Document:

Exhibit 10.4

 

PERSONAL
EMPLOYMENT AGREEMENT

 

Signed and entered on the 18th
day of the month of November 2018

 

By and Between:

 

My
Size Israel 2014 Ltd.,

I.D.
No. 515036895

Of 3 Arava
St., Airport City

(the “Employer”
and / or the “Company”)

 

of the one part;

 

And

 

Eliyahu
Wales I.D. No. 040914368

Of 9 Menachem
St.,Bnei Brak

(the “Employee”)

 

of the second part;

 

		Whereas	the Company is a subsidiary of My Size Inc., a Delaware corporation (the “Parent”),
and is engaged in developing unique measurement technologies based on algorithms with applications in a variety of areas for smartphone
and tablet apps market; and

 

		Whereas	as
of September 10, 2013 (the “Commencement Date”), under the prior existing terms, the Employee has been employed
by the Company as a Chairman of the Company’s Board of Directors (the “Position” and the “Board”),;
and

 

		Whereas	the Company is interested in continuing to employ the Employee in the Position and the Employee
is interested to continue to be employed by the Company in the Position; and

 

		Whereas	the Position is a management position, which requires a special degree of personal trust as provided
in clause 30(a)(5) of the Work and Rest Hours Law, 1951 (the “Hours Law”); and

 

		Whereas	The Employer and the Employee (the “Parties”)
desire to enter in writing the terms and conditions of the Employee’s employment, as set forth in this agreement (the “Agreement”).

 

Therefore
the parties hereto agree as follows:

 

		1.	Recitals

 

		1.1.	The preamble to this Agreement, including the declarations constitute an integral part hereof,
and are considered as the conditions of the Agreement.

 

		1.2.	The headings in this Agreement are for convenience only and are not to be used to interpret or
construe its provisions.

 

		1.3.	All words used in this Agreement and its appendixes in masculine include feminine, unless the specific
context of the Agreement requires otherwise.

 

     

     

    

 

		2.	The Position

 

		2.1.	As
the Chairman of the Company’s Board the Employee shall be responsible for oversight of the performance of the CEO of the
Company, to be recruited by the Company’s Board.

 

		2.2.	The Employee’s employment and employment terms are subject to any legally required approvals,
including, but not limited to, the Board, the sub-committee and the shareholders, as the case may be.

 

		3.	Employee’s Undertakings and Declarations

 

		3.1.	The Employee undertakes that, in order to duly fulfill the duties of the Position, he shall devote
his time, and his desire, know-how, efforts, expertise and talents required for the proper performance thereof and he shall act
with loyalty and dedication in order to maintain the property and rights of the Company.

 

		3.2.	The Employee warrants that in performing his duties he will act in accordance with the policies
of the Company and/or in accordance with specific instructions and approvals of the Company.

 

		3.3.	The Employee hereby undertakes to act in accordance with the Employer’s safety regulations in effect
from time to time, including the Employer’s anti sexual-harassment regulations.

 

		3.4.	The Employee is aware and he hereby declares that his Position is a management position that requires
a special degree of personal trust as well as requires him to perform activities at irregular hours and that, as provided in clause
30(a)(5) of the Hours Law.

 

		3.5.	The Employee confirms and declares that he has been informed that the use of the computer and/or
the electronic mailbox he was provided by the Employer is solely for purposes of his work and he may not use them for private purposes.
The Employee confirms and declares that he been advised that he may make limited and reasonable use of the internet network also
for private purposes. The Employee further declares that he has been advised that, in order to maintain a safe working environment,
for the purposes of data security and in order to protect the Employer’s interests, data and information, the Employer conducts,
from time to time, monitoring, maintenance and backup activities with respect to the use of the internet network, as well as the
data stored on the Employer’s servers and email boxes, and as those means are provided to the Employee for the purpose of
fulfilling his Position; the Employee declares that such actions by the Employer shall not be considered an infringement of his
privacy. In the event of the occurrence of an irregular incident, in which a reasonable suspicion arises that the Employer has
been compromised, in respect of an unauthorized act carried out by one of the Employer’s employees or an act that exposes
the Employer to a law suit filed by any entity whatsoever, the Employer will conduct an investigation of the incident and, as required,
will be entitled to carry out examinations and monitoring of the Employee’s personal computers and/or emails.

 

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		3.6.	The Employee confirms and declares that during or as a result of his employment he has provided
and/or shall provide to the Employer, personal and private information about him, such as CV, employment terms and conditions,
personal data, medical data, bank account information, biometric data as well as possible additional information (the “Private
Information”). The Employee further confirms that he has been informed that such Private Information is collected, held
and processed by the Employer and/or someone on its behalf during his employment, for the purposes of the ordinary course of business,
including managing human resources and payroll by the Employer and the Employee confirms that the abovementioned shall not be considered
an infringement of his privacy. In addition, the Employee confirms and declares that he has been informed and hereby expressly
agrees that the Employer will be entitled to transfer the Private Information (in whole or in part) as part of the Employer’s
needs as mentioned above, to the following: (a) Public Entities as defined in the Privacy Protection Act - 1981; (b) Entities related
to the Employer, in Israel and abroad, including, but not
limited to, any parent Employer, subsidiary, or affiliate
of the Employer; (c) Legal advisors and tax consultants of the Employer, as well as external entities that provide services of
managing human resources and payroll to the Company; (d) Third parties in the framework of any legal or economic due diligence;
(e) Other entities that are not mentioned in sections (a) to (d) above, subject to a prior written notice of the Company addressed
to the Employee concerning its intention to disclose any information about the Employee provided that the Employee does not oppose
such delivery of information within seven (7) days after receiving such notice from the Employer. Such notice shall include the
specific name of the entity and the purpose for which the Employer is willing to deliver such information.

 

		3.7.	The Employee hereby undertakes that, during the term of his employment, he shall not engage, or
be involved with, any additional and/or other work without the prior written consent of the Company.

 

		3.8.	The Employee hereby warrants and represents that he is in a condition of good health and fit for
working and that he does not suffer from any disability that might limit his ability to act in the Position and that the Employee
will inform the Employer regarding any change that may occur regarding his state of health.

 

		3.9.	The Employee hereby undertakes that upon termination of the employment of
                                                                                                  the Employee by the Employer for any reason whatsoever, whether at the initiative of the Employee or of the Employer, the
                                                                                                  Employer shall relinquish the Position in an orderly manner according to a procedure to be determined, and will turn over all
                                                                                                  matters under his care to whomever the Employer shall determine, in a manner which shall enable such person to continue with
                                                                                                  the performance of the Position in an orderly manner.

 

		3.10.	The Employee undertakes, that upon the termination of his employment with the Employer, for any
reason whatsoever, the Employee will return any asset, equipment, Employer’s documents, that may be in the Employee’s
possession, and that the Employee will not have any right of lien in respect of any asset or property belonging to the Employer.

 

		4.	Salary and Employment Benefits

 

		4.1.	Working days and hours

 

		4.1.1.	The Employee shall work on a full time basis, at least forty-two (42) hours per week; the weekly
day of rest of the Employee shall be Saturday.

 

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		4.1.2.	The working hours shall be as may be required in accordance with his Position and tasks and the
Employee acknowledges that he will be required to work overtime.

 

		4.1.3.	As the terms of the Employee’s employment do not allow the Company to supervise his work and rest
hours, at least a substantial part of the working hours, the Company cannot manage and record his work and rest hours in the attendance
recording system. The pay slip of the Employee will contain an appropriate comment on the subject in accordance with the applicable
law. Notwithstanding, the Employee shall report his attendance whenever possible.

 

		4.2.	Salary

 

		4.2.1.	In
                                         consideration for work carried out during a full month, the Employee shall receive a
                                         monthly salary in the amount of NIS 35,000 (gross) (the “Salary”).

 

		4.2.2.	According at Section ‎3.4 the Employee acknowledges that the provisions of the Hours Law will
not apply to the Employee and the Employee shall not be entitled to compensation for the necessity to work on irregular hours,
overtime, and on weekly rest days, other than his Salary. The Employee confirms and declares that his Salary and his term of employment
were determined based on the aforesaid.

 

		4.2.3.	The Company shall pay the Employee the Salary by the ninth (9th) day of each month for the previous
month.

 

		4.2.4.	The Employee shall bear all governmental taxes and other payments which every employee is required
to pay according to law.

 

		4.2.5.	The Employee hereby approves that the Company shall be entitled to set off from the Employee’s
Salary any debt the Employee owes and/or may owe to the Company (the “Debt”), subject to the Company informing
the Employee in writing of the Debt, and the Employee has not explicitly in writing objected to the Debt within three (3) days
of the Company’s notice.

