Document:

Exhibit 10.1

 

AMENDMENT NO. 2

TO

FIFTH AMENDED AND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP

OF

QUALITYTECH, LP

 

THIS AMENDMENT NO. 2 TO FIFTH AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP (this “Amendment”), dated as of June 25, 2018, is entered into by QTS Realty Trust, Inc., a Maryland corporation, as the general partner (the “Company”) of QualityTech, LP, a Delaware limited partnership (the “Partnership”), pursuant to the authority granted to the Company in the Fifth Amended and Restated Agreement of Limited Partnership of QualityTech, LP, dated as of October 15, 2013 (the “Partnership Agreement”), for the purpose of classifying, designating, establishing and issuing additional Partnership Units in the form of Series B Preferred Partnership Units (as defined below).  Capitalized terms used and not defined herein shall have the meanings set forth in the Partnership Agreement.

 

WHEREAS, a Pricing Committee of the Board of Directors (the “Board”) of the Company, acting pursuant to authorization from the Board, duly adopted, by unanimous written consent on June 20, 2018 classifying and designating 3,162,500 shares of Preferred Stock (as defined in the Articles of Amendment and Restatement of the Company (the “Charter”)) as Series B Preferred Stock (as defined below);

 

WHEREAS, in connection with the classification by the Pricing Committee, the Company filed the Series B Articles Supplementary (as defined below) to the Charter with the State Department of Assessments and Taxation of Maryland, effective on June 22, 2018, establishing the Series B Preferred Stock, with such preferences, rights, powers, restrictions, limitations as to distributions, qualifications and terms and conditions of redemption as described in the Series B Articles Supplementary;

 

WHEREAS, on June 25, 2018, the Company issued 3,162,500 shares of the Series B Preferred Stock; and

 

WHEREAS, the Company has determined that, in connection with the issuance of the Series B Preferred Stock, it is necessary and desirable to amend the Partnership Agreement to create additional Partnership Units in the form of Series B Preferred Partnership Units (as defined below) having such preferences, rights, powers, restrictions, limitations as to distributions, qualifications and terms and conditions of redemption which are substantially the same as the economic rights of the Series B Preferred Stock.

 

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the Company hereby amends the Partnership Agreement as follows:

 

Section 1.  Article 1 of the Partnership Agreement is hereby amended to add the following definitions:

 

“Series B Articles Supplementary” shall mean the Articles Supplementary Establishing and Fixing the Rights and Preferences of a Series of Preferred Stock, designating the rights and preferences of the 6.50% Series B Cumulative Convertible Perpetual Preferred Stock, filed as part 

 

 

of the Company’s Charter with the State Department of Assessments and Taxation of Maryland, effective on June 22, 2018.

 

“Series B Preferred Partnership Interests” shall mean an ownership interest in the Partnership evidenced by the Series B Preferred Partnership Units, having a preference in payment of distributions or on liquidation as set forth in this Amendment.

 

“Series B Preferred Partnership Units” shall mean the series of Preferred Partnership Units established pursuant to this Amendment, representing a fractional, undivided share of the Series B Preferred Partnership Interests of all Partners issued under the Partnership Agreement.

 

“Series B Preferred Stock” shall mean the 6.50% Series B Cumulative Convertible Perpetual Preferred Stock of the Company, with such preferences, rights, voting powers, restrictions, limitations as to distributions, qualifications and terms and conditions of redemption as described in the Series B Articles Supplementary.

 

Section 2.  In accordance with Section 4.2 of the Partnership Agreement, set forth in Exhibit K hereto are the terms and conditions of the Series B Preferred Partnership Units hereby classified, designated, established and issued to the Company in consideration of its contribution to the Partnership of the proceeds of the issuance and sale of the Series B Preferred Stock by the Company.  The Partnership Agreement hereby is amended to incorporate such Exhibit as Exhibit K thereto to reflect the issuance of the Series B Preferred Partnership Units.

 

Section 3.  Except as modified herein, all terms and conditions of the Partnership Agreement shall remain in full force and effect, which terms and conditions the Company hereby ratifies and confirms.

 

Section 4.  This Amendment shall be construed and enforced in accordance with and governed by the laws of the State of Delaware, without regard to conflicts of law.

