Document:

ex10-2.htm

    
      

    

    Exhibit
      10.2

     

    THIS
      NOTE
      AND THE COMMON STOCK REFERENCED HEREIN HAVE NOT BEEN REGISTERED WITH OR APPROVED
      OR DISAPPROVED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR ANY
      STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY AND ARE BEING OFFERED
      PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE UNITED STATES SECURITIES
      ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).

     

    THE
      SALE,
      ASSIGNMENT, CONVEYANCE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE SECURITIES
      REPRESENTED BY THIS NOTE OR THE UNDERLYING COMMON STOCK TO U.S. PERSONS, AS
      DEFINED IN RULE 902(k) PROMULGATED UNDER THE SECURITIES ACT, IS PROHIBITED
      EXCEPT (1) PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT
      TO
      AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT.

     

    This
      note is one of a series of notes
      (the “Bridge Notes”) issued in the aggregate principal amount of
      $2,000,000.

     

    APPLIED
      DNA SCIENCES, INC.

     

    
      	September
              ___, 2007	 	
              $________________

            

    

     

    10%
      SECURED CONVERTIBLE PROMISSORY NOTE

     

    Applied
      DNA Sciences, Inc., a Nevada corporation (the “Company”), for value received,
      hereby promises to pay to ______________________________ (the “Holder,” which
      term shall in every instance refer to any owner or holder of this Note) at
      ________________________________ or at any other place that the Holder may
      designate in writing to the Company, on September __, 2008 (the “Maturity
      Date”), the principal sum of _____________________ THOUSAND AND NO/100 DOLLARS
      ($______) in such coin or currency of the United States of America as at the
      time of payment shall be legal tender for the payment of public and private
      debts, and to pay interest on the outstanding principal sum hereof at the rate
      of ten percent (10%) per annum.  Payment of principal and accrued and
      unpaid interest, if any, shall be payable on the Maturity Date in like coin
      or
      currency to the Holder hereof at the address of the Holder on file with the
      Company or at such other place as the Holder shall have notified the Company
      in
      writing at least five (5) days before the Maturity Date, provided that any
      payment otherwise due on a Saturday, Sunday or legal bank holiday may be paid
      on
      the following business day.

     

    This
      Note
      is secured by a security interest in all the assets of the Company as set forth
      in Section 4 hereof (the “Security Agreement”).  Reference herein to
      the Security Agreement shall in no way impair the absolute and unconditional
      obligation of the Company to pay both principal and interest hereon as provided
      herein.

     

    The
      rights and remedies of the Holder hereunder are subject to the terms and
      conditions of the Security Agreement and the provisions of the Uniform
      Commercial Code as enacted in the State of Nevada including, without limitation,
      powers with respect to the enforceability and collectibility of all amounts
      due
      hereunder.  Reference to the Uniform Commercial Code of the State of
      Nevada is made for a complete description of the rights, powers and obligations
      of the Holder.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

    1.  Transfers
      of Note to Comply with the Securities Act

     

    THE
      HOLDER AGREES THAT THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION
      OF
      THE NOTE MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE
      DISPOSED OF EXCEPT (1) PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT OR
      (2)
      PURSUANT TO AN AVAILABLE EXEMPTION THEREFROM.

     

    2.  Prepayment;
      Repayment Upon Consolidation or Merger

     

    (a)  The
      principal amount of this Note may be prepaid by the Company, in whole or in
      part, on three days prior written notice without premium or penalty, at any
      time.  Upon any prepayment of the entire principal amount of this
      Note, all accrued, but unpaid, interest shall be paid to the Holder on the
      date
      of prepayment.  The date upon which the Company prepays the principal
      plus all accrued and unpaid interest due on this Note shall be hereinafter
      referred to as the “prepayment date.”

     

    (b)  This
      Note
      shall be paid in full, without premium, in the event the Company consolidates
      or
      merges with another corporation, unless (i) the Company shall be the surviving
      corporation in such consolidation or merger or (ii) the other corporation
      controls, is under common control with or is controlled by the Company
      immediately prior to the consolidation or merger whether or not the Company
      shall be the surviving corporation in such consolidation or merger, in which
      event this Note shall remain outstanding as an obligation of the consolidated
      or
      surviving corporation.

     

    3.  Conversion
      of Note

     

    (a)  This
      Note
      and any accrued and unpaid interest hereon shall automatically convert on the
      first anniversary of the date hereof into fully paid and non-assessable shares
      of Common Stock of the Company, par value $0.001 per share (the “Common Stock”),
      at a price equal to 70% of the average volume weighted average price of the
      Common Stock for the ten trading days prior to the Closing Date (the
“Automatic Conversion Price”).

     

    (b)  The
      Holder shall have the right at any time on or prior to the first anniversary
      of
      the date hereof, to convert all or any part of the entirety of the principal
      and
      accrued but unpaid interest then outstanding under this Note into that number
      of
      fully paid and non-assessable shares of Common Stock at a price equal to the
      greater of (i) 50% of the average price of the Common Stock for the ten trading
      days prior to the date the Company receives the notice of conversion, rounded
      up
      to the nearest whole share, and (ii) the Automatic Conversion
      Price.

