Document:

Exhibit 10.2

 

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 Jarrett T.
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 Chief Operating Officer (COO) of the Company, and perform such duties as are consistent with this position. The Employee
shall report to the Chairman and Chief Executive Officer of the Company. During the Term, Employee shall also hold such additional
positions and titles as the Chairman and Chief Executive Officer of the Company may determine from time to time. During the Term,
Employee shall devote as much time as is necessary to satisfactorily perform his duties as COO 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.

 

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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.

 

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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.

 

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(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

 

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(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.

 

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(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.

 

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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.

 

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:	3516
Rock Creek Drive

Raleigh,
NC 27609

 

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.

 

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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.

 

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(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.

 

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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/ Jarrett T. Disbrow	 
	 	Name: GARY V. CANTRELL	 	 	Name: JARRETT T. DISBROW	 
	 	Chairman of the Compensation Committee Board of
Directors	 	 	Chief Operating Officer	 

 

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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 and commensurate with Employee’s role as a senior executive at the Company.
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

 

    	 	11Exhibit

Exhibit 10.1

EXECUTION VERSION 

FIRST AMENDMENT TO CREDIT AGREEMENT 

This FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) dated as of April 18, 2017 (the “Effective Date”), is entered into by and among CASELLA WASTE SYSTEMS, INC., a Delaware corporation (the “Parent”), its Subsidiaries (other than the Excluded Subsidiaries and the Non-Borrower Subsidiaries) party hereto (together with the Parent, the “Borrowers” and, each a “Borrower”), the Lenders party hereto, and BANK OF AMERICA, N.A., as administrative agent (the “Administrative Agent”).
PRELIMINARY STATEMENTS
The Borrowers, the Administrative Agent and certain banks and other financial institutions (the “Existing Lenders”) are parties to that certain Credit Agreement dated as of October 17, 2016 (as in effect on the date hereof, the “Credit Agreement”; capitalized terms used but not otherwise defined herein shall have the meanings assigned thereto in the Credit Agreement) pursuant to which the Existing Lenders have made available to the Borrowers (i) Initial Term Loans in an initial aggregate principal amount of $350,000,000 and (ii) a Revolving Credit Facility in an initial aggregate principal committed amount of $160,000,000.
Pursuant to Section 2.14 of the Credit Agreement, the Borrowers have requested the provision of an Incremental Term Commitment for a new tranche of Term Loans in an aggregate principal amount of $349,125,000 (collectively, the “Term B-1 Loans”), from certain Existing Lenders and other banks, financial institutions and institutional Lenders reasonably satisfactory to the Administrative Agent and the Borrowers (such other banks, financial institutions and institutional Lenders that are not Existing Lenders, collectively, the “New Lenders” and, together with the Existing Lenders that are party hereto, collectively, the “Incremental Lenders”), the proceeds of which Term B-1 Loans shall be used to refinance the Initial Term Loans (either via cash settlement or, in the case of certain Existing Lenders via a cashless roll of Initial Term Loans into Term B-1 Loans), all as set forth herein.
This Amendment shall constitute an Increase Joinder referenced in Section 2.14 of the Credit Agreement.
In consideration of the mutual covenants and agreements herein contained, the parties hereto agree as follows:
1.Incremental Term Commitments.   Upon the Effective Date (i) the Incremental Term Commitment shall be provided by the Incremental Lenders (with allocations of commitments to the Incremental Term Commitment to be determined by the Administrative Agent in consultation with the Borrowers), (ii) the gross proceeds of the Incremental Term Commitment allocated to Incremental Lenders converting all or a portion of their Initial Term Loans to Term B-1 Loans pursuant to the Incremental Term Commitment shall first be applied (whether by cashless roll or cash settlement, as elected by each applicable Incremental Lender) dollar-for-dollar to reduce the Initial Term Loans of such Incremental Lender, and (iii) the Term B-1 Loans of each Incremental Lender shall be the amount set forth opposite such Incremental Lender’s name on Annex I hereto.  In connection with the Incremental Term Commitment and the prepayment (whether by cashless roll or cash settlement) of the Initial Term Loans to occur on the Effective Date in connection with this Amendment, the Administrative Agent may make such adjustments between and among the applicable Incremental Lenders as are reasonably necessary to effectuate such Incremental Term Commitment and the related uses thereof, so that the outstanding Term B-1 Loans are as set forth on Annex I hereto as of the Effective Date.  In connection therewith, the prepayment of the Initial Term Loans on the Effective Date as provided herein, the Borrowers shall pay any additional amounts required pursuant to 

