stock shall not have been suspended by the SEC or any
trading market (except for any suspensions of trading of not more than one trading day solely to permit dissemination of material
information regarding the Company) at any time since the date of execution of this Agreement, and the Common Stock shall have been
at all times since such date listed for trading on a trading market.

 

(g)Blue
Sky. The Company shall have completed qualification for the Securities and the Shares under applicable Blue Sky laws.

 

(h)Legal
Opinion. The Company’s corporate counsel shall have delivered a legal opinion addressed to the Subscribers in a form
reasonably acceptable to the Placement Agent.

 

(i)Proceedings
and Litigation. No action, suit or proceeding shall have been commenced by any Person against any party hereto seeking to restrain
or delay the purchase and sale of the Units or the other transactions contemplated by this Agreement or any of the other Offering
Documents.

    	10

    	 

    

 

 

(j)Disclosure
Schedules. The Company shall have delivered a copy of its Disclosure Schedules (or amended Disclosure Schedules) qualifying
any of the representations and warranties contained in Section 3 which original Disclosure Schedules will speak only as Initial
Closing.

 

		VI.	COVENANTS OF THE COMPANY

 

6.1   
Transfer Restrictions.

 

(a)            
The Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer
of Securities other than pursuant to an effective registration statement or Rule 144 promulgated under the Securities Act, to the
Company or to an affiliate of a Subscriber or in connection with, the Company may require the transferor thereof to provide to
the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of
which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of
such transferred Securities under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to
be bound by the terms of this Agreement, and shall have the rights of a Subscriber under this Agreement.

 

(b)           
The Subscriber agrees to the imprinting, so long as is required by this Section 5.1, of a legend on any of the Securities,
including the Shares, in the following form:

 

[NEITHER]
THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS [EXERCISABLE] [CONVERTIBLE]] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES
AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY
A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.
THIS SECURITY [AND THE SECURITIES ISSUABLE UPON [EXERCISE] [CONVERSION] OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION WITH A BONA
FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

(c)            
Certificates evidencing the Shares shall not contain any legend (including the legend set forth in Section 4.1(b) hereof):
(i) while a registration statement covering the resale of such security is effective under the Securities Act, or (ii) following
any sale of such Shares pursuant to Rule 144, or (iii) if such Shares are eligible for sale under Rule 144, without the requirement
for the Company to be in compliance with the current public information required under Rule 144 as to such Shares and without volume
or manner-of-sale restrictions or (iv) if such legend is not required under applicable requirements of the Securities Act (including
judicial interpretations and pronouncements issued by the staff of the SEC). The Company shall cause its counsel, at the Company’s
expense, to issue a legal opinion to the Company’s transfer agent promptly (but in no event later than the requisite share
delivery date set forth in the Warrants) if required by the Company’s transfer to effect the removal of the legend hereunder.

 

    	11

    	 

    

 

6.2           
Listing of Securities. The Company agrees, (i) if the Company applies to have the Common Stock traded on any other
trading market, it will include in such application the shares of Common Stock and Shares, and will take such other action as is
necessary or desirable to cause the shares of Common Stock and Shares to be listed on such other trading market as promptly as
possible, and (ii) it will take all action reasonably necessary to continue the listing and trading of its Common Stock on a trading
market and will comply in all material respects with the Company’s reporting, filing and other obligations under the bylaws
or rules of the trading market.

 

6.3   
Reservation of Shares. The Company shall at all times while the Warrants are outstanding maintain a reserve from
its duly authorized shares of Common Stock of a number of shares of Common Stock sufficient to allow for the issuance of the Warrant
Shares.

 

6.4   
Replacement of Securities. If any certificate or instrument evidencing any Securities or the Shares is mutilated,
lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation
thereof, or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity, if requested. The applicants
for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the
issuance of such replacement securities. If a replacement certificate or instrument evidencing any securities is requested due
to a mutilation thereof, the Company may require delivery of such mutilated certificate or instrument as a condition precedent
to any issuance of a replacement.

 

6.5   
Furnishing of Information. Until the time that no Subscriber owns Securities, the Company covenants to maintain the
registration of the Common Stock under Section 12(b) or 12(g) of the Exchange Act and to timely file (or obtain extensions in respect
thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant
to the Exchange Act. As long as Subscriber owns Securities, if the Company is not required to file reports pursuant to the Exchange
Act, it will prepare and furnish to Subscriber and make publicly available in accordance with Rule 144(c) such information as is
required for the Subscribers to sell the Securities under Rule 144. The Company further covenants that it will take such further
action as any holder of Securities may reasonably request, to the extent required from time to time to enable such person to sell
such Securities without registration under the Securities Act within the requirements of the exemption provided by Rule 144.