 

		4.3.	Bonuses

 

The Employee may be eligible
to bonuses, all subject to Company’s policy on this matter.

 

		4.4.	Annual Leave

 

		4.4.1.	The Employee shall be entitled to twenty (20) working days as paid annual leave.

 

		4.4.2.	The timing of the Employee’s leave will be coordinated with the Company.

 

		4.4.3.	The Employee can accumulate his annual leave days up to forty (40) days.

 

		4.4.4.	The redemption of annual leave days shall be in accordance with the Annual Leave Law, 5711-1951,
and only upon termination of Employee’s employment with the Company.

 

		4.5.	Sick Leave 

 

		4.5.1.	The Employee shall be entitled to sick leave, according to the provisions of the Sick Pay Law,
1976, as long as he provides the Company an appropriate medical confirmation and is not paid for the sick leave money from the
National Insurance Institute and/or pension insurance and/or from any other party. On an ex-gratia basis, the Employee shall be
entitled to his full Salary as of the first (1st) day of illness.

 

		4.5.2.	The Employee may accrue up to ninety (90) days of sick leave. Accrued sick leave days are not redeemable,
and the Employee will not be entitled to any kind of payment for unused sick days.

 

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		4.6.	Convalescence

 

The Employee shall be entitled
to convalescence payment according to the applicable law.

 

		4.7.	Pension Scheme and Severance pay

 

		4.7.1.	On the Effective Date, the Employee is insured and will continue to be insured by the Company,
as of his choice (“Pension Scheme”), as follows:

 

NIS 25,000 (gross) of the Salary
is covered by managers’ insurance policy in the “Migdal” Insurance Company”, and 10,000 NIS (gross) of the Salary
is covered by pension fund in the “Migdal”.

 

		4.7.2.	The payments for the Pension Scheme will continue to be based on the Employee’s Salary as set forth
in Section ‎4.2.1 above and shall not include any other benefits
and/or additional compensation, such as incentives of any kind. In the event that the Employee shall choose to insure his Salary
in more pension programs, in any event, the insured salary in all such programs shall not exceed the Employee’s Salary as set forth
in Section ‎4.2.1 above.

 

		4.7.3.	The Company’s contributions to the managers’ insurance policy will be 14.83% of the part
of the Salary insured in the managers’ insurance policy: 8.33% for severance payments and 6.5% for both pension component
and disability insurance to cover 75% of the Salary insured in the managers’ insurance policy, subject to the pension component
being no less than 5%. In the event that the cost of the disability insurance will be higher than 1.5%, the Company shall bear
such costs, subject to the pension component together with a disability component being of a maximum cost of 7.5%

 

		4.7.4.	The Company’s contributions to the pension fund will be 14.83% of the part of the Salary insured
in the pension fund: 8.33% for severance payments and 6.5% for pension component.

 

		4.7.5.	In addition, the Company will continue to deduct from the Employee’s Salary an amount equal to
6% for the Employee’s part of the Pension Scheme to be forwarded to the Pension Scheme, and the Employee hereby approve such
deduction.

 

		4.7.6.	The Company’s contributions to the Pension Scheme for severance component of 8.33% shall
be in lieu of 100% of the severance compensation according to clause 14 of the Severance Pay Law, 1963.

 

		4.7.7.	The Parties hereby declare that they wish to continue to adopt all the of the terms and conditions
detailed in the general approval of the Minister of Labor regarding payments by employers to a pension fund and insurance fund
in lieu of severance pay (the “General Permit”), in accordance with section 14 of the Severance Pay Law, 1963,
attached as Appendix A to this Agreement, as will be updated from time to time. These terms and conditions oblige
the Parties to this agreement. For the avoidance of doubt, it is hereby clarified that the above conditions do not derogate from
the rights and/or benefits granted to the Employee in accordance with this Agreement.

 

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		4.7.8.	The Company waives all rights for return of the sums paid by it to the Pension Scheme for severance,
unless the Employee’s right for severance was denied by court ruling under clauses 16-17 to the Severance Pay Law, 1963 or
in the event that the Employee withdrew monies from the Pension Scheme without “Entitling Event”, as defined by the
General Permit.

 

		4.7.9.	The Employee shall bear all applicable taxes for any of the Employer’s and the Employee’s
contributions to the Pension Scheme exceeding the maximum amount exempt from income tax for such payments

 

		4.7.10.	The Employee hereby warrants and represents that he fully approves the aforesaid conditions detailed
in this Section ‎4.7.

 

		4.8.	Education Fund

 

		4.8.1.	The Employee will continue to be entitled to an education fund of his choice in “Migdal”
(the “Education Fund”).

 

		4.8.2.	The
                                         contribution towards the Education Fund will be based on the Salary set forth in Section
                                         ‎4.2.1 שגיאה!
                                         מקור ההפניה לא
                                         נמצא. above.

 

		4.8.3.	The Employer’s monthly contributions shall be 7.5% and the Employee’s monthly contributions
shall be 2.5% (by way of withholding from the Salary).

 

		4.8.4.	The Employee shall bear all applicable taxes for any of the Employer’s and the Employee’s
contributions to the Education Fund exceeding the maximum amount exempt from income tax for such payments

 

		4.9.	Additional Benefits 

 

The Employee shall be entitled
to a Company’s car, Company’s cell phone and reimbursement for lunch expenses, all in accordance with the Company’s policy.

 

		4.10.	Expenses

 

The Employee shall be entitled
to reimbursement from the Company for all reasonable expenses and disbursements incurred by him in carrying out his duties under
this Agreement subject to Company’s policy, including any reasonable expenses associated with traveling overseas (flights, accommodation
and travel insurance).

 

		5.	Term and Termination

 

		5.1.	The terms and conditions of this Agreement shall be in effect as of September 1, 2018 (the “Effective
Date”).

 

		5.2.	Without derogating from the aforementioned, the Employee’s seniority shall be calculated
as of the Commencement Date.

 

		5.3.	The employment is for an unlimited period and shall continue until the termination of the Agreement
as described below.

 

		5.4.	Each of the Parties will be allowed to terminate this Agreement, for any reason, by giving the
other party seventy-five (75) days prior written notice (the “Notice Period”).

  

		5.5.	The Company has the right to determine whether, during the prior Notice Period, the Employee shall
continue to actually work for the Company or whether the Company shall waive the actual work of the Employee during such period,
all without derogating from the Employee’s right to receive a payment in lieu of notice period, according to law.

  

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		5.6.	In the event that the Employee terminates his employment without providing prior notice, the Company
may deduct the amount equal to the Salary to which the Employee would have been entitled had he continued to work during the Notice
Period from his Salary or from any other sum due to the Employee.

 

		5.7.	Notwithstanding anything to the contrary herein, and without derogating from the causes of action
available under the law, the Company may terminate this Agreement at any time during the term of this Agreement, without prior
notice (or payment in lieu of such), in any of the following events (each cause for such termination, pursuant to the following
and/or any applicable law shall be referred herein as: “Cause”):

 

		5.7.1.	The Employee has been convicted of a criminal offence involving moral turpitude;

 

		5.7.2.	The Employee has acted in bad faith and/or acted dishonestly and/or disloyally and/or has provided
a false report and/or caused the Company malicious damage and/or broke the discipline code;

 

		5.7.3.	The Employee has breached Chapter ‎6 and/or Appendix B of this Agreement.

 

		6.	Loyalty, Confidentiality, Proprietary Information and Non-Competition

 

Concurrently with the execution
of this Agreement, the Employee shall sign the Loyalty, Confidentiality, Intellectual Property and Non-Compete undertaking attached
hereto as Appendix B to this Agreement, such letter of undertaking shall form an integral part of this Agreement.

 

		7.	Miscellaneous

 

		7.1.	This Agreement constitutes the entire understanding between the Parties, both oral and written,
in relation to the employment of the Employee by the Company and this Agreement supersedes any previous agreements and understandings,
whether explicit or implied, existing between the parties prior to their signature hereof. As of signature hereunder, Parties shall
only be subject to this Agreement. Any change and/or addition to this Agreement, in writing or in conduct, will not be valid unless
drafted in writing and signed by the Parties.

 

		7.2.	The Employer is not a member of any employers union and provisions of any agreement and/or collective
agreement shall not apply to the relations between the Parties, and such relations shall be governed solely by the provisions of
this Agreement.

 

		7.3.	The payments according to the Agreement constitute the full consideration for all of Employee’s
undertakings towards the Company and that he does not have, nor will have, any right to any additional payment of any kind whatsoever,
whether monetary or its equivalent.

 

		7.4.	The Company shall be entitled to transfer its rights under this Agreement to another company and/or
person, provided that such transfer shall not prejudice the rights of the Employee as detailed in this Agreement and such transfer
shall not give rise to a cause for resignation which will award him severance.

