Document:

Exhibit 10.1

 

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT
(the “Agreement”) is made effective as of February 10, 2015 (the “Effective Date”),
by and among Digital Turbine, Inc., a Delaware corporation (the “Company”), and James Alejandro
(the “Executive”). Executive’s employment shall commence on February 27, 2015 (the “Start
Date”). In consideration of the mutual covenants contained in this Agreement, the Company and the Executive agree
as follows:

 

1. Employment. The Company
agrees to employ the Executive, and the Executive agrees to be employed by the Company, on the terms and conditions set forth in
this Agreement.

 

2. Capacity.
The Executive shall serve the Company as its Chief Accounting Officer & Controller (“CAO”) of Digital Turbine,
Inc., and shall report directly to the Executive Vice President and Chief Financial Officer (“CFO”) of the Company.
As CAO, the Executive shall be responsible for overseeing all aspects of the Company and
its subsidiaries’ businesses accounting function, including but not limited to issuing timely and complete financial statements
under US GAAP, regulatory compliance with accounting standards and practices, external financial and management reporting, for
corporate internal controls, risk management and support of the corporate financial planning and analysis functions, and other
accounting duties as shall be assigned to him by the CFO. Executive represents he is and at all times during the Term (as
defined below) will be legally present and entitled to work in the United States.

 

3. Term. Subject to
the provisions of Section 6, the term of employment pursuant to this Agreement shall be two (2) years, i.e., twenty-four (24) calendar
months from the Start Date, (the “Term).

 

4. Compensation and Benefits.
The regular compensation and benefits payable to the Executive under this Agreement shall be as follows:

 

(a) Salary.
For all services rendered by the Executive under this Agreement, the Company shall pay the Executive an annual salary (the “Salary”)
at the annual rate of One Hundred Eighty-Two Thousand five hundred Dollars ($182,500). The Executive’s Salary shall be payable
in periodic installments in accordance with the Company’s usual practice for its employees, but in no event less than monthly
over the year in which the Salary is earned.

 

(b) Retention
Bonus. The Company shall pay the Executive a lump sum cash retention bonus of Twenty-Five Thousand Dollars ($25,000) (the
“Retention Bonus”) ninety (90) days following the Start Date (“Retention Bonus Pay Date”)
provided that, this Agreement has not been terminated prior to or on the Retention Bonus Pay Date.

 

(c) Annual
Bonus. While he is employed as CAO, the Executive shall be entitled to be paid an annual incentive bonus in cash in an
amount of up to thirty-five percent (35%) of the Executive’s Salary subject to satisfaction of performance-related milestones
to be mutually agreed to by the Company and Executive within forty-five (45) days of the Effective Date, the achievement (or non-achievement)
of which shall be determined in good faith by the Company. All bonus amounts under this subsection shall (i) be paid within thirty
(30) days after the achievement (or non-achievement) of the milestones has been determined for the applicable yearly period (or
if applicable, stub period), (but in no event later than the fifteenth (15th) day of the third (3rd) month (i.e., 21⁄2 months)
after the later of the end of the calendar year or the Company’s fiscal year in which the yearly period (or if applicable,
stub period) ends) and (ii) be conditioned on Executive being employed throughout the entire yearly period (or if applicable, stub
period) with respect to which the bonus is determined.

  

(d) Regular
Benefits. The Executive shall also be entitled to participate in any qualified retirement plans, deferred compensation
plans, stock option and incentive plans, stock purchase plans, group and executive medical insurance plans (i.e., coverage for
the Executive and family), life insurance plans, disability income plans, retirement plans, vacation plans, expense reimbursement
plans and other benefit plans which the Company may from time to time have in effect for any, all or most of its senior executives
(collectively “Company Benefit Plans”). Such participation shall be subject to the terms of applicable
plan documents, generally applicable policies of the Company, applicable law and the discretion of the Board of Directors, the
Compensation Committee or any administrative or other committee provided for in or contemplated by any such plan. Nothing contained
in this Agreement shall be construed to create any obligation on the part of the Company to establish any such plans or to maintain
the effectiveness of any such plans which may be in effect from time to time.

 

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(e) Reimbursement
of Business Expenses. The Company shall reimburse the Executive for all reasonable expenses incurred by the Executive in
performing services during the Term, in accordance with the Company’s policies and procedures, as in effect from time to
time, including, but not limited to business air travel (or if unavailable, first class) upon the prior written approval of the
CFO, meals and entertainment, fuel costs for transportation, wireless mobile communications, and personal computer equipment.

 

(f) Stock
Option Grant. On the Start Date, the Company shall grant the Executive options to purchase 100,000 shares of common stock
of the Company at an exercise price equal to the closing price of the Company’s common stock on the Nasdaq Capital Market
on the Start Date (or next trading date if Start Date is not a trading date) under a shareholder-approved equity incentive plan,
subject to the terms and conditions specified in Company’s standard stock option agreement in substantially the form of Schedule
A hereto (“Option Agreement”). The terms of the plan and the Option Agreement are hereby incorporated
by reference into this Agreement. These options shall vest over four years (“Option Agreement Term”)
as follows: (i) 25,000 options shall vest on the one year anniversary of the Start Date; (ii) the remaining 75,000 options shall
vest in thirty-six (36) installments from months 13 to 48 of the Option Agreement Term; and (iii) during the Option Agreement Term,
any and all unvested options shall vest immediately upon the sale of all or substantially all of the assets of the Company, upon
the merger or reorganization of the Company following which the equity holders of the Company immediately prior to the consummation
of such merger or reorganization collectively own less than 50% of the voting power of the resulting entity, or upon the sale of
equity securities of the Company representing 50% or more of the voting power of the Company or 50% or more of the economic interest
in the Company in a single transaction or in a series of related transactions (i.e., a “Change of Control”).

 

(g) Exclusivity
of Salary and Benefits. The Executive shall not be entitled to any payments or benefits other than those provided under
this Agreement for services rendered by the Executive to the Company during the Term.

 

5. Extent of Service.
During the Executive’s employment under this Agreement, the Executive shall, subject to the direction and supervision of
the CFO, devote the Executive’s full business time, best efforts and business judgment, skill and knowledge to the advancement
of the Company’s interests and to the discharge of the Executive’s duties and responsibilities under this Agreement.
The Executive shall not engage in any other business activity, except as may be approved by the CFO or the Company’s Chief
Executive Officer; provided, however, that nothing in this Agreement shall be construed as preventing the Executive from:

 

(a) investing the Executive’s
personal assets in any non-competitive business enterprise, company or other entity in such form or manner as shall not require
any material personal time commitment on the Executive’s part in connection with the operations or affairs of such other
enterprise, company or other entity in which such investments are made; or

 

(b) engaging in religious,
charitable or other community or non-profit activities that do not impair the Executive’s ability to fulfill the Executive’s
duties and responsibilities under this Agreement. 

 

6. Termination. Notwithstanding
the provisions of Section 3, the Executive’s employment under this Agreement shall terminate under the following circumstances
set forth in this Section 6. For purposes of this Agreement, the date of the Executive’s termination (the “Termination
Date”) shall mean the date of the Executive’s “separation from service” as such term is defined
under Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”).

 

(a) Termination
by the Company for Cause. The Executive’s employment under this Agreement may be terminated for Cause without liability
on the part of the Company (except only to pay those specific amounts set forth in Section 7(c)) effective immediately upon approval
of the Board of Directors and written notice to the Executive. The following shall constitute “Cause”
for such termination:

 

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(i) any act
committed by the Executive against the Company or any of its affiliates which involves fraud, willful misconduct, gross negligence
or refusal to comply with the reasonable, legal and clear written instructions given to him by the Board through Board action or
the CEO or CFO that do not violate this Agreement; provided, however, that Executive shall have a period of fifteen (15) days to
cure such conduct after written reasonably specific notice thereof, unless such conduct is not (as in the case of fraud or willful
misconduct) reasonably curable. For purposes of the foregoing sentence, no act, or failure to act, on Executive’s part shall be
considered “willful” unless the Executive acted, or failed to act, in bad faith or without reasonable belief that his
act or failure to act was in the best interest of the Company or any subsidiary; or

 

(ii) the
conviction of the Executive of, or indictment (or procedural equivalent, or guilty plea or plea of nolo contender) of the Executive
for (A) a felony or (B) any misdemeanor involving moral turpitude where the circumstances reasonably would have a negative impact
on the Company, deceit, dishonesty or fraud; provided, however, that Executive shall have a period of fifteen (15) days to cure
such conduct after written reasonably specific notice thereof, unless such conduct (as in the case of dishonesty or fraud) is not
reasonably curable; or

 

(iii) material
breach of this Agreement; provided, however, that Executive shall have a period of fifteen (15) days to cure such conduct after
written reasonably specific notice thereof, unless such conduct is not reasonably curable.

 

(b) Termination
by the Company Without Cause. Subject to the payment of Termination Benefits pursuant to Section 7(b), the Executive’s
employment under this Agreement may be terminated by the Company, without Cause, upon not less than fifteen (15) days’ prior
written notice to the Executive.

 

(c) Death.
The Executive’s employment with the Company shall terminate automatically upon his death.

 

(d) Disability.
If the Executive shall become Disabled so as to be unable to perform the essential functions of the Executive’s then existing
position or positions under this Agreement with or without reasonable accommodation, the Board of Directors may remove the Executive
from any responsibilities and/or reassign the Executive to another position with the Company for the remainder of the Term or during
the period of such Disability. Notwithstanding any such removal or reassignment, the Executive shall continue to receive the Executive’s
full Salary (less any disability pay or sick pay benefits to which the Executive may be entitled under the Company’s policies)
and benefits under Section 4 of this Agreement (except to the extent that the Executive may be ineligible for one or more such
benefits under applicable plan terms) for a period of time equal to twelve (12) months payable at the same time as such amounts
would otherwise have been paid to the Executive had he continued in his current capacity. If the Executive is unable to perform
substantial services of any kind for the Company during this period, such period shall be considered a paid leave of absence and
the Executive shall have the contractual right to return to employment at any time during such period. If the Executive’s
Disability continues beyond such twelve (12) month period, the Executive’s employment may be terminated by the Company by
reason of Disability at any time thereafter. For purposes hereof, the term “Disabled” or “Disability”
shall mean a written determination that the Executive, as certified by at least two (2) duly licensed and qualified physicians,
one (1) approved by the Board of Directors of the Company and one (1) physician approved by the Executive (the “Examining
Physicians”), or, in the event of the Executive’s total physical or mental disability, the Executive’s
legal representative, that the Executive suffers from a physical or mental impairment that renders the Executive unable to perform
the Executive’s regular personal duties under this Agreement and that such impairment can reasonably be expected to continue
for a period of six (6) consecutive months or for shorter periods aggregating one hundred eighty (180) days in any twelve (12)
month period; provided, however, that the Executive’s primary care physician may not serve as one of the Examining Physicians
without the consent of the Company and the Executive (or the Executive’s legal representation). The Executive shall cooperate
with any reasonable request of a physician to submit to a physical examination for purposes of such certification. Nothing in this
Section 6(d) shall be construed to waive the Executive’s rights, if any, under existing law including, without limitation,
the Family and Medical Leave Act of 1993, 29 U.S.C. §2601 et seq. and the Americans with Disabilities Act, 42 U.S.C. §12101
et seq.

