Document:

Exhibit 10.78

 

THIS NOTE AND THE SHARES OF
COMMON STOCK ISSUABLE UPON CONVERSION OF THE NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
APPLICABLE STATE SECURITIES LAWS. NEITHER THE NOTE NOR SUCH SHARES OF COMMON STOCK MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED,
PLEDGED OR HYPOTHECATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND UNDER ANY APPLICABLE STATE SECURITIES
LAWS, OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY, THAT AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

 

AETHLON MEDICAL, INC.

 

10% CONVERTIBLE NOTE

 

$____________

 

FOR VALUE RECEIVED, Aethlon Medical, Inc., a Nevada corporation
(the "Company"), promises to pay to ______________________, whose address is _________________________, or registered
assigns (the "Holder"), the sum of _________________________ ($___________) in lawful money of the United States of America
on or before the Maturity Date as defined herein, with all Interest thereon as defined and specified herein.

 

1.       Interest.
Unless there shall be an Event of Default, this Note shall bear interest ("Interest") equal to ten percent (10%) per
annum on the unpaid principal balance, computed on a three hundred sixty (360)-day year, during the term of the Note. The Company
shall pay all Interest on or before the Maturity Date. In no event shall the rate of Interest payable on this Note exceed the maximum
rate of Interest permitted to be charged under applicable law. On and after an Event of Default, this Note shall bear Interest
equal to twelve percent (12%) per annum on the unpaid principal balance, computed on a three hundred sixty (360)-day year.

 

2.       Payments.
All payments under this Note shall first be credited against the payment of accrued and unpaid Interest, if any, and the remainder
shall be credited against principal. All payments due hereunder shall be payable in legal tender of the United States of America,
and in same day funds delivered to Holder by cashier's check, certified check, bank wire transfer or any other means of guaranteed
funds to the mailing address provided below, or at such other place as the Holder shall designate in writing for such purpose from
time to time. If a payment under this Note otherwise would become due and payable on a Saturday, Sunday or legal holiday (any other
day being a "Business Day"), the due date of the payment shall be extended to the next succeeding Business Day, and Interest,
if any, shall be payable thereon during such extension.

 

3.       Pre-Payments
and Maturity Date. This Note shall be due and payable in full, including all accrued Interest thereon, on October 9, 2013 (the
"Maturity Date"). At any time on or prior to the Maturity Date, the Company shall have the right to prepay this Note,
in whole or in part, provided that on such prepayment date, the Company will pay in respect of the redeemed Note cash equal to
the face amount plus accrued Interest on the Note (or portion thereof) redeemed. At any time after the Maturity Date, the Company
shall have the right to repay this Note subject to the right of the Holder to convert in advance of such repayment date. The Company
may prepay this Note at any time after issuance without penalty.

 

    	 

    	 

    

4.       Conversion
of Note Upon an Event of Default; Issuance Of Purchase Warrant.

 

4.1       Conversion
of Note/Conversion Price. At any time after the Maturity Date, any unpaid portion of the principal and Interest due and payable
under this Note shall be convertible in whole or in part, at the option of the Holder, into shares of the Company's Common Stock
(the "Common Stock") at a price per share equal to 80% of the closing bid price of the Common Stock of the Company on
the trading day immediately prior to the date of issuance of this Note (the "Conversion Price"). For clarity, the Conversion
Price of this Note is $0.088 per share. No fractional shares will be issued. In lieu thereof, the Company will pay cash for fractional
share amounts equal to the fair market value of the Common Stock as quoted as the closing bid price of the Common Stock on the
date of conversion.

 

4.2       Adjustment
Based Upon Stock Dividends, Combination of Shares or Recapitalization. The Conversion Price shall be adjusted in the event
that the Company shall at any time (i) pay a stock dividend on the Common Stock; (ii) subdivide its outstanding Common Stock into
a greater number of shares; (iii) combine its outstanding Common Stock into a smaller number of shares; (iv) issue by reclassification
of its Common Stock any other special capital stock of the Company; or (v) distribute to all holders of Common Stock evidences
of indebtedness or assets (excluding cash dividends) or rights or warrants to subscribe for Common Stock (other than those mentioned
above). Upon the occurrence of an event requiring adjustment of the Conversion Price, and thereafter, the Holder, upon surrender
of this Note for conversion, shall be entitled to receive the number of shares of Common Stock or other capital stock of the Company
that the Holder would have owned or have been entitled to receive after the happening of any of the events described above had
this Note been converted immediately prior to the happening of such event.

 

4.2       Adjustment
Based Upon Merger or Consolidation. In case of any consolidation or merger to which the Company is a party (other than a merger
in which the Company is the surviving entity and which does not result in any reclassification of or change in the outstanding
Common Stock of the Company), or in case of any sale or conveyance to another person, firm, or corporation of the property of the
Company as an entirety or substantially as an entirety, the Holder shall have the right to convert this Note into the kind and
amount of securities and property (including cash) receivable upon such consolidation, merger, sale or conveyance by the Holder
of the number of shares of Common Stock into which such Note might have been converted immediately prior thereto.

 

4.3       Exercise
of Conversion Privilege.

 

4.3.1       The
Conversion Privilege provided for in this Note shall be exercisable by the Holder by written notice to the Company or its successor
and the surrender of this Note in exchange for the number of shares (or other securities and property, including cash, in the event
of an adjustment of the Conversion Price) into which this Note is convertible based upon the Conversion Price.

 

    	 

    	 

    

4.3.2       The
Holder's conversion right may be exercised at any time and from time to time but prior to payment in full of the principal amount
of the accrued Interest on this Note.

 

4.3.3       The
Holder may exercise the right to convert all or any portion of the principal amount and accrued Interest on this Note by delivery
of (i) this Note and (ii) a completed Conversion Notice in the form attached as Exhibit A on a Business Day to the
Company's principal executive offices. Such conversion shall be deemed to have been made immediately prior to the close of business
on the Business Day of such delivery a conversion notice (the "Conversion Date"), and the Holder shall be treated for
all purposes as the record holder of the shares of Common Stock into which this Note is converted as of such date.

 

4.4       Issuance
of Certificate. Upon the conversion of this Note, the Company shall, within five (5) Business Days of such conversion, issue
to the Holder a certificate or certificates representing the number of shares of the Common Stock (or other securities in the event
of an adjustment of the Conversion Price) to which the conversion relates. In the alternative, the Company shall instruct the issuance
of shares electronically as a "DWAC" issuance.

 

              4.5       Issuance
of Purchase Warrant. Upon the conversion of this Note, or any portion of the principal or Interest due and payable hereunder,
the Holder shall receive, in addition to the Common Stock issuable hereunder, a warrant (the "Warrant") to purchase shares
of Common Stock equal to (x) 50% of the dollar amount of the principal and Interest being converted, divided by (y) $0.088
(the "Warrant Shares"). The Warrant Shares shall be exercisable at a per share price of $0.132 per share (equivalent
to 120% of the closing bid price of the Common Stock on the trading day immediately prior to the issuance date of this Note). The
Warrant shall be in the form of that attached hereto as Exhibit B.