 

		7.5.	Upon termination of employment relations, the Company shall be entitled to offset from any amount
due to the Employee the total amount of monetary Debts owed by the Employee to the Company. By signing this Agreement the Employee
gives an irrevocable instruction to the Company to deduct and/or offset from any amount due to him from the Company upon termination
of the employment relations, all his Debts to the Company and he also undertakes to sign any document required on the date of termination
of the employment for the purpose of allowing the Company to collect the all of the Employee’s Debts.

 

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		7.6.	Shall the Company waive its right to any of its rights as described in this Agreement such waiver
will not be used as precedent to that right or any other right. It will not be referred to in the future either for cases that
are alike or similar.

 

		7.7.	This Agreement and the Employee’s employment shall be governed solely by the laws of State of Israel
and the competent Israeli labor courts shall have the exclusive jurisdiction on all matters regarding the Employee’s employment.

 

		7.8.	The addresses of the Parties for the purposes of this Agreement shall be as first written above.
Any notice shall be delivered via certified mail and shall be considered delivered to the other party at the earlier of receipt
or seventy-two (72) hours following the date of the post office authorization regarding receipt.

 

		7.9.	The Employee confirms and declares that he had thoroughly read and understood this Agreement and
he had thus signed this Agreement with full understanding of its content and significance.

 

In
Witness Thereof the Parties Have Signed:

 

	My Size Israel 2014 Ltd	 	/s/
    Eliyahu Wales
	Employer	 	Employee

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Appendix A

 

GENERAL APPROVAL REGARDING
PAYMENTS BY EMPLOYERS TO A PENSION FUND AND INSURANCE FUND IN LIEU OF SEVERANCE PAY

 

By virtue of my power
under section 14 of the Severance Pay Law, 1963 (hereinafter: the “Law”), I certify that payments made by an
employer commencing from the date of the publication of this approval publication for its employee to a comprehensive pension benefit
fund that is not an insurance fund within the meaning thereof in the Income Tax (Rules for the Approval and Conduct of Benefit
Funds) Regulations, 1964 (hereinafter: the “Pension Fund”) or to managers insurance including the possibility
of an insurance pension fund or a combination of payments to an annuity fund and to a non-annuity fund (hereinafter: the “Insurance
Fund”), including payments made by him by a combination of payments to a Pension Fund and an Insurance Fund, whether or
not the Insurance Fund has an annuity fund (hereinafter: the “Employer’s Payments”), shall be made in lieu of
the severance pay due to the said employee in respect of the salary from which the said payments were made and for the period they
were paid (hereinafter: the “Exempt Salary”), provided that all the following conditions are fulfilled:

 

		(1)	The Employer’s Payments -

 

(a) To the
Pension Fund are not less than 141/3% of the Exempt Salary or 12% of the Exempt Salary if the employer pays
for its employee in addition thereto also payments to supplement severance pay to a benefit fund for severance pay or to an Insurance
Fund in the employee’s name in an amount of 21/3% of the Exempt Salary. In the event the employer has not
paid an addition to the said 12%, its payments shall be only in lieu of 72% of the employee’s severance pay;

 

(b) To the
Insurance Fund are not less than one of the following:

 

(i) 131/3%
of the Exempt Salary, if the employer pays for its employee in addition thereto also payments to secure monthly income in the event
of disability, in a plan approved by the Commissioner of the Capital Market, Insurance and Savings Department of the Ministry of
Finance, in an amount required to secure at least 75% of the Exempt Salary or in an amount of 21/2% of the
Exempt Salary, the lower of the two (hereinafter: “Disability Insurance”);

 

(ii) 11% of
the Exempt Salary, if the employer paid, in addition, a payment to the Disability Insurance, and in such case the Employer’s Payments
shall only replace 72% of the Employee’s severance pay; In the event the employer has paid in addition to the foregoing payments
to supplement severance pay to a benefit fund for severance pay or to an Insurance Fund in the employee’s name in an amount of
21/3% of the Exempt Salary, the Employer’s Payments shall replace 100% of the employee’s severance pay.

 

		(2)	No later than three months from the commencement of the Employer’s Payments, a written agreement
is executed between the employer and the employee in which -

 

(i) The employee
has agreed to the arrangement pursuant to this approval in a text specifying the Employer’s Payments, the Pension Fund and Insurance
Fund, as the case may be; the said agreement shall also include the text of this approval;

 

(ii)The employer
waives in advance any right, which it may have to a refund of monies from its payments, unless the employee’s right to severance
pay has been revoked by a judgment by virtue of Section 16 or 17 of the Law, and to the extent so revoked and/or the employee has
withdrawn monies from the Pension Fund or Insurance Fund other than by reason of an entitling event; in such regard “Entitling
Event” means death, disability or retirement at or after the age of 60.

 

		(3)	This approval is not such as to derogate from the employee’s
right to severance pay pursuant to any law, collective agreement, extension order or employment agreement, in respect of salary
over and above the Exempt Salary.

  

	My Size Israel 2014 Ltd	 	/s/ Eliyahu
Wales
	Employer	 	Employee

 

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Appendix B 

 

Loyalty, Confidentiality,
Non-Competition and Intellectual Property Undertakings

 

To:

My
Size Israel 2014 Ltd

(the
“Company”)

 

I, the undersigned, Eliyahu Wales, I. D. No. 040914368, hereby declare, authorize and undertake towards
the Company, as follows:

 

		1.	Loyalty

 

		1.1.	I undertake to act in good faith and in a skilled and professional manner
in order to achieve the objectives of my employment and for the benefit of the Company, and I undertake to divulge to the Company,
any item of news and to hand over any document related to its business, that will come into my possession as a result of my position
in the Company.

 

		1.2.	I undertake to exercise practical and business consideration in the fulfillment
of my duties, aimed exclusively to benefit the interests of the Company and I undertake to not be in a situation of a conflict
between my personal interests and the interests of the Company and I am aware of the fact that the obligation of full disclosure
applies to in respect of a personal conflict that I may have in any matter related to the Company.

 

		1.3.	I undertake to not receive any hidden proceeds, including commissions, rights
and benefits of any kind whatsoever, as a result of my status in the Company or arising therefrom, and even should I receive such
proceeds, in a way that I believe I am acting in good faith, that there is nothing improper in any way of receiving such, and the
Company will be entitled to receive the proceeds or benefits or rights created or produced under these circumstances, in addition
to any other remedy or relief permitted under the law.

 

		1.4.	I undertake to refrain from transferring to myself and/or to anyone acting
on my behalf, directly and/or indirectly, business activities and/or business opportunities that the Company is interested in within
the ambit of the business of the Company and/or its affiliated corporations, and this during the duration of my period of employment
and also for a period of twelve (12) months from the date of the termination of my employment at the Company, unless I have received
prior written approval from the Company.

 

		1.5.	I undertake that during the period of my employment at the Company and also
for a period of twelve (12) months after the termination of my employment, I will not approach, in any manner whatsoever, the Company’s
customers and/or the Company’s employees and/or the Company’s service providers and/or the Company’s affiliated
corporations (the “Entities Affiliated to the Company”) and neither to anyone who was an Entity Affiliated with
the Company during the last year of my employment, in order to solicit them and/or encourage them to carry out any work and/or
to provide any service in the field of developing unique measurement technologies for smartphone and tablet apps market and/or
in order to solicit them to terminate their engagement with the Company and/or with its affiliated corporations. The above mentioned
in this paragraph will not apply in the case that the Company authorized such an engagement and/or approach as stated, in advance
and in writing.

 

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		2.	Confidentiality

 

		2.1.	I recognize that as part of my employment with the Company, I may be exposed
to, have access to and be engaged in the development of any information or knowledge directly or indirectly related to the Company’s
business and/or activity and/or products, including, without limitation, all data pertaining to the Company’s technical,
professional data, technological developments, commercial/trade secrets, lists of customers and suppliers, price lists, method
of determining prices, the Company’s policy regarding its customers and suppliers, methods of marketing and sales, financial
information, training methods of the Company’s employees, information pertaining to transactions entered into or negotiated
by the Company, security matters, and any technical, commercial or other information related to the Company which I learned of
and/or came into my possession during or due to my employment (hereinafter: the “Confidential Information”).
The Confidential Information will not include: information that is public knowledge through no wrongful act on my behalf; information
that has or will become part of my professional skills. I acknowledge that the Company has received and may receive from time to
time from third parties, information that is confidential or proprietary to such third party, as long as I received it as a result
of my employment.

 

		2.2.	I acknowledge that the Confidential Information is a valuable and unique asset
of the Company’s business and that its use or disclosure would cause the Company substantial loss and damages.

