Document:

EXHIBIT 4.1

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS
OF ANY STATE OR OTHER JURISDICTION AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND SUCH LAWS. THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED UNLESS PURSUANT TO (i) AN EFFECTIVE
REGISTRATION STATEMENT OR (ii) AN EXEMPTION FROM APPLICABLE SECURITIES LAWS, IN WHICH CASE THE COMPANY MAY REQUIRE AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED.

 

	 	Right to Purchase _________ of shares of Common Stock of Aethlon Medical, Inc. (subject to adjustment as provided herein)
	 	 

 

COMMON STOCK PURCHASE WARRANT

 

	No. ___________	Issue Date: August 29, 2012

 

AETHLON MEDICAL, INC.,
a corporation organized under the laws of the State of Nevada (the “Company”), hereby certifies that, for value received,
_________ or his assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company
at any time after the Issue Date until 5:00 p.m., P.S.T. on the seventh anniversary of the Issue Date (the “Expiration Date”)
or such sooner time as this warrant is terminated pursuant to Section 6 herein, up to ______ fully paid and nonassessable shares
of the common stock of the Company (the “Common Stock”), at a per share purchase price of $0.12. The aforedescribed
purchase price per share, as adjusted from time to time as herein provided, is referred to herein as the “Purchase Price.”
The number and character of such shares of Common Stock and the Purchase Price are subject to adjustment as provided herein. The
Company may reduce the Purchase Price without the consent of the Holder.

 

As used herein the
following terms, unless the context otherwise requires, have the following respective meanings:

 

(a)           The term “Company”
shall include Aethlon Medical, Inc. and any corporation which shall succeed or assume the obligations of Aethlon Medical, Inc.
hereunder.

 

(b)           The term “Common
Stock” includes (a) the Company's Common Stock and (b) any other securities into which or for which any of the securities
described in (a) may be converted or exchanged pursuant to a plan of recapitalization, reorganization, merger, sale of assets
or otherwise.

 

(c)           The term “Other
Securities” refers to any stock (other than Common Stock) and other securities of the Company or any other person (corporate
or otherwise) which the holder of the Warrant at any time shall be entitled to receive, or shall have received, on the exercise
of the Warrant, in lieu of or in addition to Common Stock, or which at any time shall be issuable or shall have been issued in
exchange for or in replacement of Common Stock or Other Securities pursuant to Section 4 or otherwise.

 

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1.             Exercise
of Warrant.

 

1.1.             Number of
Shares Issuable upon Exercise. From and after the Issue Date through and including the Expiration Date, the Holder hereof shall
be entitled to receive, upon exercise of this Warrant in whole in accordance with the terms of subsection 1.2 or upon exercise
of this Warrant in part in accordance with subsection 1.3, shares of Common Stock of the Company, subject to adjustment pursuant
to Section 4.

 

1.2.             Full Exercise.
This Warrant may be exercised in full by the Holder hereof by delivery of an original or facsimile copy of the form of subscription
attached as Exhibit A hereto (the “Subscription Form”) duly executed by such Holder and surrender of the original
Warrant within seven (7) days of exercise to the Company at its principal office or at the office of its Warrant Agent (as provided
hereinafter), accompanied by payment, in cash, wire transfer or by certified or official bank check payable to the order of the
Company, if applicable, in the amount obtained by multiplying the number of shares of Common Stock for which this Warrant is then
exercisable by the Purchase Price then in effect. This Warrant may only be exercised for a whole number of shares.

 

1.3.             Partial Exercise.
This Warrant may be exercised in part (but not for a fractional share) by surrender of this Warrant in the manner and at the place
provided in subsection 1.2 except that the amount payable by the Holder on such partial exercise shall be the amount obtained
by multiplying (a) the number of whole shares of Common Stock designated by the Holder in the Subscription Form by (b) the
Purchase Price then in effect. On any such partial exercise, the Company, at its expense, will forthwith issue and deliver to
or upon the order of the Holder hereof a new Warrant of like tenor, in the name of the Holder hereof or as such Holder (upon payment
by such Holder of any applicable transfer taxes) may request, the whole number of shares of Common Stock for which such Warrant
may still be exercised. This Warrant may only be exercised for a whole number of shares.

 

1.4.             Company Acknowledgment.
The Company will, at the time of the exercise of the Warrant, upon the request of the Holder hereof, acknowledge in writing its
continuing obligation to afford to such Holder any rights to which such Holder shall continue to be entitled after such exercise
in accordance with the provisions of this Warrant. If the Holder shall fail to make any such request, such failure shall not affect
the continuing obligation of the Company to afford to such Holder any such rights.

 

1.5.             Trustee
for Warrant Holders. In the event that a bank or trust company shall have been appointed as trustee for the Holder of the
Warrants pursuant to Subsection 3.2, such bank or trust company shall have all the powers and duties of a warrant agent (as
hereinafter described) and shall accept, in its own name for the account of the Company or such successor person as may be entitled
thereto, all amounts otherwise payable to the Company or such successor, as the case may be, on exercise of this Warrant pursuant
to this Section 1.

