Document:

Exhibit 10.44

 

execution
version

 

INTELLECTUAL
PROPERTY SECURITY AGREEMENT

 

This INTELLECTUAL PROPERTY
SECURITY AGREEMENT (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “IP
Security Agreement”) dated October 19, 2018, is made by APDN (B.V.I.) Inc., a corporation formed under the laws of the
British Virgin Islands (the “Grantor”), in favor of DELAWARE TRUST COMPANY, a Delaware corporation, as collateral
agent (the “Collateral Agent”) for the Secured Parties (as defined in the Guaranty and Security Agreement referred
to below).

 

WHEREAS, Grantor is a
wholly owned subsidiary of APPLIED DNA SCIENCES, a Delaware corporation (the “Company”) and the Company is party
to the Securities Purchase Agreement dated as of August 31, 2018 (as amended, restated, amended and restated, supplemented or otherwise
modified from time to time, the “Securities Purchase Agreement”) with the Buyers party thereto.

 

WHEREAS, pursuant to
the Securities Purchase Agreement, the Grantor has executed and delivered that certain Guaranty and Security Agreement, dated as
of the date hereof, made by the Grantor to the Collateral Agent for the benefit of the Secured Parties (as amended, restated, amended
and restated, supplemented or otherwise modified from time to time, the “Security Agreement”; the capitalized
terms defined therein and not otherwise defined herein being used herein as therein defined).

 

WHEREAS, under the terms
of the Security Agreement, the Grantor has granted to the Collateral Agent, for the ratable benefit of the Secured Parties, a security
interest in, among other property, certain intellectual property of the Grantor, and have agreed as a condition thereof to execute
this IP Security Agreement for recording with the U.S. Patent and Trademark Office, the United States Copyright Office and other
governmental authorities.

 

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

 

SECTION 1.     
Grant of Security. Grantor hereby grants to the Collateral Agent for the ratable benefit of the Secured Parties a security
interest in all of Grantor’s right, title and interest in and to the following (the “Collateral”):

 

(i)       all
patents, patent applications, utility models and statutory invention registrations, all inventions claimed or disclosed therein
and all improvements thereto, including, without limitation, those set forth in Schedule A hereto (the “Patents”);

 

(ii)       all
trademarks, service marks, domain names, trade dress, logos, designs, slogans, trade names, business names, corporate names and
other source identifiers, whether registered or unregistered (provided that no security interest shall be granted in United States
intent-to-use trademark applications to the extent that, and solely during the period in which, the grant of a security interest
therein would impair the validity or enforceability of such intent-to-use trademark applications under applicable federal law),
together, in each case, with the goodwill symbolized thereby, including, without limitation, those set forth in Schedule B
hereto (the “Trademarks”);

 

    	 		 

     

    

 

 

(iii)       all
copyrights, including, without limitation, copyrights in Computer Software (as hereinafter defined), internet web sites and the
content thereof, whether registered or unregistered, including, without limitation, the copyright registrations and applications
and exclusive copyright licenses set forth in Schedule C hereto (the “Copyrights”);

 

(iv)       all
reissues, divisions, continuations, continuations-in-part, extensions, renewals and reexaminations of any of the foregoing, all
rights in the foregoing provided by international treaties or conventions, all rights corresponding thereto throughout the world
and all other rights of any kind whatsoever of Grantor accruing thereunder or pertaining thereto;

 

(v)       any
and all claims for damages and injunctive relief for past, present and future infringement, dilution, misappropriation, violation,
misuse or breach with respect to any of the foregoing, with the right, but not the obligation, to sue for and collect, or otherwise
recover, such damages; and

 

(vi)       any
and all proceeds of, collateral for, income, royalties and other payments now or hereafter due and payable with respect to, and
supporting Obligations (as defined in the Security Agreement) relating to, any and all of the Collateral of or arising from any
of the foregoing.

 

SECTION 2.     
Security
for Obligations. The grant of a security interest in the Collateral by Grantor under this IP Security Agreement secures the
payment of all Secured Obligations now or hereafter existing under or in respect of the Transaction Documents, whether direct or
indirect, absolute or contingent, and whether for principal, reimbursement obligations, interest, premiums, penalties, fees, indemnifications,
contract causes of action, costs, expenses or otherwise. Without limiting the generality of the foregoing, this IP Security Agreement
secures, as to Grantor, the payment of all amounts that constitute part of the Secured Obligations and that would be owed by Grantor
to any Secured Party under the Transaction Documents but for the fact that such Secured Obligations are unenforceable or not allowable
due to the existence of a bankruptcy, reorganization or similar proceeding involving Grantor.

 

SECTION 3.     
Recordation.
Grantor authorizes and requests that the Register of Copyrights, the Commissioner for Patents and the Commissioner for Trademarks
and any other applicable government officer record this IP Security Agreement.

 

SECTION 4.     
Execution
in Counterparts. This IP Security Agreement may be executed in any number of counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

SECTION 5.     Grants,
Rights and Remedies. This IP Security Agreement has been entered into in conjunction with the provisions of the Security Agreement.
Grantor does hereby acknowledge and confirm that the grant of the security interest hereunder to, and the rights and remedies
of, the Collateral Agent with respect to the Collateral are more fully set forth in the Security Agreement, the terms and provisions
of which are incorporated herein by reference as if fully set forth herein.

 

    	 	-2-	 

     

    

 

SECTION 6.     
GOVERNING
LAW. THIS IP SECURITY AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO CONFLICTS OF LAWS.

 

[remainder of page intentionally
blank]

 

    	 	-3-	 

     

    

 

IN WITNESS WHEREOF, Grantor
has caused this IP Security Agreement to be duly executed and delivered by its officer thereunto duly authorized as of the date
first above written.

 

	 	APDN (B.V.I.) INC.,
	 	a corporation formed under the laws of the British Virgin Islands
	 	 	 
	 	By:	/s/ James A. Hayward
	 	Name:	James A. Hayward
	 	Title:	Authorized Signatory
	 	 	 
	 	Address for Notices:
	 	 	 
	 	50 Health Sciences Drive
	 	Stony Brook, NY 11790
	 	Attn: Beth Jantzen, CPA
	 	Facsimile: 631-240-8900
	 	 
	 	 	with a copy to:
	 	 
	 	Pepper Hamilton LLP
	 	The New York Times Building
	 	37th Floor
	 	620 Eighth Avenue
	 	New York, NY  10018-1405
	 	Attention: Merrill M. Kraines
	 	E-mail: krainesm@pepperlaw.com

 

    	 	-4-	 

     

    

 

SCHEDULE A

 

Patents

 

	
         Country
	 	Status	 	Application No.	 	Application Date	 	Title	 	Patent Number	 	Grant Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Australia	 	Filed	 	2013329256	 	10/10/2013	 	USE OF PERTURBANTS TO FACILITATE INCORPORATION AND RECOVERY OF TAGGANTS FROM POLYMERIZED COATINGS   	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Australia	 	Granted	 	2013331402	 	10/16/2013	 	SECURITY SYSTEM AND METHOD OF MARKING AN INVENTORY ITEM AND/OR PERSON IN THE VICINITY	 	2013331402	 	02/08/2018	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Canada	 	Filed	 	2,903,728	 	10/16/2013	 	SECURITY SYSTEM AND METHOD OF MARKING AN INVENTORY ITEM AND/OR PERSON IN THE VICINITY 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Canada	 	Filed	 	2,926,436	 	10/07/2014	 	MULTIMODE IMAGE AND SPECTRAL READER 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Canada	 	Filed	 	2,940,655	 	03/18/2015	 	ENCRYPTED OPTICAL MARKERS FOR SECURITY APPLICATIONS	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Canada	 	Granted	 	2,945,710	 	04/14/2015	 	CONTOUR ENCRYPTION AND DECRYPTION 	 	2,945,710	 	07/11/2017	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Canada	 	Granted	 	2,886,472	 	10/10/2013	 	USE OF PERTURBANTS TO FACILITATE INCORPORATION AND RECOVERY OF TAGGANTS FROM POLYMERIZED COATINGS	 	2,886,472	 	04/18/2017	 

 

    	 	-5-	 

     

    

 

	
         Country
	 	Status	 	Application No.	 	Application Date	 	Title	 	Patent Number	 	Grant Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Canada	 	Granted	 	2,713,101	 	10/04/2007	 	METHOD FOR A CONTINUOUS RAPID THERMAL CYCLE SYSTEM	 	2,713,101	 	09/13/2016	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Canada 	 	Granted 	 	CA2480069	 	3/21/2003	 	Marking Apparatus for Nucleic Acid Marking of Items 	 	480069	 	7/24/2012	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	China P.R.	 	Filed	 	PCT/US2015/025734	 	04/15/2015	 	CONTOUR ENCRYPTION AND DECRYPTION 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	China P.R.	 	Filed	 	201580014368.6	 	03/18/2015	 	ENCRYPTED OPTICAL MARKERS FOR SECURITY APPLICATIONS	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	China P.R.	 	Granted	 	3155949.2	 	08/27/2003	 	METHOD OF DISSOLVING NUCLEIC ACID IN WATER INSOLUBLE MEDIUM AND ITS APPLICATION 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	China P.R.	 	Granted	 	ZL 200780045281 .0	 	10/04/2007	 	METHOD FOR A CONTINUOUS RAPID THERMAL CYCLE SYSTEM	 	101589157	 	04/02/2014	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	China P.R.	 	Granted	 	31559492	 	08/27/2003	 	METHOD FOR MIXING RIBONUCLEIC ACID IN WATER-INSOLUBLE MEDIUM AND UTILIZATION THEREOF 	 	356065	 	08/27/2003	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	China P.R.	 	Granted	 	00107580.2	 	05/18/2000	 	A METHOD FOR UTILIZING RIBONUCLEIC ACID AS MARKERS FOR PRODUCT ANTI-COUNTERFEITING LABELS 	 	193957	 	05/18/2000	 

 

    	 	-6-	 

     

    

 

	
         Country
	 	Status	 	Application No.	 	Application Date	 	Title	 	Patent Number	 	Grant Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	European Patent Convention	 	Granted	 	03007023.9	 	03/27/2003	 	METHOD FOR MIXING RIBONUCLEIC ACID IN WATER-INSOLUBLE MEDIUM AND UTILIZATION THEREOF	 	1394544	 	03/27/2003	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	European Patent Convention	 	Granted	 	4018374.1	 	08/03/2004	 	METHOD FOR CONCEALING A SECRET INFORMATION CARRIED WITHIN A DNA MOLECULE AND METHOD FOR DECODING A SECRET INFORMATION THAT HAVE BEEN CONCEALED BY SAID CONCEALING METHOD	 	156878.3	 	08/03/2004	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	European Patent Convention	 	Filed	 	14852842.5	 	10/07/2014	 	MULTIMODE IMAGE AND SPECTRAL READER 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	European Patent Convention	 	Filed	 	15780179.6	 	04/15/2015	 	CONTOUR ENCRYPTION AND DECRYPTION 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	European Patent Convention	 	Filed	 	07852534.2	 	10/04/2007	 	METHOD FOR A CONTINUOUS RAPID THERMAL CYCLE SYSTEM	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	European Patent Convention	 	Filed	 	15765671.1	 	03/18/2015	 	ENCRYPTED OPTICAL MARKERS FOR SECURITY APPLICATIONS	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	European Patent Convention	 	Filed	 	16783711.1	 	09/28/2017	 	HYDROPHOBIC NUCLEIC ACID SALTS AS SECURITY MARKERS	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	European Patent Convention	 	Filed	 	13776001.3	 	04/05/2013	 	PLASMA TREATMENT FOR DNA BINDING 	 	 	 	 	 