 

		2.3.	Accordingly, I hereby declare and undertake that, for the duration of my employment
and for an unlimited period of time after termination of my employment, I shall maintain in absolute confidence and shall make
no use and shall not deliver, disclose or publish in any manner whatsoever the Confidential Information.

 

		2.4.	I undertake not to make any self-use or other of the Confidential Information
in any manner whatsoever, whether for consideration or not, without the prior written consent of the Company.

 

		2.5.	Upon the termination of my employment at the Company, for any reason whatsoever,
I undertake to return to the Company, without delay, any information and/or software program that has come into my possession,
including information and/or software programs prepared by me. Likewise, I undertake to not keep any photocopy and/or other form
of copy of the information and the software in my possession.

 

		2.6.	Upon the termination of the employer-employee relations, for any reason, I
hereby undertake to destroy any material, information, reports, forms or anything else that I received from the Company or that
I created for the Company, including materials that I created for the Company’s customers and which were saved or stored
by me on my home computer and/or anywhere else that is not the Company’s server and/or the Company’s computers.

 

    11

     

    

 

		3.	Non-Competition

 

		3.1.	I undertake that during a period of twelve (12) months from the date of the
termination of employer-employee relations for any reason whatsoever, I will not compete with the business of the Company and/or
I will not work and/or I will not be associated, whether for remuneration or nor for remuneration, whether as an employee or whether
as a self-employed, whether as a partner or whether as a shareholder, whether as a consultant or whether in any other manner, in
an Israeli or foreign organization, that competes with the Company and that engagement will reasonably give rise to the exposure
of the Confidential Information of the Company, and this will in all probability cause damage to the Company. This limitation will
apply throughout Israel and outside thereof, as long as such organization competes with the Company and is interested in its Confidential
Information at the relevant time.

 

		3.2.	I take this undertaking upon myself out of the recognition of my rights to
work in my profession after the termination of employer-employee relations with the Company, and also with the recognition of the
right of the Company to protect its vital business interests. The limitation period and the scope thereof have been agreed upon
between me and the Company, after I had taken into account the totality of concurrences between me and the Company, the terms of
my Salary, and after I decided that my undertaking will not constitute an unreasonable limitation to my capability to continue
being employed in my profession also outside of the Company’s field of operations.

 

		4.	Intellectual Property

 

		4.1.	It is hereby agreed that any patents, models, names or commercial marks, copyright,
as well as inventions, developments, enhancements or improvements, or other intellectual property of any kind whatsoever, that
were made, invented or implemented by me, on my own and/or in conjunction with others, during the course of my work at the Company,
and due to my employment at the Company (the “Intellectual Property”), will be the sole property and possession
of the Company.

 

		4.2.	I undertake to promptly disclose to the Company, any Intellectual Property
and to assist the Company, to the best of my ability, to materialize its rights regarding the Intellectual Property and to sign
any application or other document that will be required by the Company in order to materialize its rights and in order to register
the Company as the owner of the above stated rights, as long as I will not be obligated to bear any expenses whatsoever in this
regard.

 

		4.3.	I
                                         am aware of the fact that I will not be eligible to a Service Invention, as its
                                         meaning in the Patents Law, 1967 (the “Patents Law”), and such will
                                         not be my property and the provisions of Article 132 (b) of the Patents Law will not
                                         apply to me and to the Company, in such a manner that even if I dispatch a notification
                                         to the Company regarding the Service Invention and even if the Company does not
                                         respond to me within six (6) months – the Company will not be considered, under
                                         any circumstances, as having waived the rights to such invention.

 

    12

     

    

 

		4.4.	I agree that I will not be entitled to any additional compensation and/or
royalties and/or payment of any kind whatsoever for any Intellectual Property whatsoever, as defined above, over than the amounts
paid by the Company, including Salary and all the rest of the terms of my employment.

 

		4.5.	Without derogating from the generality of the above stated, I hereby explicitly
waive any right, claim, or demand related to the eligibility for any payment, compensation or royalties related to any Intellectual
Property, including with respect of any claim for consideration regarding Service Invention, under Article 134 of the Patents
Law. I hereby declare that my Salary and all the rest of the accompanying terms of my employment paid and/or granted to me by the
Company, constitute the full and final consideration for any intellectual property that I am likely to develop and/or compose and/or
achieve by any other means as stated above in this letter of undertaking.

 

		4.6.	In addition, I hereby waive the right to assert any claim or demand regarding
the eligibility to receive royalties, compensation or rewards related to intellectual property before the Compensation and Royalties
Committee set up at the Office of the Patents Registrar.

 

		5.	Miscellaneous

 

		5.1.	For purposes herein the term “Company” shall include the Parent
and any affiliates or subsidiaries of the Company.

 

		5.2.	I am aware of the fact that this letter of undertaking is an appendix to the
employment Agreement between me and the Company and it constitutes an inseparable part thereof, to all intents and purposes.

 

		5.3.	My undertakings in accordance with the this letter of undertaking will also
apply in the case of the termination of employer-employee relations between the Parties and also in the case of the termination
and/or annulment of the employment Agreement, to which this letter of undertaking constitutes an appendix.

 

		5.4.	Despite the fact that the limitations detailed in this appendix are acceptable
to me and I find them to be reasonable under the circumstances, if, in the event of, and for any reason whatsoever, a judicial
instance will rule that the limitations are unreasonable, but they would have been reasonable should the terms and conditions have
been altered, such as a change in the wording, a shortening of the time period, a reduction in the scope of the fields, and such
other changes, then such changes will obligate me and the Company as if such were agreed between us from the outset, in such a
manner that the validity of this document will be upheld.

 

		5.5.	I acknowledge that this appendix constitutes my independent undertakings with
regard to that stated in the appendix. Without derogating from the aforementioned, I acknowledge that any claim and/or demand and/or
argument which I have and/or may have against the Company shall not constitute protection against the fulfilment of my obligations
under this appendix.

 

		5.6.	Nothing in this document shall be deemed to derogate from any remedy and/or
right available to the Company as prescribed by law.

  

	Eliyahu
Wales	 	November 18, 2018	 	/s/
    Eliyahu Wales
	Name of the Employee	 	Date	 	Signature 

 

    13EX-4.1

 Exhibit 4.1 

NEITHER THIS NOTE NOR THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED, ASSIGNED, OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY
APPLICABLE STATE SECURITIES LAWS OR (2) THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF THIS NOTE OR SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT THIS NOTE OR SUCH SECURITIES, AS APPLICABLE,
MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED, OR OTHERWISE TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS. 

CONVERTIBLE PROMISSORY NOTE 
  

			
	Effective Date: June 26, 2018	  	U.S. $5,700,000.00

 FOR VALUE RECEIVED, CYTODYN INC., a Delaware corporation
(“Borrower”), promises to pay to ILIAD RESEARCH AND TRADING, L.P., a Utah limited partnership, or its successors or assigns (“Lender”), $5,700,000.00 and
any interest, fees, charges, and late fees on the date that is twenty-four (24) months after the Purchase Price Date (the “Maturity Date”) in accordance with the terms set forth herein and to pay interest on the Outstanding
Balance at the rate of ten percent (10%) per annum from the Purchase Price Date until the same is paid in full. This Convertible Promissory Note (this “Note”) is issued and made effective as of June 26, 2018 (the
“Effective Date”). This Note is issued pursuant to that certain Securities Purchase Agreement dated June 26, 2018, as the same may be amended from time to time, by and between Borrower and Lender (the “Purchase
Agreement”). Certain capitalized terms used herein are defined in Attachment 1 attached hereto and incorporated herein by this reference. 

This Note carries an OID of $600,000.00. In addition, Borrower agrees to pay $100,000.00 to Lender to cover Lender’s legal fees,
accounting costs, due diligence, monitoring and other transaction costs incurred in connection with the purchase and sale of this Note (the “Transaction Expense Amount”), all of which amount is included in the initial principal
balance of this Note. The purchase price for this Note shall be $5,000,000.00 (the “Purchase Price”), computed as follows: $5,700,000.00 original principal balance, less the OID, less the Transaction Expense Amount. The Purchase
Price shall be payable by Lender to the Borrower by wire transfer of immediately available funds. 
 1. Payment; Prepayment. 

1.1. Payment. Provided there is an Outstanding Balance, on each Redemption Date (as defined below), Borrower shall pay to Lender an
amount equal to the Redemption Amount (as defined below) due on such Redemption Date in accordance with Section 8. All payments owing hereunder shall be in lawful money of the United States of America or Conversion Shares (as defined below), as
provided for herein, and delivered to Lender at the address or bank account furnished to Borrower for that purpose. All payments shall be applied first to (a) costs of collection, if any, then to (b) fees and charges, if any, then to
(c) accrued and unpaid interest, and thereafter, to (d) principal. 