 

1.6             Delivery
of Stock Certificates, etc. on Exercise. The Company agrees that the shares of Common Stock purchased upon exercise of this
Warrant shall be deemed to be issued to the Holder hereof as the record owner of such shares as of the close of business on the
date on which this Warrant shall have been surrendered and payment made for such shares as aforesaid. As soon as practicable after
the exercise of this Warrant in full or in part, and in any event within five (5) days thereafter, the Company at its expense
(including the payment by it of any applicable issue taxes) will cause to be issued in the name of and delivered to the Holder
hereof, or as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct in compliance with applicable
securities laws, a certificate or certificates for the number of duly and validly issued, fully paid and nonassessable shares
of Common Stock (or Other Securities) to which such Holder shall be entitled on such exercise, plus, in lieu of any fractional
share to which such Holder would otherwise be entitled, cash equal to such fraction.

 

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1.7             Exercise Limitations. The Company
shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant,
pursuant to this Section 1 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on
the applicable Subscription Form, the Holder (together with the Holder’s “Affiliates” (as that term is defined
by Rule 144 promulgated under the Securities Act), 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 the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates
shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination
is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (A) exercise of the remaining,
unexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates and (B) exercise or conversion of
the unexercised or unconverted portion of any other securities of the Company (including, without limitation, any other Common
Stock equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially
owned by the Holder or any of its affiliates. Except as set forth in the preceding sentence, for purposes of this Section 1.7,
beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the
Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the
Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation
contained in this Section 1.7 applies, the determination of whether this Warrant is exercisable (in relation to other securities
owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion
of the Holder, and the submission of a Subscription Form shall be deemed to be the Holder’s determination of whether this
Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion
of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation
to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above
shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
For purposes of this Section 1.7, in determining the number of outstanding shares of Common Stock, a Holder may rely on the number
of outstanding shares of Common Stock as reflected in (x) the Company’s most recent periodic or annual report, as the case
may be, (y) a more recent public announcement by the Company or (z) a more recent notice by the Company or the Company’s
transfer agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the
Company shall confirm to the Holder within two business days orally and in writing the number of shares of Common Stock then outstanding.
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 9.99% 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 1.7, 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 1.7 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 and shall
only apply to such Holder and no other Holder. The provisions of this paragraph shall be construed and implemented in a manner
otherwise than in strict conformity with the terms of this Section 1.7 to correct this paragraph (or any portion hereof)
to the extent defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes
or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph
shall apply to a successor holder of this Warrant.

 

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2.             Exercise in
the Absence of Registration Statement. If, at any time while this Warrant is outstanding, the Company shall fail to maintain
an effective registration statement covering all of the shares of Common Stock underlying this Warrant (the “Warrant Shares”)
for resale by the Holder, and the Holder has not declined to be included as a selling shareholder in such registration statement,
then and only then the Holder may exercise this Warrant on a "cashless" basis as follows:

 

(a)             Payment upon exercise
may be made at the option of the Holder either in (i) cash, wire transfer or by certified or official bank check payable to the
order of the Company equal to the applicable aggregate Purchase Price, (ii) by delivery of Common Stock issuable upon exercise
of the Warrant in accordance with Section (b) below or (iii) by a combination of any of the foregoing methods, for
the number of Common Stock specified in such form (as such exercise number shall be adjusted to reflect any adjustment in the total
number of shares of Common Stock issuable to the holder per the terms of this Warrant) and the Holder shall thereupon be entitled
to receive the number of duly authorized, validly issued, fully-paid and non-assessable shares of Common Stock determined as provided
herein.

 

(b)             If the Fair Market
Value of one share of Common Stock is greater than the Purchase Price (at the date of calculation as set forth below), in lieu
of exercising this Warrant for cash, the holder may elect to receive shares equal to the value (as determined below) of this Warrant
(or the portion thereof being cancelled) by delivery of a properly endorsed Subscription Form delivered to the Company, in which
event the Company shall issue to the Holder a number of shares of Common Stock computed using the following formula:

 

X=Y (A-B)

A

 

	 	WhereX=	the number of shares of
Common Stock to be issued to the Holder
	 	 	 
		Y=	the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the
Warrant is being exercised, the portion of the Warrant being exercised (at the date of such calculation)
	 	 	 

		A=	Fair Market Value
	 	 	 

		B=	Purchase Price (as adjusted to the date of such calculation)

 

For purposes of Rule
144 promulgated under the 1933 Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise
transaction in the manner described above shall be deemed to have been acquired by the Holder, and the holding period for the Warrant
Shares shall be deemed to have commenced, on the date this Warrant was originally issued pursuant to the Subscription Agreement.

 

For purposes of this
Warrant, the "Fair Market Value" of a share of Common Stock as of a particular date (the "Determination Date")
shall mean:

 

(a)             If the Company's
Common Stock is traded on an exchange or is quoted on the NASDAQ Global Market, NASDAQ Global Select Market, the NASDAQ Capital
Market, the New York Stock Exchange or the American Stock Exchange, LLC, then the average of the closing
sale prices of the Common Stock for the five (5) Trading Days immediately prior to (but not including) the Determination
Date;

 

(b)             If the Company's
Common Stock is not traded on an exchange or on the NASDAQ Global Market, NASDAQ Global Select Market, the NASDAQ Capital Market,
the New York Stock Exchange or the American Stock Exchange, Inc., but is traded on the OTC Bulletin Board or in the over-the-counter
market or Pink Sheets, then the average of the closing bid and ask prices reported for the five (5)
Trading Days immediately prior to (but not including) the Determination Date;

 

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(c)             Except as provided
in clause (d) below and Section 3.1, if the Company's Common Stock is not publicly traded, then as the Holder and the
Company agree, or in the absence of such an agreement, by arbitration in accordance with the rules then standing of the American
Arbitration Association, before a single arbitrator to be chosen from a panel of persons qualified by education and training to
pass on the matter to be decided; or

 

(d)             If the Determination
Date is the date of a liquidation, dissolution or winding up, or any event deemed to be a liquidation, dissolution or winding up
pursuant to the Company's charter, then all amounts to be payable per share to holders of the Common Stock pursuant to the charter
in the event of such liquidation, dissolution or winding up, plus all other amounts to be payable per share in respect of the Common
Stock in liquidation under the charter, assuming for the purposes of this clause (d) that all of the shares of Common Stock
then issuable upon exercise of all of the Warrants are outstanding at the Determination Date.

