EX-10.3





 Exhibit 10.3 

STOCK OPTION AWARD AGREEMENT 

CYTODYN INC. 
 2012
EQUITY INCENTIVE PLAN 
 STOCK OPTION AWARD AGREEMENT 

(FOR EMPLOYEES) 
 This
STOCK OPTION AWARD AGREEMENT (this “Option Agreement”) is made effective as of              by and between CytoDyn Inc., a Delaware corporation (the
“Corporation”), and              (the “Participant”). 
  

	 	1.	 Grant of Option. 



The Corporation hereby grants to the Participant an option (the “Option”) to purchase
             shares of Common Stock (the “Shares”) as of              (the “Date of Grant”) at
the exercise price per Share of $             (the “Exercise Price”) subject to the terms and conditions of this Option Agreement. 

 

	 	2.	 Application of Plan Terms. 



Unless otherwise defined herein, the capitalized terms in this Option Agreement will have the same defined meanings as set forth in the
Corporation’s 2012 Equity Incentive Plan (the “Plan”). 
  

	 	3.	 Term. 



The Option will automatically terminate on [ten years from grant date] (the “Expiration Date”), to the extent not exercised,
unless terminated earlier in accordance with this Option Agreement. After the Expiration Date or such earlier date, the Option shall be of no further force or effect and may not be exercised. 

 

	 	4.	 Exercise of Option. 



 

	 	(a)	 Right to Exercise. The Option will become Vested and exercisable cumulatively according to the following
Vesting Schedule: 


  

			
	 Percentage of Options

Vested and Exercisable
	  	Vesting Date
		
	 33.3%
	  	[year 1]
		
	 33.3%
	  	[year 2]
		
	 33.4%
	  	[year 3]













 (b)     Committee Discretion. Notwithstanding the schedule provided in
subsection (a), the Committee, in its discretion, may accelerate the vesting of some or all of the option at any time or as required in a written employment agreement between the Corporation and the Participant, subject to the terms of the Plan. If
so accelerated, the option will be considered as having vested as of the date specified by the Committee. 

(c)    Method of Exercise. The Option shall be exercisable by delivery of an exercise notice (a form of which is attached
as Exhibit A), stating the election to exercise the Option, the number of whole Shares in respect of which the Option is being exercised, the form of payment, and such other provisions as may be required by the Committee. The exercise notice shall
be delivered to the Corporation in accordance with Section 15 below accompanied by full payment of the Exercise Price, which must be made by one or a combination of the following: 

(1)    Payment in cash; 

(2)    Delivery of previously owned Shares having a Fair Market Value equal to the exercise price; or 

(3)    Delivery of an irrevocable direction to a securities broker acceptable to the Committee (subject to the provisions
of the Sarbanes-Oxley Act of 2002 and any other applicable statute or rule) to sell Shares subject to the Option and to pay a sufficient portion of the net proceeds of the sale to the Corporation in satisfaction of the Exercise Price. 

The Option shall be deemed to be exercised upon receipt by the Corporation of such notice accompanied by the Exercise Price and Tax Payment
(defined below), if required. 
 (d)    Taxes. No portion of the Option may be exercised and no Shares will be delivered
to the Participant or other person pursuant to the exercise of the Option until the Participant or other person has made arrangements acceptable to the Committee for the satisfaction of applicable income tax and tax withholding obligations, if any,
including, without limitation, such other tax obligations of the Participant incident to the receipt of Shares (the “Tax Payment”). Upon exercise of the Option, the Corporation may offset or withhold (from any amount owed by the
Corporation to the Participant) or collect from the Participant or other person an amount sufficient to satisfy such Tax Payment obligation, if any. 

The Participant understands that the Participant may suffer adverse tax consequences as a result of the Participant’s purchase or
disposition of the Shares. The Participant represents that the Participant has consulted with any tax consultants the Participant deems advisable in connection with the purchase or disposition of the Shares and that the Participant is not relying on
the Corporation for any tax advice. 
  

