Aethlon Medical, Inc. has amended the employment agreements of its Chief Executive Officer and Chief Financial Officer, James B. Frakes, and its Chief Medical Officer, Steven P. LaRosa, M.D. The amendments were executed on September 11, 2026.
Under the terms of the new agreements, if a Change in Control occurs and the executives' employment is terminated under circumstances entitling them to severance benefits, the severance payments will be paid in a single lump sum. This lump sum will equal the aggregate amount of severance that would have been paid in installments under the original agreement. The payment is scheduled for the first regular payroll date following the release effective date.
Additionally, the amendments stipulate that health care continuation payments will also be paid in a single lump sum. This amount will equal the aggregate health care continuation payments that would have been paid over the applicable COBRA continuation period. Once paid, the amount is fixed and will not be reduced, terminated, forfeited, or required to be repaid if the executives become eligible for group health insurance through a new employer.
The amendments do not alter the amount or calculation of the severance or health care continuation payments, nor do they change the circumstances under which the executives become eligible for these benefits. The full text of the amendments is filed as Exhibits 10.1 and 10.2 to this report.