     

    4.  Security
      Agreement.  In order to secure the obligations of the Company
      under this Note and the Bridge Notes, the Company hereby grants a security
      interest in all of the assets of the Company, which security interest is
pari passu with the security interest granted to the holders of
      $150,000 of $50,000 principal amount secured convertible promissory notes of
      the
      Company bearing interest at 10% per annum issued on June 27, 2007 (the “June
      Notes”), with the security interest granted to James A. Hayward, a director, the
      Chairman of the Board of Directors, our President and Chief Executive Officer,
      for an aggregate principal amount of $550,000 in secured convertible promissory
      notes of the Company bearing interest at 10% per annum issued on April 23,
      2007,
      June 30, 2007 and July 30, 2007 (the “Hayward Notes”), and with the security
      interest granted to the holder of a $100,000 principal amount secured
      convertible promissory note of the Company bearing interest at 10% per annum
      issued on August 8, 2007 (the “August Note”).  The Company reserves
      the right to issue $19,200,000 of debt in addition to amounts sold in the
      offering, of which the Bridge Notes are a part, secured by a security interest
      in all of the Company’s assets, which security interest would be pari
      passu to the security interest granted to the holders of the Notes, the
      June Notes, the Hayward Notes and the August Note.

     

    
      
        
        

      

      
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    5.  Events
      of Default and Remedies

     

    (a)  Any
      one
      or more of the following events (each an “Event of Default”) which shall have
      occurred and be continuing shall constitute an event of default:

     

    (i)  A
      default
      in the payment of the principal or accrued interest on this Note or upon any
      other indebtedness of the Company after the date hereof that is greater than
      $100,000, as and when the same shall become due, whether by default or
      otherwise, which default shall have continued for a period of five (5) business
      days; or

     

    (ii)  Any
      representation or warranty made by the Company or any officer of the Company
      in
      the Notes, or in any agreement, report, certificate or other document delivered
      to the Holder pursuant to the Notes shall have been incorrect in any material
      respect when made which shall not have been remedied ten (10) days after written
      notice thereof shall have been given by the Holder; or

     

    (iii)  The
      Company or any subsidiary (A) shall institute any proceeding or voluntary case
      seeking to adjudicate it bankrupt or insolvent, or seeking dissolution,
      liquidation, winding up, reorganization, arrangement, adjustment, protection,
      relief or composition of it or its debts under any law relating to bankruptcy,
      insolvency or reorganization or relief of debtors, or seeking the entry of
      any
      order for relief or the appointment of a receiver, trustee, custodian or other
      similar official for such the Company or any subsidiary or for any substantial
      part of its property, or shall consent to the commencement against it of such
      a
      proceeding or case, or shall file an answer in any such case or proceeding
      commenced against it consenting to or acquiescing in the commencement of such
      case or proceeding, or shall consent to or acquiesce in the appointment of
      such
      a receiver, trustee, custodian or similar official; (B) shall be unable to
      pay
      its debts as such debts become due, or shall admit in writing its inability
      to
      apply its debts generally; (C) shall make a general assignment for the benefit
      of creditors; or (D) shall take any action to authorize or effect any of the
      actions set forth above in this subsection 5(a)(iii); or

     

    (iv)  Any
      proceeding shall be instituted against the Company seeking to adjudicate it
      a
      bankrupt or insolvent, or seeking dissolution, liquidation, winding up,
      reorganization, arrangement, adjustment, protection, relief of debtors, or
      seeking the entry of an order for relief or the appointment of a receiver,
      trustee, custodian or other similar official for the Company or for any
      substantial part of its property, and either such proceeding shall not have
      been
      dismissed or shall not have been stayed for a period of sixty (60) days or
      any
      of the actions sought in such proceeding (including, without limitation, the
      entry of any order for relief against it or the appointment of a receiver,
      trustee, custodian or other similar official for it or for any substantial
      part
      of its property) shall occur; or

     

    (v)  One
      or
      more final judgments, arbitration awards or orders for the payment of money
      in
      excess of $1,000,000 in the aggregate shall be rendered against the Company,
      which judgment remains unsatisfied for thirty (30) days after the date of such
      entry.

     

    
      
        
        

      

      
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    (vi)  Delisting
      of the Common Stock from the principal market or exchange on which the Common
      Stock is listed for trading; the Company’s failure to comply with the conditions
      for listing; or notification that the Company is not in compliance with the
      conditions for such continued listing.

     

    (vii)  The
      issuance of an SEC stop trade order or an order suspending trading of the Common
      Stock from the principal market or exchange on which the Common Stock is listed
      for trading for longer than five (5) trading days.