 

Section 5.  If any provision of this Amendment is or becomes invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby.

 

[Remainder of page intentionally left blank, signature page follows.]

 

2

 

IN WITNESS WHEREOF, the undersigned has executed this Second Amendment to the Fifth Amended and Restated Partnership Agreement of QualityTech, LP as of the date first set forth above.

 

	
 
    	
GENERAL PARTNER: 
    
	
 
    	
 
    
	
 
    	
QTS Realty   Trust, Inc.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Shirley E. Goza
    
	
 
    	
 
    	
Shirley E. Goza
    
	
 
    	
 
    	
Secretary and General   Counsel
    

 

[Signature Page to Amendment No. 2 to the Fifth Amended and Restated Agreement

of Limited Partnership of QualityTech LP]

 

 

EXHIBIT K

DESIGNATION OF TERMS AND CONDITIONS OF

SERIES B PREFERRED PARTNERSHIP UNITS

 

(1)                                 Designation and Number.  A series of Preferred Partnership Units, designated as Series B Preferred Partnership Units, is hereby established.  The number of Series B Preferred Partnership Units shall be 3,162,500.

 

(2)                                 Rank.  The Series B Preferred Partnership Units will, with respect to rights to receive distributions and to participate in distributions or payments upon liquidation, dissolution or winding up of the Partnership, rank (a) senior to the Common Partnership Units and any other Partnership Units of the Partnership, now or hereafter issued and outstanding, the terms of which provide that such Partnership Units rank, as to distributions and upon liquidation, dissolution or winding up of the Partnership, junior to such Series B Preferred Partnership Units (“Junior Units”), (b) on parity with the Company’s outstanding 7.125% Series A Cumulative Redeemable Perpetual Preferred Partnership Units and any other Partnership Units of the Partnership that the Company may authorize or issue in the future that, pursuant to the terms thereof, rank on parity with the Series B Preferred Partnership Units with respect to the payment of dividends and the distributions of assets in the event of liquidation, dissolution or winding up of the Partnership (“Parity Units”); and (c) junior to all Partnership Units of the Partnership  that the Company may authorize or issue in the future, that pursuant to the terms thereof, rank senior to the Series B Preferred Partnership Units with respect to the payment of dividends and the distribution of assets in the event of the liquidation, dissolution or winding up of the Partnership (“Senior Units”).

 

(3)                                 Distributions.

 

(a)                                 Subject to the rights of holders of any Preferred Partnership Units ranking senior to the Series B Preferred Partnership Units as to the payment of distributions, the Company, in its capacity as the holder of the then outstanding Series B Preferred Partnership Units, shall be entitled to receive, when, as and if authorized by the Company, out of funds legally available for payment of distributions, cumulative cash distributions at the rate of 6.50% per annum of the $100.00 liquidation preference of each Series B Preferred Partnership Unit (equivalent to $6.50 per annum per Series B Preferred Partnership Unit).

 

(b)                                 Distributions on each outstanding Series B Preferred Partnership Unit shall be cumulative from and including June 25, 2018 (the “Original Issuance Date”)  and shall be payable (i) for the period from the Original Issuance Date to July 14, 2018, on July 15, 2018, and (ii) for each quarterly distribution period thereafter, quarterly in equal amounts in arrears on the 15th of each January, April, July and October, (each such day being hereinafter called a “Series B Distribution Payment Date”) at the then applicable annual rate; provided, however, that if any Series B Distribution Payment Date falls on any day other than a Business Day (as defined in the Series B Articles Supplementary), the distribution which would otherwise have been payable on such Series B Distribution Payment Date may be paid on the next succeeding Business Day with the same force and effect as if paid on such Series B Distribution Payment Date, and no interest or other sums shall accrue on the amount so payable from such Series B Distribution Payment Date to such next succeeding Business Day.  The period from and including the Original Issue Date but excluding July 15, 2018, and each subsequent period from and including April 15, 2018 or a Series B Distribution Payment Date, is hereafter called a “Distribution Period.”  Each distribution is payable to holders of record as they appear on the Partnership Unit records of the Partnership at the close of business on the record date, not exceeding 30 days  preceding the applicable Series B Distribution Payment Date, as shall be fixed by the Company.  Distributions shall accumulate from the Original Issue Date or the most recent Series B Distribution Payment

