Document:

Exhibit 10.4

 

INDEMNIFICATION AGREEMENT

 

This
Indemnification Agreement (this “Agreement”) dated as of December __, 20__, is made by and
between Aethlon Medical, Inc., a Nevada corporation (the “Company”),
and __________________ (“Indemnitee”).

 

Recitals

 

A.       The
Company desires to attract and retain the services of highly qualified individuals as directors, officers, employees and agents.

 

B.       The
Company’s Bylaws (the “Bylaws”) require that the Company indemnify its directors and officers,
as authorized by Chapter 78 of the Nevada Revised Statutes, as amended (the “NRS”), under which the Company
is organized and such Bylaws expressly provide that the indemnification provided therein is not exclusive and contemplate that
the Company may enter into separate agreements with its directors, officers and other persons to set forth specific indemnification
provisions.

 

C.       Indemnitee
does not regard the protection currently provided by applicable law, the Company’s governing documents and available insurance
as adequate under the present circumstances, and the Company has determined that Indemnitee and other directors, officers, employees
and agents of the Company may not be willing to serve or continue to serve in such capacities without additional protection.

 

D.       The
Company desires and has requested Indemnitee to serve or continue to serve as a director, officer, employee or agent of the Company,
as the case may be, and has proffered this Agreement to Indemnitee as an additional inducement to serve in such capacity.

 

E.       Indemnitee
is willing to serve, or to continue to serve, as a director, officer, employee or agent of the Company, as the case may be, if
Indemnitee is furnished the indemnity provided for herein by the Company.

 

Agreement

 

Now
Therefore, in consideration of the mutual covenants and agreements set forth herein, the parties hereto, intending to
be legally bound, hereby agree as follows:

 

1.                 
Definitions.

 

(a)              
Agent. For purposes of this Agreement, the term “agent” of the Company means any person who:
(i) is or was a director, officer, employee or other fiduciary of the Company or a subsidiary of the Company; or (ii) is
or was serving at the request or for the convenience of, or representing the interests of, the Company or a subsidiary of the Company,
as a director, officer, employee or other fiduciary of a foreign or domestic corporation, partnership, joint venture, trust or
other enterprise.

 

 

 

 

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(b)              
Expenses. For purposes of this Agreement, the term “expenses” shall be broadly construed and
shall include, without limitation, all direct and indirect costs of any type or nature whatsoever (including, without limitation,
all attorneys’, witness, or other professional fees and related disbursements, premiums, security for and other costs relating
to any bonds and other out-of-pocket costs of whatever nature), actually and reasonably incurred by Indemnitee in connection with
the investigation, defense or appeal of a proceeding or establishing or enforcing a right to indemnification under this Agreement,
the NRS or otherwise, and amounts paid in settlement by or on behalf of Indemnitee, but shall not include any judgments, fines
or penalties actually levied against Indemnitee for such individual’s violations of law. The term “expenses”
shall also include reasonable compensation for time spent by Indemnitee for which he is not compensated by the Company or any subsidiary
or third party (i) for any period during which Indemnitee is not an agent, in the employment of, or providing services for compensation
to, the Company or any subsidiary; and (ii) if the rate of compensation and estimated time involved is approved by the directors
of the Company who are not parties to any action with respect to which expenses are incurred, for Indemnitee while an agent of,
employed by, or providing services for compensation to, the Company or any subsidiary.

 

(c)               
Proceedings. For purposes of this Agreement, the term “proceeding” shall be broadly construed
and shall include, without limitation, any threatened, pending, or completed action, suit, arbitration, alternate dispute resolution
mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought
in the right of the Company or otherwise and whether of a civil, criminal, administrative or investigative nature, and whether
formal or informal in any case, in which Indemnitee was, is or will be involved as a party or otherwise by reason of: (i) the fact
that Indemnitee is or was a director or officer of the Company; (ii) the fact that any action taken by Indemnitee or of any action
on Indemnitee’s part while acting as director, officer, employee or agent of the Company; or (iii) the fact that Indemnitee
is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust, employee benefit plan or other enterprise, and in any such case described above, whether or not serving in
any such capacity at the time any liability or expense is incurred for which indemnification, reimbursement, or advancement of
expenses may be provided under this Agreement.

 

(d)              
Subsidiary. For purposes of this Agreement, the term “subsidiary” means any corporation or
limited liability company of which more than 50% of the outstanding voting securities or equity interests are owned, directly or
indirectly, by the Company and one or more of its subsidiaries, and any other corporation, limited liability company, partnership,
joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Company
as a director, officer, employee, agent or fiduciary.

