Document:

ex10-10.htm

Exhibit 10.10

 

PATENT SECURITY AGREEMENT

 

PATENT SECURITY AGREEMENT (the “Agreement”) made as of this 15th day of July 2010 by APDN (B.V.I.) INC., a corporation organized under the laws of the British Virgin Islands and successor in interest by merger to RIXFLEX HOLDINGS LIMITED, a corporation organized under the laws of the British Virgin Islands (“Grantor”), in favor of ETICO CAPITAL, LLC, as Agent (“Grantee”).

 

W I T N E S S E T H

 

WHEREAS, Grantor and Grantee are parties to a certain Security Agreement of even date herewith between Grantor and Grantee (as the same may be amended or otherwise modified from time to time, the “Security Agreement”), pursuant to which Grantor has granted to Grantee, as agent for the Buyers (as defined in the Security Agreement), a security interest in substantially all of the assets of Grantor including all right, title and interest of Grantor in, to and under all now owned and hereafter acquired Patents (as defined in the Security Agreement), and all products and proceeds thereof, to secure the payment of the Obligations (as defined in the Security Agreement).

 

NOW, THEREFORE, for other good and valuable consideration, receipt and sufficiency of which are hereby acknowledged, Grantor agrees as follows:

 

1.   Incorporation of Security Agreement.  The Security Agreement and the terms and provisions thereof are hereby incorporated herein in their entirety by this reference thereto. All terms capitalized but not otherwise defined herein shall have the same meanings herein as in the Security Agreement.

 

2.   Grant and Reaffirmation of Grant of Security Interests.  To secure the payment and performance of the Obligations, Grantor hereby grants to Grantee, for its benefit and the benefit of the Buyers, and hereby reaffirms its prior grant pursuant to the Security Agreement of, a continuing security interest in Grantor’s entire right, title and interest in and to the following (all of the following items or types of property being herein collectively referred to as the “Patent Collateral”), whether now owned or existing and hereafter created, acquired or arising: (i) each Patent and application for Patent listed on Schedule 1 annexed hereto, together with any reissues, continuations or extensions thereof; and (ii) all products and proceeds of the foregoing, including, without limitation, any claim by Grantor against third parties for past, present or future infringement of any Patent.

 

  

  

  

        

SIGNATURE PAGE TO PATENT SECURITY AGREEMENT

 

IN WITNESS WHEREOF, Grantor has duly executed this Agreement as of the date first written above.

	 	 	 
	 	 	 
	 	APDN (B.V.I.) INC., successor in interest by merger

    to Rixflex Holdings Limited	 
	 	 	 	 
	 	By:	/s/ Dr. James A. Hayward	 
	 	Name:  Dr. James A. Hayward	 
	 	Title:  President and Chief Executive Officer	 
	 	 	 	 
	 	Accepted and Agreed as of the date first above written:
	 	 
	 	ETICO CAPITAL, LLC, as Collateral Agent
	 	 	 	 
	 	By:	/s/ Scott A. Weisman	 
	 	Name: Scott A. Weisman	 
	 	Title:  Managing Director	 

 

  

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SCHEDULE 1

 

PATENT APPLICATIONS

 

	

Patent Application Description

	 	

U.S. Patent Application No.

	 	
Date Published

	 	 	 	 	 
	
Method for Mixing Nucleic Acid in Water Insoluble Media and Application Thereof

	 	

10/645,602

	 	

3/25/04

	 	 	 	 	 
	
Novel Nucleic Acid Based Stganography System and Application Thereof

	 	
10/909,431

	 	
3/17/05

 

 

3ex10-11.htm

Exhibit 10.11

 

SECURITY AGREEMENT

 

THIS SECURITY AGREEMENT (this “Agreement”) is made and entered into as of July 15, 2010 by APDN (B.V.I.) INC., a company organized under the laws of the British Virgin Islands (the “Debtor”) for the benefit of the individuals or entities listed on Schedule I hereto (the “Lenders”).

 

RECITALS:

 

A.           Applied DNA Sciences, Inc., a Delaware corporation (“Parent”), is indebted to the Lenders as evidenced by certain secured convertible promissory notes issued to the Lenders on January 29, 2009, February 27, 2009, March 30, 2009, June 22, 2009, June 30, 2009, August 21, 2009, September 30, 2009, October 14, 2009, January 7, 2010 and June 4, 2010 (the “Promissory Notes”).