 

3.             Adjustment
for Reorganization, Consolidation, Merger, etc.

 

3.1.             Reorganization,
Consolidation, Merger, etc. In case at any time or from time to time the Company shall (a) effect a reorganization, (b) consolidate
with or merge into any other person or (c) transfer all or substantially all of its properties or assets to any other person
under any plan or arrangement contemplating the dissolution of the Company, then, in each such case, as a condition to the consummation
of such a transaction, proper and adequate provision shall be made by the Company whereby the Holder of this Warrant, on the exercise
hereof as provided in Section 1, at any time after the consummation of such reorganization, consolidation or merger or the
effective date of such dissolution, as the case may be, shall receive, in lieu of the Common Stock (or Other Securities) issuable
on such exercise prior to such consummation or such effective date, the stock and other securities and property (including cash)
to which such Holder would have been entitled upon such consummation or in connection with such dissolution, as the case may be,
if such Holder had so exercised this Warrant, immediately prior thereto, all subject to further adjustment thereafter as provided
in Section 4.

 

3.2.             Dissolution.
In the event of any dissolution of the Company following the transfer of all or substantially all of its properties or assets,
the Company, prior to such dissolution, shall at its expense deliver or cause to be delivered the stock and other securities and
property (including cash, where applicable) receivable by the Holder of the Warrants after the effective date of such dissolution
pursuant to this Section 3 to a bank or trust company (a “Trustee”) having its principal office in Los Angeles,
California, as trustee for the Holder of the Warrants.

 

3.3.             Continuation
of Terms. Upon any reorganization, consolidation, merger or transfer (and any dissolution following any transfer) referred
to in this Section 3, this Warrant shall continue in full force and effect and the terms hereof shall be applicable to the
Other Securities and property receivable on the exercise of this Warrant after the consummation of such reorganization, consolidation
or merger or the effective date of dissolution following any such transfer, as the case may be, and shall be binding upon the
issuer of any Other Securities, including, in the case of any such transfer, the person acquiring all or substantially all of
the properties or assets of the Company, whether or not such person shall have expressly assumed the terms of this Warrant as
provided in Section 4. In the event this Warrant does not continue in full force and effect after the consummation of the
transaction described in this Section 3, then only in such event will the Company’s securities and property (including
cash, where applicable) receivable by the Holder of the Warrants be delivered to the Trustee as contemplated by Section 3.2.

 

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4.             Extraordinary
Events Regarding Common Stock. In the event that the Company shall (a) issue additional shares of the Common Stock as
a dividend or other distribution on outstanding Common Stock, (b) subdivide its outstanding shares of Common Stock, or (c) combine
its outstanding shares of the Common Stock into a smaller number of shares of the Common Stock, then, in each such event, the Purchase
Price shall be adjusted, simultaneously with the happening of such event, by multiplying the then Purchase Price by a fraction,
the numerator of which shall be the number of shares of Common Stock outstanding immediately prior to such event and the denominator
of which shall be the number of shares of Common Stock outstanding immediately after such event, and the product so obtained shall
thereafter be the Purchase Price then in effect. The Purchase Price, as so adjusted, shall be readjusted in the same manner upon
the happening of any successive event or events described in this Section 4. The number of shares of Common Stock that the
Holder of this Warrant thereafter shall be entitled to receive, on the exercise hereof as provided in Section 1, shall be
adjusted to a number determined by multiplying the number of shares of Common Stock that would otherwise (but for the provisions
of this Section 4) be issuable on such exercise by a fraction of which (a) the numerator is the Purchase Price that would
otherwise (but for the provisions of this Section 4) be in effect, and (b) the denominator is the Purchase Price in effect
on the date of such exercise.

 

5.             Certificate as
to Adjustments. In each case of any adjustment or readjustment in the shares of Common Stock (or Other Securities) issuable
on the exercise of the Warrants, the Company at its expense will promptly cause its Chief Financial Officer or other appropriate
designee to compute such adjustment or readjustment in accordance with the terms of the Warrant and prepare a certificate setting
forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based, including
a statement of (a) the consideration received or receivable by the Company for any additional shares of Common Stock (or
Other Securities) issued or sold or deemed to have been issued or sold, (b) the number of shares of Common Stock (or Other
Securities) outstanding or deemed to be outstanding, and (c) the Purchase Price and the number of shares of Common Stock
to be received upon exercise of this Warrant, in effect immediately prior to such adjustment or readjustment and as adjusted or
readjusted as provided in this Warrant. The Company will forthwith mail a copy of each such certificate to the Holder of the Warrant
and any Warrant Agent of the Company (appointed pursuant to Section 10 hereof).