     

    (viii)  The
      failure by the Company to issue shares of Common Stock to the Holder upon
      exercise by the Holder of the conversion rights of the Holder in accordance
      with
      the terms of this Note, or the failure to transfer or cause its transfer agent
      to transfer (electronically or in certificated form) any certificate for shares
      of Common Stock issued to the Holder upon conversion of or otherwise pursuant
      to
      this Note as and when required by this Note, or the failure to remove any
      restrictive legend (or to withdraw any stop transfer instructions in respect
      thereof) on any certificate for any shares of Common Stock issued to the Holder
      upon conversion of or otherwise pursuant to this Note as and when required
      by
      this Note, and any such failure shall continue uncured for ten (10) days after
      the Company shall have been notified thereof in writing by the
      Holder;

     

    (ix)  Except
      as
      permitted herein, the Company shall encumber or hypothecate the collateral
      subject to the Security Agreement to any party;

     

    (b)  In
      the
      event of and immediately upon the occurrence of an Event of Default, the Note
      shall become immediately due and payable without any action by the Holder and
      the Note shall bear interest until paid at the rate of ten percent (10%) per
      annum. If an Event of Default occurs and is continuing, Holder may pursue any
      available remedy to collect the payment of all amounts due under the Note or
      to
      enforce the performance of any provision of the Note. No waiver of any default
      under the Note shall be construed as a waiver of any subsequent default, and
      the
      failure to exercise any right or remedy thereunder shall not waive the right
      to
      exercise such right or remedy thereafter.

     

    (c)  The
      Company covenants that in case the principal of, and accrued interest on, the
      Note becomes due and payable by declaration or otherwise, then the Company
      will
      pay in cash to the Holder of this Note, the whole amount that then shall have
      become due and payable on this Note for principal or interest, as the case
      may
      be, and in addition thereto, such further amount as shall be sufficient to
      cover
      the costs and expenses of collection, including reasonable fees and
      disbursements of the Holder’s legal counsel. In case the Company shall fail
      forthwith to pay such amount, the Holder may commence an action or proceeding
      at
      law or in equity for the collection of the sums so due and unpaid, and may
      prosecute any such action or proceeding to judgment or final decree against
      Company or other obligor upon this Note, wherever situated, the monies
      adjudicated or decreed to be payable.

     

    (d)  The
      Company agrees that it shall give notice to the Holder at its registered address
      by facsimile, confirmed by certified mail, of the occurrence of any Event of
      Default within ten (10) days after such Event of Default shall have
      occurred.

     

    
      
        
        

      

      
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    6.  Unconditional
      Obligation; Fees, Waivers, Other

     

    (a)  The
      obligations to make the payments provided for in this Note are absolute and
      unconditional and not subject to any defense, set-off, counterclaim, rescission,
      recoupment or adjustment whatsoever.

     

    (b)  If,
      following the occurrence of an Event of Default, Holder shall seek to enforce
      the collection of any amount of principal of and/or interest on this Note,
      there
      shall be immediately due and payable from the Company, in addition to the then
      unpaid principal of, and accrued unpaid interest on, this Note, all costs and
      expenses incurred by Holder in connection therewith, including, without
      limitation, reasonable attorneys’ fees and disbursements.

     

    (c)  No
      forbearance, indulgence, delay or failure to exercise any right or remedy with
      respect to this Note shall operate as a waiver or as an acquiescence in any
      default, nor shall any single or partial exercise of any right or remedy
      preclude any other or further exercise thereof or the exercise of any other
      right or remedy.

     

    (d)  This
      Note
      may not be modified or discharged (other than by payment or conversion) except
      by a writing duly executed by the Company and Holder.

     

    (e)  Holder
      hereby expressly waives demand and presentment for payment, notice of
      nonpayment, notice of dishonor, protest, notice of protest, bringing of suit,
      and diligence in taking any action to collect amounts called for hereunder,
      and
      shall be directly and primarily liable for the payment of all sums owing and
      to
      be owing hereon, regardless of and without any notice, diligence, act or
      omission with respect to the collection of any amount called for hereunder
      or in
      connection with any right, lien, interest or property at any and all times
      which
      the Company had or is existing as security for any amount called for
      hereunder.

     

    7.  Miscellaneous

     

    (a)  The
      headings of the various paragraphs of this Note are for convenience of reference
      only and shall in no way modify any of the terms or provisions of this
      Note.

     

    (b)  This
      Note
      has been issued by the Company pursuant to authorization of the Board of
      Directors of the Company.

     

    All
      notices required or permitted to be given hereunder shall be in writing and
      shall be deemed to have been duly given when personally delivered or sent by
      registered or certified mail (return receipt requested, postage prepaid),
      facsimile transmission or overnight courier to the Holder at the address in
      the
      records of the Company, to the Company at 25 Health Sciences Dr., Stony Brook,
      New York 11790 or at such other address as the intended recipient shall have
      hereafter given to the other party hereto pursuant to the provisions of this
      Note.

