pursuant to Rule 424(b)(3)
Registration No. 333-272815
SUPPLEMENT NO. 3
Prospectus dated October 11, 2023)
to 205,652,848 Shares of Common Stock
prospectus supplement updates, amends and supplements the prospectus dated October 11, 2023, relating to our Registration Statement
on Form S-1 (Registration No. 333-272815) (as supplemented or amended from time to time, the “Prospectus”). Capitalized
terms used in this prospectus supplement and not otherwise defined herein have the meanings specified in the Prospectus.
prospectus supplement is being filed to update, amend and supplement the information included in the Prospectus with the information
contained in our Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on November 21, 2023, which
is set forth below.
prospectus supplement is not complete without the Prospectus. This prospectus supplement should be read in conjunction with the Prospectus,
which is to be delivered with this prospectus supplement, and is qualified by reference thereto, except to the extent that the information
in this prospectus supplement updates or supersedes the information contained in the Prospectus. Please keep this prospectus supplement
with your Prospectus for future reference. The Prospectus, together with this prospectus supplement, relates to the resale of up
to 74,903,789 shares of our common stock, par value $0.001 per share (the “common stock”), and 130,749,059 shares of our
common stock underlying certain warrants (collectively, the “Shares”), by the selling stockholders identified in the Prospectus
under “Selling Stockholders”.
common stock is quoted on the OTCQB of OTC Markets Group, Inc. under the symbol “CYDY.” On November 21, 2023, the
closing price of our common stock was $0.17 per share.
in our securities involves risk. You should carefully consider the risks that we have described under the section captioned “Risk
Factors” in the Prospectus on page 8 and in Part II, Item 1A of the 2024 First Quarter 10-Q before buying our
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined
if the Prospectus or this prospectus supplement is truthful or complete. Any representation to the contrary is a criminal offense.
date of this prospectus supplement is November 22, 2023.
AND EXCHANGE COMMISSION
to Section 13 or 15(d)
The Securities Exchange Act of 1934
of Report (Date of earliest event reported): November 17, 2023
name of registrant as specified in its charter)
|(State or other jurisdiction of
|(Commission File Number)
|(I.R.S. Employer Identification
Main Street, Suite 660
of principal executive offices, including zip code)
telephone number, including area code)
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
of each class
of each exchange on which registered
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
growth company ¨
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers.
(c) On November 17, 2023, CytoDyn Inc., a Delaware corporation (the “Company”), entered into an employment agreement
with. Jacob P. Lalezari, M.D. (the “Employment Agreement”), under which he will be employed as the Company’s interim
CEO on an at-will basis, effective November 17, 2023. Antonio Migliarese, who was appointed as interim President on May 18,
2023, ceased being interim President on November 17, 2023, but will continue in his roles of Chief Financial Officer and Treasurer,
as well as serving as the Company’s principal accounting officer.
age 64, has held a variety of positions in the biotechnology industry. He is currently serving as the CEO and Medical Director of Lalezari
Medical Corp., dba Quest Clinical Research (“Quest”), a company he founded in 1989. He has also served as a board member
and Medical Director of Siempre Unidos, a nonprofit that operates HIV and primary care treatment clinics in Honduras, since 2006, the
Chief Medical Officer of Virion Therapeutics, LLC, in 2018, and a board member and the Vice President of NP2, a non-profit pharmaceutical
company, since 2018. He previously served as the Company’s interim Chief Medical Officer and/or Chief Science Advisor from March 2020
to November 2020. Dr. Lalezari received his M.D. from the University of Pennsylvania, his M.A. from the University of Virginia,
and his B.A. from the University of Rochester. He also holds a board certification from the American Board of Internal Medicine.
are no family relationships, as defined in Item 401of Regulation S-K, between Dr. Lalezari and any of the Company’s other
executive officers or directors. Other than the Employment Agreement, there is no arrangement or understanding between Dr. Lalezari
and any other person pursuant to which he was appointed as interim CEO of the Company.
