On December 7, 2020, Aethlon Medical, Inc. (the “Company”) entered into a Lease (the “Lease”) with San Diego Inspire 1, LLC, a Delaware limited liability company (“San Diego Inspire 1”), and San Diego Inspire 2, LLC, a Delaware limited liability company (together, the “Landlord”), for the lease of approximately 4,630 square feet of space, consisting of (i) approximately 2,823 square feet of space located at 11555 Sorrento Valley Road, San Diego, California 92121 (the “Office Premises”) and (ii) 1,807 square feet of space located at 11575 Sorrento Valley Road, San Diego, California 92121 (the “Lab Premises” and together with the Office Premises, the “Premises”). The Lease is expected to commence on the date upon which the Premises are ready for occupancy or on such date as the Company commences to conduct business on the Premises, and has an initial term of 63 months after the commencement date of the Lease (the “Initial Term”). The Lease provides the Company with an option to extend the Initial Term for one additional renewal term of five years (the “Option Term”). During the first year of the Initial Term, the Company is required to pay base rent of $6,012.99 per month for the Office Premises and base rent of $7,372.56 per month for the Lab Premises. Thereafter, the base rent will increase each year for the Premises and in the sixth year of the Initial Term, the Company is required to pay base rent of $6,944.58 per month for the Office Premises and base rent of $8,529.04 per month for the Lab Premises. If the Company elects to extend the Lease beyond the Initial Term, then the base rent for the Option Term will be the fair rental value (as calculated in the Lease) for the Premises as of the commencement date of the Option Term. The Company will also be responsible for the payment of the Company’s share of certain operating expenses and tax expenses of the buildings, subject to certain exceptions. In the event of a default of certain of the Company’s obligations under the Lease, the Landlord may terminate the Lease and recover damages as provided by the Lease and by law.

In connection with the Lease, on December 7, 2020 the Company and San Diego Inspire 1 also entered into an Eighth Amendment to Standard Industrial Net Lease, effective as of November 24, 2020 (the “Eighth Amendment”), to extend the terms of the Company’s current lease for its lab space pursuant to the Standard Industrial Net Lease, dated as of September 28, 2009, as amended through the Seventh Amendment to Standard Industrial Net Lease, dated as of September 9, 2019 (the “Current Lease”). The Eighth Amendment extends the term of the Current Lease through the date on which the Premises under the Lease are ready for occupancy, estimated to be an approximately seven month extension of the Current Lease expiration date of November 30, 2020. The monthly base rent amount during the extended term will be $6,147.83.

The foregoing description of the Lease and the Eighth Amendment are only summaries and are qualified in their entirety by the terms of the Lease and the Eighth Amendment, copies of which the Company expects to file as exhibits to the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2020.