     

    (c)  The
      Company may consider and treat the entity in whose name this Note shall be
      registered as the absolute owner thereof for all purposes whatsoever (whether
      or
      not this Note shall be overdue) and the Company shall not be affected by any
      notice to the contrary. Subject to the limitations herein stated, the registered
      owner of this Note shall have the right to transfer this Note by assignment,
      and
      the transferee thereof shall, upon his registration as owner of this Note,
      become vested with all the powers and rights of the transferor. Registration
      of
      any new owners shall take place upon presentation of this Note to the Company
      at
      its principal offices, together with a duly authenticated assignment. In case
      of
      transfer by operation of law, the transferee agrees to notify the Company of
      such transfer and of his address, and to submit appropriate evidence regarding
      the transfer so that this Note may be registered in the name of the transferee.
      This Note is transferable only on the books of the Company by the holder hereof,
      in person or by attorney, on the surrender hereof, duly endorsed. Communications
      sent to any registered owner shall be effective as against all holders or
      transferees of the Note not registered at the time of sending the
      communication.

     

    
      
        
        

      

      
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    (d)  Payments
      of principal and interest shall be made as specified above to the registered
      owner of this Note. No interest shall be due on this Note for such period of
      time that may elapse between the maturity of this Note and its presentation
      for
      payment.

     

    (e)  The
      Holder shall not, by virtue, hereof, be entitled to any rights of a shareholder
      in the Company, whether at law or in equity, and the rights of the Holder are
      limited to those expressed in this Note.

     

    (f)  Upon
      receipt by the Company of evidence reasonably satisfactory to it of the loss,
      theft, destruction or mutilation of this Note, and (in the case of loss, theft
      or destruction) of reasonably satisfactory indemnification, and upon surrender
      and cancellation of this Note, if mutilated, the Company shall execute and
      deliver a new Note of like tenor and date.

     

    (g)  Except
      as
      otherwise provided herein, this Note shall be construed and enforced in
      accordance with the laws of the State of New York, without giving effect to
      the
      conflicts of law principles thereof or the actual domiciles of the parties.
      The
      Company and the Holder hereby consent to the jurisdiction of the Courts of
      the
      State of New York and the United States District Courts situated therein in
      connection with any action concerning the provisions of this Note instituted
      by
      the Holder against the Company.

     

    (h)  The
      Company and the Holder(i) agree that any legal suit, action or proceeding
      arising out of or relating to this Note shall be instituted exclusively in
      the
      New York State Supreme Court, County of New York or in the United States
      District Court for the Southern District of New York, (ii) waive any objection
      which the Holder or the Company may have now or hereafter based upon forum
      non conveniens or to the venue of any such suit, action or proceeding, and
      (iii) irrevocably consents to the jurisdiction of the New York State Supreme
      Court, County of New York and the United States District Court for the Southern
      District of New York in any such suit, action or proceeding. The Holder and
      the
      Company further agree to accept and acknowledge service of any and all process
      which may be served in any such suit, action or proceeding in the New York
      State
      Supreme Court, County of New York or in the United States District Court for
      the
      Southern District of New York and agree that service of process upon the
      Company, mailed by certified mail to the Company’s address, will be deemed in
      every respect effective service of process, in any suit, action or proceeding.
      FURTHER, THE HOLDER AND THE COMPANY HEREBY WAIVE TRIAL BY JURY IN ANY ACTION
      TO
      ENFORCE THIS NOTE AND IN CONNECTION WITH ANY DEFENSE, COUNTERCLAIM OR CROSS
      CLAIM ASSERTED IN ANY SUCH ACTION.

     

    (i)  No
      recourse shall be had for the payment of the principal or interest of this
      Note
      against any incorporator or any past, present or future stockholder officer,
      director, agent or attorney of the Company, or of any successor corporation,
      either directly or through the Company or any successor corporation, otherwise,
      all such liability of the incorporators, stockholders, officers, directors,
      attorneys and agents being waived, released and surrendered by the Holder hereof
      by the acceptance of this Note.

     

    
      
        
        

      

      
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    (j)  This
      Note
      shall bind the Company and its successors and assigns.

     

    

     

    

     

    

     

    THIS
      SPACE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS

     

    

     

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, the undersigned has duly executed and delivered this 10%
      Secured Convertible Promissory Note as of the day and year first above
      written.

     

                                                                                                                                                                                                                          
      APPLIED DNA SCIENCES, INC.

     

     

    By: 
      ________________________________________________

                                                                                                                                                                                                        Name: James
      A. Hayward

                                                                                                                                                                                                        Title: Chief
      Executive Officer

     

     

    8ex10-3.htm

    
      

    

    Exhibit
      10.3

     

    
      APPLIED
        DNA SCIENCES, INC.

      

      Applied
        DNA Sciences, Inc., a Nevada
        corporation (the “Company”), hereby certifies that, for value received,
        __________________ (the “Warrant Holder,” which term includes its successors and
        registered assigns) is entitled to purchase an aggregate of ________ shares
        of
        common stock, par value $0.001 per share, of the Company (the “Common Stock”) at
        an exercise price of $0.50 per share (the “Exercise Price”) per
        share.

      

      This
        Warrant is one of a series of
        warrants (the “Bridge Warrants”) exercisable for an aggregate of 4,000,000
        shares of common stock of the Company.