 

B.            In order to secure its obligations under the Promissory Notes, the Parent has granted a security interest in all of the assets of the Parent to the Lenders.

 

C.            The Parent agreed that, in connection with the issuance of any debt in addition to the Promissory Notes, the Parent would grant a pari passu security interest to the Lenders in any collateral provided as security for such additional debt.

 

D.            In order to secure the obligations of the Parent under the Promissory Notes, the Debtor, a wholly-owned subsidiary of the Parent, agreed to grant to the Lenders a security interest in the Collateral (as hereinafter defined).

 

NOW, THEREFORE, for and in consideration of the recitals made above and other good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the Debtor agrees as follows:

 

1.             Definitions

 

1.1           All terms used in this Agreement and the recitals hereto which are defined in Articles 8 or 9 of the Uniform Commercial Code as in effect from time to time in the State of New York (the “Code”), and which are not otherwise defined herein shall have the same meanings herein as set forth therein.

1.2           As used in this Agreement, the following terms shall have the respective meanings indicated below, such meanings to be applicable equally to both the singular and plural forms of such terms:

“Copyright Licenses” means all licenses, contracts or other agreements, whether written or oral, naming the Debtor as licensee or licensor and providing for the grant of any right to use or sell any works covered by any copyright (including, without limitation, all Copyright Licenses set forth in Schedule II hereto).

 

  

  

  

 

“Copyrights” means all domestic and foreign copyrights, whether registered or not, including, without limitation, all copyright rights throughout the universe (whether now or hereafter arising) in any and all media (whether now or hereafter developed), in and to all original works of authorship fixed in any tangible medium of expression, acquired or used by the Debtor (including, without limitation, all copyrights described in Schedule II hereto), all applications, registrations and recordings thereof (including, without limitation, applications, registrations and recordings in the United States Copyright Office or in any similar office or agency of the United States or any other country or any political subdivision thereof), and all reissues, divisions, continuations, continuations in part and extensions or renewals thereof.

“Intellectual Property” means the Copyrights, Trademarks and Patents.

“Licenses” means the Copyright Licenses, the Trademark Licenses and the Patent Licenses.

“Lien” means any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or assets (including accounts and contract rights).

“Patent Licenses” means all licenses, contracts or other agreements, whether written or oral, naming the Debtor as licensee or licensor and providing for the grant of any right to manufacture, use or sell any invention covered by any Patent (including, without limitation, all Patent Licenses set forth in Schedule II hereto).

“Patents” means all domestic and foreign letters patent, design patents, utility patents, industrial designs, inventions, trade secrets, ideas, concepts, methods, techniques, processes, proprietary information, technology, know-how, formulae, rights of publicity and other general intangibles of like nature, now existing or hereafter acquired (including, without limitation, all domestic and foreign letters patent, design patents, utility patents, industrial designs, inventions, trade secrets, ideas, concepts, methods, techniques, processes, proprietary information, technology, know-how and formulae described in Schedule II hereto), all applications, registrations and recordings thereof (including, without limitation, applications, registrations and recordings in the United States Patent and Trademark Office, or in any similar office or agency of the United States or any other country or any political subdivision thereof), and all reissues, divisions, continuations, continuations in part and extensions or renewals thereof.

“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.

“Trademark Licenses” means all licenses, contracts or other agreements, whether written or oral, naming the Debtor as licensor or licensee and providing for the grant of any right concerning any Trademark, together with any goodwill connected with and symbolized by any such trademark licenses, contracts or agreements and the right to prepare for sale or lease and sell or lease any and all Inventory now or hereafter owned by the Debtor and now or hereafter covered by such licenses (including, without limitation, all Trademark Licenses described in Schedule II hereto).

 

  

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“Trademarks” means all domestic and foreign trademarks, service marks, collective marks, certification marks, trade names, business names, d/b/a’s, Internet domain names, trade styles, designs, logos and other source or business identifiers and all general intangibles of like nature, now or hereafter owned, adopted, acquired or used by the Debtor (including, without limitation, all domestic and foreign trademarks, service marks, collective marks, certification marks, trade names, business names, d/b/a’s, Internet domain names, trade styles, designs, logos and other source or business identifiers described in Schedule II hereto), all applications, registrations and recordings thereof (including, without limitation, applications, registrations and recordings in the United States Patent and Trademark Office or in any similar office or agency of the United States, any state thereof or any other country or any political subdivision thereof), and all reissues, extensions or renewals thereof, together with all goodwill of the business symbolized by such marks and all customer lists, formulae and other Records of the Debtor relating to the distribution of products and services in connection with which any of such marks are used.