	 	5.	 Restrictions on Exercise. 



The Option may not be exercised if the issuance of the Shares subject to the Option upon such exercise would constitute a violation of any
applicable federal or state securities law. If the 












 
exercise of the Option within the time periods set forth in Sections 6, 7, or 8 of this Option Agreement is prevented by the provisions of this Section 5, the Option shall remain exercisable
until one month after the date the Participant is notified by the Corporation that the Option is exercisable, but in any event no later than the Expiration Date. 
  

	 	6.	 Termination or Change of Continuous Service. 



In the event the Participant’s Continuous Service terminates, other than “for cause” (as defined in the Plan), the Participant
may, but only during the Post-Termination Exercise Period, exercise the portion of the Option that was Vested at the date of such termination (the “Termination Date”). The “Post-Termination Exercise Period” is the period
commencing on the Termination Date and continuing for three months thereafter. In the event of termination of the Participant’s Continuous Service for cause, the Participant’s right to exercise the Option shall, except as otherwise
determined by the Committee, terminate concurrently with the termination of the Participant’s Continuous Service (also the “Termination Date”). In no event, however, shall the Option be exercised later than the Expiration Date. 

In the event of the Participant’s change in status from Non-Employee Director, employee or
Consultant to any other status of Non-Employee Director, employee or Consultant, the Option shall remain in effect. In the event of the Participant’s change in status from
Non-Employee Director to employee or Consultant, Vesting of the Option shall continue only to the extent determined by the Committee as of such change in status. Except as provided in Sections 7 and 8 below,
to the extent that the Option was unvested on the Termination Date, or if the Participant does not exercise the Vested portion of the Option within the Post-Termination Exercise Period, the Option shall terminate. 

 

	 	7.	 Death of Participant. 



In the event of the Participant’s death, the person who acquires the right to exercise the Option pursuant to will or the laws of descent
and distribution may exercise the portion of the Option that was Vested on the date of death within 12 months commencing on the date of death (but in no event later than the Expiration Date). To the extent that the Option was unvested on the date of
death, or if the Vested portion of the Option is not exercised within the time specified herein, the Option shall terminate. 
  

	 	8.	 Disability of Participant. 



If the Participant’s Continuous Service terminates as a result of the Participant’s Disability, the Participant may exercise the
portion of the Option that was Vested on the date of such termination of Continuous Service within three months commencing on the date of termination of Continuous Service (but in no event later than the Expiration Date). To the extent that the
Option was unvested on the date of termination of Continuous Service, or if the Vested portion of the Option is not exercised within the time specified herein, the Option shall terminate. 

 

	 	9.	 Transferability of Option. 



Subject to restrictions on transferability set forth in the Plan, this Option Agreement will be binding upon and benefit the parties, their
successors and assigns. 













	 	10.	 Engaging in Competition With the Corporation. 



If the Participant terminates Continuous Service with the Corporation or an Affiliate for any reason whatsoever, and within 12 months after the
date thereof accepts employment with any competitor of (or otherwise engages in competition with) the Corporation, the Committee, in its sole discretion, may require such Participant to return to the Corporation the economic value of any Award that
is realized or obtained (measured at the date of exercise, Vesting, or payment) by such Participant at any time during the period beginning on the date that is one year prior to the date of such Participant’s termination of Continuous Service
with the Corporation. 
  

	 	11.	 Governing Law. 



This Option Agreement will be administered, interpreted and enforced in accordance with the laws of the State of Delaware, without regard to
principles of conflicts of laws. 
  

	 	12.	 Rights as Shareholder. 



Until the stock certificate representing the Shares is issued, no right to vote or receive dividends or any other rights as a shareholder shall
exist with respect to the Shares, notwithstanding the exercise of the Option. The Corporation shall issue (or cause to be issued) such stock certificate promptly after the Option is exercised. No adjustment will be made for a dividend or other right
for which the record date is prior to the date the stock certificate is issued, except as provided in Article 10 of the Plan. 
  

	 	13.	 Adjustments upon Changes in Capitalization. 



The Option shall be subject to the provisions of Article 11 of the Plan relating to adjustments upon changes in capitalization and similar
corporate events. 
  

