Document:

aethlon_ex1002.htm

EXHIBIT 10.2

 

 

EXTENSION AGREEMENT

This Extension Agreement (“Agreement”) is entered into as of March 21, 2011 by and between AETHLON MEDICAL, INC., a corporation organized under the laws of the State of Nevada (“Company”), and Gemini Master Fund, Ltd. (“Investor”).

W I T N E S S E T H:

 

WHEREAS, the Investor holds that certain Convertible Promissory Note of the Company dated as of February 12, 2010 in the original principal amount equal to $660,000 (as amended, the “Note”), which was issued pursuant to that certain Securities Purchase Agreement dated as of February 12, 2010 (“SPA”); each initially capitalized term used but not defined in this Agreement shall have the meaning ascribed thereto in the SPA or Note, as applicable;

WHEREAS, the Note was amended pursuant to that certain Settlement Agreement between the parties dated as of November 22, 2010 (“First Amendment”);

WHEREAS, the Maturity Date under the Note is February 15, 2011, but the Company has failed to repay the outstanding portion of the Note;

WHEREAS, as of the Maturity Date the outstanding principal amount of the Note was $585,000 and the accrued but unpaid interest thereon was $58,981, with a total outstanding balance equal to $643,981; and

WHEREAS, the Company has requested an extension of the Maturity Date and for Investor to forbear from the exercise of its rights and remedies in connection with the Company’s failure to repay the Note on the original Maturity Date, and the Investor is willing to accommodate such requests on the terms and conditions contained herein.

NOW THEREFORE, in consideration of the foregoing premises and the covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Investor agree as follows:

1. Note Modifications.

	
(a)  

	
Extension.  The Maturity Date under the Note is hereby amended to be October 1, 2011.

	
(b)  

	
Default Premium.  The outstanding balance under the Note is hereby increased by 15% and capitalized retroactively effective as of February 15, 2011, such that the current outstanding principal amount of the Note effective as of February 15, 2011 shall be $740,578.

	
(c)  

	
Common Stock Issuance Limitation.  Section 1(b) of the First Amendment is hereby amended to reduce the $0.20 figure set forth therein to $0.16.

	
(d)  

	
Substitute Note.  Within five (5) business days following the date hereof, the Company shall issue and deliver to the Investor a new Note in the form of Exhibit A hereto (the "New Note") reflecting the amended terms of the Note, which New Note shall amend and restate the prior form of Note in its entirety, and the Investor, as condition to the delivery of the New Note, shall deliver the original executed Note to the Company’s counsel to hold until the Holder has received the New Note.

 

 

 

1

 

 

2. Miscellaneous.

 

	
(a)  

	
No Novation; Rule 144.  The New Note shall not constitute a novation or satisfaction and accord of the original Note.  The Company hereby acknowledges and agrees that the New Note is merely amending and restating the original Note and that the Investor has not given any consideration to the Company in connection with such amendment (other than extending the Maturity Date), and this Agreement shall not extinguish or release the Company under any Transaction Document or otherwise constitute a novation of its obligations thereunder.  For purposes of Rule 144 promulgated under the Securities Act, the holding period of the New Note shall tack to the holding period of the original Note.  The Company agrees to take all actions necessary to issue all shares of Common Stock issuable upon conversion of the New Note without restriction and not containing any restrictive legend.  The Company agrees not to take any position contrary to this paragraph.

 

	
(b)  

	
Disclosure.  If the transactions contemplated hereby constitute material non-public information concerning the Company, then the Company shall publicly disclose the material terms of this Agreement and the transactions contemplated hereby within one (1) business day following the date hereof.  The Company and the Investor shall consult with each other in issuing any press release or the filing or disclosure of any other document with respect to the transactions contemplated hereby, provided however, that the Company may make such disclosures regarding this Agreement and the transactions contemplated hereby as it shall deem necessary in its sole discretion with respect to the content of any current, periodic or annual report filed by it with the Securities and Exchange Commission, including the filing of this Agreement as an exhibit thereto and the financial statements contained in such reports.

 

	
(c)  

	
Full Force and Effect.  Except as specifically waived and amended hereby, the Transaction Documents shall remain in full force and effect in accordance with their respective terms.  This Agreement shall not in any way waive or prejudice any of the rights or obligations of the Investor or the rights or obligations of the Company under the Transaction Documents, or under any law, in equity or otherwise, and such waiver and amendment shall not constitute a waiver or amendment of any other provision of the Transaction Documents nor a waiver or amendment of any subsequent default or breach of any obligation of the Company or the Investor, or of any subsequent right of the Investor or of the Company.  As used in the Transaction Documents, the term “Note” shall refer to the New Note as it amends the original Note and by the First Amendment, and the term “Transaction Documents” shall include this Agreement and the First Amendment and any documents entered into in connection herewith and therewith.