 

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(e) Termination
by the Executive for Good Reason. Subject to the payment of Termination Benefits pursuant to Section 7(b), the Executive’s
employment under this Agreement may be terminated by the Executive for Good Reason. For purposes of this Agreement, “Good
Reason” shall be present where Executive gives notice to the CFO and the CEO of his voluntary resignation within
thirty (30) days after the occurrence of any of the following, without Executive’s written consent: (i) breach by the Company
of the insurance or indemnification provisions herein, or failure of the Company to pay or cause to be paid or delivered any amounts
or options due Executive when due under the terms and conditions hereunder, in each case subject to a fifteen (15) day cure period
by the Company following reasonably specific written notice by the Executive; (ii) the Executive’s not reporting directly
to the CFO of the Company subject to a thirty (30) day cure period by the Company following reasonably specific written notice
by the Executive, unless the sole reason for such failure to report to the CFO is that a Change of Control occurred and as a result
the Executive’s reporting structure in the buyer’s organization puts Executive at effectively the same or higher level
of overall responsibility and authority (comparing the positions in each organization) as was the case immediately prior to such
Change of Control, as reasonably determined by the CEO, CFO and Board prior to such Change of Control; or (iii) material diminution
in Executive’s position, duties, authority or responsibility, without Cause, subject to a thirty (30) day cure period by
the Company following reasonably specific written notice by the Executive. If the Executive fails to resign within sixty (60) days
after the expiration of the applicable cure period, then such event will not be a basis to resign for Good Reason.

 

7. Compensation Upon Termination.

 

(a) Termination
Generally. If the Executive’s employment with the Company is terminated for any reason during or upon expiration
of the Term , the Company shall pay or provide to the Executive (or to his authorized representative or estate) (i) any earned
but unpaid Salary payable on the Termination Date, (ii) accrued bonuses for a previously completed yearly or stub measurement period
(for avoidance of doubt, no pro-rata bonus is payable under this clause, but only a bonus for a previously completed yearly or
stub measurement period) earned but not yet paid, payable at the same time such amounts would otherwise have been paid to the Executive,
(iii) any unpaid expense reimbursements, payable in accordance with the Company’s reimbursement policies, (iv) any accrued
but unused vacation, payable on the Termination Date, and (v) any vested benefits the Executive may have under any of the Company
Benefit Plans, payable as specified in the applicable plan documents (collectively, the “Accrued Compensation”).

 

 (b) Termination by the
Company Without Cause or by Executive for Good Reason. In the event of termination of the Executive’s employment
with the Company pursuant to Section 6(b) or 6(e) above prior to the expiration of the Term and subject to the Executive’s
execution and delivery of a release of any and all legal claims in a form satisfactory to the Company within forty-five (45) days
of the Termination Date (the “Release Period”), the Company shall provide to the Executive, in addition
to the Accrued Compensation, the following termination benefits (“Termination Benefits”) effective as
of the final day of the Release Period:

 

(i) continuation
of the Executive’s Salary at the rate and in accordance with the Company’s payroll practices then in effect pursuant
to Section 4(a); and

 

(ii) continuation
of any executive health and group health plan benefits to the extent authorized by and consistent with 29 U.S.C. § 1161 et
seq. (commonly known as “COBRA”), subject to payment of premiums by the Company to the extent that the Company was
covering such premiums as of the Termination Date (if permitted by law without violation of applicable discrimination rules, or,
if not, the equivalent after-tax value payable as additional severance at the same time such premiums are otherwise payable);

 

(iii) a pro-rata
annual bonus through the Termination Date, as reasonably determined by the Compensation Committee applying the applicable standards
in section 4(c) above or any schedules thereto and paid at the same time as the bonus would otherwise be payable under Section
4(c); and

 

(iv) acceleration
of vesting of the options granted under this Agreement on a pro-rata basis as if the vesting schedule had been monthly rather than
annual (“deemed monthly vesting”); provided, if the Termination Date is on a date other than a deemed monthly vesting
date, then solely for purposes of this clause (iv), the Termination Date shall be the next deemed monthly vesting date that occurs
after the actual Termination Date.

 

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The Termination Benefits set forth in subsections
7(b)(i) and (ii) and above shall continue effective for the nine (9) months after the Termination Date or the end of the Term,
whichever is sooner (the “Termination Benefits Period”); provided, however, that in the event that the
Executive commences any employment during the Termination Benefits Period, the benefits provided under Section 7(b)(ii) shall cease
effective as of the date Executive qualifies for group health plan benefits in his new employment. The Company’s liability
for Salary continuation pursuant to Section 7(b)(i) shall not be reduced by the amount of any severance pay paid to the Executive
pursuant to any severance pay plan or stay bonus plan of the Company. Notwithstanding the foregoing, nothing in this Section 7(b)
shall be construed to affect the Executive’s right to receive COBRA continuation entirely at the Executive’s own cost
to the extent that the Executive may continue to be entitled to COBRA continuation after Company-paid premiums cease. The Executive
shall be obligated to give prompt notice of the date of commencement of any employment during the Termination Benefits Period and
shall respond promptly to any reasonable inquiries concerning any employment in which the Executive engages during the Termination
Benefits Period.

 

The Company acknowledges and agrees that
under certain circumstances involving the termination of the Executive’s employment and/or a Change of Control transaction
involving the Company, the Executive shall be entitled to accelerated vesting on his options to purchase shares of capital stock
of the Company, all to the extent provided in that certain Stock Option Agreement referred to in Section 4(f) hereof.

 

Any Section 409A payments which are subject
to execution of a waiver and release which may be executed and/or revoked in a calendar year following the calendar year in which
the payment event (such as termination of employment) occurs shall commence payment only in the calendar year in which the Release
Period ends as necessary to comply with Section 409A. 

 

The Company shall provide the release required
by this Section prior to or upon the Executive’s termination of employment.

 

(c) Termination
by Reason of Cause, Death, Disability, or Expiration of Term. If the Executive’s employment is terminated for any
reason other than (i) by the Company without Cause under Section 6(b) or (ii) by the Employee for Good Reason under Section 6(e), the
Company shall have no further obligation to the Executive other than payment of his Accrued Compensation.

 

8. Confidential Information, Nonsolicitation and
Cooperation.

 

(a) Confidential
Information. As used in this Agreement, “Confidential Information” means proprietary information
of the Company which is of value to the Company in the course of conducting its business and the disclosure of which could result
in a competitive or other disadvantage to the Company. Confidential Information includes, without limitation, financial information,
reports, and forecasts; inventions, improvements and other intellectual property; trade secrets; know-how; designs, processes or
formulae; software; market or sales information or plans; customer lists; and business plans, prospects and opportunities (such
as possible acquisitions or dispositions of businesses or facilities) which have been discussed or considered by the management
of the Company. Confidential Information includes information developed by the Executive in the course of the Executive’s
employment by the Company, as well as other information to which the Executive may have access in connection with the Executive’s
employment. Confidential Information also includes the confidential information of others with which the Company has a business
relationship. Notwithstanding the foregoing, Confidential Information does not include (i) information in the public domain, unless
due to breach of the Executive’s duties under Section 8(b), or (ii) information obtained in good faith by the Executive from
a third party who was lawfully in possession of such information and not subject to an obligation of confidentiality owed to the
Company.

 

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(b) Duty
of Confidentiality. The Executive understands and agrees that the Executive’s employment creates a relationship of
confidence and trust between the Executive and the Company with respect to all Confidential Information. At all times, both during
the Executive’s employment with the Company and after termination, the Executive will keep in strict confidence and trust
all such Confidential Information, and will not use or disclose any such Confidential Information without the written consent of
the Company, except (i) as may be necessary in the ordinary course of performing the Executive’s duties to the Company or
(ii) as may be required in response to a valid order by a court or other governmental body or as otherwise required by law (provided
that if the Executive is so required to disclose the Confidential Information, the Executive shall (i) immediately notify the Company
of such required disclosure sufficiently in advance of the intended disclosure to permit the Company to seek a protective order
or take other appropriate action, and (ii) cooperate in any effort by the Company to obtain a protective order or other reasonable
assurance that confidential treatment will be afforded the Confidential Information).

 

(c) Documents,
Records, etc. All documents, records, data, apparatus, equipment and other physical property, whether or not pertaining
to Confidential Information, which are furnished to the Executive by the Company (except for documents provided to the Executive
(i) concerning his compensation or his participation in Company Benefit Plans or (ii) in connection with his ownership of Company
stock), or are produced by the Executive in connection with the Executive’s employment, will be and remain the sole property
of the Company. The Executive will return to the Company all such materials and property as and when requested by the Company.
In any event, the Executive will return all such materials and property immediately upon termination of the Executive’s employment
for any reason. The Executive will not retain with the Executive any such material or property or any copies thereof after such
termination.

 

(d) Nonsolicitation.
During the Term and for one (1) year thereafter, the Executive (i) will refrain from directly or indirectly employing, attempting
to employ, recruiting or otherwise soliciting, inducing or influencing any person to leave employment with the Company (other than
subordinate employees whose employment was terminated in the course of the Executive’s employment with the Company); and
(ii) will refrain from soliciting or encouraging any customer or supplier to terminate or otherwise modify adversely its business
relationship with the Company. The Executive understands that the restrictions set forth in this Section 8(d) are intended to protect
the Company’s interest in its Confidential Information and established employee, customer and supplier relationships and
goodwill, and agrees that such restrictions are reasonable and appropriate for this purpose.