June 1, 2021, the Company has paid Quest approximately $1.5 million for its services in conducting clinical trials of leronlimab.
As of November 17, 2023, the outstanding balance owed by the Company to Quest was approximately $0.4 million.
copy of the Employment Agreement is attached as Exhibit 10.1 to this report. The Employment Agreement is effective as of November 17,
2023. Under the Employment Agreement, Dr. Lalezari will be entitled to receive the minimum salary required by law for an exempt
employee and health and welfare benefits provided under the Company’s benefit plans. The Employment Agreement does not provide
for the payment of cash bonus or equity compensation or severance benefits.
7.01 Regulation FD Disclosure.
November 21, 2023, the Company issued a press release announcing that Dr. Lalezari had been appointed as its interim CEO. A
copy of the press release is furnished as Exhibit 99.1 to this report.
9.01 Financial Statement and Exhibits.
Furnished, not filed.
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
November 21, 2023
EMPLOYMENT AGREEMENT (this “Agreement”) is effective November 17, 2023 (the “Effective Date”), by and between
CYTODYN INC., a Delaware corporation (the “Company”) and DR. JACOB P. LALEZARI (the “Executive”).
the Company wishes for the Executive to serve as Interim Chief Executive Officer of the Company, and the Executive has accepted such
employment on the terms and conditions set forth in this Agreement.
THEREFORE, in consideration of the promises and the mutual covenants and agreements contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:
TERM OF AGREEMENT
Section 1.1 Employment
and Acceptance . During the Term (as defined in Section 1.2), the Company shall employ the Executive, and the Executive shall
accept such employment and serve the Company, in each case, subject to the terms and conditions of this Agreement.
Section 1.2 Term.
The employment relationship hereunder shall be for the period (such period of the employment relationship shall be referred to herein
as the “Term”) commencing on the Effective Date and ending upon the termination of the Executive’s employment hereunder
by either party hereto pursuant to the terms of Section 4.1.
DUTIES AND OBLIGATIONS; LOCATION
Section 2.1 Title.
The Executive shall serve in the capacity of INTERIM CHIEF EXECUTIVE OFFICER (“Interim CEO”), as outlined below.
Section 2.2 Duties.
Subject to the direction and authority of the Board of Directors of the Company (the “Board”), the Executive shall have
direct responsibility for the Company’s business affairs and related needs, and will serve as the Principal Executive Officer (“PEO”)
of the Company. The Executive shall report to, and be subject to the lawful direction of the Board. The Executive agrees to perform to
the best of Executive’s ability, experience, and talent those acts and duties, as the Board shall from time to time direct. During
the Term, the Employee also shall serve in such other positions or capacities as may, from time to time, be reasonably directed by the
Board, including, without limitation (subject to election, appointment, re-election or re-appointment, as applicable) as (a) a
member of the Board and/or as a member of the board of directors or similar governing body of any of the Company’s subsidiaries
or other Affiliates (as defined below), (b) an officer of any of the Company’s subsidiaries or other Affiliates, and/or (c) a
member of any committee of the Company and/or any of its subsidiaries or other Affiliates, in each case, for no additional compensation.
As used in this Agreement, “Affiliate” of any individual or entity means any other individual or entity that directly or
indirectly controls, is controlled by, or is under common control with, the individual or entity.
Section 2.3 Compliance
with Policies, etc. During the Term, the Executive shall be bound by, and comply fully with, all of the Company’s policies
and procedures for officers, directors and/or employees in place from time to time, and as may be amended from time to time. These policies
and procedures include, among other things and without limitation, terms and conditions set forth in the Company’s Employee Handbook,
Code of Ethics and Business Conduct, Statement of Insider Trading Policy and Related Trading Procedures, and other policies, memoranda
and communications applicable to the Executives pertaining to procedures, rules, and regulations, as currently in effect (collectively,
the “Company Policies”).
