Document:

EXHIBIT 10.1

 

FORM
OF SECURED CONVERTIBLE NOTE

 

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, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II)
UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. ANY TRANSFEREE OF THIS NOTE SHOULD CAREFULLY REVIEW THE TERMS OF
THIS NOTE, INCLUDING SECTIONS 3(c)(ii) AND 17(a) HEREOF. THE PRINCIPAL AMOUNT REPRESENTED BY THIS NOTE AND, ACCORDINGLY, THE SECURITIES
ISSUABLE UPON CONVERSION HEREOF MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 3(c)(ii) OF THIS
NOTE.

 

Applied DNA Sciences, Inc.

Secured Convertible Note

 

	Issuance Date: __________	Original Principal Amount: U.S. $___________
	 	Interest Rate per Annum: 6.00%

 

FOR VALUE RECEIVED,
Applied DNA Sciences, Inc., a Delaware corporation (the “Company”), hereby promises to pay to [___________________]
or registered assigns (“Holder”) the amount set out above as the Original Principal Amount (as reduced pursuant
to the terms hereof pursuant to redemption, conversion or otherwise, the “Principal”) when due, whether upon
the Maturity Date (as defined below), acceleration, redemption or otherwise (in each case in accordance with the terms hereof)
and to pay interest (“Interest”) on any outstanding Principal at the applicable Interest Rate from the date
set out above as the Issuance Date (the “Issuance Date”) until the same becomes due and payable, whether upon
an Interest Date (as defined below), the Maturity Date, acceleration, redemption, conversion or otherwise (in each case in accordance
with the terms hereof). This Secured Convertible Note (including all Secured Convertible Notes issued in exchange, transfer or
replacement hereof, this “Note”) is one of an issue of Secured Convertible Notes issued pursuant to the Securities
Purchase Agreement on multiple Closing Dates (collectively, the “Notes” and such other Secured Convertible Notes,
the “Other Notes”). Certain capitalized terms used herein are defined in Section 26.

 

1. PAYMENTS OF PRINCIPAL.
Subject to the conversion of the Principal and accrued and unpaid Interest (as defined below) into Conversion Shares pursuant to
Section 8 hereof, on the Maturity Date, the Company shall pay to the Holder an amount in cash representing all outstanding Principal,
accrued and unpaid Interest. The “Maturity Date” shall be November 28, 2021. The Company may not prepay any
portion of the outstanding Principal amount of this Note and any accrued and unpaid Interest without the prior written consent
of the Holder, provided that on or before September 30, 2019, the Company shall have the option to take any action necessary,
in order to maintain its listing on the Principal Market, including but not limited to prepaying any portion of the outstanding
Principal amount of this Note and any accrued and unpaid Interest, without prior written consent of the Holder (the “Company
Optional Prepayment”). In the event the Company elects to exercise the Company Optional Prepayment on or prior to September
30, 2019, the Company must deliver notice of such exercise in writing to the Holder at least 20 days before such Company Option
Conversion. If the Company exercises the Company Optional Prepayment, the Holder shall have the option to convert the Principal
and accrued and unpaid Interest into either (i) Conversion Shares or (ii) to receive (a) an amount in cash representing all outstanding
Principal, accrued and unpaid Interest and (b) warrants in the form attached hereto as Exhibit II (the “Warrants”)
equal in amount to 40% of the Conversion Shares such Holder would have received had the Holder elected to receive Conversion Shares
instead of cash and with an exercise price of 105% of the Conversion Price. In the event the Holder elects to receive the Conversion
Shares, the Company may only effect the Company Optional Prepayment if each of the Equity Conditions (as defined below) shall have
been met (unless waived in writing by the Holder). If the Holder is in possession of any material non-public information at the
time the Company exercises such Company Optional Prepayment, the Company shall publicly disclose such material non-public information
regarding the exercise of the Company Optional Prepayment within one Trading Day of such exercise by the Company.

 

     

     

    

 

2. INTEREST; INTEREST
RATE.

 

(a) Interest on this Note
shall commence accruing on the Issuance Date and shall be computed on the basis of a 360-day year comprised of twelve thirty day
months and shall be payable in arrears semi-annually on May 29th and November 29th during the period beginning
on the Issuance Date and ending on, and including, the Maturity Date or the Conversion Date, as the case may be (the “Interest
Date”). Subject to the conversion of the accrued and unpaid Interest into Conversion Shares pursuant to Section 8 hereof,
Interest shall be payable on the Interest Date to the record holder of this Note on the Interest Date, in cash.

 

(b) From and after the
occurrence and during the continuance of an Event of Default, the Interest Rate shall be increased to 10% per annum, or the maximum
rate permissible by law, whichever is less. In the event that such Event of Default is subsequently cured, the adjustment referred
to in the preceding sentence shall cease to be effective as of the date of such cure; provided that the Interest as calculated
and unpaid at such increased rate during the continuance of such Event of Default shall continue to apply to the extent relating
to the days after the occurrence of such Event of Default through and including the date of cure of such Event of Default.

 

(c) Notwithstanding any
provision in this Note to the contrary, through the Maturity Date, at the option of the Company in lieu of paying in cash the interest
accrued to any Interest Date, any accrued but unpaid interest shall be capitalized and added as of such Interest Date to the principal
amount of this Note (the “PIK Amount”). Such PIK Amount shall bear interest from the applicable Interest Date
at the same rate per annum and be payable in the same manner as in the case of the original principal amount of this Note and shall
otherwise be treated as principal of this Note for all purposes. From and after each Interest Date, the principal amount of this
Note shall, including with respect to Conversion Amount, without further action on the part of the Company or the Holder, be deemed
to be increased by the PIK Amount so capitalized and added to principal in accordance with the provisions hereof.

 

3. CONVERSION OF NOTES.
This Note shall be convertible into Conversion Shares, on the terms and conditions set forth in this Section 3.

 

(a) Conversion Right.
At any time or times on or after the Issuance Date, the Holder shall be entitled to convert any portion of the outstanding and
unpaid Conversion Amount (as defined below) into fully paid and nonassessable Conversion Shares in accordance with Section 3(c),
at the Conversion Rate (as defined below). The Company shall not issue any fraction of a Conversion Share upon any conversion.
If the issuance would result in the issuance of a fraction of a Conversion Share, the Company shall round such fraction of a Conversion
Share up to the nearest whole share. The Company shall pay any and all transfer, stamp and similar taxes that may be payable with
respect to the issuance and delivery of Conversion Shares upon conversion of any Conversion Amount; provided that the Company
shall not be required to pay any tax that may be payable in respect of the issuance and delivery of Conversion Shares to any Person
other than the Holder or with respect to any income tax due by the Holder with respect to such Conversion Shares.

 

(b) Conversion Rate.
The number of Conversion Shares issuable upon conversion of any Conversion Amount pursuant to Section 3(a) shall be determined
by dividing (x) such Conversion Amount by (y) the Conversion Price (the “Conversion Rate”).

 

(i) “Conversion
Amount” means the portion of the Principal to be converted, redeemed or otherwise with respect to which this determination
is being made, plus all accrued and unpaid Interest on any Conversion Amount up to and including the Conversion Date (as defined
below).

 

(ii) “Conversion
Price” means $0.54.

 

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(c) Mechanics of Conversion.

 

(i) Optional Conversion.
To convert any Conversion Amount into Conversion Shares on any date (a “Conversion Date”), the Holder shall
(A) transmit by facsimile or email (by attachment in PDF format) (or otherwise deliver), for receipt on or prior to 11:59 p.m.,
New York Time, on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit I (the “Conversion
Notice”) to the Company and (B) if required by Section 3(c)(ii), surrender this Note to a common carrier for delivery
to the Company as soon as practicable on or following such date (or an indemnification undertaking with respect to this Note in
the case of its loss, theft or destruction). On or before the first Business Day following the date of receipt of a Conversion
Notice, the Company shall transmit by facsimile or email (by attachment in PDF format) a confirmation (the “Conversion
Confirmation”) of receipt of such Conversion Notice to the Holder and the Company’s Transfer Agent. Any Conversion
Confirmation delivered by the Company shall confirm the Conversion Amount. On or before the second Business Day following the date
of receipt of a Conversion Notice, the Company shall, provided that the Transfer Agent is participating in the DTC Fast Automated
Securities Transfer Program, credit such aggregate number of Conversion Shares to which the Holder shall be entitled to the Holder’s
or its designee’s balance account with DTC through its Deposit/Withdrawal as Custodian system. If the Transfer Agent is not
participating in the DTC Fast Automated Securities Transfer Program or if a Holder otherwise requests, the Company shall issue
and deliver (via reputable overnight courier) to the address as specified in the Conversion Notice, a certificate, registered in
the name of the Holder or its designee, for the number of Conversion Shares to which the Holder shall be entitled. If this Note
is physically surrendered for conversion as required by Section 3(c)(ii) and the outstanding Principal of this Note is greater
than the Principal portion of the Conversion Amount being converted, then the Company shall as soon as practicable and in no event
later than five Business Days after receipt of this Note and at its own expense, issue and deliver to the holder a new Note (in
accordance with Section 17(d)) representing the outstanding Principal not converted. The Person or Persons entitled to receive
the Conversion Shares issuable upon a conversion of this Note shall be treated for all purposes as the record holder or holders
of such Conversion Shares on the Conversion Date. In the event the Company does not comply with the provisions set forth in this
Section 3(c)(i), the Holder may rescind the Conversion Notice in writing by facsimile or email to the Company.