 

    	 	-7-	 

     

    

 

	
         Country
	 	Status	 	Application No.	 	Application Date	 	Title	 	Patent Number	 	Grant Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	European Patent Convention	 	Filed	 	13845351.9	 	10/10/2013	 	USE OF PERTURBANTS TO FACILITATE INCORPORATION AND RECOVERY OF TAGGANTS FROM POLYMERIZED COATINGS	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	European Patent Convention	 	Filed	 	14784907.9	 	04/18/2014	 	LASER MARKING FOR AUTHENTICATION AND TRACKING 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	European Patent Convention	 	Filed 	 	 	 	 	 	SECURITY SYSTEM AND METHOD OF MARKING AN INVENTORY ITEM AND/OR PERSON IN THE VICINITY	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	European Patent Convention	 	Granted	 	13847647.8	 	10/16/2013	 	SECURITY SYSTEM AND METHOD OF MARKING AN INVENTORY ITEM AND/OR PERSON IN THE VICINITY	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	European Patent Convention	 	Granted	 	12152848.3	 	01/27/2012	 	MARKING COMPOSITION	 	2482262	 	09/06/2017	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	France	 	Granted	 	12152848.3	 	01/27/2012	 	MARKING COMPOSITION	 	2482262	 	09/06/2017	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	France	 	Granted	 	4018374.1	 	08/03/2004	 	A NUCLEIC ACID BASED STEGANOGRAPHY SYSTEM AND APPLICATION THEREOF	 	1568783	 	07/11/2007	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	France 	 	Granted	 	03007023.9	 	03/27/2003	 	METHOD FOR MIXING RIBONUCLEIC ACID IN WATER-INSOLUBLE MEDIUM AND UTILIZATION THEREOF	 	1394544	 	02/04/2009	 

 

    	 	-8-	 

     

    

 

	
         Country
	 	Status	 	Application No.	 	Application Date	 	Title	 	Patent Number	 	Grant Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Germany	 	Granted	 	4018374.1	 	08/03/2004	 	A NUCLEIC ACID BASED STEGANOGRAPHY SYSTEM AND APPLICATION THEREOF	 	04018374	 	07/11/2007	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Germany	 	Granted	 	03007023.9	 	03/27/2003	 	METHOD FOR MIXING RIBONUCLEIC ACID IN WATER-INSOLUBLE MEDIUM AND UTILIZATION THEREOF	 	603 26 065.9	 	02/04/2009	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Germany	 	Granted 	 	12152848.3	 	01/27/2012	 	MARKING COMPOSITION	 	2482262	 	09/06/2017	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Great Britain	 	Granted	 	12152848.3	 	01/27/2012	 	MARKING COMPOSITION	 	2482262	 	09/06/2017	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Great Britain	 	Granted	 	613626.1	 	07/08/2006	 	MARKING MATERIAL 	 	613626.1	 	07/08/2006	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Great Britain	 	Granted	 	4018374.1	 	08/03/2004	 	A NUCLEIC ACID BASED STEGANOGRAPHY SYSTEM AND APPLICATION THEREOF	 	1568783	 	07/11/2007	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Great Britain	 	Granted	 	03007023.9	 	03/27/2003	 	METHOD FOR MIXING RIBONUCLEIC ACID IN WATER-INSOLUBLE MEDIUM AND UTILIZATION THEREOF	 	1394544	 	02/04/2009	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Great Britain 	 	Granted 	 	GB2390055	 	3/21/2003	 	Marking Apparatus for Nucleic Acid Marking of Items 	 	GB2390055	 	8/9/2005	 

 

    	 	-9-	 

     

    

 

	
         Country
	 	Status	 	Application No.	 	Application Date	 	Title	 	Patent Number	 	Grant Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hong Kong	 	Granted	 	10105127.3	 	10/04/2007	 	METHOD FOR A CONTINUOUS RAPID THERMAL CYCLE SYSTEM	 	1139184	 	11/14/2014	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	India	 	Granted	 	P 002 004 00374	 	08/04/2004	 	A NUCLEIC ACID BASED STEGANOGRAPHY SYSTEM AND APPLICATION THEREOF	 	IDO  0026764	 	08/04/2004	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	India 	 	Filed 	 	##############	 	07/13/2017	 	METHOD AND DEVICE FOR MARKING FIBROUS MATERIALS 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Indonesia	 	Granted	 	P-002004/00374	 	08/04/2004	 	METHOD FOR CONCEALING A SECRET INFORMATION CARRIED WITHIN A DNA MOLECULE AND METHOD FOR DECODING A SECRET INFORMATION THAT HAVE BEEN CONCEALED BY SAID CONCEALING METHOD	 	IDO  0026764	 	08/04/2004	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ireland	 	Granted 	 	12152848.3	 	01/27/2012	 	MARKING COMPOSITION	 	2482262	 	09/06/2017	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Israel	 	Granted	 	198028	 	10/04/2007	 	METHOD FOR PERFORMING PCR IN A CONTINUOUS RAPID THERMAL CYCLE SYSTEM	 	198028	 	07/06/2015	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Italy	 	Granted	 	4018374.1	 	08/03/2004	 	A NUCLEIC ACID BASED STEGANOGRAPHY SYSTEM AND APPLICATION THEREOF	 	31679  BE/2007	 	07/11/2007	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Italy	 	Granted	 	03007023.9	 	03/27/2003	 	METHOD FOR MIXING RIBONUCLEIC ACID IN WATER-INSOLUBLE MEDIUM AND UTILIZATION THEREOF	 	1394544	 	02/04/2009	 

 

    	 	-10-	 

     

    

 

	
         Country
	 	Status	 	Application No.	 	Application Date	 	Title	 	Patent Number	 	Grant Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Japan	 	Filed	 	2017-501090	 	03/18/2015	 	ENCRYPTED OPTICAL MARKERS FOR SECURITY APPLICATIONS	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Japan	 	Granted	 	2016-562831	 	10/14/2016	 	CONTOUR ENCRYPTION AND DECRYPTION 	 	6273379	 	01/12/2018	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Japan	 	Granted	 	2004-225987	 	08/04/2004	 	METHOD FOR ENCRYPTING AND DECRYPTING SPECIFIC MESSAGE BY USING NUCLEIC ACID MOLECULE 	 	4452947	 	08/04/2004	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Japan	 	Granted	 	2002/294229	 	08/30/2002	 	METHOD FOR MIXING RIBONUCLEIC ACID IN WATER-INSOLUBLE MEDIUM AND UTILIZATION THEREOF 	 	3930794	 	08/30/2002	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Malaysia	 	Granted	 	PI2004/3145	 	08/04/2004	 	METHOD FOR CONCEALING A SECRET INFORMATION CARRIED WITHIN A DNA MOLECULE AND METHOD FOR DECODING A SECRET INFORMATION THAT HAVE BEEN CONCEALED BY SAID CONCEALING METHOD	 	MY-135976-A	 	07/31/2008	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Patent Cooperation Treaty	 	Filed	 	PCT/US2015/025734	 	04/14/2015	 	CONTOUR ENCRYPTION AND DECRYPTION 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Patent Cooperation Treaty	 	Filed	 	PCT/US2015/021165	 	03/18/2015	 	ENCRYPTED OPTICAL MARKERS FOR SECURITY APPLICATIONS	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Patent Cooperation Treaty	 	Filed	 	PCT/US18/13549	 	01/12/2018	 	TRACEABLE NUCLEIC ACID MARKED FERTILIZER 	 	 	 	 	 

 

    	 	-11-	 

     

    

 

	
         Country
	 	Status	 	Application No.	 	Application Date	 	Title	 	Patent Number	 	Grant Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Patent Cooperation Treaty	 	Filed 	 	PCT/US17/17049	 	 	 	IDENTIFYING MARKED ARTICLES IN THE INTERNATIONAL

STREAM OF COMMERCE 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Patent Cooperation Treaty	 	Filed 	 	PCT/US17/23579	 	03/22/2017	 	METHOD OF MARKING CELLULOSIC PRODUCTS  	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Peru	 	Filed	 	 	 	 	 	METHOD AND DEVICE FOR MARKING FIBROUS MATERIALS 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Republic of Korea	 	Granted	 	61387/2004	 	08/04/2004	 	METHOD FOR CONCEALING A SECRET INFORMATION CARRIED WITHIN A DNA MOLECULE AND METHOD FOR DECODING A SECRET INFORMATION THAT HAVE BEEN CONCEALED BY SAID CONCEALING METHOD	 	4452947	 	08/04/2004	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Switzerland	 	Granted	 	4018374.1	 	08/03/2004	 	A NUCLEIC ACID BASED STEGANOGRAPHY SYSTEM AND APPLICATION THEREOF	 	1568783	 	07/11/2007	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Switzerland	 	Granted	 	03007023.9	 	03/27/2003	 	METHOD FOR MIXING RIBONUCLEIC ACID IN WATER-INSOLUBLE MEDIUM AND UTILIZATION THEREOF	 	337023	 	02/04/2009	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Taiwan	 	Filed	 	104110480	 	03/31/2015	 	IN-FIELD DNA EXTRACTION, DETECTION AND AUTHENTICATION METHODS AND SYSTEMS THEREFOR 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Taiwan	 	Filed	 	92119302	 	07/15/2003	 	A TRANSFER METHOD OF REWARD FUND CAPABLE FOR IDENTIFYING MULTIPLE TARGETS 	 	 	 	 	 

 

    	 	-12-	 

     

    

 

	
         Country
	 	Status	 	Application No.	 	Application Date	 	Title	 	Patent Number	 	Grant Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Taiwan	 	Granted	 	2003-0121490	 	08/06/2003	 	METHOD FOR CONCEALING A SECRET INFORMATION CARRIED WITHIN A DNA MOLECULE AND METHOD FOR DECODING A SECRET INFORMATION THAT HAVE BEEN CONCEALED BY SAID CONCEALING METHOD	 	I326308	 	02/16/2005	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Taiwan	 	Granted	 	89108443	 	03/17/2000	 	NUCLEIC ACID AS MARKER FOR PRODUCT ANTI-COUNTERFETING AND IDENTIFICATION	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Taiwan	 	Granted	 	89111477	 	06/12/2000	 	A DEVICE FOR MULTIPLE PCR IN A CLOSED CONTAINER AND METHOD OF USING THERFOR	 	I231311	 	06/12/2000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Thailand	 	Granted	 	92819	 	08/04/2004	 	METHOD FOR CONCEALING A SECRET INFORMATION CARRIED   WITHIN A DNA MOLECULE AND METHOD FOR DECODING A SECRET INFORMATION THAT HAVE BEEN CONCEALED BY SAID CONCEALING METHOD	 	156878.3	 	08/04/2004	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Turkey 	 	Filed 	 	2018/03030	 	3/1/2018	 	TRACEABLE NUCLEIC ACID MARKED FERTILIZER 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed	 	14/695,228	 	04/24/2015	 	METHODS AND SYSTEMS FOR THE GENERATION OF A PLURALITY OF SECURITY MARKERS AND THE DETECTION THEROF 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed	 	14/570,242	 	12/15/2014	 	SECURITY SYSTEM AND METHOD OF MARKING AN INVENTORY ITEM AND/OR PERSON IN THE VICINITY	 	 	 	 	 