Section 3.05 of the Credit Agreement only to any Term Lender who will not be an Incremental Lender, and each Incremental Lender hereby waives any requirement for the payment of any such amount to it pursuant to Section 3.05 of the Credit Agreement in connection with the transactions contemplated hereby.   
2.    Agreements related to Term B-1 Loans.  
(a)    The Term B-1 Loans shall be made simultaneously by the Incremental Lenders in accordance with their respective Applicable Percentages of the Term B-1 Loans specified on Annex I.  The proceeds of the Term B-1 Loans shall be used by the Borrowers solely to refinance the Initial Term Loans as set forth herein.  Amounts borrowed pursuant to this Amendment that are repaid or prepaid may not be reborrowed.  
(b)    The “Incremental Term Loan Maturity Date” with respect to the Term B-1 Loans shall be October 17, 2023.
(c)    The Borrowers shall repay to the Term Lenders with Term B-1 Loans the aggregate principal amount of the Term B-1 Loans in quarterly principal installments equal to 0.25% of the initial aggregate principal amount of the Term B-1 Loans on the Effective Date (which principal amounts shall be reduced as a result of the application of prepayments made after the Effective Date in accordance with the order of priority set forth in Section 2.05 of the Credit Agreement), on the last Business Day of each March, June, September and December (commencing on the last Business Day of the fiscal quarter ending June 30, 2017); provided, however, that the final principal repayment installment of the Term B-1 Loans shall be repaid on the Incremental Term Loan Maturity Date therefor and in any event shall be in an amount equal to the aggregate principal amount of all Term B-1 Loans outstanding on such date.
(d)    The “Applicable Rate” for Term B-1 Loans shall be (i) in the case the Consolidated Net Leverage Ratio is greater than 3.75:1, 1.75% per annum for Base Rate Loans and 2.75% per annum for Eurodollar Rate Loans and (ii) in the case the Consolidated Net Leverage Ratio is less than or equal to 3.75:1, 1.50% per annum for Base Rate Loans and 2.50% per annum for Eurodollar Rate Loans.  Initially, the Applicable Rate in respect of the Term B-1 Loans shall be determined based on the pricing level set forth in clause (i) of the immediately preceding sentence.  Thereafter, each increase or decrease in the Applicable Rate in respect of the Term B-1 Loans resulting from a change in the Consolidated Net Leverage Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 6.04(c); provided, however, that if a Compliance Certificate is not delivered within ten (10) days after the time periods specified in such Section 6.04(c), then the pricing level set forth in clause (i) of the first sentence of this definition of “Applicable Rate” shall apply as of the first Business Day thereafter, subject to prospective adjustment upon actual receipt of such Compliance Certificate.  Notwithstanding anything to the contrary contained in this definition, the determination of the Applicable Rate in respect of the Term B-1 Loans shall be subject to the provisions of Section 2.10(b)of the Credit Agreement.
(e)    At the time of the effectiveness of any Repricing Transaction (as defined below) that is consummated prior to the six (6) month anniversary of the Effective Date, the Borrowers agree to pay to the Administrative Agent, for the ratable account of each Term Lender with Term B-1 Loans that are either prepaid, repaid converted or otherwise subjected to a pricing reduction in connection with such Repricing Transaction (including, if applicable, any Non-Consenting Lender required to assign its Term B-1 Loans in connection therewith), a fee in an amount equal to 1.00% of (x) in the case of a Repricing Transaction described in clause (i) of the definition thereof, the 