2.             Grant of Security Interest.  As security for the prompt payment and satisfaction all obligations of the Parent and Debtor at any time owing to the Lenders under the Promissory Notes, the Debtor hereby grants to the Lenders a continuing security interest in all of the personal property of the Debtor, wherever located and whether now or hereafter existing and whether now owned or hereafter acquired, of every kind and description, tangible or intangible (collectively, the “Collateral”), including, without limitation, the following:

 

	  	
a)

	
all Accounts;

	  	  	  
	  	
b)

	
all Chattel Paper (whether tangible or electronic);

	  	  	  
	  	
c)

	
the Commercial Tort Claims specified on Schedule III hereto;

	  	  	  
	  	
d)

	
all Deposit Accounts, all cash and other property from time to time deposited therein and the monies and property in the possession or under the control of the Lenders or any affiliate, representative, agent or correspondent of the Lenders;

	  	  	  
	  	
e)

	
all Documents;

	  	  	  
	  	
f)

	
all Equipment;

	  	  	  
	  	
g)

	
all Fixtures;

	  	  	  
	  	
h)

	
all General Intangibles (including, without limitation, all Payment Intangibles);

	  	  	  
	  	
i)

	
all Goods

 

  

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j)

	
all Instruments (including, without limitation, Promissory Notes and each certificated Security);

	  	  	  
	  	
k)

	
all Inventory;

	  	  	  
	  	
l)

	
all Investment Property;

	  	  	  
	  	
m)

	
all Copyrights, Patents and Trademarks, and all Licenses;

	  	  	  
	  	
n)

	
all Letter-of-Credit Rights;

	  	  	  
	  	
o)

	
all Supporting Obligations;

	  	  	  
	  	
p)

	
all other tangible and intangible personal property of the Debtor (whether or not subject to the Code), including, without limitation, all bank and other accounts and all cash and all investments therein, all proceeds, products, offspring, accessions, rents, profits, income, benefits, substitutions and replacements of and to any of the property of the Debtor described in the preceding clauses of this Section 2 (including, without limitation, any proceeds of insurance thereon and all causes of action, claims and warranties now or hereafter held by the Debtor in respect of any of the items listed above), and all books, correspondence, files and other Records, including, without limitation, all tapes, desks, cards, Software, data and computer programs in the possession or under the control of the Debtor or any other Person from time to time acting for the Debtor to the extent of the Debtor’s rights therein, that at any time evidence or contain information relating to any of the property described in the preceding clauses of this Section 2 or are otherwise necessary or helpful in the collection or realization thereof; and

	  	  	  
	  	
q)

	
all Proceeds, including all cash Proceeds and non-cash Proceeds, and products of any and all of the foregoing Collateral;

in each case howsoever the Debtor’s interest therein may arise or appear (whether by ownership, security interest, claim or otherwise).

 

3.            Termination of Security Interest.  Upon the automatic conversion (or earlier payment) of the Promissory Notes, all of the Debtor’s obligations will be discharged, including the termination of the Lenders’ security interest in the Collateral.

 

4.            Other Issuances of Debt.  The Parent and Debtor may issue debt in addition to the Promissory Notes (including the convertible promissory notes issued pursuant to the Securities Purchase Agreement, dated as of even date herewith, by and among the Parent and the investors listed on the Schedule of Buyers attached thereto) that may be secured by a security interest in the Collateral, which would be pari passu to the security interest granted to the Lenders.

 

 

*     *     *

  

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[Remainder of page intentionally left blank; signature page follows]

 

 

 

  

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IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Security Agreement as of the day and year first above written.

 

 

	  	APDN (B.V.I.) INC.	  
	 	 	 	 
	  	 	  	  
	  	

By:

	
 

	  
	  	Name:  Dr. James A. Hayward	  
	  	Title:  President and Chief Executive Officer	  

  

-6-

  

 

Schedule I

 

 

 

 

 

  

-7-

  

 

Schedule II

The following are owned by the Grantor:

 

	
PATENTS

	
Patents Issued

	
Patent Name

	
Patent No

	
Assignee of

Record

	
Date Issued

	
Jurisdiction

	
Nucleic Acid as Marker for

Product Anticounterfeiting

and Identification

	
(570982/196181)

89108443

	
APDN (B.V.I.) Inc.