 

5.       Reservation
of Shares of Common Stock. The Company shall reserve out of its authorized shares of Common Stock, and other securities in
the event of an adjustment of the Conversion Price, a number of shares sufficient to enable it to comply with its obligation to
issue shares of Common Stock under this Note and under the Warrant, and other securities in the event of an adjustment of the Conversion
Price, upon the conversion of this Note or the exercise of the Warrant.

 

6.       Transfer
Restrictions; Exemption from Registration.

 

6.1       The
Holder agrees that (i) this Note and the shares of Common Stock issuable upon conversion have not been registered under the Act
and may not be sold or transferred without registration under the Act or unless an exemption from such registration is available;
(ii) the Holder has acquired this Note and will acquire the Common Stock for its own account for investment purposes only and not
with a view toward resale or distribution; and (iii) if a registration statement that includes the Common Stock is not effective
at the time Common Stock is issued to Holder upon conversion under this Note, and the Common Stock is not exempt from registration
under Rule 144, then the Common Stock shall be inscribed with the following legend:

 

    	 

    	 

    

THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.
THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS, OR AN OPINION OF HOLDER'S COUNSEL, IN A CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE
SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

 

6.2       If
an opinion of counsel of Holder provides that registration is not required for the proposed conversion or transfer of this Note
or the proposed transfer of the shares of Common Stock issuable upon conversion and that the proposed conversion or transfer in
the absence of registration would require the Company to take any action including executing and filing forms or other documents
with the Securities and Exchange Commission (the "SEC") or any state securities agency, or delivering to the Holder
any form or document in order to establish the right of the Holder to effectuate the proposed conversion or transfer, the Company
agrees promptly, at its expense, to take any such action; and provided, further, that the Company will reimburse the Holder in
full for any expenses (including but not limited to the fees and disbursements of such counsel, but excluding brokers' commissions)
incurred by the Holder or owner of shares of Common Stock on his, her or its behalf in connection with such conversion or transfer
of the Note or transfer of the shares of Common Stock.

 

7.       Default.
The Company shall perform its obligations and covenants hereunder pertaining to the indebtedness evidenced hereby. The following
provisions shall apply upon failure of the Company so to perform.

 

7.1       Event
of Default. Any of the following events shall constitute an "Event of Default" hereunder:

 

7.1.1       Failure
by the Company to pay principal when due and payable hereunder on the Maturity Date;

 

7.1.2       The
entry of an order for relief under Federal Bankruptcy Code as to the Company or entry of any order appointing a receiver or trustee
for the Company or approving a petition in reorganization or other similar relief under bankruptcy or similar laws in the United
States of America or any other competent jurisdiction, and if such order, if involuntary, is not satisfied or withdrawn within
sixty (60) days after entry thereof; or the filing of a petition by the Company seeking any of the foregoing, or consenting thereto;
or the filing of a petition to take advantage of any debtor's act; or making a general assignment for the benefit of creditors;
or admitting in writing inability to pay debts as they mature.

 

    	 

    	 

    

7.2       Acceleration.
Upon any Event of Default, all sums evidenced hereby, including all principal, Interest, fees and all other amounts due hereunder,
shall become immediately due and payable.

 

7.3       Notice
by Company. Upon the happening of any Event of Default specified in this paragraph that is not cured within the respective
periods prescribed above, the Company will give prompt written notice thereof to the Holder of this Note.

 

7.4       No
Waiver. Failure of the Holder to exercise any option hereunder shall not constitute a waiver of the right to exercise the same
in the event of any subsequent Event of Default, or in the event of continuance of any existing Event of Default after demand or
performance thereof.

 

8.       Assignment,
Transfer or Loss of the Note.

 

8.1       No
Holder of this Note may assign, transfer, hypothecate or sell all or any part of this Note or in any way alienate or encumber the
Note without the express written consent of the Company, the granting or denial of which shall be within the absolute discretion
of the Company. Any attempt to effect such transfer without the consent of the Company shall be null and void. The Company has
not registered this Note under the Act or the applicable securities laws of any state in reliance on exemptions from registration.
Such exemptions depend upon the investment intent of the Holder at the time he acquires his Note. The Holder is acquiring this
Note for his own account for investment purposes only and not with a view toward distribution or resale of such Note within the
meaning of the Act and the applicable securities laws of any state. The Company shall be under no duty to register the Note or
to comply with an exemption in connection with the sale, transfer or other disposition under the applicable laws and regulations
of the Act or the applicable securities laws of any state. The Company may require the Holder to provide, at his expense, an opinion
of counsel satisfactory to the Company to the effect that any proposed transfer or other assignment of the Note will not result
in a violation of the applicable federal or state securities laws or any other applicable federal or state laws or regulations.

 

9.       Notices.
All notices provided for herein shall be validly given if in writing and delivered personally or sent by certified mail, postage
prepaid, to the office of the Company or such other address as the Company may from time to time designate in writing sent by certified
mail, postage prepaid, to the Holder at his address set forth above or such other address as the Holder may from time to time designate
in writing to the Company by certified mail, postage prepaid.

 

10.       Usury.
All Interest, Default Interest, fees, charges, goods, things in action or any other sums or things of value, or other contractual
obligations (collectively, the "Additional Sums") paid by the Company hereunder, whether pursuant to this Note or otherwise,
with respect to the indebtedness evidenced hereby, or any other document or instrument in any way pertaining to the indebtedness,
which, under the laws of the State of California may be deemed to be Interest with respect to such loan or indebtedness, shall,
for the purpose of any laws of the State of California, which may limit the maximum amount of Interest to be charged with respect
to such loan or indebtedness, be payable by the Company as, and shall be deemed to be, Interest and for such purposes only, the
agreed upon and contracted rate of Interest shall be deemed to be increased by the Additional Sums. Notwithstanding any provision
of this Note to the contrary, the total liability for payments in the nature of Interest under this Note shall not exceed the limits
imposed by applicable law. The Company shall not assert a claim, and shall actively resist any attempts to compel it to assert
a claim, respecting a benefit under any present or future usury laws against any Holder of this Note.

 

    	 

    	 

    

11.       Construction.
This Note shall be governed as to its validity, interpretation, construction, effect and in all other respects by and in accordance
with the laws and interpretations thereof of the State of California. Unless the context otherwise requires, the use of terms in
singular and masculine form shall include in all instances singular and plural number and masculine, feminine and neuter gender.

 

12.       Severability.
In the event any one or more of the provisions contained in this Note or any future amendment hereto shall for any reason be held
to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other
provision of this Note or such other agreement, and in lieu of each such invalid, illegal or unenforceable provision there shall
be added automatically as a part of this Note a provision as similar in terms to such invalid, illegal or unenforceable provision
as may be possible and be valid, legal and enforceable.

 

13.       Entire
Agreement. This Note represents the entire agreement and understanding between the parties concerning the subject matter hereof
and supersede all prior and contemporaneous agreements, understandings, representations and warranties with respect thereto.