 

K-1

 

Date to which distribution have been paid, whether or not there shall be funds legally available for the payment of such distributions, whether the Partnership has earnings or whether such distributions are authorized.  No interest, or sum of money in lieu of interest, shall be payable in respect of any distribution payment or payments on the Series B Preferred Partnership Units that may be in arrears.  Holders of the Series B Preferred Partnership Units shall not be entitled to any distributions, whether payable in cash, property or stock, in excess of full cumulative distributions, as herein provided, on the Series B Preferred Partnership Units.  Distributions payable on the Series B Preferred Partnership Units for any period greater or less than a full Distribution Period will be computed on the basis of a 360-day year consisting of twelve 30-day months.  Distributions payable on the Series B Preferred Partnership Units for each full Distribution Period will be computed by dividing the applicable annual distribution rate by four.  After full cumulative distributions on the Series B Preferred Partnership Units have been paid or declared and funds therefor set aside for payment with respect to a Distribution Period, the holders of Series B Preferred Partnership Units will not be entitled to any further distributions with respect to that Distribution Period.

 

(c)                                  So long as any Series B Preferred Partnership Units are outstanding, no distributions, except as described in the immediately following sentence, shall be authorized and declared or paid or set apart for payment on any series or class or classes of Parity Units for any period unless full cumulative distributions have been declared and paid or are contemporaneously declared and paid or declared and a sum sufficient for the payment thereof set apart for such payment on the Series B Preferred Partnership Units for all prior Distribution Periods.  When distributions are not paid in full or a sum sufficient for such payment is not set apart, as aforesaid, all distributions authorized and declared upon the Series B Preferred Partnership Units and all distributions authorized and declared upon any other series or class or classes of Parity Units shall be authorized and declared ratably in proportion to the respective amounts of distributions accumulated and unpaid on the Series B Preferred Partnership Units and such Parity Units.

 

(d)                                 So long as any Series B Preferred Partnership Units are outstanding, no distributions (other than distributions paid solely in Junior Units of, or in options, warrants or rights to subscribe for or purchase, Junior Units) shall be authorized and declared or paid or set apart for payment or other distribution authorized and declared or made upon Junior Units, nor shall any Junior Units be redeemed, purchased or otherwise acquired (other than a redemption, purchase or other acquisition of Partnership Units made for purposes of and in compliance with requirements of an employee incentive or benefit plan of the Company or any subsidiary, or a conversion into or exchange for Junior Units or redemptions for the purpose of preserving the Company’s qualification as a REIT (as defined in the Charter), or redemptions of Partnership Units pursuant to Article 8 of the Partnership Agreement), for any consideration (or any monies to be paid to or made available for a sinking fund for the redemption of any such units) by the Partnership, directly or indirectly (except by conversion into or exchange for Junior Units), unless in each case full cumulative distributions on all outstanding shares of Series B Preferred Partnership Units and any Parity Units at the time such distributions are payable shall have been paid or set apart for payment for all past Distribution Periods with respect to the Series B Preferred Partnership Units and all past distribution periods with respect to such Parity Units.

 

(e)                                  Any distribution payment made on the Series B Preferred Partnership Units shall first be credited against the earliest accrued but unpaid distribution due with respect to such Units which remains payable.

 

(f)                                   Except as provided herein, the Series B Preferred Partnership Units shall not be entitled to participate in the earnings or assets of the Partnership.

 

K-2

 

(g)                                  As used herein, the term “Business Day” shall mean any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions in New York, New York are authorized or required by law, regulation or executive order to close.

 

(h)                                 As used herein, the term “distribution” does not include distributions payable solely in Junior Units on Junior Units, or in options, warrants or rights to holders of Junior Units to subscribe for or purchase any Junior Units.

 

(4)                                 Liquidation Preference.