 

6.             No Registration
Rights. The Holder of this Warrant has not been granted any registration rights by the Company.

 

7.             Reservation of
Stock, etc. Issuable on Exercise of Warrant; Financial Statements. The Company will at all times reserve and keep available,
solely for issuance and delivery on the exercise of the Warrants, all shares of Common Stock (or Other Securities) from time to
time issuable on the exercise of the Warrant. This Warrant entitles the Holder hereof to receive copies of all financial and other
information distributed or required to be distributed to the holders of the Company’s Common Stock.

 

8.             Assignment; Exchange
of Warrant. Subject to compliance with applicable securities laws, this Warrant, and the rights evidenced hereby, may be transferred
by any registered holder hereof (a “Transferor”). On the surrender for exchange of this Warrant, with the Transferor’s
endorsement in the form of Exhibit B attached hereto (the “Transferor Endorsement Form”) and together with an
opinion of counsel reasonably satisfactory to the Company that the transfer of this Warrant will be in compliance with applicable
securities laws, the Company at its expense, but with payment by the Transferor of any applicable transfer taxes, will issue and
deliver to or on the order of the Transferor thereof a new Warrant or Warrants of like tenor, in the name of the Transferor and/or
the transferee(s) specified in such Transferor Endorsement Form (each a “Transferee”), calling in the aggregate on
the face or faces thereof for the number of shares of Common Stock called for on the face or faces of the Warrant so surrendered
by the Transferor. No such transfers shall result in a public distribution of the Warrant.

 

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9.             Replacement of
Warrant. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this
Warrant and, in the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity agreement or security
reasonably satisfactory in form and amount to the Company or, in the case of any such mutilation, on surrender and cancellation
of this Warrant, the Company at its expense, twice only, will execute and deliver, in lieu thereof, a new Warrant of like tenor.

 

10.           Warrant Agent.
The Company may, by written notice to the Holder of the Warrant, appoint an agent (a “Warrant Agent”) for the purpose
of issuing Common Stock (or Other Securities) on the exercise of this Warrant pursuant to Section 1, exchanging this Warrant
pursuant to Section 8, and replacing this Warrant pursuant to Section 9, or any of the foregoing, and thereafter any
such issuance, exchange or replacement, as the case may be, shall be made at such office by such Warrant Agent.

 

11.           Transfer
on the Company’s Books. Until this Warrant is transferred on the books of the Company, the Company may treat the registered
holder hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.

 

12.           Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile
machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice
is to be received), or the first business day following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.
The addresses for such communications shall be: (i) if to the Company to: Aethlon Medical, Inc., 8910
University Center Lane, Suite 660, San Diego, California 92122, Fax (858) 332-1739, with a copy by facsimile only to: Law
Office of Jennifer A. Post, Attn: Jennifer A. Post, Esq., Fax (800) 783-2983, (ii) if to the Holder to: __________________________.

 

13.           Miscellaneous.
This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination is sought. This Warrant shall be construed and
enforced in accordance with and governed by the laws of the State of California. Any dispute relating to this Warrant shall be
adjudicated in the City of San Diego in the State of California. The headings in this Warrant are for purposes of reference only
and shall not limit or otherwise affect any of the terms hereof. The invalidity or unenforceability of any provision hereof shall
in no way affect the validity or enforceability of any other provision.

 

 

REMAINDER OF PAGE INTENTIALLY
LEFT BLANK

 

 

 

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IN WITNESS WHEREOF,
the Company has executed this Warrant as of the date first written above.

 

	 	
        AETHLON MEDICAL, INC.

         

         

         

        By: ____________________________

        Name:James B. Frakes

        Title:Chief Financial Officer

	
        Witness:

 

_________________________________
	 

 

 

 

 

 

 

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Exhibit A

 

FORM OF SUBSCRIPTION

(to be signed only on exercise of Warrant)

 

TO: AETHLON MEDICAL, INC.

 

The undersigned, pursuant to the provisions
set forth in the attached Warrant (No.____), hereby irrevocably elects to purchase (check applicable box):

 

	___	________ shares of the Common Stock covered by such Warrant; or
	 	 
	___	the maximum number of shares of Common Stock covered by such Warrant pursuant to the cashless exercise procedure set forth in Section 2 of the Warrant.

 

The undersigned herewith makes payment
of the full purchase price for such shares at the price per share provided for in such Warrant, which is $___________. Such payment
takes the form of (check applicable box or boxes):

 

	___	$__________ in lawful money of the United States; and/or
	 	 
	___	the cancellation of such portion of the attached Warrant as is exercisable for a total of _______ shares of Common Stock (using a Fair Market Value of $_______ per share for purposes of this calculation); and/or
	 	 
	___	the cancellation of such number of shares of Common Stock as is necessary, in accordance with the formula set forth in Section 2 of the Warrant, to exercise this Warrant with respect to the maximum number of shares of Common Stock purchasable pursuant to the cashless exercise procedure set forth in Section 2.

 

After application of the cashless exercise
feature as described above, _____________ shares of Common Stock are required to be delivered pursuant to the instructions below.

 

The undersigned requests that the certificates
for such shares be issued in the name of, and delivered to __________________________________________ whose address is _____________________________________________________.

 

The undersigned represents and warrants
that all offers and sales by the undersigned of the securities issuable upon exercise of the within Warrant shall be made pursuant
to registration of the Common Stock under the Securities Act of 1933, as amended (the "Securities Act"), or pursuant
to an exemption from registration under the Securities Act.