      

      1.           Exercise
        of Warrant.  This Warrant may be exercised in whole or in part at
        any time or from time to time during the four year period commencing on
        September __ 2008 and expiring at 5:00 p.m., New York City time, on September
        __, 2012 (the “Exercise Term”), or if such day is a day on which banking
        institutions in the State of New York are authorized by law to close, then
        on
        the next succeeding day which shall not be such a day, as follows:

      

      (a)           by
        presentation and surrender of this Warrant evidencing the Warrant to be
        exercised to the Company at its principal office or at the office of its
        stock
        transfer agent, if any, with the Exercise Form annexed hereto duly executed,
        and
        payment of the Exercise Price; or

      

      (b)           by
        presentation and surrender of this Warrant evidencing the Warrant to be
        exercised to the Company at its principal office or at the office of its
        stock
        transfer agent, if any, with the Exercise Form annexed hereto duly executed,
        in
        which event the Company shall issue to the Warrant Holder the number of shares
        of Common Stock underlying this Warrant (the “Warrant Shares”) determined based
        on the following formula:

      

      X
        =
        Y*(A-B)/A

      

      where:

      

      X
        means the number of Warrant Shares to
        be issued to the Warrant Holder.

      

      Y
        means the number of Warrant Shares
        with respect to which this Warrant is being exercised.

      

      A
        means the fair market value of one
        share of Common Stock as determined in accordance with the provisions of
        this
        Section.

      

      B
        means the Exercise
        Price.

      

      The
“fair
        market value” of one share of
        Common Stock means the average of the closing bid prices of the Common Stock
        on
        The Over The Counter Bulletin Board or any national securities exchange on
        trading days during the 12 months immediately preceding the effective date
        of
        exercise of the Warrant and, if there is no active public market for the
        Common
        Stock, the fair market value shall be the price determined in good faith
        by the
        Board of Directors of the Company.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      If
        any Warrant should be exercised in
        part only, the Company shall, upon surrender of this Warrant for cancellation
        and presentment of the Exercise Form, execute and deliver new a Warrant or
        Warrants, as the case may be, evidencing the rights of the Warrant Holder
        thereof to purchase the balance of the shares purchasable
        thereunder.

      

      Upon
        receipt by the Company of this
        Warrant at its office, or by the stock transfer agent of the Company at its
        office, in proper form for exercise together with the payment of the Exercise
        Price, unless this Warrant is being exercised pursuant to the cashless exercise
        option, in which case no payment is required, the Warrant Holder shall be
        deemed
        to be the holder of record of the Warrant Shares, notwithstanding that the
        stock
        transfer books of the Company shall then be closed or that certificates
        representing such Warrant Shares shall not then be actually delivered to
        the
        Warrant Holder.  Certificates for the Warrant Shares shall be
        delivered to the Warrant Holder within a reasonable time following the exercise
        of this Warrant in accordance with the foregoing.

      

      2.           Alternative
        Exercise Provisions. Anything contained herein to the contrary
        notwithstanding, subject to compliance by the Warrant Holder with the
        restrictions on offer and sale referred to in Section 11 hereof, the Warrant
        Holder, at its option, may exercise this Warrant, in whole or in part, during
        the Exercise Term by delivering to the Company a confirmation slip issued
        by a
        brokerage firm that is a member of the National Association of Securities
        Dealers, Inc. or the equivalent governing body for broker-dealers in other
        nations, with respect to the sale of those number of Warrant Shares for which
        this Warrant is being exercised, together with the payment of the Exercise
        Price, unless this Warrant is being exercised pursuant to the cashless exercise
        option, in which case no payment is required, and, in such case, the Company
        shall deliver certificates representing such Warrant Shares on settlement
        date
        at the office of the Company’s stock transfer agent.

      

      3.           Reservation
        and Listing of Shares. The Company hereby agrees that at all times there
        shall be reserved for issuance and delivery upon exercise of this Warrant,
        such
        number of shares of its Common Stock as shall be required for issuance and
        delivery upon exercise of this Warrant. As long as this Warrant is outstanding,
        the Company shall use its best efforts to cause all shares of Common Stock
        issuable upon the exercise of this Warrant to be listed on The Over The Counter
        Bulletin Board or on NASDAQ or a national securities exchange, if such shares
        of
        Common Stock, as a class, are theretofore so listed.

      

      4.           Fractional
        Shares. No fractional shares or scrip representing fractional shares shall
        be issued upon the exercise of this Warrant. Any fraction of a share called
        for
        upon any exercise hereof shall be canceled. The Warrant Holder, by his
        acceptance hereof, expressly waives any right to receive any fractional share
        of
        stock or fractional Warrant upon exercise of this Warrant.