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aggregate principal amount of all Term B-1 Loans prepaid, refinanced, converted, substituted or replaced in connection with such Repricing Transaction and (y) in the case of a Repricing Transaction described in clause (ii) of the definition thereof, the aggregate principal amount of all Term B-1 Loans outstanding on such date that are subject to an effective pricing reduction pursuant to such Repricing Transaction. Such fees shall be earned, due and payable upon the date of the effectiveness of such Repricing Transaction. As used above, the term  “Repricing Transaction” means (i) any voluntary prepayment or repayment of all or a portion of the Term B-1 Loans with the proceeds of, or any conversion or replacement of Term B-1 Loans into, any new, converted or replacement syndicated term loans the primary purpose of which is to reduce the All-In Yield of such term loans relative to the All-In Yield of the Term B-1 Loans that are so prepaid, repaid or converted and (ii) any amendment to the Credit Agreement the primary purpose of which is to reduce the All-In Yield applicable to the Term B-1 Loans; provided that the prepayment, refinancing or replacement of the Term B-1 Loans in connection with a Change of Control shall not constitute a Repricing Transaction.
(f)    The other terms and provisions of the Term B-1 Loans shall be (except as otherwise set forth herein) identical to the Initial Term Loans.  Without limitation of the foregoing, the Term B-1 Loans shall have the same terms with respect to voluntary and mandatory prepayments as the Initial Term Loans (except as set forth above with respect to repricing protection) and shall rank pari passu in right of payment and of security with the Revolving Credit Loans on the same terms as the Initial Term Loans.
(g)    The parties hereto agree and acknowledge that for all purposes (i) this Amendment shall be considered an “Increase Joinder”, (ii) the Term B-1 Loans provided herein shall be considered “Incremental Term Loans” and “Term Loans”, (iii) each Incremental Lender shall be considered a “Lender”, (iv) the term loan facility provided hereunder shall be considered an “Incremental Facility”, and (v) the commitment of each Incremental Lender hereunder to make Term B-1 Loans pursuant to the terms hereof shall be considered an “Incremental Term Commitment”, in each case as such terms are defined in and used in the Credit Agreement.
(h)    The Borrowers agree that, promptly upon the request to the Administrative Agent by any Incremental Lender, in order to evidence such Incremental Lender’s Term B-1 Loan, the Borrowers will execute and deliver to such Incremental Lender a promissory note in form and substance as reasonably requested by the Administrative Agent, with appropriate insertions as to payee, date and principal amount, payable to such Incremental Lender and in a principal amount equal to the unpaid principal amount of the Term B-1 Loan made by such Incremental Lender to the Borrowers.  
(i)    Each New Lender (i) confirms that it has received a copy of the Credit Agreement and the other Loan Documents and the exhibits and schedules thereto, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement; (ii) agrees that it will, independently and without reliance upon the Administrative Agent, the collateral agent, or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement; (iii) appoints and authorizes the Administrative Agent and the collateral agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement and the other Loan Documents as are delegated to the Administrative Agent or the collateral agent, as the case may be, by the terms thereof, together with such powers as are reasonably incidental thereto; 

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and (iv) agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender, as the case may be.  Each New Lender acknowledges and agrees that it shall become a “Lender” under, and for all purposes of, the Credit Agreement and the other Loan Documents, and shall be subject to and bound by the terms thereof, and shall have all rights of a Lender thereunder. 
(j)    The Lenders party hereto (which constitute Required Lenders), and the Administrative Agent hereby waive the requirement under Section 2.05(a) of the Credit Agreement to provide notice to the Administrative Agent not less than three (3) Business Days prior to the prepayment of the Initial Term Loans to be made hereunder. It is understood and agreed that this Agreement shall serve as the notice referred to in Section 2.05(a) of the Credit Agreement.
(k)    Pursuant to this Amendment, the Borrower hereby requests a Term Borrowing of Term B-1 Loans in an aggregate principal amount of $349,125,000, with such Borrowing to be made on the Effective Date and to have an Interest Period ending on May 17, 2017 (and each Incremental Lender hereby consents thereto). 
(l)    For purposes of the Credit Agreement, the initial notice address of each New Lender shall be as separately identified to the Administrative Agent.  
(m)    For each New Lender, solely to the extent relevant and applicable, delivered herewith to the Administrative Agent are such forms, certificates or other evidence with respect to United States federal income tax withholding matters as such New Lender may be required to deliver to the Administrative Agent pursuant to Section 3.01(e) of the Credit Agreement.
(n)    The Lenders party hereto (which constitute Required Lenders), the Borrowers and the Administrative Agent agree that the definition of “Maximum Increase Amount” set forth in Section 1.01 of the Credit Agreement shall be amended to read as follows:
“Maximum Increase Amount” means an amount not to exceed the greater of (i) the sum of (A) $100,000,000 plus (B) the aggregate amount of all voluntary prepayments and repurchases of Term Loans under the Term Facility and voluntary permanent reductions of commitments under the Revolving Credit Facility (including any voluntary prepayments and repurchases of Term Loans under the Term Facility and voluntary permanent reductions of commitments under the Revolving Credit Facility being made contemporaneously with Loans advanced under Incremental Commitments funded pursuant to Section 2.14 under clause (i) of this definition but excluding any amount of prepayments, repurchases and repayment reductions that have been utilized by the Borrowers to incur Indebtedness pursuant to clause (B) of Section 7.03(j) or with Loans advanced under Incremental Commitments funded pursuant to Section 2.14 under clause (ii) of this definition) and (ii) any additional amount so that, after giving effect to such proposed Incremental Facility (measured assuming any Incremental Revolving Commitment 