Section 2.4 Time
Commitment. During the Term, the Executive shall use Executive’s best efforts to promote the interests of the Company (including
its subsidiaries and other Affiliates) and shall devote such of the Executive’s business time, ability and attention as is necessary
to the performance of Executive’s duties for the Company and shall not, directly or indirectly, render any services to any other
person or organization, whether for compensation or otherwise, except with the Board’s prior written consent, provided that the
foregoing shall not prevent the Executive from (i) participating in charitable, civic, educational, professional, community or industry
affairs, (ii) managing the Executive’s passive personal investments, or (iii) serving on the board of directors (or similar
governing bodies) of not more than two (2) other corporations (or other business entities) that are not competitors of the Company,
its subsidiaries or any of its other Affiliates (as determined by the Board), so long as, in each case, such activities individually
or in the aggregate do not materially interfere or conflict with the Executive’s duties hereunder or create a potential business
or fiduciary conflict (in each case, as determined by the Board).
Section 2.5 Location.
The Executive’s principal place of business for the performance of Executive’s duties under this Agreement shall be at the
principal executive offices of the Company (currently located in Vancouver, Washington), or as otherwise authorized by the Board. Notwithstanding
the foregoing, the Executive shall be required to travel, as mutually agreeable by Executive and Company, to perform Executive’s
AND BENEFITS; EXPENSES
Section 3.1 Compensation
and Benefits. For all services rendered by the Executive in any capacity during the Term (including, without limitation, serving
as an officer, director or member of any committee of the Company or any of its subsidiaries or other Affiliates), the Executive shall
be compensated (subject, in each case, to the provisions of ARTICLE 4 below), as determined by the Compensation Committee, as follows:
Salary. The Executive has elected to receive the minimum salary, as required by law, for the term of this Agreement. During
the Term, the Executive’s base salary (the “Base Salary”), and any adjustments thereto, is subject to approval by the
Compensation Committee of the Board (the “Compensation Committee”), and shall be subject to customary withholdings and authorized
deductions and be payable in equal installments in accordance with the Company’s customary payroll practices in place from time
to time. The Executive’s Base Salary shall be subject to periodic adjustments as determined by the Compensation Committee. As used
in this Agreement, the term “Base Salary” shall refer to Base Salary as may be adjusted from time to time.
Bonus. The Executive has elected to forego bonus compensation under this Agreement.
Compensation. The Executive has elected to forego equity compensation under this Agreement.
Plans. The Executive shall be entitled to participate in all employee benefit plans and programs (excluding severance plans, if any)
generally made available by the Company to senior leadership of the Company, to the extent permissible under the general terms and provisions
of such plans or programs and in accordance with the provisions thereof, and as otherwise required by applicable law. The Company may
amend, modify or rescind any employee benefit plan or program and/or change employee contribution amounts to benefit costs without notice
in its discretion.
Time Off. The Executive shall be entitled to paid time off in accordance with the Company’s policies in effect from time to
time for its senior management and as otherwise required by applicable law.
Section 3.2 Expense
Reimbursement. Subject to the requirements contained in Section 5.17, the Company shall reimburse the Executive during the Term,
in accordance with the Company’s expense reimbursement policies in place from time to time, for all reasonable out-of-pocket business
expenses incurred by the Executive in the performance of the Executive’s duties hereunder. In order to receive such reimbursement,
the Executive shall furnish to the Company documentary evidence of each such expense in the form required to comply with the Company’s
policies in place from time to time.
Section 4.1 At-Will
Employment. The Executive is employed on an at will basis, and either the Executive or the Company may terminate the Executive’s
employment at any time with or without cause.
Section 4.2 Removal
from any Boards and Position. If the Executive’s employment is terminated for any reason under this Agreement, the Executive
shall be deemed (without further action, deed or notice) to resign (i) if a member, from the Board or board of directors (or similar
governing body) of the Company, any Affiliate of the Company or any other board to which the Executive has been appointed or nominated
by or on behalf of the Company, and (ii) from all other positions with the Company or any subsidiary or other Affiliate of the Company,
including, but not limited to, as an officer of the Company and any of its subsidiaries or other Affiliates.