 

14.       Governing
Law; Jurisdiction; Jury Trial. The corporate laws of the State of Nevada shall govern all issues concerning the relative rights
of the Company and its shareholders. All other questions concerning the construction, validity, enforcement and interpretation
of this Note shall be governed by the internal laws of the State of California, without giving effect to any choice of law or conflict
of law provision or rule (whether of the State of California or any other jurisdictions) that would cause the application of the
laws of any jurisdictions other than the State of California. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in the City of San Diego for the adjudication of any dispute hereunder or in connection
herewith or therewith, or with any transaction contemplated hereby or discussed herein, or in any manner arising in connection
with or related to the transactions contemplated hereby or involving the parties hereto whether at law or equity and under any
contract, tort or any other claim whatsoever 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 brought
in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or proceeding by mailing or faxing a
copy thereof to such party at the address for such notices as listed in this Note and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS NOTE OR ANY
TRANSACTION CONTEMPLATED HEREBY.

 

    	 

    	 

    

15.       Headings.
The headings used in this Note are used for convenience only and are not to be considered in construing or interpreting this
Note.

 

16.       Definitions.

 

"Person"
means any individual, corporation, partnership, joint venture, trust, estate, unincorporated organization or government or any
agency or political subdivision thereof.

 

17.       Miscellaneous.
Except as otherwise provided herein, the Company waives demand, diligence, presentment for payment and protest, notice of extension,
dishonor, maturity and protest. Time is of the essence with respect to the performance of each and every covenant, condition, term
and provision hereof.

 

IN WITNESS WHEREOF,
this Note has been issued on the 9th day of July 2013.

 

 

	 	AETHLON MEDICAL, INC.
	 	 
	 	By /s/ James Frakes                            
	 	     James Frakes
	 	     Chief Financial Officer

 

 

 

 

 

 

    	 

    	 

    

 

 

 

EXHIBIT A

 

 

CONVERSION NOTICE

 

 

(To be signed only upon conversion of this
Note)

 

 

 

TO: AETHLON MEDICAL, INC.

 

 

The undersigned, the registered holder
of the 10 % Convertible Note (the "Note") of AETHLON MEDICAL, INC. (the "Company"), hereby surrenders
the Note for conversion into shares of Common Stock of the Company (the "Common Stock") to the extent of $_______ unpaid
principal amount of the Note and $_______ unpaid accrued Interest due under the Note, all in accordance with the provisions of
such Note. The undersigned requests (i) that a certificate representing shares of Common Stock, bearing the appropriate legends,
be issued to the undersigned, and (ii) if the unpaid principal amount so converted is less than the entire unpaid principal amount
of the Note, that a new substitute note representing the portion of said unpaid principal amount that is not so converted be issued
in accordance with the provisions of the Note.

 

 

 

 

 

________________________________________

(Signature and name of the registered
holder)

 

 

________________________________________

Print Name

 

 

Dated:___________________________________

 

 

 

    	 

    	 

    

EXHIBIT B

 

 

 

Form or Common Stock Purchase Warrant

 

(To be issued only upon conversion of this
Note)

 

 

 

 

 

 

 

 

    	 

    	 

    

 

 

NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT
SECURED BY THE SECURITIES.

 

 

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

 

 

 

 

COMMON STOCK PURCHASE WARRANT

 

 

 

	No. _____________	Issue Date: ____________

 

AETHLON MEDICAL, INC.,
a corporation organized under the laws of the State of Nevada (the “Company”), hereby certifies that, for value received,
the_____________ (the “Holder”) is entitled, subject to the terms set forth below, to purchase from the Company at
any time commencing after the Issue Date until 5:00 p.m., P.S.T, on the Expiration Date (as defined below), up to _________ fully
paid and non-assessable shares of Common Stock at a per share purchase price of $0.132. The aforedescribed purchase price per share,
as adjusted from time to time as herein provided, is referred to herein as the "Purchase Price." This Common Stock Purchase
Warrant (this “Warrant”) is being issued to the Holder in connection with the conversion of that 10% Convertible Promissory
Note dated July__, 2013 issued by Company to Holder. This Warrant may be exercised at any time and from time to time but no later
than 5:00 p.m., P.S.T., seven years from the date of issuance of this Warrant (the “Expiration Date”), at which point
it shall become void and all rights under this Warrant shall cease.

 

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, $.001 par value per share, as authorized on the date
of this Warrant, 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.

 

(d)       The
term “Warrant Shares” shall mean the Common Stock issuable upon exercise of this Warrant.

 

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 delivery
within two (2) days thereafter of payment, in cash, wire transfer or by certified or official bank check payable to the order of
the Company, 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. The original Warrant is not required to be surrendered to the Company until it has been fully
exercised.

 

1.3.       Partial
Exercise. This Warrant may be exercised in part (but not for a fractional share) by delivery of a Subscription Form 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, provided the Holder has surrendered
the original Warrant, 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.

 

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       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 delivery of a Subscription Form shall have occurred and payment shall have been 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) business 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 non-assessable 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 multiplied by the
then fair market value of one full share of Common Stock, together with any other stock or other securities and property (including
cash, where applicable) to which such Holder is entitled upon such exercise pursuant to Section 1 or otherwise. 

 

    	 

    	 

    

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

 

2.1.       Fundamental Transaction.
If, at any time while this Warrant is outstanding, (A) the Company  effects any merger or  consolidation of
the Company with or into another entity, (B) the Company effects any sale of all or substantially all of its assets in
one or a series of related transactions,  (C) any tender offer or exchange offer (whether by
the Company or another entity) is completed pursuant to which holders of Common Stock are permitted to tender or exchange
their shares for other securities, cash or property, (D) the Company consummates a stock purchase agreement
or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement)
with one or more persons or entities whereby such other persons or entities acquire more than 50% of the outstanding shares of
Common Stock (not including any shares of Common Stock held by such other persons or entities making or party to, or associated
or affiliated with the other persons or entities making or party to, such stock purchase agreement or other business combination),
(E) any "person" or "group" (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act)
is or shall become the "beneficial owner" (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50%
of the aggregate Common Stock of the Company, or (F) 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 (in any such case, a "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, at
the option of the Holder, (a) upon exercise of this Warrant, 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 upon
or as a result of such reorganization, reclassification, 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 or (b) if the Company is acquired in (1) a transaction where the consideration paid to the holders of
the Common Stock consists solely of cash, (2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the 1934 Act,
or (3) a 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, cash equal to the Black-Scholes Value.  For purposes of
any such exercise, the determination of the Purchase 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 Purchase 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 3.1 and insuring that
this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a
Fundamental Transaction. “Black-Scholes Value” shall be determined in accordance with the Black-Scholes Option Pricing
Model obtained from the “OV” function on Bloomberg L.P. using (i) 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,
(ii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term of this Warrant
as of the date of such request and (iii) 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.