 

(ii) Registration; Book-Entry.
The Company shall maintain a register (the “Register”) for the recordation of the names and addresses of the
holders of each Note and the principal amount of the Notes held by such holders (the “Registered Notes”). The
entries in the Register shall be conclusive and binding for all purposes absent manifest error. The Company and the holders of
the Notes shall treat each Person whose name is recorded in the Register as the owner of a Note for all purposes, including, without
limitation, the right to receive payments of principal and interest hereunder, notwithstanding notice to the contrary. A Registered
Note may be assigned or sold in whole or in part only by registration of such assignment or sale on the Register. Upon its receipt
of a request to assign or sell all or part of any Registered Note by a Holder, the Company shall record the information contained
therein in the Register and issue one or more new Registered Notes in the same aggregate principal amount as the principal amount
of the surrendered Registered Note to the designated assignee or transferee pursuant to Section 17. Notwithstanding anything to
the contrary set forth herein, upon conversion of any portion of this Note in accordance with the terms hereof, the Holder shall
not be required to physically surrender this Note to the Company unless (A) the full Principal amount represented by this Note
is being converted or (B) the Holder has provided the Company with prior written notice (which notice may be included in a Conversion
Notice) requesting reissuance of this Note upon physical surrender of this Note. The Holder and the Company shall maintain records
showing the Principal and Interest converted and the dates of such conversions or shall use such other method, reasonably satisfactory
to the Holder and the Company, so as not to require physical surrender of this Note upon conversion.

 

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(d) Holder’s Conversion
Limitations. The Company shall not effect any conversion of this Note, and a Holder shall not have the right to convert any
portion of this Note, to the extent that after giving effect to the conversion set forth on the applicable Conversion Notice, the
Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of
the Holder’s Affiliates (such Persons, “Attribution Parties”)) would beneficially own in excess of the
Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock
beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of shares of Common Stock
issuable upon conversion of this Note with respect to which such determination is being made, but shall exclude the number of shares
of Common Stock which are issuable upon (i) conversion of the remaining, unconverted principal amount of this Note beneficially
owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or unconverted
portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained
herein (including, without limitation, any Other Note or the Warrants) beneficially owned by the Holder or any of its Affiliates
or Attribution Parties. Except as set forth in the preceding sentence, for purposes of this Section 3(d), beneficial ownership
shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
To the extent that the limitation contained in this Section 3(d) applies, the determination of whether this Note is convertible
(in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which principal
amount of this Note is convertible shall be in the sole discretion of the Holder, and the submission of a Notice of Conversion
shall be deemed to be the Holder’s determination of whether this Note may be converted (in relation to other securities owned
by the Holder together with any Affiliates or Attribution Parties) and which principal amount of this Note is convertible, in each
case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, the Holder will be deemed to represent
to the Company each time it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions set
forth in this paragraph and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition,
a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange
Act and the rules and regulations promulgated thereunder. For purposes of this Section 3(d), in determining the number of outstanding
shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of
the following: (i) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (ii)
a more recent public announcement by the Company, or (iii) a more recent written notice by the Company or the Company’s transfer
agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company
shall within one Trading Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.
In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise
of securities of the Company, including this Note, by the Holder or its Affiliates since the date as of which such number of outstanding
shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 9.99% of the number of shares
of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion
of this Note held by the Holder. The Beneficial Ownership Limitation provisions of this paragraph shall be construed and implemented
in a manner otherwise than in strict conformity with the terms of this Section 3(d) to correct this paragraph (or any portion hereof)
which may be defective or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or
supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall
apply to a successor holder of this Note. The Holder of this Note shall have the option to opt-out of this Section 3(d) by providing
notice in writing to the Company that Section 3(d) of this Note shall not apply to such Holder, which election by such Holder will
be effective as of the Issuance Date.

 

4. RIGHTS UPON EVENT OF
DEFAULT.

 

(a) Event of Default.
Each of the following events shall constitute an “Event of Default:”

 

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(i) the suspension from trading
or failure of the Common Stock to be listed on an Eligible Market for a period of five consecutive Trading Days or for more than
an aggregate of ten Trading Days in any 365-day period;

 

(ii) the Company’s
failure to pay to the Holder any amount of Principal, Interest, or other amounts when and as due under this Note or any other agreement,
document, certificate or other instrument delivered in connection with the transactions contemplated hereby and thereby to which
the Holder is a party, except, in the case of a failure to pay Interest and other amounts when and as due, in which case only if
such failure continues for a period of at least three Business Days after receipt of a demand for payment by Holder;

 

(iii) the Company or any
of its Subsidiaries, pursuant to or within the meaning of Title 11, U.S. Code, or any similar Federal, foreign or state law for
the relief of debtors (collectively, “Bankruptcy Law”), (A) commences a voluntary case, (B) consents to the
entry of an order for relief against it in an involuntary case, (C) consents to the appointment of a receiver, trustee, assignee,
liquidator or similar official (a “Custodian”), (D) makes a general assignment for the benefit of its creditors
or (E) admits in writing that it is generally unable to pay its debts as they become due;

 

(iv) any proceeding is instituted
against the Company or any of its Subsidiaries in an involuntary case, or a court of competent jurisdiction enters an order or
decree under any Bankruptcy Law that (A) appoints a Custodian of the Company or any of its Subsidiaries for all or substantially
all of its property or (B) orders the liquidation of the Company or any of its Subsidiaries and, in each case, such order or decree
is not dismissed or stayed within thirty days of such entry;

 

(v) the Company shall fail
to perform or observe any covenant, agreement or other obligation contained in any Transaction Document on its part to be performed
or observed and such failure shall remain unremedied for a period of ten Business Days after receipt by the Company of a notice
of such failure by Holder; provided, however, that if the default cannot by its nature be cured within such ten Business
Day period or cannot after diligent attempts by the Company be cured within such ten Business Day period, and such default is likely
to be cured within a reasonable time, then the Company shall have an additional period (which shall not in any case exceed thirty
(30) days) to attempt to cure such default, and within such reasonable time period the failure to cure the default shall not be
deemed an Event of Default;

 

(vi) the Security Agreement
(as defined in the Securities Purchase Agreement) shall, for any reason, after the perfection date specified in the Securities
Purchase Agreement, cease to create a valid, enforceable and perfected first priority security interest and Lien in any of the
Collateral (as defined in the Security Agreement) purported to be covered thereby, or the Company shall so state in writing, or
the Company shall in any way challenge, or shall bring any proceeding which shall in any way challenge, the prior valid, enforceable
or perfected status of such security interest or Lien or the validity or enforceability thereof;

 

(b) Remedies. Upon
the occurrence of an Event of Default, the Company shall within five Business Days deliver written notice thereof via facsimile
or email and overnight courier (an “Event of Default Notice”) to the Holder. At any time after the earlier of
the Holder’s receipt of an Event of Default Notice and the Holder becoming aware of an Event of Default, the Holder (by an
affirmative vote of the holders of this Note and the Other Notes representing at least 30% of the aggregate principal amount of
the Company’s Notes and the Other Notes then outstanding) may require the Company to redeem all or any portion of this Note
by delivering written notice thereof (the “Event of Default Redemption Notice”) to the Company, which Event
of Default Redemption Notice shall indicate the portion of this Note the Holder is electing to redeem and, in the case the Holder
has not received an Event of Default Notice, the Event of Default of which the Holder has become aware. Each portion of this Note
subject to redemption by the Company pursuant to this Section 4(b) shall be redeemed by the Company at the Event of Default Redemption
Price. The “Event of Default Redemption Price” means the sum of (a) the greater of (i) the outstanding Principal
of this Note, plus all accrued and unpaid Interest hereon, divided by the Conversion Price on the date the Event of Default Redemption
Price is either (A) demanded (if demand or notice is required to create an Event of Default) or otherwise due or (B) paid in full,
whichever has a lower Conversion Price, multiplied by the volume-weighted average price (VWAP) on the date the Event of Default
Redemption Price is either (x) demanded or otherwise due or (y) paid in full, whichever has a higher VWAP, or (ii) 130% of the
outstanding Principal of this Note, plus 100% of accrued and unpaid Interest hereon, and (b) all other amounts, costs, expenses
and liquidated damages due in respect of this Note. Redemptions required by this Section 4(b) shall be made in accordance with
the provisions of Section 12. To the extent redemptions required by this Section 4(b) are deemed or determined by a court of competent
jurisdiction to be prepayments of the Note by the Company, such redemptions shall be deemed to be voluntary prepayments. The parties
hereto agree that in the event of the Company’s redemption of any portion of the Note under this Section 4(b), the Holder’s
damages would be uncertain and difficult to estimate because of the parties’ inability to predict future interest rates and
the uncertainty of the availability of a suitable substitute investment opportunity for the Holder.