Section 5.1 Employee
Inventions Assignment and Non-Disclosure Agreement . The Executive acknowledges and confirms that the Employee Inventions Assignment
and Non-Disclosure Agreement executed by the Executive on November 17, 2023 (the “Covenants Agreement”), the terms of
which are incorporated herein by reference, remains in full force and effect and binding on the Executive. The Covenants Agreement shall
survive the termination of this Agreement and the Executive’s employment by the Company for the applicable period(s) set forth
Section 5.2 Expenses.
Each of the Company and the Executive shall bear its/the Executive’s own costs, fees and expenses in connection with the negotiation,
preparation and execution of this Agreement.
Section 5.3 Key-Person
Insurance. Upon the Company’s request, the Executive shall cooperate (including, without limitation, taking any required physical
examinations) in all respects in obtaining a key-person life insurance policy on the life of the Executive in which the Company is named
as the beneficiary.
Section 5.4 Entire
Agreement. This Agreement, and the Indemnification Agreement between the Executive and the Company, as it may be amended from time
to time (“Indemnification Agreement”), contain the entire agreement of the parties hereto with respect to the terms and conditions
of the Executive’s employment during the Term and activities following termination of this Agreement and the Executive’s
employment with the Company and supersede any and all prior agreements and understandings, whether written or oral, between the parties
hereto with respect to the subject matter of this Agreement, the Indemnification Agreement, or the Covenants Agreement. Each party hereto
acknowledges that no representations, inducements, promises or agreements, whether oral or in writing, have been made by any party, or
on behalf of any party, which are not embodied herein, or in the Covenants Agreement. The Executive acknowledges and agrees that the
Company has fully satisfied, and has no further obligations to the Executive arising under, or relating to, any prior employment or consulting
arrangement or understanding (including, without limitation, any claims for compensation or benefits of any kind) or otherwise. No agreement,
promise or statement not contained in this Agreement, the Indemnification Agreement, or the Covenants Agreement shall be valid and binding,
unless agreed to in writing and signed by the parties sought to be bound thereby.
Section 5.5 No
Other Contracts. The Executive represents and warrants to the Company that neither the execution and delivery of this Agreement by
the Executive nor the performance by the Executive of the Executive’s obligations hereunder, shall constitute a default under or
a breach of the terms of any other agreement, contract or other arrangement, whether written or oral, to which the Executive is a party
or by which the Executive is bound, nor shall the execution and delivery of this Agreement by the Executive nor the performance by the
Executive of the Executive’s duties and obligations hereunder give rise to any claim or charge against either the Executive, the
Company or any Affiliate, based upon any other contract or other arrangement, whether written or oral, to which the Executive is a party
or by which the Executive is bound. The Executive further represents and warrants to the Company that the Executive is not a party to
or subject to any restrictive covenants, legal restrictions or other agreement, contract or arrangement, whether written or oral, in
favor of any entity or person that would in any way preclude, inhibit, impair or limit the Executive’s ability to perform the Executive’s
obligations under this Agreement, including, but not limited to, non-competition agreements, non-solicitation agreements or confidentiality
agreements. The Executive shall defend, indemnify and hold the Company harmless from and against all claims, actions, losses, liabilities,
damages, costs and expenses (including reasonable attorney’s fees and amounts paid in settlement in good faith) arising from or
relating to any breach of the representations and warranties made by the Executive in this Section 5.5.
Section 5.6 Notices.
Any notice or other communication required or permitted hereunder shall be in writing and shall be delivered personally or sent by
nationally recognized overnight courier service (with next business day delivery requested). Any such notice or communication shall be
deemed given and effective, in the case of personal delivery, upon receipt by the other party, and in the case of a courier service,
upon the next business day, after dispatch of the notice or communication. Any such notice or communication shall be addressed as follows:
|If to the
Attn: Corporate Secretary
1111 Main Street, Suite 660
Vancouver, Washington 98660
to the Executive, to:
The address provided on Executive’s current Form W-4 on file with the Company.