 

(e)               
Independent Counsel. For purposes of this Agreement, the term “independent counsel” means
a law firm, or a partner (or, if applicable, member) of such a law firm, that is experienced in matters of corporation law and
neither presently is, nor in the past five (5) years has been, retained to represent: (i) the Company or Indemnitee in any matter
material to either such party, or (ii) any other party to the proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term “independent counsel” shall not include any person who, under
the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

 

 

 

 

 

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2.                 
Agreement to Serve. Indemnitee will serve, or continue to serve, as a director, officer, employee or agent of the Company
or any subsidiary, as the case may be, faithfully and to the best of his ability, at the will of such corporation (or under separate
agreement, if such agreement exists), in the capacity Indemnitee currently serves as an agent of such corporation, so long as Indemnitee
is duly appointed or elected and qualified in accordance with the applicable provisions of the bylaws or other applicable charter
documents of such corporation, or until such time as Indemnitee tenders his resignation in writing; provided, however, that nothing
contained in this Agreement is intended as an employment agreement between Indemnitee and the Company or any of its subsidiaries
or to create any right to continued employment of Indemnitee with the Company or any of its subsidiaries in any capacity.

 

The Company acknowledges
that it has entered into this Agreement and assumes the obligations imposed on it hereby, in addition to and separate from its
obligations to Indemnitee under the Bylaws, to induce Indemnitee to serve, or continue to serve, as a director, officer, employee
or agent of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director,
officer, employee or agent of the Company.

 

3.                 
Indemnification.

 

(a)               
Indemnification in Third Party Proceedings. Subject to Section 10 below, the Company shall indemnify Indemnitee
if Indemnitee, by reason of such person’s agent status, is a party to or threatened to be made a party to or otherwise involved
in any proceeding, for any and all expenses, actually and reasonably incurred by Indemnitee in connection with the investigation,
defense, settlement or appeal of such proceeding.

 

(b)              
Indemnification in Derivative Actions and Direct Actions by the Company. Subject to Section 10 below, the Company shall
indemnify Indemnitee, if Indemnitee, by reason of such person’s agent status, is a party to or threatened to be made a party
to or otherwise involved in any proceeding by or in the right of the Company to procure a judgment in its favor, against any and
all expenses actually and reasonably incurred by Indemnitee in connection with the investigation, defense, settlement, or appeal
of such proceedings.

 

(c)               
 Additional Indemnity. In addition to the indemnification provided for in Sections 3(a) and 3(b) but subject to the
other provisions of this Agreement, the Company shall and hereby does indemnify and hold harmless Indemnitee against all expenses
incurred or paid by Indemnitee or on Indemnitee’s behalf if Indemnitee is, or is threatened to be made, a party to or participant
in any proceeding (including a proceeding by or in the right of the Company), including, without limitation, all liability arising
out of the negligence or active or passive wrongdoing of Indemnitee. Subject to the other provisions of this Agreement, the only
limitation that shall exist upon the Company’s obligations pursuant to this Agreement shall be that the Company shall not
be obligated to make any payment to Indemnitee that is finally determined to be unlawful under Nevada law, applicable state or
federal securities laws or other applicable law.

 

 

 

 

 

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4.                 
Indemnification of Expenses of Successful Party. Notwithstanding any other provision of this Agreement, to the extent
that Indemnitee has been successful on the merits or otherwise in defense of any proceeding or in defense of any claim, issue or
matter therein, including the dismissal of any action without prejudice, the Company shall indemnify Indemnitee against all expenses
actually and reasonably incurred in connection with the investigation, defense or appeal of such proceeding. The Company and Indemnitee
acknowledge and agree that settlement of claims prior to final adjudication shall be deemed to be success on the merits.

 

5.                 
Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company
for some or a portion of any expenses actually and reasonably incurred by Indemnitee in the investigation, defense, settlement
or appeal of a proceeding, but is precluded by applicable law or the specific terms of this Agreement to indemnification for the
total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

 

6.                 
Advancement of Expenses. To the extent not prohibited by law, the Company shall advance the expenses incurred by Indemnitee
in connection with any proceeding, and such advancement shall be made within twenty (20) days after the receipt by the Company
of a statement or statements requesting such advances (which shall include invoices received by Indemnitee in connection with such
expenses but, in the case of invoices in connection with legal services, any references to legal work performed or to expenditures
made that would cause Indemnitee to waive any privilege accorded by applicable law shall not be included with the invoice) and
upon request of the Company, an undertaking to repay the advancement of expenses if and to the extent that it is ultimately determined
by a court of competent jurisdiction in a final judgment, not subject to appeal, that Indemnitee is not entitled to be indemnified
by the Company. Advances shall be unsecured, interest free and without regard to Indemnitee’s ability to repay the advances.
Advances shall include any and all expenses actually and reasonably incurred by Indemnitee pursuing an action to enforce Indemnitee’s
right to indemnification under this Agreement or otherwise and this right of advancement, including expenses incurred preparing
and forwarding statements to the Company to support the advances claimed. Indemnitee acknowledges that the execution and delivery
of this Agreement shall constitute an undertaking providing that Indemnitee shall, to the fullest extent required by law, repay
the advance if and to the extent that it is ultimately determined by a court of competent jurisdiction in a final judgment, not
subject to appeal, that Indemnitee is not entitled to be indemnified by the Company. The right to advances under this Section shall
continue until final disposition of any proceeding, including any appeal therein. This Section 6 shall not apply to any claim made
by Indemnitee for which indemnity is excluded pursuant to Section 10(b).