      

      5.           Exchange,
        Transfer, Assignment or Loss of Warrant. This Warrant is exchangeable,
        without expense, at the option of the Warrant Holder, upon presentation and
        surrender of this Warrant evidencing such Warrants to the Company at its
        office
        or at the office of its stock transfer agent, if any, for other Warrants
        of
        different denominations entitling the Warrant Holder thereof to purchase
        in the
        aggregate the same number of shares of Common Stock as are purchasable
        thereunder at the same respective Exercise Price. Subject to Section 11 hereof,
        upon surrender of this Warrant to the Company at its principal office or
        at the
        office of its stock transfer agent, if any, with a duly executed assignment
        form
        and funds sufficient to pay the applicable transfer tax, if any, the Company
        shall, without charge, execute and deliver new Warrant(s) in the name of
        the
        assignee named in such instrument of assignment and the original Warrant
        shall
        promptly be canceled. This Warrant may be divided or combined with other
        Warrants which carry the same rights upon presentation of this Warrant at
        the
        office of the Company or at the office of its stock transfer agent, if any,
        together with a written notice signed by the Warrant Holder hereof specifying
        the names and denominations in which new Warrants are to be issued. Upon
        receipt
        by the Company of evidence satisfactory to it of the loss, theft, destruction
        or
        mutilation of this Warrant, and, in the case of loss, theft or destruction,
        of
        reasonably satisfactory indemnification, and upon surrender and cancellation
        of
        this Warrant, if mutilated, the Company will execute and deliver new Warrants
        of
        like tenor and date.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      6.           Rights
        of the Warrant Holder. The Warrant Holder shall not, by virtue hereof, be
        entitled to any rights of a share holder of the Company until exercise of
        any
        Warrants.

      

      7.           Adjustments
        of Purchase Price and Number of Shares.

      

      (a)           Subdivision
        and Combination. If the Company shall at any time subdivide or combine the
        outstanding shares of Common Stock by way of stock split, reverse stock split
        or
        the like, the Exercise Price shall forthwith be proportionately increased
        or
        decreased.

      

      (b)           Adjustment
        in Number of Shares. Upon each adjustment of the Exercise Price pursuant to
        the provisions of paragraph 7(a), the number of shares of Common Stock issuable
        upon the exercise of this Warrant shall be adjusted to the nearest full share
        of
        Common Stock by multiplying a number equal to the Exercise Price in effect
        immediately prior to such adjustment by the number of shares of Common Stock
        issuable upon exercise of this Warrant immediately prior to such adjustment
        and
        dividing the product so obtained by the adjusted Exercise Price.

      

      (c)           Reclassification,
        Consolidation, Merger, etc. In case of any reclassification or change of the
        outstanding shares of Common Stock (other than a change in par value to no
        par
        value, or from no par value to par value, or as a result of a subdivision
        or
        combination), or in the case of any consolidation of the Company with, or
        merger
        of the Company into, another corporation (other than a consolidation or merger
        in which the Company is the surviving corporation and which does not result
        in
        any reclassification or change of the outstanding shares of Common Stock,
        except
        a change as a result of a subdivision or combination of such shares or a
        change
        in par value, as aforesaid), or in the case of a sale or conveyance to another
        corporation of all or a substantial part of the property of the Company,
        the
        Warrant Holder shall thereafter have the right to purchase the kind and number
        of shares of stock and other securities and property receivable upon such
        reclassification, change, consolidation, merger, sale or conveyance as if
        the
        Warrant Holder were the owner of the shares of Common Stock underlying this
        Warrant immediately prior to any such events at a price equal to the product
        of
        (x) the number of shares issuable upon exercise of this Warrant and (y) the
        Exercise Price in effect immediately prior to the record date for such
        reclassification, change, consolidation, merger, sale or conveyance as if
        such
        Warrant Holder had exercised this Warrant.

      

      (d)           Dividends
        and Other Distributions with Respect to Outstanding Securities. In the event
        that the Company shall at any time prior to the exercise of all Warrants
        declare
        a dividend (other than a dividend consisting solely of shares of Common Stock
        or
        a cash dividend or distribution payable out of current or retained earnings)
        or
        otherwise distribute to the holders of its Common Stock any monies, assets,
        property, rights, evidences of indebtedness, securities (other than shares
        of
        Common Stock), whether issued by the Company or by another person or entity,
        or
        any other thing of value, the Warrant Holder of the unexercised Warrants
        shall
        thereafter be entitled, in addition to the shares of Common Stock or other
        securities receivable upon the exercise thereof, to receive, upon the exercise
        of such Warrants, the same monies, property, assets, rights, evidences of
        indebtedness, securities or any other thing of value that they would have
        been
        entitled to receive at the time of such dividend or distribution. At the
        time of
        any such dividend or distribution, the Company shall make appropriate reserves
        to ensure the timely performance of the provisions of this Subsection
        7(e).

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (e)           Warrant
        After Adjustment. Irrespective of any change pursuant to this Section 7 in
        the Exercise Price or in the number, kind or class of shares or other securities
        or other property obtainable upon exercise of this Warrant, this Warrant
        may
        continue to express as the Exercise Price and as the number of shares obtainable
        upon exercise, the same price and number of shares as are stated
        herein.