Section 5.7 Governing
Law; Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the laws of the state of Delaware, without
regard to principles of conflicts of law. Any and all actions arising out of this Agreement or Executive’s employment by the Company
or termination therefrom shall be brought and heard in the state and federal courts of the state of Delaware and the parties hereto hereby
irrevocably submit to the exclusive jurisdiction of any such courts.
Section 5.8 Waiver.
Either party hereto may waive compliance by the other party with any provision of this Agreement. The failure of a party to insist
on strict adherence to any term of this Agreement on any occasion shall not be considered a waiver or deprive that party of the right
thereafter to insist upon strict adherence to that term or any other term of this Agreement. No waiver of any provision shall be construed
as a waiver of any other provision. Any waiver must be in writing.
Section 5.9 Severability.
If any one or more of the terms, provisions, covenants and restrictions of this Agreement shall be determined by a court of competent
jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired, or invalidated and the parties will attempt to agree
upon a valid and enforceable provision which shall be a reasonable substitute for such invalid and unenforceable provision in light of
the tenor of this Agreement, and, upon so agreeing, shall incorporate such substitute provision in this Agreement. In addition, if any
one or more of the provisions contained in this Agreement shall for any reason be determined by a court of competent jurisdiction to
be excessively broad as to duration, geographical scope, activity, or subject, it shall be construed, by limiting or reducing it, so
as to be enforceable to the extent compatible with then applicable law.
Section 5.10 Counterparts.
This Agreement may be executed in any number of counterparts and each such duplicate counterpart shall constitute an original, any
one of which may be introduced in evidence or used for any other purpose without the production of its duplicate counterpart. Moreover,
notwithstanding that any of the parties did not execute the same counterpart, each counterpart shall be deemed for all purposes to be
an original, and all such counterparts shall constitute one and the same instrument, binding on all of the parties hereto.
Section 5.11 Advice
of Counsel. Both parties hereto acknowledge that they have had the opportunity to seek and obtain the advice of counsel before entering
into this Agreement and have done so to the extent desired, and have fully read the Agreement and understand the meaning and import
of all the terms hereof.
Section 5.12 Assignment.
This Agreement shall inure to the benefit of the Company and its successors and assigns (including, without limitation, the purchaser
of all or substantially all of its assets) and shall be binding upon the Company and its successors and assigns. This Agreement is personal
to the Executive, and the Executive shall not assign or delegate the Executive’s rights or duties under this Agreement, and any
such assignment or delegation shall be null and void.
Section 5.13 Agreement
to Take Actions . Each party to this Agreement shall execute and deliver such documents, certificates, agreements, and other instruments,
and shall take all other actions, as may be reasonably necessary or desirable in order to perform the Executive’s or its obligations
under this Agreement.
Section 5.14 No
Attachment. Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation,
alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation or to execution, attachment, levy, or similar process or
assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void and of no effect;
provided, however, that nothing in this Section 5.14 shall preclude the assumption of such rights by executors, administrators,
or other legal representatives of the Executive or the Executive’s estate and their assigning any rights hereunder to the person
or persons entitled thereto.
Section 5.15 Source
of Payment. Except as otherwise provided under the terms of any applicable Executive benefit plan, all payments provided for under
this Agreement shall be paid in cash from the general funds of the Company. The Company shall not be required to establish a special
or separate fund or other segregation of assets to assure such payments, and, if the Company shall make any investments to aid it in
meeting its obligations hereunder, the Executive shall have no right, title, or interest whatever in or to any such investments except
as may otherwise be expressly provided in a separate written instrument relating to such investments. Nothing contained in this Agreement,
and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship,
between the Company and the Executive or any other person. To the extent that any person acquires a right to receive payments from the
Company hereunder, such right, without prejudice to rights which employees may have, shall be no greater than the right of an unsecured
creditor of the Company. The Executive shall not look to the owners of the Company for the satisfaction of any obligations of the Company
under this Agreement.