 

    	 	-13-	 

     

    

 

	
         Country
	 	Status	 	Application No.	 	Application Date	 	Title	 	Patent Number	 	Grant Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed	 	14/969,582	 	12/15/2015	 	INCORPORATING SOLUBLE SECURITY MARKERS INTO CYANOACRYLATE SOLUTIONS 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed	 	14/572,552	 	12/16/2014	 	METHOD AND DEVICE FOR MARKING FIBROUS MATERIALS 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed	 	PCT/US2015/066074	 	12/16/2015	 	METHOD AND DEVICE FOR MARKING FIBROUS MATERIALS 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed	 	16/028,176	 	07/05/2018	 	ENCRYPTED OPTICAL MARKERS FOR SECURITY APPLICATIONS	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed	 	15/562,495	 	09/28/2017	 	HYDROPHOBIC NUCLEIC ACID SALTS AS SECURITY MARKERS	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed	 	PCT/US2016/022532	 	03/16/2016	 	METHOD FOR AUTHENTICATING ACTIVE PHARMACEUTICAL INGREDIENTS	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed	 	15/427,983	 	02/08/2017	 	IDENTIFYING MARKED ARTICLES IN THE INTERNATIONAL STREAM OF
    COMMERCE 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed	 	15/212,429	 	07/18/2016	 	PLASMA TREATMENT FOR DNA BINDING 	 	 	 	 	 

 

    	 	-14-	 

     

    

 

	
         Country
	 	Status	 	Application No.	 	Application Date	 	Title	 	Patent Number	 	Grant Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed	 	15/722,157	 	10/02/2017	 	COMPOSITION AND METHOD OF DNA MARKING ELASTOMERIC MATERIAL	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed	 	62/575, 926	 	10/20/2017	 	SYSTEM AND METHOD OF TAGGING OBJECTS WITH DETECTABLE NUCLEIC ACID MARKERS VIA AERIAL DELIVERY	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed 	 	15/870,035	 	01/12/2018	 	TRACEABLE NUCLEIC ACID MARKED FERTILIZER 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed 	 	15/868,510	 	01/11/2018	 	MULTIMODE IMAGE AND SPECTRAL READER 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed 	 	15/466,016	 	03/22/2017	 	METHOD OF MARKING CELLULOSIC PRODUCTS  	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed 	 	62/524,186	 	06/23/201	 	RAPID AUTHENTICATION OF PHARMACEUTICALS VIA DNA TAGGING AND IN-FIELD DETECTION	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed	 	62/660,158	 	04/19/2018	 	SYSTEM AND METHOD FOR PRODUCING PATIENT-SPECIFIC ANTIBODIES VIA LINEAR DNA AMPLICONS	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed 	 	62/625,702	 	02/02/2018	 	SYSTEM AND METHOD FOR TRACKING ORIGIN OF CANNABIS PRODUCTS AND CANNABIS DERIVATIVE PRODUCTS	 	 	 	 	 

 

    	 	-15-	 

     

    

 

	
         Country
	 	Status	 	Application No.	 	Application Date	 	Title	 	Patent Number	 	Grant Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed	 	62/684,142	 	06/12/2018	 	SYSTEMS AND METHODS FOR PRODUCING PATIENT-SPECIFIC TUMOR ANTIGENS VIA LINEAR DNA AMPLICONS	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed	 	16/028,176	 	07/05/2018	 	ENCRYPTED OPTICAL MARKERS FOR SECURITY APPLICATIONS	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Filed	 	62/700,021	 	07/18/2018	 	PLANT MATERIAL SPRAYING SYSTEM	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Granted	 	15/027,454	 	04/06/2016	 	MULTIMODE IMAGE AND SPECTRAL READER 	 	9,904,734	 	02/27/2018	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Granted	 	10/748,412	 	12/29/2003	 	METHOD OF MARKING SOLID OR LIQUID SUBSTANCES WITH NUCLEIC ACID FOR ANTI-COUNTERFEITING AND AUTHENTICATION 	 	7,115,301	 	10/03/2006	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Granted	 	11/954,038	 	12/11/2007	 	METHODS FOR AUTHENTICATING ARTICLES WITH OPTICAL REPORTERS 	 	8,426,216	 	04/23/2013	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Granted	 	11/954,044	 	12/11/2007	 	SYSTEM AND METHOD FOR SECURE DOCUMENT PRINTING AND DETECTION 	 	8,415,164	 	04/09/2013	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Granted	 	11/954,051	 	12/11/2007	 	SYSTEM AND METHOD FOR AUTHENTICATING SPORTS IDENTIFICATION GOODS 	 	8,415,165	 	04/09/2013	 

 

    	 	-16-	 

     

    

 

	
         Country
	 	Status	 	Application No.	 	Application Date	 	Title	 	Patent Number	 	Grant Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Granted	 	11/954,030	 	12/11/2007	 	OPTICAL REPORTER COMPOSITIONS 	 	8,372,648	 	02/12/2013	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Granted	 	13/761,447	 	02/07/2013	 	OPTICAL REPORTER COMPOSITIONS 	 	9,005,985	 	04/14/2015	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Granted	 	14/253,641	 	04/15/2014	 	CONTOUR ENCRYPTION AND DECRYPTION 	 	9,412,284	 	08/09/2016	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Granted	 	11/954,009	 	12/11/2007	 	METHODS FOR COVALENT LINKING OF OPTICAL REPORTERS 	 	8,124,333	 	02/28/2012	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Granted	 	12/307,488	 	10/26/2009	 	MARKING MATERIAL 	 	9,171,443	 	10/27/2015	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Granted	 	13/648,594	 	10/10/2012	 	USE OF PERTURBANTS TO FACILITATE INCORPORATION AND RECOVERY OF TAGGANTS FROM POLYMERIZED COATINGS 	 	9,297,032	 	03/29/2016	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Granted	 	14/497,614	 	09/26/2014	 	METHOD AND DEVICE FOR MARKING ARTICLES 	 	9,963,740	 	05/08/2018	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Granted	 	15/079,214	 	03/24/2016	 	USE OF PERTURBANTS TO FACILITATE INCORPORATION AND RECOVERY OF TAGGANTS FROM POLYMERIZED COATINGS 	 	 	 	 	 

 

    	 	-17-	 

     

    

 

	
         Country
	 	Status	 	Application No.	 	Application Date	 	Title	 	Patent Number	 	Grant Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States	 	Granted	 	14/661,489	 	03/18/2015	 	ENCRYPTED OPTICAL MARKERS FOR SECURITY APPLICATIONS	 	10,047,282	 	08/14/2018	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Various EU Members 	 	Granted 	 	312388.2	 	3/21/3003	 	Marking Apparatus for Nucleic Acid Marking of Items 	 	EP1488039	 	3/9/2006	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Vietnam	 	Granted	 	1-2004-00742	 	08/04/2004	 	METHOD FOR CONCEALING A SECRET INFORMATION CARRIED WITHIN A DNA MOLECULE AND METHOD FOR DECODING A SECRET INFORMATION THAT HAVE BEEN CONCEALED BY SAID CONCEALING METHOD	 	9182	 	08/04/2004	 

 

    	 	-18-	 

     

    

 

SCHEDULE B

 

Trademarks

 

	
         Docket Number
	 	Client Ref No.	 	Country	 	 Application Date	 	Application No	 	 Registration Date	 	 Registration No.	 	Status	 
	2542-10 AUSTRALIA	 	8251-8 AUSTRALIA	 	Australia	 	10/27/2006	 	1143760	 	09/29/2008	 	1143760	 	Registered	 
	2542-10 CANADA	 	8251-8 CANADA	 	Canada	 	10/26/2006	 	1321773	 	11/28/2012	 	837149	 	Registered	 
	2542-89 Intl/EU	 	 	 	Community Trademark	 	8/16/2017	 	1368527	 	8/7/2017	 	1368527	 	Registered	 
	2542-75 EU	 	 	 	Community Trademark	 	6/9/2017	 	16828287	 	9-Jun-17	 	16828287	 	Registered	 
	2542-72 EU	 	 	 	Community Trademark	 	12/20/2016	 	16189961	 	04/24/2017	 	16189961	 	Registered	 
	2542-46 EU	 	8251-59 EPO	 	Community Trademark	 	11/09/2009	 	1022396	 	11/09/2009	 	1022396	 	Registered	 
	2542-54 INTL/EU	 	8251-70 MP EU	 	Community Trademark	 	10/09/2015	 	1277705	 	10/09/2015	 	1277705	 	Registered	 
	2542-55 INTL/EU	 	8251-71 MP EU	 	Community Trademark	 	10/09/2015	 	1,280,146	 	10/09/2015	 	1,280,146	 	Registered	 
	2542-33 EU	 	8251-16 CTM	 	Community Trademark	 	07/19/2012	 	011054285	 	12/14/2012	 	011054285	 	Registered	 
	2542-62 INTL/EU	 	8251-72 MP EU	 	Community Trademark	 	10/09/2015	 	1,277,538	 	10/09/2015	 	1,277,538	 	Registered	 
	2542-63 INTL/EU	 	8251-73 MP EU	 	Community Trademark	 	10/09/2015	 	1,282,810	 	10/09/2015	 	1,282,810	 	Registered	 
	2542-42 EU	 	8251-52 CTM	 	Community Trademark	 	05/09/2011	 	009948258	 	10/13/2011	 	009948258	 	Registered	 
	2542-59 EU	 	8251-66 CTM	 	Community Trademark	 	04/16/2010	 	009034349	 	09/28/2010	 	009034349	 	Registered	 
	2542-58 EU	 	8251-65 CTM	 	Community Trademark	 	05/06/2011	 	00948258	 	10/13/2011	 	00948258	 	Registered	 
	2542-41 EU	 	8251-51 CTM	 	Community Trademark	 	12/07/2007	 	006537047	 	11/21/2008	 	006537047	 	Registered	 
	2542-57 EU	 	8251-64 CTM	 	Community Trademark	 	05/06/2011	 	009948092	 	10/13/2011	 	009948092	 	Registered	 
	2542-29 EU	 	8251-10 EPO	 	Community Trademark	 	08/12/2010	 	1048621	 	08/12/2010	 	1048621	 	Registered	 
	2542-47 EU	 	8251-61 EU	 	Community Trademark	 	12/07/2007	 	006536999	 	11/06/2008	 	006536999	 	Registered	 
	2542-56 EU	 	8251-62 CTM	 	Community Trademark	 	05/06/2011	 	009948118	 	10/13/2011	 	009948118	 	Registered	 
	2542-60 EU	 	8251-67 CTM	 	Community Trademark	 	05/06/2011	 	009948308	 	10/13/2011	 	009948308	 	Registered	 
	2542-61 EU	 	8251-68 CTM	 	Community Trademark	 	05/06/2011	 	009948423	 	10/13/2011	 	009948423	 	Registered	 
	2542-10 EU	 	8251-8 EPO	 	Community Trademark	 	10/26/2006	 	005419031	 	09/28/2007	 	005419031	 	Registered	 
	2542-30 INTL/EU	 	8251-12 MP EU	 	Community Trademark	 	11/22/2013	 	1,186,977	 	11/22/2013	 	1,186,977	 	Registered	 
	2542-58 UNITED KINGDOM	 	8251-65	 	Great Britain	 	11/09/2009	 	2531080	 	05/18/2012	 	00002531080	 	Registered	 
	2542-30 INTL/ICELAND	 	8251-12 MP ICELAND	 	Iceland	 	12/19/2013	 	3594/2013	 	11/22/2013	 	1,186,977	 	Registered	 