 

	
(d)  

	
Applicable Law.  This Agreement shall be deemed to have been executed and delivered within the State of New York, and the laws of the State of New York shall apply to the interpretation and enforcement of this Agreement.  The sole and exclusive venue for any dispute arising under this Agreement shall be the state courts located in the County of New York, State of New York or the federal courts located in the Southern District of New York, and the parties agree to submit to the personal jurisdiction of those courts and expressly waive any objections based on forum non conveniens or any other objections to those courts exercising personal jurisdiction over them.

 

	
(e)  

	
Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.  This Agreement may be executed and delivered by facsimile transmission or by email of a digital image format file.

 

 [Signature Page Follows]

 

 

2

 

 

IN WITNESS WHEREOF, as of the date first written above, the parties hereto have duly executed, or caused their authorized officers to duly execute, this Agreement.

AETHLON MEDICAL, INC.

By: /s/ James Joyce

Name: James Joyce

Title: Chief Executive Officer

GEMINI MASTER FUND, LTD.

By: GEMINI STRATEGIES, LLC, as investment manager

By: /s/ Steven Winters

  Steven Winters, Managing Member

 

 

  

3

  

Exhibit A

Form of New Note

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4exhibit101.htm

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

 

	 Exhibit 10.1

 

NVIDIA CORPORATION

FISCAL YEAR 2012 VARIABLE COMPENSATION PLAN

Overview

The compensation philosophy of NVIDIA Corporation (the “Company”) is to attract, motivate, retain and reward its management through a combination of base salary and performance based compensation. Certain Senior Officers, as defined below (collectively, the “Participants”), who are employed at the Company during fiscal year 2012 and, unless otherwise determined by the Compensation Committee (the “Committee”), are employees of the Company on and as of the date the cash payments are awarded (each, a “Variable Cash Payment”), shall be eligible to participate in the Fiscal Year 2012 Variable Compensation Plan (the “Plan”). The Plan is designed to award a Variable Cash Payment for performance in fiscal year 2012 to a Participant if the Company achieves certain corporate performance targets (the “Corporate Targets”) and/or if the Participant achieves certain Individual Targets (as defined below). Payments awarded in connection with the achievement of Corporate Targets shall be referred to herein as a “Corporate Variable Cash Payment and payments awarded in connection with the achievement of Individual Targets shall be referred to herein as an “Individual Variable Cash Payment”.

For purposes of the Plan, only the Company’s chief executive officer, chief financial officer, other executive officers and certain other senior officers shall be considered “Senior Officers.”  The Committee shall determine the persons to be specified as Senior Officers for purposes of this Plan and the Senior Officers who may be Participants hereunder.

For fiscal year 2012, for purposes of the Plan, “Individual Targets” shall be set for certain Senior Officers as follows:

	
·

	
For the chief executive officer, certain key performance objectives set by the Committee; and

 

	
·

	
For certain Senior Officers, certain key performance objectives set by the chief executive officer.

 

Determination of Fiscal Year 2012 Variable Cash Payments

Certain Senior Officers are eligible to receive a Variable Cash Payment if the Company achieves its Corporate Targets and/or such Senior Officer achieves his or her Individual Targets at specified levels. The aggregate potential amount of the Variable Cash Payment a Participant may receive upon achievement of the Corporate Targets and/or his or her Individual Targets and the pool available to all Participants under the Plan will be set by the Committee for all Participants based on a recommendation made by the chief executive officer (the “Variable Cash Payment Target Amount”). A Participant’s Variable Cash Payment Target Amount is based on the difficulty and responsibility of each position. For fiscal year 2012, each Participant’s Variable Cash Payment Target Amount will be split such that fifty percent (50%) is allocated to the achievement of the Corporate Targets (the “Corporate Variable Cash Target Amount”) and fifty percent (50%) is allocated to the achievement of his or her Individual Targets (the “Individual Variable Cash Target Amount”). A Participant may be eligible to receive more or less than his or her Corporate Variable Cash Target Amount or Individual Variable Cash Target Amount as described more fully below.

Individual Variable Cash Payment

An Individual Variable Cash Payment may be awarded to a Participant based on the achievement of his or her Individual Targets or other criteria determined by the Committee.