 

    	 

    	 

    

2.2.       Dissolution.
In the event of any sale or conveyance of all or substantially all of the assets of the Company in connection with a plan of complete
liquidation of the Company, or in the case of the dissolution, liquidation or winding-up of the Company, all rights under this
Warrant shall terminate on a date fixed by the Company, such date so fixed to be not earlier than the date of the commencement
of the proceedings for such dissolution, liquidation or winding-up and not later than thirty (30) days after such commencement
date. Notice of such termination of purchase rights shall be given to the Holder at least thirty (30) days prior to such termination
date.

 

2.3.       Continuation
of Terms. Except as provided in Section 2.2, upon any reorganization, consolidation, merger or 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,
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 3.1. In the event this Warrant does not continue in full
force and effect after the consummation of the transaction described in this Section 2, then the Company shall at its expense
deliver or cause to be delivered the securities and property (including cash, where applicable) receivable by the Holder of the
Warrants to a bank or trust company having its principal office in California, as trustee for the Holder of the Warrants. Such
property shall be delivered to the Holder only upon payment of the Warrant exercise price.

 

3.       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, simultaneously with the happening of such event, be adjusted 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 herein in this Section 4. The number of shares of Common Stock that
the Holder of this Warrant shall thereafter, on the exercise hereof, be entitled to receive 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.

 

4.       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).

 

    	 

    	 

    

5.       Rights
of Holder. Nothing contained in this Warrant shall be construed as conferring upon the Holder the right to vote or consent
or receive notice as a stockholder in respect of any meetings of stockholders for the election of directors or any other matter,
or as having any rights whatsoever as a stockholder of the Company. If, however, at any time prior to the expiration of this Warrant
and prior to its exercise, any of the following shall occur:

 

5.1.       The
Company shall take a record of the holders of its shares of Common Stock for the purpose of entitling them to receive a dividend
or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of current or retained
earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company; or

 

5.2        There
shall be proposed any capital reorganization or reclassification of the Common Stock, or a sale of all or substantially all of
the assets of the Company, or a consolidation or merger of the Company with another entity;

 

then, in any one or more
of said cases, the Company shall cause to be mailed to the Holder, at the earliest practicable time (and, in any event, not less
than thirty (30) days before any record date or other date set for definitive action), written notice of the date on which the
books of the Company shall close or a record shall be taken to determine the stockholders entitled to such dividend or distribution
or entitled to vote on such reorganization, reclassification, sale, consolidation or merger, as the case may be. Such notice shall
also set forth such facts as shall indicate the effect of such action (to the extent such effect may be known at the date of such
notice) on the Purchase Price and the kind and amount of the Common Stock and other securities and property deliverable upon exercise
of this Warrant. Such notice shall also specify the date as of which the holders of the Common Stock of record shall participate
in said distribution or shall be entitled to exchange their Common Stock for securities or other property deliverable upon such
reorganization, reclassification, sale, consolidation or merger, as the case may be. Without limiting the obligation of the Company
to provide notice to the Holder of actions hereunder, it is agreed that failure of the Company to give notice shall not invalidate
such action of the Company.

 

6.       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.

 

7.       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 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) (upon payment by such Holder of
any applicable transfer taxes) 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.

 

8.       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.

 

    	 

    	 

    

9.       Registration
Under the Securities Act of 1933.

 

9.1.       Registration
and Legends. The Holder understands that (i) the Company has not registered the Warrant or the Warrant Shares under the Securities
Act of 1933, as amended (the “Securities Act”), or the applicable securities laws of any state in reliance on exemptions
from registration and (ii) such exemptions depend upon the Holder's investment intent at the time the Holder acquires the Warrant
or the Warrant Shares. The Holder therefore represents and warrants that it is acquiring the Warrant, and will acquire the Warrant
Shares, for the Holder's own account for investment and not with a view to distribution, assignment, resale or other transfer of
the Warrant or the Warrant Shares. Because the Warrant and the Warrant Shares are not registered, the Holder is aware that the
Holder must hold them indefinitely unless they are registered under the Securities Act and any applicable securities laws or the
Holder must obtain exemptions from such registration. Upon exercise, in part or in whole, of this Warrant, the Warrant Shares shall
bear the following legend:

 

The shares of Common
Stock represented by this certificate have not been registered under the Securities Act of 1933, as amended ("Act") or
any applicable state securities laws, and they may not be offered for sale, sold, transferred, pledged or hypothecated without
an effective registration statement under the Act and under any applicable state securities laws, or an opinion of counsel, satisfactory
to the company, that an exemption from such registration is available.

 

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 7, and replacing this Warrant pursuant to Section 8 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: if to the Company, to: Aethlon Medical, Inc., 8910 University Center Lane,
Suite 660, San Diego, CA 92122, Attn: James A. Joyce, CEO, telecopier: (858) 272-2738,and (ii) if to the Holder, to the
Holder’s last known address and telecopier number as it shall appear on the books of the Company.

 

    	 

    	 

    

13.       Law
Governing This Warrant. This Warrant shall be governed by and construed in accordance with the laws of the State of California
without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions
contemplated by this Warrant shall be brought only in the state courts of California or in the federal courts located in the state
and county of California. The parties to this Warrant hereby irrevocably waive any objection to jurisdiction and venue of any action
instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens.
The Company and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable
attorney's fees and costs. In the event that any provision of this Warrant or any other agreement delivered in connection herewith
is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the
extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision
which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of
any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit,
action or proceeding in connection with this Warrant by mailing a copy thereof via registered or certified mail or overnight delivery
(with evidence of delivery) to such party at the address in effect for notices to it under this Warrant and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in
any way any right to serve process in any other manner permitted by law.

 

14.       Survival.
All agreements, covenants, representations and warranties herein shall survive the execution and delivery of this Warrant and any
investigation at any time made by or on behalf of any parties hereto and the exercise, sale and purchase of this Warrant (and any
other securities or property) issuable on exercise hereof.

 

15.       Binding
Effect. All the covenants and provisions of this Warrant by or for the benefit of the Company shall bind and inure to the benefit
of its successors and assigns hereunder.

 

16.       Parties
Bound and Benefitted. Nothing in this Warrant expressed and nothing that may be implied from any of the provisions hereof is
intended, or shall be construed, to confer upon, or give to, any person or corporation other than the Company and the Holder any
right, remedy or claim under promise or agreement hereof, and all covenants, conditions, stipulations, promises and agreements
contained in this Warrant shall be for the sole and exclusive benefit of the Company and its successors and of the Holder, its
successors and, if permitted, its assignees.

 

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

 

	 	AETHLON MEDICAL, INC. 
	 	 
	 	 
	 	 
	 	By:     _____________________
	 	Name: James Frakes
	 	            Chief Financial Officer 

 

 

 

 

    	 

    	 

    

 

 

	 	HOLDER:
	 	 
	 	 
	 	 
	 	By:
	 	Name:
	 	Title:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

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.

 

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 $__________ in lawful money of the United States.

 

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

         

        ____________________________________

        ____________________________________

        (Address)

         

    	 

    	 

    

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)Exhibit 4.1

 

THE SECURITIES REPRESENTED BY THIS CONVERTIBLE WARRANT AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS THE SAME ARE REGISTERED IN ACCORDANCE WITH THE ACT OR UNLESS IT IS OTHERWISE ESTABLISHED TO THE SATISFACTION OF ISSUER THAT AN EXEMPTION FROM REGISTRATION UNDER THE ACT IS AVAILABLE.