	 	14.	 Venue and Waiver of Jury Trial. 



The Corporation, the Participant, and the Participant’s assignees pursuant to Section 9 (the “parties”) agree that any
suit, action, or proceeding arising out of or relating to the Notice or this Option Agreement shall be brought in the United States District Court for the Western District of Washington (or should such court lack jurisdiction to hear such action,
suit or proceeding, in a Washington state court in Clark County) and that the parties shall submit to the jurisdiction of such court. The parties irrevocably waive, to the fullest extent permitted by law, any objection the party may have to the
laying of venue for any such suit, action or proceeding brought in such court. THE PARTIES ALSO EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR PROCEEDING. If any one or more provisions of this
Section 14 shall for any reason be held invalid or unenforceable, it is the specific intent of the parties that such provisions shall be modified to the minimum extent necessary to make it or its application valid and enforceable. 

 

	 	15.	 Notices. 



Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given (a) upon personal delivery,
(b) one business day after deposit for overnight 












 
delivery by a nationally recognized air courier service, (c) five business days after deposit in the United States mail by certified mail (if the parties are within the United States), with
postage and fees prepaid, (d) on the date of facsimile transmission, with confirmed transmission, or (e) by email transmission, addressed to the party to be notified as follows: 

If to the Corporation: 

CytoDyn Inc. 
 1111 Main Street,
Suite 660 
 Vancouver, Washington 98660 

Facsimile: (360) 799-5954 

Attn: Secretary 
 If to the
Participant: 
  

                       
                  
  

                       
                  
  

                       
                  

E-mail:               
              

Fax:                      
            
 or such other address as such party may designate by 10 days’ advance written
notice to the other party. 
  

									
	CYTODYN INC.	  		 	PARTICIPANT	  	


									
					
	By:	 	  
	  		 	  
	  	


									
	 Name: Nader Z. Pourhassan
	  		 		  	
	 Title: President & CEO
	  		 		  	













 EXHIBIT A 

CYTODYN INC. 
 2012
EQUITY INCENTIVE PLAN 
 EXERCISE NOTICE 

CytoDyn Inc. 
 1111 Main Street, Suite 660 

Vancouver, Washington 98660 
 Telephone: (360) 980-8524 
 Facsimile: (360) 799-5954 

Attention: Secretary 
  

					
	 Participant:
	 	  
	  	
		 	 Print Name
	  	
			
	 Mailing Address:
	 	  
	  	
			
		 	  
	  	
			
		 	  
	  	
			
	 Telephone Number:
	 	  
	  	
	
	 Option:
                The option evidenced by a Stock Option Award Agreement dated             ,
        .



 OPTION EXERCISE 

I hereby elect to exercise the Option to purchase shares (“Shares”) of common stock of CytoDyn Inc. covered by the Option as follows:

  

					
	Number of Shares Purchased (a)	 	                                  	  	
			
	Per-Share Option Price (b)	 	$                                	  	
			
	Aggregate Purchase Price (a times b)	 	$                                	  	
			
	Closing Date of Purchase	 	                                  	  	
			
	Form of Payment [Check One]:	 		  	

  

	 	☐	 My check in the full amount of the Aggregate Purchase Price (as well as a check for any withholding taxes, if
this box ☐ is checked). See “Instructions” below. 


  

	 	☐	 Delivery of previously owned shares of CytoDyn common stock with a fair market value equal to the Aggregate
Purchase Price. See “Instructions” below. Note that restricted shares acquired from CytoDyn under one of its stock plans may be used for this purpose only if such shares have become vested. 















	 	☐	 My irrevocable direction to my securities broker (see below) to sell Shares subject to the Option and deliver a
portion of the sales proceeds to CytoDyn Inc., in full payment of the Aggregate Purchase Price (as well as any withholding taxes, if this box ☐ is checked). See “Instructions” below. I hereby confirm that any sale of Shares will be
in compliance with CytoDyn’s policies on insider trading and Rule 144, if applicable. I HEREBY IRREVOCABLY AUTHORIZE              to (name of broker) transfer funds to
CytoDyn Inc., from my account in payment of the Aggregate Purchase Price (and withholding taxes, if applicable) and CytoDyn Inc., is hereby directed to issue the Shares for my account with such broker and to transmit the Shares to the broker
indicated above. 