 

6.6   
Securities Laws; Publicity. The Company shall, by 8:30 a.m. (New York City time) on the second trading day immediately
following a Closing hereunder, issue a Current Report on Form 8-K disclosing the material terms of the transactions contemplated
hereby and including the Transaction Documents as exhibits thereto to the extent required by law. The Company shall not publicly
disclose the name of Subscriber, or include the name of any Subscriber in any filing with the SEC or any regulatory agency or trading
market, without the prior written consent of Subscriber, except: (a) as required by federal securities law in connection with the
filing of final Transaction Documents (including signature pages thereto) with the SEC and (b) to the extent such disclosure is
required by law, in which case the Company shall provide the Subscriber with prior notice of such disclosure permitted under this
clause (b).

 

6.7   
Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under
Regulation D promulgated under the Securities Act and to provide a copy thereof, promptly upon request of the Subscriber. The Company
shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify
the Securities for, sale to the Subscriber at the Closing under applicable securities or “Blue Sky” laws of the states
of the United States, and shall provide evidence of such actions promptly upon request of any Subscriber.

 

6.8   
Equal Treatment of Subscribers. No consideration (including any modification of any Transaction Document) shall be
offered or paid to any person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents
unless the same consideration is also offered to all of the parties to the Transaction Documents.

    	12

    	 

    

 

6.9   
Indemnification. 

 

(a)     
The Company agrees to indemnify and hold harmless the Subscriber, its affiliates and their respective officers, directors,
employees, agents and controlling persons (collectively, the “Indemnified Parties”) from and against , any and all
loss, liability, damage or deficiency suffered or incurred by any Indemnified Party by reason of any misrepresentation or breach
of warranty by the Company or,after any applicable notice and/or cure periods, nonfulfillment
of any covenant or agreement to be performed or complied with by the Company under this Agreement, the Transaction Documents; and
will promptly reimburse the Indemnified Parties for all expenses (including reasonable fees and expenses of legal counsel) as incurred
in connection with the investigation of, preparation for or defense of any pending or threatened claim related to or arising in
any manner out of any of the foregoing, or any action or proceeding arising therefrom (collectively, “Proceedings”),
whether or not such Indemnified Party is a formal party to any such Proceeding.

 

(b)     
If for any reason (other than a final non-appealable judgment finding any Indemnified Party liable for losses, claims, damages,
liabilities or expenses for its gross negligence or willful misconduct) the foregoing indemnity is unavailable to an Indemnified
Party or insufficient to hold an Indemnified Party harmless, then the Company shall contribute to the amount paid or payable by
an Indemnified Party as a result of such loss, claim, damage, liability or expense in such proportion as is appropriate to reflect
not only the relative benefits received by the Company on the one hand and the Advisor on the other, but also the relative fault
by the Company and the Indemnified Party, as well as any relevant equitable considerations.

 

6.10Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents,
the Company covenants and agrees that neither it, nor any other person acting on its behalf, will provide Subscriber or its agents
or counsel with any information that the Company believes constitutes material non-public information, unless prior thereto Subscriber
shall have executed a written agreement regarding the confidentiality and use of such information. The Company understands and
confirms that Subscriber shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

 

6.11Use
of Proceeds. Except as set forth on Schedule 6.11 attached hereto, the Company shall use the net proceeds from the sale
of the Securities hereunder for working capital purposes and shall not use such proceeds for: (a) the satisfaction of any portion
of the Company’s debt (other than payment of trade payables in the ordinary course of the Company’s business and prior
practices), (b) the redemption of any Common Stock or Common Stock equivalents or (c) the settlement of any outstanding litigation.

 

    	13

    	 

    

 

 

		VII.	MISCELLANEOUS

 

7.1   
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered
via facsimile or by electronic communication at or prior to 5:30 p.m. (New York City time) on a day in which the New York Stock
Exchange is open for trading (a “Trading Day”), (b) the next Trading Day after the date of transmission, if such notice
or communication is delivered via facsimile or electronic communication on a day that is not a Trading Day or later than 5:30 p.m.
(New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by
U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to
be given. The address for such notices and communications shall be addressed as follows:

 

if to the
Company, to it at:

 

Aethlon Medical, Inc.

8910 University Center Lane, Suite 660

San Diego, California 92122

Attn: James A. Joyce, CEO

 

With a copy to (which shall not constitute notice):

 

Post Law Group, PC

5900 Wilshire Boulevard, Suite 620

Los Angeles, CA 90036Attn: Jennifer A. Post, Esq.

if to the Subscriber, to the Subscriber’s
address indicated on the signature page of this Agreement.

 

With a copy to (which shall not constitute notice):

 

Sichenzia Ross Friedman Ference LLP

61 Broadway, 32nd Floor

New York, NY 10006

Attn: Richard A. Friedman, Esq.

 

if to the Escrow Agent, to it at:

 

_________________

_________________

_________________

_________________

_________________

 

7.2   
Except as otherwise provided herein, this Agreement shall not be changed, modified or amended except by a writing signed
by the Company and the parties to be charged, and this Agreement may not be discharged except by performance in accordance with
its terms or by a writing signed by the party to be charged. No waiver of any default with respect to any provision, condition
or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default
or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any
right hereunder in any manner impair the exercise of any such right.