 

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5. RIGHTS UPON FUNDAMENTAL
TRANSACTION; CHANGE OF CONTROL.

 

(a) Assumption.
The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes in writing all of
the obligations of the Company under this Note and the other Transaction Documents (as defined in the Securities Purchase Agreement)
in accordance with the provisions of this Section 5(a) pursuant to written agreements in form and substance reasonably satisfactory
to the Required Holders and approved by the Required Holders prior to such Fundamental Transaction, including agreements to deliver
to each holder of Notes in exchange for such Notes a security of the Successor Entity evidenced by a written instrument substantially
similar in form and substance to the Notes, including, without limitation, having a principal amount and interest rate equal to
the principal amounts and the interest rates of the Notes then outstanding held by such holder, having similar conversion rights
and having similar ranking to the Notes, and satisfactory to the Required Holders. Upon the occurrence of any Fundamental Transaction,
the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction,
the provisions of this Note referring to the “Company” shall refer instead to the Successor Entity), and may exercise
every right and power of the Company and shall assume all of the obligations of the Company under this Note with the same effect
as if such Successor Entity had been named as the Company herein. Upon consummation of the Fundamental Transaction, the Successor
Entity shall deliver to the Holder confirmation that there shall be issued upon conversion or redemption of this Note at any time
after the consummation of the Fundamental Transaction, in lieu of the shares of the Company’s Common Stock (or other securities,
cash, assets or other property) issuable upon the conversion or redemption of the Notes prior to such Fundamental Transaction,
such shares of the publicly traded common stock (or their equivalent) of the Successor Entity (including its Parent Entity), as
adjusted in accordance with the provisions of this Note. The provisions of this Section 5 shall apply similarly and equally to
successive Fundamental Transactions and shall be applied without regard to any limitations on the conversion or redemption of this
Note.

 

(b) Redemption Right.
No sooner than fifteen days nor later than ten days prior to the consummation of a Change of Control, but not prior to the public
announcement of such Change of Control, the Company shall deliver written notice thereof via facsimile or email and overnight courier
to the Holder (a “Change of Control Notice”). At any time during the period beginning after the Holder’s
receipt of a Change of Control Notice and ending twenty Trading Days after the date of the consummation of such Change of Control,
the Holder may require the Company to redeem all or any portion of this Note by delivering written notice thereof (“Change
of Control Redemption Notice”) to the Company, which Change of Control Redemption Notice shall indicate the Conversion
Amount the Holder is electing to redeem. The portion of this Note subject to redemption pursuant to this Section 5 shall be redeemed
by the Company in cash at a price equal to the Conversion Amount being redeemed plus any accrued and unpaid interest on the Conversion
Amount being redeemed (the “Change of Control Redemption Price”). Redemptions required by this Section 5(b)
shall be made in accordance with the provisions of Section 12. To the extent redemptions required by this Section 5(b) are deemed
or determined by a court of competent jurisdiction to be prepayments of the Note by the Company, such redemptions shall be deemed
to be voluntary prepayments. The parties hereto agree that in the event of the Company’s redemption of any portion of the
Note under this Section 5(b), the Holder’s damages would be uncertain and difficult to estimate because of the parties’
inability to predict future interest rates and the uncertainty of the availability of a suitable substitute investment opportunity
for the Holder.

 

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6. RIGHTS UPON ISSUANCE
OF PURCHASE RIGHTS AND OTHER CORPORATE EVENTS.

 

(a) Purchase Rights.
If at any time the Company grants, issues or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities
or other property pro rata to the record holders of any class of Common Stock (the “Purchase Rights”), then
the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which
the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete conversion
of this Note (without taking into account any limitations or restrictions on the convertibility of this Note) immediately before
the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the
date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

 

(b) Other Corporate
Events. In addition to and not in substitution for any other rights hereunder, prior to the consummation of any Fundamental
Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect
to or in exchange for shares of Common Stock (a “Corporate Event”), the Company shall make appropriate provision
to insure that the Holder will thereafter have the right to receive upon a conversion of this Note, at the Holder’s option,
(i) in addition to the Conversion Shares receivable upon such conversion, such securities or other assets to which the Holder would
have been entitled with respect to such Conversion Shares had such Conversion Shares been held by the Holder upon the consummation
of such Corporate Event (without taking into account any limitations or restrictions on the convertibility of this Note) or (ii)
in lieu of the Conversion Shares otherwise receivable upon such conversion, such securities or other assets received by the holders
of shares of Common Stock in connection with the consummation of such Corporate Event in such amounts as the Holder would have
been entitled to receive had this Note initially been issued with conversion rights for the form of such consideration (as opposed
to shares of Common Stock) at a conversion rate for such consideration commensurate with the Conversion Rate. Provision made pursuant
to the preceding sentence shall be in a form and substance satisfactory to the Required Holders. The provisions of this Section
6 shall apply similarly and equally to successive Corporate Events and shall be applied without regard to any limitations on the
conversion or redemption of this Note.

 

7. RIGHTS UPON ISSUANCE
OF OTHER SECURITIES.

 

(a) Stock Dividends
and Stock Splits. If the Company, at any time while this Note is outstanding (A) pays a stock dividend or otherwise makes a
distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares
of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company pursuant to
this Note), or (B) subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding
shares of Common Stock into a greater number of shares, the Conversion Price in effect immediately prior to such subdivision will
be proportionately reduced. If the Company at any time while this Note is outstanding: combines (by combination, reverse stock
split or otherwise) one or more classes of its outstanding shares of Common Stock as the case may be, into a smaller number of
shares, the Conversion Price in effect immediately prior to such combination will be proportionately modified.

 

(b) Other Events.
If any event occurs of the type contemplated by the provisions of this Section 7 but not expressly provided for by such provisions
(including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features),
then the Company’s Board of Directors will make an appropriate adjustment in the Conversion Price so as to protect the rights
of the Holder under this Note; provided that no such adjustment will increase the Conversion Price as otherwise determined
pursuant to this Section 7.

 

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8. COMPANY’S RIGHT
OF MANDATORY CONVERSION.

 

(a) Mandatory Conversion.
If the price of the Company’s Common Stock shall remain at a closing price of $3.50 or more for a period of twenty consecutive
Trading Days, the Company shall have the right to require the Holder to convert all, or any part, of the Conversion Amount of this
Note into fully paid, validly issued and nonassessable shares of Common Stock in accordance with Section 3(c) hereof at the Conversion
Rate with respect to the Conversion Amount (the “Mandatory Conversion”). The Company may only effect the Mandatory
Conversion if each of the Equity Conditions shall have been met (unless waived in writing by the Holder) and subject to the Holder’s
Conversion Limitations set forth above in Section 3(d), if applicable. “Equity Conditions” means, during the
period in question, (a) the Company shall have duly honored all conversions scheduled to occur or occurring by virtue of one or
more Conversion Notices of the Holder, if any, (b)(i) there is an effective Registration Statement pursuant to which the Holder
is permitted to utilize the prospectus thereunder to resell all of the shares of Common Stock issuable pursuant to the Note (and
the Company believes, in good faith, that such effectiveness will continue uninterrupted for the foreseeable future) or (ii) all
of the Conversion Shares issuable pursuant to the Note may be resold pursuant to Rule 144 without volume or manner-of-sale restrictions
or current public information requirements as determined by the counsel to the Company as set forth in a written opinion letter
to such effect, addressed and acceptable to the Transfer Agent and the Holder, (c) the Common Stock is trading on an Eligible Market
and all of the shares issuable pursuant to the Note are listed or quoted for trading on such Eligible Market (and the Company believes,
in good faith, that trading of the Common Stock on a Eligible Market will continue uninterrupted for the foreseeable future), (d)
there is a sufficient number of authorized but unissued and otherwise unreserved shares of Common Stock for the issuance of all
of the shares then issuable pursuant to the Note, (e) there is no existing Event of Default and no existing event which, with the
passage of time or the giving of notice, would constitute an Event of Default and (f) the issuance of the shares in question to
the Holder would not violate the limitations set forth in Section 3(d) herein. The mechanics of conversion set forth in Section
3(c) shall apply to any Mandatory Conversion as if the Company and the Transfer Agent had received from the Holder on the Mandatory
Conversion Date a Conversion Notice with respect to the Conversion Amount being converted pursuant to the Mandatory Conversion.
If the Holder is in possession of any material non-public information at the time the Company exercises its right of Mandatory
Conversion, the Company shall publicly disclose such material non-public information regarding the exercise of its right of Mandatory
Conversion within one Trading Day of such exercise by the Company.

 

9. SECURITY. This
Note and the Other Notes are secured to the extent, within the time and in the manner set forth in the Security Documents (as defined
in the Securities Purchase Agreement).

 

10. NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation, Bylaws or
through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities,
or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Note, and will
at all times in good faith carry out all of the provisions of this Note and take all reasonable action as may be required to protect
the rights of the Holder of this Note.

 

11. RESERVATION OF AUTHORIZED
SHARES.

 

(a) Reservation.
The Company shall reserve out of its authorized and unissued stock a number of shares of Common Stock or other securities issuable
upon conversion of the Notes, as the case may be, for each of the Notes equal to 100% of the Conversion Rate with respect to the
Conversion Amount of each such Note as of the Issuance Date (such applicable amount, the “Required Reserve Amount”).
The Company shall increase the Required Reserved Amount in proportion to any increase in the outstanding principal amount of the
Note resulting from a PIK amount.

 

    	 	- 8 -	 

     

    

 

(b) Insufficient Authorized
Shares. If at any time while any of the Notes remain outstanding the Company does not have a sufficient number of authorized
and unreserved shares of Common Stock or other securities issuable upon conversion of the Notes, as the case may be, to satisfy
its obligation to reserve for issuance upon conversion of the Notes at least a number of shares of Common Stock or other securities
issuable upon conversion of the Notes, as the case may be, equal to the Required Reserve Amount (an “Authorized Share
Failure”), then the Company shall immediately take all action necessary to increase the Company’s authorized shares
of Common Stock or other securities issuable upon conversion of the Notes, as the case may be, to an amount sufficient to allow
the Company to reserve the Required Reserve Amount for the Notes then outstanding. Without limiting the generality of the foregoing
sentence, as soon as reasonably practicable after the date of the occurrence of an Authorized Share Failure, but in no event later
than sixty days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for
the approval of an increase in the number of authorized shares of Common Stock or, if required by applicable law, other securities
issuable upon conversion of the Notes, as the case may be. In connection with such meeting, the Company shall provide each stockholder
with a proxy statement and shall use its reasonable efforts to solicit its stockholders’ approval of such increase in authorized
shares of Common Stock or, if required by applicable law, other securities issuable upon conversion of the Note, as the case may
be, and to cause its board of directors of the Company to recommend to the stockholders that they approve such proposal.

 

12. HOLDER’S REDEMPTIONS.

 

(a) Mechanics. The
Company shall deliver the applicable Event of Default Redemption Price or the Change of Control Redemption Price (together, the
 “Redemption Price”) to the Holder within five Business Days after the Company’s receipt of the Holder’s
Event of Default Redemption Notice or Change of Control Redemption Notice (together, the “Redemption Notice”).
In the event of a redemption of less than all of the Conversion Amount of this Note, the Company shall promptly cause to be issued
and delivered to the Holder a new Note (in accordance with Section 17(d)) representing the outstanding Principal which has not
been redeemed. In the event that the Company does not pay the applicable Redemption Price to the Holder within the time period
required, at any time thereafter and until the Company pays such unpaid Redemption Price in full, the Holder shall have the option,
in lieu of redemption, to require the Company to promptly return to the Holder all or any portion of this Note representing the
Conversion Amount that was submitted for redemption and for which the applicable Redemption Price has not been paid. Upon the Company’s
receipt of such notice, (x) the applicable Redemption Notice shall be null and void with respect to such Conversion Amount, and
(y) the Company shall immediately return this Note, or issue a new Note (in accordance with Section 17(d)) to the Holder representing
the sum of such Conversion Amount to be redeemed together with accrued and unpaid Interest with respect to such Conversion Amount.

 

(b) Redemption by Other
Holders. Upon the Company’s receipt of notice from any of the holders of the Other Notes for redemption or repayment
as a result of an event or occurrence substantially similar to the events or occurrences described in Section 4(b), the Company
shall immediately, but no later than one Business Day of its receipt thereof, forward to the Holder by facsimile or email a copy
of such notice.

 

13. VOTING RIGHTS.
The Holder shall have no voting rights as the holder of this Note, except as required by law, including, but not limited to, the
Delaware General Corporation Law, and as expressly provided in this Note.

 

14. COVENANTS. So
long as this Note is outstanding:

 

(a) Rank. All payments
due under this Note shall rank pari passu with all Other Notes.

 

(b) Certificate of Incorporation
and Bylaws. Except as set forth in Section 11(b), the Company shall not amend its Certificate of Incorporation or Bylaws without
the prior written consent of the Required Holders (which consent shall not be unreasonably withheld).

 

    	 	- 9 -	 

     

    

 

(c) Use of Proceeds.
The Company will use the proceeds from the sale of the Notes for general working capital purposes.

 

(d) Negative Covenants.
As long as any portion of this Note remains outstanding, the Company shall not, and shall not permit any Subsidiaries to, directly
or indirectly:

 

(i)          other
than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any Debt, on or with respect to any
of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;

 

(ii)         other
than Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect to any of
its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;

 

(iii)        repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its Common Stock
or Common Stock equivalents other than as to (i) the Conversion Shares, Options or Warrants as permitted or required in the Transaction
Documents, (ii) repurchases of Common Stock or Common Stock equivalents of departing officers and directors of the Company, provided
that such repurchases shall not exceed an aggregate of $100,000 for all officers and directors during the term of this Note, and
(iii) other Permitted Investments;

 

(iv)        repay,
repurchase or offer to repay, repurchase or otherwise acquire any Debt, other than the Notes if on a pro-rata basis, other than
regularly scheduled principal and interest payments as such terms are in effect as of the Issuance Date, provided that such payments
shall not be permitted if, at such time, or after giving effect to such payment, any Event of Default exists or occurs;

 

(v)         pay
cash dividends or distributions on any equity securities of the Company; or

 

(vi)        enter
into any agreement with respect to any of the foregoing;

 

other than, in each case, as consented to by
the Required Holders.

 

15.
VOTE TO ISSUE, OR CHANGE THE TERMS OF, NOTES. The affirmative vote of the Required Holders at a meeting duly called for
such purpose or the written consent without a meeting shall be required for any change or amendment to this Note or the Other Notes.
In no event shall any amendment, modification or waiver be made to this Note which would adversely affect the economic terms
of the Holder including but not limited to any change in the Conversion Price, Maturity Date, Collateral, interest rate or schedule
of payment, redemptions or conversion, or any sale or change in the holders priority in the Collateral subject to a security interest,
without the prior written consent of such Holder. 

 

16. TRANSFER. This
Note and any Conversion Shares issued upon conversion of this Note may be offered, sold, assigned or transferred by the Holder
without the consent of the Company, subject only to the provisions of Section 2(f) of the Securities Purchase Agreement and applicable
securities laws.

 

    	 	- 10 -	 

     

    

 

17. REISSUANCE OF THIS
NOTE.

 

(a) Transfer. If
this Note is to be transferred, the Holder shall surrender this Note to the Company, whereupon the Company will forthwith issue
and deliver upon the order of the Holder a new Note (in accordance with Sections 16 and 17(d)), registered as the Holder may request,
representing the outstanding Principal being transferred by the Holder and, if less than the entire outstanding Principal is being
transferred, a new Note (in accordance with Section 17(d)) to the Holder representing the outstanding Principal not being transferred.
The Holder and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of Section 3(c)(ii)
following conversion or redemption of any portion of this Note, the outstanding Principal represented by this Note may be less
than the Principal stated on the face of this Note.

 

(b) Lost, Stolen or
Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Note, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to
the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall execute
and deliver to the Holder a new Note (in accordance with Section 17(d)) representing the outstanding Principal.

