Document:

newcardio_8k-ex0407.htm

    EXHIBIT
4.7

     

    AMENDMENT
NO. 1 TO THE REGISTRATION RIGHTS AGREEMENT,

    DATED
AS OF DECEMBER 27, 2007, BETWEEN MARINE PARK HOLDINGS, INC.

    AND
EACH OF THE SEVERAL PURCHASERS SIGNATORY THERETO

    

    This
Amendment No. 1, dated as of February 6, 2008, between New Cardio, Inc.
(formerly Marine Park Holdings, Inc.), Vision Opportunity Master Fund, Ltd.
(“Vision”) and Platinum Montaur Life Sciences, LLC (“Platinum” and collectively
with Vision, the “Majority Holders”)  amends the Registration Rights
Agreement made and entered into as of December 27, 2007, among the parties
thereto (the “Agreement”). All the terms of the Agreement are incorporated
herein by reference, except as otherwise stated herein. Capitalized terms used
herein that are not defined herein shall have the meaning ascribed to them in
the Agreement.

     

    WHEREAS,
the Agreement may be amended in a writing signed by the Company and the Holders
of a majority of the then outstanding Registrable Securities pursuant to Section
6(f) of the Agreement; and

     

    WHEREAS,
the Company and the Majority Holders desire to amend the Agreement.

     

    NOW,
THEREFORE, for good and valuable consideration the receipt and adequacy of which
are hereby acknowledged, the Company and each of the Majority Holders agree as
follows:

     

    1.  The following Definition
in Section 1 of the Agreement is hereby amended and replaced in their entirety
with the following:

     

    “Registrable
Securities” means (i) all of the shares of Common Stock issuable upon
conversion in full of the Preferred Stock (assuming on the date of determination
the shares of Preferred Stock are converted in full without regard to any
conversion limitations therein), (ii) any additional shares of Common Stock when
and if issued in connection on  with any anti-dilution provisions in
the Preferred Stock (without giving effect to any limitations on conversion set
forth in the Certificate of Designation) and (iii) any securities issued or
issuable upon any stock split, dividend or other
distribution,  recapitalization or similar event with respect to the
foregoing.

     

    2.  Section 2(a) of the
Agreement is hereby amended and replaced in its entirety with the
following:

     

    On or
prior to each Filing Date, the Company shall prepare and file with the
Commission a Registration Statement covering the resale of all or such maximum
portion of the Registrable Securities as permitted by SEC Guidance (provided
that, the Company shall use commercially reasonable efforts to advocate with the
Commission for the registration of all of the Registrable Securities in
accordance with the SEC Guidance, including without limitation, the Manual of
Publicly Available Telephone Interpretations D.29) that are not then registered
on an effective Registration Statement for an offering to be made on a
continuous basis pursuant to Rule 415.  The Registration Statement
shall be on Form S-3 (except if the Company is not then eligible to register for
resale the Registrable Securities on Form S-3, in which case such registration
shall be on another appropriate form in accordance herewith) and shall contain
(unless otherwise directed by at least an 85% majority in interest of the
Holders) substantially the “Plan of Distribution”
attached hereto as Annex
A.  Subject to the terms of this Agreement, the Company shall
use its best efforts to cause a Registration Statement to be declared effective
under the Securities Act as promptly as possible after the filing thereof, but
in any event prior to the applicable Effectiveness Date, and shall use its best
efforts to keep such Registration Statement continuously effective under the
Securities Act until all Registrable Securities covered by such Registration
Statement have been sold, or may be sold without volume restrictions pursuant to
Rule 144, as determined by the counsel to the Company pursuant to a written
opinion letter to such effect, addressed and acceptable to the Transfer Agent
and the affected Holders (the “Effectiveness
Period”).  The Company shall request effectiveness of a
Registration Statement prior to the applicable
Effectiveness Deadline, as of 5:00 p.m. New York City time on a Trading Day,
subsequent to notification that the Registration Statement will not be reviewed
or is no longer subject to further review and comments.   The
Company shall immediately notify the Holders via facsimile or by e-mail of the
effectiveness of a Registration Statement on the same Trading Day that the
Company telephonically confirms effectiveness with the Commission, which shall
be the date requested for effectiveness of such Registration
Statement.  The Company shall, by 9:30 a.m. New York City time on the
Trading Day after the effective date of such Registration Statement, file a
final Prospectus with the Commission as required by Rule 424.  Failure
to so notify the Holder within 1 Trading Day of such notification of
effectiveness or failure to file a final Prospectus as foresaid shall be deemed
an Event under Section 2(b).  Notwithstanding any other provision of this Agreement
and subject to the payment of liquidated
damages pursuant to Section 2(b), if any
SEC Guidance sets forth a limitation
on the number of Registrable Securities
permitted to be registered on a particular Registration Statement
(and notwithstanding that the Company used diligent efforts to
advocate with the Commission for the registration of all or a greater portion of Registrable Securities), unless otherwise directed
in writing by a Holder as to its Registrable Securities, the number of
Registrable Securities to be registered on such Registration Statement will be
reduced with respect to each
Holder on a pro rata basis based on the
total number of unregistered shares underlying
the Preferred Stock; provided, however, that, prior to any reduction in the number of
Registrable Securities included in a Registration Statement as set forth in this
sentence, the number of shares of Common Stock set forth on Schedule 6(b) hereto
which shall have been included on such Registration Statement shall be reduced
by up to 100%.