Section 5.16 Tax
Withholding. The Company or other payor is authorized to withhold from any benefit provided or payment due hereunder, the amount
of withholding taxes due any federal, state, or local authority in respect of such benefit or payment and to take such other action as
may be necessary in the opinion of the Compensation Committee to satisfy all obligations for the payment of such withholding taxes.
The Executive will be solely responsible for all taxes assessed against the Executive with respect to the compensation and benefits described
in this Agreement, other than typical employer-paid taxes such as FICA, and the Company makes no representations as to the tax treatment
of such compensation and benefits.
Section 5.17 409A
Compliance. All payments under this Agreement are intended to comply with or be exempt from the requirements of Section 409A
of the Code and regulations promulgated thereunder (“Section 409A”). As used in this Agreement, the “Code”
means the Internal Revenue Code of 1986, as amended. To the extent permitted under applicable regulations and/or other guidance of general
applicability issued pursuant to Section 409A, the Company reserves the right to modify this Agreement to conform with any or all
relevant provisions regarding compensation and/or benefits so that such compensation and benefits are exempt from the provisions of Section 409A
and/or otherwise comply with such provisions so as to avoid the tax consequences set forth in Section 409A and to assure that no
payment or benefit shall be subject to an “additional tax” under Section 409A. To the extent that any provision in this
Agreement is ambiguous as to its compliance with Section 409A, or to the extent any provision in this Agreement must be modified
to comply with Section 409A, such provision shall be read in such a manner so that no payment due to the Executive shall be subject
to an “additional tax” within the meaning of Section 409A(a)(1)(B) of the Code. Notwithstanding anything contained
herein to the contrary, the Executive shall not be considered to have terminated employment with the Company for purposes of Section 4
unless the Executive would be considered to have incurred a “separation from service” from the Company within the meaning
of Treasury Regulation §1.409A-1(h). In no event whatsoever shall the Company be liable for any additional tax, interest or penalty
that may be imposed on the Executive by Section 409A or damages for failing to comply with Section 409A.
Section 5.18 280G
any payment, benefit or distribution of any type to or for the benefit of the Executive, whether paid or payable, provided or to be provided,
or distributed or distributable pursuant to the terms of this Agreement or otherwise (collectively, the “Parachute Payments”)
would subject the Executive to the excise tax imposed under Section 4999 of the Code (the “Excise Tax”), the Parachute
Payments shall be reduced so that the maximum amount of the Parachute Payments (after reduction) shall be one dollar ($1.00) less than
the amount which would cause the Parachute Payments to be subject to the Excise Tax; provided that the Parachute Payments shall only
be reduced to the extent the after-tax value of amounts received by the Executive after application of the above reduction would exceed
the after-tax value of the amounts received without application of such reduction. For this purpose, the after-tax value of an amount
shall be determined taking into account all federal, state, and local income, employment and excise taxes applicable to such amount.
Unless the Executive shall have given prior written notice to the Company to effectuate a reduction in the Parachute Payments if such
a reduction is required, which notice shall be consistent with the requirements of Section 409A to avoid the imputation of any tax,
penalty or interest thereunder, then the Company shall reduce or eliminate the Parachute Payments by first reducing or eliminating any
cash payments (with the payments to be made furthest in the future being reduced first), then reducing or eliminating accelerated vesting
of stock options or similar awards, then by reducing or eliminating any other remaining Parachute Payments; provided, that no such reduction
or elimination shall apply to any non-qualified deferred compensation amounts (within the meaning of Section 409A) to the extent
such reduction or elimination would accelerate or defer the timing of such payment in manner that does not comply with Section 409A.
initial determination as to whether (x) any of the Parachute Payments received by the Executive in connection with the occurrence
of a change in the ownership or control of the Company or in the ownership of a substantial portion of the assets of the Company shall
be subject to the Excise Tax, and (y) the amount of any reduction, if any, that may be required pursuant to the previous paragraph,
shall be made by an independent accounting firm selected by the Company (the “Accounting Firm”) prior to the consummation
of such change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets of the
Company. The Executive shall be furnished with notice of all determinations made as to the Excise Tax payable with respect to the Executive’s
Parachute Payments, together with the related calculations of the Accounting Firm, promptly after such determinations and calculations
have been received by the Company.