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is fully drawn) any repayment of other indebtedness in connection therewith and any other acquisition, disposition, debt incurrence, debt retirement and all appropriate pro forma adjustment events (including events occurring subsequent to the end of the applicable test period and on or prior to the date of such incurrence), the Consolidated Secured Net Leverage Ratio as of the last day of the most recently ended period of four consecutive fiscal quarters for which financial statements have been delivered is not greater than 4.00 to 1.00.
3.    Representations and Warranties.  By its execution hereof, each Borrower hereby represents and warrants to the Administrative Agent and the Incremental Lenders as follows:
(a)No Default has occurred and is continuing or will result from the borrowings of the Term B-1 Loans on the Effective Date.
(b)The representations and warranties contained in Article V of the Credit Agreement and the other Loan Documents are true and correct in all material respects on and as of the Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall have been true and correct in all material respects as of such earlier date, and except that the representations and warranties contained in Section 5.05(a) of the Credit Agreement shall be deemed to refer to the most recent financial statements furnished pursuant to subsections (a) and (b), respectively, of Section 6.04 of the Credit Agreement.
(c)The execution, delivery and performance of this Amendment and the transactions contemplated hereby and thereby (i) are within the corporate (or the equivalent company or partnership) authority of each of the Borrowers, (ii) have been duly authorized by all necessary corporate (or other) proceedings, (iii) do not conflict with or result in any material breach or contravention of any Applicable Law to which any of the Borrowers is subject or any judgment, order, writ, injunction, license or permit applicable to any of the Borrowers so as to materially adversely affect the assets, business or any activity of the Borrowers, and (iv) do not conflict with any provision of the corporate charter, articles or bylaws (or equivalent other entity or partnership documents) of the Borrowers or any material agreement or other material instrument binding upon the Borrowers.
(d)This Amendment has been, duly executed and delivered by the Borrowers.  The execution, delivery and performance of this Amendment will result in valid and legally binding obligations of the Borrowers enforceable against each in accordance with the respective terms and provisions hereof, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium, or other Applicable Laws relating to or affecting generally the enforcement of creditors’ rights and except to the extent that availability of the remedy of specific performance or injunctive relief or other equitable remedy is subject to the discretion of the court before which any proceeding therefor may be brought.
(e) The execution, delivery, and performance by the Borrowers of this Amendment and the transactions contemplated hereby and thereby, and the exercise by the Administrative Agent or the Incremental Lenders of their respective rights and remedies hereunder, do not require any approval or consent of, or filing with, any Governmental Authority or other Person other than (i) those already obtained, and copies of which have been delivered to the Administrative Agent, and (ii) those permitted to be undertaken after the Closing Date.   

