Document:

Exhibit
10.2

 

REGISTRATION
RIGHTS AGREEMENT

 

REGISTRATION RIGHTS
AGREEMENT (this “Agreement”), dated as of November 29, 2018, by and among Applied DNA Sciences, Inc., a
Delaware corporation, with headquarters located at 50 Health Sciences Drive, Stony Brook, New York 11790 (the “Company”),
and the undersigned buyers (each, a “Buyer”, and collectively, the “Buyers”).

 

WHEREAS:

 

A. In connection with
the Securities Purchase Agreement, dated as of November 29, 2018, by and among the Company and the Buyers (the “Securities
Purchase Agreement”), the Company has agreed, upon the terms and subject to the conditions set forth in the Securities
Purchase Agreement, to issue and sell to each Buyer senior secured convertible notes of the Company (the “Notes”),
which may, among other things, be convertible into shares of the Company’s common stock, $0.001 par value per share (the
“Common Stock,” as converted, the “Conversion Shares”) in accordance with the terms of the
Notes.

 

B. To induce the Buyers
to execute and deliver the Securities Purchase Agreement, the Company has agreed to provide certain registration rights under the
Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the
“1933 Act”), and applicable state securities laws.

 

NOW, THEREFORE,
in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and each of the Buyers hereby agree as follows:

 

1.          Definitions.

 

Capitalized terms used
herein and not otherwise defined herein shall have the respective meanings set forth in the Securities Purchase Agreement. As used
in this Agreement, the following terms shall have the following meanings:

 

a.           “Business
Day” means any day other than Saturday, Sunday or any other day on which commercial banks in the City of New York are
authorized or required by law to remain closed.

 

b.           “Effective
Date” means the date the Registration Statement (as defined below) is declared effective by the SEC.

 

c.           “Effectiveness
Deadline” means, with respect to any registration statement required to be filed to cover the resale by the Investors
of the Registrable Securities pursuant to Section 2, 45 days after the Filing Date, or if there is a review of the Registration
Statement by the SEC, 90 days after the Filing Date.

 

d.           “Filing
Date” means, with respect to any registration statement required to be filed to cover the resale by the Investors of
the Registrable Securities pursuant to Section 2, the date on which such registration statement is filed with the SEC.

 

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e.           “Filing
Deadline” means with respect to any registration statement required to be filed to cover the resale by the Investors
of the Registrable Securities pursuant to Section 2, 60 days following the Demand Registration Request (as defined below), unless
the Demand Registration Request is made after the end of the fiscal year but before the financial statements for such fiscal year
are available, in which case the Filing Deadline means the later of (i) 10 Business Days following the availability of the financial
statements for the year ended September 30, 2018 and (ii) 60 days following the Demand Registration Request.

 

f.            “Investor”
means a Buyer or any transferee or assignee thereof to whom a Buyer assigns its rights under this Agreement and who agrees to become
bound by the provisions of this Agreement in accordance with Section 9 and any transferee or assignee thereof to whom a transferee
or assignee assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance
with Section 9.

 

g.           “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization
and a government or any department or agency thereof.

 

h.           “register,”
“registered,” and “registration” refer to a registration effected by preparing and filing
one or more Registration Statements (as defined below) in compliance with the 1933 Act and pursuant to Rule 415 and the declaration
or ordering of effectiveness of such Registration Statement(s) by the SEC.

 

i.            “Registrable
Securities” means (i) the Conversion Shares issued or issuable upon conversion or redemption of the Note and (ii) any
share capital of the Company issued or issuable with respect to the Conversion Shares or the Notes as a result of any stock split,
stock dividend, recapitalization, exchange or similar event or otherwise.

 

j.            “Registration
Statement” means a registration statement or registration statements of the Company filed under the 1933 Act covering
the Registrable Securities.

 

k.          “Required
Holders” means the holders of at least a majority of the Registrable Securities.

 

l.            “Rule
415” means Rule 415 under the 1933 Act or any successor rule providing for offering securities on a continuous or delayed
basis.

 

m.          “SEC”
means the United States Securities and Exchange Commission.

 

2.          Registration.

 

a.           Demand
Registration. Subject to the terms and conditions of this Agreement, if, at any time following the receipt by the Company of
a Conversion Notice, as defined in the Securities Purchase Agreement, or a mandatory conversion pursuant to Section 8 of the Form
of Note, the Company receives a written request from the Required Holders that the Company register under the 1933 Act any of the
Registrable Securities held by the Required Holders (such a written request being hereinafter referred to as a “Demand
Registration Request”), the Company shall file, as promptly as reasonably practicable but no later than the Filing Deadline,
a registration statement under the 1933 Act covering all of the Registrable Securities. The Registration Statement shall be on
Form S-1 or any similar long-form registration statement. The Registration Statement shall contain the “Selling Shareholders”
and “Plan of Distribution” sections in substantially the form attached hereto as Exhibit B. The Company
shall use its reasonable efforts to cause the registration statement to be declared effective or otherwise to become effective
under the 1933 Act as soon as reasonably practicable but, in any event, no later than the Effectiveness Deadline. By 9:30 am on
the date following the Effective Date, the Company shall file with the SEC in accordance with Rule 424 under the 1933 Act the final
prospectus to be used in connection with sales pursuant to such Registration Statement.

 

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b.           Eligibility
for Form S-3. If the Company is eligible to use Form S-3, or any similar short-form registration statement, to register the
Registrable Securities, then the Company may use Form S-3 in lieu of Form S-1.

 

3.          Related
Obligations.

 

At such time as the Company
is obligated to file a Registration Statement with the SEC pursuant to Section 2, the Company will use its reasonable efforts to
effect the registration of the Registrable Securities in accordance with the intended method of disposition thereof and, pursuant
thereto, the Company shall have the following obligations:

 

a.           The
Company shall promptly prepare and file with the SEC a Registration Statement with respect to the Registrable Securities and use
its reasonable efforts to cause such Registration Statement relating to the Registrable Securities to become effective as soon
as reasonably practicable after such filing (but in no event later than the Effectiveness Deadline). The Company shall keep each
Registration Statement effective pursuant to Rule 415 at all times until the earlier of (i) the date as of which the Investors
may sell all of the Registrable Securities covered by such Registration Statement without restriction or limitation pursuant to
Rule 144 and without the requirement to be in compliance with Rule 144(c)(1) (or any successor thereto) promulgated under the 1933
Act or (ii) the date on which the Investors shall have sold all of the Registrable Securities covered by such Registration Statement
(the “Registration Period”). The Company shall ensure that each Registration Statement (including any amendments
or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein, or necessary to make the statements therein (in the case of prospectuses,
in the light of the circumstances in which they were made) not misleading. The term “reasonable efforts” shall mean,
among other things, that the Company shall submit to the SEC, within five (5) Business Days after the later of the date that (i)
the Company learns that no review of a particular Registration Statement will be made by the staff of the SEC or that the staff
has no further comments on a particular Registration Statement, as the case may be, and (ii) the approval of Investors whose Registrable
Securities are included in such Registration Statement (which approval is immediately sought), a request for acceleration of effectiveness
of such Registration Statement to a time and date, subject to acceptance by the SEC, not later than five (5) Business Days after
the submission of such request.

 

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b.           The
Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to a Registration
Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to Rule
424 promulgated under the 1933 Act, as may be necessary to keep such Registration Statement effective at all times during the Registration
Period, and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable
Securities of the Company covered by such Registration Statement until such time as all of such Registrable Securities shall have
been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof as set forth in such Registration
Statement. In the case of amendments and supplements to a Registration Statement which are required to be filed pursuant to this
Agreement (including pursuant to this Section 3(b)) by reason of the Company filing a report on Form 10-Q, Form 10-K, or any analogous
report under the Securities Exchange Act of 1934, as amended (the “1934 Act”), the Company shall have incorporated
such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements with the
SEC as soon as reasonably practicable after the 1934 Act report is filed which created the requirement for the Company to amend
or supplement such Registration Statement.

 

c.           The
Company shall use its reasonable efforts to (i) register and qualify, unless an exemption from registration and qualification applies,
the resale by the Investors of the Registrable Securities covered by a Registration Statement under such other securities or “blue
sky” laws of all applicable jurisdictions in the United States, (ii) prepare and file in those jurisdictions, such amendments
(including post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain
the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations
and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary
or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company shall
not be required in connection therewith or as a condition thereto to (w) make any change to its certificate of incorporation or
bylaws, (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section
3(d), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any
such jurisdiction. The Company shall promptly notify each Investor of the Registrable Securities covered by a Registration Statement
of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of any of
the Registrable Securities for sale under the securities or “blue sky” laws of any jurisdiction in the United States
or its receipt of notice of the initiation or threatening of any proceeding for such purpose.

 

d.           The
Company shall notify each Investor of the Registrable Securities covered by a Registration Statement in writing of the happening
of any event, as promptly as reasonably practicable after becoming aware of such event, as a result of which the prospectus included
in a Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material
fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading (provided that in no event shall such notice contain any material, nonpublic information), and promptly
prepare a supplement or amendment to such Registration Statement to correct such untrue statement or omission, and deliver such
number of copies of such supplement or amendment to such Investor as such Investor may reasonably request. The Company shall also
promptly notify each Investor of the Registrable Securities covered by a Registration Statement in writing (i) when a prospectus
or any prospectus supplement or post-effective amendment has been filed, and when a Registration Statement or any post-effective
amendment has become effective (notification of such effectiveness shall be delivered to each such Investor by facsimile or e-mail
on the same day of such effectiveness), (ii) of any request by the SEC for amendments or supplements to a Registration Statement
or related prospectus or related information, and (iii) of the Company’s reasonable determination that a post-effective amendment
to a Registration Statement would be appropriate.

 

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e.           The
Company shall use its reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration
Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction and, if such
an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and to notify
each Investor who holds Registrable Securities being sold of the issuance of such order and the resolution thereof or its receipt
of notice of the initiation or threat of any proceeding for such purpose.

