Document:

Exhibit 10.4

 

Supplement
No. 1

To
the 

 SECURITIES PURCHASE AGREEMENT

Dated
November 2011

of

AETHLON MEDICAL, INC.

 

This Supplement No. 1 to the Securities
Purchase Agreement (the “Supplement”) supplements the Securities Purchase Agreement (the “Purchase
Agreement”) of Aethlon Medical, Inc. (the “Company”) dated as of November 2011. The purpose of this
Supplement is to advise you of the extension of the Offering and replace certain disclosures in the Purchase Agreement, as more
fully described below.

 

This Supplement is incorporated by reference
into, and should be read in conjunction with, the Purchase Agreement. This Supplement is not complete without, and may not be delivered
or utilized except in connection with the Purchase Agreement.

 

By accepting this Supplement, you agree
to hold all information contained herein in the strictest confidence and not to use this information for any purpose other than
to analyze an investment in the Company named above. Failure to comply with this directive can result in a violation of the Securities
Act of 1933, as amended (the “Securities Act"). Any further distribution or reproduction of this Supplement,
the Purchase Agreement or the other documents provided to you in connection with your investment or potential investment in the
Company, in whole or in part, or the disclosure of any of its contents by an offeree, is unauthorized.

 

The recipient, by accepting delivery
of this Supplement, agrees to return this Supplement and all accompanying or related documents to the Company named above if the
recipient does not agree to purchase any of the securities offered in the Purchase Agreement.

 

Capitalized terms used but not defined
herein shall have the meanings set forth in the Purchase Agreement. Except as expressly set forth in this Supplement and the Purchase
Agreement, including all disclosures therein and all exhibits thereto, shall continue unmodified.

 

Extension of the Termination Date
of the Offering

 

The Offering, as originally contemplated
and disclosed in the Purchase Agreement, was to continue until the earlier of (i) the closing on the Maximum Offering or (ii) December
31, 2011, subject to the right of the Company and the Placement Agent to mutually extend the Termination Date to January 31, 2012
without notice to prospective investors (the “Termination Date”). The parties have now decided to further extend
the Termination Date until February 28, 2012, subject to the right of the Company and the Placement Agent to mutually extend the
Termination Date to March 31, 2012 without notice to prospective investors. Accordingly, this Supplement is deemed to supplement
and replace the disclosure in the Purchase Agreement and in the exhibits attached thereto discussing the Termination Date of the
Offering. Specifically, Section 1.2 of the Purchase Agreement is hereby amended and restated in its entirety as follows:

 

“1.2 The Securities will
be offered for sale until the earlier of (i) the closing on the Maximum Offering or (ii) February 28, 2012, subject to the right
of the Company and the Placement Agent to mutually extend the termination date to March 31, 2012 without notice to prospective
investors (the “Termination Date”). The Offering is being conducted on a “best-efforts” basis. There is
no minimum required to be raised in the Offering.”

 

You are receiving this Supplement because
you have received a copy of the Purchase Agreement. By executing and returning this Supplement to the Company, you are acknowledging
(i) your receipt of this Supplement, and (ii) that you are aware of the changes to the Purchase Agreement as described in this
Supplement.

 

 

 

[Remainder of the Page Intentionally
Blank]

    	 

    	 

    

[ACKNOWLEDGEMENT
SIGNATURE PAGE TO THE SUPPLEMENT]

 

By signing
below, the undersigned (i) agrees to continue as a subscriber in the Offering pursuant to the terms of the Offering as revised
and amended, as described herein; (ii) represents and warrants to the Company that he/she/it has read and reviewed this Supplement
and that he/she/it fully understands the revised terms of the Offering, as described herein; and (iii) confirms all prior representations,
warranties and understandings made in the Purchase Agreement as of this ___
day of _____________, 2012.

 

	INDIVIDUALS:	ENTITIES:
	 	 
	 	 
	____________________________	____________________________
	Print Name	Print Name of Entity
	 	 
	 	 
	____________________________	____________________________
	Signature	Print Name of Authorized Signatory
	 	 
	 	 
	____________________________	____________________________
	Print Name of joint investor or	Signature of Authorized Signatory
	other person whose signature is	 
	required	 
	 	 
	 	 
	____________________________	 
	SignatureExhibit 10.1

 

AGREEMENT TO EXTEND AND INCREASE FIRST
LINE OF CREDIT LOAN AGREEMENT AND PROMISSORY NOTE, TO CANCEL STOCK PURCHASE AGREEMENT, AND TO GRANT OPTION IN VN TECH AGREEMENT

 

This Agreement (“Extension
Agreement”) is entered into by and between VelaTel Global Communications, Inc. (formerly known as China Tel Group, Inc.),
a Nevada corporation (“VelaTel”), and Isaac Organization, Inc., a Canadian corporation organized under the laws of
Ontario (“Isaac”), or its assigns, as of February 23, 2012 (“Effective Date”). VelaTel and Isaac are each
sometimes referred to individually in this Agreement as a “Party” and together as “Parties.”