purposes of this Section 5.18, (i) no portion of the Parachute Payments the receipt or enjoyment of which the Executive shall
have effectively waived in writing prior to the date of payment of the Parachute Payments shall be taken into account; (ii) no portion
of the Parachute Payments shall be taken into account which in the opinion of the Accounting Firm does not constitute a “parachute
payment” within the meaning of Section 280G(b)(2) of the Code; (iii) the Parachute Payments shall be reduced only
to the extent necessary so that the Parachute Payments (other than those referred to in the immediately preceding clause (i) or
(ii)) in their entirety constitute reasonable compensation for services actually rendered within the meaning of Section 280G(b)(4) of
the Code or are otherwise not subject to disallowance as deductions, in the opinion of the auditor or tax counsel referred to in such
clause (ii); and (iv) the value of any non-cash benefit or any deferred payment or benefit included in the Parachute Payments shall
be determined by the Company’s independent auditors based on Sections 280G and 4999 of the Code and the regulations for applying
those sections of the Code, or on substantial authority within the meaning of Section 6662 of the Code.
Section 5.19 Clawback
Pursuant to Applicable Law(s) and Related Policies. Certain compensation paid to Employee under this Agreement or pursuant to
compensation or benefit plans adopted by the Company and awards thereunder, including after the date of this Agreement, may be subject
to recoupment in accordance with clawback policies of Company in effect from time to time, as may be adopted after the date of this Agreement,
to ensure compliance with applicable law(s) including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection
Act and the Sarbanes-Oxley Act of 2002, and rules adopted by a governmental agency or applicable securities exchange under any such
law. Employee agrees to promptly repay or return any such compensation as directed by Company under any such clawback policy or requirement.
remainder of this page is intentionally left blank.]
WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date first above written.
Jacob P. Lalezari
P. Lalezari, M.D.
Appoints Jacob Lalezari M.D. as Interim CEO
Washington, November 21, 2023 – CytoDyn Inc. (OTCQB: CYDY) ("CytoDyn" or the "Company"), a biotechnology
company developing leronlimab, a CCR5 antagonist with the potential for multiple therapeutic indications, today announced the appointment
of Dr. Jacob Lalezari as interim CEO, effective November 17, 2023. Dr. Lalezari will be responsible for leading the Company’s
corporate and product development, with a focus on short-term clinical development and related fundraising. Antonio Migliarese, who had
been serving as interim president since May 2023, in addition to CFO, will resume his previous role as CFO.
brings over 34 years of industry experience and has been a longtime adviser to the Company. He previously served as interim Chief Medical
Officer of CytoDyn during 2020, and has been a member of the Company’s scientific advisory board for the past several years. Dr. Lalezari
has been the CEO and Medical Director of Quest Clinical Research since 1996, and also served as the Chief Medical Officer of Virion Therapeutics
in 2018. Dr. Lalezari has served as Principal Investigator for Phase I, II, and III clinical studies of new therapies for such
viral diseases as HIV/AIDS, CMV, HPV, HSV, Hepatitis B and C, influenza, RSV, and COVID-19, including clinical trials conducted by the
Company. His work has been published extensively and he is a well-regarded international speaker and patient advocate. Dr. Lalezari
received his M.D. from the University of Pennsylvania, his M.A. from the University of Virginia, and his B.A. from the University of
Rochester. He also holds a board certification from the American Board of Internal Medicine.