 

f.            If
any Investors of the Registrable Securities covered by a Registration Statement is required under applicable securities laws to
be described in the Registration Statement as an underwriter, at the reasonable request of such Investor, the Company shall furnish
to such Investor, on the date of the effectiveness of the Registration Statement and thereafter from time to time on such dates
as an Investor may reasonably request (i) a letter, dated as of such date, from the Company’s independent certified public
accountants in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten
public offering, addressed to such Investor, and (ii) an opinion, dated as of such date, of counsel representing the Company for
purposes of such Registration Statement, in form, scope and substance as is customarily given in an underwritten public offering,
addressed to such Investor.

 

g.           The
Company shall hold in confidence and not make any disclosure of information concerning an Investor provided to the Company unless
(i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information
is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such information
is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction,
or (iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement
or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information concerning an Investor
of the Registrable Securities covered by a Registration Statement is sought in or by a court or governmental body of competent
jurisdiction or through other means, give prompt written notice to such Investor and allow such Investor, at such Investor’s
expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such information.

 

h.           The
Company shall use its reasonable efforts either to (i) cause all of the Registrable Securities covered by a Registration Statement
to be listed or quoted on each securities exchange, bulletin board or quotation system on which securities of the same class or
series issued by the Company are then listed or quoted.

 

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i.            The
Company shall cooperate with the Investors who hold Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities
to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts, as the
case may be, as the Investors may reasonably request and registered in such names as the Investors may request.

 

j.            If
requested by an Investor of the Registrable Securities covered by a Registration Statement, the Company shall (i) as soon as reasonably
practicable incorporate in a prospectus supplement or post-effective amendment such information as such Investor reasonably requests
to be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information
with respect to the number of Registrable Securities being offered or sold, the purchase price being paid therefor and any other
terms of the offering of the Registrable Securities to be sold in such offering; (ii) as soon as reasonably practicable make all
required filings of such prospectus supplement or post-effective amendment after being notified of the matters to be incorporated
in such prospectus supplement or post-effective amendment; and (iii) as soon as reasonably practicable, supplement or make amendments
to any Registration Statement if reasonably requested by such Investor holding any Registrable Securities.

 

k.           The
Company shall use its reasonable efforts to cause the Registrable Securities covered by a Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable
Securities.

 

l.            The
Company shall otherwise use its reasonable efforts to comply with all applicable rules and regulations of the SEC in connection
with any registration hereunder.

 

m.          Within
two (2) Business Days after a Registration Statement which covers Registrable Securities is ordered effective by the SEC, the Company
shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities
(with copies to the Investors whose Registrable Securities are included in such Registration Statement) confirmation that such
Registration Statement has been declared effective by the SEC in the form attached hereto as Exhibit A.

 

n.           Notwithstanding
anything to the contrary herein, at any time after the Effective Date, the Company may delay the disclosure of material, non-public
information concerning the Company the disclosure of which at the time is not, in the good faith opinion of the Board of Directors
of the Company and its counsel, in the best interest of the Company and, in the opinion of counsel to the Company otherwise required
(a “Grace Period”); provided that no Grace Period shall exceed ten (10) consecutive days and during any
three hundred sixty five (365) day period such Grace Periods shall not exceed an aggregate of forty (40) days and the first day
of any Grace Period must be at least five (5) trading days after the last day of any prior Grace Period (each, an “Allowable
Grace Period”). For purposes of determining the length of a Grace Period above, the Grace Period shall begin on and include
the date the Investors receive the notice referred to in clause (i) and shall end on and include the later of the date the Investors
receive the notice referred to in clause (ii) and the date referred to in such notice. The provisions of Section 3(f) hereof shall
not be applicable during the period of any Allowable Grace Period. Upon expiration of the Grace Period, the Company shall again
be bound by the first sentence of Section 3(e) with respect to the information giving rise thereto unless such material, non-public
information is no longer applicable. Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver
unlegended shares of Common Stock to a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement
in connection with any sale of Registrable Securities with respect to which an Investor has entered into a contract for sale and
delivered a copy of the prospectus included as part of the Registration Statement (unless an exemption from such prospectus delivery
requirement exists) prior to the Investor’s receipt of the notice of a Grace Period and for which the Investor has not yet
settled.

 

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4.          Obligations
of the Investors.

 

a.           At
least five (5) Business Days prior to the first anticipated filing date of a Registration Statement, the Company shall notify each
Investor whose Registrable Securities are to be included in a Registration Statement in writing of the information the Company
requires from each such Investor. It shall be a condition precedent to the obligations of the Company to complete the registration
pursuant to this Agreement with respect to the Registrable Securities of a particular Investor that such Investor shall furnish
to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition
of the Registrable Securities held by it as shall be reasonably required to effect the effectiveness of the registration of such
Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request.

 

b.           Each
Investor whose Registrable Securities are to be included in a Registration Statement agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of any Registration Statement hereunder.

 

c.           Each
Investor whose Registrable Securities are to be included in a Registration Statement agrees that, upon receipt of any notice from
the Company of the happening of any event of the kind described in Section 3(f) or the first sentence of 3(e), such Investor will
immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement(s) covering such Registrable
Securities until such Investor’s receipt of the copies of the supplemented or amended prospectus contemplated by Section
3(f) or the first sentence of 3(e) or receipt of notice that no supplement or amendment is required.

 

d.           Each
Investor whose Registrable Securities are to be included in a Registration Statement covenants and agrees that it will comply with
the prospectus delivery requirements of the 1933 Act as applicable to it or an exemption therefrom in connection with sales of
Registrable Securities pursuant to the Registration Statement.

 

5.          Expenses
of Registration.

 

All reasonable expenses,
other than underwriting discounts and commissions, incurred in connection with registrations, filings or qualifications pursuant
to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting
fees, and fees and disbursements of counsel for the Company shall be paid by the Company.

 

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6.          Indemnification.

 

In the event any Registrable
Securities are included in a Registration Statement under this Agreement:

 

a.           To
the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend each Investor whose
Registrable Securities are included in a Registration Statement, the directors, officers, members, partners, employees, agents,
representatives of, and each Person, if any, who controls any Investor whose Registrable Securities are included in a Registration
Statement within the meaning of the 1933 Act or the 1934 Act (each, an “Indemnified Person”), against any losses,
claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement
or expenses, joint or several, (collectively, “Claims”) incurred in investigating, preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental,
administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party
is or may be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any
untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto
or in any filing made in connection with the qualification of the offering under the securities or other “blue sky”
laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or the omission or
alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading,
(ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus if used prior
to the effective date of such Registration Statement, or contained in the final prospectus (as amended or supplemented, if the
Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any
material fact necessary to make the statements made therein, in the light of the circumstances under which the statements therein
were made, not misleading, (iii) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law,
including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of
the Registrable Securities pursuant to a Registration Statement or (iv) any violation of this Agreement (the matters in the foregoing
clauses (i) through (iv) being, collectively, “Violations”). Subject to Section 6(c), the Company shall reimburse
the Indemnified Persons, promptly as such expenses are incurred and are due and payable, for any legal fees or other reasonable
expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary
contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to a Claim by an Indemnified
Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing
to the Company by such Indemnified Person for such Indemnified Person expressly for use in connection with the preparation of the
Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was timely made available by the
Company pursuant to Section 3(c) and (ii) shall not apply to amounts paid in settlement of any Claim if such settlement is effected
without the prior written consent of the Company, which consent shall not be unreasonably withheld or delayed. Such indemnity shall
remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive
the transfer of the Registrable Securities by the Investors pursuant to Section 9.

 

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b.           In
connection with any Registration Statement in which an Investor is participating, each such Investor agrees to severally and not
jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company,
each of its directors, each of its officers who signs the Registration Statement and each Person, if any, who controls the Company
within the meaning of the 1933 Act or the 1934 Act (each, an “Indemnified Party”), against any Claim or Indemnified
Damages to which any of them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified
Damages arise out of or are based upon any “Violation”, in each case to the extent, and only to the extent,
that such Violation occurs in reliance upon and in conformity with written information furnished to the Company by such Investor
expressly for use in connection with such Registration Statement; and, subject to Section 6(c), such Investor will reimburse any
legal or other expenses reasonably incurred by an Indemnified Party in connection with investigating or defending any such Claim;
provided, however, that the indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution
contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior
written consent of such Investor, which consent shall not be unreasonably withheld or delayed; provided, further, however, that
the Investor shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed
the net proceeds to such Investor as a result of the sale of Registrable Securities pursuant to such Registration Statement. Such
indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party
and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9. Notwithstanding anything to
the contrary contained herein, the indemnification agreement contained in this Section 6(b) with respect to any preliminary prospectus
shall not inure to the benefit of any Indemnified Party if the untrue statement or omission of material fact contained in the preliminary
prospectus was corrected on a timely basis in the prospectus, as then amended or supplemented.

 

c.           Promptly
after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or
proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall,
if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party
a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense
thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the
case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel
with the fees and expenses of not more than one counsel for such Indemnified Person or Indemnified Party to be paid by the indemnifying
party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation by such counsel of the Indemnified
Person or Indemnified Party and the indemnifying party would be inappropriate due to actual or potential differing interests between
such Indemnified Person or Indemnified Party and any other party represented by such counsel in such proceeding. In the case of
an Indemnified Person, legal counsel referred to in the immediately preceding sentence shall be selected by the Investors holding
at least a majority in interest of the Registrable Securities included in the Registration Statement to which the Claim
relates. The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party in connection with any negotiation
or defense of any such action or Claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably
available to the Indemnified Party or Indemnified Person which relates to such action or Claim. The indemnifying party shall keep
the Indemnified Party or Indemnified Person reasonably apprised at all times as to the status of the defense or any settlement
negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim or proceeding
effected without its prior written consent, provided, however, that the indemnifying party shall not unreasonably withhold, delay
or condition its consent. No indemnifying party shall, without the prior written consent of the Indemnified Party or Indemnified
Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability
in respect to such Claim or litigation, and such settlement shall not include any admission as to fault on the part of the Indemnified
Party. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified
Party or Indemnified Person with respect to all third parties, firms or corporations relating to the matter for which indemnification
has been made. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of
any such action shall not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party under
this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend such action.