 

(e) Third-Party
Agreements and Rights. The Executive hereby confirms that the Executive is not bound by the terms of any agreement with
any previous employer or other party which restricts in any way the Executive’s use or disclosure of information or the Executive’s
engagement in any business. The Executive represents to the Company that the Executive’s execution of this Agreement, the
Executive’s employment with the Company and the performance of the Executive’s proposed duties for the Company will
not violate any obligations the Executive may have to any such previous employer or other party, including under any non-competition
agreement, invention or confidentiality agreement, with a former employer, client or any other person or entity. In the Executive’s
work for the Company, the Executive will not disclose or make use of any information in violation of any agreements with or rights
of any such previous employer or other party, and the Executive will not bring to the premises of the Company any copies or other
tangible embodiments of non-public information belonging to or obtained from any such previous employment or other party. Further,
the Executive agrees to indemnify the Company for any loss, including, but not limited to, reasonable attorneys’ fees and
expenses, that the Company may incur based upon or arising out of the Executive’s breach of this subsection.

 

 (f) Litigation
and Regulatory Cooperation. During and after the Executive’s employment, the Executive shall cooperate reasonably
with requests from the Company, or the Company’s legal counsel, in the defense or prosecution of any claims or actions now
in existence or which may be brought in the future against or on behalf of the Company which relate to events or occurrences that
transpired while the Executive was employed by the Company, provided, however, this obligation does not apply after the Executive
ceases employment with the Company to any claim or action by the Company against the Executive, or any claim or action by the Executive
against the Company. Such cooperation shall include, but not be limited to, being available to meet with counsel to prepare for
discovery or trial and to act as a witness on behalf of the Company at mutually convenient times. During and after the Executive’s
employment, the Executive also shall cooperate fully with the Company in connection with any investigation or review of any federal,
state or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while
the Executive was employed by the Company. The Company shall reimburse the Executive for any reasonable out-of-pocket expenses
incurred in connection with the Executive’s performance of obligations pursuant to this Section 8(f), and if the Executive
spends more than ten (10) hours in any calendar month in performance of these obligations, the Company shall pay the Executive
$500 per hour for each part of an hour over ten (10) hours in such calendar month.

 

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(g) Intellectual
Property. Except as provided under Section 2870 of the California Labor Code (a copy of which is attached as Schedule
C) or similar Texas law, the Company shall be the sole owner of all the products and proceeds of Executive’s services
hereunder, including, without limitation, all materials, ideas, concepts, formats, suggestions, developments, and other intellectual
properties that Executive may acquire, obtain, develop or create in connection with his services hereunder and during the Term,
free and clear of any claims by Executive (or anyone claiming under Executive) of any kind or character whatsoever (other than
Executive’s rights and benefits hereunder). Executive shall, at the request of the Company, execute as of the Start Date,
an Employee Confidential Information, Non-Solicitation and Invention Assignment Agreement and any other such assignments, certificates
or other instruments as the Company may from time to time deem necessary or desirable to evidence, establish, maintain, perfect,
protect, enforce or defend the Company’s right, title and interest in and to any such products and proceeds of Executive’s
services hereunder.

 

(h) Injunction.
The Executive agrees that it would be difficult to measure any damages caused to the Company which might result from any breach
by the Executive of the promises set forth in this Section 8, and that in any event money damages may be an inadequate remedy for
any such breach. Accordingly, as further set forth in Section 9 of this Agreement, the Executive agrees that if the Executive breaches,
or proposes to breach, any portion of this Agreement, the Company shall be entitled, in addition to all other remedies that it
may have, to an injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual
damage to the Company and without the need to post a bond or other security.

 

9. Arbitration
of Disputes. Executive and the Company agree that, to the fullest extent permitted by law, Executive and the Company will
submit all disputes arising under this Agreement or arising out of or related to Executive’s employment with or separation
from the Company and/or Parent, to final and binding arbitration in Austin, Texas, before an arbitrator associated with the American
Arbitration Association, JAMS or other mutually agreeable alternative dispute resolution service (the “Selected Service”).
Included within this provision are (but this provision is not limited to) any claims for breach of contract, any tort claims (including
unlawful harassment), and any claims based on violation of local, state or federal law, such as claims for discrimination or civil
rights violations under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with
Disabilities Act, or similar statutes. If there is a dispute as to whether an issue or claim is arbitrable, the arbitrator will
have the authority to resolve any such dispute, including claims as to fraud in the inducement or execution, or claims as to validity,
construction, interpretation or enforceability. The arbitrator selected shall have the authority to grant Executive or the Company
or both all remedies otherwise available by law. The arbitrator will be selected from a neutral panel pursuant to the National
Rules for the Resolution of Employment Disputes of the American Arbitration Association or similar rules of the selected service
(“Rules of Selected Service”). Such rules can be obtained from the Company’s Human Resources Department or from
the applicable Selected Service’s website. The arbitration will be conducted in accordance with the Rules of Selected Service.
Notwithstanding anything to the contrary in the Rules of Selected Service, however, the arbitration shall provide (i) for written
discovery and depositions adequate to give the parties access to documents and witnesses that are essential to the dispute and
(ii) for a written decision by the arbitrator that includes the essential findings and conclusions upon which the decision is based.
The arbitrator’s award shall be enforceable in any court having jurisdiction thereof. The parties shall each bear their own
costs and attorneys’ fees incurred in conducting the arbitration and, except in such disputes where Executive asserts a claim
otherwise under a state of federal statute prohibiting discrimination in employment (“a Statutory Claim”), or unless
required otherwise by applicable law, shall split equally the fees and administrative costs charged by the arbitrator and the applicable
arbitration service. In disputes where Executive asserts a Statutory Claim against the Company, or where otherwise required by
law, Executive shall be required to pay only the applicable arbitration service filing fee to the extent such filing fee does not
exceed the fee to file a complaint in state or federal court. The Company shall pay the balance of the arbitrator’s fees
and administrative costs. To the extent permissible under the law, however, and following the arbitrator’s ruling on the
matter, the arbitrator may rule that the arbitrator’s fees and costs be distributed in an alternative manner. In any arbitration
brought under this Section, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and costs. The
arbitrator shall apply the same standard with respect to the awarding of fees and costs as would be awarded if such claim had been
asserted in state or federal court. This mutual arbitration agreement does not prohibit or limit either Executive’s or the
Company’s right to seek equitable relief from a court, including, but not limited to, injunctive relief, a temporary restraining
order, or other interim or conservatory relief, pending the resolution of a dispute by arbitration. There will be no right or authority
for any claim subject to arbitration to be heard or arbitrated on a class or collective basis, as a private attorney general, or
in a representative capacity on behalf of any other Person. The arbitrator shall have no authority to add to or to modify the terms
described in this Paragraph, shall apply all applicable law, and shall have no lesser and no greater remedial authority than would
a court of law resolving the same claim or controversy. EXECUTIVE UNDERSTANDS AND AGREES THAT THIS AGREEMENT TO ARBITRATE CONSTITUTES
A WAIVER OF EXECUTIVE’S RIGHT TO A TRIAL BY JURY OF ANY MATTERS SUBJECT TO ARBITRATION UNDER THIS AGREEMENT.

 

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10. Integration. This
Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior
agreements and discussions between the parties with respect to any related subject matter.

 

11. Assignment; Successors and
Assigns, etc. Neither the Company nor the Executive may make any assignment of this Agreement or any interest herein, by
operation of law or otherwise, without the prior written consent of the other party; but the Company may assign its rights under
this Agreement without the consent of the Executive, in the event that the Company shall effect a reorganization, consolidate with
or merge into any other corporation, partnership, organization or other entity, or transfer all or substantially all of its properties
or assets to any other corporation, partnership, organization or other entity, in which event the Company will obtain a written
confirmation of the assumption of the Company’s obligation hereunder for the benefit of the Executive. This Agreement shall
inure to the benefit of and be binding upon the Company and the Executive, their respective successors, executors, administrators,
heirs and permitted assigns.

 

12. Enforceability.
If any portion or provision of this Agreement (including, without limitation, any portion or provision of any section of this Agreement)
shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement,
or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable,
shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent
permitted by law.

 

13. Waiver. No waiver
of any provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of any party to
require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement,
shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

 

14. Notices. Any notices,
requests, demands and other communications provided for by this Agreement shall be sufficient if in writing and delivered in person
or sent by a nationally recognized overnight courier service or by registered or certified mail, postage prepaid, return receipt
requested, to the Executive at the Executive’s last residential address the Executive has filed in writing with the Company
or, in the case of the Company, at its main offices, attention of the Chief Executive Officer, and shall be effective on the date
of delivery in person or by courier or three (3) days after the date mailed. 

 

15. Third Party Beneficiary; Amendment. The
Executive and the Company acknowledge and agree that no third party shall have any rights or benefits under this Agreement. This
Agreement may be amended or modified only by a written instrument signed by the Executive and the Company.

 

16. Governing Law. This
contract has been entered into in the State of Texas and shall be construed under and be governed in all respects by the laws of
the State of Texas, without giving effect to the conflict of laws principles of such state; provided, however, that the indemnification
agreement referred to in Section 18 shall be governed by the laws of the State of Delaware.

 

17. Counterparts. This
Agreement may be executed in any number of original, facsimile or other electronic counterparts, each of which when so executed
and delivered shall be taken to be an original; but such counterparts shall together constitute one and the same document.

 

    	Page 8 of 10

    	 

    

 

18. Indemnification.
Company and Executive shall enter that Indemnification Agreement in substantially the form of Schedule B on the date hereof.

 

19. Directors’ and Officers’
Insurance. As soon as reasonably practicable following the Effective Date, the Company shall obtain (if it does not already
have) and continually maintain (including by obtaining renewals or replacement policies from the same or other insurers) during
the Term directors’ and officers’ insurance from a reputable insurance company with such coverage amounts and policy
terms as is customary for public companies with market valuations similar to the Company, as determined by the Company’s
Board of Directors.

 

20. Withholding Obligations.
The Company, or any other entity making a payment, may withhold and make such deductions from any amounts payable under this Agreement
such federal, state and local taxes as may be required to be withheld or deducted from time to time pursuant to any applicable
law, governmental regulation and/or order.

 

21. Section 954 of the Dodd Frank
Act. This Agreement and all other compensation of Executive are intended to comply with the “clawback obligations”
of Section 954 of the Dodd Frank Act (including the related regulations, “Section 954”). If the Company’s
financial statements must be restated, to the extent and only to the extent required by Section 954 (if applicable), the Company
shall be entitled to recover from Executive, and Executive agrees to promptly repay, any incentive-based compensation which would
not have been earned under the restated financial statements.