      

      (f)           Statement
        of Calculation. Whenever the Exercise Price shall be adjusted pursuant to
        the provisions of this Section 7, the Company shall forthwith file at its
        principal office, a statement signed by an executive officer of the Company
        specifying the adjusted Exercise Price determined as above provided in such
        section. Such statement shall show in reasonable detail the method of
        calculation of such adjustment and the facts requiring the adjustment and
        upon
        which the calculation is based. The Company shall forthwith cause a notice
        setting forth the adjusted Exercise Price to be sent by certified mail, return
        receipt requested, postage prepaid, to the Warrant Holder.

      

      8.           Redemption
        Rights.  This Warrant may be redeemed at the option of the Company
        at a redemption price equal to $0.01 at any time subsequent to the earlier
        of
        (i) the date three years from the date of the first issuance and sale of
        a
        Bridge Warrant and (ii) the date that the Common Stock has traded on The
        Over
        the Counter Bulletin Board at or above $1.00 per share for 20 consecutive
        trading days.  The Company may exercise this right of redemption by
        written notice to the Warrant Holder together with payment of the redemption
        price.

      

      9.           Definition
        of “Common Stock”. For the purpose of this Warrant, the term “Common Stock”
shall mean, in addition to the class of stock designated as the Common
        Stock,
        $.001 par value, of the Company on the date hereof, any class of stock resulting
        from successive changes or reclassifications of the Common Stock consisting
        solely of changes in par value, or from par value to no par value, or from
        no
        par value to par value. If at any time, as a result of an adjustment made
        pursuant to one or more of the provisions of Section 7 hereof, the shares
        of
        stock or other securities or property obtainable upon exercise of this Warrant
        shall include securities of the Company other than shares of Common Stock
        or
        securities of another corporation, then thereafter the amount of such other
        securities so obtainable shall be subject to adjustment from time to time
        in a
        manner and upon terms as nearly equivalent as practicable to the provisions
        with
        respect to Common Stock contained in Section 7 hereof and all other provisions
        of this Warrant with respect to Common Stock shall apply on like terms to
        any
        such other shares or other securities.

      

      10.           Reserved.

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

         

      

      11.           Restrictions
        on Offer and Sale. THE OFFER AND SALE OF THE SECURITIES REPRESENTED HEREBY
        HAVE NOT BEEN REGISTERED WITH OR APPROVED OR DISAPPROVED BY THE UNITED STATES
        SECURITIES AND EXCHANGE COMMISSION OR ANY SECURITIES COMMISSION OR REGULATORY
        AUTHORITY AND ARE BEING OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION
        UNDER
        THE ACT.

      

      THE
        SALE, ASSIGNMENT, CONVEYANCE,
        PLEDGE, HYPOTHECATION OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS WARRANT
        IS PROHIBITED EXCEPT (1) PURSUANT TO REGISTRATION UNDER THE ACT OR (2) PURSUANT
        TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT, AND ANY CERTIFICATE
        REPRESENTING WARRANT SHARES SHALL BEAR A LEGEND TO SUCH EFFECT.

      

      12.           Notices
        to Warrant Holders. Nothing contained in this Warrant shall be construed as
        conferring upon the Warrant Holder the right to vote or to consent or to
        receive
        notice as a share holder in respect of any meetings of share holders for
        the
        election of directors or any other matter, or as having any rights whatsoever
        as
        a share holder of the Company. If, however, at any time prior to the expiration
        of this Warrant and its exercise, any of the following events shall
        occur:

      

      (a)           The
        Company shall take a record of the holders of its shares of Common Stock
        for the
        purpose of entitling them to receive a dividend or distribution payable
        otherwise than in cash, or a cash dividend or distribution payable otherwise
        than out of current or retained earnings, as indicated by the accounting
        treatment of such dividend or distribution on the books of the Company;
        or

      

      (b)           The
        Company shall offer to all the holders of its Common Stock any additional
        shares
        of capital stock of the Company or securities convertible into or exchangeable
        for shares of capital stock of the Company, or any warrant, right or option
        to
        subscribe therefor; or

      

      (c)           A
        dissolution, liquidation or winding up of the Company (other than in connection
        with a consolidation or merger) or a sale of all or substantially all of
        its
        property, assets and business shall be proposed; or

      

      (d)           There
        shall be any capital reorganization or reclassification of the capital stock
        of
        the Company, or consolidation or merger of the Company with another entity;
        then, in anyone or more of said events, the Company shall give written notice
        of
        such event at least fifteen (15) days prior to the date fixed as a record
        date
        or the date of closing the transfer books for the determination of the share
        holders entitled to such dividend, distribution, convertible or exchangeable
        securities or subscription rights, warrants or options, or entitled to vote
        on
        such proposed dissolution, liquidation, winding up or sale. Such notice shall
        specify such record date or the date of closing the transfer books, as the
        case
        may be. Failure to give such notice or any defect therein shall not affect
        the
        validity of any action taken in connection with the declaration or payment
        of
        any such dividend or distribution, or the issuance of any convertible or
        exchangeable securities or subscription rights, warrants or options, or any
        proposed dissolution, liquidation, winding up or sale.