 

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d.           The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or Indemnified Damages are incurred.

 

e.           The
indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party
or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

 

7.          Contribution.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however,
that: (i) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the 1933 Act) in connection with such sale shall be entitled to contribution from any Person involved
in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller
of Registrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such
Registrable Securities pursuant to such Registration Statement.

 

8.          Reports
Under the 1934 Act.

 

With a view to making
available to the Investors the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule or regulation of the
SEC that may at any time permit the Investors to sell securities of the Company to the public without registration (“Rule
144”), the Company agrees to:

 

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a.           make
and keep public information available, as those terms are understood and defined in Rule 144;

 

b.           file
with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act so
long as the Company remains subject to such requirements and the filing of such reports and other documents is required for the
applicable provisions of Rule 144; and

 

c.           furnish
to each Investor so long as such Investor owns Registrable Securities, promptly upon request, (i) a written statement by the Company,
if true, that it has complied with the reporting requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) a copy of the most
recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other
information as may be reasonably requested to permit the Investors to sell such securities pursuant to Rule 144 without registration.

 

9.          Assignment
of Registration Rights.

 

The rights under this
Agreement shall be automatically assignable by the Investors to any transferee of all or any portion of such Investor’s Registrable
Securities if: (i) the Investor agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement
is furnished to the Company within a reasonable time after such assignment; (ii) the Company is, within a reasonable time after
such transfer or assignment, furnished with written notice of (a) the name and address of such transferee or assignee, and (b)
the securities with respect to which such registration rights are being transferred or assigned; (iii) immediately following such
transfer or assignment the further disposition of such securities by the transferee or assignee is restricted under the 1933 Act
or applicable state securities laws; (iv) at or before the time the Company receives the written notice contemplated by clause
(ii) of this sentence the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained
herein; and (v) such transfer shall have been made in accordance with the applicable requirements of the Securities Purchase Agreement.

 

10.        Amendment
of Registration Rights.

 

Provisions of this Agreement
may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively
or prospectively), only with the written consent of the Company and the Required Holders. Any amendment or waiver effected in accordance
with this Section 10 shall be binding upon each Investor and the Company. No such amendment shall be effective to the extent that
it applies to less than all of the holders of the Registrable Securities. No consideration shall be offered or paid to any Person
to amend or consent to a waiver or modification of any provision of any of this Agreement unless the same consideration also is
offered to all of the parties to this Agreement.

 

    	 	11	 

     

    

 

11.        Miscellaneous.

 

a.           A
Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from the such record
owner of such Registrable Securities.

 

b.           Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); or (iii) one (1) Business Day after deposit with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

 

If to the Company:

 

Applied DNA Sciences, Inc.

50 Health Sciences Drive, Suite
113

Stony Brook, New York 11790

Telephone: (631) 240-8800

Attention: Chief Financial Officer

 

With copies to:

 

Pepper Hamilton LLP

620 Eighth Avenue, 37th
Floor

New York, NY 10018

Telephone: (212) 808-2711

Facsimile: (212) 658-9982

Attention: Merrill Kraines, Esq.

 

If to a Buyer, to its address and facsimile
number set forth on the Schedule of Buyers attached hereto, with copies to such Buyer’s representatives as set forth on the
Schedule of Buyers, or to such other address and/or facsimile number and/or to the attention of such other Person as the recipient
party has specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written
confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an image
of the first page of such transmission or (C) provided by a courier or overnight courier service shall be rebuttable evidence of
personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause
(i), (ii) or (iii) above, respectively.

 

c.           Failure
of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

 

    	 	12	 

     

    

 

d.           All
questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal
laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the
State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction,
such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

e.           This
Agreement, the other Transaction Documents (as defined in the Securities Purchase Agreement) and the instruments referenced herein
and therein constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof. There
are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein. This Agreement,
the other Transaction Documents and the instruments referenced herein and therein supersede all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof and thereof.

 

f.            Subject
to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the permitted successors and
assigns of each of the parties hereto.

 

g.           The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

h.           This
Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission
of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

i.            Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

    	 	13	 

     

    

 

j.            All
consents and other determinations required to be made by the Investors pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by the Required Holders.

 

k.          The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules
of strict construction will be applied against any party.

 

l.            This
Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for
the benefit of, nor may any provision hereof be enforced by, any other Person.

 

m.           The
obligations of each Investor hereunder are several and not joint with the obligations of any other Investor, and no provision of
this Agreement is intended to confer any obligations on any Investor vis-à-vis any other Investor. Nothing contained herein,
and no action taken by any Investor pursuant hereto, shall be deemed to constitute the Investors as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated herein.

 

[Signature Page Follows]

 

    	 	14	 

     

    

 

 

IN WITNESS WHEREOF,
each Buyer and the Company have caused their respective signature page to this Registration Rights Agreement to be duly executed
as of the date first written above.

 

	 	COMPANY:
	 	 	 
	 	APPLIED DNA SCIENCES, INC.
	 	 	 
	 	By:	 
	 	 	Name: Beth Jantzen
	 	 	Title: Chief Financial Officer

 

    	 	15	 

     

    

 

IN WITNESS WHEREOF,
each Buyer and the Company have caused their respective signature page to this Registration Rights Agreement to be duly executed
as of the date first written above.

 

	 	[BUYERS]:
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	16	 

     

    

 

SCHEDULE
OF BUYERS

 

	Buyer	 	Buyer’s Address and

Facsimile Number	 	
        Buyer’s

        Representative’s

        Address

        and Facsimile Number

	 	 	 	 	 
	James A. Hayward	 	50 Health Sciences Drive,	 	 
	 	 	 	 	 
	 	 	Stony Brook, NY 11790	 	 
	 	 	 	 	 
	Wayne Buchen	 	50 Health Sciences Drive,	 	 
	 	 	 	 	 
	 	 	Stony Brook, NY 11790	 	 

 

    	 	17	 

     

    

FORM
OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

American Stock Transfer and Trust Company

Operations Center

6201 15th Ave., Third Floor

Brooklyn, New York 11219

Telephone: (718) 921-8210

Attention: [●]

 

Re: APPLIED DNA SCIENCES,
INC.

 

Ladies and Gentlemen:

 

We are counsel to Applied DNA Sciences,
Inc., a Delaware corporation (the “Company”), and have represented the Company in connection with that certain
Securities Purchase Agreement, dated as of [●], 2018 (the “Securities Purchase Agreement”), entered into
by and among the Company and the buyers named therein (collectively, the “Holders”) pursuant to which the Company
issued to the Holders secured convertible notes (the “Notes”) which are convertible into the Company’s
common stock, $0.001 par value per share (the “Common Stock”). Pursuant to the Securities Purchase Agreement,
the Company also has entered into a Registration Rights Agreement with the Holders (the “Registration Rights Agreement”)
pursuant to which the Company agreed, among other things, to register the resale of the Registrable Securities (as defined in the
Registration Rights Agreement), including the shares of Common Stock issuable upon conversion of the Notes under the Securities
Act of 1933, as amended (the “1933 Act”). In connection with the Company’s obligations under the Registration
Rights Agreement, on _______, 201_, the Company filed a Registration Statement on Form S-1 (File No. 333-_____________) (the “Registration
Statement”) with the Securities and Exchange Commission (the “SEC”) relating to the Registrable Securities
which names each of the Holders as a selling shareholder thereunder.

 

In connection with the foregoing, we advise
you that the SEC has entered an order declaring the Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS]
on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge, based upon our review of the list of current stop orders available on
the SEC’s website, that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose
are pending before, or threatened by, the SEC and the Registrable Securities are available for resale under the 1933 Act pursuant
to the Registration Statement.

 

    	 	18	 

     

    

 

This letter shall serve
as our standing instruction to you that the shares of Common Stock are freely transferable by the Holders pursuant to the Registration
Statement. You need not require further letters from us to effect any future legend-free issuance or reissuance of shares of Common
Stock to the Holders as contemplated by the Company’s Irrevocable Transfer Agent Instructions dated [●], 2018, provided
at the time of such reissuance, the Company has not otherwise notified you that the Registration Statement is unavailable for the
resale of the Registrable Securities..

 

	 	Very truly yours,
	 	 	 
	 	[ISSUER’S COUNSEL]
	 	 	 
	 	By:	 
	 	 	 
	CC: [LIST NAMES OF HOLDERS]	 	 

 

    	 	19	 

     

    

 

SELLING
STOCKHOLDERS

 

The shares of common
stock being offered by the selling shareholders are those issuable upon conversion of the secured convertible notes. We are registering
the shares of common stock in order to permit the selling shareholders to offer the shares for resale from time to time. [Except
for the ownership of the secured convertible notes, the selling shareholders have not had any material relationship with us within
the past three years.]

 

The table below lists
the selling shareholders and other information regarding the beneficial ownership of the shares of common stock by each of the
selling shareholders. The second column lists the number of shares of common stock beneficially owned by each selling shareholder,
based on its ownership of the shares of the secured convertible notes, as of ________, 2018, assuming conversion of all secured
convertible notes held by the selling shareholders on that date, without regard to any limitations on conversions and/or redemptions
of the secured convertible notes.

 

The third column lists
the shares of common stock being offered by this prospectus by the selling shareholders.

 

The fourth column assumes
the sale of all of the shares offered by the selling shareholders pursuant to this prospectus.

 

    	 	20	 

     

    

 

PLAN OF
DISTRIBUTION

 

We are registering the
shares of common stock issuable upon conversion of the secured convertible notes to permit the resale of these shares of common
stock by the holders of the secured convertible notes from time to time after the date of this prospectus. We will not receive
any of the proceeds from the sale by the selling shareholders of the shares of common stock. We will bear all fees and expenses
incident to our obligation to register the shares of common stock.