 

22. Section 409A Compliance.
Unless otherwise expressly provided, any payment of compensation by the Company to the Executive, whether pursuant to this Agreement
or otherwise, shall be made no later than the fifteenth (15th) day of the third (3rd) month (i.e., 21⁄2 months) after the
later of the end of the calendar year or the Company’s fiscal year in which the Executive’s right to such payment vests
(i.e., is not subject to a “substantial risk of forfeiture” for purposes of Section 409A). Each payment and each installment
of any bonus or severance payments provided for under this Agreement shall be treated as a separate payment for purposes of application
of Section 409A. To the extent any amounts payable by the Company to the Executive constitute “nonqualified deferred compensation”
(within the meaning of Section 409A) such payments are intended to comply with the requirements of Section 409A, and shall be interpreted
in accordance therewith. Neither party individually or in combination may accelerate, offset or assign any such deferred payment,
except in compliance with Section 409A. No amount shall be paid prior to the earliest date on which it is permitted to be paid
under Section 409A and the Executive shall have no discretion with respect to the timing of payments except as permitted under
Section 409A. In the event that the Executive is determined to be a “key employee” (as defined and determined under
Section 409A) of the Company at a time when its stock is deemed to be publicly traded on an established securities market, payments
determined to be “nonqualified deferred compensation” payable upon separation from service shall be made no earlier
than (a) the first (1st) day of the seventh (7th) complete calendar month following such termination of employment, or (b) the
Executive’s death, consistent with the provisions of Section 409A. Any payment delayed by reason of the prior sentence shall
be paid out in a single lump sum at the end of such required delay period in order to catch up to the original payment schedule.
All expense reimbursement or in-kind benefits subject to Section 409A provided under this Agreement or, unless otherwise specified
in writing, under any Company program or policy, shall be subject to the following rules: (i) the amount of expenses eligible for
reimbursement or in-kind benefits provided during one calendar year may not affect the benefits provided during any other year;
(ii) reimbursements shall be paid no later than the end of the calendar year following the year in which the Executive incurs such
expenses, and the Executive shall take all actions necessary to claim all such reimbursements on a timely basis to permit the Company
to make all such reimbursement payments prior to the end of said period, (iii) the right to reimbursement or in-kind benefits shall
not be subject to liquidation or exchange for another benefit, and (iv) the expenses must be incurred, or in-kind benefits provided,
during the lifetime of the Executive, unless this Agreement or a Company program or policy provides a shorter period. The Executive
shall be responsible for the payment of all taxes applicable to payments or benefits received from the Company. It is the intent
of the Company that the provisions of this Agreement and all other plans and programs sponsored by the Company be interpreted to
comply in all respects with Section 409A; provided, however, the Company shall have no liability to the Executive, or any successor
or beneficiary thereof, in the event taxes, penalties or excise taxes may ultimately be determined to be applicable to any payment
or benefit received by the Executive or any successor or beneficiary thereof.

 

[signature page follows]

 

    	Page 9 of 10

    	 

    

 

IN WITNESS WHEREOF,
this Agreement has been executed by the Company and by the Executive as of the Effective Date.

 

 

	EMPLOYER
	 	 
	Digital Turbine, Inc., a Delaware corp.
	 	 
	 	 
	By:	/s/ Jeff Karish

	Its:	Chairman, Compensation Committee

 

 

	EXECUTIVE
	 
	 	 
	/s/ James Alejandro
	Name: James Alejandro

 

    	Page 10 of 10EX-4.1

 EXHIBIT 4.1 

THIS CONVERTIBLE PROMISSORY NOTE AND THE SECURITIES TO BE DELIVERED IN CONNECTION HEREWITH AND UPON CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAW. NO SALE, ASSIGNMENT, PLEDGE OR OTHER TRANSFER OF EITHER THIS CONVERTIBLE PROMISSORY NOTE OR ANY SUCH SECURITIES MAY BE MADE EXCEPT PURSUANT TO THE
PROVISIONS OF THE ACT AND APPLICABLE STATE SECURITIES LAWS OR UNLESS AN OPINION OF COUNSEL, SATISFACTORY TO MAKER, IS OBTAINED STATING THAT SUCH SALE, ASSIGNMENT, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH AN AVAILABLE EXEMPTION UNDER THE ACT AND
APPLICABLE STATE SECURITIES LAWS. 
 CONVERTIBLE PROMISSORY NOTE 

 

			
	$1,500,000.00	  	February 6, 2015

 FOR VALUE RECEIVED, CYTODYN INC., a Colorado corporation (“Maker”), hereby promises to pay to ALPHA
VENTURE CAPITAL PARTNERS, L.P. (“Holder”), the aggregate principal amount of One Million Five Hundred Thousand and 00/100 Dollars ($1,500,000.00), together with interest thereon at a fixed simple interest rate of one point two percent
(1.2%) per month. 
 Principal outstanding under this Convertible Promissory Note (this “Note”) shall be due and payable in
cash in a single payment on May 5, 2015 (the “Due Date”), and interest shall accrue monthly and be payable in cash on the Due Date, except to the extent that this Note has previously been converted into shares (“Shares”) of
Maker’s common stock (the “Common Stock”) as set forth below. Maker shall have a one-time option, exercisable upon written notice to Holder no less than 30 days prior to the Due Date, to extend such Due Date until August 5, 2015.
In such case, interest shall be payable in cash monthly in arrears beginning on May 5, 2015, and continuing on each of June 5, 2015, July 6, 2015, and August 5, 2015, in each case except to the extent that this Note has
previously been converted into Shares of Common Stock as set forth below. On the Due Date, Holder may, at its sole discretion, accept payment in full in cash from the Maker or else convert this Note, in whole or in part, and purchase additional
notes under the terms described in the Subscription and Investor Rights Agreement of even date herewith (the “Subscription Agreement”). If Holder elects to convert in lieu of accepting cash payment hereunder, Holder shall be entitled to an
additional 15% warrant award at the date of conversion pursuant to the terms set forth in Section 7.1 of the Subscription Agreement. 

In connection with this Note, Holder is entitled, at no additional cost to Holder, to a warrant to purchase 75,000 Shares (the
“Warrants,” and together with Shares issuable upon exercise of the Warrants or conversion of this Note, collectively, the “Securities”) at an exercise price of $0.50 per Share, in substantially the form attached hereto as
Exhibit A. The Warrants are exercisable at the option of the Holder at any time after February 6, 2015, but not later than February 28, 2020. 

On or about September 26, 2014, Maker executed a Convertible Promissory Note (the “2014 Note”) in favor of Holder evidencing
Subscriber’s investment of $2 million in the Company (the “Original Investment”). The 2014 Note remains in full force and effect in accordance with the terms thereof. 

 All or any portion of principal and any related accrued but unpaid interest hereunder may be
converted (each, a “Conversion”) at any time by Holder into a number of Shares determined by dividing the converted principal amount and related accrued but unpaid interest by the conversion price of $1.00 per Share (the “Conversion
Price”), with the resulting number of Shares to be issued, rounded down to the nearest whole Share, being referred to as the “Conversion Share Number.” 

No Conversion hereunder shall be effective unless written notice of the Conversion is given by Holder at least five (5) days prior to
such Conversion, in substantially the form attached hereto as Exhibit B; provided, however, that a conversion by Holder pursuant to Section 7.1 of the Subscription Agreement may be effectuated at least three (3) days
prior to such conversion. Notwithstanding any conversion hereunder (or any prepayment by Maker) prior to the Due Date, Maker hereby acknowledges and agrees that it shall pay a minimum of three (3) months’ interest on the original principal
amount hereof. 
 The Conversion Price will be subject to adjustment from time to time as provided in clauses (a) through
(g) below: 
 (a) The following definitions shall apply to these adjustment provisions: 

“Option” shall mean rights, options or warrants to subscribe for, purchase or otherwise acquire Common Stock or Convertible
Securities. 
 “Convertible Securities” shall mean any promissory notes, other evidences of indebtedness, shares or other
securities directly or indirectly convertible into or exchangeable for Common Stock, but excluding Options. 
 “Additional Shares
of Common Stock” shall mean any shares of Common Stock issued (or, as provided in clause (d) below, deemed to be issued) by Maker after January 15, 2015, other than (1) the following shares of Common Stock and (2) shares
of Common Stock deemed issued pursuant to the following Options and Convertible Securities (clauses (1) and (2), collectively, “Exempt Securities”): 

(i) securities issued upon the conversion of any Options or Convertible Securities outstanding on January 15, 2015 or
upon conversion of this Note; 
 (ii) shares of Common Stock, Options or Convertible Securities issued by reason of a
dividend, stock split, split-up or other distribution on shares of Common Stock as described in clause (b) below; 

(iii) shares of Common Stock or Options issued to employees or directors of, or consultants or advisors to, Maker for services
to Maker pursuant to a plan, agreement or arrangement approved by Maker’s Board of Directors; 

  
 - 2 - 

 (iv) shares of Common Stock or Convertible Securities actually issued upon the
exercise of Options or shares of Common Stock actually issued upon the conversion or exchange of Convertible Securities, in each case provided such issuance is pursuant to the terms of such Option or Convertible Security; 

(v) replacement Options issued in exchange for Options outstanding on January 15, 2015, if any; and 

(vi) shares of Common Stock, Options or Convertible Securities issued pursuant to the acquisition by Maker of another business
by merger, purchase of substantially all of the assets thereof, or other similar reorganization, but only if such issuances are approved by Maker’s Board of Directors. 

(b) If Maker at any time subdivides (by any stock split, stock dividend, recapitalization or otherwise) its Common Stock into a greater number
of shares or pays a dividend or makes a distribution to holders of the Common Stock in the form of shares of Common Stock, the Conversion Price in effect for the Common Stock immediately prior to such subdivision shall be proportionately reduced. If
Maker at any time combines (by reverse stock split or otherwise) the Common Stock into a smaller number of shares, the Conversion Price in effect for the Common Stock immediately prior to such combination shall be proportionately increased. 