    

    3.  Except as expressly set
forth herein, all other terms and conditions of the Agreement remain in full
force and effect and this Amendment shall be governed by all other terms
contained therein.

    

    ********************

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the parties have executed this Amendment as of the date first
written above.

    
       

       

      
        	 	NEW CARDIO,
    INC.
	 	 	 
	 	By:	/s/
      Richard
      Brounstein                                
      
	 	 	Name: Richard
      Brounstein
	 	 	Title:
  CFO
	 	 	 
	 	 	 
	 	VISION OPPORTUNITY MASTER FUND,
      LTD.
	 	 	 
	 	By:	/s/
      Adam
      Benowitz                                        
      
	 	 	Name: Adam
      Benowitz
	 	 	Title:
      Director
	 	 	 
	 	 	 
	 	PLATINUM MONTAUR LIFE SCIENCES,
      LLC
	 	 	 
	 	By:	/s/
      Michael
      Goldberg                                       
      
	 	 	Name: Michael
      Goldberg
	 	 	Title: Portfolio
      Manager

      

       

       

    

    2<PAGE>

EXHIBIT 10.11

                 GEORGE MASON UNIVERSITY - AETHLON MEDICAL, INC.

                              COOPERATIVE AGREEMENT

                                    PREAMBLE

This Cooperative Agreement (hereinafter "Agreement") is entered into by and
between The Rector and Visitors of George Mason University, for its National
Center for Biodefense hereinafter called "GMU", a located at 4400 University
Drive, MS 4C6, Fairfax, VA 22030-4444, phone number (703) 993-2988, and Aethlon
Medical Inc., hereinafter called "Aethlon", a Nevada Corporation, with an office
located at 7625 Fay Avenue, Suite 200, La Jolla, California, 92037 phone number
(858) 459-7800. GMU and Aethlon are hereinafter referred to as "the Parties".

                                   I. RECITALS

1.01 Funding sources including, but not limited to the "Government", may make
available funding opportunities to support research activities that explore
and/or demonstrate the feasibility of apheresis treatment to certain bioweapons,
including certain CDC Class A toxins. Certain funding opportunities may also be
made available to support joint projects to demonstrate the practical or
commercial value of apheresis treatments for certain biodefense applications as
outlined in Appendix B (Projects). These funding opportunities may become
available in the form of an RFP to support such activities.

1.02 The Parties have complementary skills and capabilities which, taken
together, would allow the Parties to perform the Project

I .03 The Parties wish to form a teaming arrangement and to define their
respective rights, duties, and obligations thereunder.