 

The selling shareholders
may sell all or a portion of the shares of common stock beneficially owned by them and offered hereby from time to time directly
or through one or more underwriters, broker-dealers or agents. If the shares of common stock are sold through underwriters or broker-dealers,
the selling shareholders will be responsible for underwriting discounts or commissions or agent’s commissions. The shares
of common stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at
varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may
involve crosses or block transactions,

 

		·	on any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale;

 

		·	in the over-the-counter market;

 

		·	in transactions otherwise than on these exchanges or systems or in the over-the-counter market;

 

		·	through the writing of options, whether such options are listed on an options exchange or otherwise;

 

		·	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

 

		·	block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the
block as principal to facilitate the transaction;

 

		·	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

 

		·	an exchange distribution in accordance with the rules of the applicable exchange;

 

		·	privately negotiated transactions;

 

		·	short sales;

 

		·	sales pursuant to Rule 144;

 

		·	broker-dealers may agree with the selling shareholders to sell a specified number of such shares at a stipulated price per
share;

 

    	 	21	 

     

    

 

		·	a combination of any such methods of sale; and

 

		·	any other method permitted pursuant to applicable law.

 

If the selling shareholders
effect such transactions by selling shares of common stock to or through underwriters, broker-dealers or agents, such underwriters,
broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling shareholders
or commissions from purchasers of the shares of common stock for whom they may act as agent or to whom they may sell as principal
(which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those
customary in the types of transactions involved). In connection with sales of the shares of common stock or otherwise, the selling
shareholders may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the shares of
common stock in the course of hedging in positions they assume. The selling shareholders may also sell shares of common stock short
and deliver shares of common stock covered by this prospectus to close out short positions and to return borrowed shares in connection
with such short sales. The selling shareholders may also loan or pledge shares of common stock to broker-dealers that in turn may
sell such shares.

 

The selling shareholders
may pledge or grant a security interest in some or all of the secured convertible notes or shares of common stock owned by them
and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares
of common stock from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other
applicable provision of the Securities Act of 1933, as amended, amending, if necessary, the list of selling shareholders to include
the pledgee, transferee or other successors in interest as selling shareholders under this prospectus. The selling shareholders
also may transfer and donate the shares of common stock in other circumstances in which case the transferees, donees, pledgees
or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

 

The selling shareholders
and any broker-dealer participating in the distribution of the shares of common stock may be deemed to be “underwriters”
within the meaning of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer
may be deemed to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of the shares
of common stock is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of
shares of common stock being offered and the terms of the offering, including the name or names of any broker-dealers or agents,
any discounts, commissions and other terms constituting compensation from the selling shareholders and any discounts, commissions
or concessions allowed or reallowed or paid to broker-dealers.

 

Under the securities
laws of some states, the shares of common stock may be sold in such states only through registered or licensed brokers or dealers.
In addition, in some states the shares of common stock may not be sold unless such shares have been registered or qualified for
sale in such state or an exemption from registration or qualification is available and is complied with.

 

    	 	22	 

     

    

 

There can be no assurance
that any selling shareholder will sell any or all of the shares of common stock registered pursuant to the shelf registration statement,
of which this prospectus forms a part.

 

The selling shareholders
and any other person participating in such distribution will be subject to applicable provisions of the Securities Exchange Act
of 1934, as amended, and the rules and regulations thereunder, including, without limitation, Regulation M of the Exchange Act,
which may limit the timing of purchases and sales of any of the shares of common stock by the selling shareholders and any other
participating person. Regulation M may also restrict the ability of any person engaged in the distribution of the shares of common
stock to engage in market-making activities with respect to the shares of common stock. All of the foregoing may affect the marketability
of the shares of common stock and the ability of any person or entity to engage in market-making activities with respect to the
shares of common stock.

 

We will pay all expenses
of the registration of the shares of common stock pursuant to the registration rights agreement, estimated to be $[_______] in
total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities
or “blue sky” laws; provided, however, that a selling shareholder will pay all underwriting discounts and selling commissions,
if any. We will indemnify the selling shareholders against liabilities, including some liabilities under the Securities Act, in
accordance with the registration rights agreements, or the selling shareholders will be entitled to contribution. We may be indemnified
by the selling shareholders against civil liabilities, including liabilities under the Securities Act, that may arise from any
written information furnished to us by the selling shareholder specifically for use in this prospectus, in accordance with the
related registration rights agreement, or we may be entitled to contribution.

 

Once sold under the shelf
registration statement, of which this prospectus forms a part, the shares of common stock will be freely tradable in the hands
of persons other than our affiliates.

 

    	 	23Exhibit
10.3

 

SECURITIES
PURCHASE AGREEMENT

 

SECURITIES PURCHASE AGREEMENT (the
“Agreement”), dated as of November 29, 2018, by and among Applied DNA Sciences, Inc., a Delaware corporation,
with headquarters located at 50 Health Sciences Drive, Stony Brook, New York 11790 (the “Company”), and the
investors listed on the Schedule of Buyers attached hereto (individually, a “Buyer” and collectively, the “Buyers”).

 

WHEREAS:

 

A.           The
Company and each Buyer is executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”), and Rule 506(b) of Regulation
D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the 1933 Act.

 

B.           The
Company has authorized a new series of secured convertible notes of the Company which notes shall be convertible into the Company’s
common stock, $0.001 par value per share (the “Common Stock”), all in accordance with the terms of the Notes
(as defined below).

 

C.           Each
Buyer wishes to purchase on a several and not a joint basis, and the Company wishes to sell, upon the terms and conditions stated
in this Agreement, that principal amount of the Notes, in substantially the form attached hereto as Exhibit A (the “Notes”),
set forth opposite such Buyer’s name in column (3) on the Schedule of Buyers attached hereto (which aggregate amount
for all Buyers shall be $550,000).

 

D.           Contemporaneously
with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration Rights Agreement,
substantially in the form attached hereto as Exhibit B (the “Registration Rights Agreement”), pursuant to which
the Company has agreed to provide certain registration rights with respect to the Registrable Securities (as defined in the Registration
Rights Agreement) under the 1933 Act and the rules and regulations promulgated thereunder, and applicable state securities laws.

 

E.           The
Common Stock issued upon the conversion of the Notes shall be known as the “Conversion Shares.”

 

F.           The
Notes and the Conversion Shares are collectively referred to herein as the “Securities.”

 

G.           The
Notes will be secured by a security interest in substantially all of the assets of the Company, as evidenced by the security agreement,
substantially in the form attached hereto as Exhibit C (the “Security Document”), which shall be executed
within five (5) Business Days of the Closing.

 

NOW, THEREFORE, the Company and each
Buyer hereby agree as follows:

 

		1.	PURCHASE AND SALE OF NOTES.

 

(a)          Purchase
of Notes. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below, the Company shall
issue and sell to each Buyer, and each Buyer severally, but not jointly, agrees to purchase from the Company on the applicable
Closing Date (as defined below), a principal amount of Notes as is set forth opposite such Buyer’s name in column (3) on
the Schedule of Buyers (the “Closing”).

 

(b)          Closing.
The Closing shall occur on the applicable Closing Date (as defined below) at the offices of Pepper Hamilton LLP, 620 Eighth Avenue,
New York, NY 10018.

 

(c)          Purchase
Price. The purchase price for each Buyer of the Notes to be purchased by each such Buyer at the Closing shall be the amount
set forth opposite such Buyer’s name in column (4) of the Schedule of Buyers (the “Purchase Price”).

 

     

     

    

 

(d)          Closing
Date. The date and time of each Closing (each, a “Closing Date”) shall be mutually agreed by the Company
and each Buyer after notification of satisfaction (or waiver) of the conditions to the Closing set forth in Sections 6 and 7 below.

 

(e)          Delivery
and Payment. On or prior to the Closing Date, each Buyer shall pay its Purchase Price for the Notes to be issued and sold to
such Buyer at the Closing by check or wire transfer of immediately available funds to such account or accounts of the Company as
the Company shall specify, and the Company shall deliver to each Buyer, the Notes (in the principal amounts as such Buyer shall
request) which such Buyer is then purchasing duly executed on behalf of the Company and registered in the name of such Buyer or
its designee.

 

		2.	BUYER’S REPRESENTATIONS AND WARRANTIES.

 

Each Buyer represents and warrants with
respect to only itself and no other Buyer that:

 

(a)          No
Public Sale or Distribution. Such Buyer is (i) acquiring the Notes and (ii) upon conversion of the Notes will acquire the Conversion
Shares issuable upon conversion of the Notes, for its own account and not with a view towards, or for resale in connection with,
the public sale or distribution thereof, except pursuant to sales registered or exempted under the 1933 Act. Except as previously
disclosed to the Company in writing, such Buyer (i) does not presently have any agreement or understanding, directly or indirectly,
with any Person (defined as any individual, limited liability company, partnership, joint venture, corporation, trust, unincorporated
organization, government or any department or agency thereof) to distribute any of the Securities, and (ii) is not a broker-dealer
registered with the SEC under the Securities Exchange Act of 1934, as amended (the “1934 Act”), or any entity
engaged in the business that would require it to be so registered as a broker-dealer.

 

(b)          Accredited
Investor Status. Such Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D.

 

(c)          Reliance
on Exemptions. Such Buyer understands that the Securities are being offered and sold to it in reliance on specific exemptions
from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon
the truth and accuracy of, and such Buyer’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of such Buyer set forth herein in order to determine the availability of such exemptions and the eligibility
of such Buyer to acquire the Securities.

 

(d)          Information.
Such Buyer and its advisors, if any, have been furnished with all materials relating to the business, finances and operations of
the Company and materials relating to the offer and sale of the Securities, which have been requested by such Buyer. Such Buyer
and its advisors, if any, have reviewed a copy of the Company’s most recent Annual Report on Form 10-K (including any risk
factors), Quarterly Reports on Form 10-Q (including any risk factors), Proxy Statements on Form Def 14A and current reports on
Form 8-K. Such Buyer and its advisors, if any, have been afforded the opportunity to ask questions of the Company. Such Buyer understands
that its investment in the Securities involves a high degree of risk. Such Buyer has sought such accounting, legal and tax advice
as it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities.

 

(e)          No
Governmental Review. Such Buyer understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment
in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities. Any statement
to the contrary is unlawful.