(c) Prior to the consummation of any other recapitalization, reorganization, or reclassification of the Common Stock (each, an “Organic
Change”), but not a merger or consolidation transaction to which Maker is a party, Maker shall make appropriate provision to ensure that Holder shall thereafter have the right to acquire and receive upon Conversion of this Note the number of
shares of stock or other securities or property of the Maker or otherwise, to which Holder would be entitled on such Organic Change if Holder were the holder of the number of Shares into which this Note was convertible on the effective date of the
Organic Change. In any such case, appropriate adjustment shall be made in the application of these adjustment provisions with respect to the rights of Holder after the Organic Change to the end that these adjustment provisions will be applicable
after the Organic Change to achieve the intent of these adjustment provisions, so as to protect Holder’s Conversion rights. 
 (d)
(i) If Maker, at any time or from time to time after January 15, 2015, shall issue any Options or Convertible Securities (excluding Options or Convertible Securities which are themselves Exempt Securities) or shall fix a record date for
the determination of holders of any class of securities entitled to receive any such Options or Convertible Securities, then the maximum number of shares of Common Stock (as set forth in the instrument relating thereto, assuming the satisfaction of
any conditions to exercisability, convertibility or exchangeability but without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or, in the case of Convertible
Securities and Options therefor, the conversion or exchange of such Convertible Securities, shall be deemed to be Additional Shares of Common Stock issued as of the time of such issue or, in case such a record date shall have been fixed, as of the
close of business on such record date. 

  
 - 3 - 

 (ii) If the terms of any Option or Convertible Security, the issuance of which resulted in an
adjustment to the Conversion Price pursuant to the terms of clause (e) below, are revised as a result of an amendment to such terms or any other adjustment pursuant to the provisions of such Option or Convertible Security (but excluding
automatic adjustments to such terms pursuant to anti-dilution or similar provisions of such Option or Convertible Security) to provide for either (1) any increase or decrease in the number of shares of Common Stock issuable upon the exercise,
conversion and/or exchange of any such Option or Convertible Security or (2) any increase or decrease in the consideration payable to Maker upon such exercise, conversion and/or exchange, then, effective upon such increase or decrease becoming
effective, the Conversion Price computed upon the original issue of such Option or Convertible Security (or upon the occurrence of a record date with respect thereto) shall be readjusted to such Conversion Price as would have resulted had such
revised terms been in effect upon the original date of issuance of such Option or Convertible Security. 
 (iii) If the terms of any Option
or Convertible Security (excluding Options or Convertible Securities which are themselves Exempt Securities), the issuance of which did not result in an adjustment to the Conversion Price pursuant to the terms of clause (e) below (either
because the consideration per share of the Additional Shares of Common Stock subject thereto was equal to or greater than the Conversion Price then in effect, or because such Option or Convertible Security was issued before January 15, 2015),
are revised after January 15, 2015, as a result of an amendment to such terms or any other adjustment pursuant to the provisions of such Option or Convertible Security (but excluding automatic adjustments to such terms pursuant to anti-dilution
or similar provisions of such Option or Convertible Security) to provide for either (1) any increase in the number of shares of Common Stock issuable upon the exercise, conversion or exchange of any such Option or Convertible Security or
(2) any decrease in the consideration payable to Maker upon such exercise, conversion or exchange, then such Option or Convertible Security, as so amended or adjusted, and the Additional Shares of Common Stock subject thereto, shall be deemed
to have been issued effective upon such increase or decrease becoming effective. 
 (e) In the event Maker shall, at any time after
January 15, 2015, issue (or be deemed to issue) Additional Shares of Common Stock for a consideration per share (calculated as provided in this clause (e) and in clause (f) below) that is less than (X) initially, $.944 per share
(subject to adjustment as provided in clause (b) above), and (Y) following the first adjustment pursuant to this clause (e), the Conversion Price in effect immediately prior to such issuance (such consideration per share is hereafter
referred to as the “Lower Price”), the Conversion Price then in effect shall be reduced to 90% of the Lower Price (calculated to the nearest cent), provided that the consideration per share shall be calculated as the weighted
average price of all Additional Shares of Common Stock issued or deemed to be issued in a single transaction. The consideration per share received by Maker for Additional Shares of Common Stock deemed to have been issued pursuant to clause
(d) above shall be determined by dividing (i) the total amount, if any, received or receivable by Maker as consideration for the issuance of such Options or Convertible Securities, plus the minimum aggregate amount of additional
consideration payable to Maker upon the exercise of such Options or the conversion or exchange of such Convertible Securities, by (ii) the maximum number of shares of Common Stock issuable upon the exercise of such Options or the conversion or
exchange of such Convertible Securities. By way of illustration, the sale of a total of 100,000 shares of Common Stock for $87,500, together with warrants to purchase 25,000 shares of Common Stock 

  
 - 4 - 

 
at an exercise price of $0.50 per share, would yield a Lower Price of $0.80, such that the Conversion Price would be adjusted to $0.72, with the Lower Price calculated as follows: ($87,500
purchase price for the Common Stock, plus $0 received by Maker as consideration for the issuance of Options, plus $12,500 aggregate amount of additional consideration payable to Maker upon exercise of such Options)/125,000 shares = $0.80 per share.

 (f) The consideration received by Maker for the issue of any Additional Shares of Common Stock shall (i) include all cash received
(less amounts paid or payable for accrued interest); and (ii) the fair market value of all property (as determined in good faith by Maker’s Board of Directors); and (iii) in the event Additional Shares of Common Stock are issued
together with other shares or securities or other assets of Maker for consideration which covers both, be the proportion of such consideration so received, as determined in good faith by Maker’s Board of Directors. 

(g) Whenever an event occurs requiring any adjustment to be made in the Conversion Price pursuant to these adjustment provisions, Maker will
promptly give Holder notice specifying the adjustment and the basis for it. 
 Maker shall not issue any fractional Shares upon Conversion
by Holder of any principal and related accrued but unpaid interest hereunder. With respect to any fraction of a Share resulting from such Conversion, Maker shall issue to Holder a number of Shares rounded down to the nearest whole Share. 

If Maker sells all or substantially all of its assets to a third party, merges or consolidates with another entity, or engages in any other
transaction with a third party requiring approval of the shareholders of Maker, Maker shall give prompt notice to the Holder, and Holder may immediately convert the principal amount of this Note into Shares at any time prior to the consummation of
such transaction. 
 Maker will not create, incur, assume or permit to exist, or allow any of its subsidiaries to create, incur, assume or
permit to exist, any indebtedness or liabilities resulting from borrowings, loans or advances, whether secured or unsecured, matured or unmatured, liquidated or unliquidated, joint or several, except (a) the liabilities of Maker pursuant to the
2014 Note executed pursuant to the Original Investment and outstanding at the date hereof, including accrued interest thereon from time to time and any extension of the maturity thereof, (b) convertible promissory notes issued to affiliates of
Holder or clients of one or more affiliates of Holder, (c) purchase money indebtedness (including capitalized leases) for the acquisition of assets, provided that total new purchase money indebtedness does not exceed $25,000 in any fiscal year
without the prior written consent of Holder, or (d) indebtedness or liabilities that are expressly made subordinate and subject in right of payment to the prior payment in cash in full of the principal and unpaid accrued interest on this Note,
provided that, so long as no event of default has occurred as specified below, Maker may make payments of accrued interest as required under the terms of any such indebtedness or liabilities, except to the extent such right of payment may be limited
by bankruptcy, insolvency, reorganization, fraudulent transfer, civil forfeiture, moratorium or similar laws relating to or limiting the rights of creditors generally, or by equitable principles (regardless of whether such enforcement is considered
in a proceeding in equity or at law). 

  
 - 5 - 

 The occurrence of any of the following shall constitute an event of default hereunder:
(i) default in the payment of the principal of or interest on (A) the 2014 Note when the same becomes due and payable, or (B) this Note when the same becomes due and payable; (ii) Maker’s failure to observe or perform any
covenant, obligation, condition or agreement contained in (A) any document executed in connection with the Original Investment, or (B) this Note, the agreement evidencing the Warrants, or in the Subscription Agreement, each dated
February 6, 2015, which failure shall continue for ten (10) days; (iii) Maker (a) applies for or consents to the appointment of a receiver, trustee, liquidator or custodian for itself or of all or a substantial part of its
property, (b) admits in writing its inability to pay its debts generally as they become due, (c) makes a general assignment for the benefit of its creditors, (d) is dissolved or liquidated in full or in part, (e) commences a
voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts pursuant to any bankruptcy, insolvency or other similar law now or hereafter in effect or consents to any such relief or to
the appointment of or taking possession of its property by any official in such a proceeding, or (f) takes any action for the purpose of effecting any of the foregoing; or (iv) proceedings for the appointment of a receiver, trustee,
liquidator or custodian of Maker or of all or a substantial part of the property thereof, or an involuntary case or other proceedings seeking liquidation, reorganization or other relief with respect to Maker or the debts thereof pursuant to any
bankruptcy, insolvency or other similar law now or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not be dismissed or discharged within thirty (30) days of commencement. 

Upon the occurrence of an event of default, or at any time thereafter during the continuance of any such event, the Holder may, with or
without notice to the Maker, declare this Note to be forthwith due and payable, whereupon this Note and the indebtedness evidenced hereby shall forthwith be due and payable, both as to principal and interest, without presentment, demand, protest, or
other notice of any kind, all of which are hereby expressly waived, anything contained herein or in any other instrument executed in connection with or securing this Note to the contrary notwithstanding. If the Due Date of this Note is accelerated
as provided above, the Holder may convert the principal portion of this Note into Shares at any time prior to the payment of such principal amount. 

If this Note or any interest hereon becomes due and payable on Saturday, Sunday or other day on which commercial banks are authorized or
permitted to close under the laws of the State of Florida, the maturity of this Note shall be extended to the next succeeding business day. 

Maker may elect to prepay, on or before the Due Date, all or any portion of the outstanding principal balance under this Note, together with
accrued but unpaid interest, by wire transfer or other cash equivalent acceptable to Maker; provided, however, for any such prepayment, Maker must first give Holder at least ten (10) days’ prior notice of such prepayment and, during such
time, Holder may elect in writing to effect a Conversion of all or a portion of such principal balance, together with any accrued but unpaid interest so desired to be prepaid by Maker, into Shares as provided herein. 

  
 - 6 - 

 If the payment of principal or interest or both is more than five (5) days late, any unpaid
balance on this Note, including accrued but unpaid interest, shall thereafter accrue interest at the default rate of fifteen percent (15%) per annum until paid in full. 

Payments shall be credited first to accrued interest then due and payable and the remainder applied to principal. 

This Note and the Securities to be issued in connection herewith and upon Conversion hereof may not be offered, sold or otherwise disposed of
except under circumstances which will not result in a violation of the Securities Act of 1933, as amended (the “Securities Act”). Upon Conversion of this Note, the Holder hereof will be required to confirm in writing, by executing the form
attached as Schedule 1 to Exhibit B hereto, that the Shares so purchased are being acquired for investment and not with a view toward distribution or resale. This Note and all Shares issued upon Conversion hereof or upon the exercise of the
Warrants (unless registered under the Securities Act) shall be stamped or imprinted with a legend in substantially the following form: 

“THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED, OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR
(2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS AND, IN THE CASE OF A TRANSACTION EXEMPT FROM
REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR SUCH OTHER APPLICABLE LAWS.” 

With respect to any offer, sale or other disposition of this Note or any Securities to be issued in connection herewith prior to registration
of such Note or Securities, the Holder hereof and each subsequent Holder of this Note will be required to give written notice to the Maker prior thereto, describing briefly the manner thereof, together with a written opinion of such Holder’s
counsel reasonably acceptable to the Maker’s counsel, if such opinion is reasonably requested by the Maker, to the effect that such offer, sale or other disposition may be effected without registration or qualification (under the Securities Act
as then in effect or any federal or state law then in effect) of this Note or such Securities and indicating whether or not under the Securities Act this Note or certificates for such Securities to be sold or otherwise disposed of require any
restrictive legend as to applicable restrictions on transferability in order to ensure compliance with applicable law. Promptly upon receiving such written notice and reasonably satisfactory opinion, if so requested, the Maker, as promptly as
practicable, shall notify such Holder that such Holder may sell or 

  
 - 7 - 

 
otherwise dispose of this Note or such Securities, all in accordance with the terms of the notice delivered to the Maker. If a determination has been made pursuant to this paragraph that the
opinion of counsel for the Holder is not reasonably satisfactory to the Maker, the Maker shall so notify the Holder promptly after such determination has been made and neither this Note nor any Securities shall be sold or otherwise disposed of until
such disagreement has been resolved. The foregoing notwithstanding, this Note or such Securities may as to such federal laws, be offered, sold or otherwise disposed of in accordance with Rule 144 under the Securities Act, provided that the Maker
shall have been furnished with such information as the Maker may reasonably request to provide a reasonable assurance that the provisions of Rule 144 have been satisfied. This Note and each certificate representing the Securities thus transferred
(except a transfer pursuant to Rule 144) shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance with such laws, unless in the aforesaid opinion of counsel for the Holder, reasonably acceptable to the
Maker, such legend is not required in order to ensure compliance with such laws. The Maker may issue stop transfer instructions to its transfer agent or, if acting as its own transfer agent, the Maker may stop transfer on its corporate books, in
connection with such restrictions. 
 Any provision of this Note that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 

This Note is not transferable or assignable by the Maker without the consent of the Holder. Prior to the Due Date, this Note may not be
transferred or assigned by the Holder without the consent of the Maker. If this Note is collected by law or through an attorney at law, or under advice therefrom, the Maker agrees to pay all costs of collection, including reasonable attorneys’
fees. Reasonable attorneys’ fees are defined to include, but not be limited to, all fees incurred in all matters of collection and enforcement, trial proceedings and appeals, as well as appearances in and connected with any bankruptcy
proceedings or creditors’ reorganization or similar proceedings and any post judgment collection efforts. 
 Any failure to exercise
any right, remedy or recourse hereunder shall not be deemed to be a waiver or release of the same, such waiver or release to be effected only through a written document executed by the Holder and then only to the extent specifically recited therein.
A waiver or release with reference to any one event shall not be construed as continuing, as a bar to, or as a waiver or release of any subsequent right, remedy or recourse as to a subsequent event. 

In no event shall the amount of interest due or payments in the nature of interest payable hereunder exceed the maximum rate of interest
allowed by applicable law, as amended from time to time, and in the event any such payment is paid by the Maker or received by the Holder, then such excess sum shall be credited as a payment of principal, unless the Maker shall notify the Holder, in
writing, that the Maker elects to have such excess sum returned to the Maker forthwith. 
 The Maker hereby waives all and every exemption
secured to it by the laws and constitution of the State of Florida, and of any other state. The Maker hereby waives demand, presentment, protest, notice of nonpayment or dishonor, and any other notice required by law and agrees that its obligation
hereunder shall not be affected by any renewal or extension of the time of payment hereof, or by any indulgences. 

  
 - 8 - 

 This Note shall be governed by and construed in accordance with the laws of the State of Florida
applicable to debts and obligations incurred and to be paid solely in such jurisdiction. This Note may not be modified or amended and no provision hereof may be waived except by a written instrument executed by the parties to be bound thereby. 

 

			
	CYTODYN INC.
		
	By:		 /s/ Nader Pourhassan

			Nader Pourhassan
			President and Chief Executive Officer

  
 - 9 - 

 EXHIBIT A 

FORM OF WARRANT 
 Warrant
Number A-2 
 THE WARRANT REPRESENTED BY THIS CERTIFICATE AND THE SHARES ISSUABLE UPON EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR QUALIFIED UNDER ANY APPLICABLE STATE SECURITIES LAW (“APPLICABLE STATE SECURITIES LAW”). THIS WARRANT HAS BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR FOR SALE IN
CONNECTION WITH, ANY DISTRIBUTION THEREOF WITHIN THE MEANING OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAW. THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE THEREOF MAY NOT BE PLEDGED, SOLD, ASSIGNED OR TRANSFERRED UNLESS A
REGISTRATION STATEMENT WITH RESPECT THERETO UNDER THE SECURITIES ACT IS EFFECTIVE, AND ANY APPLICABLE STATE SECURITIES LAW REQUIREMENTS HAVE BEEN MET OR EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT AND THE REGISTRATION OR
QUALIFICATION REQUIREMENTS OF APPLICABLE STATE SECURITIES LAW ARE AVAILABLE. NO TRANSFER OF ANY INTEREST IN THIS WARRANT OR THE SECURITIES PURCHASABLE UPON EXERCISE MAY BE EFFECTED WITHOUT FIRST SURRENDERING THIS WARRANT OR SUCH SECURITIES, AS THE
CASE MAY BE, TO THE COMPANY OR ITS TRANSFER AGENT, IF ANY. 
 Warrant to Purchase 

Shares of 
 Common Stock 

As Herein Described 

February 6, 2015 
 WARRANT
TO PURCHASE COMMON STOCK OF 
 CYTODYN INC. 

This is to certify that, for value received, ALPHA VENTURE CAPITAL PARTNERS, L.P., or a proper assignee (the “Holder”), is entitled
to purchase up to a total of 75,000 shares (“Warrant Shares”) of common stock, no par value per share (the “Common Stock”), of CytoDyn Inc., a Colorado corporation (the “Company”), subject to the provisions of this
Warrant Number A-2, from the Company. This Warrant shall be exercisable at Fifty Cents ($0.50) per share (the “Exercise Price”). This Warrant also is subject to the following terms and conditions: 

  
 -A-1- 

 1. Exercise and Payment; Exchange. 

1.1 Exercise of Warrant. This Warrant may be exercised in whole or in part at any time from and after the date hereof (the
“Commencement Date”) through 5:00 p.m., Pacific time, on February 28, 2020 (the “Expiration Date”), at which time this Warrant shall expire and become void, but if such date is a day on which federal or state chartered
banking institutions located in the State of Florida are authorized to close, then on the next succeeding day which shall not be such a day. Unless the Holder elects to exercise the Warrant by having the Company withhold shares of Common Stock in
lieu of paying the Exercise Price in cash (a “Cashless Exercise”), exercise shall be by presentation and surrender to the Company, or at the office of any transfer agent designated by the Company (the “Transfer Agent”), of
(i) this Warrant, (ii) the attached exercise form properly executed, and (iii) a certified or official bank check for the Exercise Price for the number of Warrant Shares specified in the exercise form. If the Holder has elected a
Cashless Exercise, the Holder shall surrender in payment of the Exercise Price, shares of Common Stock equal in value to the Exercise Price by surrender of this Warrant at the principal office of the Company together with notice of such election, in
which event the Company shall issue to the Holder a number of shares of Common Stock computed using the following formula: 
  

									
							 X =
  
		Y (A – B)
								 A

				
	 Where:
		X =				The number of shares of Common Stock to be issued to the Holder pursuant to the Cashless Exercise
				
			Y =				The number of shares of Common Stock in respect of which the Cashless Exercise election is made
				
			A =				The fair market value of one share of Common Stock at the time the Cashless Exercise election is made
				
			B =				The Exercise Price (as adjusted to the date of the Cashless Exercise)

 For purposes of this Section 1.1, the fair market value of one share of Common Stock as of a particular date shall be
determined as provided in Section 3 below. 
 If this Warrant is exercised in part only, the Transfer Agent shall, upon surrender of the Warrant,
execute and deliver a new Warrant evidencing the rights of the Holder to purchase the remaining number of Warrant Shares purchasable hereunder. Upon receipt by the Company of this Warrant and the exercise form properly completed, accompanied by
payment as aforesaid, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such exercise, notwithstanding that the stock transfer books of the Company shall then be closed or that certificates representing such
Warrant Shares shall not then be actually delivered to the Holder; the Company shall deliver certificates representing the Warrant Shares to the Holder as promptly as practicable after receipt of all required documents and payment. 

1.2 Conditions to Exercise or Exchange. The restrictions in Section 7 shall apply, to the extent applicable by their terms, to any
exercise or exchange of this Warrant permitted by this Section 1. 

  
 -A-2- 

 2. Reservation of Shares. The Company shall, at all times until the expiration of this
Warrant, reserve for issuance and delivery upon exercise of this Warrant the number of Warrant Shares which shall be required for issuance and delivery upon exercise of this Warrant. 

3. Fractional Interests. The Company shall not issue any fractional shares or scrip representing fractional shares upon the exercise or
exchange of this Warrant. With respect to any fraction of a share resulting from the exercise or exchange hereof, the Company shall pay to the Holder an amount in cash equal to such fraction multiplied by the current fair market value per share of
Common Stock, determined as follows: 
 3.1 If the Common Stock is listed on a national securities exchange or admitted to unlisted trading
privileges on such an exchange, the current fair market value shall be the last reported sale price of the Common Stock on such exchange on the last business day prior to the date of exercise of this Warrant or if no such sale is made on such day,
the mean of the closing bid and asked prices for such day on such exchange; 
 3.2 If the Common Stock is not so listed or admitted to
unlisted trading privileges or quoted on a national securities exchange, the current fair market value shall be the mean of the last bid and asked prices reported on the last business day prior to the date of the exercise of this Warrant by the OTC
Markets Group, Inc.; or 
 3.3 If the Common Stock is not so listed or admitted to unlisted trading privileges and bid and asked prices are
not so reported, the current fair market value shall be an amount, not less than book value, determined in such reasonable manner as may be prescribed by the Company in good faith. 