 Instructions: 

(1)    If payment is to be by check, a certified or cashier’s check for the amount of the Aggregate
Purchase Price payable to CytoDyn Inc., should be submitted with this Notice. If you wish to pay by wire transfer, please contact CytoDyn Inc. for instructions. 

(2)    If payment is to be by surrender of previously owned shares or by attestation of ownership (see
Attestation Form below), either a certificate for the shares accompanied by a stock power endorsed in blank or the completed Attestation Form should be submitted with this Notice. If applicable, a certificate for any shares in excess of those needed
to satisfy the Aggregate Purchase Price will be returned to you with the certificate for your option shares. Any change in registration between the payment shares and the new shares will require a properly executed stock power that is guaranteed by
an institution participating in a recognized medallion signature guarantee program. 

(3)    Withholding tax is due immediately upon exercise of a nonqualified stock option by an employee or
former employee. Non-employee directors are not currently subject to withholding. If withholding tax is due at the time of exercise, you will be notified of the amount and satisfactory arrangements must be
made for payment before a stock certificate for your option shares will be delivered to you (or your broker, if applicable). 
 ISSUANCE
INSTRUCTIONS FOR STOCK CERTIFICATES 
 Please register the stock certificate(s) in the following name(s): 

 

                       
                                         

  

                       
                                         

  

                       
                                         













 If applicable, please check one: ☐ JT TEN ☐ TEN
COM    ☐ Other 
 Please deliver the stock certificate(s) to (check one): 

 

			
	☐ My brokerage account	  	
		
	
                   
                                     
	  	
		
	
                   
                                     
	  	
		
	
                   
                                     
	  	
		
	
Attn:                  
                              
	  	
		
	
Account No.:                
                    ; or
	  	
		
	☐ My mailing address set forth above.	  	


			
		
	                                      
                  	  	                                     
                           
	Date	  	Signature of Participant

 ATTESTATION FORM 

As indicated above, I have elected to use shares of CytoDyn common stock that I already own to pay the Aggregate Purchase Price of the Option.

 I attest to the ownership of the shares represented by the certificate(s) listed below or to the beneficial ownership of the shares held
in the name of my broker, as indicated in the attached copy of my brokerage statement. I will be deemed to have delivered such shares to CytoDyn in connection with the exercise of my Option. 

I understand that, because I (and any joint owner) will retain ownership of the shares (the “Payment Shares”) deemed delivered to
pay the Aggregate Purchase Price, the number of shares to be issued to me upon exercise of my Option will be reduced by the number of Payment Shares. I represent that I have full power to deliver and convey certificates representing the Payment
Shares to CytoDyn and by such delivery and conveyance could have caused CytoDyn to become sole owner of the Payment Shares. The joint owner of the Payment Shares, if any, by signing this Form, consents to these representations and to the exercise of
the Option by this attestation. 
 I certify that any Payment Shares originally issued to me as restricted shares are now fully vested. 












 List certificate(s) and number of shares covered, or attach a copy of your brokerage
statement: 
  

			
	Common Stock
Certificate Number	  	Number of
Shares Covered
	 	 
	 	  	 
	 	 
	 	  	 
	 	 
	 	  	 

  

					
	 Date:
                    
	 		  	
			
	 Print Name of Optionholder:
	 	  
	  	
			
	 Signature of Optionholder:
	 	  
	  	
			
	 Print Name of Joint Owner:
	 	  
	  	
			
	Signature of Joint Owner:	 	  
	  	

 If you are attaching a copy of your brokerage statement, you must have your securities broker complete the
following: 
 The undersigned hereby certifies that the foregoing attestation is correct. 

 

	
	
                   
                                       


	Name of Brokerage Firm
	
	By:                                     
               
	
	
                   
                                       


	Print Name of Signing Broker
	
	Date:                                     
            
	
	Telephone No.: