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    	-11-Loan Commitment Letter

 Exhibit 10.1 
 

 
 April 18, 2017 

Oragenics, Inc. 
 Attention: Alan Joslyn, CEO 

Dear Dr. Joslyn: 
 We are pleased to advise you
that Intrexon Corporation (“Intrexon”) hereby commits to provide Oragenics, Inc. (the “Borrower”) with an unsecured loan (the “Loan”) subject to the following terms and conditions: 

1.    Loan Terms. 

(a)    Purpose: The proceeds of the Loan will be used to fund Borrower’s AG013 research and clinical trials.

 (b)    Loan amount: $2,400,000 which may be made in one or more tranches at the election of the Borrower.

(c)    Interest: The interest rate charged on the outstanding principal balance of the Loan shall equal 12% per
annum. All accrued and unpaid principal and interest under the Loan shall be due and payable upon the maturity date of the Loan. 

(d)    Maturity Date: Two (2) years from the date of the Closing (as defined below). 

(e)    Prepayment: Borrower may prepay the Loan in whole or in part (along with any accrued interest), without
penalty or premium, at any time prior to the maturity date. 
 2.    Security. The Loan will be unsecured and non-convertible. 
 3.    Costs and Expenses. Each party shall pay all costs
and expenses incurred by such party in connection with the Loan. 
 4.    Conditions to Closing. The closing of
the Loan is conditioned upon: 
 (a)    Execution of a Note Purchase Agreement and Unsecured Promissory Note (the
“Loan Documents”) in form acceptable to the parties. 

 (b)    Closing and funding of equity financing resulting in gross proceeds to
Borrower of at least $2.7 million no later than June 1, 2017. 
 (c)    No action, suit, proceeding or
investigation shall have been instituted before any court or governmental body, or instituted by any governmental agency to restrain or prevent consummation of the Loan. 

5.    Commitment Binding upon Acceptance. This commitment letter constitutes an offer to enter into the
transactions described herein and upon execution by Borrower will constitute a binding contract. 

6.    Closing. The Closing shall occur concurrently with the closing of the Equity Financing and in all events,
Closing shall occur not later than June 1, 2017. 
 7.    Miscellaneous. Any invalidation or waiver of any
of the provisions of this commitment shall not invalidate or waive any other provision hereof. This commitment and the enforcement hereof shall be construed in accordance with the laws of the State of Florida. Time is of the essence. This commitment
letter constitutes the entire agreement of the parties with respect to the Loan and supersedes all previous letters, agreements or understandings with respect to the Loan. This commitment may be signed in counterparts and by facsimile or other
electronic transmission which shall be considered the same as an original. 
  

			
	INTREXON CORPORATION
		
	By:	 	 /s/ Donald P. Lehr

	Name:	 	Donald P. Lehr
	Title:	 	Chief Legal Officer

  

			
	ACCEPTED THIS 18 DAY OF APRIL, 2017
	
	ORAGENICS, INC.
		
	By:	 	 /s/ Alan Joslyn

	Name:	 	Alan Joslyn
	Title:	 	Chief Executive OfficerExhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”), is effective
as of April 16, 2017 (the “Effective Date”), between Aytu BioScience, Inc., a Delaware corporation headquartered at
373 Inverness Parkway, Suite 206, Englewood, CO 80112 USA, hereinafter referred to as the “Company”), and Joshua R. Disbrow
(“Employee”).

 

 

RECITALS 

 

WHEREAS, the Company is a duly organized
Delaware corporation, with its principal place of business within the State of Colorado, and is in the business of developing and
marketing pharmaceutical products; and

 

WHEREAS, the Company desires assurance
of the continued association and services of the Employee in order to continue to retain the Employee’s experience, skills,
abilities, background and knowledge, and is willing to continue to engage the Employee’s services on the terms and conditions
set forth in this Agreement; and

 

WHEREAS, Employee desires to be
in the continued employ of the Company, and is willing to accept such continued employment on the terms and conditions set forth
in this Agreement.

 

NOW, THEREFORE, the parties hereto agree to the terms
and conditions of this Agreement as follows:

 

1. Employment for Term. The Company hereby agrees to
employ Employee and Employee hereby accepts such employment with the Company for the period of 24 months beginning on the Effective
Date. The term of this Agreement (the “Term”) shall continue until the termination of Employee’s employment in accordance
with the provisions of this Agreement. The termination of Employee’s employment under this Agreement shall end the Term but shall
not terminate Employee’s or the Company’s other obligations that are intended to survive the termination of this Agreement (including
without limitation, the payments under Section 7 and 8 and Employee’s obligations under Section 9).

 

2. Position and Duties. During the Term, Employee shall
serve as Chairman of the Board (Chairman) and Chief Executive Officer (CEO) of the Company, and perform such duties as are consistent
with this position. The Employee shall report to the Board of Directors of the Company. During the Term, Employee shall also hold
such additional positions and titles as the Board of Directors of the Company (the “Board”) may determine from time to
time. During the Term, Employee shall devote as much time as is necessary to satisfactorily perform his duties as CEO of the Company.
Employee may engage in any civic and not-for-profit activities so long as such activities do not materially interfere with the
performance of his duties hereunder or present a conflict of interest with the Company During the Term of this Agreement, Employee
agrees not to acquire, assume or participate in, directly or indirectly, any position, investment or interest known by the Employee
to be adverse or antagonistic to the Company, its business or prospects, its financial position, or otherwise or in any company,
person or entity that is, directly or indirectly, in competition with the business of the Company or any of its affiliates. This
provision shall encompass any advisory boards of which Employee is or becomes a member of during the term hereof. Employee shall
provide written disclosure to the Compensation Committee of the Company’s Board of Directors as to all advisory boards on
which Employee sits, and will provide the Company with written notice within 10 business days of Employee agreeing to sit on any
additional advisory boards. On termination of Employee’s employment, regardless of the reason for such termination, Employee
shall immediately (and with contemporaneous effect) resign any directorships, offices or other positions that Employee may hold
in the Company or any affiliate, unless otherwise agreed in writing by the parties.

 

    	 	1	 

     

    

 

3. Compensation. 

 

(a) Base Salary. The Company shall
pay Employee a base salary of $250,000 per annum, payable at least monthly on the Company’s regular pay cycle for professional
employees (the “Base Salary”). Except as specifically otherwise provided herein, the Base Salary may be increased only
by recommendation of the Compensation Committee of the Board and ratified by the Compensation Committee or a majority of the independent
members of the Board.

 

(b) Annual Review. The Base Salary
shall be reviewed at the end of each fiscal year (the first such review to occur at the end of fiscal year 2018).

 

(c) Equity Compensation. In connection
with the execution of this Agreement, the Company hereby agrees to grant on or promptly after August 1, 2017 equity compensation
to Employee in the form of options to purchase shares of Company Common Stock. These options shall vest in accordance with the
terms and schedule set forth in Exhibit A hereto. Such vesting schedule will be accelerated, to the extent provided in Section
8 of this agreement. Equity grants will be made annually during the Term of this Agreement in the amount approved by the Compensation
Committee and commensurate with the performance level of the Employee.

 

(d) Other and Additional Compensation.
Subsections (a) and (c) above establish Employee’s compensation during the Term which shall not preclude the Board from awarding
Employee a higher salary or any bonuses or stock options, restricted stock or other forms of additional equity awards in the discretion
of the Board during the Term at any time. The Employee shall be eligible for an annual discretionary bonus (hereinafter referred
to as the “Bonus”) with a target amount of one hundred and twenty five percent (125%) of the Base Salary, subject
to standard deductions and withholdings, based on the Compensation Committee’s determination, in good faith, and based upon
the Employee’s individual achievement and company performance objectives as set by the Board or the Compensation Committee,
of whether the Employee has met such performance milestones as are established for the Employee by the Board or the Compensation
Committee, in good faith, in consultation with the Employee (hereinafter referred to as the “Performance Milestones”).
The Performance Milestones will be based on certain factors including, but not limited to, the Employee’s performance and
the Company’s financial and operational performance. The Employee’s Bonus target will be reviewed annually and may
be adjusted by the Board or the Compensation Committee in its discretion, provided however, that the Bonus target may only be reduced
upon Employee’s written consent. The Employee must be employed on the date the Bonus is awarded to be eligible for the Bonus,
subject to the termination provisions hereof. Bonuses shall be paid during the calendar quarter following the calendar quarter
for which such Bonus was earned when Performance Milestones are met during a calendar quarter. Fourth quarter Bonuses and Bonuses
calculated on the basis of partial Performance Milestone satisfaction shall be paid within 75 days of fiscal year-end.

 

4. Employee Benefits. During the Term, Employee shall
be entitled to participate at the same level as other senior executive officers of the Company in any group insurance, hospitalization,
medical, health and accident, disability, fringe benefit and tax-qualified retirement plans or programs of the Company now existing
or hereafter established to the extent that he is eligible under the general provisions thereof. For the term of this Agreement,
Employee shall be entitled to paid time off at the rate of (5) weeks per annum. In accordance with Company policy, unused paid
time off may not be carried over from year to year.

 

    	 	2	 

     

    

 

5. Expenses. The Company shall reimburse Employee for
actual, reasonable out-of-pocket expenses incurred by him in the performance of his services for the Company upon the receipt of
appropriate documentation of such expenses which shall be submitted in such form, and with such supporting documentation, as called
for or required by Company policy.

 

6. Termination. 

 

(a) General. The Term shall end immediately
upon Employee’s death. Employee’s employment may also be terminated by the Company with or without Cause or as a result of
Employee’s Disability, as defined in Section 7 or by Employee with or without Good Reason (as such terms are defined below).

 

(b) Notice of Termination. Either
party shall give written notice of termination to the other party.

 

(c) Notification of New Employer.
In the event that Employee leaves the employ of the Company, Employee grants consent to notification by the Company to Employee’s
new employer about his rights and obligations under this Agreement and the PIA (hereinafter defined).

 

7. Severance Benefits. 

 

(a) Cause Defined. “Cause”
means (i) willful malfeasance or willful misconduct by Employee in connection with his employment; (ii) Employee’s gross negligence
in performing any of his duties under this Agreement; (iii) Employee’s conviction of, or entry of a plea of guilty to, or entry
of a plea of nolo contendere with respect to, any crime other than a traffic violation or infraction which is a misdemeanor;
(iv) Employee’s willful and deliberate violation of a Company policy, (v) Employee’s unintended but material breach of any
written policy applicable to all employees adopted by the Company which is not cured to the reasonable satisfaction of the Board
of Directors within thirty (30) business days after notice thereof; (vi) the Employee’s unauthorized use or disclosure of
any proprietary information or trade secrets of the Company or any other party as to which the Employee owes an obligation of nondisclosure
as a result of the Employee’s relationship with the Company, (vii) the Employee’s willful and deliberate breach of
his obligations under this Agreement, or (viii) any other material breach by Employee of any of his obligations in this Agreement
which is not cured to the reasonable satisfaction of the Board of Directors within thirty (30) business days after notice thereof.

 

(b) Disability Defined. “Disability”
shall mean (i) Employee’s incapacity due to a physical or mental condition and, if reasonable accommodation is required by law,
after any reasonable accommodation, that results in Employee being substantially unable to perform his duties hereunder for six
consecutive months (or for six months out of any nine month period) or (ii) a qualified independent physician mutually acceptable
to the Company and Employee determines that Employee is incapacitated due to a physical or mental condition and, if reasonable
accommodation is required by law, after any reasonable accommodation so as to be unable to regularly perform the duties of his
position and such condition is expected to be of a permanent or near-permanent duration. Until such time as Employee is terminated
for Disability under this paragraph (b), Employee shall continue to receive his Base Salary hereunder, provided that if the Company
provides Employee with disability insurance coverage, payments of Employee’s Base Salary shall be reduced by the amount of any
disability insurance payments received by Employee due to such coverage. The Company shall give Employee written notice of termination
due to Disability which shall take effect sixty (60) days after the date it is sent to Employee unless Employee shall have returned
to the performance of his duties hereunder during such sixty (60) day period (whereupon such notice shall become void). In the
event that the Company terminates Employee’s employment as a result of his Disability, Employee shall be entitled to the
same benefits as if his employment had been terminated by the Company without Cause.

 

    	 	3	 

     

    

 

(c) Good Reason Defined. For purposes
of this Agreement, “Good Reason” shall mean, without Employee’s written consent: (i) there is a material reduction
of the level of Employee’s compensation (excluding any bonuses) (except where there is a general reduction applicable to
the management team generally, provided, however, that in no case may the Base Salary be reduced below the amount stated in Section
3(a)), (ii) there is a material reduction in Employee’s overall responsibilities or authority, or scope of duties (it being
understood that the occurrence of a Change in Control shall not, by itself, necessarily constitute a reduction in Employee’s
responsibilities or authority); or (iii) there is a material change in the principal geographic location at which Employee must
perform his services (it being understood that the relocation of Employee to a facility or a location within forty (40) miles of
the State Capitol Building in Denver, Colorado shall not be deemed material for purposes of this Agreement). No event shall be
deemed to be “Good Reason” if the Company has cured the event (if susceptible to cure) within 30 days of receipt of
written notice from Employee specifying the event or events which, absent cure, would constitute “Good Cause.”

 

(d) Accrued Compensation Defined. Accrued
Compensation shall mean an amount which shall include all amounts earned or accrued by Employee through the date of termination
of this Agreement but not paid as of such date, including (i) Base Salary, (ii) reimbursement for business expenses incurred by
the Employee on behalf of the Company, pursuant to the Company’s expense reimbursement policy in effect at such time, (iii)
any expense allowance pursuant to Company policy, (iv) accrued but unused vacation pay per Company policy, and (v) bonuses and
incentive compensation earned and awarded prior to the date of termination. Accrued Compensation shall be paid on the first regular
pay date after the date of termination (or earlier, if required by applicable law).

 

(e) Termination.

 

(i) Cause; Without Good Reason;
Death; Disability. If the Company ends the Term for Cause, if Employee resigns as an employee of the Company for reasons other
than an event of Good Reason, the Employee dies or Disability occurs , then the Company shall pay to Employee the Accrued Compensation
but shall have no obligation to pay Employee any amount, whether for salary, benefits, bonuses, or other compensation or expense
reimbursements of any kind, accruing after the end of the Term, and such rights shall, except as otherwise required by law or pursuant
to the applicable award agreement or plan, be forfeited immediately upon the end of the Term. For the sake of clarity, any stock
options, restricted stock or other equity compensation shall, to the extent vested on the date of resignation without Good Reason,
the date the Company ends the Term for Cause, or the date of Employee’s death, remain outstanding and exercisable to the
extent provided in the applicable award agreement or plan, by the Employee or his personal representative or executor.

 

(ii) Without Cause; Good Reason.
In the event that the Company terminates Employee’s employment hereunder without Cause, or the Employee terminates his employment
with Good Reason, he shall be entitled to the Accrued Compensation and, subject to Section 21 and 22 below,

 

(A) A lump sum payment equal to two times his Base Salary
in effect at the date of termination, less applicable withholding

 

    	 	4	 

     

    

 

(B) Continued participation (via state or federal insurance
continuation laws such as COBRA, to the extent available) in the health and welfare plans (or comparable plans, if continued participation
in the Company’s plans is not available) provided by the Company to Employee at the time of termination for a period of two
years from the date of termination or, if earlier, until he is eligible for comparable coverage with a subsequent employer. The
Company agrees to reimburse the payments Employee makes for such coverage, whether via continuation or separate comparable policy.
Premium reimbursements shall be made by the Company to Employee consistent with the Company’s normal expense reimbursement
policy, provided that Employee submits documentation to the Company substantiating his payments for insurance coverage. Employee
shall give the Company prompt notice of his eligibility for comparable coverage.

 

(C) All vested stock options shall remain exercisable
from the date of termination until the expiration date of the applicable award. So long as the Section 8 below does
not apply, then all options which are unvested at the date of termination Without Cause or for Good Reason shall be accelerated
as of the date of termination such that the number of option shares equal to 1/24th the number of option shares multiplied
by the number of full months of Employee’s employment hereunder shall be deemed vested and immediately exercisable by the
Employee. Any unvested options over and above the foregoing shall be cancelled and of no further force or effect, and shall not
be exercisable by the Employee.

 

(D) Any severance payments and/or other separation benefits
contemplated by this Agreement are conditional on Employee: (i) continuing to comply with the terms of this Agreement and the PIA
(as defined herein); (ii) delivering prior to or contemporaneously with any such severance payments, and not revoking, (x) a customary
general release of claims relating to Employee’s employment and/or this Agreement against the Company or its successor, its
subsidiaries and their respective directors, officers and stockholders and (y) a customary affirmation of Employee’s continuing
obligations hereunder and under the PIA.

 

Unless otherwise required by law, no severance payments and/or
benefits under this Agreement will be paid and/or provided until after the expiration of any relevant revocation period. Subject
to the effectiveness of the release, the severance payments shall be paid on the first payroll date that begins 30 days after Employee’s
termination of employment.