 1.2. Prepayment. Notwithstanding the foregoing, so long as Borrower has not received
a Lender Conversion Notice (as defined below) or a Redemption Notice (as defined below) from Lender where the applicable Conversion Shares have not yet been delivered and so long as no Event of Default (as defined below) has occurred and is
continuing, then Borrower shall have the right, exercisable on not less than five (5) Trading Days prior written notice to Lender to prepay the Outstanding Balance of this Note, in part or in full, in accordance with this Section 1. Any
notice of prepayment hereunder (an “Optional Prepayment Notice”) shall be delivered to Lender at its registered address and shall state: (i) that Borrower is exercising its right to prepay this Note, and (ii) the date of
prepayment, which shall be not less than five (5) Trading Days from the date of the Optional Prepayment Notice. On the date fixed for prepayment (the “Optional Prepayment Date”), Borrower shall make payment of the Optional
Prepayment Amount (as defined below) to or upon the order of Lender as may be specified by Lender in writing to Borrower. If Borrower exercises its right to prepay this Note, Borrower shall make payment to Lender of an amount in cash equal to 115%
multiplied by the then Outstanding Balance of this Note being repaid (the “Optional Prepayment Amount”). In the event Borrower delivers the Optional Prepayment Amount to Lender prior to the Optional Prepayment Date or without
delivering an Optional Prepayment Notice to Lender as set forth herein without Lender’s prior written consent, the Optional Prepayment Amount shall not be deemed to have been paid to Lender until the Optional Prepayment Date. In the event
Borrower delivers the Optional Prepayment Amount without an Optional Prepayment Notice, then the Optional Prepayment Date will be deemed to be the date that is five (5) Trading Days from the date that the Optional Prepayment Amount was
delivered to Lender and Lender shall be entitled to exercise its conversion rights set forth herein during such five (5) day period. In addition, if Borrower delivers an Optional Prepayment Notice and fails to pay the Optional Prepayment Amount
due to Lender within two (2) Trading Days following the Optional Prepayment Date, Borrower shall forever forfeit its right to prepay this Note. 

2. Security. This Note is not secured. 

3. Lender Optional Conversion. 

3.1. Lender Conversions. Lender has the right at any time after the date that is six (6) months from the Purchase Price Date until
the Outstanding Balance has been paid in full, including without limitation until any Optional Prepayment Date (even if Lender has received an Optional Prepayment Notice) or at any time thereafter with respect to any amount that is not prepaid, at
its election, to convert (each instance of conversion is referred to herein as a “Lender Conversion”) all or any part of the Outstanding Balance into shares (“Lender Conversion Shares”) of fully paid and non-assessable common stock, $0.001 par value per share (“Common Stock”), of Borrower as per the following conversion formula: the number of Lender Conversion Shares equals the amount being
converted (the “Conversion Amount”) divided by the Lender Conversion Price (as defined below). Conversion notices in the form attached hereto as Exhibit A (each, a “Lender Conversion Notice”) may be
effectively delivered to Borrower by facsimile, email, mail, overnight courier, or personal delivery and all Lender Conversions shall be cashless and not require further payment from Lender. Borrower shall deliver the Lender Conversion Shares from
any Lender Conversion to Lender in accordance with Section 9 below. 
 3.2. Lender Conversion Price. Subject to adjustment as
set forth in this Note, the price at which Lender has the right to convert all or any portion of the Outstanding Balance into Common Stock is $0.55 per share (the “Lender Conversion Price”). 

  
 2 

 4. Defaults and Remedies. 

4.1. Defaults. The following are events of default under this Note (each, an “Event of Default”): (a) Borrower fails
to pay any principal, interest, fees, charges, or any other amount when due and payable hereunder; (b) Borrower fails to deliver any Lender Conversion Shares in accordance with the terms hereof; (c) Borrower fails to deliver any Redemption
Conversion Shares (as defined below) in accordance with the terms hereof; (d) a receiver, trustee or other similar official shall be appointed over Borrower or a material part of its assets and such appointment shall remain uncontested for
twenty (20) days or shall not be dismissed or discharged within sixty (60) days; (e) Borrower generally fails to pay, or admits in writing its inability to pay, its debts as they become due, subject to applicable grace periods, if any;
(f) Borrower makes a general assignment for the benefit of creditors; (g) Borrower files a petition for relief under any bankruptcy, insolvency or similar law (domestic or foreign); (h) an involuntary bankruptcy proceeding is commenced or
filed against Borrower; (i) Borrower or any pledgor, trustor, or guarantor of this Note defaults or otherwise fails to observe or perform any covenant, obligation, condition or agreement of Borrower or such pledgor, trustor, or guarantor
contained herein or in any other Transaction Document (as defined in the Purchase Agreement), other than those specifically set forth in this Section 4.1 and Section 4 of the Purchase Agreement; (j) any representation, warranty or
other statement made or furnished by or on behalf of Borrower or any pledgor, trustor, or guarantor of this Note to Lender herein, in any Transaction Document, or otherwise in connection with the issuance of this Note is false, incorrect, incomplete
or misleading in any material respect when made or furnished; (k) the closing of a Fundamental Transaction without Lender’s prior written consent; provided, that such consent shall not be required in connection with the closing of a
Fundamental Transaction where the Note is repaid in full at or prior to the closing of such Fundamental Transaction; (l) Borrower fails in any material respect to maintain the Share Reserve as required under the Purchase Agreement;
(m) Borrower effectuates a reverse split of its Common Stock without ten (10) Trading Days prior written notice to Lender; (n) any money judgment, writ or similar process is entered or filed against Borrower or any subsidiary of
Borrower or any of its property or other assets for more than $500,000.00, and shall remain unvacated, unbonded or unstayed for a period of twenty (20) calendar days unless otherwise consented to by Lender; (o) Borrower fails to observe or
perform, in any material respect, any covenant set forth in Section 4 of the Purchase Agreement; or (p) Borrower, any affiliate of Borrower, or any pledgor, trustor, or guarantor of this Note breaches, in any material respect, any covenant
or other term or condition contained in any Other Agreements. Notwithstanding the foregoing, the occurrence of any event specified in Section 4.1(i) – (p) shall not be considered an Event of Default hereunder if such event is cured within
forty-five (45) days of the occurrence of such event. 
 4.2. Remedies. At any time and from time to time after Lender becomes
aware of the occurrence of any Event of Default that is continuing, Lender may accelerate this Note by written notice to Borrower, with the Outstanding Balance becoming immediately due and payable in cash at the Mandatory Default Amount.
Notwithstanding the foregoing, at any time following the occurrence of any Event of Default, Lender may, at its option, elect to increase the Outstanding Balance by applying the Default Effect (subject to the limitation set forth below) via written
notice to Borrower without accelerating the Outstanding Balance, in which event the Outstanding Balance shall be increased as of the date of the occurrence of the applicable Event of Default pursuant to the Default Effect, but the Outstanding
Balance shall not be immediately due and payable unless so declared by Lender (for the avoidance of doubt, if Lender elects to apply the Default Effect pursuant to this sentence, it shall reserve the right to declare the Outstanding Balance
immediately due and payable at any time and no such election by Lender shall be deemed to be a waiver of its right to declare the Outstanding Balance immediately due and payable as set forth herein unless otherwise agreed to by Lender in writing).
Notwithstanding the foregoing, upon the occurrence of any Event of Default described in clauses (c), (d), (e), (f), or (g) of Section 4.1, the Outstanding Balance as of the date of acceleration shall become immediately and automatically
due and payable in cash at the Mandatory Default Amount, without any written notice required by Lender. At any time following the occurrence of any Event of Default, upon written notice given by Lender to Borrower, interest shall accrue on the
Outstanding Balance beginning on the date the applicable Event of Default occurred at an interest rate equal to the lesser of 22% per annum or the maximum rate permitted under applicable law (“Default Interest”). For the avoidance
of 

  
 3 

 
doubt, Lender may continue making Lender Conversions and Redemption Conversions (as defined below) at any time following an Event of Default until such time as the Outstanding Balance is paid in
full. Borrower further acknowledges and agrees that Lender may continue making Conversions following the entry of any judgment or arbitration award in favor of Lender until such time that the entire judgment amount or arbitration award is paid in
full. Borrower agrees that any judgment or arbitration award will, by its terms, be made convertible into Common Stock. Borrower and Lender agree and stipulate that any judgment or arbitration award entered against Borrower shall be reduced by
$1,000.00 and such $1,000.00 shall become the new Outstanding Balance of this Note and this Note shall expressly survive such judgment or arbitration award. Additionally, following the occurrence of any Event of Default, Borrower may, at its option,
pay any Lender Conversion in cash instead of Lender Conversion Shares by paying to Lender on or before the applicable Delivery Date (as defined below) a cash amount equal to the number of Lender Conversion Shares set forth in the applicable Lender
Conversion Notice multiplied by the highest intra-day trading price of the Common Stock that occurs during the period beginning on the date the applicable Event of Default occurred and ending on the date of
the applicable Lender Conversion Notice. In connection with acceleration described herein, Lender need not provide, and Borrower hereby waives, any presentment, demand, protest or other notice of any kind, and Lender may immediately and without
expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such acceleration may be rescinded and annulled by Lender at any time prior to payment hereunder and
Lender shall have all rights as a holder of the Note until such time, if any, as Lender receives full payment pursuant to this Section 4.2. No such rescission or annulment shall affect any subsequent Event of Default or impair any right
consequent thereon. Nothing herein shall limit Lender’s right to pursue any other remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to
Borrower’s failure to timely deliver Conversion Shares upon Conversion of the Note as required pursuant to the terms hereof. 
 5.
Unconditional Obligation; No Offset. Borrower acknowledges that this Note is an unconditional, valid, binding and enforceable obligation of Borrower not subject to offset, deduction or counterclaim of any kind. Borrower hereby waives any
rights of offset it now has or may have hereafter against Lender, its successors and assigns, and agrees to make the payments or Conversions called for herein in accordance with the terms of this Note. 

6. Waiver. No waiver of any provision of this Note shall be effective unless it is in the form of a writing signed by the party
granting the waiver. No waiver of any provision or consent to any prohibited action shall constitute a waiver of any other provision or consent to any other prohibited action, whether or not similar. No waiver or consent shall constitute a
continuing waiver or consent or commit a party to provide a waiver or consent in the future except to the extent specifically set forth in writing. 

7. Adjustment of Lender Conversion Price upon Subdivision or Combination of Common Stock. Without limiting any provision hereof, if
Borrower at any time on or after the Effective Date subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Lender Conversion
Price in effect immediately prior to such subdivision will be proportionately reduced. Without limiting any provision hereof, if Borrower at any time on or after the Effective Date combines (by combination, reverse stock split or otherwise) one or
more classes of its outstanding shares of Common Stock into a smaller number of shares, the Lender Conversion Price in effect immediately prior to such combination will be proportionately increased. Any adjustment pursuant to this Section 7
shall become effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment under this Section 7 occurs during the period that a Lender Conversion Price is calculated hereunder, then the
calculation of such Lender Conversion Price shall be adjusted appropriately to reflect such event. 

  
 4 

 8. Borrower Redemptions. 

8.1. Redemption Conversion Price. Subject to the adjustments set forth herein, the conversion price for each Redemption Conversion (as
defined below) (the “Redemption Conversion Price”) shall be the lesser of (a) the Lender Conversion Price, and (b) the Market Price. 

8.2. Redemption Conversions. Beginning on the date that is six (6) months after the Purchase Price Date, Lender shall have the
right, exercisable at any time in its sole and absolute discretion, to redeem any portion of the Note up to the Maximum Monthly Redemption Amount (such amount, the “Redemption Amount”) by providing Borrower with a notice
substantially in the form attached hereto as Exhibit B (each, a “Redemption Notice”, and each date on which Lender delivers a Redemption Notice, a “Redemption Date”). For the avoidance of doubt, Lender may
submit to Borrower one (1) or more Redemption Notices in any given calendar month so long as the aggregate Redemption Amounts do not exceed the Maximum Monthly Redemption Amount. Payments of each Redemption Amount may be made (a) in cash,
or (b) by converting such Redemption Amount into shares of Common Stock (“Redemption Conversion Shares”, and together with the Lender Conversion Shares, the “Conversion Shares”) in accordance with this
Section 8 (each, a “Redemption Conversion”) per the following formula: the number of Redemption Conversion Shares equals the portion of the applicable Redemption Amount being converted divided by the Redemption Conversion
Price, or (c) by any combination of the foregoing, so long as the cash is delivered to Lender on the fifth (5th) Trading Day immediately following the applicable Redemption Date and the
Redemption Conversion Shares are delivered to Lender on or before the applicable Delivery Date. 
 8.3. Allocation of Redemption
Amounts. Following its receipt of a Redemption Notice, Borrower may either ratify Lender’s proposed allocation in the applicable Redemption Notice or elect to change the allocation by written notice to Lender by email or fax within
twenty-four (24) hours of its receipt of such Redemption Notice, so long as the sum of the cash payments and the amount of Redemption Conversions (calculated according to the applicable Redemption Conversion Price) equal the applicable
Redemption Amount. If Borrower fails to notify Lender of its election to change the allocation prior to the deadline set forth in the previous sentence, it shall be deemed to have ratified and accepted the allocation set forth in the applicable
Redemption Notice prepared by Lender. Borrower acknowledges and agrees that the amounts and calculations set forth thereon are subject to correction or adjustment because of error, mistake, or any adjustment resulting from an Event of Default or
other adjustment permitted under the Transaction Documents (an “Adjustment”). Furthermore, no error or mistake in the preparation of such notices, or failure to apply any Adjustment that could have been applied prior to the
preparation of a Redemption Notice may be deemed a waiver of Lender’s right to enforce the terms of any Note, even if such error, mistake, or failure to include an Adjustment arises from Lender’s own calculation. Borrower shall deliver the
Redemption Conversion Shares from any Redemption Conversion to Lender in accordance with Section 9 below on or before each applicable Delivery Date. If Borrower elects to pay a Redemption Amount in cash, such payment must be delivered on the
second Trading Day immediately following the Redemption Date. 
 9. Method of Conversion Share Delivery. On or before the close of
business on the fifth (5th) Trading Day following each Redemption Date or the fifth (5th) Trading Day following the date of delivery of a
Lender Conversion Notice, as applicable (the “Delivery Date”), Borrower shall, provided it is DWAC Eligible at such time, deliver or cause its transfer agent to deliver the applicable Conversion Shares electronically via DWAC to the
account designated by Lender in the applicable Lender Conversion Notice or Redemption Notice. If Borrower is not DWAC Eligible, it shall deliver to Lender or 

  
 5 

 
its broker (as designated in the Lender Conversion Notice or Redemption Notice, as applicable), via reputable overnight courier, a certificate representing the number of shares of Common Stock
equal to the number of Conversion Shares to which Lender shall be entitled, registered in the name of Lender or its designee. For the avoidance of doubt, Borrower has not met its obligation to deliver Conversion Shares by the Delivery Date unless
Lender or its broker, as applicable, has actually received the certificate representing the applicable Conversion Shares no later than the close of business on the relevant Delivery Date pursuant to the terms set forth above. Moreover, and
notwithstanding anything to the contrary herein or in any other Transaction Document, in the event Borrower or its transfer agent refuses to deliver any Conversion Shares to Lender on grounds that such issuance is in violation of Rule 144 under the
Securities Act of 1933, as amended (“Rule 144”), Borrower shall deliver or cause its transfer agent to deliver the applicable Conversion Shares to Lender with a restricted securities legend, but otherwise in accordance with the
provisions of this Section 9. In conjunction therewith, Borrower will also deliver to Lender a written explanation from its counsel or its transfer agent’s counsel explaining why the issuance of the applicable Conversion Shares violates
Rule 144.  
 10. Conversion Delays. If Borrower fails to deliver Conversion Shares in accordance with the timeframes stated
in Section 9, Lender, at any time prior to selling all of those Conversion Shares may rescind in whole or in part that particular Conversion attributable to the unsold Conversion Shares, with a corresponding increase to the Outstanding Balance
(any returned amount will tack back to the Purchase Price Date for purposes of determining the holding period under Rule 144). In addition, for each Conversion, in the event that Conversion Shares are not delivered by the sixth (6th) Trading Day (inclusive of the day of the Conversion), a late fee equal to 1.5% of the applicable Conversion Share Value rounded to the nearest multiple of $100.00 (but in any event the cumulative
amount of such late fees for each Conversion shall not exceed 200% of the applicable Conversion Share Value) will be assessed for each day beginning on the sixth (6th) Trading Day (inclusive of
the day of the Conversion) until Conversion Share delivery is made; and such late fee will be added to the Outstanding Balance (such fees, the “Conversion Delay Late Fees”). For illustration purposes only, if Lender delivers a
Conversion Notice to Borrower pursuant to which Borrower is required to deliver 100,000 Conversion Shares to Lender and on the Delivery Date such Conversion Shares have a Conversion Share Value of $20,000.00 (assuming a Closing Trade Price on the
Delivery Date of $0.20 per share of Common Stock), then in such event a Conversion Delay Late Fee in the amount of $300.00 per day ($20,000.00 multiplied by 1.5%, which is $300.00) would be added to the Outstanding Balance of the Note until such
Conversion Shares are delivered to Lender. For purposes of this example, if the Conversion Shares are delivered to Lender twenty (20) days after the applicable Delivery Date, the total Conversion Delay Late Fees that would be added to the
Outstanding Balance would be $6,000.00 (20 days multiplied by $300.00 per day). If the Conversion Shares are delivered to Lender one hundred and fifty (150) days after the applicable Delivery Date, the total Conversion Delay Late Fees that
would be added to the Outstanding Balance would be $40,000.00 (150 days multiplied by $300.00 per day, but capped at 200% of the Conversion Share Value).  