 

    	 	-19-	 

     

    

 

	
         Docket Number
	 	Client Ref No.	 	Country	 	 Application Date	 	Application No	 	 Registration Date	 	 Registration No.	 	Status	 
	2542-89 Intl	 	 	 	International	 	8/7/2017	 	A0069009	 	 	 	 	 	Registered	 
	2542-54 INTL	 	8251-70 MP	 	International	 	10/09/2015	 	A0053765	 	10/09/2015	 	1277705	 	Registered	 
	2542-55 INTL	 	8251-71 MP	 	International	 	10/09/2015	 	1,280,146	 	10/09/2015	 	1/280,146	 	Registered	 
	2542-62 INTL	 	8251-72 MP	 	International	 	10/09/2015	 	1277538	 	10/09/2015	 	1277538	 	Registered	 
	2542-63 INTL	 	8251-73 MP	 	International	 	10/09/2015	 	1,282,810	 	10/09/2015	 	1,282,810	 	Registered	 
	2542-30 INTL	 	8251-12 MP	 	International	 	11/22/2013	 	A0039418	 	11/22/2013	 	1,186,977	 	Registered	 
	2542-89 Intl/UK	 	 	 	UK	 	3/6/2017	 	WE00001368527	 	1/9/2018	 	1368527	 	Registered	 
	2542-84UK	 	 	 	UK	 	06/22/2017	 	UK00003238912	 	09/08/2017	 	UK00003238912	 	Registered	 
	2542-72	 	 	 	United States	 	06/21/2016	 	87/078,346	 	 	 	 	 	Filed	 
	2542-54	 	8251-70	 	United States	 	04/10/2015	 	86/593,696	 	04/11/2017	 	5,182,183	 	Registered	 
	2542-55	 	8251-71	 	United States	 	04/10/2015	 	86/593,862	 	04/11/2017	 	5,182,184	 	Registered	 
	2542-70	 	 	 	United States	 	06/29/2015	 	86/677,227	 	02/14/2017	 	5,142,544	 	Registered	 
	2542-9	 	 	 	United States	 	09/22/2003	 	76/978,843	 	08/19/2008	 	3,489,209	 	Registered	 
	2542-31	 	8251-14	 	United States	 	12/29/2010	 	85/207,192	 	04/03/2012	 	4,120,445	 	Registered	 
	2542-33	 	8251-16	 	United States	 	01/25/2012	 	85/524,990	 	03/04/2014	 	4,491,643	 	Registered	 
	2542-32	 	8251-15	 	United States	 	12/29/2010	 	85/207,229	 	11/22/2011	 	4,058,892	 	Registered	 
	2542-11	 	8251-11	 	United States	 	05/04/2009	 	77/728,511	 	10/12/2010	 	3,862,228	 	Registered	 
	2542-12	 	8251-13	 	United States	 	05/04/2009	 	77/728,499	 	01/10/2012	 	4,085,298	 	Registered	 
	2542-10	 	8251-8	 	United States	 	04/28/2006	 	78/871,967	 	08/05/2008	 	3,482,366	 	Registered	 
	2542-30	 	8251-12	 	United States	 	08/12/2010	 	85/105,993	 	05/22/2012	 	4,147,273	 	Registered	 
	2542-88	 	 	 	United States 	 	2/21/2017	 	87/343,172	 	 	 	 	 	Filed 	 

 

    	 	-20-	 

     

    

 

Copyrights

 

None.

 

    	 	-21-Exhibit 10.45

 

SECURITIES
PURCHASE AGREEMENT

 

SECURITIES PURCHASE AGREEMENT (the
“Agreement”), dated as of August 31, 2018, by and among Applied DNA Sciences, Inc., a Delaware corporation,
with headquarters located at 50 Health Sciences Drive, Stony Brook, New York 11790 (the “Company”), and the
investors listed on the Schedule of Buyers attached hereto (individually, a “Buyer” and collectively, the “Buyers”).

 

WHEREAS:

 

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

 

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

 

C.           Each
Buyer wishes to purchase on a several and not a joint basis, and the Company wishes to sell, upon the terms and conditions stated
in this Agreement, that principal amount of the Notes, in substantially the form attached hereto as Exhibit A (the “Notes”),
set forth opposite such Buyer’s name in column (3) on the Schedule of Buyers attached hereto (which aggregate amount
for all Buyers shall be $1,650,000).

 

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

 

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

 

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

 

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

 

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

 

1.          PURCHASE
AND SALE OF NOTES.

 

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

 

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

 

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

 

     

     

    

 

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

 

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

 

2.          BUYER’S
REPRESENTATIONS AND WARRANTIES.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	-2-	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	-3-	 

     

    

 

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

 

3.          REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

 

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

 

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

 

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

 

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

 

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

 

    	 	-4-	 

     

    

 

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

 

4.          COVENANTS.

 

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

 

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

 

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

 

(d)          Collateral
Agent.

 

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

 

    	 	-5-	 

     

    

 

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

 

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

 

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

 

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

 

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

 

    	 	-6-	 

     

    

 

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

 

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

 

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

 

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

 

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

 

5.          REGISTER;
TRANSFER AGENT INSTRUCTIONS.

 

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

 

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

 

    	 	-7-	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	-8-	 

     

    

 

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

 

9.          MISCELLANEOUS.

 

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

 

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

 

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

 

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

 

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

 

    	 	-9-	 

     

    

 

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

 

	 	If to the Company:
	 	 
	 	 	Applied DNA Sciences, Inc.
	 	 	50 Health Sciences Drive
	 	 	Stony Brook, New York 11790
	 	 	Telephone:	(631) 240-8800
	 	 	Attention:	Chief Financial Officer

 

	 	With copies to:
	 	 
	 	 	Pepper Hamilton LLP
	 	 	620 Eighth Street, Floor 37
	 	 	New York, NY 10018
	 	 	Telephone:	212-808-2724
	 	 	Attention:	Merrill Kraines, Esq.

 

	 	If to the Transfer Agent:
	 	 
	 	 	American Stock Transfer and Trust Company
	 	 	6201 15th Ave.
	 	 	Brooklyn, New York 11219
	 	 	Telephone: (718) 921-8210
	 	 	Facsimile: (718) 921-8355
	 	 	Attention: Vito Cirone

 

	 	If to the Collateral Agent:
	 	 	CSC
	 	 	251 Little Falls Drive
	 	 	Wilmington, DE 19808
	 	 	Telephone: (866) 403-5272
	 	 	Facsimile: (302) 636-5454
	 	 	Attention: [●]

 

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

 

    	 	-10-	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 

    	 

    

  

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

 

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

 

[Signature Page Follows]

 

    	 	-11-	 

     

    

 

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

 

	 	COMPANY:
	 	 
	 	APPLIED DNA SCIENCES, INC.

 

	 	By:	/s/ Beth Jantzen
	 	 	Name: Beth Jantzen
	 	 	Title: Chief Financial Officer

 

[Signature Page to Securities Purchase
Agreement]

 

     

     

    

 

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

 

Attestation of Receipt of Documents

 

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

 

		1)	Purchase Agreement (including all exhibits and schedules)

 

		2)	Registration Rights Agreement

 

		3)	Security Agreement

 

		4)	Form of Note

 

	 	BUYERS:
	 	 

 

	 	By:	/s/ James A. Hayward
	 	 	Name: James A. Hayward
	 	 	Title:

 

[Signature Page to Securities Purchase
Agreement]

 

     

     

    

 

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

 

Attestation of Receipt of Documents

 

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

 

		1)	Purchase Agreement (including all exhibits and schedules)

 

		2)	Registration Rights Agreement

 

		3)	Security Agreement

 

		4)	Form of Note

 

	 	BUYERS:
	 	 

 

	 	By:	/s/ Judith Murrah
	 	 	Name: Judith Murrah
	 	 	Title: Chief Information Officer
	 	 	Applied DNA Sciences, Inc.

 

[Signature Page to Securities Purchase
Agreement]

 

     

     

    

 

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

 

Attestation of Receipt of Documents

 

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

 

		1)	Purchase Agreement (including all exhibits and schedules)

 

		2)	Registration Rights Agreement

 

		3)	Security Agreement

 

		4)	Form of Note

 

	 	BUYERS:
	 	Delabarta II

 

	 	By:	/s/ John F. Bitzer III
	 	 	Name: John F. Bitzer III
	 	 	Title: President

 

[Signature Page to Securities Purchase
Agreement]

 

     

     

    

 

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

 

Attestation of Receipt of Documents

 

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

 

		1)	Purchase Agreement (including all exhibits and schedules)

 

		2)	Registration Rights Agreement

 

		3)	Security Agreement

 

		4)	Form of Note

 

	 	BUYERS:
	 	 

 

	 	By:	/s/ Yacov Shamash
	 	 	Name: Yacov Shamash
	 	 	Title:

 

[Signature Page to Securities Purchase
Agreement]

 

     

     

    

 

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

 

Attestation of Receipt of Documents

 

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

 

		1)	Purchase Agreement (including all exhibits and schedules)

 

		2)	Registration Rights Agreement

 

		3)	Security Agreement

 

		4)	Form of Note

 

	 	BUYERS:
	 	 

 

	 	By:	/s/ Robert Catell
	 	 	Name: 
	 	 	Title:

 

[Signature Page to Securities Purchase
Agreement]

 

     

     

    

 

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

 

Attestation of Receipt of Documents

 

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

 

		1)	Purchase Agreement (including all exhibits and schedules)

 

		2)	Registration Rights Agreement

 

		3)	Security Agreement

 

		4)	Form of Note

 

	 	BUYERS:
	 	 

 

	 	By:	/s/ Elizabeth Schmalz Ferguson
	 	 	Name: 
	 	 	Title: 

 

[Signature Page to Securities Purchase
Agreement]

 

     

     

    

 

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

 

Attestation of Receipt of Documents

 

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

 

		1)	Purchase Agreement (including all exhibits and schedules)

 

		2)	Registration Rights Agreement

 

		3)	Security Agreement

 

		4)	Form of Note

 

