THIS NOTE AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THE
NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY APPLICABLE STATE SECURITIES LAWS. NEITHER THE NOTE NOR SUCH SHARES OF
COMMON STOCK MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED, PLEDGED OR
HYPOTHECATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT AND UNDER ANY APPLICABLE STATE SECURITIES LAWS, OR AN OPINION
OF COUNSEL, SATISFACTORY TO THE COMPANY, THAT AN EXEMPTION FROM SUCH
REGISTRATION IS AVAILABLE.
AETHLON MEDICAL, INC.
12% CONVERTIBLE NOTE
FOR VALUE RECEIVED, Aethlon Medical, Inc., a Nevada corporation (the "Company"), promises to pay to
Phillip A. Ward Trust (03/04/96), whose address is PO Box 3332, Rancho Santa Fe, California 92067, or
registered assigns (the "Holder"), the sum of Sixty-Thousand Dollars ($60,000) in lawful money of the United
States of America on or before the Maturity Date as defined herein, with all Interest thereon as defined and
Interest. This Note shall bear interest ("Interest") equal to twelve percent (12%) per annum on the unpaid
principal balance, computed on a three hundred sixty (360)-day year, during the term of the Note. The Company
shall pay all Interest on or before the Maturity Date. In no event shall the rate of Interest payable on this Note
exceed the maximum rate of Interest permitted to be charged under applicable law.
Payments. All payments under this Note shall first be credited against the payment of accrued and unpaid
Interest, if any, and the remainder shall be credited against principal. All payments due hereunder shall be payable
in legal tender of the United States of America, and in same day funds delivered to Holder by cashier's check,
certified check, bank wire transfer or any other means of guaranteed funds to the mailing address provided
below, or at such other place as the Holder shall designate in writing for such purpose from time to time. If a