4. No Rights as Shareholder. This Warrant shall not entitle the Holder to any rights as a shareholder of the Company, either at law or
in equity. The rights of the Holder are limited to those expressed in this Warrant and are not enforceable against the Company except to the extent set forth herein. 

5. Adjustments in Number and Exercise Price of Warrant Shares. 

5.1 The number of shares of Common Stock for which this Warrant may be exercised and the Exercise Price therefor shall be subject to
adjustment as follows: 
 (a) If the Company is recapitalized through the subdivision or combination of its outstanding shares of Common
Stock into a larger or smaller number of shares, the number of shares of Common Stock for which this Warrant may be exercised shall be increased or reduced, as of the record date for such recapitalization, in the same proportion as the increase or
decrease in the outstanding shares of Common Stock, and the Exercise Price shall be adjusted so that the aggregate amount payable for the purchase of all of the Warrant Shares issuable hereunder immediately after the record date for such
recapitalization shall equal the aggregate amount so payable immediately before such record date. 
 (b) If the Company declares a dividend
on Common Stock payable in Common Stock or securities convertible into Common Stock, the number of shares of Common Stock for which this Warrant may be exercised shall be increased as of the record date for determining which holders of Common Stock
shall be entitled to receive such dividend, in 

  
 -A-3- 

 
proportion to the increase in the number of outstanding shares (and shares of Common Stock issuable upon conversion of all such securities convertible into Common Stock) of Common Stock as a
result of such dividend, and the Exercise Price shall be adjusted so that the aggregate amount payable for the purchase of all the Warrant Shares issuable hereunder immediately after the record date for such dividend shall equal the aggregate amount
so payable immediately before such record date. 
 (c) If the Company distributes to holders of its Common Stock, other than as part of its
dissolution or liquidation or the winding up of its affairs, any shares of its Common Stock, any evidence of indebtedness or any of its assets (other than cash, Common Stock or securities convertible into Common Stock), the Company shall give
written notice to the Holder of any such distribution at least fifteen (15) days prior to the proposed record date in order to permit the Holder to exercise this Warrant on or before the record date. There shall be no adjustment in the number
of shares of Common Stock for which this Warrant may be exercised, or in the Exercise Price, by virtue of any such distribution. 
 (d) If
the Company offers rights or warrants generally to the holders of Common Stock which entitle them to subscribe to or purchase additional Common Stock or securities convertible into Common Stock, the Company shall give written notice of any such
proposed offering to the Holder at least fifteen (15) days prior to the proposed record date in order to permit the Holder to exercise this Warrant on or before such record date. There shall be no adjustment in the number of shares of Common
Stock for which this Warrant may be exercised, or in the Exercise Price, by virtue of any such distribution. 
 (e) If the event, as a
result of which an adjustment is made under paragraph (a) or (b) above, does not occur, then any adjustments in the Exercise Price or number of shares issuable that were made in accordance with such paragraph (a) or (b) shall be
adjusted to the Exercise Price and number of shares as were in effect immediately prior to the record date for such event. 
 5.2 In the
event of any reorganization or reclassification of the outstanding shares of Common Stock (other than a change in par value or from no par value to par value, or from par value to no par value, or as a result of a subdivision or combination) or in
the event of any consolidation or merger of the Company with another entity after which the Company is not the surviving entity, at any time prior to the expiration of this Warrant, upon subsequent exercise of this Warrant the Holder shall have the
right to receive the same kind and number of shares of common stock and other securities, cash or other property as would have been distributed to the Holder upon such reorganization, reclassification, consolidation or merger had the Holder
exercised this Warrant immediately prior to such reorganization, reclassification, consolidation or merger, appropriately adjusted for any subsequent event described in this Section 5. The Holder shall pay upon such exercise the Exercise Price
that otherwise would have been payable pursuant to the terms of this Warrant. If any such reorganization, reclassification, consolidation or merger results in a cash distribution in excess of the then applicable Exercise Price, the holder may, at
the Holder’s option, exercise this Warrant without making payment of the Exercise Price, and in such case the Company shall, upon distribution to the Holder, consider the Exercise Price to have been paid in full, and in making settlement to the
Holder, shall deduct an amount equal to the Exercise Price from the amount payable to the Holder. In the event of any such reorganization, merger or consolidation, the corporation formed by such consolidation or merger or the corporation which shall
have acquired the assets of the Company shall execute and deliver 

  
 -A-4- 

 
a supplement hereto to the foregoing effect, which supplement shall also provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided in this
Warrant. 
 5.3 If the Company shall, at any time before the expiration of this Warrant, dissolve, liquidate or wind up its affairs, the
Holder shall have the right to receive upon exercise of this Warrant, in lieu of the shares of Common Stock of the Company that the Holder otherwise would have been entitled to receive, the same kind and amount of assets as would have been issued,
distributed or paid to the Holder upon any such dissolution, liquidation or winding up with respect to such Common Stock receivable upon exercise of this Warrant on the date for determining those entitled to receive any such distribution. If any
such dissolution, liquidation or winding up results in any cash distribution in excess of the Exercise Price provided by this Warrant, the Holder may, at the Holder’s option, exercise this Warrant without making payment of the Exercise Price
and, in such case, the Company shall, upon distribution to the Holder, consider the Exercise Price to have been paid in full and, in making settlement to the Holder, shall deduct an amount equal to the Exercise Price from the amount payable to the
Holder. 
 6. Notices to Holder. So long as this Warrant shall be outstanding (a) if the Company shall pay any dividends or make
any distribution upon the Common Stock otherwise than in cash or (b) if the Company shall offer generally to the holders of Common Stock the right to subscribe to or purchase any shares of any class of Common Stock or securities convertible
into Common Stock or any similar rights or (c) if there shall be any capital reorganization of the Company in which the Company is not the surviving entity, recapitalization of the capital stock of the Company, consolidation or merger of the
Company with or into another corporation, sale, lease or other transfer of all or substantially all of the property and assets of the Company, or voluntary or involuntary dissolution, liquidation or winding up of the Company, then in such event, the
Company shall cause to be mailed to the Holder, at least thirty (30) days prior to the relevant date described below (or such shorter period as is reasonably possible if thirty (30) days is not reasonably possible), a notice containing a
description of the proposed action and stating the date or expected date on which a record of the Company’s shareholders is to be taken for the purpose of any such dividend, distribution of rights, or such reclassification, reorganization,
consolidation, merger, conveyance, lease or transfer, dissolution, liquidation or winding up is to take place and the date or expected date, if any is to be fixed, as of which the holders of Common Stock of record shall be entitled to exchange their
shares of Common Stock for securities or other property deliverable upon such event. 
 7. Transfer, Exercise, Exchange, Assignment or
Loss of Warrant, Warrant Shares or Other Securities. 
 7.1 This Warrant may be transferred, exercised, exchanged or assigned
(“transferred”), in whole or in part, subject to the following restrictions. This Warrant and the Warrant Shares or any other securities (“Other Securities”) received upon exercise of this Warrant shall be subject to restrictions
on transferability until registered under the Securities Act of 1933, as amended (the “Securities Act”), unless an exemption from registration is available. Until this Warrant and the Warrant Shares or Other Securities are so registered,
this Warrant and any certificate for Warrant Shares or Other Securities issued or issuable upon exercise of this Warrant shall contain a legend on the face thereof, in form and substance satisfactory to counsel for the Company, stating that this
Warrant and the Warrant Shares or Other Securities may not be sold, transferred or otherwise disposed of unless, in the opinion of counsel satisfactory to the 

  
 -A-5- 

 
Company, which may be counsel to the Company, this Warrant, the Warrant Shares or Other Securities may be transferred without such registration. This Warrant and the Warrant Shares or Other
Securities may also be subject to restrictions on transferability under applicable state securities or blue sky laws. 
 7.2 Until this
Warrant, the Warrant Shares or Other Securities are registered under the Securities Act, the Company may require, as a condition of transfer of this Warrant, the Warrant Shares, or Other Securities, that the transferee (who may be the Holder in the
case of an exercise or exchange) represent that the securities being transferred are being acquired for investment purposes and for the transferee’s own account and not with a view to or for sale in connection with any distribution of the
security. 
 7.3 Any transfer permitted hereunder shall be made by surrender of this Warrant to the Company or to the Transfer Agent at its
offices with a duly executed request to transfer the Warrant, which shall provide adequate information to effect such transfer and shall be accompanied by funds sufficient to pay any transfer taxes applicable. Upon satisfaction of all transfer
conditions, the Company or Transfer Agent shall, without charge, execute and deliver a new Warrant in the name of the transferee named in such transfer request, and this Warrant promptly shall be cancelled. 

7.4 Upon receipt by the Company of evidence satisfactory to it of loss, theft, destruction or mutilation of this Warrant and, in the case of
loss, theft or destruction, of reasonable satisfactory indemnification, or, in the case of mutilation, upon surrender of this Warrant, the Company will execute and deliver, or instruct the Transfer Agent to execute and deliver, a new Warrant of like
tenor and date, and any such lost, stolen or destroyed Warrant thereupon shall become void. 
 8. Representations and Warranties
of the Holder. The Holder hereby represents and warrants to the Company with respect to the issuance of the Warrant as follows: 

8.1 Experience. The Holder has substantial experience in evaluating and investing in securities in companies similar to the Company so
that such Holder is capable of evaluating the merits and risks of such Holder’s investment in the Company and has the capacity to protect such Holder’s own interests. 

8.2 Investment. The Holder is acquiring this Warrant (and the Warrant Shares issuable upon exercise of this Warrant) for investment for
such Holder’s own account, not as a nominee or agent, and not with the view to, or for resale in connection with, any distribution thereof. The Holder understands that this Warrant (and the Warrant Shares issuable upon exercise of the Warrant)
have not been, and will not be, registered under the Securities Act by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and
the accuracy of such Holder’s representations as expressed herein. 
 8.3 Held Indefinitely. The Holder acknowledges that this
Warrant (and the Warrant Shares issuable upon exercise of this Warrant) must be held indefinitely unless subsequently registered under the Securities Act or an exemption from such registration is available. 