	 	BUYERS:
	 	The Rodgers Living Trust Dated April 7, 1995

 

	 	By:	/s/ Jay D. Rodgers
	 	 	Name: Jay D. Rodgers
	 	 	Title: Trustee

 

[Signature Page to Securities Purchase
Agreement]

 

     

     

    

 

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

 

Attestation of Receipt of Documents

 

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

 

		1)	Purchase Agreement (including all exhibits and schedules)

 

		2)	Registration Rights Agreement

 

		3)	Security Agreement

 

		4)	Form of Note

 

	 	BUYERS:
	 	 

 

	 	By:	/s/ Gregg Baldwin
	 	 	Name: W. Gregg Baldwin
	 	 	Title:

 

[Signature Page to Securities Purchase
Agreement]

 

     

     

    

 

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

 

Attestation of Receipt of Documents

 

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

 

		1)	Purchase Agreement (including all exhibits and schedules)

 

		2)	Registration Rights Agreement

 

		3)	Security Agreement

 

		4)	Form of Note

 

	 	BUYERS:
	 	 

 

	 	By:	/s/ William W. Montgomery 8/30/2018
	 	 	Name: William W. Montgomery
	 	 	Title: (private investor)
	 	 	Mr. William W. Montgomery

	 	 	34211 Seavey Loop Rd.
	 	 	 Eugene, OR 97405

 

[Signature Page to Securities Purchase
Agreement]

 

     

     

    

 

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

 

Attestation of Receipt of Documents

 

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

 

	 	1)	Purchase Agreement (including all exhibits and schedules)

 

	 	2)	Registration Rights Agreement

 

	 	3)	Security Agreement

 

	 	4)	Form of Note

 

	 	BUYERS:
	 	 

 

	 	By:	/s/
    Johnette van Eeden
	 	 	Name: Johnette van Eeden
	 	 	Title:

 

[Signature Page to Securities Purchase
Agreement]

 

    	 		 

     

    

 

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

 

Attestation of Receipt of Documents

 

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

 

		1)	Purchase Agreement (including all exhibits and schedules)

 

		2)	Registration Rights Agreement

 

		3)	Security Agreement

 

		4)	Form of Note

 

	 	BUYERS:
	 	 

 

	 	By:	/s/ John Cartier
	 	 	Name: John Cartier
	 	 	Title:

 

[Signature Page to Securities Purchase
Agreement]

 

     

     

    

 

SCHEDULE
OF BUYERS

 

	(1)	 	(2)	 	 	(3)		 	 	(4)		 	 	(5)	
	Buyer	 	Address and
 Facsimile Number	 	 	Aggregate
 Principal
 Amount of
 Notes	 	 	 	Purchase
 Price	 	 	 	Legal Representative’s
 Address and
 Facsimile Number	 
	James A. Hayward	 	1 Emmet Dr 
Stony Brook, NY 11790	 	$	1,000,000	 	 	$	2.50	 	 			 
	Judith Murrah	 	8 Old Post La 
Saint James, NY 11780	 	 	25,000	 	 	$	2.50	 	 	 	 	 
	Delabarta II	 	c/o Delaware Corporate Management 
1105 North Market Street 
Suite 1300 
Wilmington, DE 19801	 	 	100,000	 	 	$	2.50	 	 	 	 	 
	Yavoc Shamash	 	7 Quaker Hill Rd 
Stony Brook, NY 11790	 	 	25,000	 	 	$	2.50	 	 	 	 	 
	Robert Catell	 	62 Osborne Rd 
Garden City, NY 11530	 	 	25,000	 	 	$	2.50	 	 	 	 	 
	Elizabeth Schmalz Ferguson	 	101 Jersey Ave 
Spring Lake, NJ 07762	 	 	10,000	 	 	$	2.50	 	 	 	 	 
	The Rodgers Living Trust Dated April 7, 1995	 	1277 Porter Rd 
Flower Mound, TX 75022	 	 	100,000	 	 	$	2.50	 	 	 	 	 
	Gregg Baldwin	 	3391 Ichabod Way 
The Villages, FL 32163	 	 	50,000	 	 	$	2.50	 	 	 	 	 
	William Montgomery	 	34211 Seavey Loop Rd 
Eugene, OR 97405	 	 	200,000	 	 	$	2.50	 	 	 	 	 
	Johnette van Eeden	 	451 Westpark Way, Ste 5 
Euless, TX 76040	 	 	100,000	 	 	$	2.50	 	 	 	 	 
	John Cartier	 	PO Box ____ 
East Hampton, NY 11937	 	 	15,000	 	 	$	2.50	 	 	 	 	 

 

     

     

    

 

EXHIBITS

 

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

 

     

     

    

 

Exhibit A

 

Form of Notes

 

     

     

    

 

 

[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: August 31, 2018	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 August 30, 2021. At any
time the Company may prepay any portion or all of the outstanding Principal amount of this Note and any accrued and unpaid Interest.

 

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 February 28th and August 31st 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.

 

    	 	Exhibit A-1	 

     

    

 

(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 USD $2.50.

 

(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 fifth 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.

 

    	 	Exhibit A-2	 

     

    

 

(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.

 

4.           RIGHTS
UPON EVENT OF DEFAULT.

 

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

 

(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
delisting of the Company’s Common Stock from the Principal Market;

 

(iii)        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 Transaction Document (as defined in the Securities Purchase Agreement) 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;

 

(iv)        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;

 

(v)         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;

 

(vi)        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;

 

(vii)       the
Security 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 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 a price equal to the sum of the Conversion Amount to be redeemed together with accrued and unpaid Interest
with respect to such Conversion Amount (the “Event of Default Redemption Price”). 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.

 

    	 	Exhibit A-3	 

     

    

  

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 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.

 

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.

 

    	 	Exhibit A-4	 

     

    

 

(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.

 

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 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.

 

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.

 

    	 	Exhibit A-5	 

     

    

 

(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).

 

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

 

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 effect the Holder without the
written consent of the 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.

 

    	 	Exhibit A-6	 

     

    

 

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.

 

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.

 

    	 	Exhibit A-7	 

     

    

 

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.

 

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.

 

    	 	Exhibit A-8	 

     

    

  

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)          “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.

 

(d)          “Closing
Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing bid price
and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal
Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price, as
the case may be, then the last bid price or last trade price, respectively, of such security prior to 4:00:00 p.m., New York Time,
as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security,
the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading
market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid
price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for such
security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security
by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported
in the “pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Bid Price or
the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid
Price or the Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually determined
by the Company and the Holder. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock
combination or other similar transaction during the applicable calculation period.

 

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

 

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

 

(g)          “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.

 

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

 

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

 

(j)          “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, or any market that is a successor to any of the foregoing.

 

(k)         
“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.

 

    	 	Exhibit A-9	 

     

    

 

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

 

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

 

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

 

(o)          “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.

 

(p)          
“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.

 

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

 

(r)          
“Required Holders” means the holders of Notes representing at least a majority of the aggregate principal amount
of the Notes then outstanding.

 

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

 

(t)          “Securities
Purchase Agreement” means 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 the Notes.

 

(u)          
“Subscription Date” means August 31, 2018.

 

(v)         “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.

 

(w)          “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).

 

(x)          “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]

 

    	 	Exhibit A-10	 

     

    

 

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 Form of Secured Convertible
Note]

 

     

     

    

 

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 [●], 2018 from the Company and acknowledged and
agreed to by American Stock Transfer & Trust Company.

	 	 	 
	 	APPLIED DNA SCIENCES, INC	 
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

     

     

    

 

Exhibit B

 

Registration Rights Agreement

 

     

     

    

   

REGISTRATION
RIGHTS AGREEMENT

 

REGISTRATION RIGHTS AGREEMENT
(this “Agreement”), dated as of August 31, 2018, by and among Applied DNA Sciences, Inc., a Delaware corporation,
with headquarters located at 50 Health Sciences Drive, Stony Brook, New York 11790 (the “Company”), and the
undersigned buyers (each, a “Buyer”, and collectively, the “Buyers”).

 

WHEREAS:

 

A. In connection with the
Securities Purchase Agreement, dated as of August 31, 2018, by and among the Company and the Buyers (the “Securities Purchase
Agreement”), the Company has agreed, upon the terms and subject to the conditions set forth in the Securities Purchase
Agreement, to issue and sell to each Buyer senior secured convertible notes of the Company (the “Notes”), which
may, among other things, be convertible into shares of the Company’s common stock, $0.001 par value per share (the “Common
Stock,” as converted, the “Conversion Shares”) in accordance with the terms of the Notes.

 

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

 

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

 

1.           Definitions.

 

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

 

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

 

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

 

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

 

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

 

    	 	Exhibit B-1	 

     

    

  

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	Exhibit B-2	 

     

    

  

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:

 

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.

 

    	 	Exhibit B-3	 

     

    

  

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.

 

    	 	Exhibit B-4	 

     

    

  

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.

 

    	 	Exhibit B-5	 

     

    

  

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.

 

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.

 

    	 	Exhibit B-6	 

     

    

  

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.

 

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.

 

    	 	Exhibit B-7	 

     

    

  

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.

 

    	 	Exhibit B-8	 

     

    

  

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.

 

    	 	Exhibit B-9	 

     

    

  

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.

 

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.

 

    	 	Exhibit B-10	 

     

    

  

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.

 

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.

 

    	 	Exhibit B-11	 

     

    

  

11.        Miscellaneous.

 

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

 

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

 

If to the Company:

 

Applied DNA Sciences, Inc.

50 Health Sciences Drive, Suite 113

Stony Brook, New York 11790

Telephone: (631) 240-8800

Attention: Chief Financial Officer

 

With copies to:

 

Pepper Hamilton LLP

620 Eighth Avenue, 37th
Floor

New York, NY 10018

Telephone: (212) 808-2711

Facsimile: (212) 658-9982

Attention: Merrill Kraines, Esq.

 

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

 

    	 	Exhibit B-12	 

     

    

  

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.

 

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.

 

    	 	Exhibit B-13	 

     

    

  

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]

 

    	 	Exhibit B-14	 

     

    

 

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

 

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

 

    	 	Exhibit B-15	 

     

    

  

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

	 	 	 
	 	[BUYERS]:	 
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

    	 	Exhibit B-16	 

     

    

  

SCHEDULE OF
BUYERS

 

	Buyer	 	Buyer’s Address and 

Facsimile Number	 	
        Buyer’s Representative’s 

        Address

        and Facsimile Number

	 	 	 	 	 
	 	 	 	 	 

 

    	 	Exhibit B-17	 

     

    

  

FORM OF NOTICE
OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

American Stock Transfer and Trust Company

Operations Center

6201 15th Ave., Third Floor

Brooklyn, New York 11219

Telephone: (718) 921-8210

Attention: [●]

 

Re: APPLIED DNA SCIENCES,
INC.