 

	Dated:___________________	 
	
         

         

        Signature:_______________________________

        (Signature must conform to name of holder as specified on the
        face of the Warrant)

         

        Address:_______________________________

         

        _______________________________

         
	 

 

  

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Exhibit B

  

FORM OF TRANSFEROR ENDORSEMENT

(To be signed only on transfer of Warrant)

 

For value received, the
undersigned hereby sells, assigns, and transfers unto the person(s) named below under the heading “Transferees” the
right represented by the within Warrant to purchase the percentage and number of shares of Common Stock of AETHLON MEDICAL, INC.
to which the within Warrant relates specified under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s) and appoints each such person Attorney to transfer its respective right on
the books of AETHLON MEDICAL, INC. with full power of substitution in the premises.

 

	Transferees	Percentage
    Transferred	Number
    Transferred
	 	 	 
	 	 	 
	 	 	 

 

 

	
        Dated: ______________, ___________

         

         

         

        Signed in the presence of:

         

________________________________ 

        (Name)

         

         

        ACCEPTED AND AGREED:

        [TRANSFEREE]

         

        ________________________________  

        (Name)

         
	
        

        ________________________________________________

(Signature must conform to name of holder as specified on the
face of the warrant)

 

 

________________________________________________ 

________________________________________________ 

        (address)

 

________________________________________________ 

________________________________________________ 

        (address)

         

 

 

10EXHIBIT 10.1

 

UNIT SUBSCRIPTION AGREEMENT

 

The undersigned (hereinafter
the “Subscriber”) hereby confirms the Subscriber’s subscription for the purchase of Units consisting of
(i) one share of Common Stock, par value $0.001 per share (the “Common Stock”), of AETHLON MEDICAL, INC.,
a Nevada corporation (the “Company”), and (ii) a seven-year warrant to purchase such number of shares of Common
Stock of the Company as shall equal (a) fifty percent of the Subscription Amount set forth on the signature page hereto divided
by (b) $0.08 (the "Warrant Shares") at an exercise price of $0.12 per Warrant Share, in the form attached
hereto as Exhibit A (each, a “Warrant” and collectively, the “Warrants”) on the terms
described below.

 

The Units are sometimes
referred to herein as the “Securities.” The Board of Directors of the Company has authorized the issuance and
sale of up to $5,000,000 of Units to be sold on or before December 31, 2012.

 

In connection with
this subscription, the Subscriber and the Company agree as follows:

 

A.            Subscription of the Subscriber.

 

1.            Purchase
of Units. The Subscriber hereby irrevocably agrees, represents and warrants with, to and for the benefit of the Company,
that the Subscriber is executing this Agreement in connection with the subscription by the Subscriber for Units of the Company,
resulting in the aggregate purchase price set forth on the Subscriber’s signature page hereto based upon the Issue Price
(as defined herein). The Subscriber understands that the Company is relying upon the accuracy and completeness of the information
contained herein in complying with its obligations under federal and state securities and other applicable laws. Subject to the
terms and conditions of this Agreement, upon execution and delivery hereof by the Subscriber, the Subscriber hereby agrees to
purchase the Units pursuant to the transaction hereof, and against concurrent delivery of the purchase price for such shares.
The date upon which the final subscription is accepted by the Company and the full Issue Price has been tendered to the Company,
shall be known as the “Closing Date.”

 

2.            Offering.
This offering of the Units (the “Offering”) is being made to a limited group of investors, all of whom shall
represent to the Company pursuant to this Agreement that they are “accredited investors,” as that term is defined
in Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”) or who have
otherwise been qualified as investors by the Company. All of the Units offered hereby are being sold by the Company. The Company
is offering the Units for the consideration set forth herein. The Company may sell less than all of the Units offered hereby,
and shall be entitled to accept subscriptions and receive the Issue Price for each subscription prior to the entire Offering being
subscribed for. The Offering is being made on a “best efforts” basis. The minimum subscription amount per investor
is $10,000. The maximum offering by the Company is $5,000,000 worth of Units.

 

3.            Issue Price. The “Issue
Price” of the Units shall be equal to 80% of the average of the closing prices of the Company’s Common Stock for
the five day period immediately preceding each funding under this Unit Subscription Agreement (for example, if the average of the
five trailing closing prices is $0.10, then the Issue Price would be $0.08). The number of Warrant Shares will be based
upon the same Issue Price formula with the exercise price being set at 120% of the average of the closing prices over the same
five day period immediately preceding the funding. However, the Company reserves the right to not accept subscriptions if it deems
the Issue Price on those subscriptions to be unacceptable based on the price of the Company’s Common Stock at that time.

 

    	1

    	 

    
 

B.            Representations and Warranties of the Subscriber. The Subscriber hereby represents
and warrants to the Company as of the date hereof:

 

1.            Place
of Business. The principal place of business address (or residence) set forth below is the Subscriber’s true
and correct principal place of business and is the only jurisdiction in which an offer to sell the Units was made to the Subscriber,
and the Subscriber has no present intention of moving the Subscriber’s principal place of business to or of becoming a resident
of any other state or jurisdiction.

