Document:

EXHIBIT 10.8

                                                                  EXECUTION COPY

                        SETTLEMENT AND RELEASE AGREEMENT
                        --------------------------------

         This SETTLEMENT AND RELEASE AGREEMENT ("Agreement") is made as of the
13th day of August, 2007 (the "Effective Date"), by and between THE SAGEMARK
COMPANIES LTD. ("Sagemark") and TRIDENT ADVISORS, INC. ("Trident").

                              W I T N E S S E T H :
                              ---------------------

         WHEREAS, Sagemark and Trident entered into that certain Purchase
Agreement on November 9, 2005 (as amended, the "Purchase Agreement"), pursuant
to which Sagemark sold to Trident the 24.1% Limited Partnership Interest (the
"LP Interest") owned by Sagemark in Trident Growth Fund, L.P. ("Trident
Growth"), for a total purchase price of Two Million Five Hundred Seventy
Thousand Dollars ($2,570,000.00) (the "Purchase Price");

         WHEREAS, pursuant to and upon the execution of the Purchase Agreement,
Trident paid to Sagemark Six Hundred Twenty-Five Thousand Dollars ($625,000.00)
and issued and delivered to Sagemark a Secured Promissory Note (the "Note") in
the principal amount of One Million Nine Hundred Forty Five Thousand Dollars
($1,945,000.00), which amount represented the then balance of the Purchase
Price;

         WHEREAS, pursuant to the terms of the Note, Trident granted to Sagemark
a first priority lien and security interest (the "Security Interest") in the LP
Interest, as collateral security for Trident's obligation to make full and
timely payment of the principal amount of the Note and accrued interest thereon;

         WHEREAS, Trident has paid Sagemark an additional amount of Seventy-Five
Thousand Dollars ($75,000.00) pursuant to the Note, as a result of which the
balance of such Purchase Price due to Sagemark as of the date hereof is One
Million Nine Hundred Eighty Six Thousand Four Hundred Seventy Eight Dollars
($1,986,478.00), inclusive of both principal and accrued interest thereon; and

         WHEREAS, Trident has offered to pay to Sagemark, and Sagemark has
agreed to accept from Trident, the sum of One Million Dollars ($1,000,000.00)
(the "Discounted Purchase Price") in full and final payment of all amounts due
under the Note and in full and final satisfaction of all obligations of Trident
under the Purchase Agreement, all on and subject to the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the mutual covenants herein and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the undersigned do hereby agree as follows:

<PAGE>

         1.       Incorporation by Reference. The terms of the Purchase
Agreement and the Note are incorporated herein by reference thereto. All
capitalized terms which are used but not defined herein shall have the meanings
ascribed to them in the Purchase Agreement and/or the Note.

         2.       Payment of Discounted Purchase Price. Notwithstanding any
provision of the Purchase Agreement or the Note to the contrary, by execution of
this Agreement, Trident agrees to pay, and Sagemark agrees to accept, in full
and final payment of all amounts due under the Note and in full and final
satisfaction of all obligations of Trident under the Purchase Agreement (except
as provided in this Agreement), the Discounted Purchase Price, payable as
follows:

                  a.       Seven Hundred Seventy-Five Thousand Dollars
                           ($775,000.00), payable contemporaneously with the
                           execution of this Agreement; and

                  b.       Two Hundred Twenty-Five Thousand Dollars
                           ($225,000.00), payable on or before October 31, 2007
                           (the "Deferred Payment").

All amounts payable to Sagemark hereunder shall be paid by wire transfer at:

                           Bank of America
                           ABA # [REDACTED]
                           For Further Credit To:
                           The Sagemark Companies Ltd.
                           Account # [REDACTED]

         3.       Termination of Security Interest. Trident hereby covenants not
to encumber the LP Interest prior to Sagemark's receipt of the Discounted
Purchase Price. Trident and Sagemark hereby agree that subject to and upon full
and final payment of the Discounted Purchase Price, (a) Sagemark's Security
Interest in the LP Interest shall be immediately and automatically terminated
and be of no further force or effect, and Sagemark hereby authorizes Trident and
any of its agents or representatives to prepare and file any Uniform Commercial
Code termination statements or such other documents and instruments as are
necessary to evidence such termination (copies to be provided to Sagemark); (b)
Sagemark shall promptly deliver any and all originals of the Note to Trident;
and (c) any and all debts and obligations of Trident under the Purchase
Agreement and/or the Note shall be immediately and automatically released
(except as provided in this Agreement).

         4.       Default. Notwithstanding any provision in the Purchase
Agreement and/or the Note to the contrary, in the event that Trident fails to
pay the Deferred Payment to Sagemark on or before October 31, 2007, all amounts
paid hereunder shall be applied to the then outstanding balance of the Note as
of the date of such payment, and the remaining outstanding balance under the
Note shall be accelerated and shall be immediately due and payable in accordance
with the provisions thereof.