 

Ladies and Gentlemen:

 

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

 

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

 

    	 	Exhibit B-18	 

     

    

  

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

 

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

 

    	 	Exhibit B-19	 

     

    

  

SELLING STOCKHOLDERS

 

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

 

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

 

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

 

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

 

    	 	Exhibit B-20	 

     

    

  

PLAN OF DISTRIBUTION

 

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

 

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

 

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

 

		·	in the over-the-counter market;

 

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

 

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

 

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

 

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

 

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

 

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

 

		·	privately negotiated transactions;

 

		·	short sales;

 

		·	sales pursuant to Rule 144;

 

    	 	Exhibit B-21	 

     

    

  

		·	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.

 

    	 	Exhibit B-22	 

     

    

  

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

 

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

 

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

 

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

 

    	 	Exhibit B-23	 

     

    

  

Exhibit C

 

Form of Security Agreement of the Company

 

     

     

    

 

 

Form
of

 

SECURITY
AGREEMENT

 

dated ____________, 2018

 

by

 

the Grantor referred to herein

 

as Grantor

 

to

 

Delaware Trust Company

 

as Collateral Agent

 

     

     

    

 

table of contents

 

	 	 	PAGE
	 	 	 
	Section 1.	Grant of Security	2
	 	 	 
	Section 2.	Security for Obligations	5
	 	 	 
	Section 3.	Grantor Remains Liable	6
	 	 	 
	Section 4.	Delivery and Control of Security Collateral	6
	 	 	 
	Section 5.	Maintaining the Account Collateral	7
	 	 	 
	Section 6.	Representations and Warranties	7
	 	 	 
	Section 7.	Further Assurances	10
	 	 	 
	Section 8.	As to Equipment and Inventory	11
	 	 	 
	Section 9.	As to Books and Records	11
	 	 	 
	Section 10.	Insurance	12
	 	 	 
	Section 11.	Post-Closing Changes; Collections on Assigned Agreements, Receivables and Related Contracts	12
	 	 	 
	Section 12.	As to Intellectual Property Collateral	13
	 	 	 
	Section 13.	Voting Rights; Dividends; Etc.	13
	 	 	 
	Section 14.	As to Letter-of-Credit Rights	14
	 	 	 
	Section 15.	Commercial Tort Claims	15
	 	 	 
	Section 16.	Transfers and Other Liens; Additional Shares	15
	 	 	 
	Section 17.	Collateral Agent Appointed Attorney in Fact	15
	 	 	 
	Section 18.	Collateral Agent May Perform	16
	 	 	 
	Section 19.	The Collateral Agent’s Duties	16
	 	 	 
	Section 20.	Remedies	17
	 	 	 
	Section 21.	Indemnity and Expenses	19
	 	 	 
	Section 22.	Amendments; Waivers; Additional Grantors; Etc.	19
	 	 	 
	Section 23.	Notices, Etc.	20

 

    	 	2	 

     

    

  

	Section 24.	Continuing Security Interest	20
	 	 	 
	Section 25.	Release; Termination.	20
	 	 	 
	Section 26.	Execution in Counterparts	20
	 	 	 
	Section 27.	Governing Law; Jurisdiction; Waiver of Jury Trial, Etc.	21

 

Schedules:

 

	Schedule I	-	Investment Property
	Schedule II	-	Deposit Accounts
	Schedule III	-	Assigned Agreements
	Schedule IV	-	Intellectual Property
	Schedule V	-	Commercial Tort Claims
	Schedule VI	-	Location, Chief Executive Office, Type of Organization, Jurisdiction of Organization and Organizational Identification Number
	Schedule VII	-	Changes in Name, Location, Etc.
	Schedule VIII	-	Locations of Equipment, Inventory and Books and Records
	Schedule IX	-	Letters of Credit
	Schedule X	-	Permitted Liens
	Schedule XI	 	Excluded Assets

 

Exhibits:

 

	Exhibit A	-	Form of Intellectual Property Security Agreement
	Exhibit B	-	Form of IP Security Agreement Supplement

  

    	 	3	 

     

    

 

SECURITY
AGREEMENT

 

SECURITY AGREEMENT (as amended,
supplemented, amended and restated or otherwise modified from time to time, this “Agreement”) dated _____________,
2018 made by APPLIED DNA SCIENCES, INC., a Delaware corporation with headquarters located at 50 Health Sciences Drive, Stony Brook,
New York 11790 (the “Grantor”), in favor of DELAWARE TRUST COMPANY, a Delaware corporation, as collateral agent
(together with any successor collateral agent, in such capacity, the “Collateral Agent”) for the benefit of
the investors listed on the Schedule of Buyers (each a “Buyer” and collectively, the “Buyers”;
the Buyers and the Collateral Agent are collectively, with their successors and assigns, the “Secured Parties”))
set forth in the Securities Purchase Agreement, dated as of August 31, 2018 (as amended, amended and restated, supplemented or
otherwise modified from time to time) and the other Secured Parties (the “Securities Purchase Agreement”).

 

PRELIMINARY STATEMENTS.

 

WHEREAS, the Grantor
and each Buyer are parties to the Securities Purchase Agreement, pursuant to which the Grantor shall be required to sell, and the
Buyers shall purchase or have rights to purchase, on a several and not joint basis the principal amount of the Notes issued pursuant
thereto (as such Notes may be amended, amended and restated, supplemented or otherwise modified from time to time, the “Notes”);
and

 

WHEREAS, it is a condition
precedent to the Buyers purchasing the Notes pursuant to the Securities Purchase Agreement that the Grantor shall have executed
and delivered to the Collateral Agent this Agreement providing for the grant to the Collateral Agent for the benefit of the Secured
Parties of a security interest in all of the personal property of the Grantor to secure all of the Grantor’s Obligations
(as defined below) under the Securities Purchase Agreement, the Notes and the other Transaction Documents; and

 

WHEREAS, the Grantor,
the Buyers and the Collateral Agent are parties to that certain Collateral Agency Agreement dated as of the date hereof (as amended,
supplemented, amended and restated or otherwise modified from time to time, the “Collateral Agency Agreement”);
and

 

WHEREAS, capitalized
terms used herein and not otherwise defined in this Agreement are used in this Agreement as defined in the Securities Purchase
Agreement. Further, unless otherwise defined in this Agreement or in the Securities Purchase Agreement, terms defined in Article
8 or 9 of the UCC (as defined below) are used in this Agreement as such terms are defined in such Article 8 or 9. “UCC”
means the Uniform Commercial Code as in effect from time to time in the State of New York; provided that, if perfection
or the effect of perfection or non-perfection or the priority of the security interest in any Collateral is governed by the Uniform
Commercial Code as in effect in a jurisdiction other than the State of New York, “UCC” means the Uniform Commercial
Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection,
effect of perfection or non-perfection or priority.

 

     

     

    

  

NOW, THEREFORE, in consideration
of the premises and in order to induce the Buyers to purchase the Notes under the Securities Purchase Agreement, the Grantor hereby
agrees with the Collateral Agent for the ratable benefit of the Secured Parties as follows:

 

Section 1.           Grant
of Security. Grantor hereby grants to the Collateral Agent, for the ratable benefit
of the Secured Parties, a security interest in all of Grantor’s tangible and intangible assets, whether real or personal
property, now or hereafter acquired, including without limitation all of Grantor’s right, title and interest in and to the
following (collectively, the “Collateral”):

 

(a)         all
equipment in all of its forms, including, without limitation, all machinery, tools, motor vehicles, vessels, aircraft, furniture
and fixtures, and all parts thereof and all accessions thereto, including, without limitation, computer programs and supporting
information that constitute equipment within the meaning of the UCC (any and all such property being the “Equipment”);

 

(b)         all
inventory in all of its forms, including, without limitation, (i) all raw materials, work in process, finished goods and materials
used or consumed in the manufacture, production, preparation or shipping thereof, (ii) goods in which Grantor has an interest in
mass or a joint or other interest or right of any kind (including, without limitation, goods in which Grantor has an interest or
right as consignee) and (iii) goods that are returned to or repossessed or stopped in transit by Grantor), and all accessions thereto
and products thereof and documents therefor, including, without limitation, computer programs and supporting information that constitute
inventory within the meaning of the UCC (any and all such property being the “Inventory”);

 

(c)         all
accounts (including, without limitation, health-care-insurance receivables), chattel paper (including, without limitation, tangible
chattel paper and electronic chattel paper), instruments (including, without limitation, promissory notes), deposit accounts (other
than Excluded Accounts (defined below)), letter-of-credit rights, general intangibles (including, without limitation, payment intangibles)
and other Obligations of any kind, whether or not arising out of or in connection with the sale or lease of goods or the rendering
of services and whether or not earned by performance, and all rights now or hereafter existing in and to all supporting Obligations
and in and to all security agreements, mortgages, Liens, leases, letters of credit and other contracts securing or otherwise relating
to the foregoing property (any and all of such accounts, chattel paper, instruments, deposit accounts, letter-of-credit rights,
general intangibles and other Obligations, to the extent not referred to in clause (d), (e) or (f) below,
being the “Receivables,” and any and all such supporting Obligations, security agreements, mortgages, Liens,
leases, letters of credit and other contracts being the “Related Contracts”);

 

(d)         the
following (the “Security Collateral”):

 

(i)          the
all of the shares of capital stock of (or other ownership or profit interests in, including partnership, membership or trust interests)
in any entity (“Equity Interests”) listed on Part I of Schedule I (Investment Property)
hereto, and the certificates, if any, representing such additional shares or other Equity Interests, and all dividends, distributions,
return of capital, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect
of or in exchange for any or all of such shares or other Equity Interests and all warrants, rights or options issued thereon or
with respect thereto;

 

    	 	Exhibit C-2	 

     

    

  

(ii)         the
indebtedness listed on Part II of Schedule I (Investment Property) hereto and all additional indebtedness
now or from time to time owed to Grantor (such indebtedness being the “Pledged Debt”) and the instruments, if
any, evidencing such indebtedness, and all interest, cash, instruments and other property from time to time received, receivable
or otherwise distributed in respect of or in exchange for any or all of such indebtedness; and

 

(iii)        all
other investment property (including, without limitation, all (A) securities, whether certificated or uncertificated, (B) security
entitlements, (C) securities accounts, (D) commodity contracts and (E) commodity accounts) in which Grantor has
now, or acquires from time to time hereafter, any right, title or interest in any manner, and the certificates or instruments,
if any, representing or evidencing such investment property, and all dividends, distributions, return of capital, interest, cash,
instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for
any or all of such investment property and all warrants, rights or options issued thereon or with respect thereto;

 

(e)         each
of the agreements listed on Schedule III (Assigned Agreements) attached hereto, in each case as such agreements may
be amended, restated, amended and restated, supplemented or otherwise modified from time to time (collectively, the “Assigned
Agreements”), including, without limitation, (w) all rights of Grantor to receive moneys due and to become due under
or pursuant to the Assigned Agreements, (x) all rights of Grantor to receive proceeds of any insurance, indemnity, warranty
or guaranty with respect to the Assigned Agreements, (y) claims of Grantor for damages arising out of or for breach of or
default under the Assigned Agreements and (z) the right of Grantor to terminate the Assigned Agreements, to perform thereunder
and to compel performance and otherwise exercise all remedies thereunder (all such Collateral being the “Agreement Collateral”);

 

(f)          the
following (collectively, the “Account Collateral”):

 