 

7.                 
Notice and Other Indemnification Procedures.

 

(a)              
Notification of Proceeding. Indemnitee will notify the Company in writing promptly upon being served with any summons,
citation, subpoena, complaint, indictment, information or other document relating to any proceeding or matter which may be subject
to indemnification or advancement of expenses covered hereunder. The failure of Indemnitee to so notify the Company shall not relieve
the Company of any obligation which it may have to Indemnitee under this Agreement or otherwise.

 

 

 

 

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(b)              
Request for Indemnification and Indemnification Payments. Indemnitee shall notify the Company promptly in writing upon
receiving notice of any demand, judgment or other requirement for payment that Indemnitee reasonably believes to be subject to
indemnification under the terms of this Agreement, and shall request payment thereof by the Company. Indemnification payments requested
by Indemnitee under Section 3 hereof shall be made by the Company no later than thirty (30) days after receipt of the written
request of Indemnitee. Claims for advancement of expenses shall be made under the provisions of Section 6 herein.

 

(c)               
Application for Enforcement. In the event the Company fails to make timely payments as set forth in Sections 6 or 7(b)
above, Indemnitee shall have the right to apply to any court of competent jurisdiction for the purpose of enforcing Indemnitee’s
right to indemnification or advancement of expenses pursuant to this Agreement. In such an enforcement hearing or proceeding, the
burden of proof shall be on the Company to prove that indemnification or advancement of expenses to Indemnitee is not required
under this Agreement or permitted by applicable law. Any determination by the Company (including its Board of Directors, stockholders
or independent counsel) that Indemnitee is not entitled to indemnification hereunder, shall not be a defense by the Company to
the action nor create any presumption that Indemnitee is not entitled to indemnification or advancement of expenses hereunder.

 

(d)              
Indemnification of Certain Expenses. The Company shall indemnify Indemnitee against all expenses incurred in connection
with any hearing or proceeding under this Section 7 unless the Company prevails in such hearing or proceeding on the merits
in all material respects.

 

(e)               
Contribution in the Event of Joint Liability.

 

(i)                
Whether or not the indemnification provided in Section 3 hereof is available, and except to the extent that the
amounts owed by Indemnitee are in respect of judgments, fines or penalties actually levied against Indemnitee for such individual’s
violation of law, in respect of any proceeding in which the Company is jointly liable with Indemnitee, the Company shall pay, in
the first instance, the entire amount of any expenses of such proceeding without requiring Indemnitee to contribute to such payment
and the Company hereby waives and relinquishes any right of contribution it may have against Indemnitee.

 

(ii)              
Without diminishing or impairing the obligations of the Company set forth in the preceding subparagraph, and except
to the extent that the amounts owed by Indemnitee are in respects of judgments, fines or penalties actually levied against Indemnitee
for such individual’s violations of law, if, for any reason, Indemnitee shall elect or be required to pay all or any portion
of expenses in any proceeding in which the Company is jointly liable with Indemnitee, the Company shall contribute to the amount
of expenses actually and reasonably incurred and paid or payable by Indemnitee in proportion to the relative benefits received
by the Company and all officers, directors or employees of the Company, other than any Indemnitee, who are jointly liable with
such Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand,
from the transaction from which such proceeding arose; provided, however, that the proportion determined on the basis of relative
benefit may, to the extent necessary to conform to law, be further adjusted by reference to the relative fault of the Company and
all officers, directors or employees of the Company other than any Indemnitee who are jointly liable with such Indemnitee (or would
be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, in connection with the events
that resulted in such expenses, as well as any other equitable considerations which the NRS may require to be considered. The relative
fault of the Company and all officers, directors or employees of the Company, other than any Indemnitee, who are jointly liable
with such Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and such Indemnitee, on the other
hand, shall be determined by reference to, among other things, the degree to which their actions were motivated by intent to gain
personal profit or advantage, the degree to which their liability is primary or secondary and the degree to which their conduct
is active or passive.

 

 

 

 

 

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(iii)            
Except to the extent based on transactions for which the applicable Indemnitee has had judgments, fines or penalties
actually levied against Indemnitee for such individual’s violations of law, the Company hereby agrees to fully indemnify
and hold each Indemnitee harmless from any claims of contribution which may be brought by officers, directors or employees of the
Company, other than any Indemnitee, who may be jointly liable with such Indemnitee.