 

(c) Note Exchangeable
for Different Denominations. This Note is exchangeable, upon the surrender hereof by the Holder at the principal office of
the Company, for a new Note or Notes representing in the aggregate the outstanding Principal of this Note, and each such new Note
will represent such portion of such outstanding Principal as is designated by the Holder at the time of such surrender.

 

(d) Issuance of New
Notes. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new Note (i) shall be
of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining outstanding
(or in the case of a new Note being issued pursuant to Section 17(a) or Section 17(c), the Principal designated by the Holder which,
when added to the principal represented by the other new Notes issued in connection with such issuance, does not exceed the Principal
remaining outstanding under this Note immediately prior to such issuance of new Notes), (iii) shall have an issuance date, as indicated
on the face of such new Note, which is the same as the Issuance Date of this Note, (iv) shall have the same rights and conditions
as this Note, and (v) shall represent accrued and unpaid Interest on the Principal and Interest of this Note, from the Issuance
Date.

 

18. Remedies, Characterizations,
Other Obligations, Breaches And Injunctive Relief. The remedies provided in this Note shall be cumulative and in addition to
all other remedies available under this Note and any of the other Transaction Documents at law or in equity (including a decree
of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s right to pursue actual
and consequential damages for any failure by the Company to comply with the terms of this Note. Amounts set forth or provided for
herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the
Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance
thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and
that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach
or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to an injunction restraining any
breach, without the necessity of showing economic loss and without any bond or other security being required.

 

19. PAYMENT OF COLLECTION,
ENFORCEMENT AND OTHER COSTS. If (a) this Note is placed in the hands of an attorney for collection or enforcement or is collected
or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts due under this Note or to enforce
the provisions of this Note or (b) there occurs any bankruptcy, reorganization, receivership of the Company or other proceedings
affecting Company creditors’ rights and involving a claim under this Note, then the Company shall pay the costs incurred
by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization, receivership or
other proceeding, including, but not limited to, attorneys’ fees and disbursements.

 

20. CONSTRUCTION; HEADINGS.
This Note shall be deemed to be jointly drafted by the Company and all the holders of the Notes and shall not be construed against
any person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form part of, or affect
the interpretation of, this Note.

 

    	 	- 11 -	 

     

    

 

21. FAILURE OR INDULGENCE
NOT WAIVER. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privilege.

 

22. NOTICES; PAYMENTS.

 

(a) Notices. Whenever
notice is required to be given under this Note, unless otherwise provided herein, such notice shall be given in accordance with
Section 9(f) of the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all actions
taken pursuant to this Note, including in reasonable detail a description of such action and the reason therefore. Without limiting
the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon any adjustment of the
Conversion Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at least twenty
days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution
upon the Common Stock, (B) with respect to any pro rata subscription offer to holders of Common Stock or (C) for determining rights
to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall
be made known to the public prior to or in conjunction with such notice being provided to the Holder.

 

(b) Payments. Whenever
any payment of cash is to be made by the Company to any Person pursuant to this Note, such payment shall be made in lawful money
of the United States of America by a check drawn on the account of the Company and sent via overnight courier service to such Person
at such address as previously provided to the Company in writing (which address, in the case of each of the holders of the Notes,
shall initially be as set forth on the Schedule of Buyers attached to the Securities Purchase Agreement); provided that
the Holder may elect to receive a payment of cash via wire transfer of immediately available funds by providing the Company with
prior written notice setting out such request and the Holder’s wire transfer instructions. Whenever any amount expressed
to be due by the terms of this Note is due on any day which is not a Business Day, the same shall instead be due on the next succeeding
day which is a Business Day and, in the case of any Interest Date which is not the date on which this Note is paid in full, the
extension of the due date thereof shall not be taken into account for purposes of determining the amount of Interest due on such
date. Any amount of Principal or other amounts due under the Transaction Documents, other than Interest, which is not paid when
due shall result in a late charge being incurred and payable by the Company in an amount equal to interest on such amount at the
rate of fifteen percent (15%) per annum, or the maximum rate permissible by law, which is less, from the date such amount was due
until the same is paid in full (“Late Charge”).

 

23. CANCELLATION.
After all Principal, accrued Interest and other amounts at any time owed on this Note have been paid in full, this Note shall automatically
be deemed canceled, shall be surrendered to the Company for cancellation and shall not be reissued.

 

24. WAIVER OF NOTICE.
To the extent permitted by law, the Company hereby waives demand, notice, protest and all other demands and notices in connection
with the delivery, acceptance, performance, default or enforcement of this Note and the Securities Purchase Agreement.

 

    	 	- 12 -	 

     

    

 

25. GOVERNING LAW.
This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation
and performance of this Note 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. The Company 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. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner
permitted by law. In the event that any provision of this Note is invalid or unenforceable under any applicable statute or rule
of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified
to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not
affect the validity or enforceability of any other provision of this Note. Nothing contained herein shall be deemed or operate
to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect
on the Company’s obligations to the Holder, to realize on any collateral or any other security for such obligations, or to
enforce a judgment or other court ruling in favor of the Holder. THE COMPANY 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
NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

26. CERTAIN DEFINITIONS.
For purposes of this Note, the following terms shall have the following meanings:

 

(a) “Bloomberg”
means Bloomberg Financial Markets.

 

(b) “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) “Capital Lease”
as applied to any Person shall mean any lease (or similar arrangement) of any property (whether real, personal or mixed) by that
Person as lessee which, in conformity with GAAP, is accounted for as a capital lease on the balance sheet of that Person.”

 

(d) “Capital Lease
Obligations” shall mean all monetary obligations of any of Company and its Subsidiaries under any Capital Leases.”

 

(e) “Change of
Control” means any Fundamental Transaction other than (i) any reorganization, recapitalization or reclassification of
the Common Stock in which holders of the Company’s voting power immediately prior to such reorganization, recapitalization
or reclassification continue after such reorganization, recapitalization or reclassification to hold publicly traded securities
and, directly or indirectly, the voting power of the surviving entity or entities necessary to elect a majority of the members
of the board of directors (or their equivalent if other than a corporation) of such entity or entities, or (ii) pursuant to a migratory
merger effected solely for the purpose of changing the jurisdiction of incorporation of the Company.

 

(f) “Closing Date”
shall have the meaning set forth in the Securities Purchase Agreement which corresponds to the date this Note and or the Other
Notes, as applicable, were initially issued pursuant to the terms of the Securities Purchase Agreement.

 

(g) “Common Stock”
means shares of the Company’s common stock, $0.001 par value per share.

 

(h) “Contingent
Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect
to any indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring
such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will
be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will
be protected (in whole or in part) against loss with respect thereto.

 

    	 	- 13 -	 

     

    

 

(i) “Convertible
Securities” means any stock or securities (other than Options) directly or indirectly convertible into or exercisable
or exchangeable for Common Stock.

 

(j) “Conversion
Shares” means, shares of Common Stock issuable upon conversion of this Note.

 

(k) “Debt”
of any Person shall mean, without duplication:

 

(i)          all
indebtedness for borrowed money;

 

(ii)         all
obligations issued, undertaken or assumed as the deferred purchase price of property or services, including earnouts (other than
trade payables entered into in the ordinary course of business);

 

(iii)        the
face amount of all letters of credit issued for the account of such Person and without duplication, all drafts drawn thereunder
and all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments issued
by such Person;

 

(iv)        all
obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection
with the acquisition of property, assets or businesses;

 

(v)         all
indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either
case with respect to property acquired by the Person (even though the rights and remedies of the seller or bank under such agreement
in the event of default are limited to repossession or sale of such property);

 

(vi)        all
Capital Lease Obligations;

 

(vii)       the
principal balance outstanding under any synthetic lease, off-balance sheet loan or similar off balance sheet financing product;

 

(viii)      all
indebtedness referred to in clauses (i) through (viii) above secured by (or for which the holder of such indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien upon or in property (including accounts and contracts rights) owned
by such Person, even though such Person has not assumed or become liable for the payment of such indebtedness; and

 

(ix)         all
guarantees in respect of indebtedness or obligations of others of the kinds referred to in clauses (i) through (viii) above.

 

(l) “Eligible
Market” means the Principal Market, The New York Stock Exchange, Inc., the NYSE Amex, The Nasdaq Global Select Market,
The Nasdaq Global Market, The Nasdaq Capital Market, any OTC Markets Group Inc. over-the-counter market or any market that is a
successor to any of the foregoing.