                                       2
<PAGE>

         5.       Mutual Releases.
                  ---------------

                  (a)      In consideration of the covenants and agreements set
forth in this Amendment, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Sagemark, for itself
and its subsidiaries, successors-in-interest, representatives, agents and
assigns (collectively, the "Sagemark Releasors") hereby releases and discharges
Trident, Trident Growth, Trident Management, LLC, and their respective officers,
directors, shareholders, partners, employees, heirs, administrators, executors,
representatives, attorneys, subsidiaries, successors and assigns acting as such
(collectively, the "Trident Releasees"), from any and all claims, demands,
causes of action, actions, judgments, liens, indebtedness, costs, damages,
obligations, fees, losses and liabilities of whatever kind and character,
whether known or unknown, foreseen or unforeseen, in law or equity, liquidated
or unliquidated, whether asserted personally, derivatively or in any other
capacity (all of the foregoing being collectively referred to herein as the
"Claims"), arising at any time from the beginning of time through the Release
Effective Date (defined below), including but not limited to Claims arising in
connection with or in any way related to the Purchase Agreement or the Note, and
all activities, transactions and obligations arising thereunder, provided that
nothing contained herein shall release the Trident Releasees from:

                           (i)      any claim of breach of any of Trident's
representations, warranties, covenants and/or obligations under this Agreement;

                           (ii)     any claim under Section 5.3 of the Purchase
Agreement with respect to capital contribution obligations of Sagemark as set
forth therein; and

                           (iii)    any Claims against any of the Trident
Releasees which cannot be released under applicable law.

Sagemark hereby (x) represents that none of the Sagemark Releasors have
instituted any action or suit against any of the Trident Releasees relating to
the Purchase Agreement or the Note, nor any activities, transactions and
obligations arising thereunder; and (y) covenants and agrees that none of the
Sagemark Releasors will institute any action or suit against any of the Trident
Releasees, nor in any way aid in the institution or prosecution of any such
action or suit by third parties, relating to the Purchase Agreement or the Note,
nor any activities, transactions and obligations arising thereunder. In the
event that the representation set forth in this paragraph is untrue, or the
covenant set forth in this paragraph is breached, Sagemark agrees to reimburse
those of the Trident Releasees which incur attorney's fees and/or costs in
connection with the defense of such actions or suits, their reasonable
attorney's fees and costs incurred in connection with the defense of such
actions or suits. Notwithstanding the foregoing, nothing contained in the
preceding paragraph (or elsewhere in this Agreement) will, or is intended to,
preclude or limit Sagemark from commencing an action to enforce its rights under
this Agreement.

                  (b)      In consideration of the covenants and agreements set
forth in this Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Trident, Trident
Growth, and Trident Management, LLC, for themselves and their respective

                                       3
<PAGE>

subsidiaries, successors-in-interest, representatives, agents and assigns
(collectively, the "Trident Releasors") hereby releases and discharges Sagemark
and its officers, directors, shareholders, partners, employees, heirs,
administrators, executors, representatives, attorneys, subsidiaries, successors
and assigns acting as such (collectively, the "Sagemark Releasees"), from any
and all Claims arising at any time from the beginning of time through the
Release Effective Date including but not limited to Claims arising in connection
with or in any way related to the Purchase Agreement or the Note, and all
activities, transactions and obligations arising thereunder, provided that
nothing contained herein shall release the Sagemark Releasees from:

                           (i)      any claim of breach of any of Sagemark's
representations, warranties, covenants and/or obligations under this Agreement;
and

                           (ii)     any Claims against any of the Sagemark
Releasees which cannot be released under applicable law.

Trident hereby (x) represents that none of the Trident Releasors have instituted
any action or suit against any of the Sagemark Releasees relating to the
Purchase Agreement or the Note, nor any activities, transactions and obligations
arising thereunder; and (y) covenants and agrees that none of the Trident
Releasors will institute any action or suit against any of the Sagemark
Releasees, nor in any way aid in the institution or prosecution of any such
action or suit by third parties, relating to the Purchase Agreement or the Note,
nor any activities, transactions and obligations arising thereunder. In the
event that the representation set forth in this paragraph is untrue, or the
covenant set forth in this paragraph is breached, Trident agrees to reimburse
those of the Sagemark Releasees which incur attorney's fees and/or costs in
connection with the defense of such actions or suits, their reasonable
attorney's fees and costs incurred in connection with the defense of such
actions or suits. Notwithstanding the foregoing, nothing contained in the
preceding paragraph (or elsewhere in this Agreement) will, or is intended to,
preclude or limit Trident from commencing an action to enforce its rights under
this Agreement.