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4.    Conditions to Effectiveness.  This Amendment (including the Incremental Term Commitment set forth herein) shall become effective upon the date on which all of the following conditions precedent have been satisfied (or otherwise waived in accordance with Section 10.01 of the Credit Agreement): 
(a)    Counterparts of this Amendment.  Receipt by the Administrative Agent of counterparts of this Amendment executed by (i) a Responsible Officer of each of the Borrowers, (ii) each of the Term Lenders (other than any Term Lender that ceases to be a Term Lender in connection with the Incremental Term Commitment), and (iii) each Incremental Lender providing any portion of the Incremental Term Commitment on the Effective Date.
(b)    Notes.  To the extent requested not later than two Business Days prior to the Effective Date, the Administrative Agent shall have received Term Notes, if any, executed by the Borrowers in favor of each Lender providing a portion of the Incremental Term Commitment that requests such Term Notes, whether in replacement of existing Term Notes or otherwise (provided that the delivery of any Term Note in replacement of an existing Term Note pursuant to this subsection (b) shall be subject to the prompt return after such delivery of such existing Term Note to the Borrowers for cancellation); provided that any failure to request such a Term Note in connection with the Effective Date shall not limit the ability of any Lender to request a Note from time to time pursuant to the Credit Agreement. 
(c)    Responsible Officer’s Certificate(s).  Receipt by the Administrative Agent from the Parent or the applicable Borrower, of copies of one or more certificates, each in form and substance reasonably satisfactory to the Administrative Agent and together with all attachments identified below, executed by a Responsible Officer of the Parent or applicable Borrower, certifying in his/her capacity as such, that as of the Effective Date:
(i)    Resolutions.  The attached resolutions or written consent (approving and adopting this Amendment, the Incremental Term Commitment and the other transactions set forth herein, authorizing the execution, delivery and performance of this Amendment and duly adopted by the board of directors, board of managers or other appropriate governing body of the Borrowers) is a true and correct copy thereof and in full force and effect on the Effective Date.
(ii)    Organization Documents.  The Organization Documents (including all amendments thereto) of the Borrowers (A) have not been modified, amended, rescinded or replaced since such Organization Documents were last delivered to the Administrative Agent  and continue to be in full force and effect as of the Effective Date or (B) are attached thereto and are true and correct copies thereof, in full force and effect as of the Effective Date and, in the case of the certificate of formation or articles of incorporation or organization (as the case may be) under this clause (B), shall be certified as of a recent date by the appropriate Governmental Authority in each applicable Borrower’s jurisdiction of incorporation or formation.
(iii)    Good Standing Certificates.  Such document(s) and certification(s) as reasonably required by the Administrative Agent to evidence that each Borrower is duly organized or formed, validly existing, in good standing (to the extent applicable) and qualified to engage in business in such Borrower’s jurisdiction of incorporation or formation as of the Effective Date.

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(iv)    Incumbency.  Each Responsible Officer identified on the attached incumbency certificate is authorized to execute this Amendment and any other Loan Document, certificate and other document being delivered in connection herewith or therewith.
(v)    Maximum Increase Amount. The aggregate amount of the Term B-1 Loans do not exceed the Maximum Increase Amount pursuant to clause (ii) of the definition thereof (after giving effect to the contemporaneous repayment of the Initial Term Loans).
(d)    Opinions.  Receipt by the Administrative Agent of an opinion or opinions of counsel for certain of the Borrowers requested by the Administrative Agent, dated the Effective Date and addressed to the Administrative Agent and the Incremental Lenders, in form and substance reasonably acceptable to the Administrative Agent (which shall include, without limitation, opinions with respect to the enforceability of this Amendment under New York law, the valid existence of such Borrowers and opinions as to the non-contravention of such Borrowers’ organizational documents).
(e)    PATRIOT Act.  The Parent and each of the other Borrowers shall have provided to the Administrative Agent and the Incremental Lenders all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the USA PATRIOT Act, that has been reasonably requested in writing not less than ten days prior to the Effective Date.
(f)    Prepayment of Term Loans.  Concurrently with the Effective Date and the incurrence of the Term B-1 Loans, (i) the Initial Term Loans of each Incremental Lender that is a Term Lender intending to convert all or a portion of its Initial Term Loans to Term B-1 Loans shall be prepaid (whether by cashless roll or cash settlement, as elected by each such Incremental Lender) in an amount equal to the Term B-1 Loans provided by such Incremental Lender (or, if less, all of such Incremental Lender’s converted Initial Term Loans), and (ii) the Initial Term Loans of all other Term Lenders shall be prepaid, in each case with all accrued and unpaid interest on the prepaid Initial Term Loans and, except to the extent waived by the Incremental Lenders pursuant to Section 1 hereof, and any amounts required under Section 3.05 of the Credit Agreement.  In addition, concurrently with the Effective Date the Administrative Agent shall make such other adjustments as are necessary so that each Lender’s respective share of the Term B-1 Loans shall be consistent with Annex I.
(g)    Fees.  The Borrowers shall have paid on or before the Effective Date, to the Person to whom such fees are owing, any fees required to be paid pursuant to the Fee Letter relating to this Amendment dated as of March 31, 2017, between the Parent and MLPFS.
(h)    Expenses.  Unless waived by the Administrative Agent, the Borrowers shall have paid (or concurrently with the Effective Date shall pay) all reasonable out-of-pocket expenses incurred by Merrill Lynch, Pierce Fenner & Smith Incorporated in its capacity as Lead Arranger  and the Administrative Agent (limited, in the case of legal fees and expenses to one primary counsel) to the extent invoiced at least two Business Days (or such shorter period as the Borrowers may agree) prior to the Effective Date; provided that any such invoice shall not thereafter preclude a final settling of accounts between the Borrowers, the Administrative Agent and Merrill Lynch, Pierce Fenner & Smith Incorporated.