(i)          the
deposit accounts listed on Schedule II (Deposit Accounts) hereto and all funds and financial assets from time to
time credited thereto (including, without limitation, all cash equivalents), and all certificates and instruments, if any, from
time to time representing or evidencing the Deposit Accounts;

 

(ii)         all
promissory notes, certificates of deposit, checks and other instruments from time to time delivered to or otherwise possessed by
the Collateral Agent for or on behalf of Grantor in substitution for or in addition to any or all of the then existing Account
Collateral; and

 

(iii)        all
interest, dividends, distributions, cash, instruments and other property from time to time received, receivable or otherwise distributed
in respect of or in exchange for any or all of the then existing Account Collateral;

 

    	 	Exhibit C-3	 

     

    

  

(g)         the
following (collectively, the “Intellectual Property Collateral”):

 

(i)          all
patents, patent applications, utility models and statutory invention registrations, all inventions claimed or disclosed therein
and all improvements thereto (“Patents”);

 

(ii)         all
trademarks, service marks, domain names, trade dress, logos, designs, slogans, trade names, business names, corporate names and
other source identifiers, whether registered or unregistered (provided that no security interest shall be granted in United
States intent-to-use trademark applications to the extent that, and solely during the period in which, the grant of a security
interest therein would impair the validity or enforceability of such intent-to-use trademark applications under applicable federal
law), together, in each case, with the goodwill symbolized thereby (“Trademarks”);

 

(iii)        all
copyrights, including, without limitation, copyrights in Computer Software (as hereinafter defined), internet web sites and the
content thereof, whether registered or unregistered (“Copyrights”);

 

(iv)        all
computer software, programs and databases (including, without limitation, source code, object code and all related applications
and data files), firmware and documentation and materials relating thereto, together with any and all maintenance rights, service
rights, programming rights, hosting rights, test rights, improvement rights, renewal rights and indemnification rights and any
substitutions, replacements, improvements, error corrections, updates and new versions of any of the foregoing (“Computer
Software”);

 

(v)         all
confidential and proprietary information, including, without limitation, know-how, trade secrets, manufacturing and production
processes and techniques, inventions, research and development information, databases and data, including, without limitation,
technical data, financial, marketing and business data, pricing and cost information, business and marketing plans and customer
and supplier lists and information (collectively, “Trade Secrets”), and all other intellectual, industrial and
intangible property of any type, including, without limitation, industrial designs and mask works;

 

(vi)        all
registrations and applications for registration for any of the foregoing, including, without limitation, those registrations and
applications for registration set forth in Schedule IV (Intellectual Property) attached hereto, together with all
reissues, divisions, continuations, continuations-in-part, extensions, renewals and reexaminations thereof;

 

(vii)       all
tangible embodiments of the foregoing, all rights in the foregoing provided by international treaties or conventions, all rights
corresponding thereto throughout the world and all other rights of any kind whatsoever of Grantor accruing thereunder or pertaining
thereto;

 

(viii)      all
agreements, permits, consents, orders and franchises relating to the license, development, use or disclosure of any of the foregoing
to which Grantor, now or hereafter, is a party or a beneficiary, including, without limitation, the agreements set forth in Schedule
IV (Intellectual Property) attached hereto, (“IP Agreements”); and

 

    	 	Exhibit C-4	 

     

    

  

(ix)         any
and all claims for damages and injunctive relief for past, present and future infringement, dilution, misappropriation, violation,
misuse or breach with respect to any of the foregoing, with the right, but not the obligation, to sue for and collect, or otherwise
recover, such damages;

 

(h)         the
commercial tort claims described in Schedule V (Commercial Tort Claims) attached hereto (together with any commercial
tort claims as to which the Grantors have complied with the requirements of Section 15, the “Commercial Tort Claims
Collateral”);

 

(i)    
     all books and records (including, without limitation, customer lists, credit files, printouts
and other computer output materials and records) of Grantor pertaining to any of the Collateral; and

 

(j)    
     all proceeds of, collateral for, income, royalties and other payments now or hereafter
due and payable with respect to, and supporting Obligations relating to, any and all of the Collateral (including, without
limitation, proceeds, collateral and supporting Obligations that constitute property of the types described in clauses
(a) through (i) of this Section 1) and, to the extent not otherwise included, all (A) payments under
insurance (whether or not the Collateral Agent is the loss payee thereof), or any indemnity, warranty or guaranty, payable by
reason of loss or damage to or otherwise with respect to any of the foregoing Collateral, and (B) cash;

 

provided that the term “Collateral”
shall at all times exclude all Excluded Assets. “Excluded Assets” means all assets listed on Schedule XI (Excluded
Assets) attached hereto.

 

Section 2.           Security
for Obligations. This Agreement and the Collateral granted hereunder secures, in
the case of Grantor, the payment of all Obligations now or hereafter existing, whether direct or indirect, absolute or contingent,
and whether for principal, reimbursement Obligations, interest, fees, premiums, penalties, indemnifications, contract causes of
action, costs, expenses or otherwise (all such Obligations, the “Secured Obligations”). Without limiting the
generality of the foregoing, this Agreement secures the payment of all amounts that constitute part of the Secured Obligations
and would be owed by Grantor to any Secured Party under the Transaction Documents but for the fact that they are unenforceable
or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving the Grantor. The term “Obligations”
shall mean for so long as the Notes are outstanding the payment by the Company, as and when due and payable (by scheduled maturity,
required prepayment, acceleration, demand or otherwise), of all amounts from time to time owing by it in respect of the Securities
Purchase Agreement, the Notes, the Collateral Agency Agreement and the other Transaction Documents, including, without limitation,
(A) all principal of and interest on the Notes (including, without limitation, all interest that accrues after the commencement
of any insolvency proceeding of the Grantor, whether or not the payment of such interest is unenforceable or is not allowable
due to the existence of such insolvency proceeding), and (B) all fees, commissions, expense reimbursements, indemnifications and
all other amounts due or to become due under any of the Transaction Documents.

 

    	 	Exhibit C-5	 

     

    

 

Section 3.            Grantor
Remains Liable. Anything herein to the contrary notwithstanding, (a) Grantor shall
remain liable under the contracts and agreements included in the Collateral to the extent set forth therein to perform all of
its duties and Obligations thereunder to the same extent as if this Agreement had not been executed, (b) the exercise by the Collateral
Agent of any of the rights hereunder shall not release Grantor from any of its duties or Obligations under the contracts and agreements
included in the Collateral and (c) no Secured Party shall have any obligation or liability under the contracts and agreements
included in the Collateral by reason of this Agreement or any other Transaction Document, nor shall any Secured Party be obligated
to perform any of the Secured Obligations or duties of any Grantor thereunder or to take any action to collect or enforce any
claim for payment assigned hereunder.

 

Section 4.            Delivery
and Control of Security Collateral.

 

(a)         All
certificates or instruments representing or evidencing Security Collateral shall be delivered to and held by or on behalf of the
Collateral Agent pursuant hereto and shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed
instruments of transfer or assignment in blank, all in form and substance reasonably satisfactory to the Secured Parties. The Collateral
Agent shall have the right at any time to exchange certificates or instruments representing or evidencing Security Collateral for
certificates or instruments of smaller or larger denominations.

 

(b)         With
respect to any Security Collateral that constitutes an uncertificated security, the Grantor will cause the issuer either (i) to
register the Collateral Agent as the registered owner of such security or (ii) to agree with Grantor and the Collateral Agent that
such issuer will comply with instructions with respect to such security originated by the Collateral Agent without further consent
of Grantor, such agreement to be in form and substance reasonably satisfactory to the Secured Parties (such agreement being an
“Uncertificated Security Control Agreement”).

 

(c)         With
respect to any Security Collateral that constitutes a security entitlement as to which the financial institution acting as Collateral
Agent hereunder is not the securities intermediary, Grantor will cause the securities intermediary with respect to such security
entitlement either (i) to identify in its records the Collateral Agent as the entitlement holder thereof or (ii) to agree
with Grantor and the Collateral Agent that such securities intermediary will comply with entitlement orders originated by the Collateral
Agent without further consent of Grantor, such agreement to be in form and substance reasonably satisfactory to the Secured Parties
(a “Securities Account Control Agreement”).

 

(d)         The
Collateral Agent shall have the right, at any time and without notice to any Grantor, to endorse, assign or otherwise transfer
to or to register in the name of the Collateral Agent or any of its nominees or endorse for negotiation any or all of the Security
Collateral, without any indication that such Security Collateral is subject to the security interest hereunder, subject only to
the revocable rights specified in Section 13(a).

 

(e)         Upon
the request of the Collateral Agent, Grantor will notify each issuer of Security Collateral granted by it hereunder that such Security
Collateral is subject to the security interest granted hereunder.

 

    	 	Exhibit C-6	 

     

    

  

Section 5.           Maintaining
the Account Collateral. So long as the Secured Obligations remain outstanding and
unpaid:

 

(a)         Grantor
will maintain deposit accounts only with a bank or other depository institution (a “Pledged Account Bank”) that
has agreed (or will agree) with Grantor and the Collateral Agent to comply with instructions originated by the Collateral Agent
directing the disposition of funds in such deposit account without the further consent of Grantor, such agreement to be in form
and substance reasonably satisfactory to the Secured Parties (a “Deposit Account Control Agreement”). As a condition
to the establishment and maintenance of deposit accounts with any such bank or other depository institution, Grantor shall have
entered into a Deposit Account Control Agreement with such Pledged Account Bank, except with respect to Excluded Accounts (defined
below).

 

(b)         The
Collateral Agent may, without notice to, or consent from, Grantor, give such instructions, transfer, or direct the transfer of,
funds from the Deposit Accounts, to satisfy the Secured Obligations under the Transaction Documents only if an Event of Default
shall have occurred and be continuing.

 

(c)         For
the purposes hereof, “Excluded Accounts” means (a) any deposit account that is used solely for escrow, tax,
tax withholding, payment of payroll, bonuses, other compensation and related expenses and (b) any accounts held outside of the
United States of America.

 

Section
6.             Representations and Warranties.
Grantor represents and warrants as follows:

 

(a)         As
of the Effective Date, Grantor’s exact legal name, location of chief executive office, type of organization, jurisdiction
of organization and organizational identification number (if any) are set forth in Schedule VI (Location, Chief
Executive Office, Type of Organization, Jurisdiction of Organization and Organizational Identification Number); attached hereto.
Grantor has no trade names other than as listed on Schedule VI (Location, Chief Executive Office, Type of Organization,
Jurisdiction of Organization and Organizational Identification Number) attached hereto. Within the five years preceding the
Effective Date, Grantor has not changed its name, location of its chief executive office, type of organization, jurisdiction of
organization or organizational identification number from those set forth in Schedule VI (Location, Chief Executive
Office, Type of Organization, Jurisdiction of Organization and Organizational Identification Number) attached hereto except
as set forth in Schedule VII (Changes in Name, Location, Etc.) attached hereto.