 

(a)                                 In the event of any liquidation, dissolution or winding up of the Partnership, whether voluntary or involuntary, before any payment or distribution of the assets of the Partnership shall be made to or set apart for the holders of Junior Units, the holders of the Series B Preferred Partnership Units shall be entitled to receive $100.00 per Unit (the “Liquidation Preference”) plus an amount per Unit equal to all distributions (whether or not earned or declared) accumulated and unpaid thereon to, but not including, the date of final distribution to such holders; but such holders of the Series B Preferred Partnership Units shall not be entitled to any further payment.  If, upon any such liquidation, dissolution or winding up of the Partnership, the assets of the Partnership, or proceeds thereof, distributable among the holders of the Series B Preferred Partnership Units shall be insufficient to pay in full the preferential amount aforesaid and liquidating payments on any other Parity Units, then such assets, or the proceeds thereof, shall be distributed among the holders of such Series B Preferred Partnership Units and any such other Parity Units ratably in accordance with the respective amounts that would be payable on such Series B Preferred Partnership Units and any such other Parity Units if all amounts payable thereon were paid in full.  For the purposes of this Section 4, none of (i) a consolidation or merger of the Partnership with one or more entities, (ii) a statutory Unit exchange or (iii) a sale or transfer of all or substantially all of the Partnership’s assets shall be deemed to be a liquidation, dissolution or winding up, voluntary or involuntary, of the Partnership.

 

(b)                                 Until payment shall have been made in full to the holders of Series B Preferred Partnership Units, as provided in this Section 4, and to the holders of Parity Units, subject to any terms and provisions applying thereto, no payment will be made to any holder of Junior Units, upon the liquidation, dissolution or winding up of the Partnership.  Subject to the rights of the holders of Parity Units, upon any liquidation, dissolution or winding up of the Partnership, after payment shall have been made in full to the holders of the Series B Preferred Partnership Units, as provided in this Section 4, any series or class or classes of Junior Units shall be entitled to receive, subject to any respective terms and provisions applying thereto, any and all assets remaining to be paid or distributed, and the holders of the Series B Preferred Partnership Units shall not be entitled to share therein.

 

(5)                                 Redemption.  In connection with the redemption by the Company of any shares of Series B Preferred Stock in accordance with the provisions of the Series B Articles Supplementary, the Partnership shall provide cash to the Company for such purpose which shall be equal to the redemption price (as set forth in the Series B Articles Supplementary), plus any and all accumulated and unpaid dividends on the Series B Preferred Stock (whether or not declared), to, but not including, the redemption date, and one Series B Preferred Partnership Unit shall be concurrently redeemed with respect to each share of Series B Preferred Stock so redeemed by the Company.  From and after the applicable redemption date, the Series B Preferred Partnership Units so redeemed shall no longer be outstanding and all rights hereunder, to distributions or otherwise, with respect to such Series B Preferred Partnership Units shall cease.  Any Series B Preferred Partnership Units so redeemed may be reissued to the Company at such time as the Company issues or reissues a corresponding number of shares of Series B

 

K-3

 

Preferred Stock, in exchange for the contribution by the Company to the Partnership of the proceeds from such reissuance.

 

(6)                                 Voting Rights.  Except as required by applicable law or the Partnership Agreement, the holder of the Series B Preferred Partnership Units, as such, shall have no voting rights.

 

(7)                                 Conversion.  The Series B Preferred Partnership Units are not convertible into or exchangeable for any other property or securities of the Partnership, except as provided herein.

 

(a)                                 In the event of a conversion of any Series B Preferred Stock into Class A common stock of the Company, par value $0.01 per share (“Common Stock”), in accordance with the Series B Articles Supplementary, upon conversion of such Series B Preferred Stock, the Partnership shall convert an equal whole number of the Series B Preferred Partnership Units into Common Partnership Units as such shares of Series B Preferred Stock are converted into shares of Common Stock.  In the event of a conversion of any Series B Preferred Stock into consideration other than Common Stock in accordance with the Series B Articles Supplementary, the Partnership shall retire a number of Series B Preferred Partnership Units equal to the number of shares of Series B Preferred Stock converted into such other form of consideration.  In the event of a conversion of the Series B Preferred Stock into Common Stock, to the extent the Company is required to pay cash in lieu of fractional shares of Common Stock pursuant to the Series B Articles Supplementary in connection with such conversion, the Partnership shall distribute an equal amount of cash to the Company.

 

(b)                                 Following any such conversion retirement by the Partnership pursuant to this Section 7, the Company shall make such revisions to the Partnership Agreement as it determines are necessary to reflect such conversion.