 

    	 	- 14 -	 

     

    

 

(m) “Fundamental
Transaction” means that the Company shall, directly or indirectly, in one or more related transactions, (i) consolidate
or merge with or into (whether or not the Company is the surviving corporation) another Person or Persons, or (ii) sell, assign,
transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company to another Person,
or (iii) allow another Person (other than the Holder) to make a purchase, tender or exchange offer that is accepted by the holders
of more than 50% of the outstanding shares of Voting Stock (not including any shares of Voting Stock held by the Person or Persons
making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer),
or (iv) consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than the 50% of the outstanding
shares of Voting Stock (not including any shares of Voting Stock held by the other Person or other Persons making or party to,
or associated or affiliated with the other Persons making or party to, such stock purchase agreement or other business combination),
or (v) reorganize, recapitalize or reclassify its Common Stock or (vi) any “person” or “group” (as these
terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate Voting Stock of the Company.

 

(n) “GAAP”
means United States generally accepted accounting principles, consistently applied.

 

(o) “Interest
Rate” means, 6.00% per annum, subject to adjustment as set forth in Section 2(b) hereof.

 

(p) “Investment”
of any Person shall mean any investment made by such Person in any other Person by stock purchase, capital contribution, loan,
advance, acquisition of indebtedness, guarantee or otherwise.”

 

(q) “Lien”
shall mean any mortgage, deed of trust, pledge, hypothecation, assignment, charge or deposit arrangement, encumbrance, lien (statutory
or otherwise), or preference, priority or other security interest or preferential arrangement of any kind or nature whatsoever,
chattel mortgage or other charge or encumbrance of any kind, including, without limitation, the lien or retained security title
of a conditional vendor and any easement, right of way or other encumbrance on title to real property and any lease having substantially
the same effect as any of the foregoing.”

 

(r) “Options”
means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

(s) “Parent Entity”
of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock or equivalent equity
security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent
Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

(t) “Permitted
Indebtedness” shall mean:

 

(i)          Debt
evidenced by the Notes and Other Notes;

 

(ii)         Debt
outstanding on the Issuance Date and as set forth on Schedule I hereto;

 

(iii)        Debt
secured by the Security Documents;

 

(iv)        all
Capital Lease Obligations;

 

    	 	- 15 -	 

     

    

 

(v)         Debt
consisting of unsecured intercompany loans and advances made by the Company and any Subsidiary to any other such Person;

 

(vi)        other
unsecured Debt not exceeding $500,000 in the aggregate at any time outstanding, provided that both at the time of and immediately
after giving effect to the incurrence thereof and the retirement of any Debt which is currently being retired, no Event of Default
exists or occurs;

 

(vii)       Debt
of a target existing at the time the target becomes a Subsidiary of the Company (or is merged into or consolidated with the Company
or Subsidiary of the Company in accordance with the terms hereof) pursuant to an acquisition or Debt assumed by Company or its
Subsidiaries in respect of assets acquired by such Person pursuant to an acquisition; and

 

(viii)      Debt
of LineaRX, Inc. outstanding on the Issuance Date and as set forth on Schedule II hereto.

 

(u) “Permitted
Investment” shall mean any of the following Investments:

 

(i)          Investments
in cash and cash equivalents;

 

(ii)         loans
and advances to employees in the ordinary course of business not to exceed $250,000 in the aggregate at any time outstanding;

 

(iii)        Investments
received as the non-cash portion of consideration;

 

(iv)        Investments
acquired in connection with the settlement of delinquent accounts in the ordinary course of business or in connection with the
bankruptcy or reorganization of suppliers or customers;

 

(v)         Investments
existing on the Issuance Date and as set forth on Schedule III hereto; and

 

(vi)        Investments
consisting of contributions in or to any joint ventures of LineaRX, Inc. entered into after the Closing Date.

 

(v) “Permitted
Liens” shall mean:

 

(i)          any
Lien securing Permitted Indebtedness and any Lien existing on the Issuance Date (or any Lien securing any refinancing, extension,
renewal or refunding permitted hereunder of the obligations secured thereby);

 

(ii)         any
Lien securing the Notes;

 

(iii)        Liens
for taxes, fees, assessments or other governmental charges which are not past due or remain payable without penalty;

 

    	 	- 16 -	 

     

    

 

(iv)        carriers’,
warehousemen’s, mechanics’, landlords’, materialmen’s, repairmen’s or other similar Liens arising
in the ordinary course of business which are not delinquent for more than ninety (90) days or remain payable without penalty or
which are being contested in good faith and by appropriate proceedings diligently prosecuted, which proceedings have the effect
of preventing the forfeiture or sale of the property subject thereto and for which adequate reserves in accordance with GAAP are
being maintained;

 

(v)         Liens
(other than any Lien imposed by ERISA) consisting of pledges or deposits required in the ordinary course of business in connection
with workers’ compensation, unemployment insurance and other social security legislation or to secure the performance of
tenders, statutory obligations, surety, stay, customs and appeals bonds, bids, leases, governmental contract, trade contracts,
performance and return of money bonds and other similar obligations (exclusive of obligations for the payment of borrowed money)
or to secure liability to insurance carriers;

 

(vi)        Liens
consisting of judgment or judicial attachment liens (other than for payment of taxes, assessments or other governmental charges),
provided that the enforcement of such Liens is effectively stayed and all such Liens secure claims in the aggregate at any time
outstanding for Company and its Subsidiaries not exceeding $100,000;

 

(vii)       easements,
rights of way, zoning and other restrictions, minor defects or other irregularities in title, and other similar defects and encumbrances
which, either individually or in the aggregate, do not in any case materially detract from the value of the property subject thereto
or interfere in any material respect with the ordinary conduct of the businesses of any of Borrower and its Subsidiaries;

 

(viii)      Liens
securing Capital Lease Obligations; provided that (i) any such Lien attaches solely to the property subject to the related Capital
Lease and the proceeds thereof, and (ii) the principal amount of the Capital Lease Obligation secured thereby does not exceed 100%
of the cost of such property;

 

(ix)         any
interest or title of a lessor or sublessor under any lease permitted by this Note and matters affecting the interest or title of
a lessor or sublessor to any leased property under any lease permitted hereunder;

 

(x)          Liens
arising from precautionary uniform commercial code financing statements filed under any lease permitted by this Note;

 

(xi)         Non-exclusive
licenses and non-exclusive sublicenses granted by any of Company and its Subsidiaries and leases and subleases (by any of Company
and its Subsidiaries as lessor or sublessor) to third parties in the ordinary course of business not interfering in any material
respect with the business of any of Company and its Subsidiaries;

 

    	 	- 17 -	 

     

    

 

(xii)        Liens
(including the right of set-off) in favor of a bank or other depository institution arising as a matter of law encumbering deposits;

 

(xiii)       Liens
arising out of consignment or similar arrangements for the sale of goods entered into by any of Company and its Subsidiaries in
the ordinary course of business; and

 

(xiv)      Liens
in favor of customs and revenue authorities arising as a matter of law which secure payment of customs duties in connection with
the importation of goods in the ordinary course of business.

 

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

 

(x) “Principal
Market” means the NASDAQ Capital Market.

 

(y) “Required
Holders” collectively, the holders of this Note and the Other Notes representing at least 70% of the aggregate principal
amount of the Company’s Notes then outstanding.

 

(z) “SEC”
means the United States Securities and Exchange Commission.

 

(aa) “Securities
Purchase Agreement” means, as applicable, either (i) that certain securities purchase agreement dated as of the Subscription
Date by and among the Company and the initial holders of the Notes pursuant to which the Company issued this Note or (ii) those
certain securities purchase agreements dated as of August 31, 2018 and November 29, 2018, each by and among the Company and the
purchasers of the Other Notes.

 

(bb) “Subscription
Date” means July 16, 2019.

 

(cc) “Successor
Entity” means the Person, which may be the Company, formed by, resulting from or surviving any Fundamental Transaction
or the Person with which such Fundamental Transaction shall have been made, provided that if such Person is not a publicly
traded entity whose common stock or equivalent equity security is quoted or listed for trading on an Eligible Market, Successor
Entity shall mean such Person’s Parent Entity.

 

(dd) “Trading
Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common
Stock is then traded; provided that “Trading Day” shall not include any day on which the Common Stock is scheduled
to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the
final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time
of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York Time).

 

    	 	- 18 -	 

     

    

 

(ee) “Voting Stock”
of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof have the general voting
power to elect, or the general power to appoint, at least a majority of the board of directors, managers or trustees of such Person
(irrespective of whether or not at the time capital stock of any other class or classes shall have or might have voting power by
reason of the happening of any contingency).