 

8. Change in Control Payments. The provisions of this
paragraph 8 set forth the terms of an agreement reached between Employee and the Company regarding Employee’s rights and obligations
upon the occurrence of a “Change in Control” (as hereinafter defined) of the Company during the Term. These provisions
are intended to assure and encourage in advance Employee’s continued attention and dedication to his assigned duties and his objectivity
during the pendency and after the occurrence of any such Change in Control. The following provisions shall apply in the event of
a Change in Control, in addition to any payment or benefit that may be required pursuant to Section 7.

 

(a) Equity. Upon the occurrence of
a Change in Control, all stock options, restricted stock and other stock-based grants to Employee by the Company or that may be
granted in the future shall, irrespective of any provisions of his award agreements, immediately and irrevocably vest and become
exercisable and any restrictions thereon shall lapse. All stock options shall remain exercisable from the date of the Change in
Control until the expiration of the term of such stock options.

 

    	 	5	 

     

    

 

(b) Definitions. For purposes of
this paragraph 8, the following terms shall have the following meanings:

 

“Change in Control” shall mean any of the following:

 

(1) the acquisition
by any individual, entity, or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (the “Acquiring
Person”), other than the Company, or any of its Subsidiaries, of beneficial ownership (within the meaning of Rule 13d-3- promulgated
under the Exchange Act) of 50% or more of the combined voting power or economic interests of the then outstanding voting securities
of the Company entitled to vote generally in the election of directors (excluding any issuance of securities by the Company in
a transaction or series of transactions made principally for bona fide equity financing purposes; or

 

(2) the acquisition of the Company by another
entity by means of any transaction or series of related transactions to which the Company is party (including, without limitation,
any stock acquisition, reorganization, merger or consolidation but excluding any issuance of securities by the Company in a transaction
or series of transactions made principally for bona fide equity financing purposes) other than a transaction or series of related
transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction or
series of related transactions retain, immediately after such transaction or series of related transactions, as a result of shares
in the Company held by such holders prior to such transaction or series of related transactions, at least a majority of the total
voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity (or if
the Company or such other surviving or resulting entity is a wholly-owned subsidiary immediately following such acquisition, its
parent); or

 

(3) the sale or other disposition of all
or substantially all of the assets of the Company in one transaction or series of related transactions.

 

9. Proprietary Information and Inventions Agreement.
As a condition of Employee’s employment with the Company, Employee agrees to sign the Company’s standard form of Proprietary
Information and Inventions Agreement (“PIA”).

 

10. Successors and Assigns. 

 

(a) Employee. This Agreement is a
personal contract, and the rights and interests that the Agreement accords to Employee may not be sold, transferred, assigned,
pledged, encumbered, or hypothecated by him. All rights and benefits of Employee shall be for the sole personal benefit of Employee,
and no other person shall acquire any right, title or interest under this Agreement by reason of any sale, assignment, transfer,
claim or judgment or bankruptcy proceedings against Employee. Except as so provided, this Agreement shall inure to the benefit
of and be binding upon Employee and his personal representatives, distributees and legatees.

 

(b) The Company. This Agreement shall
be binding upon the Company and inure to the benefit of the Company and of its successors and assigns, including (but not limited
to) any Company that may acquire all or substantially all of the Company’s assets or business or into or with which the Company
may be consolidated or merged. Any such successor of the Company will be deemed substituted for the Company under the terms of
this Agreement for all purposes. For this purpose, “successor” means any person, firm, corporation or other business
entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of
the assets or business of the Company.

 

11. Entire Agreement. This Agreement (together with the
equity award agreements referred to herein) represents the entire agreement between the parties concerning Employee’s employment
with the Company and supersedes all prior negotiations, discussions, understanding and agreements, whether written or oral, between
Employee and the Company relating to the subject matter of this Agreement.

 

    	 	6	 

     

    

 

12. Amendment or Modification, Waiver. No provision of
this Agreement may be amended or waived unless such amendment or waiver is agreed to in writing signed by Employee and by a duly
authorized officer of the Company. No waiver by any party to this Agreement or any breach by another party of any condition or
provision of this Agreement to be performed by such other party shall be deemed a waiver of a similar or dissimilar condition or
provision at the same time, any prior time or any subsequent time.