11. Ownership Limitation. Notwithstanding anything to the contrary contained in this Note or the other Transaction Documents, if at any
time Lender shall or would be issued shares of Common Stock under any of the Transaction Documents, but such issuance would cause Lender (together with its affiliates) to beneficially own a number of shares exceeding 4.99% of the number of shares of
Common Stock outstanding on such date (including for such purpose the shares of Common Stock issuable upon such issuance) (the “Maximum Percentage”), then Borrower shall not issue to Lender shares of Common Stock which would exceed
the Maximum Percentage. Lender agrees, upon request, to provide Borrower with the number of shares of Common Stock it owns at the time of any proposed Conversion hereunder. For purposes of this section, beneficial ownership of Common Stock will be
determined pursuant to Section 13(d) of the 1934 Act. The shares of Common Stock issuable to Lender that would cause the Maximum Percentage to be exceeded are referred to herein as the “Ownership Limitation 

  
 6 

 
Shares”. Borrower will reserve the Ownership Limitation Shares for the exclusive benefit of Lender. Lender shall notify Borrower in writing of the number of the Ownership Limitation
Shares that may be issued to Lender without causing Lender to exceed the Maximum Percentage. Upon receipt of such notice, Borrower shall be unconditionally obligated to immediately issue such designated shares to Lender, with a corresponding
reduction in the number of the Ownership Limitation Shares. Upon notice to Borrower from Lender the term “4.99%” above shall be replaced with “9.99%”. Notwithstanding any other provision contained herein, if the term
“4.99%” is replaced with “9.99%” pursuant to the preceding sentence, such increase to “9.99%” shall remain at 9.99% until increased, decreased or waived by Lender as set forth below. By written notice to Borrower,
Lender may increase, decrease or waive the Maximum Percentage as to itself but any such waiver will not be effective until the 61st day after delivery thereof. The foregoing 61-day notice requirement is
enforceable, unconditional and non-waivable and shall apply to all affiliates and assigns of Lender. 

12. Payment of Collection Costs. If this Note is placed in the hands of an attorney for collection or enforcement prior to commencing
arbitration or legal proceedings, or is collected or enforced through any arbitration or legal proceeding, or Lender otherwise takes action to collect amounts due under this Note or to enforce the provisions of this Note, then Borrower shall pay the
costs incurred by Lender for such collection, enforcement or action including, without limitation, attorneys’ fees and disbursements. Borrower also agrees to pay for any costs, fees or charges of its transfer agent that are charged to Lender
pursuant to any Conversion or issuance of shares pursuant to this Note. 
 13. Opinion of Counsel. In the event that an opinion of
counsel is needed for any matter related to this Note, Lender has the right to have any such opinion provided by its counsel; provided that such opinion shall be reasonably acceptable to Borrower. 

14. Governing Law; Venue. This Note shall be construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Note shall be governed by, the internal laws of the State of Utah, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Utah. The provisions set forth in the Purchase Agreement to determine the proper venue for any disputes are incorporated herein by this reference.

 15. Resolution of Disputes. 

15.1. Arbitration of Disputes. By its acceptance of this Note, each party agrees to be bound by the Arbitration Provisions (as defined
in the Purchase Agreement) set forth as an exhibit to the Purchase Agreement. 
 15.2. Calculation Disputes. Notwithstanding the
Arbitration Provisions, in the case of a dispute as to any Calculation (as defined in the Purchase Agreement), such dispute will be resolved in the manner set forth in the Purchase Agreement. 

16. Cancellation. After repayment or conversion of the entire Outstanding Balance, this Note shall be deemed paid in full, shall
automatically be deemed canceled, and shall not be reissued. 
 17. Amendments. The prior written consent of both parties hereto
shall be required for any change or amendment to this Note. 

  
 7 

 18. Assignments. Borrower may not assign this Note without the prior written consent
of Lender. This Note and any shares of Common Stock issued upon conversion of this Note may be offered, sold, assigned or transferred by Lender without the consent of Borrower. 

19. Time is of the Essence. Time is expressly made of the essence with respect to each and every provision of this Note and the
documents and instruments entered into in connection herewith. 
 20. Notices. Whenever notice is required to be given under this
Note, unless otherwise provided herein, such notice shall be given in accordance with the subsection of the Purchase Agreement titled “Notices.” 

21. Liquidated Damages. Lender and Borrower agree that in the event Borrower fails to comply with any of the terms or provisions of
this Note, Lender’s damages would be uncertain and difficult (if not impossible) to accurately estimate because of the parties’ inability to predict future interest rates, future share prices, future trading volumes and other relevant
factors. Accordingly, Lender and Borrower agree that any fees, balance adjustments, Default Interest or other charges assessed under this Note are not penalties but instead are intended by the parties to be, and shall be deemed, liquidated damages
(under Lender’s and Borrower’s expectations that any such liquidated damages will, if allowed under applicable law, tack back to the Purchase Price Date for purposes of determining the holding period under Rule 144). 

22. Waiver of Jury Trial. EACH OF LENDER AND BORROWER IRREVOCABLY WAIVES ANY AND ALL RIGHTS SUCH PARTY MAY HAVE TO DEMAND THAT ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS NOTE OR THE RELATIONSHIPS OF THE PARTIES HERETO BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY
APPLICABLE STATUTE, LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT SUCH PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING SUCH PARTY’S RIGHT TO DEMAND TRIAL BY JURY. 

23. Voluntary Agreement. Borrower has carefully read this Note and has asked any questions needed for Borrower to understand the terms,
consequences and binding effect of this Note and fully understand them. Borrower has had the opportunity to seek the advice of an attorney of Borrower’s choosing, or has waived the right to do so, and is executing this Note voluntarily and
without any duress or undue influence by Lender or anyone else. 
 24. Severability. If any part of this Note is construed to be in
violation of any law, such part shall be modified to achieve the objective of Borrower and Lender to the fullest extent permitted by law and the balance of this Note shall remain in full force and effect. 

[Remainder of page intentionally left blank; signature page follows] 

  
 8 

 IN WITNESS WHEREOF, Borrower has caused this Note to be duly executed as of the Effective
Date and as amended on November 15, 2018. 
  

			
	BORROWER:
	
	CYTODYN INC.
		
	By:	 	 /s/ Michael Mulholland

	Name:	 	 Michael Mulholland

	Title:	 	 Chief Financial Officer

  

							
	ACKNOWLEDGED, ACCEPTED AND AGREED:
				
	LENDER:	 		 		 	
	
	ILIAD RESEARCH AND TRADING, L.P.

							
		
	By:	 	 Iliad Management, LLC, its General Partner

							
			
		 	   By:	 	Fife Trading, Inc., its Manager

							
			
		 	      By:	 	 /s/ John M. Fife

		 		 	John M. Fife, President

 [Signature Page to Convertible Promissory Note] 

 ATTACHMENT 1 

DEFINITIONS 
 For purposes
of this Note, the following terms shall have the following meanings: 
 A1. “Conversion Share Value” means the product of
the number of Conversion Shares deliverable pursuant to any Conversion multiplied by the closing trade price of the Common Stock on the Delivery Date for such Conversion, in connection with the determination of Conversion Delay Late Fees. 

A2. “Conversion” means a Lender Conversion under Section 3 or a Redemption Conversion under Section 8. 

A3. “Conversion Factor” means 85%. 

A4. “Default Effect” means multiplying the Outstanding Balance as of the date the applicable Event of Default occurred by 15%
for the first Event of Default, and then adding the resulting product to the Outstanding Balance as of the date the applicable Event of Default occurred, with the sum of the foregoing then becoming the Outstanding Balance under this Note as of the
date the applicable Event of Default occurred. 
 A5. “DTC” means the Depository Trust Company or any successor thereto.

 A6. “DTC Eligible” means, with respect to the Common Stock, that such Common Stock is eligible to be deposited in
certificate form at the DTC, cleared and converted into electronic shares by the DTC and held in the name of the clearing firm servicing Lender’s brokerage firm for the benefit of Lender. 