 

27. DISCLOSURE. Upon
receipt or delivery by the Company of any notice in accordance with the terms of this Note, unless the Company has in good faith
determined that the matters relating to such notice do not constitute material, nonpublic information relating to the Company or
its Subsidiaries, the Company shall within four Business Days after any such receipt or delivery publicly disclose such material,
nonpublic information on a Current Report on Form 8-K or otherwise. In the event that the Company believes that a notice contains
material, nonpublic information relating to the Company or its Subsidiaries, the Company so shall indicate to such Holder contemporaneously
with delivery of such notice, and in the absence of any such indication, the Holder shall be allowed to presume that all matters
relating to such notice do not constitute material, nonpublic information relating to the Company or its Subsidiaries.

 

[Signature Page Follows]

 

    	 	- 19 -	 

     

    

 

IN WITNESS WHEREOF, the Company
has caused this Note to be duly executed as of the Issuance Date set out above.

 

	 	APPLIED DNA SCIENCES, INC.

 

	 	By:	 
	 	 	Name:   
	 	 	Title:   

 

[Signature Page to Secured Convertible Note]

 

     

     

    

 

Schedule I

 

None

 

     

     

    

 

Schedule II

 

None

 

     

     

    

 

Schedule III

 

None

 

     

     

    

 

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)

 

     

     

    

 

ACKNOWLEDGMENT

 

The Company hereby acknowledges
this Conversion Notice and hereby directs American Stock Transfer & Trust Company to issue the above indicated number of shares
of Common Stock in accordance with the Transfer Agent Instructions dated [●], 2019 from the Company and acknowledged and
agreed to by American Stock Transfer & Trust Company.

 

	 	APPLIED DNA SCIENCES, INC

 

	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

EXHIBIT
II

 

APPLIED
DNA SCIENCES, INC.

Form of Warrant

 

     

     

    

 

Applied DNA Sciences, Inc.

Warrant To Purchase Common Stock

 

NEITHER THIS SECURITY NOR THE SECURITIES FOR
WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

COMMON STOCK
PURCHASE WARRANT

APPLIED DNA SCIENCES, INC.

 

	Warrant Shares:	Issuance Date: [___], 2019

 

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”)
certifies that, for value received, [___] or its assigns (the “Holder”) is entitled, upon the terms and subject
to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date hereof (the “Initial
Exercise Date”) and on or prior to the close of business on the five (5) year anniversary of the Initial Exercise Date
(the “Termination Date”, provided, however that if such date is not a Trading Day, the Termination Date shall
be the immediately following Trading Day) but not thereafter, to subscribe for and purchase from Applied DNA Sciences, Inc., a
Delaware corporation (the “Company”), up to [___] shares of Common Stock, par value $0.001 per share (the “Common
Stock”) (as subject to adjustment hereunder, the “Warrant Shares”). The purchase price of one share
of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 1(b).

 

     

     

    

 

Section 1.            Exercise.

 

(a)          Exercise
of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as
it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company)
of a duly executed facsimile or email copy of the Notice of Exercise Form annexed hereto. Within one (1) day on which the Common
Stock is traded on a Trading Market (“Trading Day”) following the date of exercise as aforesaid, the Holder
shall deliver the aggregate Exercise Price for the Warrant Shares specified in the applicable Notice of Exercise by wire transfer
or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in Section 1(c) below is
specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee
(or other type of guarantee or notarization) of any Notice of Exercise form be required. Notwithstanding anything herein to the
contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all
of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender
this Warrant to the Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered
to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available
hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to
the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant
Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise Form within
one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree
that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number
of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof. “Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market,
the New York Stock Exchange, or any OTC Markets Group Inc. over-the-counter market (or any successors to any of the foregoing).

 

(b)          Exercise
Price. The exercise price per share of the Common Stock under this Warrant shall be $[•], subject to adjustment hereunder
(the “Exercise Price”).

 

(c)          Cashless
Exercise. If at any time after the Initial Exercise Date, and if and only if there is no effective Registration Statement registering,
or no current prospectus available for, the resale of the Warrant Shares by the Holder, then this Warrant may be exercised, in
whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a
number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A)         =
the last VWAP for a full Trading Day immediately preceding the time that the Holder elects to exercise this Warrant by means of
a “cashless exercise,” as set forth in the applicable Notice of Exercise;

 

(B)         =
the Exercise Price of this Warrant, as adjusted hereunder; and

 

(X) = the number of Warrant Shares that would be issuable
upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather
than a cashless exercise.

 

    	 	- 2 -	 

     

    

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading
Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the OTC Bulletin Board is not a Trading Market,
the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board,
(c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are
then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding
to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other
cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the
Holders of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses
of which shall be paid by the Company.

 

(d)          Mechanics
of Exercise.

 

(i)          Delivery
of Warrant Shares Upon Exercise. Warrant Shares purchased hereunder shall be transmitted by the Transfer Agent to the Holder
(A) by crediting the account of the Holder’s broker with The Depository Trust Company through its Deposit or Withdrawal at
Custodian system (“DWAC”) if the Company is then a participant in such system and (I) there is an effective
registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by Holder or (II) the Warrant
Shares are eligible for resale by the Holder without volume or manner-of-sale limitations pursuant to Rule 144, and otherwise (B)
by physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is two (2) Trading Days
after the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”),
provided that, within one (1) Trading Day following the delivery of a Notice of Exercise, the Holder shall pay the Company the
aggregate Exercise Price as set forth above (including by cashless exercise, if permitted). The Warrant Shares shall be deemed
to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of
record of such shares for all purposes, as of the time of delivery to the Company of the Notice of Exercise, so long as the payment
to the Company of the Exercise Price (or by cashless exercise, if permitted) pursuant to Section 1(a) or Section 1(c), as the case
may be, and all taxes required to be paid by the Holder, if any, pursuant to Section 1(d)(iv) is made prior to the issuance of
such shares.

 

(ii)         Delivery
of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder
and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant
evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall
in all other respects be identical with this Warrant.

 

(iii)        Rescission
Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 1(d)(iii)
by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

    	 	- 3 -	 

     

    

 

(iv)        No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the
Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole share.

 

(v)         Charges,
Taxes and Expenses. Issuance of the Warrant Shares shall be made without charge to the Holder for any issue or transfer tax
or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by
the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the
Holder; provided, however, that in the event Warrant Shares are to be issued in a name other than the name of the Holder, this
Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and
the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental
thereto.

 

(vi)        Closing
of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this
Warrant, pursuant to the terms hereof.

 

(e)          Holder’s
Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise
any portion of this Warrant, pursuant to Section 1 or otherwise, to the extent that after giving effect to such issuance after
exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other
Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution
Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes
of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution
Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination
is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining,
nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii)
exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation,
any other Common Stock Equivalents (as defined below)) subject to a limitation on conversion or exercise analogous to the limitation
contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties.  Except as set forth in
the preceding sentence, for purposes of this Section 1(e), beneficial ownership shall be calculated in accordance with Section
13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company
is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder
is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained
in this Section 1(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by
the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in
the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination
of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution
Parties) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and
the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to
any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and
regulations promulgated thereunder. For purposes of this Section 1(e), in determining the number of outstanding shares of Common
Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent
periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or
(C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.
Upon the written or oral request of a Holder, the Company shall within one Trading Day confirm orally and in writing to the Holder
the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined
after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates
or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial
Ownership Limitation” shall be 9.99% of the number of shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The provisions of this paragraph shall
be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 1(e) to correct this
paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein
contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations
contained in this paragraph shall apply to a successor holder of this Warrant.

 

    	 	- 4 -	 

     

    

 

Section 2.            Certain
Adjustments.

 

(a)          Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable
in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon
exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including
by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification
of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding
immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately
after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 2(a) shall become
effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

    	 	- 5 -	 

     

    

 

(b)          Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 2(a) above, if at any time the Company grants, issues
or sells any securities of the Company which would entitle the holder thereof to acquire at any time shares of Common Stock, including,
without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into
or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock (“Common Stock Equivalents”)
or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common
Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such
Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares
of Common Stock acquirable upon complete exercise of this Warrant immediately before the date on which a record is taken for the
grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares
of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

 

(c)          Pro
Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other
distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital
or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of
a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction), other than
the dividends or other distributions pursuant to Section 2(a) above (a “Distribution”), at any time after the
issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same
extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon
complete exercise of this Warrant immediately before the date of which a record is taken for such Distribution, or, if no such
record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in
such Distribution.