 

8.                 
Assumption of Defense. In the event the Company shall be requested by Indemnitee to pay the expenses of any proceeding,
the Company, if appropriate, shall be entitled to assume the defense of such proceeding, or to participate to the extent permissible
in such proceeding, with counsel reasonably acceptable to Indemnitee. Upon assumption of the defense by the Company and the retention
of such counsel by the Company, the Company shall not be liable to Indemnitee under this Agreement for any fees of counsel subsequently
incurred by Indemnitee with respect to the same proceeding, provided that Indemnitee shall have the right to employ separate counsel
in such proceeding at Indemnitee’s sole cost and expense. Notwithstanding the foregoing, if Indemnitee’s counsel delivers
a written notice to the Company stating that such counsel has reasonably concluded that there is an actual or potential conflict
of interest between the Company and Indemnitee in the conduct of any such defense or the Company shall not, in fact, have employed
counsel or otherwise actively pursued the defense of such proceeding within a reasonable time, then in any such event the fees
and expenses of Indemnitee’s counsel to defend such proceeding shall be subject to the indemnification and advancement of
expenses provisions of this Agreement. In the event the Company assumes the defense of such proceeding, as contemplated herein,
the Company may not enter into a settlement of claims with respect to such proceeding as it relates to claims against Indemnitee
without the prior consent of the Indemnitee, which shall not be unreasonably withheld.

 

9.                 
Insurance. To the extent that the Company maintains an insurance policy or policies providing liability insurance for
directors, officers, employees, or agents of the Company or of any subsidiary (“D&O Insurance”),
Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage
available for any such director, officer, employee or agent under such policy or policies. If, at the time of the receipt of a
notice of a claim pursuant to the terms hereof, the Company has D&O Insurance in effect, the Company shall give prompt notice
of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies.
The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all
amounts payable as a result of such proceeding in accordance with the terms of such policies.

 

 

 

 

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10.             
Exceptions.

 

(a)              
Certain Matters. Any provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to
the terms of this Agreement to indemnify Indemnitee on account of any proceeding with respect to (i) remuneration paid to
Indemnitee if it is determined by final judgment or other final adjudication that such remuneration was in violation of law (and,
in this respect, both the Company and Indemnitee have been advised that the Securities and Exchange Commission believes that indemnification
for liabilities arising under the federal securities laws is against public policy and is, therefore, unenforceable and that claims
for indemnification should be submitted to appropriate courts for adjudication, as indicated in Section 10(d) below); (ii) a
final judgment rendered against Indemnitee for an accounting, disgorgement or repayment of profits made from the purchase or sale
by Indemnitee of securities of the Company against Indemnitee or in connection with a settlement by or on behalf of Indemnitee
to the extent it is acknowledged by Indemnitee and the Company that such amount paid in settlement resulted from Indemnitee's conduct
from which Indemnitee received monetary personal profit, pursuant to the provisions of Section 16(b) of the Securities Exchange
Act of 1934, as amended, or other provisions of any federal, state or local statute or rules and regulations thereunder; (iii) a
final judgment or other final adjudication that Indemnitee’s conduct was in bad faith, knowingly fraudulent or deliberately
dishonest or constituted willful misconduct (but only to the extent of such specific determination); or (iv) on account of conduct
that is established by a final judgment as constituting a breach of Indemnitee’s duty of loyalty to the Company or resulting
in any personal profit or advantage to which Indemnitee is not legally entitled. For purposes of the foregoing sentence, a final
judgment or other adjudication may be reached in either the underlying proceeding or action in connection with which indemnification
is sought or a separate proceeding or action to establish rights and liabilities under this Agreement.

 

(b)              
Claims Initiated by Indemnitee. Any provision herein to the contrary notwithstanding, the Company shall not be obligated
to indemnify or advance expenses to Indemnitee with respect to proceedings or claims initiated or brought by Indemnitee against
the Company or its directors, officers, employees or other agents and not by way of defense, except (i) with respect to proceedings
brought to establish or enforce a right to indemnification under this Agreement or under any other agreement, provision in the
Bylaws or the Company’s Articles of Incorporation (the “Articles of Incorporation”) or applicable
law, or (ii) with respect to any other proceeding initiated by Indemnitee that is either approved by the Board of Directors or
Indemnitee’s participation is required by applicable law. However, indemnification or advancement of expenses may be provided
by the Company in specific cases if the Board of Directors determines it to be appropriate.

 

(c)               
Unauthorized Settlements. Any provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant
to the terms of this Agreement to indemnify Indemnitee under this Agreement for any amounts paid in settlement of a proceeding
effected without the Company’s written consent. Neither the Company nor Indemnitee shall unreasonably withhold consent to
any proposed settlement; provided, however, that the Company may in any event decline to consent to (or to otherwise admit or agree
to any liability for indemnification hereunder in respect of) any proposed settlement if the Company is also a party in such proceeding
and determines in good faith that such settlement is not in the best interests of the Company and its stockholders.