 

(f)          Legends.
Buyer understands that the certificates or other instruments representing the Securities have been issued pursuant to an exemption
from registration or qualification under the 1933 Act and applicable state securities laws, and except as set forth below, the
Securities shall bear any legend as required by the “blue sky” laws of any state and a restrictive legend in substantially
the following form (and a stop-transfer order may be placed against transfer of such stock certificates):

 

    	 	-2-	 

     

    

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY,
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER
SAID ACT.

 

Certificates evidencing Securities shall
not be required to contain the legend set forth above or any other legend (i) while a registration statement covering the resale
of such Securities is effective under the 1933 Act, (ii) following any sale of such Securities pursuant to Rule 144 (assuming the
transferor is not an affiliate of the Company), (iii) if such Securities are eligible to be sold, assigned or transferred under
Rule 144 (provided that Buyer provides the Company with reasonable assurances that such Securities are eligible for sale, assignment
or transfer under Rule 144), (iv) in connection with a sale, assignment or other transfer (other than under Rule 144), provided
that Buyer provides the Company with an opinion of counsel to Buyer from reputable counsel to the effect that such sale, assignment
or transfer of the Securities may be made without registration under the applicable requirements of the 1933 Act or (v) if such
legend is not required under applicable requirements of the 1933 Act (including, without limitation, controlling judicial interpretations
and pronouncements issued by the SEC).

 

If a legend is not required pursuant to
the foregoing, the Company shall no later than five (5) Business Days following the delivery by Buyer to the Company or the transfer
agent (with notice to the Company) of a legended certificate representing such Securities (endorsed or with stock powers attached,
signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer, if applicable), together with
any other deliveries from Buyer as may be required above in this Section 2(f), as directed by Buyer, either: (A) provided that
the Company’s transfer agent is participating in the DTC Fast Automated Securities Transfer Program and such Securities are
Conversion Shares, credit the aggregate number of shares of Common Stock to which Buyer shall be entitled to Buyer’s or its
designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system or (B) if the Company’s transfer
agent is not participating in the DTC Fast Automated Securities Transfer Program or the Securities are not shares of Common Stock,
issue and deliver (via reputable overnight courier) to Buyer, a certificate representing such Securities that is free from all
restrictive and other legends, registered in the name of Buyer or its designee.

 

(g)          Validity;
Enforcement. This Agreement, the Registration Rights Agreement and the Security Document to which such Buyer is a party have
been duly and validly authorized, executed and delivered on behalf of such Buyer and shall constitute the legal, valid and binding
obligations of such Buyer enforceable against such Buyer in accordance with their respective terms, except as such enforceability
may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
or other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

(h)          Residency.
Such Buyer is a resident of that jurisdiction specified below its address on the Schedule of Buyers.

 

(i)          Brokers
and Finders. No Person will have, as a result of the transactions contemplated by the Transaction Documents, as defined below,
any valid right, interest or claim against or upon the Company for any commission, fee or other compensation pursuant to any agreement,
arrangement or understanding with a placement agent entered into by or on behalf of such Buyer.

 

(j)          Confidentiality
Prior To The Date Hereof. Other than to other Persons party to this Agreement, such Buyer has maintained the confidentiality
of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).

 

(k)          Sold
to Various Buyers. Such Buyer understands that the Notes (i) may be sold to various Buyers in one or more Closings, (ii) will
generally be for a term of three years but may have varying maturity dates, (iii) may be purchased by officers and directors of
the Company, (iv) regardless of issue or sale date, will be secured on a pari passu basis by the same Security Document, and the
perfection of any related security interest is not required to occur until 30 days after the first Closing Date and (v) may be
issued in a principal amount of up to $3,500,000. In addition, Buyer understands that a majority of the principal amount of the
Notes may be purchased by the Chief Executive Officer of the Company (the “CEO”) and as a result the
CEO may have the ability to direct the actions of the Collateral Agent, direct the approval of amendments to the Transaction Documents
and control the demand rights under the Registration Rights Agreement.

 

    	 	-3-	 

     

    

 

(l)          No
Independent Counsel. Such Buyer understands that Pepper Hamilton LLP has represented the Company in the preparation of the
Transaction Documents and there is no independent counsel that has represented the Buyers.

 

		3.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The Company represents and warrants to each
of the Buyers as of the date hereof that:

 

(a)          Organization
and Qualification. The Company is duly organized and validly existing in good standing under the laws of the jurisdiction in
which it is formed, and has the requisite power and authorization to own its properties and to carry on its business as now being
conducted.

 

(b)          Authorization;
Enforcement; Validity. The Company and its Subsidiaries each has the corporate power and authority to enter into and perform
its obligations under this Agreement, the Notes, the Registration Rights Agreement, the Security Document, the Transfer Agent Instructions
(substantially in the Form of Exhibit D) to which it is a party, and each of the other agreements entered into by the parties hereto
in connection with the transactions contemplated by this Agreement (collectively, the “Transaction Documents”)
and to issue the Securities in accordance with the terms hereof and thereof. The execution and delivery of the Transaction Documents
by the Company and its Subsidiaries and the consummation by the Company and its Subsidiaries of the transactions contemplated hereby
and thereby, including, without limitation, the issuance of the Notes, the reservation for issuance and the issuance of the Conversion
Shares issuable upon conversion of the Notes, and the granting of a security interest in the Collateral (as defined
in the Security Document), have been duly authorized by the Company’s and such Subsidiaries’ respective Board of Directors
and no further consent, or authorization is required by the Company, such Subsidiaries, their respective Board of Directors or
their respective stockholders. This Agreement and the other Transaction Documents have been duly executed and delivered by the
Company and such Subsidiaries, and constitute the legal, valid and binding obligations of the Company and such Subsidiaries, enforceable
against the Company and such Subsidiaries in accordance with their respective terms, except (i) the perfection of any security
interest required by the Security Document need not occur until 45 days after the first Closing Date and (ii) as such enforceability
may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

(c)          Issuance
of Securities. The issuance of the Notes are duly authorized and are free from all taxes, liens and charges with respect to
the issue thereof. As of the Closing, 660,000 shares of Common Stock shall have been duly authorized and reserved for issuance
which equals 100% of the maximum number of shares Common Stock issuable upon conversion of the Notes. Upon conversion in accordance
with the Notes, the Conversion Shares will be validly issued, fully paid and nonassessable and free from all preemptive or similar
rights, taxes, liens and charges with respect to the issue thereof, with the holders being entitled to all rights accorded to a
holder of Common Stock. Subject to the accuracy of the representations made by each Buyer in Section 2, the offer and issuance
by the Company of the Securities is exempt from registration under the 1933 Act.

 

(d)          No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and its Subsidiaries and the
consummation by the Company and its Subsidiaries of the transactions contemplated hereby and thereby (including, without limitation,
the issuance of the Notes, the granting of a security interest in the Collateral and reservation for issuance and issuance of the
Conversion Shares) will not (i) result in a violation of the Certificate of Incorporation of the Company, as amended from time
to time and as in effect on the date hereof (the “Certificate of Incorporation”) or any certificate or articles
of incorporation, certificate of formation, any certificate of designations or other charter document of any of its Subsidiaries,
or the Bylaws of the Company, as amended from time to time and as in effect on the date hereof (the “Bylaws”),
or any of its Subsidiaries or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement,
indenture or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law,
rule, regulation, order, judgment or decree (including federal and state securities laws and regulations and the rules and regulations
of The NASDAQ Capital Market (the “Principal Market”)) applicable to the Company or any of its Subsidiaries
or by which any property or asset of the Company or any of its Subsidiaries is bound or affected, except in the case of
clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations that would not, individually or in the aggregate,
have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means any material
adverse effect on the business, properties, assets, operations, results of operations, condition (financial or otherwise) or prospects
of the Company and its Subsidiaries, taken as a whole, or on the transactions contemplated by this Agreement and the other Transaction
Documents, or on the authority or ability of the Company to perform its obligations under the Transaction Documents.

 

    	 	-4-	 

     

    

 

(e)          Consents.
Except for the filing with the SEC of one or more Registration Statements in accordance with the requirements of the Registration
Rights Agreement, the filing with the SEC of a Current Report on Form 8-K describing the terms of the transactions contemplated
by the Transaction Documents, the filing of the Form D with the SEC and for such filings as shall be required under state securities
or “blue sky” laws, and the filing of any notice with the Financial Industry Regulatory Authority, neither the Company
nor any of its Subsidiaries is required to obtain any consent, authorization or order of, or make any filing or registration with,
any court, governmental agency or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver
or perform any of its obligations under or contemplated by the Transaction Documents, in each case in accordance with the terms
hereof or thereof, which have not been or will not be obtained or effected on or prior to the Closing Date, and the Company and
its Subsidiaries have no knowledge of any facts or circumstances which might prevent the Company from obtaining or effecting any
of the registration, application or filings pursuant to the preceding sentence.

 

		4.	COVENANTS.

 

(a)          Reasonable
Best Efforts. Each party shall use its reasonable best efforts timely to satisfy each of the covenants and conditions to be
satisfied by it as provided in Sections 6 and 7 of this Agreement.

 

(b)          Disclosure
of Transactions and Other Material Information. On or before 8:30 a.m., New York City time, by the fourth (4th)
Business Day following the date of this Agreement, the Company shall file a Current Report on Form 8-K describing the terms of
the transactions contemplated by the Transaction Documents in the form required by the 1934 Act and attaching the material Transaction
Documents (including, without limitation, this Agreement (and all schedules to this Agreement), the form of the Notes, the Registration
Rights Agreement and the Security Document) as exhibits to such filing (including all attachments, the “8-K Filing”).
As used herein, “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks
in The City of New York are authorized or required by law to remain closed.

 

(c)          Reservation
of Shares. So long as any Buyer owns any Securities, the Company shall take all action necessary to at all times have authorized,
and reserved for the purpose of issuance, no less than 100% of the number of shares of Common Stock issuable upon conversion of
the Notes then outstanding (without taking into account any limitations on the conversion of the Notes set forth in the Notes).

 

(d)          Collateral
Agent.