 

2.            Sale or Transfer of the Common Stock . The Subscriber understands that the
Common Stock and the shares underlying the Warrants have not been registered under the Securities Act, or under the laws of any
other jurisdiction. The Subscriber understands and agrees that transfer or sale of the Common Stock and the shares underlying the
Warrants may be restricted or prohibited unless they are subsequently registered under the Securities Act and, where required,
under the laws of other jurisdictions or an exemption from registration is available. The Subscriber will not offer, sell, transfer
or assign the Subscriber’s Common Stock or any interest therein and the shares underlying the Warrants in contravention of
this Agreement, the Securities Act or any state or federal law. The Subscriber understands and acknowledges that, because of the
substantial restrictions on the transferability of the Common Stock and the shares underlying the Warrants, it may not be possible
for the Subscriber to liquidate the Subscriber's investment in the Company readily, even in the case of an emergency.

 

3.            Representations of Investment Experience and Ability to Bear Risk. The Subscriber acknowledges that the Offering
has not been registered with the Securities and Exchange Commission (or any other securities commission
or authority of any other jurisdiction) because the Company is relying on an exemption from registration under Section 4(2)
of the Securities Act. Own Advice. In connection with the Subscriber’s investment
in the Company, the Subscriber has carefully considered and has discussed, to the extent the Subscriber believes such discussion
necessary, with the Subscriber’s professional legal, tax and financial advisers (the “Investment Advisors”)
the suitability of an investment in the Units for the Subscriber’s particular tax and financial situation and the Subscriber
has determined that the Units are a suitable investment for the Subscriber.

 

4.            Company History; Risks. The Subscriber represents and warrants that the Subscriber
is aware (i) that the Company has limited or no revenues; (ii) that the Units involve a substantial degree of risk of
loss of the Subscriber’s entire investment and that there is no assurance of any income from the Subscriber's investment;
and (iii) that any federal and/or state income tax benefits that may be available to the Subscriber, if any, may be lost through
the adoption of new laws or regulations, to changes to existing laws and regulations and to changes in the interpretation of existing
laws and regulations. The Subscriber further represents that the Subscriber is relying solely on the Subscriber’s own conclusions
or the advice of the Subscriber’s Investment Advisors with respect to tax aspects of any investment in the Units. The Subscriber
further represents that it has read and reviewed the Company’s filings made with the Securities and Exchange Commission.

 

5.            Inquiries. The Subscriber and its Investment Advisors have been given access
to, and prior to the execution of this Agreement, have been provided with an opportunity to ask questions of, and receive answers
from, the Company’s officers concerning the Company and the terms and conditions of the Offering and the Units, and to obtain
any other information that the Subscriber and the Subscriber’s Investment Advisors required with respect to the Company and
an investment in the Company in order to evaluate such investment and verify the accuracy of all information furnished to the Subscriber
and its Investment Advisors regarding the Company. All such questions, if asked, were answered satisfactorily and all information
or documents provided were found to be satisfactory. Neither the Subscriber nor its Investment Advisors have been furnished any
offering literature on which they have relied other this Agreement, and the Subscriber and its Investment Advisors have relied
only on this Agreement. At no time was the Subscriber presented with or solicited by any leaflet, public promotion meeting, newspaper
or magazine article, radio or television advertisement or any other form of general advertising or general solicitation.

 

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6.            Authority. The Subscriber is authorized and has full right and power to subscribe for the Units and to perform the
Subscriber’s obligations pursuant to the provisions of this Agreement; the person signing this Agreement and any other instrument
executed and delivered herewith on behalf of the Subscriber has been duly authorized by the Subscriber and has full power and authority
to do so. If the Subscriber is a corporation, partnership, unincorporated association or other entity, the person signing this
agreement has the legal capacity to authorize, deliver and be bound by this Agreement and to take all actions required pursuant
hereto and further certifies that all necessary approvals of directors, shareholders or otherwise have been given and obtained;
and if the Subscriber is an individual, the Subscriber is of the full age of majority in the jurisdiction in which the Subscriber
is resident and is legally competent to execute, deliver and be bound by this Agreement and take all action pursuant hereto.

 

7.            No Default. The execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby and thereby will not conflict with, or result in any violation of or default pursuant to,
any provision of any governing instrument applicable to the Subscriber, or any agreement or other instrument to which the Subscriber
is a party or by which the Subscriber or any of the Subscriber’s properties are bound or any permit, franchise, judgment,
decree, statute, rule or regulation applicable to the Subscriber or any of the Subscriber’s business or properties.

 

8.            ERISA. If the Subscriber is an employee benefit plan subject to ERISA, then
the Subscriber acknowledges that the Subscriber has been informed of and understands the operations and business of the Company,
and represents that the Subscriber’s investment in the Company (i) is permissible under the documents and instruments governing
such plan; (ii) satisfies the diversification requirements of ERISA; (iii) is prudent considering all the facts and circumstances;
and (iv) is not a “prohibited transaction” within the meaning of Section 406 of ERISA.

 

9.            Purchase Entirely For Own Account. This Agreement is made with the Subscriber
in reliance upon the Subscriber’s representations to the Company, which by the Subscriber’s execution of this Agreement,
the Subscriber hereby confirms, that the Common Stock and the shares underlying the Warrants issuable to the Subscriber will be
acquired for investment for the Subscriber’s own account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, and that the Subscriber has no present intention of selling, granting any participation in, or
otherwise distributing the same. The Subscriber represents and warrants that the Subscriber has no contract, understanding, agreement
or arrangement with any person to sell or transfer or pledge to such person or anyone else any of the Common Stock or the shares
underlying the Warrants for which the Subscriber hereby subscribes (in whole or in part) or any interest therein; and the Subscriber
represents and warrants that the Subscriber has no present plans to enter into any such contract, undertaking, agreement or arrangement.