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

         

      

      13.           Notices.

      

      (a)           All
        communications under this Warrant shall be in writing and shall be mailed
        by
        certified mail, postage prepaid, return receipt requested, or telecopied
        with
        confirmation of receipt or delivered by hand or by overnight delivery
        service:

       

      
        	                If
                to the Company at: 	Applied
                DNA Sciences, Inc.	 
	 	Attn:
                James A. Hayward, Chief Executive Officer	 
	 	25
                Health Sciences Drive, Suite 113	 
	 	Stony
                Brook, New York 11790	 

      

       

       

      If
        to the Warrant Holder, to the
        address of such Warrant Holder as it appears in the stock or warrant ledger
        of
        the Company.

      

      (b)           Any
        notice so addressed, when mailed by registered or certified mail shall be
        deemed
        to be given three days after so mailed, when telecopied shall be deemed to
        be
        given when transmitted, or when delivered by hand or overnight shall be deemed
        to be given when hand delivered or on the day following deposit with the
        overnight delivery service.

      

      14.           Successors.
        All the covenants and provisions of this Warrant by or for the benefit of
        the
        Warrant Holder shall inure to the benefit of his successors and assigns
        hereunder.

      

      15.           Termination.
        This Warrant will terminate on the earlier of (a) the expiration date of
        this
        Warrant or (b) the date this Warrant has been exercised.

      

      16.           Governing
        Law. This Warrant shall be deemed to be made under the laws of the State
        of
        New York and for all purposes shall be construed in accordance with the laws
        of
        said State, excluding choice of law principles thereof.

      

      17.           Entire
        Agreement, Amendment, Waiver. This Warrant and all attachments hereto and
        all incorporation by references set forth herein, set forth the entire agreement
        and understanding between the parties as to the subject matter hereof and
        merges
        and supersedes all prior discussions, agreements and understandings of any
        and
        every nature among them. This Warrant may be amended, the Company may take
        any
        action herein prohibited or omit to take any action herein required to be
        performed by it, and any breach of any covenant, agreement, warranty or
        representation may be waived, only if the Company has obtained the written
        consent or waiver of the Warrant Holder. No course of dealing between or
        among
        any persons having any interest in this Warrant will be deemed effective
        to
        modify, amend or discharge any part of this Warrant or any rights or obligations
        of any person under or by reason of this Warrant.

      

      

      

      THIS
        SPACE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

         

      

      IN
        WITNESS WHEREOF, the undersigned has
        executed this Warrant as of this __ day of September, 2007.

      

      

                                                                                                                                        
        APPLIED DNA SCIENCES, INC

       

                                                                                                                                                                                                        
        By: 
        ___________________________________

                                                                                                                                         Name:
        James A. Hayward

                                                                                                                                        
        Title: Chief Executive Officer

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      APPLIED
        DNA SCIENCES, INC.

       

      WARRANT
        ASSIGNMENT FORM

       

      (To
        be
        signed only upon assignment of Warrant)

       

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers unto

       
        
          

        

      

       

      
        

      

    

     

    
      
        
          

        

      

      (Name
        and
        address of assignee must be printed or typewritten)

      

      the
        rights of the undersigned with respect to the Warrant surrendered herewith
        to
        the extent of ________________________ ( _____ ) shares of Common Stock,
        $.001
        par value per share, of Applied DNA Sciences, Inc. (the “Company”), hereby
        irrevocably constituting and appointing ____________________, attorney to
        make
        such transfer on the books of the Company, with full power of substitution
        in
        the premises.

      

      
        
          	Dated: 
                  ___________________________________	 	___________________________________________
	 	 	Signature
                  of Registered Holder
	 	 	 
	Signature(s)
                  Guaranteed:	 	____________________________________________
	 	 	
                  Signature
                    of Registered Holder, if 

                  more
                    than one

                
	 	 	 
	___________________________________________	 	 
	 	 	___________________________________________
	 	 	Name
                  of Registered Holder
	 	 	 
	 	 	___________________________________________
	 	 	
                  Name
                    of Registered Holder, if 

                  more
                    than one

                

        

      

       

      

      
        	
                 

              	
                Note:

              	
                The
                  above signature(s) must correspond with the name(s) as it (they)
                  appear(s)
                  upon the Warrant in every particular, without alteration or enlargement
                  or
                  any change whatever.

              

      

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

         

      

      APPLIED
        DNA SCIENCES, INC.

      

      WARRANT
        EXERCISE FORM

      

      (To
        be
        executed upon exercise Warrant)

      

      The
        undersigned, the record holder of
        this Warrant, hereby irrevocably elects to exercise the right, represented
        by
        this Warrant, to purchase ___ of the Warrant Shares.

      

      The
        undersigned requests that a
        certificate for the Warrant Shares being purchased be registered in the name
        of
        ______________ and that such certificate be delivered to
        __________.

       

      
        

        
          
            	Dated: 
                    ___________________________________	 	___________________________________________
	 	 	(Signature)
	 	 	 
	 	 	 
	 	 	____________________________________________
	 	 	
                    (Printed
                      Name)

                  

          

        

         

      

       

       

       

      9

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