Aethlon Medical Amends Executive Contracts for Change‑in‑Control Severance

What Happened
Aethlon Medical, Inc. (AEMD) announced on September 11, 2026 (reported in an 8-K filed Sept. 15, 2026) that it amended the employment agreements of CEO/CFO James B. Frakes and Chief Medical Officer Steven P. LaRosa, M.D. The amendments provide that if a Change in Control occurs and the executive’s employment is terminated in circumstances that trigger severance, the severance payments that would otherwise be paid in installments will instead be paid in a single lump sum. The lump sum equals the aggregate severance and aggregate COBRA health‑continuation payments otherwise payable, and will be paid on the first regular payroll date after the applicable release becomes effective.

Key Details

• Amendments effective September 11, 2026; disclosed in Form 8-K filed Sept. 15, 2026.
• Affected executives: James B. Frakes (CEO & CFO) and Steven P. LaRosa, M.D. (CMO).
• Lump-sum severance and COBRA payments equal the total amounts otherwise payable; timing: first regular payroll date after release effective date.
• The amendments do not change the amount, calculation, or eligibility conditions for severance or health continuation payments; once paid the lump sum is fixed and not reduced if the executive later obtains other group coverage.

Why It Matters
This is a structural change to how severance and COBRA benefits are paid in a change‑in‑control plus termination scenario — converting installment payments into immediate lump sums. For investors, the amendment does not increase potential payouts but could affect the company’s cash timing if a qualifying change in control and termination occur. It also clarifies payout certainty for executives (retention/protection) without altering the underlying severance amounts.