 

(i)          Corporation
Service Company (“CSC”) is hereby appointed Collateral Agent under the Security Document and each Buyer hereby authorizes
CSC, in such capacity, to act as its agent in accordance with the terms of the Security Document and this Agreement. The provisions
of this Section 4(d) are solely for the benefit of the Buyers and the Company and its Affiliates shall not have any rights as a
third party beneficiary of any of the provisions thereof. In performing its functions and duties under the Security Document and
this Agreement, the Collateral Agent shall act solely as an agent of Buyers and does not assume and shall not be deemed to have
assumed any obligation towards or relationship of agency or trust with the Company or any of its Affiliates. The Collateral Agent
shall be obligated, and shall have the powers and rights, to make demands, to give notices, to exercise or refrain from exercising
any rights, and to take or refrain from taking any action (including, without limitation, the release or substitution of Collateral),
solely in accordance with this Agreement and the Security Document. If any provision, duty, obligation or right under the Security
Document is in conflict with any provision, duty, obligation or right under this Agreement then this Agreement shall control. The
Collateral Agent shall not have any duties or responsibilities, except those expressly set forth herein and in the Security Document
and such powers as are incidental thereto.

 

    	 	-5-	 

     

    

 

(ii)         Each
Buyer irrevocably authorizes the Collateral Agent to take such action on such Buyer’s behalf and to exercise such powers,
rights and remedies hereunder as are specifically delegated or granted to the Collateral Agent by the terms of this Agreement and
the Security Document, together with such powers, rights and remedies as are reasonably incidental thereto. The Collateral Agent
shall have only those duties and responsibilities that are expressly specified herein and therein. The Collateral Agent may exercise
such powers, rights and remedies and perform such duties by or through its agents or employees. Notwithstanding any other provisions
hereof or of any provision of the Security Document, the Collateral Agent shall not have or be deemed to have any fiduciary relationship
with the Buyers or any other person or entity, and no implied covenants, functions, responsibilities, duties, obligations or liabilities
shall be read into this Agreement or the Security Document or otherwise exist against the Collateral Agent. Without limiting the
generality of the foregoing sentence, the use of the term “agent” in this Agreement or the Security Document with reference
to the Collateral Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency
doctrine of any applicable law.

 

(iii)        The
Collateral Agent may act in reliance upon any writing or instrument or signature which it, in good faith, believes to be genuine,
and may assume the validity and accuracy of any statement or assertion contained in such a writing or instrument and may assume
that any person or entity purporting to give any writing, notice, advice or instruction in connection with the provisions hereof
has been duly authorized to do so. The Collateral Agent may consult with counsel and shall be entitled to act, and shall be fully
protected in any action taken in good faith, in accordance with advice given by counsel. The Collateral Agent shall not be liable
to the Company or any of its Affiliates, or the Buyers for any recitals or warranties herein or in the Security Document, nor for
the effectiveness, enforceability, validity or due execution of the Security Document or any other agreement, document or instrument,
nor to make any inquiry respecting the performance by any party of their respective obligations thereunder. Any such inquiry which
may be made by the Collateral Agent shall not obligate it to make any further inquiry or to take any action.

 

(iv)        The
Collateral Agent shall not be required to take any action which, in the Collateral Agent’s sole and absolute judgment, could
involve it in expense or liability unless furnished with security and indemnity which it deems, in its sole and absolute discretion,
to be satisfactory. In the event the Collateral Agent receives conflicting instructions hereunder or under any of the Security
Document, the Collateral Agent shall be fully protected in refraining from acting until such conflict is resolved to the satisfaction
of the Collateral Agent. Neither the Collateral Agent nor any of its directors, officers, employees or agents shall be liable,
except for the Collateral Agent’s bad faith, negligence or willful misconduct as finally determined by a court of competent
jurisdiction for any action taken or omitted under or in connection with this Agreement, the Security Document or any other instrument
or document in connection herewith or therewith.

 

(v)         The
Collateral Agent may resign or be removed by the Buyers (by a vote of the holders of a majority of the outstanding principal of
the Notes) as Collateral Agent hereunder at any time upon at least thirty (30) days’ prior notice. If the Collateral Agent
at any time shall resign, the Buyers shall (by a vote of the holders of a majority of the outstanding principal of the Notes),
within ten (10) days after such notice appoint a successor Collateral Agent which shall thereupon become the Collateral Agent hereunder
and under the Security Document. If no successor Collateral Agent shall have been so appointed, and shall have accepted such appointment,
within the above time frame the retiring Collateral Agent may appoint a successor. Upon the acceptance of any appointment as Collateral
Agent hereunder by a successor Collateral Agent, such successor Collateral Agent shall be entitled to receive from the retiring
Collateral Agent such documents of transfer and assignment as such successor Collateral Agent may reasonably request, and shall
thereupon succeed to and become vested with all rights, powers, privileges and duties of the retiring Collateral Agent, and the
retiring Collateral Agent shall be discharged from its duties and obligations under this Agreement. After the effective date of
any retiring Collateral Agent’s resignation hereunder as collateral agent, the provisions of this section shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was Collateral Agent under this Agreement.

 

    	 	-6-	 

     

    

 

(vi)        The
Collateral Agent shall not be deemed to have knowledge or notice of the occurrence of any default unless the Collateral Agent has
received a copy of a notice thereof from a Buyer referring to this Agreement and describing such default. In the event that the
Collateral Agent receives such a notice, the Collateral Agent shall promptly give notice thereof to the other Buyers and to the
Company. The Collateral Agent shall be permitted to take such action with respect to any default as provided in this Agreement
and the Security Document.

 

(vii)       Each
Buyer, by its acceptance of the benefits hereof and of the Security Document, agrees that it shall have no right individually to
realize upon any of the Collateral, it being understood and agreed by each Buyer that all rights and remedies may be exercised
solely by the Collateral Agent for the benefit of the Buyer in accordance with the provisions of this Agreement and the Security
Document in the Collateral Agent’s sole and absolute discretion.

 

(viii)      Upon
any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to its
creditors upon any dissolution or winding-up or total or partial liquidation or reorganization of the Company, whether voluntary
or involuntary or in bankruptcy, insolvency, receivership or other proceedings including, without limitation, all amounts received
by the Collateral Agent on behalf of the Buyers, or received by the Buyers, shall be paid by the in accordance with its outstanding
secured Obligations (as defined in the Security Document) to each of the Buyers in accordance with clause (xii) below. Any and
all amounts referred to in this clause (viii)or any other amounts or proceeds of collateral received by any of the Buyers shall
be held in trust for the benefit of all of the Buyers, shall be immediately delivered by the applicable Buyers to the Collateral
Agent in the amount and form received, and shall be apportioned, paid over or delivered among the Buyers in accordance with clause
(xi) of this Agreement.

 

(ix)         Except
as provided by law, the security interests in the Collateral shall be for the ratable benefit of the Buyers, shall rank equally
in priority, none being senior or subordinate to any other. No Buyer shall contest the validity, perfection, priority or enforceability
of the lien of any other Buyer in the Collateral. Each Buyer, by its acceptance of the benefits hereof, agrees that it shall have
no right individually to realize upon any of the Collateral under this Agreement, the Security Document, pursuant to applicable
law, or otherwise, it being understood and agreed by each Buyer that all rights and remedies under this Agreement, the Security
Document, pursuant to applicable law, or otherwise, may be exercised solely by the Collateral Agent for the benefit of Buyers in
accordance with the provisions of this Agreement and the Security Document.

 

(x)          Upon
any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to creditors
upon any dissolution or winding-up or total or partial liquidation or reorganization of the Company, whether voluntary or involuntary
or in bankruptcy, insolvency, receivership or other proceedings (each such payment, distribution and/or amount is hereafter referred
to as a “Collateral Proceeds Amount”), shall be disbursed in accordance with clause (xi) below.

 

(xi)         Any
and all Collateral Proceeds Amount and any other amounts or proceeds of Collateral received by any of the Buyers shall be held
in trust for the benefit of all of the Buyers, shall be immediately delivered by the applicable Buyer to the Collateral Agent in
the amount and form received, and, subject to the rights to any of the Collateral Proceeds Amount or such other amounts or proceeds
of Collateral of the holders of the other security interests in the Collateral referred to in clause (x) above, shall be apportioned,
paid over or delivered as follows: first, to the Collateral Agent for the payment or reimbursement of any expenses and fees
of, or any other amount payable to, the Collateral Agent hereunder or under the Security Document, and next, among the Buyers
on a pro rata basis to each in accordance with the Company’s outstanding obligations to each of the Buyers which are secured
pursuant to this Agreement.

 

		5.	REGISTER; TRANSFER AGENT INSTRUCTIONS.

 

(a)          Register.
The Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may designate
by notice to each holder of Securities), a register for the Notes in which the Company shall record the name and address of the
Person in whose name the Notes have been issued (including the name and address of each transferee), the aggregate number of Notes
held by such Person, and any tax related information required to be maintained. The Company shall keep the register open and available
at all times during business hours for inspection of any Buyer or its legal representatives.

 

    	 	-7-	 

     

    

 

(b)          Transfer
Agent Instructions. If a Buyer effects a sale, assignment or transfer of the Conversion Shares, the Company shall permit the
transfer, in compliance with applicable securities laws, and shall promptly instruct its transfer agent to issue one or more certificates
or credit shares to the applicable balance accounts at DTC in such name and in such denominations as specified by such Buyer to
effect such sale, transfer or assignment. In the event that such sale, assignment or transfer involves Conversion Shares sold,
assigned or transferred pursuant to an effective registration statement or in compliance with Rule 144, the transfer agent shall
issue such shares to such Buyer, assignee or transferee (as the case may be) without any restrictive legend in accordance with
Section 2(f). Any fees (with respect to the transfer agent, counsel to the Company or otherwise) associated with the issuance of
such opinion or the removal of any legends on any of the Securities as referred to in Section 2(f) shall be borne by the Company.

 

		6.	CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

 

The obligation of the Company hereunder
to issue and sell the Notes to each Buyer at the Closing is subject to the satisfaction, at or before the Closing Date, of each
of the following conditions, provided that these conditions are for the Company’s sole benefit and may be waived by the Company
at any time in its sole discretion by providing each Buyer with prior written notice thereof:

 

(i)          Such
Buyer and each other Buyer shall have executed each of the Transaction Documents to which it is a party and delivered the same
to the Company.