	
1/11/2004 –

3/16/2020

3/17/2000

	
Taiwan

	
Method of using ribonucleic

acid as marker for product

anti-counterfeit labeling

	
CN1324955

00107580.2

	
APDN (B.V.I.) Inc.

	
2/2/2005

	
China

	
EppenLocker (A Leakage

Prevention Apparatus of

Microcentrifuge)

	
529633

203050

	
APDN Inc.

	
4/21/2003-

3/9/2012

3/10/2000

	
Taiwan

	
Multiple Tube Structure for

Multiple PCR in a Closed

Container

	
519130

205554

	
APDN Inc.

	
1/21/2003-

6/19/2012

6/20/2000

	
Taiwan

	
A Device for Multiple

Polymerase Chain Reactions

In  a Closed Container and a

Method of Using Thereof

	
231311

	
APDN  Inc.

	
4/21/2005-

6/12/2020

6/12/2000

	
Taiwan

	
A Method of marking solid or

liquid substances with nucleic

acid for anti-counterfeiting

and authentication

	
7115301

(10/748,412)

	
APDN (B.V.I.) Inc.

	
10/3/2006

	
United States

	
A novel nucleic acid based

steganography system and

applications thereof

	
MY 135976-A

	
APDN (B.V.I.) Inc.

	
7/31/2008

	
Malaysia

	  	
KR 20050025256

679484

(61387/2004)

	
APDN (B.V.I.) Inc.

	
3/14/2005

8/3/2005

	
Korea

	
Method for Mixing

Ribonucleic Acid in Water

Insoluble Media and

Application Thereof

	
JP2004159502

3930794

	
Rixflex Holding Limited*

	
6/10/2004

8/31/2002

	
Japan

	
Method for Mixing

Ribonucleic Acid in Water

Insoluble Media and

Application Thereof

	
EP1394544

	
APDN (B.V.I.) Inc.

	
3/3/2004

	
EU

	
Method of dissolving nucleic

acid in water insoluble

medium and its application

	
CN100349315C

03155949.2

	
APDN (B.V.I.) Inc.

	
11/7/2007

(8/27/2003)

	
China

	
A Nucleic Acid Based

Steganography System and

Application thereof

	
EP1568783

	
APDN (B.V.I.) Inc.

	
8/31/2005

	
EU

	
A Nucleic Acid Based

Steganography System and

Application Thereof

	
DE 602004007474.8

	
APDN (B.V.I.) Inc

	
4/24/2008

	
Germany

	
System and Method for

authenticating multiple

components associated with a

particular product

	
WO2006127558 A2

	
APDN

	
11/30/2006

	
EU

 

  

-8-

  

 

	
Patents Pending

	
Patent Name

	
Publication No

	
Filed in Name of

	
Date Published

	
Jurisdiction

	
Method for Mixing Nucleic

Acid in Water Insoluble

Media and Application

Thereof

	
20040058374

(10/645,602)

	
Rixflex Holdings Limited*

	
3/25/2004

	
United States

	
Novel nucleic acid based

steganography system and

application thereof

	
20050059059

(10/909,431)

	
Rixflex Holdings Limited*

	
3/17/2005

	
United States

	
Cryptic method of secret

information carried in DNA

molecule and it deencryption

method

	
200506064

(921221490)

	
APDN (B.V.I.) Inc.

	
8/6/2003

	
Taiwan

	
 A novel nucleic acid based

steganography system and

applications thereof

	
1-2004-00742

	
APDN (B.V.I.) Inc.

	
8/4/2004

	
Vietnam

	
A novel nucleic acid based

steganography system and

applications thereof

	
092819

	
APDN (B.V.I.)  Inc. pending

	
8/4/2004

	
Thailand

	
A Method for encrypting and

decrypting specific message

by using nucleic acid

molecules

	
JP2005055900

2004-225987

	
Rixflex Holdings Limited*

	
3/3/2005

	
Japan

	  	
P-00200400374

	
APDN (B.V.I.) Inc

	
8/4/2004

	
Indonesia

	
Methods and Systems for the

Generation of Plurality of

Security Markers and the

Detection Thereof

	
12/690,799

	
APDN (B.V.I.) Inc.