  
 -A-6- 

 8.4 Accredited Holder. The Holder is an “accredited investor” within the meaning
of Rule 501 of Regulation D under the Securities Act. 
 8.5 Legends. The Holder understands and acknowledges that the certificate(s)
evidencing the securities issued by the Company will be imprinted with a restrictive legend as referenced in Section 7.1 above. 
 8.6
Access to Data. The Holder has had an opportunity to discuss the Company’s business, management, and financial affairs with the Company’s management and the opportunity to review the Company’s facilities and business plans. The
Holder has also had an opportunity to ask questions of officers of the Company, which questions were answered to its satisfaction. 
 8.7
Authorization. This Warrant and the agreements contemplated hereby, when executed and delivered by the Holder, will constitute a valid and legally binding obligation of the Holder, enforceable in accordance with their respective terms. 

8.8 Brokers or Finders. The Company has not incurred, and will not incur, directly or indirectly, as a result of any action taken by
such Holder, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with this Warrant or any transaction contemplated hereby. 

9. Notices. All notices, requests, demands or other communications hereunder shall be in writing and shall be deemed to have been duly
given, if delivered in person or mailed, certified, return-receipt requested, postage prepaid to the address set forth on the signature page below. Any party hereto may from time to time, by written notice to the other parties, designate a different
address, which shall be substituted for the one specified below for such party. If any notice or other document is sent by certified or registered mail, return receipt requested, postage prepaid, properly addressed as aforementioned, the same shall
be deemed served or delivered seventy-two (72) hours after mailing thereof. If any notice is sent by fax or email to a party, it will be deemed to have been delivered on the date the fax or email thereof is actually received, provided the
original thereof is sent by certified mail, in the manner set forth above, within twenty-four (24) hours after the fax or email is sent. 

10. Amendment. Any provision of this Warrant may be amended or the observance thereof may be waived (either generally or in a
particular instance and either retroactively or prospectively), only with the written consent of the Company and the Holder. 
 11.
Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of Florida and any dispute hereunder shall be brought in state or Federal court in Polk County, Florida. 

  
 -A-7- 

 IN WITNESS WHEREOF, the Company and the Holder have executed this Warrant on the respective dates
set forth below. 
  

											
	 CYTODYN INC.
				 HOLDER

				
	By:		  
				ALPHA VENTURE CAPITAL PARTNERS, L.P.
	Name:		Nader Pourhassan				
	Title:		 President and Chief Executive
 Officer
				By: 		 Alpha Venture Capital Management, LLC

General Partner

						
									By:		  

	Date:		  
						Name:		Carl Dockery
									Title:		Manager
						
	Address:		1111 Main Street, Suite 660								
			Vancouver, Washington 98660				Date:		  

					
							 Address: 
		 2026 Crystal Wood Drive

Lakeland, Florida 33806-2477

 

											
							 Mailing Address: 
		 P.O. Box 2477

Lakeland, FL 33806-2477

  
 -A-8- 

 FORM OF EXERCISE 

To be executed upon exercise of Warrant 

(please print) 
 The
undersigned hereby irrevocably elects to exercise the right, represented by this Warrant Number A-2 certificate, to purchase              shares of common stock, no par value per
share (“Common Stock”) of CytoDyn Inc. (the “Company”) and herewith tenders payment for such shares of Common Stock to the order of the Company the amount of $0.50 per share in accordance with the terms hereof. The undersigned
requests that a certificate for such shares of Common Stock be registered in the name of
                                 whose address is
                                    . If said number of shares
of Common Stock is less than all of the shares of Common Stock purchasable hereunder, the undersigned requests that a new Warrant Certificate representing the remaining balance of the shares of Common Stock be registered in the name of
                            , whose address is
                                    , and that such Warrant
Certificate be delivered to                                 , whose address is
                                        .

 Representations of the undersigned. 
  

	 	a)	The undersigned acknowledges that the undersigned has received, read and understood the Warrant and agrees to abide by and be bound by its terms and conditions. 

 

	 	b)	(i) The undersigned has such knowledge and experience in business and financial matters that the undersigned is capable of evaluating the Company and the proposed activities thereof, and the risks and merits of this
prospective investment. 

[    ]  YES            [    ] 
 NO 
 (ii) If “No”, the undersigned is represented by a “purchaser representative,” as that term is defined in
Regulation D under the Securities Act of 1933, as amended (the “Securities Act”). 

[    ]  YES            [    ] 
 NO 
  

	 	c)	(i) The undersigned is an “accredited investor,” as that term is defined in the Securities Act. 

[    ]  YES            [    ] 
 NO 
 (ii) If “Yes,” the undersigned comes within the following category of that definition (check one and complete the blanks
as applicable): 
  

	 	[    ]	 1. The undersigned is a natural person whose present net worth (or whose joint net worth with his or her spouse), excluding the value of the
undersigned’s primary residence, exceeds $1,000,000. For purposes of calculating the undersigned’s present net worth, the undersigned has included the following as liabilities: (i) any indebtedness that is secured by

  
 A - 9 

	 	
the undersigned’s primary residence in excess of the estimated fair market value of the undersigned’s primary residence at the time of the sale of the shares, and (ii) any
incremental debt secured by the undersigned’s primary residence that was incurred in the 60 days before the sale of the shares, other than as a result of the acquisition of the undersigned’s primary residence. 

 

	 	[    ]	2. The undersigned is a natural person who had individual income in excess of $200,000 in each of the last two years or joint income with the undersigned’s spouse in excess of $300,000 during such two years, and
the undersigned reasonably expects to have the same income level in the current year. 

  

	 	[    ]	3. The undersigned is an officer or director of the Company. 

  

	 	[    ]	4. The undersigned is a corporation or partnership not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000. 

 

	 	[    ]	5. The undersigned is a trust with total assets in excess of $5,000,000 whose purchase is directed by a person with such knowledge and experience in financial and business matters that such person is capable of
evaluating the merits and risks of the prospective investment. 

  

	 	[    ]	6. The undersigned is an entity, all of whose equity owners are accredited investors under paragraphs 1, 2, 3, 4 or 5, above. 

  

	 	d)	The undersigned understands that the shares purchased hereunder have not been registered under the Securities Act, in reliance upon the exemption from the registration requirements under the Securities Act pursuant to
Section 4(a)(2) of the Securities Act; and, therefore, that the undersigned must bear the economic risk of the investment for an indefinite period of time since the securities cannot be sold, transferred or assigned to any person or entity
without compliance with the provisions of the Securities Act. 

  

									
	Submitted by:	 		 	Accepted by CytoDyn Inc.:
					
	By:	 	  
	 		 	By:	 	  

	Date:	 	  
	 		 	Date:	 	  

	SS/Tax ID:	 	  
	 		 	Tax ID:	 	  

	Telephone:	 	  
	 		 		 	
	Email:	 	  
	 		 		 	

 (Signature must conform in all respects to name of holder as specified on the face of the Warrant Certificate.) 

  
 A - 10 

 EXHIBIT B 

NOTICE OF CONVERSION 

(please print) 
  

	To:	CYTODYN INC. 

 1. In accordance with the terms of that certain Convertible Promissory Note
issued by CYTODYN INC. to ALPHA VENTURE CAPITAL PARTNERS, L.P., on February 6, 2015 (the “Note”), the undersigned hereby elects to convert $             of the
principal amount of the Note, together with any related accrued but unpaid interest, into Shares. 
 2. Please issue a certificate or
certificates representing the Shares in the name of the undersigned or in such other name or names as are specified below: 
  

	
	  

	(Name)
	
	  

	
	  

	(Address)

 3. The undersigned represents that the aforesaid Shares are being acquired for the account of the undersigned
for investment and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing or reselling such Shares. In support thereof, the undersigned has executed an
Investment Representation Statement attached hereto as Schedule 1. 
 4. All capitalized terms used but not defined herein shall have the
meaning ascribed to such terms in the Note. 
  

							
					  

					(Signature)

  

											
	  
		
	 (Date)
  
		

					
	 Contact telephone:
  
		  

					
	Email:		  

  
 B - 1 

 SCHEDULE 1 

INVESTMENT REPRESENTATION STATEMENT 
  

					
	 Purchaser:
				ALPHA VENTURE CAPITAL PARTNERS, L.P.
	 Company
				CYTODYN INC.
	 Security:
				Common Stock
	 Amount:
				
	 Date:
				

 In connection with the purchase of the above-listed securities (the “Shares”) pursuant to that
certain Convertible Promissory Note issued by CYTODYN INC. to the Purchaser set forth above, on February 6, 2015 (the “Note”), Purchaser represents to the Maker as follows: 

 

	 	(a)	The Purchaser is aware of the Maker’s business affairs and financial condition, and has acquired information about the Maker sufficient to reach an informed and knowledgeable decision to acquire the Shares. The
Purchaser is acquiring the Shares for its own account for investment purposes only and not with a view to, or for the resale in connection with, any “distribution” thereof for purposes of the Securities Act. The Purchaser is an
“accredited investor” as that term is defined in Securities and Exchange Commission Rule 501(a) of Regulation D. 

  

	 	(b)	The Purchaser understands that the Shares have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of the
Purchaser’s investment intent as expressed herein. 

  

	 	(c)	The Purchaser further understands that the Shares must be held indefinitely unless subsequently registered under the Securities Act and any applicable state securities laws, or unless exemptions from registration are
otherwise available. 

  

	 	(d)	The Purchaser is aware of the provisions of Rule 144, promulgated under the Securities Act, which, in substance, permit limited public resale of “restricted securities” acquired by non-affiliates of the issuer
thereof, directly or indirectly, from the issuer (or from an affiliate of such issuer), in a non-public offering subject to the satisfaction of certain conditions, if applicable, including, among other things, the availability of certain public
information about the Maker and the resale occurring not less than six (6) months after the party has purchased and paid for the securities to be sold. 

  

	 	(e)	The Purchaser further understands that at the time Purchaser wishes to sell the Shares there may be no public market upon which to make such a sale, and that, even if such a public market then exists, the Maker may not
have filed all reports and other materials required under Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, other than Form 8-K reports, during the preceding 12 months, and that, in such event, because the Maker used to be
a “shell company” as contemplated under Rule 144(i), Rule 144 will not be available to the Purchaser. 

  
 B - 2 

	 	(f)	The Purchaser further understands that in the event all of the requirements of Rule 144 are not satisfied, registration under the Securities Act, compliance with Regulation A, or some other registration exemption will
be required; and that, notwithstanding the fact that Rule 144 is not exclusive, the staff of the Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered
offering and otherwise than pursuant to Rule 144 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in
such transactions do so at their own risk. 

 All capitalized terms used but not defined herein shall have the meaning
ascribed to such terms in the Note. 
  

			
	Purchaser:		  

 
			
	  
 Date:
		  

  
 B - 3

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