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Without limiting the generality of the provisions of the last paragraph of Section 9.03 of the Credit Agreement or the Credit Agreement, for purposes of determining compliance with the conditions specified in this Section 4, each Lender that has signed this Amendment shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Effective Date specifying its objection thereto.
5.    Effect of this Amendment.  Each Borrower agrees that, except as expressly provided herein, (a) the Credit Agreement, the Security Agreement, the Pledge Agreement, each other Security Document and each other Loan Document shall remain unmodified and in full force and effect, and (b) this Amendment shall not be deemed to (i) be a waiver of, consent to, a modification of or amendment to any other term or condition of the Credit Agreement, the Security Agreement, the Pledge Agreement, any other Security Document any other Loan Document or any other agreement by and among any of the Borrowers, on the one hand, and the Administrative Agent or any Lender, on the other hand, (ii) prejudice any right or rights which the Administrative Agent or the Lenders may now have or may have in the future under or in connection with the Credit Agreement, the Security Agreement, the Pledge Agreement, any other Security Document, any other Loan Document or any of the instruments or agreements referred to therein, as the same may be amended, restated, supplemented or otherwise modified from time to time, or (iii) be a commitment or any other undertaking or expression of any willingness to engage in any further discussion with the Borrowers or any other Person with respect to any waiver, amendment, modification or any other change to the Credit Agreement, the Security Agreement, the Pledge Agreement, any other Security Document, or any other Loan Document or any rights or remedies arising in favor of the Administrative Agent or the Lenders under or with respect to any such documents.  References in the Credit Agreement to “this Agreement” (and indirect references such as “hereunder”, “hereby”, “herein” and “hereof”) and in any other Loan Document to the “Credit Agreement” shall be deemed to be references to the Credit Agreement as modified hereby.  This Amendment shall be deemed incorporated into, and a part of, the Credit Agreement, and shall constitute a “Loan Document” under and as defined in the Credit Agreement.
6.    Reaffirmation.  Each Borrower (a) acknowledges and consents to all of the terms and conditions of this Amendment, (b) confirms and reaffirms all of its obligations under the Loan Documents, (c) confirms and reaffirms that each of the Liens granted in or pursuant to the Loan Documents are valid and subsisting as security for the payment and performance of the Obligations outstanding on the Effective Date immediately prior to the effectiveness of the amendments provided by this Amendment and any Obligations outstanding at any time thereafter under the Credit Agreement, and (d) agrees that this Amendment and all documents executed in connection herewith (i) do not operate to reduce or discharge such Borrower’s obligations under the Loan Documents (other than the Initial Term Loans) and (ii) in no manner impair or otherwise adversely affect any of the Liens granted in or pursuant to the Loan Documents.
7.    Miscellaneous.
(a)    This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns.
(b)    THIS AMENDMENT IS SUBJECT TO THE PROVISIONS OF SECTIONS 10.17 AND 10.18 OF THE CREDIT AGREEMENT, AS APPLICABLE, RELATING TO GOVERNING LAW, VENUE AND WAIVER OF RIGHT TO TRIAL BY JURY, THE PROVISIONS OF WHICH ARE BY THIS REFERENCE INCORPORATED HEREIN IN FULL.