 

WARRANT AGREEMENT

 

to Purchase Common Shares of Beneficial Interest
 par value $.0001 per Share

 

of

 

EquiTrust USA
 a Maryland real estate investment trust

 

Issue Date:               , 2013

 

FOR VALUE RECEIVED, EQUITRUST USA, a Maryland real estate investment trust (“Issuer”), hereby grants to CROWNIKK USA, LLC, a North Carolina limited liability company (“Holder”), the right, upon the terms and subject to the conditions of this Warrant Agreement (this “Warrant Agreement”), to subscribe for and purchase common shares of beneficial interest, par value $.0001 per share, of Issuer (“Common Shares”), in a number determined by dividing the Purchase Price (as defined in Section 1 hereof) by the Share Price (as defined in Section Error! Reference source not found.2 hereof, on the following terms and subject to the following conditions:

 

TERMS

 

1. Purchase Price; Receipt

 

The purchase price of the warrant granted hereby (the “Warrant”) is Ten Million and No/100 Dollars ($10,000,000.00) (the “Purchase Price”), which has been paid by Holder and received by Issuer pursuant to the Membership Purchase and Sale Agreement dated as of               , 2013 (the “Purchase Agreement”) by and among Holder as Seller, Issuer as Purchaser, and Cataloochee                         , LLC, a Delaware limited liability company.

 

2. Share Price; Exercise Price

 

(a)                                 As of the Issue Date, the Share Price shall be equal to Ten and No/100 Dollars ($10.00) per Warrant Share. The Share Price and the number of Common Shares issuable upon exercise of the Warrant are subject to adjustment from time to time as provided in Section 5 hereof.

 

(b)                                 At all times during the Warrant Term, the exercise price of the Warrant shall be equal to $.0001 per Warrant Share (the “Exercise Price”).

 

3. Warrant Term

 

The Warrant and the right to purchase the Common Shares as granted herein shall be exercisable at any time from                              through the fifth anniversary thereof (the “Warrant Term”). If the Warrant is not exercised by Holder within the Warrant Term, then (a) Issuer shall be deemed to have given a Call Notice under Section 7.02 hereof; (b) the Warrant shall immediately terminate as to further exercises under Section 4; and (c) Holder thereafter shall have the right to receive the Redemption Price for the Warrant in accordance with Section 7.02.

 

1

 

4. Exercise of Purchase Rights

 

4.01.                     Notice of Exercise

 

The Warrant may be exercised, in whole or in part, by Holder at any time during the Warrant Term, by tendering to Issuer a duly completed and executed notice of exercise in the form attached hereto as Exhibit A (the “Notice of Exercise”), specifying the portion of the Warrant to be exercised (stated either as a number of U.S. dollars or as a percentage of the then-current Purchase Price); payment in an amount equal to the number of Issued Shares (as defined in Section 4.02) multiplied by the Exercise Price; and the original of this Warrant Agreement. Exercise of the Warrant shall be effective as of the date on which Issuer actually receives the Notice of Exercise and original Warrant Agreement at its address for notice specified in Section 11.01 hereof (the “Exercise Date”).

 

4.02.                     Duties of Issuer

 

Within 15 business days after the Exercise Date, Issuer shall enroll Holder on the stock transfer ledger for the Common Shares, as the owner and holder of a number of Common Shares equal to the exercised portion of the Warrant (as specified in the Notice of Exercise) divided by the then-current Share Price (the “Issued Shares”). If Issuer has appointed a transfer agent for the Common Shares, then Issuer shall direct the transfer agent to issue the Issued Shares and enroll Holder as the owner and holder thereof; provided, that the failure of the transfer agent for the Common Shares to complete the issuance of the Issued Shares and/or the enrollment of Holder as holder and owner thereof within 15 business days shall not be deemed a breach of this Warrant Agreement by Issuer.

 

4.03.                     Effectiveness of Issuance

 

Upon fulfillment of the foregoing requirements, Holder shall be deemed to have become the holder of the Issued Shares (and the Issued Shares shall be deemed to have been issued) as of the Exercise Date.

 

4.04.                     No Rights as Shareholder

 

Neither the issuance of the Warrant, nor this Warrant Agreement, entitles Holder to any voting rights or other rights whatsoever unless and until Holder shall exercise the Warrant as provided herein.

 

5. Adjustment of Share Price

 

5.01.                     Definitions

 

As used in this Section 5, the following terms have the following meanings:

 

(a)                                 “Additional Stock” means any Common Shares issued (or deemed to have been issued pursuant to Section 5.02(c)) by Issuer after the Issue Date other than:

 

(i)                                     Common Shares issued pursuant to a transaction described in Section 5.02(d);

 

(ii)                                  Common Shares issued or issuable upon the exercise of options or other awards granted under any stock option or equity incentive award plan maintained by Issuer at any time or from time to time;

 

(iii)                               Common Shares issued or issuable upon exercise of the Warrant.

 

(b)                                 “Board” or “Board of Trustees” means the Board of Trustees of Issuer.

 

(c)                                  “Convertible Securities” means any indebtedness or Shares of stock convertible into or exchangeable for Common Shares or any rights, options or warrants to purchase any Common Shares.

 

2

 

(d)                                 “Common Shares Outstanding on a Fully Diluted Basis” as of any time, means the sum of all Common Shares then issued and outstanding, exclusive of treasury Shares, plus any Common Shares issuable at any time in the future pursuant to then outstanding Common Share Equivalents, options, warrants, conversion rights, “earn out” obligations and similar rights (whether or not such rights are currently exercisable).

 

(e)                                  “Common Share Equivalents” means securities or other rights convertible into, exchangeable for, or entitling the holder thereof to receive, directly or indirectly, additional Common Shares.

 

(f)                                   “Liquidation” means (i) any voluntary or involuntary liquidation, dissolution or winding up of the affairs of Issuer, (ii) any acquisition of Issuer by means of merger or other form or reorganization pursuant to which (A) Shares of Issuer are exchanged for or converted into securities or other consideration issued or caused to be issued by or on behalf of the acquiring corporation or its subsidiary, or (B) Shares of Issuer are issued such that holders of voting securities of Issuer immediately prior to the consummation of such transaction hold less than 50% of the voting power of outstanding voting securities of the surviving entity immediately following the consummation of such transaction, or (iii) the sale of all or substantially all assets of Issuer, (other than any merger, sales of assets, dissolution, liquidation or winding up solely in connection with any reincorporation of Issuer in another jurisdiction).