 

7.3   
This Agreement shall be binding upon and inure to the benefit of the parties hereto and to their respective heirs, legal
representatives, successors and assigns. The Company may not assign this Agreement or any rights or obligations hereunder without
the prior written consent of Subscriber (other than by merger). Subscriber may assign any or all of its rights under this Agreement
to any person to whom Subscriber assigns or transfers any Securities, provided that such transferee agrees in writing to be bound,
with respect to the transferred Securities, by the provisions of the Transaction Documents.

 

    	14

    	 

    

 

7.4   
The Transaction Documents and the Offering Materials, together with the exhibits and schedules thereto, contain the entire
understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral
or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

7.5   
Upon the execution and delivery of this Agreement by the Subscriber and the Company, this Agreement shall become a binding
obligation of the Subscriber with respect to the purchase of Securities as herein provided, subject, however, to the right hereby
reserved by the Company to enter into the same agreements with other Subscriber and to reject any subscription, in whole or in
part, provided the Company returns to Subscriber any funds paid by Subscriber with respect to such rejected subscription or portion
thereof, without interest or deduction.

 

7.6   
All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be
governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles
of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense
of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto
or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state
and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the
state and federal courts sitting in the City of New York, borough of Manhattan for the adjudication of any dispute hereunder or
in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement
of any of the Transaction Documents), 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 improper
or is an inconvenient venue for such proceeding.

 

7.7   
In order to discourage frivolous claims the parties agree that unless a claimant in any proceeding arising out of this Agreement
succeeds in establishing his claim and recovering a judgment against another party (regardless of whether such claimant succeeds
against one of the other parties to the action), then the other party shall be entitled to recover from such claimant all of its/their
reasonable legal costs and expenses relating to such proceeding and/or incurred in preparation therefor.

 

7.8   
The holding of any provision of this Agreement to be invalid or unenforceable by a court of competent jurisdiction shall
not affect any other provision of this Agreement, which shall remain in full force and effect. If any provision of this Agreement
shall be declared by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced in whole or in part,
such provision shall be interpreted so as to remain enforceable to the maximum extent permissible consistent with applicable law
and the remaining conditions and provisions or portions thereof shall nevertheless remain in full force and effect and enforceable
to the extent they are valid, legal and enforceable, and no provisions shall be deemed dependent upon any other covenant or provision
unless so expressed herein.

 

7.9   
It is agreed that a waiver by either party of a breach of any provision of this Agreement shall not operate, or be construed,
as a waiver of any subsequent breach by that same party.

 

7.10
The Company agrees to execute and deliver all such further documents, agreements and instruments and take such other and
further action as may be necessary or appropriate to carry out the purposes and intent of this Agreement.

 

    	15

    	 

    

 

 

7.11
This Agreement may be executed in two or more counterparts each of which shall be deemed an original, but all of which shall
together constitute one and the same instrument. In the event that any signature is delivered by facsimile transmission or by e-mail
delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing
(or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature
page were an original thereof.

 

7.12
Nothing in this Agreement shall create or be deemed to create any rights in any person or entity not a party to this Agreement.

 

7.13
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, the
Subscriber and the Company will be entitled to specific performance under this Agreement. The parties agree that monetary damages
may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence
and hereby agrees to waive in any action for specific performance of any such obligation the defense that a remedy at law would
be adequate.

 

7.14
The Company further understands and acknowledges that (i) Subscriber may engage in hedging activities at various times during
the period that the Securities are outstanding, including, without limitation, during the periods that the value of the Shares
deliverable with respect to Securities are being determined, and (ii) such hedging activities (if any) could reduce the value of
the existing stockholders' equity interests in the Company at and after the time that the hedging activities are being conducted. 
The Company acknowledges that such aforementioned hedging activities do not constitute a breach of any of the Transaction Documents.

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

    	16

    	 

    

 

IN WITNESS WHEREOF, the parties hereto
have executed this Unit Purchase Agreement as of the date set forth in the first paragraph hereof.

 

	
        COMPANY:

        

        AETHLON MEDICAL, INC.
	 
	
        By:_____________________________

        Name:

        Title:

        

        Address:

        

        Tel:

        Fax:

        email:
	 
	 	 
	 	 
	SUBSCRIBERS:
	  The Subscribers set forth on Exhibit A to the Agreement have executed a Subscription Agreement with the Company which provides, among other things, that by executing the Subscription Agreement each Subscriber is deemed to have executed this UNIT PURCHASE AGREEMENT in all respects and is bound to purchase the Units set forth in such Subscription Agreement and Exhibit A to the Agreement.          

 

 

    	17

    	 

    

 

 

EXHIBIT A

SCHEDULE OF SUBSCRIBERS

 

	Name of Subscriber	Units	Shares of Common Stock	Warrant Shares	Total Purchase

Price 
	 	 	 	 	 
		 	 	 	 

 

 

 

    	18

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