 

 

 

 

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(d)              
Securities Act Liabilities. Any provision herein to the contrary notwithstanding, the Company shall not be obligated
pursuant to the terms of this Agreement to indemnify Indemnitee or otherwise act in violation of any undertaking appearing in and
required by the rules and regulations promulgated under the Securities Act of 1933, as amended (the “Act”),
or in any registration statement filed with the SEC under the Act. Indemnitee acknowledges that paragraph (h) of Item 512
of Regulation S-K currently requires the Company to undertake in connection with certain registration statements filed under the
Act to submit the issue of the enforceability of Indemnitee’s rights under this Agreement in connection with any liability
under the Act on public policy grounds to a court of appropriate jurisdiction and to be governed by any final adjudication of such
issue. Indemnitee and the Company specifically agree that in the event the Company is required to make such undertaking in connection
with a registration statement filed under the Act, any such undertaking shall supersede the provisions of this Agreement, and Indemnitee
and the Company shall be bound by such undertaking, to the extent set forth therein, to submit the issue of the enforceability
of Indemnitee’s rights under this Agreement in connection with any liability under the Act on public policy grounds to a
court of appropriate jurisdiction and to be governed by any final adjudication of such issue.

 

11.             
Nonexclusivity and Survival of Rights. The provisions for indemnification and advancement of expenses set forth in this
Agreement shall not be deemed exclusive of any other rights which Indemnitee may at any time be entitled under any provision of
applicable law, the Company’s Articles of Incorporation, Bylaws or other agreements, both as to action in Indemnitee’s
official capacity and Indemnitee’s action as an agent of the Company, in any court in which a proceeding is brought, and
Indemnitee’s rights hereunder shall continue after Indemnitee has ceased acting as an agent of the Company and shall inure
to the benefit of the heirs, executors, administrators and assigns of Indemnitee. The obligations and duties of the Company to
Indemnitee under this Agreement shall be binding on the Company and its successors and assigns until terminated in accordance with
its terms. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business or assets of the Company, expressly to assume and agree in writing to perform this
Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken
place.

 

No amendment, alteration
or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in
respect of any action taken or omitted by such Indemnitee in his corporate status prior to such amendment, alteration or repeal.
To the extent that a change in the NRS, whether by statute or judicial decision, permits greater indemnification or advancement
of expenses than would be afforded currently under the Company’s Articles of Incorporation, Bylaws and this Agreement, it
is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change.
No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy
shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity
or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, by Indemnitee shall not prevent the concurrent
assertion or employment of any other right or remedy by Indemnitee.

 

 

 

 

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12.             
Term. All agreements and obligations of the Company contained herein shall continue during the period Indemnitee is
an officer or director of the Company (or is or was serving at the request of the Company as a director, officer, employee or agent
of another corporation, partnership, joint venture, trust or other enterprise) and shall continue thereafter so long as Indemnitee
shall be subject to any proceeding (or any proceeding commenced under Section 7 hereof).

 

No legal action shall
be brought and no cause of action shall be asserted by or in the right of the Company against an Indemnitee or an Indemnitee's
estate, spouse, heirs, executors or personal or legal representatives after the expiration of five (5) years from the date of accrual
of such cause of action, and any claim or cause of action of the Company shall be extinguished and deemed released unless asserted
by the timely filing of a legal action within such five-year period; provided, however, that if any shorter period of limitations
is otherwise applicable to such cause of action, such shorter period shall govern.

 

13.             
Interpretation of Agreement. It is understood that the parties hereto intend this Agreement to be interpreted and enforced
so as to provide indemnification to Indemnitee to the fullest extent now or hereafter permitted by law.

 

14.             
Severability. If any provision of this Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever, (a) the validity, legality and enforceability of the remaining provisions of the Agreement (including without
limitation, all portions of any paragraphs of this Agreement containing any such provision held to be invalid, illegal or unenforceable,
that are not themselves invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and (b) to
the fullest extent possible, the provisions of this Agreement (including, without limitation, all portions of any paragraph of
this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal
or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable
and to give effect to Section 13 hereof.

 

15.             
Amendment and Waiver. No supplement, modification, amendment, termination or cancellation of this Agreement shall be
binding unless executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed
or shall constitute a waiver of any other provision hereof (whether or not similar) nor shall such waiver constitute a continuing
waiver.

 

16.             
Notice. Except as otherwise provided herein, any notice or demand which, by the provisions hereof, is required or which
may be given to or served upon the parties hereto shall be in writing and, if by telegram, telecopy or telex, shall be deemed to
have been validly served, given or delivered when sent, if by overnight delivery, courier or personal delivery, shall be deemed
to have been validly served, given or delivered upon actual delivery and, if mailed, shall be deemed to have been validly served,
given or delivered three (3) business days after deposit in the United States mail, as registered or certified mail, with proper
postage prepaid and addressed to the party or parties to be notified at the addresses set forth on the signature page of this Agreement
(or such other address(es) as a party may designate for itself by like notice). If to the Company, notices and demands shall be
delivered to the attention of the Secretary of the Company.