RECITALS

A.                 
The Parties originally entered into a stock purchase agreement on February 9, 2010. The
terms of that stock purchase agreement have been amended several times, most recently as of May 10, 2011 (collectively “SPA”).
Each Party acknowledges the other Party has fully performed all its obligations under the SPA except those not heretofore due or
triggered. The Parties now mutually desire to cancel and terminate all of their respective executor obligations under the SPA.

B.                 
Effective July 1, 2011, the Parties entered into that certain First Line of Credit Loan
Agreement and Promissory Note (“First Note”) in the principal amount of up to $5,000,000. The First Note became due
and payable on December 31, 2011 (“Due Date”). The Parties now mutually desire to extend the Due Date for the First
Note and increase the credit limit under the First Note to reflect the total amount actually borrowed, namely $6,385,000.00 actually
disbursed, plus 5% Holdback fees totaling $336,052.63, for a total principal balance of $6,721,052.63. Interest in the amount of
$332,793.99 has accrued on the principal balance, for a total amount due as of February 23, 2012 of $7,053,846.62 (“Pre-Extension
Total Amount Due”).

C.                 
The Parties are entering into a Second Line of Credit Loan Agreement and Promissory Note
(“Second Note”) separate from this Extension Agreement.

D.                 
The Parties intend that the debt financing represented by the First Note and the Second
Note will replace the equity financing represented by the unfunded portion of SPA.

E.                  
As part of this Extension Agreement, VelaTel is granting Isaac an option to purchase up
to 51% of the total equity pursuant to the Subscription and Shareholder Agreement between VelaTel and Shenzhen VN Technologies
Co., Ltd. dated April 1, 2011 (“VN Tech Agreement”).

NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties to this Extension Agreement agree as follows:

AGREEMENT

1.                  
INCREASED BALANCE OF FIRST NOTE. The principal balance of the First Note is hereby
increased to $7,425,101.71 (“Increased Principal Balance”), representing the Pre-Extension Total Amount Due plus an
additional Holdback of $371,259.05, representing 5% of the Pre-Extension Total Amount Due. Interest shall accrue on the Increased
Principal Balance at the rate of 10% per annum.

2.                  
EXTENSION OF FIRST NOTE DUE DATE. The First Note Due Date is hereby extended until
June 30, 2012. Isaac waives any Default based on VelaTel’s failure to repay the First Note in full on or before the Due Date.

 

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3.                  
RIGHT TO CONVERT. The Parties agree to add a conversion feature granting Isaac an
option to at any time convert all or any portion of the balance of principal and interest due under the First Note to shares of
VelaTel’s Series A common stock (“Shares”) to Isaac or any of its assigns. The details of the conversion feature
will be agreed to between the Parties when VelaTel has additional authorized Shares available for issuance.

4.                  
ASSIGNMENT. Isaac shall have the right to assign its rights under this Second Note
in whole or in part.

5.                  
INCORPORATION BY REFERENCE. Except as amended, all terms of the First Note remain
in full force and effect.

6.                  
CANCELLATION OF SPA. VelaTel and Isaac do each hereby acknowledge cancellation and
termination of all obligations of the other Party under the SPA except those already performed prior to the Effective Date of this
Extension Agreement.

7.                  
OPTION GRANT IN VN TECH AGREEMENT. Under the VN Tech Agreement, VelaTel is to acquire
a 51% interest in a joint venture to distribute hydrogen fuel cell technology. VelaTel hereby grants Isaac an option to acquire
VelaTel’s 51% joint venture interest at a price to be determined based on Isaac’s due diligence and a mutually agreed
valuation of the value of the venture. If Isaac exercises its option to acquire VelaTel’s 51% interest, the agreed value
of that interest shall be treated as an offset to the amount otherwise due under this First Note.

 

	VELATEL GLOBAL COMMUNICATIONS INC.	 	ISAAC ORGANIZATION, INC.
	
        By: /s/ George Alverez______________________

        George Alvarez, its Chief Executive Officer
	 	
        By:  /s/ Antonios Isaac____________________________

Antonios
Isaac, its Chief Executive Officer 

        

	
        12526 High Bluff Drive, Suite 155

        San Diego, CA 92130, USA

        Facsimile:760.230.7042

        Email:galvarez@velatel.com
	 	
        105 Schneider Road

        Ottawa, Ontario K2K 1Y3, CANADA

        Facsimile:613.254.8912

        Email:tony@isaac.com

 

 

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