                            II.OBJECTIVE AND DURATION

2.01 The objective of the teaming hereunder shall be to cooperate in identifying
possible funding sources and in preparing and submitting proposals in an attempt
to obtain the award of contracts for Projects resulting from any RFPs to support
these activities.

2.02 In each instance, the Parties shall determine which party will be the
prime. Both parties agree to prepare data required for any proposals and to
cooperate in integrating the data. The party designated as prime shall submit
the proposal with the other party identified in the proposal as the
subcontractor to provide following services as outlined in the proposal.

2.03 The duration of this Agreement shall be from the effective date hereof
until the occurrence of the earliest of the following events (subject, however,
to the provisions of Paragraph A.3, Attachment A hereto);

         a)  The failure or inability of either party to provide the support for
             the preparation of identified proposal opportunities.
         b)  Mutual consent of the Parties to terminate this Agreement.
         c)  Lapse of 24 months from the effective date of this agreement
             without award of a contract to support one or more Projects unless
             a procurement is still open.
         d)  The indictment, suspension, or debarment by the Government of
             either party.

                                                                     Page 1 of 6
<PAGE>

         e)  A Receiver, trustee in Bankruptcy, or other Custodian of the
             property or assets of a party hereto is appointed, or if either
             party hereto commits an act of bankruptcy or is adjudicated
             bankrupt or insolvent.
         f)  During the term hereof it is determined that either party may be
             ineligible for award due to an Organizational Conflict of Interest.

                            III. PROPOSAL PREPARATION

3.01 The party designated as prime shall have primary responsibility for the
preparation of all technical and non-technical aspects of the proposal
including, but not limited to:

         a)  Marketing and promotional effort;
         b)  Proposal content assembly and production;
         c)  Liaison with Government customer personnel;
         d)  Oral discussions and negotiations, if held.

3.02 The party designated as the subcontractor shall contribute to the
preparation of the proposal to the extent necessary to assure the inclusion of a
thorough and accurate description of its responsibilities in the Project.

Each party shall cooperate with the other (i) to provide such assistance as may
he required during the pre-proposal, proposal and post-proposal stages, (ii) to
furnish proposal material including manuscripts, graphic material and cost and
pricing data backup as required by the RIP or as appropriate, (iii) to assure
availability of management and technical personnel and (iv) to submit
management, technical and cost proposal materials and proposal clarifications
within required time frames as requested by the party assuming the prime
position.

Notwithstanding the provisions of Paragraph 3.01 preceding, the subcontractor
party shall be entitled to participate in oral discussions concerning its
contributions to the proposal and shall at all times be entitled to receive,
upon reasonable request, documentation and information concerning oral
discussions and negotiations between the prime party and the Government.
Further, the prime party shall in no way modify the proposal during discussions
or negotiations so as to either increase the risk of performance to, or decrease
potential cost or fee recovery by the subcontracting party unless the
subcontracting party specifically approves.

3.03 The subcontracting party will provide direct proposal support to the other
party in the development of proposals. Detailed proposal writing assignments
will be determined at a separate meeting or via separate communication between
GMU and Aethlon. All bid and proposal costs are the responsibility of the party
which incurs them and will not be paid by the other party.

3.04 GMU's contractual point of contact is Ann McQuigan, Ph.D. and the GMU
technical point of contact is Jerry Coughter. Aethlon's contractual point of
contact is James A. Joyce and the Aethlon technical point of contact is Richard
Tullis, Ph.D.

3.05 The Parties shall carry out the preparation of proposals and the conduct of
all negotiations and pricing, in accordance with all applicable laws and
regulations governing the applicable RFP and the award of any contract
thereunder,

3.06 Except as may otherwise be agreed in writing by the Parties, each of the
Parties shall bear its own expenses for its own performance of proposal and
related work.