 

 

 

 

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17.             
Governing Law. This Agreement shall be governed exclusively by and construed according to the laws of the State of Nevada,
as applied to contracts between Nevada residents entered into and to be performed entirely within Nevada.

 

18.             
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed
to be an original but all of which together shall constitute but one and the same Agreement. Only one such counterpart need be
produced to evidence the existence of this Agreement.

 

19.             
Headings. The headings of the sections of this Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction hereof.

 

20.             
Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter
hereof and supersedes all prior agreements, understandings and negotiations, written and oral, between the parties with respect
to the subject matter of this Agreement; provided, however, that this Agreement is a supplement to and in furtherance of the Company’s
Articles of Incorporation, Bylaws, the NRS and any other applicable law, and shall not be deemed a substitute therefor, and does
not diminish or abrogate any rights of Indemnitee thereunder.

 

 

[Remainder
of Page Intentionally Left Blank]

 

 

 

 

 

 

 

 

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In
Witness Whereof, the parties hereto have entered into this Agreement effective as of the date first above written.

 

	 	AETHLON MEDICAL, INC.

	 	 
	 	By:	 	 
	 	Name: 	 	 
	 	Title:	 	 
	 	 	 	 
	 	Address:	9635
        Granite Ridge Drive
	 	 	 	Suite 100
 
	 	 	 	San Diego, CA 92123
	 	 	 	 
	 	INDEMNITEE 

	 	 
	 	Signature:	 	 
	 	Name:	 	 
	 	Address:	 
	 	 	 
	 	 	 

 

 

 

 

 

 

 

 

 

    	 	11Exhibit 10.5

 

AETHLON MEDICAL, INC.

AMENDED 2010 STOCK INCENTIVE PLAN

 

NOTICE OF GRANT OF STOCK OPTION

 

Notice is hereby given
of the following grant of an option (the “Option”) to purchase shares of the Common Stock of Aethlon Medical, Inc.,
a Nevada corporation (the “Company”):

 

	 	Optionee: 	[_____________]
	 	 	 
	 	Grant Date: 	[_____________]
	 	 	 
	 	Exercise Price: 	$[___] per share
	 	 	 
	 	Number of Option Shares: 	[_____________]
	 	 	 
	 	Expiration Date: 	[_____________]
	 	 	 
	 	Type of Option: 	[Incentive Stock Option1][Nonqualified
Stock Option]
	 	 	 
	 	Vesting Commencement Date:	[_____________]
	 	 	 
	 	Vesting Schedule: 	Subject to the Optionee’s
continued services with the Company through the applicable vesting dates, the Option will vest and become exercisable as follows:

[1/4th of the shares vest and become exercisable one
year after the Vesting Commencement Date; the balance of the shares vest and become exercisable in a series of thirty-six (36)
successive equal monthly installments measured from the first anniversary of the Vesting Commencement Date, with such monthly vesting
installments occurring on the same day of the month as the Vesting Commencement Date.]

 

 

 

1
If this is an Incentive Stock Option, it (plus other outstanding Incentive Stock Options) cannot be first exercisable
for more than $100,000 in value (measured by exercise price) in any calendar year. Any excess over $100,000 is a Nonqualified
Stock Option.

 

    	 	1	 

     

    

 

The Option is subject
to the terms of the Stock Option Agreement in the form attached hereto as Exhibit A and the Company’s Amended 2010
Stock Incentive Plan (the “Plan”) the terms of which are incorporated into this Notice of Grant of Stock Option (“Notice”)
in their entirety.

 

Optionee Acknowledgements:

 

Option Terms.
By Optionee’s signature below, Optionee understands and agrees that the Option is governed by this Notice, the provisions
of the Plan and the Stock Option Agreement, all of which are made a part of this Notice. The Optionee acknowledges that copies
of the Plan and the prospectus for the Plan (the “Prospectus”) are available on the Company’s internal web site
and may be viewed and printed by the Optionee. Optionee represents that he or she has read and is familiar with the provisions
of the Plan, the Stock Option Agreement and the Prospectus for the Plan. Optionee acknowledges and agrees that this Notice and
the Stock Option Agreement (together, the “Option Agreement”) may not be modified, amended or revised except in a writing
signed by Optionee and a duly authorized officer of the Company. Optionee further acknowledges that in the event of any conflict
between the provisions in the Option Agreement or the Prospectus and the terms of the Plan, the terms of the Plan shall control.
Optionee further acknowledges that the Option Agreement sets forth the entire understanding between Optionee and the Company regarding
the acquisition of Common Stock and supersedes all prior oral and written agreements, promises and/or representations on that subject
with the exception of other equity awards previously granted to Optionee and Common Stock previously issued to Optionee.