The amount of the actual Individual Variable Cash Payments to be made for fiscal 2012 (the “Actual Individual Variable Cash Payments”) shall be made pursuant to the following guidelines and taking into account whether Individual Targets have been achieved:

	
·

	
For the chief executive officer, the Committee shall determine if the Individual Targets have been achieved and shall determine the amount of the Actual Individual Variable Cash Payment; and

 

	
·

	
For all other Senior Officers, the Committee, based on input from the chief executive officer, shall determine if the Individual Targets have been achieved by such Senior Officer and shall determine the amount of the Actual Individual Variable Cash Payment for such Senior Officer.

 

 

An Actual Individual Variable Cash Payment that is in excess of fifty percent (50%) of the Variable Cash Target Amount may be awarded to a Participant for extraordinary individual performance. In no event shall any Participant receive an Actual Individual Variable Cash Payment in excess of two (2) times the amount of his or her Individual Variable Cash Target Amount. If a Participant achieves only a portion of his or her Individual Targets, the Participant may still be eligible to receive an Actual Individual Variable Cash Payment to the extent determined by the Committee (for the chief executive officer and other Senior Officers), each in their sole discretion. If a Participant does not receive an Individual Variable Cash Payment, he or she may still be eligible to receive a Corporate Variable Cash Payment as outlined below.

  

  

  

Corporate Variable Cash Payment

The Committee has set the Corporate Targets for the Participants based on achievement of specified fiscal year 2012 net income. The amount of actual net income, as set forth in the Company’s financial statements for fiscal 2012 as may be adjusted for material non-recurring items at the discretion of the Committee, shall be the “Actual Result.” The Committee has also set threshold and maximum Actual Result targets for fiscal year 2012 for Participants for the award of a portion or all of the Corporate Variable Cash Payment (the “Threshold” and “Maximum,” respectively). The actual Corporate Variable Cash Payments to be made for fiscal 2012 (the “Actual Corporate Variable Cash Payments”) shall be made pursuant to the following guidelines:

	
·

	
If the Actual Result is less than the Threshold, a Participant will not receive any portion of his or her Corporate Variable Cash Payment.

 

	
· 

	
If the Actual Result falls at or between the Threshold and the applicable Corporate Target, each Participant shall receive an Actual Corporate Variable Cash Payment based on the following formula:

Actual Corporate Variable Cash Payment  =    [(((Actual Result – Threshold) / (Corporate Target – Threshold)) / 2) + 50%] * Corporate Variable Cash Target Amount

	
·

	
If the Actual Result equals the Corporate Target, each Participant shall be eligible to receive 100% of his or her Corporate Variable Cash Target Amount.

 

	
    ·

	
If the Actual Result exceeds the Corporate Target but is less than the Maximum, each Participant shall be eligible to receive an Actual Corporate Variable Cash Payment pursuant to the formula set forth below:

 

Actual Corporate Variable Cash Payment  =    [((Actual Result – Corporate Target) / (Maximum - Corporate Target)) + 1] * Corporate Variable Cash Target Amount

	
    ·

	
If the Actual Result equals or exceeds the Maximum, each Participant shall be eligible to receive 200% of his or her Corporate Variable Cash Target Amount.

In no event shall any Participant receive an Actual Corporate Variable Cash Payment in excess of two (2) times the amount of his or her Corporate Variable Cash Target Amount.

If a Participant does not receive a Corporate Variable Cash Payment, he or she may still be eligible to receive all or a portion of an Individual Variable Cash Payment as outlined above.

Miscellaneous Provisions

Payments under this Plan shall be made following the end of the fiscal year, on such schedule as may be approved by the Committee in its discretion.

Participation in the Plan shall not alter in any way the at will nature of the Company’s employment of a Participant, and such employment may be terminated at any time for any reason, with or without cause and with or without prior notice.

Notwithstanding whether this Plan is referenced in another agreement, policy, arrangement or other document, only the Board of Directors or the Committee may amend or terminate this Plan at any time. Further, the Board of Directors or the Committee may modify the Corporate Targets, Individual Targets and/or Corporate and/or Individual Variable Cash Target amounts at any time.

Any Variable Cash Payments or other benefits under this Plan shall be subject to the Company’s Clawback Policy and shall bind all Participants subject to the Clawback Policy who receive any amounts under this Plan.

This Plan shall be governed by and construed in accordance with the laws of the State of California, without regard to its principles of conflicts of laws.

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