Urbach, Board Chair, commented, “On behalf of the Board, we are thrilled to have Dr. Lalezari step in as our interim CEO
while we work to conclude our search for the right CEO candidate to lead the Company for the long-term. Dr. Lalezari is a
widely known and respected figure in our industry and brings expertise and experience that directly correlate with the short-term
needs of the Company. We anticipate Dr. Lalezari working with us for the next few months while the Company resolves the
clinical hold and makes key decisions as it relates to getting back into clinical trials and evaluating strategic partnerships. With
his industry relationships and knowledge, we believe Dr. Lalezari is uniquely suited to keep the Company’s clinical
strategy and potential partnership initiatives moving.”
stated, “I am eager to help CytoDyn move forward its corporate objectives. Indeed, I agreed to serve as interim CEO due to
my belief in leronlimab and its potential. I have worked with leronlimab (and previously PRO 140) for almost 20 years, and I am pleased
to step in during this critical juncture in which the Company seeks to come off clinical hold, get back to conducting trials and develop
a drug that helps patients. I believe the Company can make significant and immediate progress on a number of key objectives.”
is a clinical-stage biotechnology company focused on the development and commercialization of leronlimab, an investigational humanized
IgG4 monoclonal antibody (mAb) that is designed to bind to C-C chemokine receptor type 5 (CCR5), a protein on the surface of certain
immune system cells that is believed to play a role in numerous disease processes. CytoDyn has studied leronlimab in multiple therapeutic
areas, including infectious disease, cancer, and autoimmune conditions.
press release contains certain forward-looking statements that involve risks, uncertainties and assumptions that are difficult to predict.
Words and expressions reflecting optimism, satisfaction or disappointment with current prospects, as well as words such as "believes,"
"hopes," "intends," "estimates," "expects," "projects," "plans," "anticipates"
and variations thereof, or the use of future tense, identify forward-looking statements, but their absence does not mean that a statement
is not forward-looking. Forward-looking statements may include statements about leronlimab, its ability to provide positive health outcomes,
the Company’s ability to resolve the clinical hold imposed by the U.S. Food and Drug Administration (the “FDA”), the
Company's ability to implement a successful operating strategy for the development of leronlimab and thereby create shareholder value,
the ability to obtain regulatory approval of the Company’s drug products for commercial sales, and the strength of the Company’s
leadership team. The Company's forward-looking statements are not guarantees of performance, and actual results could vary materially
from those contained in or expressed by such statements due to risks and uncertainties, including: (i) the regulatory determinations
of leronlimab’s safety and effectiveness to treat the diseases and conditions for which we are studying the product by the FDA
and various drug regulatory agencies in other countries; (ii) the Company’s ability to raise additional capital to fund its
operations; (iii) the Company’s ability to meet its debt and other payment obligations; (iv) the Company’s ability
to recruit and retain key employees; (v) the Company’s ability to enter into partnership or licensing arrangements with third
parties; (vi) the timely and sufficient development, through internal resources or third-party consultants, of analyses of the data
generated from the Company’s clinical trials required by the FDA or other regulatory agencies in connection with applications for
approval of the Company’s drug product; (vii) the Company’s ability to achieve approval of a marketable product; (viii) the
design, implementation and conduct of the Company’s clinical trials; (ix) the results of any such clinical trials, including
the possibility of unfavorable clinical trial results; (x) the market for, and marketability of, any product that is approved; (xi) the
existence or development of vaccines, drugs, or other treatments that are viewed by medical professionals or patients as superior to
the Company’s products; (xii) regulatory initiatives, compliance with governmental regulations and the regulatory approval
process; (xiii) legal proceedings, investigations or inquiries affecting the Company or its products; (xiv) general economic
and business conditions; (xv) changes in foreign, political, and social conditions; (xvi) stockholder actions or proposals
with regard to the Company, its management, or its board of directors; and (xvii) various other matters, many of which are beyond
the Company’s control. The Company urges investors to consider specifically the various risk factors identified in its most recent
Form 10-K, and risk factors or cautionary statements included in subsequent Form 10-Qs and Form 8-Ks, filed with the Securities
and Exchange Commission. Except as required by law, the Company does not undertake any responsibility to update any forward-looking statements
to take into account events or circumstances that occur after the date of this press release.
CytoDyn (QB) (USOTC:CYDY)
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