 

(ii)         Such
Buyer and each other Buyer shall have delivered to the Company the Purchase Price for the Notes being purchased by such Buyer and
each other Buyer at the Closing by check or wire transfer of immediately available funds.

 

(iii)        The
representations and warranties of such Buyer and each other Buyer shall be true and correct in all material respects as of the
date hereof and as of the Closing Date as though made at that time (except for representations and warranties that speak as of
a specific date), and such Buyer and each other Buyer shall have performed, satisfied and complied in all material respects with
the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by such Buyer and
each other Buyer at or prior to the Closing Date.

 

		7.	CONDITIONS TO EACH BUYER’S OBLIGATION TO PURCHASE.

 

The obligation of each Buyer hereunder to
purchase the Notes at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following
conditions, provided that these conditions are for each Buyer’s sole benefit and may be waived by such Buyer at any time
in its sole discretion by providing the Company with prior written notice thereof:

 

(i)          The
Company shall have executed and delivered to such Buyer (A) each of the Transaction Documents and (B) the Notes (in such principal
amounts as such Buyer shall request) being purchased by such Buyer at the Closing pursuant to this Agreement.

 

(ii)         The
Company shall have delivered to such Buyer a copy of the Transfer Agent Instructions, substantially in the form attached hereto
as Exhibit D, which instructions shall have been delivered to and acknowledged in writing by the Company’s transfer
agent.

 

(iii)        The
representations and warranties of the Company shall be true and correct in all material respects (except for those representations
and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as
of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak
as of a specific date) and the Company shall have performed, satisfied and complied in all material respects with the covenants,
agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Company at or
prior to the Closing Date.

 

(iv)        The
Common Stock (I) shall be designated for quotation or listed on the Principal Market and (II) shall not have been suspended, as
of the Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension by the SEC or
the Principal Market have been threatened, as of the Closing Date.

 

    	 	-8-	 

     

    

 

(v)         The
Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale
of the Securities.

 

8.          TERMINATION.
In the event that the Closing shall not have occurred with respect to a Buyer on or before ten (10) Business Days from the date
hereof due to the Company’s or such Buyer’s failure to satisfy the conditions set forth in Sections 6 and 7 above (and
the nonbreaching party’s failure to waive such unsatisfied condition(s)), the nonbreaching party shall have the option to
terminate this Agreement at the close of business on such date without liability of any party to any other party.

 

		9.	MISCELLANEOUS.

 

(a)          Governing
Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict
of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the
laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees
not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit,
action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees
that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH
OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(b)          Counterparts.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile
signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if
the signature were an original, not a facsimile signature.

 

(c)          Headings.
The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement.

 

(d)          Severability.
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability
of any provision of this Agreement in any other jurisdiction.

 

(e)          Entire
Agreement; Amendments. This Agreement and the other Transaction Documents supersede all other prior oral or written agreements
between the Buyers, the Company, their affiliates and Persons acting on their behalf with respect to the matters discussed herein,
and this Agreement, the other Transaction Documents and the instruments referenced herein and therein contain the entire understanding
of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein,
neither the Company nor any Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No
provision of this Agreement may be amended other than by an instrument in writing signed by the Company and the Required Holders
(as defined in the Note), and any amendment to this Agreement made in conformity with the provisions of this Section 9(e) shall
be binding on all Buyers and holders of Securities, as applicable. No provision hereof may be waived other than by an instrument
in writing signed by the party against whom enforcement is sought. No such amendment shall be effective to the extent that it applies
to less than all of the holders of the applicable Securities then outstanding. No consideration shall be offered or paid to any
Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration
also is offered to all of the parties to the Transaction Documents or holders of Notes. The Company has not, directly or indirectly,
made any agreements with any Buyers relating to the terms or conditions of the transactions contemplated by the Transaction Documents
except as set forth in the Transaction Documents. Without limiting the foregoing, the Company confirms that, except as set forth
in this Agreement, no Buyer has made any commitment or promise or has any other obligation to provide any financing to the Company
or otherwise.

 

    	 	-9-	 

     

    

 

(f)          Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); or (iii) one Business Day after deposit with an overnight courier service, in each case properly addressed to the party
to receive the same. The addresses and facsimile numbers for such communications shall be:

 

	 	If to the Company:
	 	 	 
	 	 	Applied DNA Sciences, Inc.
	 	 	50 Health Sciences Drive
	 	 	Stony Brook, New York 11790
	 	 	Telephone:	(631) 240-8800
	 	 	Attention:	Chief Financial Officer
	 	 	 	 
	 	With copies to:
	 	 	 
	 	 	Pepper Hamilton LLP
	 	 	620 Eighth Street, Floor 37
	 	 	New York, NY 10018
	 	 	Telephone:	212-808-2724
	 	 	Attention:	Merrill Kraines, Esq.
	 	 	 	 
	 	If to the Transfer Agent:
	 	 	 
	 	 	American Stock Transfer and Trust Company
	 	 	6201 15th Ave.
	 	 	Brooklyn, New York 11219
	 	 	Telephone: (718) 921-8210
	 	 	Facsimile: (718) 921-8355
	 	 	Attention: Vito Cirone
	 	 	 
	 	If to the Collateral Agent:
	 	 	CSC
	 	 	251 Little Falls Drive
	 	 	Wilmington, DE 19808
	 	 	Telephone: (866) 403-5272
	 	 	Facsimile: (302) 636-5454
	 	 	Attention: [●]

 

If to a Buyer, to its address and facsimile number set forth
on the Schedule of Buyers, with copies to such Buyer’s representatives as set forth on the Schedule of Buyers, or to such
other address and/or facsimile number and/or to the attention of such other Person as the recipient party has specified by written
notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given
by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s
facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or
(C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt
from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively.

 

    	 	-10-	 

     

    

 

(g)          Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and
assigns, including any purchasers of the Notes. The Company shall not assign this Agreement or any rights or obligations hereunder
without the prior written consent of the Required Holders, including by way of a Fundamental Transaction (unless the Company is
in compliance with the applicable provisions governing Fundamental Transactions set forth in the Notes). A Buyer may assign some
or all of its rights hereunder without the consent of, but upon prompt written notice to, the Company, in which event such assignee
shall be deemed to be a Buyer hereunder with respect to such assigned rights.

 

(h)          No
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(i)           Reliance
by the Collateral Agent. The parties agree and acknowledge that the Collateral Agent may rely on the representations, warranties,
agreements and covenants of the Company contained in this Agreement and may rely on the representations and warranties to the respective
Buyer set forth in this Agreement as if such representations, warranties, agreements and covenants, as applicable, were made directly
to the Collateral Agent. In addition, no representation, warranty or covenant, express or implied, is or will be made by the Collateral
Agent with respect to the Company or the transactions contemplated by this Agreement; and no responsibility of any kind exists
with the Collateral Agent with respect to the completeness or accuracy of, or any other matter concerning, any other information
made or provided by the Company or its representatives to the Buyer (as to diligence matters or otherwise) or with respect to any
statements made regarding any such information by the Company, its representatives or the Collateral Agent to the Buyers.

 

(j)           Survival.
Unless this Agreement is terminated under Section 8, the representations and warranties of the Company and the Buyers contained
in Sections 2 and 3 and the agreements and covenants set forth in Sections 4, 5 and 9 shall survive the Closing for a period of
one (1) year from the date hereof. Each Buyer shall be responsible only for its own representations, warranties, agreements and
covenants hereunder.

 

(k)          Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

(l)           No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

(m)          Remedies.
Each Buyer and each holder of the Securities shall have all rights and remedies set forth in the Transaction Documents and all
rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights
which such holders have under any law. Any Person having any rights under any provision of this Agreement shall be entitled to
enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any
provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Company recognizes that in the event
that it fails to perform, observe, or discharge any or all of its obligations under the Transaction Documents, any remedy at law
may prove to be inadequate relief to the Buyers. The Company therefore agrees that the Buyers shall be entitled to seek temporary
and permanent injunctive relief in any such case without the necessity of proving actual damages and without posting a bond or
other security.

 

(n)          Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of)
the Transaction Documents, whenever any Buyer exercises a right, election, demand or option under a Transaction Document and the
Company does not timely perform its related obligations within the periods therein provided, then such Buyer may rescind or withdraw,
in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or
in part without prejudice to its future actions and rights.

 

    	 	-11-	 

     

    

 

(o)          Payment
Set Aside. To the extent that the Company makes a payment or payments to the Buyers hereunder or pursuant to any of the other
Transaction Documents or the Buyers enforce or exercise their rights hereunder or thereunder, and such payment or payments or the
proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee,
receiver or any other Person under any law (including, without limitation, any bankruptcy law, foreign, state or federal law, common
law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended
to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement
or setoff had not occurred.

 

(p)          Independent
Nature of Buyers’ Obligations and Rights. The obligations of each Buyer under any Transaction Document are several and
not joint with the obligations of any other Buyer, and no Buyer shall be responsible in any way for the performance of the obligations
of any other Buyer under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action
taken by any Buyer pursuant hereto or thereto, shall be deemed to constitute the Buyers as a partnership, an association, a joint
venture or any other kind of entity, or create a presumption that the Buyers are in any way acting in concert or as a group with
respect to such obligations or the transactions contemplated by the Transaction Documents and the Company acknowledges that the
Buyers are not acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. Each Buyer confirms that it has independently participated in the negotiation of the transaction contemplated. Each
Buyer shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out
of this Agreement or out of any other Transaction Documents, and it shall not be necessary for any other Buyer to be joined as
an additional party in any proceeding for such purpose.

 

[Signature Page Follows]

 

    	 	-12-	 

     

    

 

IN WITNESS WHEREOF, each Buyer and
the Company have caused their respective signature page to this Securities Purchase Agreement to be duly executed as of the date
first written above.

 

	 	COMPANY:
	 	 
	 	APPLIED DNA SCIENCES, INC.
	 	 
	 	By:	 
	 	 	Name: Beth Jantzen
	 	 	Title: Chief Financial Officer

 

[Signature Page to Securities Purchase
Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, each Buyer and
the Company have caused their respective signature page to this Securities Purchase Agreement to be duly executed as of the date
first written above.