                  (c)      The releases and covenants set forth in this Section
5 shall take effect upon, and are subject to Sagemark's receipt of the payment
set forth in Section 2(b) hereof (the "Release Effective Date").

         6.       Inconsistencies. To the extent there is any inconsistency
between the terms of the Purchase Agreement and/or the Note, and the terms of
this Agreement, the terms of this Agreement shall govern and control.

         7.       Representations of the Parties. All action on the part of
Sagemark and Trident necessary for the authorization, execution, delivery and
performance of this Agreement and the consummation of the transactions
contemplated hereby, has been taken and this Agreement constitutes a valid and
legally binding obligation of Sagemark and Trident, enforceable in accordance
with its terms, except as the same may be limited by bankruptcy, insolvency,
reorganization, moratorium, or other laws affecting generally the enforcement of
creditors' rights and by general principles of equity.

                                       4
<PAGE>

         8.       Further Assurances. The parties hereto agree to execute and
deliver such instruments as are reasonably necessary to effectuate the
transactions contemplated by this Termination.

         9.       Governing Law. This Agreement shall be construed in accordance
with the laws of the State of Texas, excluding its conflicts of laws provisions.

         10.      Facsimile Execution; Multiple Originals. This Agreement may be
executed by facsimile signature, which shall be deemed an original, and in
multiple counterparts, all of which, together will constitute one and the same
document.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK]
                       [SIGNATURES CONTINUE ON NEXT PAGE]

                                       5
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have hereunto set their hands
and seals as of the day and year first above written.

ATTEST:                                THE SAGEMARK COMPANIES LTD.

/s/ George W. Mahoney                  By: /s/ Ron Lipstein
----------------------------------         -------------------------------------
                                          Ron Lipstein, President and
                                          Chief Executive Officer
George W. Mahoney
----------------------------------
Print Name

ATTEST:                                TRIDENT ADVISORS, INC.

/s/ Karen M. Stern                     /s/ Scott Cook
----------------------------------     -----------------------------------------
Karen M. Stern                         Scott Cook, President
Print Name

                                 LIMITED JOINDER
                                 ---------------

         The undersigned hereby join in the execution of this Agreement solely
to evidence (a) their consent to the release provisions set forth in Section 5
of this Agreement, and (b) that they have received good and valuable independent
consideration in connection with such covenant.

ATTEST:                                TRIDENT GROWTH FUND, L.P.

/s/ Karen M. Stern                     By: /s/ Scott Cook
----------------------------------         -------------------------------------
Karen M. Stern                             Scott Cook, General Partner
Print Name                                 Print Name and Title

ATTEST:                                TRIDENT MANAGEMENT, LLC

/s/ Karen M. Stern                     /s/ Scott Cook
----------------------------------     -----------------------------------------
Karen M. Stern                         Scott Cook, Managing Member
Print Name                             Print Name and Title

                                       6<PAGE>

                                                                     EXHIBIT 4.1

THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT
AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO AETHLON MEDICAL, INC. THAT SUCH REGISTRATION IS NOT REQUIRED.

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

                          COMMON STOCK PURCHASE WARRANT

No. 0813-______                                      Issue Date: August 13, 2007

         AETHLON MEDICAL, INC., a corporation organized under the laws of the
State of Nevada (the "Company"), hereby certifies that, for value received,
____________________. or its assigns (the "Holder"), is entitled, subject to the
terms set forth below, to purchase from the Company at any time after the Issue
Date until 5:00 p.m., P.S.T. on the third anniversary of the Issue Date (the
"Expiration Date"), up to _________________________ (XXX,000) fully paid and
nonassessable shares of the common stock of the Company (the "Common Stock"), at
a per share purchase price of $0.50. The aforedescribed purchase price per
share, as adjusted from time to time as herein provided, is referred to herein
as the "Purchase Price." The number and character of such shares of Common Stock
and the Purchase Price are subject to adjustment as provided herein. The Company
may reduce the Purchase Price without the consent of the Holder.

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

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

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

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

         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

<PAGE>

                  1.2. FULL EXERCISE. This Warrant may be exercised in full by
the Holder hereof by delivery of an original or facsimile copy of the form of
subscription attached as Exhibit A hereto (the "Subscription Form") duly
executed by such Holder and surrender of the original Warrant within seven (7)
days of exercise, to the Company at its principal office or at the office of its
Warrant Agent (as provided hereinafter), accompanied by payment, in cash, wire
transfer or by certified or official bank check payable to the order of the
Company, 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 or by cashless exercise in the manner set forth in Section 2.