 

The Subscriber represents
and warrants that the funds representing the aggregate subscription price that will be advanced by the Subscriber hereunder will
not represent proceeds of crime and the Subscriber acknowledges that the Company may in the future be required by law to disclose
the Subscriber’s name and other information relating to this Subscription Agreement and the Subscriber’s subscription
hereunder, on a confidential basis, and (i) to the best of the Subscriber’s knowledge, none of the subscription funds to
be provided by the Subscriber (a) have been or will be derived from or related to any activity that is deemed criminal under the
laws of the United States of America, or any other jurisdiction, or (b) are being tendered on behalf of a person or entity who
has not been identified to the Subscriber, and (ii) the Subscriber shall promptly notify the Company if the Subscriber discovers
that any of such representations ceases to be true, and shall provide the Company with appropriate information in connection therewith.

 

    	3

    	 

    
 

The Subscriber represents
and warrants that the current structure of this transaction and all transactions and activities contemplated hereunder is not a
plan or scheme to evade the registration provisions of the Securities Act.

 

The Subscriber acknowledges that:

 

		(i)	no securities commission or similar regulatory authority has reviewed or passed on the merits of
the Units; and

 

		(ii)	there is no government or other insurance covering the Units; and

 

		(iii)	there are risks associated with the purchase of the Units; and

 

		(iv)	there are restrictions on the Subscriber’s ability to resell the Common Stock and the shares
underlying the Warrants and it is the responsibility of the Subscriber to find out what those restrictions are and to comply with
them before selling the Common Stock or the shares underlying the Warrants.

 

The Subscriber represents
and warrants that the Subscriber has not received nor does the Subscriber expect to receive any financial assistance from the Company,
directly or indirectly, in respect of the Subscriber’s purchase of the Units.

 

The Subscriber represents
and warrants that neither the Company, nor any of its directors, officers, employees or representatives, have made any representations
(oral or written) to the Subscriber regarding the future value of the Common Stock.

 

The Subscriber acknowledges
that (i) the Company may complete secured or unsecured debt financings or equity financings in the future in order to develop the
Company’s business and to fund its ongoing development, (ii) there is no assurance that such financings will be available
and, if available, on reasonable terms, (iii) any such future financings may have a dilutive effect on current security holders,
including the Subscriber, and (iv) if such future financings are not available, the Company may be unable to fund its ongoing development
and the lack of capital resources may result in the failure of its business.

 

The Subscriber will not, directly or indirectly,
except in compliance with (that is, only to the extent required to comply with) the Securities Act and such other securities or
“Blue Sky” laws as may be applicable, (i) offer, sell, pledge, transfer or otherwise dispose of (or solicit
any offers to buy, purchase or otherwise acquire or take a pledge of) any of the Securities, (ii) engage in any short sale that
results in a disposition of any of the Securities by the Subscriber, or (iii) hedge the economic risk of the Subscriber’s
investment in the Securities.

 

C.             Representations
and Warranties of the Company.

 

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 all requisite corporate power
and corporate authority to carry on its business as now conducted and as proposed to be conducted. The Company is duly qualified
to transact business and is in good standing in each jurisdiction in which such qualification is required, except where the failure
to be so qualified would not have a material adverse effect on the Company.

 

    	4

    	 

    
 

2.            Capitalization.
As of August 29, 2012, the authorized capital stock of the Company consists of 500,000,000 shares of Common Stock, of which
(i) 143,249,573 shares are issued and outstanding, and (ii) 151,189,735 shares are reserved for issuance upon exercise of outstanding
warrants, options and other convertible securities. All such issued and outstanding shares have been duly authorized and validly
issued and have been offered, issued, sold, and delivered by the Company in compliance with applicable federal and state securities
laws. 

 

3.            Authorization.
The Company has all requisite corporate power to execute, deliver and perform its obligations under this Agreement and
all other agreements contemplated hereby and thereby and to issue the Common Stock and the shares underlying the Warrants in accordance
with the terms hereof. All corporate action on the part of the Company and its officers, directors and shareholders necessary
for the authorization, execution and delivery of this Agreement and all other agreements and obligations contemplated hereby and
thereby, the performance of all obligations of the Company hereunder and thereunder, and the authorization, issuance (or reservation
for issuance), sale and delivery of the Common Stock to be issued hereunder has been taken. This Agreement constitutes valid and
legally binding obligation of the Company, enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights
generally, (ii) as limited by general principles of equity, including concepts of materiality, reasonableness, good faith and
fair dealing and by the possible unavailability of specific performance, injunctive relief or other equitable remedies.

 

4.            No
Violation. The Company’s execution, delivery and performance of this Agreement and all other agreements contemplated
hereby and thereby and the consummation of the transactions contemplated hereby and thereby will not with or without the giving
of notice or the lapse of time or both (A) violate any provision of law, statute, rule or regulation to which the Company is subject,
(B) violate any order, judgment or decree applicable to it, or (C) conflict with or result in a breach or default under any term
or condition of its applicable governing instruments or any agreement or other instrument to which it is a party or by which it
is bound.