 

13. Notices. Any notice to be given under this Agreement
shall be in writing and delivered personally or sent by overnight courier or registered or certified mail, postage prepaid, return
receipt requested, addressed to the party concerned at the address indicated below, or to such other address of which such party
subsequently may give notice in writing:

 

		If to Employee:	3631
East 7th Avenue Parkway

Denver,
CO 80206

 

To the address specified in the
payroll records of the Company.

 

		If to the Company:	Aytu BioScience, Inc.

373 Inverness
Parkway

Suite
206

Englewood,
Colorado 80112

 

 

Any notice delivered personally or by overnight courier shall
be deemed given on the date delivered and any notice sent by registered or certified mail, postage prepaid, return receipt requested,
shall be deemed given on the date mailed.

 

14. Severability. If any provision of this Agreement
or the application of any such provision to any party or circumstances shall be determined by any court of competent jurisdiction
or arbitrator acting pursuant to Section 19 below to be invalid and unenforceable to any extent, the remainder of this Agreement
or the application of such provision to such person or circumstances other than those to which it is so determined to be invalid
and unenforceable shall not be affected, and each provision of this Agreement shall be validated and shall be enforced to the fullest
extent permitted by law. If for any reason any provision of this Agreement containing restrictions is held to cover an area or
to be for a length of time that is unreasonable or in any other way is construed to be too broad or to any extent invalid, such
provision shall not be determined to be entirely null, void and of no effect; instead, it is the intention and desire of both the
Company and Employee that, to the extent that the provision is or would be valid or enforceable under applicable law, any court
of competent jurisdiction or arbitrator acting pursuant to Section 19 below shall construe and interpret or reform this Agreement
to provide for a restriction having the maximum enforceable area, time period and such other constraints or conditions (although
not greater than those contained currently contained in this Agreement) as shall be valid and enforceable under the applicable
law.

 

15. Survivorship. The respective rights and obligations
of the parties hereunder shall survive any termination of this Agreement to the extent necessary to the intended preservation of
such rights and obligations.

 

    	 	7	 

     

    

 

16. Headings. All descriptive headings of sections and
paragraphs in this Agreement are intended solely for convenience of reference, and no provision of this Agreement is to be construed
by reference to the heading of any section or paragraph.

 

17. Withholding Taxes. All salary, benefits, reimbursements
and any other payments to Employee under this Agreement shall be subject to all applicable payroll and withholding taxes and deductions
required by any law, rule or regulation of and federal, state or local authority.

 

18. Counterparts. This Agreement may be executed in one
or more counterparts, each of which shall be deemed to be an original but all of which together constitute one and same instrument.
The parties agree that facsimile signatures shall have the same force and effect as original signatures.

 

19. Applicable Law; Arbitration. The validity, interpretation
and enforcement of this Agreement and any amendments or modifications hereto shall be governed by the laws of the State of Colorado,
as applied to a contract executed within and to be performed in such State. The parties agree that any disputes shall be definitively
resolved by binding arbitration before the American Arbitration Association in Denver, Colorado in accordance with its rules of
arbitration procedure then in effect. The parties consent to the jurisdiction to the federal courts of the District of Colorado
or, if there shall be no jurisdiction, to the state courts located in Arapahoe County, Colorado, to enforce any arbitration award
rendered with respect thereto. Each party shall choose one arbitrator and the two arbitrators shall choose a third arbitrator.
All costs and fees related to such arbitration (and judicial enforcement proceedings, if any) shall be borne by the Company unless
Employee’s claim is deemed to be frivolous by the arbitrator(s) or judge.

 

20. Legal Fees. The Company shall pay the reasonable
expenses of Employee’s counsel in negotiating this Agreement.

 

21. Section 409A. 

 

(a) Anything in this Agreement to the contrary
notwithstanding, if at the time of Employee’s separation from service within the meaning of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), the Company determines that Employee is a “specified employee”
within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that Employee becomes entitled
to under this Agreement on account of Employee’s separation from service would be considered deferred compensation otherwise
subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section
409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the
earlier of (A) six months and one day after Employee’s separation from service, or (B) Employee’s death. If any such
delayed cash payment is otherwise payable on an installment basis, the first payment shall include a catch-up payment covering
amounts that would otherwise have been paid during the six-month period but for the application of this provision, and the balance
of the installments shall be payable in accordance with their original schedule.