A7. “DTC/FAST Program” means the DTC’s Fast Automated Securities Transfer program. 

A8. “DWAC” means the DTC’s Deposit/Withdrawal at Custodian system. 

A9. “DWAC Eligible” means that (a) Borrower’s Common Stock is eligible at DTC for full services pursuant to
DTC’s operational arrangements, including without limitation transfer through DTC’s DWAC system; (b) Borrower has been approved (without revocation) by DTC’s underwriting department; (c) Borrower’s transfer agent is
approved as an agent in the DTC/FAST Program; (d) the Conversion Shares are otherwise eligible for delivery via DWAC; (e) Borrower has previously delivered all Conversion Shares to Lender via DWAC; and (f) Borrower’s transfer agent
does not have a policy prohibiting or limiting delivery of the Conversion Shares via DWAC. 
 A10. “Fundamental
Transaction” means that (a) (i) Borrower or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, consolidate or merge with or into (whether or not Borrower or any of its subsidiaries is the
surviving corporation) any other person or entity, or (ii) Borrower or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, sell, lease, license, assign, transfer, convey or otherwise dispose of all or
substantially all of its respective properties or assets to any other person or entity, or (iii) Borrower or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, allow any other person or entity to make a
purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of voting stock of Borrower (not including any shares of voting stock of Borrower held by the person or persons making or party to, or
associated or affiliated with the persons or entities making or party to, such purchase, tender or exchange offer), or (iv) Borrower or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, consummate a
stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other person or entity whereby
such other person or entity acquires more than 50% of the outstanding shares of voting stock of Borrower (not including any shares of voting stock of Borrower held by the other persons or entities making or party to, or associated or affiliated with
the other persons or entities making or party to, such stock or share purchase agreement or other business combination), or (v) Borrower or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, reorganize,
recapitalize or reclassify the Common Stock, other than an increase in the number of authorized shares of Borrower’s Common Stock or pursuant to a reverse stock split approved by its stockholders, or (b) any “person” or
“group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations promulgated thereunder) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding voting stock of Borrower. 

  
 Attachment 1 to
Convertible Promissory Note, Page 1 

 A11. “Mandatory Default Amount” means the Outstanding Balance following the
application of the Default Effect. 
 A12. “Market Price” means the Conversion Factor multiplied by the lowest closing bid
price of the Common Stock during the twenty (20) Trading Days immediately preceding the applicable Conversion. 
 A13. “Maximum
Monthly Redemption Amount” means $350,000.00, which is the maximum aggregate Redemption Amount that may be redeemed in any calendar month. 

A14. “OID” means an original issue discount. 

A15. “Other Agreements” means, collectively, (a) all existing and future agreements and instruments between, among or by
Borrower (or an affiliate), on the one hand, and Lender (or an affiliate), on the other hand, and (b) any financing agreement or a material agreement that affects Borrower’s ongoing business operations. 

A16. “Outstanding Balance” means as of any date of determination, the Purchase Price, as reduced or increased, as the case
may be, pursuant to the terms hereof for payment, Conversion, offset, or otherwise, plus the OID, the Transaction Expense Amount, accrued but unpaid interest, collection and enforcements costs (including attorneys’ fees) incurred by Lender,
transfer, stamp, issuance and similar taxes and fees related to Conversions, and any other fees or charges (including without limitation Conversion Delay Late Fees) incurred under this Note. 

A17. “Purchase Price Date” means the date the Purchase Price is delivered by Lender to Borrower. 

A18. “Trading Day” means any day on which the New York Stock Exchange is open for trading. 

 

  
 Attachment 1 to
Convertible Promissory Note, Page 2 

 EXHIBIT A 

Iliad Research and Trading, L.P. 

303 East Wacker Drive, Suite 1040 

Chicago, Illinois 60601 
  

			
	CytoDyn Inc.	  	Date:                    
	 Attn: Nader Z. Pourhassan, CEO
 1111 Main
Street, Suite 660
	  	
	Vancouver, Washington 98660	  	

 LENDER CONVERSION NOTICE 

The above-captioned Lender hereby gives notice to CytoDyn Inc., a Delaware corporation (the “Borrower”), pursuant to that certain Convertible
Promissory Note made by Borrower in favor of Lender on June 26, 2018 (the “Note”), that Lender elects to convert the portion of the Note balance set forth below into fully paid and
non-assessable shares of Common Stock of Borrower as of the date of conversion specified below. Said conversion shall be based on the Lender Conversion Price set forth below. In the event of a conflict between
this Lender Conversion Notice and the Note, the Note shall govern, or, in the alternative, at the election of Lender in its sole discretion, Lender may provide a new form of Lender Conversion Notice to conform to the Note. Capitalized terms used in
this notice without definition shall have the meanings given to them in the Note. 
  

	 	A.	 Date of Conversion:
                                   

 

	 	B.	 Lender Conversion
#:                                 

 

	 	C.	 Conversion Amount:
                                  

 

	 	D.	 Lender Conversion Price:
                                 

 

	 	E.	 Lender Conversion Shares:
                                 (C divided by D) 

 

	 	F.	 Remaining Outstanding Balance of Note:
                        * 

  

	*	 Subject to adjustments for corrections, defaults, interest and other adjustments permitted by the Transaction
Documents (as defined in the Purchase Agreement), the terms of which shall control in the event of any dispute between the terms of this Lender Conversion Notice and such Transaction Documents. 

 

					
	Please transfer the Lender Conversion Shares electronically (via DWAC) to the following account:
			
	Broker:                                     
                 	 	Address:	 	  

	DTC#:                                     
                  	 		 	  

	Account
#:                                        
          	 		 	  

	Account
Name:                                        
 	 		 	

 To the extent the Lender Conversion Shares are not able to be delivered to Lender electronically via the DWAC
system, deliver all such certificated shares to Lender via reputable overnight courier after receipt of this Lender Conversion Notice (by facsimile transmission or otherwise) to: 

 

					
		  	  
	  	
		  	  
	  	
		  	  
	  	

  
 Exhibit A to Convertible
Promissory Note, Page 1 

 Sincerely, 

Lender: 
 ILIAD RESEARCH
AND TRADING, L.P. 
  

							
	By:	 	Iliad Management, LLC, its General Partner
			
		 	By:	 	Fife Trading, Inc., its Manager
				
		 		 	By:	 	  

		 		 		 	John M. Fife, President

  
 Exhibit A to Convertible
Promissory Note, Page 2 

 EXHIBIT B 

Iliad Research and Trading, L.P. 

303 East Wacker Drive, Suite 1040 

Chicago, Illinois 60601 
  

			
	 CytoDyn Inc.
	  	Date:                        
	 Attn: Nader Z. Pourhassan, CEO

1111 Main Street, Suite 660
	  	
	 Vancouver, Washington 98660
	  	

 REDEMPTION NOTICE 

The above-captioned Lender hereby gives notice to CytoDyn Inc., a Delaware corporation (the “Borrower”), pursuant to that certain Convertible
Promissory Note made by Borrower in favor of Lender on June 26, 2018 (the “Note”), that Lender elects to redeem a portion of the Note in Redemption Conversion Shares or in cash as set forth below. In the event of a conflict
between this Redemption Notice and the Note, the Note shall govern, or, in the alternative, at the election of Lender in its sole discretion, Lender may provide a new form of Redemption Notice to conform to the Note. Capitalized terms used in this
notice without definition shall have the meanings given to them in the Note. 
 REDEMPTION INFORMATION 

 

	 	A.	 Redemption Date:
                    , 201     

 

	 	B.	 Redemption Amount:
                         

  

	 	C.	 Portion of Redemption Amount to be Paid in Cash:
                         

  

	 	D.	 Portion of Redemption Amount to be Converted into Common Stock:
                         (B minus C) 

 

	 	E.	 Redemption Conversion Price:
                         (lower of (i) Lender Conversion Price in effect and (ii) Market Price as of Redemption
Date) 

  

	 	F.	 Redemption Conversion Shares:
                         (D divided by E) 

 

	 	G.	 Remaining Outstanding Balance of Note:
                         * 

  

	*	 Subject to adjustments for corrections, defaults, interest and other adjustments permitted by the Transaction
Documents (as defined in the Purchase Agreement), the terms of which shall control in the event of any dispute between the terms of this Redemption Notice and such Transaction Documents. 

Sincerely, 
 Lender: 

ILIAD RESEARCH AND TRADING, L.P. 

 

							
	By:	 	Iliad Management, LLC, its General Partner
			
		 	By:	 	Fife Trading, Inc., its Manager
				
		 		 	By:	 	  

		 		 		 	John M. Fife, President

  
 Exhibit B to Convertible
Promissory Note, Page 1

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