 

(d)          Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person as a result of which transaction, the
stockholders of the Company as of a time immediately prior to such transaction no longer hold at least 50% of the voting securities
of the surviving entity, (ii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or
another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for
other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, or (iii)
the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization
of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged
for other securities, cash or property (each a “Fundamental Transaction”), then, upon any subsequent exercise
of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise
immediately prior to the occurrence of such Fundamental Transaction, the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to such Fundamental Transaction. For purposes of any such exercise, the determination of the Exercise
Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable
in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among
the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.
If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction,
then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant
following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the
Company is not the survivor (the “Successor Entity”) to assume all of the obligations of the Company under this
Warrant. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for
(so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents
referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of
the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with
the same effect as if such Successor Entity had been named as the Company herein.

 

    	 	- 6 -	 

     

    

 

(e)          Calculations.
All calculations under this Section 2 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 2, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall
be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

(f)          Notice
to Holder.

 

(i)          Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 2, the Company shall promptly
deliver to the Holder a notice by facsimile or email setting forth the Exercise Price after such adjustment and any resulting adjustment
to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

(ii)         Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the
Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares
of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer
of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted
into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation
or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered to the Holder by facsimile
or email at its last contact as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the
applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the
purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which
the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to
be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected
to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled
to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation,
merger, sale, transfer or share exchange; provided that the failure to deliver such notice or any defect therein or in the delivery
thereof shall not affect the validity of the corporate action required to be specified in such notice.

 

    	 	- 7 -	 

     

    

 

Section 3.            Transfer
of Warrant.

 

(a)          Transferability.
Subject to compliance with any applicable securities laws and blue sky laws and the conditions set forth in Section 3(d) hereof
and to the provisions of Section 2(f) of the Purchase Agreement, this Warrant and all rights hereunder (including, without limitation,
any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company
or its designated agent, properly endorsed with signatures properly guaranteed by an eligible guarantor institution and accompanied
by appropriate instructions for transfer, together with a written assignment of this Warrant substantially in the form attached
hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making
of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants
in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument
of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant
shall promptly be cancelled. Notwithstanding anything herein to the contrary (other than as set forth in Section 1(a) hereof),
the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant
in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date the Holder
delivers an assignment form to the Company assigning this Warrant full. The Warrant, if properly assigned in accordance herewith,
may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

(b)          New
Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the
Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by
the Holder or its agent or attorney. Subject to compliance with Section 3(a), as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants
to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial
issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant
thereto.

 

(c)          Warrant
Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered
Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and
for all other purposes, absent actual notice to the contrary.

 

    	 	- 8 -	 

     

    

 

(d)          Transfer
Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer
of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities Act and
under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions or
current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer,
that the Holder or transferee of this Warrant, as the case may be, comply with the provisions of Section 9(g) of the Purchase Agreement.

 

(e)          Representation
by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any
exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for
distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities
law, except pursuant to sales registered or exempted under the Securities Act.

 

Section 4.            Miscellaneous.

 

(a)          No
Rights as Stockholder Until Exercise. Without prejudice to the rights of the Holder in respect of rights offerings, distributions
and dividends as set forth in Section 2(b) and Section 2(c) above, this Warrant does not entitle the Holder to any voting rights,
dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 1(d)(iii).

 

(b)          Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares and an agreement, in a form reasonably satisfactory by the Company, by the Holder of this Warrant or such Warrant Shares
to indemnify the Company with respect to the issuance of such replacement certificate or instrument, and in case of loss, theft
or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the
posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will
make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or
stock certificate.

 

(c)          Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or
granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding
Business Day.

 

(d)          Authorized
Shares.

 

The Company covenants that,
during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number
of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company
further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty
of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the
purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant
Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading
Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise
of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment
for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from
all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer
occurring contemporaneously with such issue).

 

    	 	- 9 -	 

     

    

 

Except and to the extent
as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate
of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities
or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will
at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary
or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality
of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon
such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in
order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant
and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory
body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

Before taking any action
which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price,
the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public
regulatory body or bodies having jurisdiction thereof.

 

(e)          Jurisdiction;
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Warrant and the
governing law shall be determined in accordance with the provisions of the Purchase Agreement.

 

(f)          Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does
not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

 

(g)          Nonwaiver.
No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of
such right or otherwise prejudice the Holder’s rights, powers or remedies.

 

(h)          Notices.
Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered
in accordance with the notice provisions of the Purchase Agreement.

 

(i)          Limitation
of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase
Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder
for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company
or by creditors of the Company.

 

    	 	- 10 -	 

     

    

 

(j)          Remedies.
The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled
to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be adequate.

 

(k)          Successors
and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure
to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns
of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and
shall be enforceable by the Holder or holder of Warrant Shares.

 

(l)          Amendment.
This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

(m)          Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions
of this Warrant.

 

(n)          Headings.
The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of
this Warrant.

 

********************

 

(Signature Page Follows)

 

    	 	- 11 -	 

     

    

 

IN WITNESS WHEREOF, the
Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

	APPLIED DNA SCIENCES, INC.	 

 

	By:	 	 
	Name:	 
	Title:	 

 

     

     

    

 

NOTICE OF EXERCISE

 

TO: APPLIED DNA SCIENCES, INC.

 

(1)         The
undersigned hereby elects to purchase Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised
in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

 

(2)         Payment
shall take the form of (check applicable box):

 

 ☐ In lawful money of the
United States; or

 

 ☐ [If permitted] the
cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 1(c),
to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise
procedure set forth in subsection 1(c).

 

(3)         Please
issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is
specified below:

 

________________________________

 

The Warrant Shares shall
be delivered to the following DWAC Account Number or by physical delivery of a certificate to:

 

________________________________

 

________________________________

 

________________________________

 

(4)         Accredited
Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act
of 1933, as amended.

 

[SIGNATURE OF HOLDER]

Name of Investing Entity:___________________________________________________________________________

Signature of Authorized Signatory of Investing Entity:_____________________________________________________

Name of Authorized Signatory:_______________________________________________________________________

Title of Authorized Signatory:________________________________________________________________________

Date:

 

     

     

    

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

FOR VALUE RECEIVED, [                        ]
all of or [                        ] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

____________________________________________________________________  whose
address is

 

Dated:________________ ,_________

 

Holder’s Signature: _________________________

 

Holder’s Address: __________________________EXHIBIT 10.2 

Execution Version

 

REGISTRATION
RIGHTS AGREEMENT

 

REGISTRATION RIGHTS AGREEMENT
(this “Agreement”), dated as of July 16, 2019, 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 July 16, 2019, 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 the 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. The Notes
will be one of an issue of senior secured convertible notes of the Company previously issued pursuant to those certain securities
purchase agreements dated August 31, 2018 and November 28, 2018, respectively, by and among the parties thereto (such other secured
convertible notes, the “Other Notes” and collectively with the Notes, the “Company 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.

 

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, 2019 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 Company Notes and
(ii) any share capital of the Company issued or issuable with respect to the Conversion Shares or the Company 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 70% 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.

 

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:

 

    	 	2	 

     

    

 

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.

 

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.

 

    	 	3	 

     

    

 

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.

 

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.

 

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.

 

    	 	4	 

     

    

 

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.

 

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.

 

    	 	5	 

     

    

 

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.

 

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.

 

    	 	6	 

     

    

 

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.

 

    	 	7	 

     

    

 

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:

 

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.

 

    	 	8	 

     

    

 

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. 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.

 

    	 	9	 

     

    

 

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.

 

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]

 

    	 	10	 

     

    

 

IN WITNESS WHEREOF,
the 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:	/s/ Beth Jantzen
	 	 	Name: Beth Jantzen
	 	 	Title: Chief Financial Officer

 

[Signature Page to Registration Rights Agreement]

 

     

     

    

 

IN WITNESS WHEREOF,
the 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.

 

	 	
        BUYER:

         
	 
	 	DILLION HILL CAPITAL, LLC	 
	 	 	 	 
	 	By:	/s/ Bruce Grossman 	 
	 	 	Name: Bruce Grossman	 
	 	 	Title: Chief Executive Officer	 

 

[Signature Page to Registration Rights Agreement]

 

     

     

    

 

SCHEDULE
OF BUYERS

 

	Buyer	 	Buyer’s Address and

Facsimile Number	 	
        Buyer’s

        Representative’s

        Address

        and Facsimile Number

	 	 	 	 	 
	Dillion Hill Capital, LLC	 	
        200 Business Park Drive 

        Suite 306

        Armonk, NY 10504

        (914) 219-5721
	 	
        Robert Charron

        Ellenoff Grossman & Schole LLP

        1345 Avenue of the Americas

        New York, NY 10105

        (212) 401-4741

 

     

     

    

 

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 [●], 2019 (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.

 

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 [●], 2019, 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]	 	 

 

     

     

    

 

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 ________, 2019, 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.

 

     

     

    

 

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;
	 	·	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.

 

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.

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