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(c)    This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Amendment and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile or other electronic imaging means (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Amendment.  This Amendment may not be amended except in accordance with the provisions of Section 10.01 of the Credit Agreement.
(d)    If any provision of this Amendment or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Amendment and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  
8.    FATCA. For purposes of determining withholding Taxes imposed under the Foreign Account Tax Compliance Act (FATCA), from and after the Effective Date, the Borrowers and the Administrative Agent shall treat (and the Incremental Lenders hereby authorize the Administrative Agent to treat) the Loans under the Credit Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i). 
 [Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.

BORROWERS:

CASELLA WASTE SYSTEMS, INC.

By:   /s/ Edmond R. Coletta     
Name:    Edmond R. Coletta
Title:    Senior Vice President and Chief Financial Officer

ALL CYCLE WASTE, INC.
BLOW BROS.
BRISTOL WASTE MANAGEMENT, INC.
C.V. LANDFILL, INC.
CASELLA MAJOR ACCOUNT SERVICES, LLC
CASELLA RECYCLING, LLC 
CASELLA RENEWABLE SYSTEMS, LLC
CASELLA TRANSPORTATION, INC.
CASELLA WASTE MANAGEMENT OF MASSACHUSETTS, INC.
CASELLA WASTE MANAGEMENT OF N.Y., INC.
CASELLA WASTE MANAGEMENT OF PENNSYLVANIA, INC.
CASELLA WASTE MANAGEMENT, INC.
CASELLA WASTE SERVICES OF ONTARIO LLC
CHEMUNG LANDFILL LLC
COLEBROOK LANDFILL LLC
FOREST ACQUISITIONS, INC.
GRASSLANDS INC.
GROUNDCO LLC
HAKES C&D DISPOSAL, INC.
HARDWICK LANDFILL, INC.
HIRAM HOLLOW REGENERATION CORP.
KTI BIO FUELS, INC.
KTI ENVIRONMENTAL GROUP, INC.

By:   /s/ Edmond R. Coletta     
Name:  Edmond R. Coletta 
Title:    Vice President and Treasurer

Casella Waste Systems, Inc.
First Amendment to Credit Agreement
Signature Page

KTI OPERATIONS, INC.
KTI SPECIALTY WASTE SERVICES, INC.
KTI, INC.
MAINE ENERGY RECOVERY COMPANY, LIMITED PARTNERSHIP
NEW ENGLAND WASTE SERVICES OF ME, INC.
NEW ENGLAND WASTE SERVICES OF N.Y., INC.
NEW ENGLAND WASTE SERVICES OF VERMONT, INC.
NEW ENGLAND WASTE SERVICES, INC.
NEWBURY WASTE MANAGEMENT, INC.
NEWSME LANDFILL OPERATIONS LLC
NEWS OF WORCESTER LLC
NORTH COUNTRY ENVIRONMENTAL SERVICES, INC.
NORTHERN PROPERTIES CORPORATION OF PLATTSBURGH
OXFORD TRANSFER STATION, LLC
PINE TREE WASTE, INC.
SCHULTZ LANDFILL, INC.
SOUTHBRIDGE RECYCLING & DISPOSAL PARK, INC.
SUNDERLAND WASTE MANAGEMENT, INC.
THE HYLAND FACILITY ASSOCIATES
TOMPKINS COUNTY RECYCLING LLC
WASTE-STREAM INC.

By:   /s/ Edmond R. Coletta     
Name:  Edmond R. Coletta 
Title:    Vice President and Treasurer

Casella Waste Systems, Inc.
First Amendment to Credit Agreement
Signature Page

BANK OF AMERICA, N.A., 
as Administrative Agent and a Term B-1 Lender

By:   /s/ Michael Contreras     
Name:    Michael Contreras
Title:    Vice President

Casella Waste Systems, Inc.
First Amendment to Credit Agreement
Signature Page

 [Lender signature pages on file with Administrative Agent.]

    
    

Casella Waste Systems, Inc. 
First Amendment to Credit Agreement
Signature Pages

Annex I

[On file with Administrative Agent]

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