 

No Employment or
Service Contract. Nothing in the Option Agreement or the Plan shall confer upon Optionee any right to continue in service in
any capacity, including as an employee, for any period of specific duration or interfere with or otherwise restrict in any way
the rights of the Company (or any Parent or Subsidiary employing or retaining Optionee) or of Optionee, which rights are hereby
expressly reserved by each, to terminate Optionee’s service and/or employment at any time for any reason, with or without
Cause.

 

 

[Signature page follows.]

 

 

 

 

 

 

 

 

    	 	2	 

     

    

 

Definitions.
All capitalized terms in this Notice shall have the meaning assigned to them in this Notice, the attached Stock Option Agreement
or the Plan.

 

Aethlon Medical, Inc.

 

 

	By: __________________________________	Date:  __________________________________
	[Name, Title]	 
	 	 
	OPTIONEE	 
	 	 
	 	 
	_____________________________________	Date:  __________________________________
	Name: [__________________________________]	 
	Address: [________________________________]	 
	                 [_______________________________]	 

 

 

ATTACHMENTS

Exhibit A - Stock Option Agreement

 

 

 

 

 

 

 

    	 	3	 

     

    

 

EXHIBIT A

 

AETHLON MEDICAL, INC.

STOCK OPTION AGREEMENT

 

All capitalized terms
in this Stock Option Agreement not defined herein shall have the meaning assigned to them in the Notice of Grant of Stock Option
to which this Stock Option Agreement is attached as Exhibit A, the Appendix attached hereto, or in the Company’s Amended
2010 Stock Incentive Plan (the “Plan”).

 

AGREEMENT

 

NOW, THEREFORE,
it is hereby agreed as follows:

 

1.                 
Grant of Option. The Company hereby grants to the Optionee, as of the Grant Date, an option to purchase up to
the number of Option Shares specified in the Grant Notice. The Option Shares shall be purchasable from time to time during the
option term specified in Paragraph 2 at the Exercise Price. Except as otherwise provided herein, this option shall be subject to
the terms and conditions of the Plan.

 

2.                 
Option Term. This option shall expire at the close of business on the Expiration Date, unless sooner terminated
in accordance with Paragraph 5. This option may not be exercised after its expiration or earlier termination.

 

3.                 
Limited Transferability.  During the Optionee’s lifetime, this option shall be exercisable only by the
Optionee and shall not be assignable or transferable other than by will or by the laws of descent and distribution following the
Optionee’s death.

 

4.                 
Dates of Exercise. This option shall become exercisable for the Option Shares that have vested as specified in
the Vesting Schedule.

 

5.                 
Cessation of Service. The option term specified in Paragraph 2 shall terminate (and this option shall cease to
be outstanding) prior to the Expiration Date should any of the following events occur:

 

(a) If the Optionee’s
service is terminated for any reason other than death or disability, then the Optionee may exercise this option, only to the extent
that the option would have been exercisable upon the date of such termination (the “Termination Date”), no later than
twelve (12) months after the Termination Date.

 

(b) If the Optionee’s
service is terminated because of the Optionee’s death or disability (or the Optionee dies within twelve (12) months after
a termination other than for Cause or because of the Optionee’s disability), then this option may be exercised only to the
extent that it would have been exercisable by the Optionee on the Termination Date and must be exercised by the Optionee (or the
Optionee’s legal representative) no later than twelve (12) months after the Termination Date.

 

 

 

 

 

    	 	4	 

     

    

 

(c) Notwithstanding the
provisions above, if the Optionee’s service is terminated for Cause, neither the Optionee, the Optionee’s estate nor
such other person who may then hold this option shall be entitled to exercise it with respect to any Option Shares whatsoever.

 

6.                 
Adjustment in Option Shares. Should any change be made to the Common Stock by reason of any stock split, stock
dividend, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Common Stock as
a class without the Company’s receipt of consideration, appropriate adjustments shall be made to (i) the total number and/or
class of securities subject to this option and (ii) the Exercise Price in order to reflect such change and thereby preclude a dilution
or enlargement of benefits hereunder.

 

7.                 
Stockholder Rights.  The holder of this option shall not have any rights as a stockholder of the Company with
respect to the Option Shares until such person shall have exercised the option, paid the Exercise Price and become a holder of
record of the purchased shares.