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

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

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

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

         2. REGISTRATION RIGHTS. The Company shall file a registration statement
on Form SB-2 or other appropriate registration form under the Securities Act
(the "Registration Statement") for the registration of the shares of Common
Stock underlying this Warrant (the "Warrant Shares") and shall use its
reasonable best efforts to maintain the Registration Statement effective so long
as this Warrant is outstanding (the "Effectiveness Period"). The Company shall
file such Registration Statement no later than sixty (60) days after August 13,
2007; provided, however, the Company will not be obligated to register more than
33% of its issued and outstanding shares of Common Stock on such registration

                                       2

<PAGE>

statement. If the number of shares of Common Stock and the Warrant Shares
proposed to be registered thereunder exceeds such 33% limitation, the Company
will cut back the number of shares being registered in order for it to adhere to
such 33% limitation, and such cut back will be applied to the holders of the
shares being registered (including the Holder hereof) on a pro rata basis. The
Company shall also use its best efforts to ensure that such Registration
Statement is declared effective within one hundred and eighty (180) calendar
days from August 13, 2007. Except as otherwise expressly set forth, the Company
shall bear all expenses incurred by the Company in compliance with this
registration obligation of the Company, including, without limitation, all
registration and filing fees, printing expenses, fees and disbursements of
counsel for the Company incurred in connection with any registration,
qualification or compliance concerning the Warrant Shares.

         3. ADJUSTMENT FOR REORGANIZATION, CONSOLIDATION, MERGER, ETC.

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

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

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

         4. EXTRAORDINARY EVENTS REGARDING COMMON STOCK. In the event that the
Company shall (a) issue additional shares of the Common Stock as a dividend or
other distribution on outstanding Common Stock, (b) subdivide its outstanding
shares of Common Stock, or (c) combine its outstanding shares of the Common
Stock into a smaller number of shares of the Common Stock, then, in each such
event, the Purchase Price shall, 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.

                                       3

<PAGE>

The number of shares of Common Stock that the Holder of this Warrant shall
thereafter, on the exercise hereof as provided in Section 1, 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.

         5. CERTIFICATE AS TO ADJUSTMENTS. In each case of any adjustment or
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise of the Warrants, the Company at its expense will promptly cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or readjustment in accordance with the terms of the Warrant and prepare a
certificate setting forth such adjustment or readjustment and showing in detail
the facts upon which such adjustment or readjustment is based, including a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to have been issued or sold, (b) the number of shares of Common Stock (or Other
Securities) outstanding or deemed to be outstanding, and (c) the Purchase Price
and the number of shares of Common Stock to be received upon exercise of this
Warrant, in effect immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Warrant. The Company will forthwith
mail a copy of each such certificate to the Holder of the Warrant and any
Warrant Agent of the Company (appointed pursuant to Section 11 hereof).

         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 at its expense, but with payment by the Transferor of any
applicable transfer taxes, will issue and deliver to or on the order of the
Transferor thereof a new Warrant or Warrants of like tenor, in the name of the
Transferor and/or the transferee(s) specified in such Transferor Endorsement
Form (each a "Transferee"), calling in the aggregate on the face or faces
thereof for the number of shares of Common Stock called for on the face or faces
of the Warrant so surrendered by the Transferor. No such transfers shall result
in a public distribution of the Warrant.

         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.

                                       4

<PAGE>

         9. 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.

         10. 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.

         11. NOTICES. All notices, demands, requests, consents, approvals, and
other communications required or permitted hereunder shall be in writing and,
unless otherwise specified herein, shall be (i) personally served, (ii)
deposited in the mail, registered or certified, return receipt requested,
postage prepaid, (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed
as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or delivery by facsimile, with accurate confirmation generated by the
transmitting facsimile machine, at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is
to be received) or (b) on the second business day following the date of mailing
by express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be: (i) if to the Company to: Aethlon Medical, Inc.,
3030 Bunker Hill Street, Suite 4000, San Diego, California 92109, FAX: (858)
332-1739, with a copy by facsimile only to: Richardson & Patel LLP, 10900
Wilshire Boulevard, Suite 500, Los Angeles, CA 90024, Attn: Nimish Patel, Esq.,
telecopier: (310) 208-1154, (ii) if to the Holder, to the address and facsimile
number listed on the first paragraph of this Warrant.

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

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

                              AETHLON MEDICAL, INC.

                                    By: /s/ James A. Joyce
                                        ----------------------------------------
                                    Name: James A. Joyce
                                    Title:  Chairman and Chief Executive Officer

  Witness:

----------------------------

                                       5

<PAGE>

                                    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:

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

Address: __________________________________

         __________________________________

         __________________________________

                                       6
<PAGE>

                                  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: ____________________,__________

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

Signed in the presence of:

_______________________________        _____________________________________
        (Name)
                                       _____________________________________
                                            (address)

ACCEPTED AND AGREED:                   _____________________________________
[TRANSFEREE]
                                       _____________________________________
                                            (address)

_______________________________
        (Name)

                                       7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]