 

Attestation of Receipt of Documents

 

Each Buyer hereby attests to receipt and review of the following
documents:

 

		1)	Purchase Agreement (including all exhibits and schedules)

 

		2)	Registration Rights Agreement

 

		3)	Security Agreement

 

		4)	Form of Note

 

	 	BUYERS:
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Securities Purchase
Agreement]

 

     

     

    

 

SCHEDULE
OF BUYERS

 

	(1)	 	(2)	 	(3)	 	 	(4)	 	 	(5)	 
	Buyer	 	Address and
 Facsimile Number
	 	Aggregate
 Principal
 Amount of
 Notes
	 	 	Purchase

                                                                                Price
	 	 	Legal Representative’s 

Address and
 Facsimile Number	 
	James A. Hayward	 	50 Health Sciences Drive, Stony Brook, NY 11790	 	$	500,000	 	 	$	2.50	 	 	 	                 	 
	Wayne Buchen	 	50 Health Sciences Drive, Stony Brook, NY 11790	 	$	50,000	 	 	$	2.50	 	 	 	 	 

 

     

     

    

 

EXHIBITS

 

	Exhibit A	Form of Notes
	Exhibit B	Registration Rights Agreement
	Exhibit C	Form of Security Agreement of the Company
	Exhibit D	Transfer Agent Instructions

 

     

     

    

 

Exhibit A

 

Form of Notes

 

    	 	Exhibit A-1	 

     

    

 

Exhibit B

 

Registration Rights Agreement

 

    	 	Exhibit B-1	 

     

    

 

Exhibit C

 

Form of Security Agreement of the Company

 

    	 	Exhibit C-1	 

     

    

 

Exhibit D

 

TRANSFER
AGENT INSTRUCTIONS

APPLIED DNA SCIENCES, INC.

 

November 29, 2018

 

American Stock Transfer and Trust Company, LLC

Operations Center

6201 15th Avenue, Third Floor

Brooklyn, NY 11219

Attention: [●]

 

Ladies and Gentlemen:

 

Reference is made to that certain Securities
Purchase Agreement, dated as of November 29, 2018 (the “Agreement”), by and among Applied DNA Sciences, Inc.,
a Delaware corporation (the “Company”), and the investors listed on the Schedule of Buyers attached thereto
(collectively, the “Buyers”), pursuant to which the Company is issuing to the Buyers secured convertible notes
of the Company (the “Notes”), which will be convertible into shares of the Company’s common stock, $0.001
par value per share (the “Common Stock”). The shares of Common Stock to be converted thereunder are referred
to herein as the “Conversion Shares.”

 

This letter shall serve as our authorization
and direction to you (provided that you are the transfer agent of the Company at such time) to issue the Conversion
Shares to or upon the order of a Buyer from time to time upon delivery to you of a properly completed and duly executed Conversion
Notice, in the form attached hereto as Exhibit I, which has been acknowledged by the Company as indicated by the signature
of a duly authorized officer of the Company thereon.

 

Specifically, upon receipt by the Company
of a copy of a Conversion Notice, the Company shall as soon as practicable, but in no event later than two (2) Business Days (as
defined below) after receipt of such Conversion Notice, deliver a Conversion Notice, which shall constitute an irrevocable instruction
to you to process such Conversion Notice in accordance with the terms of these instructions. Upon your receipt of a copy of the
executed Conversion Notice, you shall use your best efforts to, (A) provided you are participating in the DTC Fast Automated Securities
Transfer Program, credit the aggregate number of shares of Common Stock to which Buyer shall be entitled to Buyer’s or its
designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system or (B) issue and deliver (via reputable
overnight courier) to Buyer, a certificate representing such Securities that is free from all restrictive and other legends, registered
in the name of Buyer or its designee (the date by which such credit is so required to be made to the balance account of Buyer’s
or Buyer’s nominee with DTC or such certificate is required to be delivered to Buyer pursuant to the foregoing is referred
to herein as the “Required Delivery Date”).

 

You acknowledge and agree that so long as
you have previously received (a) written confirmation from the outside legal counsel of the Company that either (i) a registration
statement covering resales of the Conversion Shares has been declared effective by the Securities and Exchange Commission (the
“SEC”) under the Securities Act of 1933, as amended (the “1933 Act”), or (ii) that sales
of the Conversion Shares may be made in conformity with Rule 144 under the 1933 Act, and (b) if applicable, a copy of such registration
statement, then, as soon as practicable after your receipt of a notice of transfer or Conversion Notice, you shall issue the certificates
representing the Conversion Shares and such certificates shall not bear any legend restricting transfer of the Conversion Shares
thereby and should not be subject to any stop-transfer restriction; provided, however, that if such Conversion Shares
are not registered for resale under the 1933 Act or able to be sold under Rule 144, then the certificates for such Conversion Shares
shall bear the following legend:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE
OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM
REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD
PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH
A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

    	 	Exhibit D-1	 

     

    

 

A form of written confirmation from the
Company’s outside legal counsel that a registration statement covering resales of the Conversion Shares has been declared
effective by the SEC under the 1933 Act is attached hereto as Exhibit II.

 

Please execute this letter in the space
indicated to acknowledge your agreement to act in accordance with these instructions. Should you have any questions concerning
this matter, please contact me at (631) 240-8800.

 

	 	Very truly yours,
	 	 	 
	 	APPLIED DNA SCIENCES, INC.
	 	 	 
	 	By:	 
	 	 	Name: Beth Jantzen
	 	 	Title: Chief Financial Officer

 

    	 	Exhibit D-2	 

     

    

 

THE FOREGOING INSTRUCTIONS ARE

ACKNOWLEDGED AND AGREED TO

this 29th day of November, 2018

AMERICAN STOCK TRANSFER AND TRUST COMPANY,
LLC

 

	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

Enclosures

 

    	 	Exhibit D-3	 

     

    

 

EXHIBIT I

 

APPLIED
DNA SCIENCES, INC.

CONVERSION NOTICE

 

Reference is made to the Secured Convertible Note (the “Note”)
issued to the undersigned by Applied DNA Sciences, Inc. (the “Company”). In accordance with and pursuant to
the Note, the undersigned hereby elects to convert the Conversion Amount (as defined in the Note) of the Note indicated below into
Conversion Shares (as defined in the Note) of the Company, as of the date specified below.

 

	 	Date of Conversion:	 

 

	 	Aggregate Conversion Amount to be converted:	 

 

Please confirm the following information:

 

	 	Conversion Price:	 

 

	 	Number of shares of Common Stock to be issued:	 

 

Please issue the Common Stock into which
the Conversion Amount of the Note is being converted in the following name and to the following address:

 

	 	Issue to:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	Facsimile Number:	 

 

	 	Authorization:	 

 

	 	By:	 
	 	 	 
	 	Title:	 

 

	 	Dated:	 

 

	 	Account Number:	 
	 	(if electronic book entry transfer)

 

	 	Transaction Code Number:	 
	 	(if electronic book entry transfer)

 

    	 	Exhibit I-1	 

     

    

 

ACKNOWLEDGMENT

 

The Company hereby acknowledges this Conversion
Notice and hereby directs American Stock Transfer and Trust Company, LLC to issue the above indicated number of shares of Common
Stock in accordance with the Transfer Agent Instructions dated November 29, 2018 from the Company and acknowledged and agreed to
by American Stock Transfer and Trust Company, LLC.

 

	 	APPLIED DNA SCIENCES, INC
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 		 

     

    

 

EXHIBIT II

 

FORM OF
NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

American Stock Transfer and Trust Company, LLC

Operations Center

6201 15th Avenue, Third Floor

Brooklyn, NY 11219

Telephone: (718) 921-8210

Attention: [·]

 

Re: Applied DNA Sciences, Inc.

 

Ladies and Gentlemen:

 

We are counsel to Applied DNA Sciences,
Inc., a Delaware corporation (the “Company”), and have represented the Company in connection with that certain
Securities Purchase Agreement, dated as of [●], 2018 (the “Securities Purchase Agreement”), entered into
by and among the Company and the buyers named therein (collectively, the “Holders”) pursuant to which the Company
issued to the Holders secured convertible notes (the “Notes”) which are convertible into the Company’s
common stock, $0.001 par value per share (the “Common Stock”). Pursuant to the Securities Purchase Agreement,
the Company also has entered into a Registration Rights Agreement with the Holders (the “Registration Rights Agreement”)
pursuant to which the Company agreed, among other things, to register the resale of the Registrable Securities (as defined in the
Registration Rights Agreement), including the shares of Common Stock issuable upon conversion of the Notes under the Securities
Act of 1933, as amended (the “1933 Act”). In connection with the Company’s obligations under the Registration
Rights Agreement, on _______, 201_, the Company filed a Registration Statement on Form S-1 (File No. 333-_____________) (the “Registration
Statement”) with the Securities and Exchange Commission (the “SEC”) relating to the Registrable Securities
which names each of the Holders as a selling shareholder thereunder.

 

In connection with the foregoing, we advise
you that the SEC has entered an order declaring the Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS]
on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge, based upon our review of the list of current stop orders available
on the SEC’s website, that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose
are pending before, or threatened by, the SEC and the Registrable Securities are available for resale under the 1933 Act pursuant
to the Registration Statement.

 

    	 	Exhibit II-1	 

     

    

 

This letter shall serve as our standing
instruction to you that the shares of Common Stock are freely transferable by the Holders pursuant to the Registration Statement.
You need not require further letters from us to effect any future legend-free issuance or reissuance of shares of Common Stock
to the Holders as contemplated by the Company’s Irrevocable Transfer Agent Instructions dated November 29, 2018, provided
at the time of such reissuance, the Company has not otherwise notified you that the Registration Statement is unavailable for the
resale of the Registrable Securities.

 

	 	Very truly yours,
	 	 	 
	 	[ISSUER’S COUNSEL]
	 	 	 
	 	By:	 
	 	 	 
	cc: [LIST NAMES OF BUYERS]	 	 

 

    	 	Exhibit II-2

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