 

5.02.                     Adjustment of Share Price

 

The Share Price shall be adjusted from time to time as follows:

 

(a)                                 Upon each issuance (or deemed issuance pursuant to the provisions hereof) by Issuer of any Additional Stock for a price per Share other than the Share Price in effect immediately prior to the issuance (or deemed issuance) of such Additional Stock, then the Share Price in effect immediately prior to each issuance (or deemed issuance) shall be adjusted to a price determined by multiplying such Share Price by a fraction, (i) the numerator of which shall be the number of Common Shares outstanding immediately prior to such issuance, plus the number of Common Shares issuable in respect of Common Share Equivalents outstanding immediately prior to such issuance, plus the number of Common Shares which the aggregate consideration received (or deemed received) by Issuer for such issuance would purchase at the Share Price; and (ii) the denominator of which shall be the number of Common Shares outstanding immediately after such issuance, plus the number of Common Shares issuable in respect of Common Share Equivalents outstanding immediately after such issuance.

 

(b)                                 No adjustment of the Share Price shall be made in an amount less than one-half of one cent ($0.005) per Share; provided, that any adjustments which are not required to be made by reason of this sentence shall be carried forward and shall be taken into account in any subsequent adjustment to the Share Price. No adjustment of the Share Price pursuant to this Section 5.02 shall have the effect of increasing such Share Price above the Share Price in effect immediately prior to such adjustment.

 

(c)                                  In the case of the issuance (whether before, on or after the Issue Date) of options or Convertible Securities, the following provisions shall apply for all purposes of this Section 5.02:

 

(i)                                     With respect to options to purchase Common Stock, the aggregate maximum number of Common Shares deliverable upon exercise of such options shall be deemed to have been issued at the time such options were issued.

 

(ii)                                  With respect to Convertible Securities and options to purchase Convertible Securities, the aggregate maximum number of Common Shares deliverable upon the conversion or exchange of any such Convertible Securities and the aggregate maximum number of Common Shares issuable upon the exercise of such options to purchase Convertible Securities and the subsequent conversion or exchange of such Convertible Securities shall be deemed to have been issued at the time such Convertible Securities or such options were issued and for a consideration equal to the consideration, if any, received by Issuer for any such Convertible Securities and options, plus the minimum additional consideration, if any, to be received by Issuer upon the conversion or exchange of

 

3

 

such Convertible Securities or the exercise of such options and the conversion or exchange of the Convertible Securities issuable upon exercise of such options (the consideration in each case to be determined in the manner provided in Section 5.02(f)).

 

(iii)                               In the event of any change in the number of Common Shares deliverable or in the consideration payable to Issuer upon exercise of such options or upon conversion or exchange of such Convertible Securities, including a change resulting from the antidilution provisions thereof, the Share Price, to the extent in any way affected by or computed using such options or Convertible Securities, shall be recomputed to reflect such change, but no further adjustment shall be made for the actual issuance of Common Shares or any payment of such consideration upon the exercise of any such options or the conversion or exchange of such Convertible Securities.

 

(iv)                              Upon the expiration or termination of any such options or any such rights to convert or exchange Convertible Securities, the Share Price, to the extent in any way affected by or computed using such options or Convertible Securities, shall be recomputed to reflect the issuance of only the number of Common Shares (and options and Convertible Securities which remain in effect) that were actually issued upon the exercise of such options or upon the conversion or exchange of such Convertible Securities.

 

(v)                                 The number of Common Shares deemed issued and the consideration deemed paid therefor pursuant to Sections 5.02(c)(i) and 5.02(c)(ii) hereof shall be appropriately adjusted to reflect any change, termination or expiration of the type described in either Section 5.02(c)(iii) or 5.02(c)(iv).

 

(d)                                 If Issuer, at any time or from time to time after the Issue Date, fixes a record date for the effectuation of a split or subdivision of the outstanding Common Shares or the determination of holders of Common Shares entitled to receive a dividend or other distribution payable in additional Common Shares or Common Share Equivalents (including the additional Common Shares issuable upon conversion or exercise thereof), then the Share Price shall be appropriately decreased, as of such record date (or the date of such dividend, distribution, split or subdivision if no record date is fixed), so that the number of Common Shares issuable on exercise of the Warrant shall be increased in proportion to such increase in the aggregate number of Common Shares or Common Shares issuable with respect to Common Share Equivalents, with the number of Common Shares issuable with respect to Common Share Equivalents determined from time to time in the manner provided for deemed issuances in Section 5.02(c).

 

(e)                                  If the number of Common Shares outstanding at any time after the Issue Date is decreased by a combination of the outstanding Common Shares, then, following the record date of such combination, the Share Price shall be appropriately increased so that the number of Common Shares issuable on exercise of the Warrant shall be decreased in proportion to such decrease in the outstanding Common Shares.

 

(f)                                   The value of the consideration received upon the issuance of securities of Issuer shall be determined as follows:

 

(i)                                     In the case of the issuance of securities of Issuer for cash, the amount of consideration received by Issuer for such securities shall be deemed to be the amount of cash paid therefor before deducting any discounts, commissions or other expenses allowed, paid or incurred by Issuer for any underwriting or otherwise in connection with the issuance and sale thereof.

 

(ii)                                  In the case of the issuance of securities of Issuer for a consideration in whole or in part other than cash, the consideration other than cash shall be deemed to have a dollar value equal to the fair market value of such non-cash consideration, irrespective of any accounting treatment thereof, as determined by the Board of Trustees in good faith.

 

(g)                                  Notwithstanding any other provision of this Section 5.02, if at any time the Common Shares have been registered under Sections 12(b) or 12(g) of the Securities Exchange Act of 1934, as

 

4

 

amended (the “Exchange Act”), or if Issuer is required for any reason to file reports under Sections 13 or 15(d) of the Exchange Act, then the Share Price shall be equal to:

 

(i)                                     If the Common Shares are traded on a securities exchange or through the Nasdaq National Market, the average of the closing prices of the Common Shares on such exchange or system over the period of 20 trading days period ending the trading day immediately prior to the Exercise Date; or

 

(ii)                                  If the Common Shares are actively traded over-the-counter, the average of the closing bid or sale prices (whichever is applicable) over the period of 20 trading days ending the trading day immediately prior to the Exercise Date.

 

5.03.                     Recapitalization

 

If at any time or from time to time there shall be a recapitalization of the Common Shares that does not constitute a Liquidation, provision shall be made so that Holder shall thereafter be entitled to receive, upon exercise of the Warrant, the number of Shares of stock or other securities or property of Issuer otherwise receivable upon such recapitalization by a holder of the number of Common Shares into which such Series A Preferred Shares could have been converted immediately prior to such recapitalization. In any such case, appropriate adjustment shall be made in the application of the provisions of this Section 5 with respect to the rights of Holder after the recapitalization to the end that the provisions of this Section 5 (including adjustments of the Share Price then in effect and the number of Shares purchasable upon exercise of the Warrant) shall be applicable after that event as nearly equivalent as may be practicable.

 

5.04.                     No Fractional Shares

 

No fractional Shares shall be issued upon exercise of the Warrant, and the number of Common Shares to be issued shall be rounded down to the nearest whole Share, and there shall be no payment to Holder for any such rounded fractional Share. Whether or not fractional Shares result from such conversion shall be determined on the basis of the total portion of the Warrant Holder is exercising at the time (as provided in Section 4) and the total number of Common Shares issuable upon such conversion.