 

5.            Valid
Issuance of Common Stock and Warrants. The Common Stock and Warrants being issued hereunder, when issued, sold and
delivered in accordance with the terms of this Agreement for the consideration expressed herein, will be duly and validly issued,
fully paid and non-assessable and will be free of preemptive rights and restrictions on transfer other than restrictions on transfer
under this Agreement and applicable state and federal securities laws. Assuming the truth and accuracy of the representations
and warranties of the Subscriber for the Company’s capital stock under this Agreement, the issuance of the Common Stock
hereunder shall be exempt from registration under the Securities Act and any applicable state securities laws.

 

6.            Governmental
Consents. No consent, approval, order or authorization of, or registration, qualification, designation, declaration
or filing with, any federal, state or local governmental authority on the part of the Company is required in connection with the
valid execution of this Agreement and the consummation of the transactions contemplated by this Agreement except for filings pursuant
to applicable state and federal securities laws which allow filings to be made following the Closing but in no event later than
15 days after the consummation of the transactions contemplated hereby. The Company is in compliance, in all material respects,
with the USA Patriot Act.

 

7.            Use
of Proceeds. The proceeds from the sale of the Units will be made available for general working capital purposes.

 

    	5

    	 

    
 

D.            Legend.
The certificates representing the Common Stock and Warrants issued by the Company hereunder shall bear the following (or similar)
legend:

 

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES
LAWS OF ANY STATE OR OTHER JURISDICTION AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND SUCH LAWS. THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED UNLESS PURSUANT TO (i) AN EFFECTIVE
REGISTRATION STATEMENT OR (ii) AN EXEMPTION FROM APPLICABLE SECURITIES LAWS, IN WHICH CASE THE COMPANY MAY REQUIRE AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED.

 

E.            Indemnification.
The Subscriber agrees to indemnify and hold harmless the Company and its officers, managers, members, employees, agents and affiliates
against any and all loss, liability, claim, damage and expense whatsoever (including without limitation any and all expenses reasonably
incurred in investigating, preparing or defending against any litigation commenced or threatened or any claim whatsoever) arising
out of or based upon any false representation or warranty or breach or failure by the Subscriber to comply with any covenant agreement
made by the Subscriber herein. The Company agrees to indemnify and hold harmless the Subscriber and its officers, managers, members,
employees, agents and affiliates against any and all loss, liability, claim, damage and expense whatsoever (including without
limitation any and all expenses reasonably incurred in investigating, preparing or defending against any litigation commenced
or threatened or any claim whatsoever) arising out of or based upon any false representation or warranty or breach or failure
to comply with any covenant agreement made by the Company herein.

 

F.            Modification.
Neither this Agreement nor any provision hereof shall be waived, modified, discharged or terminated except by an instrument in
writing signed by the party against whom any such waiver, modification, discharge or termination is sought.

 

G.            Assignability.
This Agreement and the rights and obligations hereunder are not transferable or assignable by the Subscriber.

 

H.            Applicable
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, without
regard to principles of conflicts of law.

 

I.            Survival of Representations and Warranties. All representations and warranties
made by the Subscriber in this Agreement shall survive the execution and delivery of this Agreement, as well as any investigation
at any time made by or on behalf of the Company and the issue and sale of the Units.

 

J.            Reliance. The Subscriber understands and acknowledges that the Subscriber’s
representations, warranties, acknowledgements and agreements in this Agreement will be relied upon by the Company in determining
the Subscriber’s suitability as a purchaser of Units.

 

K.            Further Assurances. The Subscriber agrees to provide, if requested, any additional
information that may be requested or required to determine the Subscriber’s eligibility to purchase the Units.

 

L.            Entire Agreement. This Agreement constitutes the full and entire understanding
and agreement between the parties with regard to the subject matter hereof and no party shall be liable or bound to any other in
any manner by any representations, warranties, covenants and agreements except as specifically set forth herein.

 

    	6

    	 

    
 

M.            Severability. In the event one or more of the provisions of this Agreement
should be held, for any reason, to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability
shall not affect any other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been contained herein.

 

 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

 

 

 

 

 

 

 

 

 

 

 

 

 

    	7

    	 

    
 

IN WITNESS WHEREOF,
the undersigned has executed this Agreement as of the date set forth on this signature page.

 

	Number of shares of Units Subscribed for:	__________
	 	 
	Number of shares of Common Stock:	__________
	 	 
	Number of shares underlying Warrants:	__________
	 	 
	Aggregate Purchase Price:	$_________
	 	 

 

	 	 	 	 
		 		 
	
        Print Name of Subscriber (Individual, 

        Company, Limited Liability Company, 

        Corporation or Trust)
	 	Print Name of Authorized Representative	 
	 	 	 	 
	By:	 		 
	
        Signature of Subscriber or

        Authorized Representative
	 	Capacity of Authorized Representative	 
	 	 	 	 
	Date:____________	 	 	 
	 	 	 	 
	Address: __________________________________	 
	 	 	 	 
	Social Security Number or U.S. Tax Identification No: ____________	 

 

 

	
        SUBSCRIPTION ACCEPTED:

        AETHLON MEDICAL, INC., a Nevada corporation

         

        By:___________________________

      Name:James B. Frakes

      Title:Chief Financial Officer
	
         

         

         

         

         

        Date: ___________

 

    	8

    	 

    
 

EXHIBIT A

 

 

Form of Warrant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A-1

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