 

8.                 
Manner of Exercising Option.

 

(a)       In
order to exercise this option with respect to all or any part of the Option Shares for which this option is at the time vested
and exercisable, the Optionee (or any other person or persons exercising the option) shall take the following actions:

 

(i)       Execute
and deliver to the Company a written notice setting forth the number of Option Shares for which the option is exercised;

 

(ii)       Pay
the aggregate Exercise Price for the purchased shares in cash or check, bank draft or money order payable to the Company or in
one or more of the following forms:

 

(A)       if
approved by the Board, by delivery to the Company (either by actual delivery or attestation) of shares of Common Stock that are
already owned by the Optionee free and clear of any liens, claims, encumbrances or security interests, with a Fair Market Value
on the date of exercise that does not exceed the exercise price, provided that (A) at the time of exercise the Common Stock is
publicly traded, (B) any remaining balance of the exercise price not satisfied by such delivery is paid by the Optionee in cash
or other permitted form of payment, (C) such delivery would not violate any applicable law or agreement restricting the redemption
of the Common Stock, (D) any certificated shares are endorsed or accompanied by an executed assignment separate from certificate,
and (E) such shares have been held by the Optionee for any minimum period necessary to avoid adverse accounting treatment as a
result of such delivery;

 

 

 

 

    	 	5	 

     

    

 

(B)       provided
that at such time the Common Stock is publicly traded, pursuant to a “cashless exercise” program developed under Regulation
T as promulgated by the Federal Reserve Board that, prior to the issuance of the Common Stock subject to the option, results in
either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the exercise price to the
Company from the sales proceeds; or

 

(C)       by
any combination of the foregoing. Except to the extent the sale and remittance procedure is utilized in connection with the option
exercise, payment of the Exercise Price must accompany the written notice delivered to the Company in connection with the option
exercise;

 

(iii)       Furnish
to the Company appropriate documentation that the person or persons exercising the option (if other than Optionee) have the right
to exercise this option;

 

(iv)       Execute
and deliver to the Company such written representations as may be requested by the Company in order for it to comply with the applicable
requirements of federal and state securities laws; and

 

(v)       Make
appropriate arrangements with the Company for the satisfaction of all federal, state and local income and employment tax withholding
requirements applicable to the option exercise.

 

(b)       As
soon as practical after the Exercise Date, the Company shall issue to or on behalf of the Optionee (or any other person or persons
exercising this option) a certificate for the purchased Option Shares, with the appropriate legends affixed thereto.

 

(c)       In
no event may this option be exercised for any fractional shares.

 

9.                 
Compliance with Laws and Regulations.

 

(a)       The
exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance by the Company
and the Optionee with all applicable requirements of law relating thereto and with all applicable regulations of any stock exchange
(or the Nasdaq Stock Market or the OTC Bulletin Board, if applicable) on which the Common Stock may be listed for trading (or quoted)
at the time of such exercise and issuance.

 

(b)       The
inability of the Company to obtain approval from any regulatory body having authority deemed by the Company to be necessary to
the lawful issuance and sale of any Common Stock pursuant to this option shall relieve the Company of any liability with respect
to the non-issuance or sale of the Common Stock as to which such approval shall not have been obtained. The Company, however, shall
use its best efforts to obtain all such approvals.

 

 

 

 

 

 

    	 	6	 

     

    

 

10.             
Successors and Assigns. Except to the extent otherwise provided in Paragraph 3, the provisions of this Agreement
shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and the Optionee, the Optionee’s
assigns and the legal representatives, heirs and legatees of the Optionee’s estate.

 

11.             
Notices. Any notice required to be given or delivered to the Company under the terms of this Agreement shall
be in writing and addressed to the Company at its principal corporate offices. Any notice required to be given or delivered to
the Optionee shall be in writing and addressed to the Optionee at the address indicated below the Optionee’s signature line
on the Grant Notice. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid
and properly addressed to the party to be notified.

 

12.             
Governing Law. The interpretation, performance and enforcement of this Agreement shall be governed by the laws
of the State of California without resort to any conflict-of-laws rules that would result in the application of the laws of any
other jurisdiction.

 

 

 

 

 

 

 

 

 

    	 	7	 

     

    

 

APPENDIX A

 

The following definitions shall
be in effect under the Agreement:

 

		1.	Agreement shall mean this Stock Option Agreement.

 

		2.	Code shall mean the Internal Revenue Code of 1986, as amended.

 

		3.	Common Stock shall mean the Company’s common stock.

 

		4.	Exercise Date shall mean the date on which the option shall have been exercised in
accordance with Paragraph 8 of the Agreement.

 

		5.	Exercise Price shall mean the exercise price payable per Option Share as specified
in the Grant Notice.

 

		6.	Expiration Date shall mean the date on which the option expires as specified in the
Grant Notice.

 

		7.	Grant Date shall mean the date of grant of the option as specified in the Grant Notice.

 

		8.	Grant Notice shall mean the Notice of Grant of Stock Option accompanying the Agreement,
pursuant to which Optionee has been informed of the basic terms of the option evidenced hereby.

 

		9.	Nonqualified Stock Option shall mean an option not intended to satisfy the requirements
of Section 422 of the Code.

 

		10.	Option Shares shall mean the number of shares of Common Stock subject to the option.

 

		11.	Vesting Schedule shall mean the vesting schedule specified in the Grant Notice pursuant
to which the Option Shares shall become exercisable.

 

 

 

 

 

 

 

 

    	 	8

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