 

(8)                                 Restriction on Ownership.  The Series B Preferred Partnership Units shall be owned and held solely by the Company.

 

(9)                                 Allocations.  Allocations of the Partnership’s items of income, gain, loss and deduction shall be allocated pro rata among holders of Series B Preferred Partnership Units in accordance with Article VI of the Partnership Agreement.

 

* * *

 

K-4EX-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
Conversion 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. 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 “Conversion”) all or any part of the Outstanding Balance into shares (“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 Conversion Shares equals the amount being converted (the
“Conversion Amount”) divided by the Conversion Price (as defined below). Conversion notices in the form attached hereto as Exhibit A (each, a “Conversion Notice”) may be effectively delivered to Borrower by
facsimile, email, mail, overnight courier, or personal delivery and all Conversions shall be cashless and not require further payment from Lender. Borrower shall deliver the Conversion Shares from any Conversion to Lender in accordance with
Section 9 below. 
 3.2. 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 “Conversion Price”). 

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 Conversion Shares in accordance with the terms 

  
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hereof; (c) 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; (d) 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;
(e) Borrower makes a general assignment for the benefit of creditors; (f) Borrower files a petition for relief under any bankruptcy, insolvency or similar law (domestic or foreign); (g) an involuntary bankruptcy proceeding is commenced or
filed against Borrower; (h) 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; (i) 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; (j) 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; (k) Borrower fails in any material respect to maintain the Share Reserve as required under the Purchase Agreement;
(l) Borrower effectuates a reverse split of its Common Stock without ten (10) Trading Days prior written notice to Lender; (m) 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; (n); Borrower fails to observe or
perform, in any material respect, any covenant set forth in Section 4 of the Purchase Agreement; or (o) 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) – (o) 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 doubt, Lender may continue making Conversions 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

  
 3 

 
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
Conversion in cash instead of Conversion Shares by paying to Lender on or before the applicable Delivery Date (as defined below) a cash amount equal to the number of Conversion Shares set forth in the applicable 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 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 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 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 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 Conversion Price is calculated hereunder, then the calculation of such Conversion
Price shall be adjusted appropriately to reflect such event. 

  
 4 

 8. Redemptions. 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”). Payment of each
Redemption Amount must be made in cash by the fifth (5th) Trading Day following each Redemption Date. 

9. Method of Conversion Share Delivery. On or before the close of business on the fifth
(5th) Trading Day following the date of delivery of a Conversion Notice (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 Conversion Notice. If Borrower is not DWAC Eligible, it shall deliver to Lender or its broker (as
designated in the Conversion Notice), 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
after 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). 

  
 5 

 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 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. 

  
 6 

 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. 
 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. 

  
 7 

 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.

  

			
	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 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. “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. 
 A3. “DTC” means the Depository Trust Company or any successor thereto.

 A4. “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. 

A5. “DTC/FAST Program” means the DTC’s Fast Automated Securities Transfer program. 

A6. “DWAC” means the DTC’s Deposit/Withdrawal at Custodian system. 

A7. “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. 
 A8. “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. 

A9. “Mandatory Default Amount” means the Outstanding Balance following the application of the Default Effect. 

A10. “Maximum Monthly Redemption Amount” means $350,000.00, which is the maximum aggregate Redemption Amount that may be
redeemed in any calendar month. 

  
 Attachment 1 to
Convertible Promissory Note, Page 1 

 A11. “OID” means an original issue discount. 

A12. “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. 

A13. “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. 

A14. “Purchase Price Date” means the date the Purchase Price is delivered by Lender to Borrower. 

A15. “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	  	

 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 Conversion Price set forth below. In the event of a conflict between this
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 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.	Conversion #:                          

	 	C.	Conversion Amount:                          

	 	D.	Conversion Price:                          

	 	E.	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 Conversion Notice and such Transaction Documents. 

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

									
	Broker:	 	  
	 		 	Address:	 	  

	DTC#:	 	  
	 		 		 	  

	Account #:	 	  
	 		 		 	  

	Account Name:	 	  
	 		 		 	

 To the extent the 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 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 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 to be Paid in Cash:                          

	 	C.	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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