                                                                     Page 2 of 6
<PAGE>

3.07 Contractor past performance may be a significant evaluation factor for the
solicitation. Both parties understand and agree that they will be required to
provide timely reports of all past performance information reasonably requested
by the prime party. The prime party reserves the right to independently contact
the points of contact provided in the other party's past performance citations
to determine the adequacy/appropriateness of those citations. The prime party,
at its sole discretion, may utilize in its proposal any or all citations
provided by the other party.

                         IV. FORMATION QF A SUBCONTRACT

4.01 Should a contract be awarded as a result of this Agreement, the Parties
agree to enter into good faith negotiations intending to culminate in a
subcontract to be awarded to the subcontracting party for its area of interest
identified in the relevant proposal subject to necessary Government approvals,
required flowdown clauses, and negotiation of mutually acceptable price,
delivery, terms, and conditions.

                              V. GENERAL PROVISIONS

5.01 No announcement, release, or other disclosure of information relating to
this Agreement shall be made except by specific written agreement of the
Parties.

5.02 This Agreement shall not constitute, create, or in any way be interpreted
as a joint venture, partnership, or formal business organization of any kind.
Neither party may assign or transfer its interests under this Agreement without
the written consent of the other party hereto except that GMU shall have the
right to assign its responsibilities under this Agreement to any division,
subsidiary, or affiliate thereof.

5.03 The efforts of both parties relating to any RFP in the area of a Project
shall be exclusive to this Agreement, and both parties, except as defined in
section 5.03.a, agree not to pursue the RFP either independently or in concert
with any additional party. In the event that the Government directs any change
affecting this Agreement in any material respect this Agreement shall be
modified in accordance with such direction, and the exclusivity of effort
described above shall continue to exist, except as the Government may
specifically prescribe, provided, however, that in no event shall this provision
be construed as a contract for the benefit of third parties.

5.03.a Aethlon is developing and commercializing the civilian use (defined as
non-military) of its proprietary Hemopurifier technology in conjunction with
parties other than GMU.

5.04 Attachment A hereto, entitled "Proprietary Data Provisions", is
incorporated by reference.

5.05 This Agreement is the entire agreement among the Parties and supersedes any
prior oral or written agreement or understanding pertaining to this Project.
Changes to this Agreement, to be effective, must be in writing and executed by
the Parties.

5.06 Notices shall be deemed given hereunder when received or, if mailed by
prepaid certified or registered mad return receipt requested, five (5) days
after mailing. Notices shall be addressed to the contractual point of contact
specified in Paragraph 3.03 of this Agreement at the addresses specified in the
PREAMBLE above. Either Party may change its cognizant point of contact by
written notice to the other.

                                                                     Page 3 of 6
<PAGE>

5.07 Neither party shall be liable to the other for any indirect, incidental,
special, or consequential damages, however caused, whether as a consequence of
the negligence of the one party or otherwise.

5.08 If any provision of this Agreement or part of such provision is or becomes
invalid or unenforceable, then the remaining provisions hereof shall continue to
be effective.

5.09 No waiver by a party of any of its rights or remedies shall be construed as
a waiver by such party of any other rights or remedies that such party may have
under this Agreement.

5.10 Any controversy or claim arising between the Parties out of or in
connection with the provisions of the Agreement shall he resolved by amicable
discussions between appropriate executives of the respective companies who are a
party to this Agreement. If such discussions do not result in a resolution of
the controversy or claim, either party may file suit in any court of competent
jurisdiction.

5.11 Inventions conceived solely by employees of Aethlon shall belong
exclusively to Aethlon. Inventions conceived solely by employees of SMU shall
belong exclusively to GMU. Inventions conceived jointly by the Parties hereto in
the course of work called for by this Agreement shall be subject to further
agreement of the Parties. This understanding is subject to modification as may
be required by applicable Government regulations, or the terms of the prime
contract or resultant subcontract between the Parties. Except as stated in the
preceding paragraph, nothing contained in this Agreement shall be deemed, by
implications, estoppel, or otherwise, to grant any right or license in respect
of any patents, inventions, or technical information at any time owned by the
other party.