	
None

	
United States

	
Published Patent Applications

	
Patent Name

	
Patent Appl. No

	
Assignee of

Record

	
Publication Date

	
Jurisdiction

	
System and Method for

Marking Textiles with

Nucleic Acids

	
publication # 20050112610

(10/825,968)

	
APDN (B.V.I.) Inc.

	
5/26/2005

	
United States

	
System and Method for

Authenticating Multiple

Components Associated

with a Particular Good

	
20070048761

(11/437,265)

	
APDN (B.V.I.) Inc.

	
3/1/2007

	
United States

 

  

-9-

  

 

	
System and Method for

Secure Document Printing

and Detection

	
 

20090042191

(11/954,044)

	
APDN (B.V.I.) Inc.

	
2/12/2009

	
United States

	
System and Method for

Authenticating Tablets

	
20090075261

(11/954,055)

	
APDN (B.V.I.) Inc.

	
3/19/2009

	
United States

	
System and Method for

Authenticating Sports

Identification Goods

	
20080293052

(11/954,051)

	
APDN (B.V.I.) Inc.

	
11/27/2008

	
United States

	
Optical Reporter

Compositions

	
20080299667

(11/954,030)

	
APDN (B.V.I.) Inc.

	
12/4/2008

	
United States

	
Methods for Covalent

Linking of Optical

Reporters

	
20080312427

(11/954,009)

	
APDN (B.V.I.) Inc.

	
12/12/2008

	
United States

	
Method for Authenticating

Articles with Optical

Reporters

	
20080299559

(11/954,038)

	
APDN (B.V.I.) Inc.

	
12/4/2008

	
United States

	
Methods for Genetic

Analysis of Textiles made

of Gossypium Barbadense

and Gossypium

Hirsutum Cotton

	
Published by WIPO

WO 2010/056642

12/269,737

	
APDN (B.V.I.) Inc.

	
05/20/2010.

	
United States

	
Methods for Genetic

Analysis of Textiles made

of Gossypium Barbadense

and Gossypium

Hirsutum  Cotton

	
Published by WIPO

WO 2010/056642

PCT/US09/63814

	
APDN (B.V.I.) Inc.

	
05/20/2010

	
WIPO

	
Methods for Genotyping

Mature Cotton Fibers and

Textiles

	
Published by WIPO

WO 2010/056645

12/269,757

	
APDN (B.V.I.) Inc.

	
Published by WIPO 05/20/2010.

	
United States

	
Methods for Genotyping

Mature Cotton Fibers and

Textiles

	
Published by WIPO

WO 2010/056645

PCT/US09/63818

	
APDN (B.V.I.) Inc.

	
05/20/2010

	
WIPO

	
Incorporating Water Soluble

Security Markers into

Cyanoacrylate Solutions

	
20090286250

(12/465,450)

	
APDN (B.V.I.) Inc.

	
11/19/2009

	
United States

 

  

-10-

  

The following are used by the Grantor:

	
TRADEMARKS

	
Registered

	
TM Reg #

	
Assignee of

Record

	
Registered

	
Jurisdiction

	
APPLIED DNA

	
3489209

	
APDN

	
8/19/2008

	
United States

	
SIGNATURE

	
3482366

	
APDN

	
8/5/2008

	
United States

	
SIGNATURE

	
005419031

	
Apdn

	
10/26/2006

	
EU

	
SIGNATURE

	
1143760

	
APDN

	
10/27/2006

	
Australia

	
AZSURE

	
3698729

	
APDN

	
10/20/2009

	
United States

	
AZSURE

	
1022396

	
APDN

	
1109/2009

	
EU

	
Pending

	
TM Reg #

	
Assignee of

Record

	
Filed

	
Jurisdiction

	
FIBERTYPING

	
77/488531

	
APDN

	
6/2/2008

	
United States

	
PIMATYPING

	
77/488647

	
APDN

	
6/2/2008

	
United States

	
BIOMATERIAL GENOTYPING

	
77/771522

	
APDN

	
6/30/2009

	
United States

	
FIBERTYPING

	
77/728499

	
APDN

	
05/04/2009

	
United States

	
PIMATYPING

	
77/728511

	
APDN

	
05/04/2009

	
United States

 

  

-11-

  

 

Schedule III

None.

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