 

5.05.                     Certificate as to Adjustments

 

Upon the occurrence of each adjustment or readjustment of the Share Price pursuant to this Section 5, Issuer, at its expense, shall promptly compute such adjustment or readjustment in accordance with the terms hereof and prepare and furnish to Holder a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. Upon the written request of Holder at any time during the Warrant Term, Issuer shall furnish or cause to be furnished to Holder a like certificate setting forth (a) such adjustment and readjustment, (b) the Share Price, as applicable, at the time in effect, and (c) he number of Common Shares and the amount, if any, of other property which at the time would be received upon the exercise of the Warrant.

 

6. Reservation of Common Shares

 

Issuer at all times shall reserve and keep available out of its authorized but unissued Common Shares, solely for the purpose of effecting the exercise of the Warrant, such number of its Common Shares as shall from time to time be sufficient to effect the issuance of all Common Shares issuable upon exercise of the Warrant in full, at the then-current Share Price. If at any time the number of authorized but unissued Common Shares shall not be sufficient to effect the conversion of all then outstanding Series A Preferred Shares, then Issuer will take such corporate action as, in the opinion of its counsel, may be necessary to increase its authorized but unissued Common Shares to such number of Common Shares as shall be sufficient for such purposes.

 

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7. Redemption of Warrant

 

7.01.                     By Holder

 

At any time during the Warrant Term, Holder may redeem the then-outstanding portion of the Warrant, in whole or in part, by written notice to Issuer (a “Put Notice”), specifying the portion of the Warrant to be redeemed (stated either as a number of U.S. dollars or as a percentage of the then-current Purchase Price). Within 15 days after the date on which Issuer actually receives a Put Notice and the original Warrant Agreement at its address for notice specified in Section 11.01 hereof, Issuer shall repurchase from Holder the portion of the Warrant specified in the Put Notice for an amount equal to the portion of the then-current Purchase Price specified in the Put Notice, payable in cash or collected funds.

 

7.02.                     By Issuer

 

At any time during the Warrant Term, Issuer may redeem then then-outstanding portion of the Warrant, in whole but not in part, by written notice to Holder (a “Call Notice”). Upon receiving a Call Notice or the expiration of the Warrant Term, as the case may be, Holder promptly shall tender to Issuer the original of this Warrant Agreement. Within 15 days after the date on which Issuer actually receives the original Warrant Agreement at its address for notice specified in Section 11.01 hereof, Issuer shall repurchase the Warrant from Holder for an amount equal to 110% of the then-current Purchase Price of the Warrant, payable in cash or collected funds (the “Redemption Price”).

 

8. No Change of Warrant Necessary

 

Irrespective of any exercise of the Warrant pursuant to Section 4 hereof or any adjustment of the Share Price pursuant to Section 5, unless Holder otherwise requests, this Warrant Agreement shall continue to express the same Purchase Price and Share Price as initially stated in this Warrant Agreement.

 

9. Compliance With Securities Act

 

9.01.                     Representations and Warranties

 

(a)                                 As a material inducement to Issuer to issue the Warrant and to execute and deliver this Warrant Agreement, Holder hereby represents and warrants that:

 

(i)                                     Holder is experienced in evaluating companies such as Issuer, has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment, and has the ability to suffer the total loss of the investment.

 

(ii)                                  Holder has had the opportunity to ask questions of and receive answers from Issuer concerning the terms and conditions of the Warrant and the business of Issuer, and to obtain additional information to Holder’s satisfaction.

 

(iii)                               Holder is an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities Act, as presently in effect.

 

(b)                                 Holder understands that neither the Warrant nor the Common Shares issuable upon exercise of the Warrant will be registered at the time of their issuance under the Securities Act, in reliance on an exemption pursuant to Section 4(2) of the Securities Act; and acknowledges that Issuer’s reliance on such exemption is based on Holder’s representations in this Section 9.01 and Issuer’s acceptance of the transfer restrictions in Sections 9.02 and 10 of this Warrant Agreement.

 

9.02.                     Transfer Restrictions

 

Holder, by acceptance hereof, agrees that the Warrant and the Common Shares to be issued upon exercise of the Warrant, are being acquired for investment and that Holder will not offer, sell or otherwise dispose of the Warrant or the Shares to be issued upon exercise of the Warrant except under

 

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circumstances that will not result in a violation of the Securities Act of 1933, as amended (the “Securities Act”), or any applicable state securities laws. If the Shares are then certificated, all Shares issued upon exercise of the Warrant (unless registered under the Securities Act and any applicable state securities laws) shall be stamped or imprinted with a legend in substantially the following form:

 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS THE SAME ARE REGISTERED IN ACCORDANCE WITH THE ACT OR UNLESS IT IS OTHERWISE ESTABLISHED TO THE SATISFACTION OF ISSUER THAT AN EXEMPTION FROM REGISTRATION UNDER THE ACT IS AVAILABLE.

 

10. Transferability of Warrant or Issued Shares

 

10.01.              Transfer

 

Neither the Warrant nor the Issued Shares may be sold, transferred, pledged or otherwise disposed of, in whole or in part, to any person without the prior written consent of Issuer. Any transfer or sale or attempted transfer or sale of the Warrant or the Issued Shares in violation of any provision of the Warrant shall be void, and Issuer shall not record such transfer on its books or treat any purported transferee of the Warrant or the Issued Shares as the owner thereof for any purpose.

 

10.02.              Exchange or Assignment of the Warrant

 

The Warrant cannot be exchanged, transferred or assigned otherwise than with the prior express written consent of Issuer in accordance with the provisions of this Warrant Agreement. If the provisions of this Warrant Agreement are complied with, upon the request of Holder, accompanied by the surrender to Issuer of this Warrant Agreement, the submission to Issuer of the duly completed and executed Assignment Form annexed hereto as Exhibit B, and the payment of funds sufficient to discharge any applicable transfer tax thereon, Issuer shall execute and deliver a new Warrant Agreement to the transferee or assignee named in such instrument of assignment and this Warrant Agreement shall thereupon be canceled.

 

11. Other Covenants

 

11.01.              Charges; Taxes and Expenses

 

The transfer of the Issued Shares upon the exercise of the Warrant shall be made without charge to Issuer for any issue or transfer tax or other incidental expense in respect of such transfer, all of which taxes and expenses shall be paid by Holder. Holder shall indemnify Issuer from and against any such tax or expense.

 

11.02.              Further Assurances

 

Each of the parties shall execute such documents and perform such further acts (including, without limitation, obtaining any consents, exemptions, authorizations or other actions by, or giving any notices to, or making any filings with, any governmental authority or any other person, and otherwise fulfilling, or causing the fulfillment of, the various obligations made herein) as may be reasonably required or desirable to carry out or to perform the provisions of this Warrant Agreement and to consummate and make effective as promptly as possible the transactions contemplated by this Warrant Agreement.