 

(b) All in-kind benefits provided and expenses
eligible for reimbursement under this Agreement shall be provided by the Company or incurred by Employee during the time periods
set forth in this Agreement. All reimbursements shall be paid as soon as administratively practicable, but in no event shall any
reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred. The
amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind benefits
to be provided or the expenses eligible for reimbursement in any other taxable year (except for any lifetime or other aggregate
limitation applicable to medical expenses). Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange
for another benefit.

 

    	 	8	 

     

    

 

(c) To the extent that any payment or benefit
described in this Agreement constitutes “non-qualified deferred compensation” under Section 409A of the Code, and to
the extent that such payment or benefit is payable upon Employee’s termination of employment, then such payments or benefits
shall be payable only upon Employee’s “separation from service.” The determination of whether and when a separation
from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A 1(h).

 

(d) The parties intend that this Agreement
will be administered in accordance with Section 409A of the Code. To the extent that any provision of this Agreement is ambiguous
as to its compliance with Section 409A of the Code, the provision shall be read in such a manner so that all payments hereunder
comply with Section 409A of the Code. Each payment pursuant to this Agreement is intended to constitute a separate payment for
purposes of Treasury Regulation Section 1.409A 2(b)(2). The parties agree that this Agreement may be amended, as reasonably requested
by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations in
order to preserve the payments and benefits provided hereunder without additional cost to either party.

 

22. Application of Internal Revenue Code Section 280G.
If any payment or benefit Employee would receive pursuant to a Change in Control from the Company or otherwise (“Payment”)
would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but
for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”),
then such Payment shall be equal to the Reduced Amount. The “Reduced Amount” shall be either (x) the largest portion
of the Payment that would result in no portion of the Payment being subject to the Excise Tax or (y) the largest portion,
up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and local
employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Employee’s
receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be
subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary so
that the Payment equals the Reduced Amount, reduction shall occur in the manner that results in the greatest economic benefit for
Employee. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro
rata.

 

In the event it is subsequently determined by the Internal Revenue
Service that some portion of the Reduced Amount as determined pursuant to clause (x) in the preceding paragraph is subject
to the Excise Tax, Employee agrees to promptly return to the Company a sufficient amount of the Payment so that no portion of the
Reduced Amount is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount is determined pursuant to clause
(y) in the preceding paragraph, Employee will have no obligation to return any portion of the Payment pursuant to the preceding
sentence.

 

Unless Employee and the Company agree on an alternative accounting
firm, the accounting firm engaged by the Company for general tax compliance purposes as of the day prior to the effective date
of the Change in Control shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving
as accountant or auditor for the individual, entity or group effecting the Change in Control, the Company shall appoint a nationally
recognized accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the
determinations by such accounting firm required to be made hereunder.

 

    	 	9	 

     

    

 

The Company shall use commercially reasonable efforts to cause
the accounting firm engaged to make the determinations hereunder to provide its calculations, together with detailed supporting
documentation, to the Employee and the Company within fifteen (15) calendar days after the date on which Employee’s
right to a Payment is triggered (if requested at that time by the Employee or the Company) or such other time as requested by Employee
or the Company.

 

23.       Indemnification.
As a condition to the effectiveness of this Agreement, the Company and Employee shall enter into a mutually acceptable indemnification
agreement.

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the date first written above.

 

	AYTU BIOSCIENCE, INC.	 	 	EMPLOYEE	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Gary V. Cantrell	 	 	/s/ Joshua R. Disbrow	 
	 	Name: GARY V. CANTRELL	 	 	Name: JOSHUA R. DISBROW	 
	 	Chairman of the Compensation Committee Board of
Directors	 	 	Chairman and Chief
Executive Officer	 

 

    	 	10	 

     

    

 

EXHIBIT A

 

Terms of Compensation

 

Management equity grant:

 

		·	A quantity of options to purchase shares of the company’s common
stock as agreed upon by Employee and the Company, but in no event will the quantity be less than the highest amount of options
issued to any other employee during the term. The strike price for all options will be the last sale price of the Company’s
common stock as reported during the period immediately preceding the date of grant and in accordance with the terms of the Company’s
Stock and Incentive Plan.

		·	All options fully vest upon change in control, death, disability,
termination with or without cause, termination for good reason

		·	50% of the options are fully vested on the Effective Date of this
agreement

		·	25% of the options vest 365 days thereafter

		·	25% of the options vest 730 days thereafter

 

    	 	11

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