5.12 Irrespective of the place of performance, this Agreement will be construed
and interpreted according to the Federal common law of Government contracts as
enunciated aid applied by Federal judicial bodies, Boards of Contract Appeals,
and quasi-judicial agencies of the Federal Government. To the extent that the
Federal common law of Government contracts is not dispositive, the laws of the
Commonwealth of Virginia shall apply..

                          VI. EXECUTION AND EFFECTIVITY

6.01 The Parties have executed this Agreement on the dates entered below. The
Agreement may be executed in two or more counterparts.

6.02 This Agreement is effective as of the last date entered below.

For AETHLON MEDICAL, INC.           For: GEORGE MASON UNIVERSITY

Signature:        //s//             Signature:        //s//
Printed Name:  James A Joyce        Printed Name:  Ann T McGuigan Phd
Title:  Chairman and CEO            Title: Director, Office of Sponsored Program
Date:   2/25/04                     Date:  2/25/04

                                                                     Page 4 of 6
<PAGE>

                                  ATTACHMENT A

                           PROPRIETARY DATA PROVISIONS

A.1 No party to this Agreement shall use, for any purpose not connected with the
Projects, or this Agreement, any data, as hereafter defined ("Data") or divulge
such Data to any person or entity other than appropriate Government agencies to
which proposals or reports must be submitted in connection With GMU's
performance. The foregoing limitations shall not apply to the disclosure or use
of any portion of such Data which:

     a)  The receiving party can demonstrate by written evidence was already
         known to it, prior to receiving it from the other party; or

     b)  Prior to the time of its disclosure hereunder to any party, has been
         published or otherwise made freely available to the general public; or

     e)  Subsequent to its disclosure hereunder to any other party is
         independently thereafter rightfully made available on an unrestricted
         basis to the public or the receiving party by the disclosing party or
         by another authorized party; or

     d)  is independently developed by the receiving party

For purposes of this Agreement, the term Data is defined to mean any technical
information, program or systems concept, financial information, or any other
information disclosed to it by the other patty in connection with the
performance of this Agreement. Nothing here n shall restrict a party from
disclosing any portion of such Data on a restricted basis pursuant to a judicial
or other lawful Government order, bet only to the extent of such order.

A.l No license to the other party, under any trademark, patent, or copyright,
domestic or foreign, is either granted or implied by the conveying of Data to a
party. None of the information which may be submitted or exchanged by the
Parties shall constitute any representation, warranty, assurance, guarantee, or
inducement by a party to the other with respect to the infringement of
trademarks, patents, copyrights, or other rights of third persons.

A.2 Notwithstanding any other portions of this Agreement, the obligations of
this Attachment A shall continue for a period of five (5) years from the
effective date of this Agreement.

                                                                     Page 5 of 6
<PAGE>

                                  ATTACHMENT B

                                STATEMENT OF WORK

B.1      Purpose

This attachment to the teaming agreement between GMU and Aethlon is provided to
delineate anticipated work responsibilities under any contract awarded as a
result of the Government's RFP to GMU. This attachment also discusses proposal
responsibilities.

B.1.1    Work Responsibilities

It is intended that the following will be required of one party as a
subcontractor to the other party during the performance of the contract
anticipated to be awarded as a result of the RFP; Such performance shall be
determined by mutual agreement of both parties prior to proposal preparation and
submission.

    o    To work jointly with GMU to perform experiments to demonstrate the
         feasibility of apheresis treatments to specific bioweapons. Target
         diseases may include:
             o   Small pox -> rabbit pox in rabbits
             o   Anthrax -> model to be determine

    o    To work jointly with GMU to obtain government or private funding for
         joint projects to demonstrate the practical or commercial value of
         apheresis treatments for biodefense application. Examples of target
         diseases include
             o   Anthrax
             o   Small pox
             o   Plague
             o   Tularemia

                                                                     Page 6 of 6

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