 

12. Notices

 

All notices, consents, requests, waivers and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been made (x) upon actual receipt, when given by hand or confirmed facsimile transmission, (y) one day after delivery to the carrier, when given by overnight delivery service or (z) two days after mailing, when given by first-class registered or certified

 

7

 

mail, postage prepaid, return receipt requested; in any case to the following address, or to such other address as a Party, by notice to the other Parties given pursuant to this Section 12 may designate from time to time:

 

(a)                                 If to Issuer, to:                                                                                                                                        EquiTrust USA
  Attention: Chairman
 3475 Piedmont Rd, NE Suite 1200
 Atlanta, GA 30305
 Fax: +1.770.226.5377

 

with a copy to:                                                                                                                                       Morehous Legal Group, PLLC
 Attention: David L. Morehous
 507 S. Gay Street, Suite 1200
 Knoxville, TN 37902
 Fax: +1.865.971.1776

 

(b)                                 If to Holder, to:                                                                                                                                   Crownikk USA, LLC
  Attention: [contact]
 [Street address]
 [City], [ST] [Zip]
 Fax: [number]

 

with a copy to:                                                                                                                                       Womble Carlyle Sandridge & Rice, LLP
  Attention: W. Lindsay Smith
 W. Lindsay Smith
 550 South Main Street, Suite 400
 Greenville, SC 29601 
 Fax: +1. 864.255.5483

 

13. General Provisions

 

13.01.              Governing Law

 

This Warrant Agreement shall be governed by and construed in accordance with the laws of the State of Maryland, without regard to the principles of conflicts of law of any jurisdiction.

 

13.02.              Successors and Assigns; Third Party Beneficiaries

 

Subject to the provisions of Section 9 and 10 hereof, this Warrant Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the parties hereto. No person, other than the parties hereto and their successors and permitted assigns, is intended to be a beneficiary of this Warrant Agreement.

 

13.03.              Amendment and Remedies

 

The remedies provided for herein are cumulative and are not exclusive of any remedies that may be available to Issuer and Holder at law, in equity or otherwise. Any amendment, supplement or modification of or to any provision of this Warrant Agreement shall be effective only if it is made or given in writing and signed by Issuer and Holder.

 

13.04.              Severability

 

If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not be in any way impaired, unless the provisions held invalid, illegal or unenforceable shall substantially impair the benefits of the remaining provisions hereof.

 

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13.05.              Entire Agreement

 

This Warrant Agreement, together with the exhibits hereto, is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein. This Warrant Agreement, together with the exhibits hereto, supersedes all prior agreements and understandings between the parties with respect to such subject matter.

 

13.06.              Counterparts

 

This Warrant Agreement may be executed in two or more counterparts in the English language; each counterpart shall be deemed an original hereof for all purposes, and all counterparts shall constitute a single Warrant Agreement. Facsimile or PDF copies of signatures shall be treated as original signatures for all purposes. In case of any conflict between the English version and any translated version of this Agreement, the English version shall govern.

 

9

 

SIGNATURES

 

IN WITNESS WHEREOF this Warrant Agreement has been duly executed and delivered by Issuer and Holder as of the Issue Date above.

 

	
 
    	
Trust:
    
	
 
    	
 
    
	
 
    	
EQUITRUST   USA, a Maryland   real estate investment trust
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Warrant Holder:
    
	
 
    	
 
    
	
 
    	
CROWNIKK   USA, LLC, a North Carolina limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    

 

10

 

EXHIBIT A

 

Notice of Exercise

 

To:                            EquiTrust USA

 

1.                                      The undersigned Warrant Holder hereby elects, pursuant to Section 4 of the Warrant Agreement dated as of               , 2013 (the “Warrant Agreement”), by and between EquiTrust USA, a Maryland real estate investment trust (the “Trust”), and the undersigned Warrant Holder, to exercise the Warrant to the extent set forth below and to purchase that number of common shares of beneficial ownership, par value $.0001 per share, equal to the Exercised Purchase Price (as defined below), divided by the Share Price in force on the date hereof (the “Issued Shares”):

 

	
 
    	
 
    	
OR
    	
 
    	
 
    
	
Dollars
    	
 
    	
 
    	
%   of Purchase Price
    

 

The portion of the Purchase Price set forth above is referred as the “Exercised Purchase Price” in this Notice of Exercise.

 

2.                                      As consideration for the Issued Shares, Holder tenders herewith payment in full of the Exercised Purchase Price in the following form: {to be marked or completed by Warrant Holder}:

 

o  By check enclosed herewith

 

o  Other:

 

Warrant Holder acknowledges and agrees that the exercise of the Warrant by the undersigned Warrant Holder by means of the form of payment elected above is subject to acceptance by Issuer in its sole discretion, effective as of the execution by Issuer of the Acceptance below. Warrant Holder further agrees to pay a fee to Issuer equal to one percent (1%) of the Exercised Purchase Price to defray all costs incurred by Issuer in connection with the issuance, process and redemption of the Warrant, which payment is tendered herewith.

 

3.                                      Please enroll the Issued Shares in the books and records of Issuer in the name of the undersigned Warrant Holder.

 

	
 
    	
CROWNIKK   USA, a North   Carolina limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
Date:
    	
                                                               ,   20      
    

 

1

 

Acceptance

 

EquiTrust USA (the “Trust”) hereby accepts the foregoing exercise of Warrant and method of payment elected above, effective as of                                     , 20        .

 

	
 
    	
EQUITRUST   USA, a Maryland   real estate investment trust
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    

 

2

 

EXHIBIT B

 

Assignment Form

 

To:                            EquiTrust USA

 

Subject to the consent of EquiTrust USA, a Maryland real estate investment trust (the “Trust”), the undersigned Warrant Holder hereby assigns and transfers to the person or entity named below (“Transferee”), the Warrant issued by Issuer to Holder pursuant to the Warrant Agreement dated as of               , 2013 (the “Warrant Agreement”), by and between Issuer and Holder:

 

	
Name:
    	
 
    
	
 
    	
 
    
	
Street Address:
    	
 
    
	
 
    	
 
    
	
City, State, and ZIP:
    	
 
    

 

This Assignment is made by Holder and Transferee on the terms and subject to the conditions set forth in the Warrant Agreement. The consent of Issuer, if granted in accordance with the Warrant Agreement, is affixed hereto; without such consent affixed, this Assignment shall be of no force or effect.

 

This Assignment, with the consent of Issuer affixed hereto, complies with the provisions of Section 10.02 of the Warrant Agreement and is accompanied by funds sufficient to pay all applicable transfer taxes.

 

	
 
    	
CROWNIKK   USA, a North   Carolina limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Date:
    	
                                                               ,   20      
    

 

Transferee Acceptance

 

The undersigned Transferee hereby accepts the assignment and transfer of the Warrant, and agrees to be bound by the provisions of the Warrant Agreement, as in force on the date set forth below.

 

	
 
    	
TRANSFEREE:
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Date:
    	
                                                               ,   20      
    

 

1

 

Consent

 

EquiTrust USA, a Maryland real estate investment trust (the “Trust”), hereby consents to the foregoing Assignment, effective as of                                     , 20        .

 

	
 
    	
EQUITRUST   USA, a Maryland   real estate investment trust
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    

 

2

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