 

(b)         Grantor
is the legal and beneficial owner of the Collateral granted or purported to be granted by it free and clear of any Lien, claim,
option or right of others, except for the security interest created under this Agreement or permitted hereunder and listed on Schedule
X (Permitted Liens). No effective financing statement or other instrument similar in effect covering all or any part
of such Collateral or listing Grantor or any trade name of Grantor as debtor is on file in any recording office, except such as
may have been filed in favor of the Collateral Agent relating to the Transaction Documents or as otherwise permitted under the
Securities Purchase Agreement.

 

    	 	Exhibit C-7	 

     

    

  

(c)         All
of the Equipment and Inventory of Grantor is located at the places specified therefor in Schedule VIII (Locations of
Equipment, Inventory and Books and Records) attached hereto or at another location as to which Grantor has complied with the
requirements of Section 8(a). Grantor has exclusive possession and control of its Equipment and Inventory.

 

(d)         All
books and records related to the Collateral are located at the places specified therefor in Schedule VIII (Locations
of Equipment, Inventory and Books and Records) attached hereto. Grantor agrees to obtain a lien waiver and access agreement
in favor of the Collateral Agent, in form and substance reasonably satisfactory to the Secured Parties, with respect to each location
in which any books and records are stored. Grantor further agrees to deliver a fully-executed copy of such lien waiver and access
agreement to the Collateral Agent prior to the delivery of such books and records to any other location.

 

(e)         None
of the Receivables or Agreement Collateral is evidenced by a promissory note or other instrument that has not been delivered to
the Collateral Agent.

 

(f)          If
Grantor is an issuer of Security Collateral, Grantor confirms that it has received notice of the security interest granted hereunder.

 

(g)         The
Pledged Equity pledged by Grantor hereunder (if any) has been duly authorized and validly issued and is fully paid and non-assessable.
The Pledged Debt issued by Grantor and pledged by another Grantor hereunder has been duly authorized, authenticated or issued and
delivered, is the valid and legally binding obligation of the issuers thereof and is evidenced by one or more promissory notes
(which promissory notes have been delivered to the Collateral Agent).

 

(h)         The
Pledged Equity pledged by Grantor constitutes the percentage of the issued and outstanding Equity Interests of the issuers thereof
indicated on Part I of Schedule I (Investment Property) attached hereto. The Pledged Debt constitutes all
of the outstanding indebtedness owed to Grantor by the issuers thereof and is outstanding in the principal amount indicated, Part
II of Schedule I (Investment Property) attached hereto, as of the date hereof and is not in default.

 

(i)          Grantor
has no investment property, other than the investment property listed on Schedule I (Pledged Equity; Pledged Debt; Investment
Property).

 

(j)          Grantor
shall use best efforts to deliver to the Collateral Agent a consent in form and substance reasonably satisfactory to the Secured
Parties from each party to the Assigned Agreements to which the Borrower is a party to the grant of a security interest in such
Assigned Agreement pursuant to this Agreement (which by its terms does not require any such consent or for which a consent was
previously obtained).

 

(k)         Grantor
has no deposit accounts other than the Deposit Accounts listed on Schedule II (Deposit Accounts) attached hereto,
Excluded Accounts and additional deposit accounts as to which Grantor has complied (or as the case may be, will comply) with the
applicable requirements of Section 5.

 

    	 	Exhibit C-8	 

     

    

  

(l)          Grantor
is not a beneficiary or assignee under any letter of credit, other than the letters of credit described in Schedule IX (Letters
of Credit) attached hereto and additional letters of credit as to which Grantor has complied with the requirements of Section
14.

 

(m)        This
Agreement creates in favor of the Collateral Agent for the benefit of the Secured Parties a valid first priority security interest
in the Collateral granted by Grantor, securing the payment of the Secured Obligations; such security interest is subject in priority
only to the Permitted Liens and the recording of all filings and other actions (including, without limitation, (A) actions necessary
to obtain control of Collateral as provided in Sections 9-104, 9-105, 9-106 and 9-107 of the UCC and (B) actions necessary to perfect
the Collateral Agent’s security interest with respect to Collateral evidenced by a certificate of title) necessary to perfect
the security interest in the Collateral granted by Grantor have been duly made or taken and are in full force and effect on and
after the date hereof.

 

(n)         No
authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body or
any other third party is required for (i) the grant by Grantor of the security interest granted hereunder or for the execution,
delivery or performance of this Agreement by Grantor, (ii) the perfection or maintenance of the security interest created
hereunder (including the first priority nature of such security interest), except for the filing of financing and continuation
statements under the UCC, which financing statements shall have been duly filed within 45 days of the Closing, as defined in the
Securities Purchase Agreement and, upon filing, shall be in full force and effect, the recordation of the Intellectual Property
Security Agreements referred to in Section 12(c) with the U.S. Patent and Trademark Office and the U.S. Copyright Office,
and the actions described in Section 4 with respect to the Security Collateral, which actions have been taken and are in
full force and effect, or (iii) the exercise by the Collateral Agent of its voting or other rights provided for in this Agreement
or the remedies in respect of the Collateral pursuant to this Agreement, except as may be required in connection with the disposition
of any portion of the Security Collateral by laws affecting the offering and sale of securities generally.

 

(o)         The
Inventory that has been produced or distributed by Grantor has been produced in material compliance with all requirements of applicable
law.

 

(p)         As
to itself and its Intellectual Property Collateral:

 

(i)          The
operation of Grantor’s business as currently conducted or as contemplated to be conducted and the use of the Intellectual
Property Collateral in connection therewith, to the best of Grantor’s knowledge, do not conflict with, infringe, misappropriate,
dilute, misuse or otherwise violate the intellectual property rights of any third party.

 

(ii)         Grantor
is the exclusive owner of all right, title and interest in and to the Intellectual Property Collateral, and is entitled to use
all Intellectual Property Collateral subject only to the terms of the IP Agreements.

 

    	 	Exhibit C-9	 

     

    

 

(iii)        The
Intellectual Property Collateral set forth on Schedule IV (Intellectual Property) attached hereto includes all of
the patents, patent applications, domain names, trademark registrations and applications, copyright registrations and applications
and IP Agreements owned by Grantor as of the date hereof.

 

(iv)        The
Intellectual Property Collateral is subsisting and has not been adjudged invalid or unenforceable in whole or in part, and to the
best of Grantor’s knowledge, is valid and enforceable. Grantor is not aware of any uses of any item of Intellectual Property
Collateral that could be expected to lead to such item becoming invalid or unenforceable.

 

(v)         The
consummation of the transactions contemplated by the Transaction Documents will not result in the termination or impairment of
any of the Intellectual Property Collateral.

 

(q)          Grantor
has no commercial tort claims other than those listed in Schedule V (Commercial Tort Claims) attached hereto and
additional commercial tort claims as to which Grantor has complied with the requirements of Section 15.

 

Section
7.            Further Assurances.

 

(a)         Grantor
agrees that from time to time, at the expense of Grantor, Grantor will promptly execute and deliver, or otherwise authenticate,
all further instruments and documents, and take all further action that may be necessary or desirable, or that the Collateral Agent
may request, in order to perfect and protect any pledge or security interest granted or purported to be granted by Grantor hereunder
or to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral of Grantor.
Without limiting the generality of the foregoing, Grantor will promptly with respect to Collateral of Grantor: (i) mark conspicuously
each document included in Inventory, each chattel paper included in Receivables, each Related Contract and, at the request of the
Collateral Agent, each of its records pertaining to such Collateral with a legend, in form and substance reasonably satisfactory
to the Secured Parties, indicating that such document, chattel paper, Related Contract, Assigned Agreement or Collateral is subject
to the security interest granted hereby; (ii) if any such Collateral shall be evidenced by a certificate, promissory note or other
instrument or chattel paper, deliver and pledge to the Collateral Agent hereunder such certificate, note or instrument or chattel
paper duly indorsed and accompanied by duly executed instruments of transfer or assignment, all in form and substance reasonably
satisfactory to the Secured Parties; (iii) file such financing or continuation statements, or amendments thereto, and such other
instruments or notices, as may be necessary or desirable, or as the Collateral Agent may request, in order to perfect and preserve
the security interest granted or purported to be granted by Grantor hereunder; (iv) take all action to ensure that the Collateral
Agent’s security interest is noted on any certificate of title related to any Collateral evidenced by a certificate of title;
(v) to cause the relevant depository institutions, banks, financial intermediaries, securities intermediaries and issuers to execute
and deliver such Deposit Account Control Agreements, Uncertificated Security Control Agreements, Securities Account Control Agreements
and other control agreements, as may be necessary or as the Collateral Agent may from time to time require; and (vi) deliver
to the Collateral Agent evidence that all other actions that the Collateral Agent may deem reasonably necessary or desirable in
order to perfect and protect the security interest granted or purported to be granted by Grantor under this Agreement has been
taken.

 

    	 	Exhibit C-10	 

     

    

  

(b)         Grantor
hereby authorizes the Secured Parties to file one or more financing or continuation statements, and amendments thereto, including,
without limitation, one or more financing statements indicating that such financing statements cover all assets or all personal
property (or words of similar effect) of Grantor, regardless of whether any particular asset described in such financing statements
falls within the scope of the UCC or the granting clause of this Agreement. A photocopy or other reproduction of this Agreement
shall be sufficient as a financing statement where permitted by law. Grantor ratifies its authorization for the Secured Parties
to have filed such financing statements, continuation statements or amendments filed prior to the date hereof.

 

(c)         Grantor
will furnish to the Collateral Agent from time to time statements and schedules further identifying and describing the Collateral
of Grantor and such other reports in connection with such Collateral as the Secured Parties may reasonably request, all in reasonable
detail.

 

Section
8.            As to Equipment and Inventory.

 

(a)         Grantor
will keep its Equipment and Inventory (other than Inventory sold in the ordinary course of business and Equipment and Inventory
in transit in the ordinary course of business) at the places therefor specified in Section 6(c) or, upon ten (10) Business
Days’ prior written notice to the Collateral Agent, at such other places designated by Grantor in such notice which shall
be an approved warehouse as to which a lien waiver and access agreement has been obtained in favor of and delivered to the Collateral
Agent, in form and substance reasonably satisfactory to the Secured Parties.

 

(b)         Grantor
will cause its Equipment to be maintained and preserved in the same condition, repair and working order as when new, ordinary wear
and tear excepted, and will forthwith, or in the case of any loss or damage to any of such Equipment as soon as practicable after
the occurrence thereof, make or cause to be made all repairs, replacements and other improvements in connection therewith that
are desirable to such end.

 

(c)         Grantor
will pay promptly when due all property and other taxes, assessments and governmental charges or levies imposed upon, and all claims
(including, without limitation, claims for labor, materials and supplies) against, its Equipment and Inventory. In producing its
Inventory, Grantor will comply, in all material respects, with all requirements of applicable law.

 

Section
9.            As to Books and Records.

 

Grantor will keep its books
and records at the places therefor specified in Section 6(d) or, upon ten (10) Business Days’ prior written notice to
the Collateral Agent, at such other places designated by Grantor in such notice which shall be an Approved Warehouse as to which
a lien waiver and access agreement has been obtained in favor of and delivered to the Collateral Agent, in form and substance reasonably
satisfactory to the Secured Parties.

 

    	 	Exhibit C-11	 

     

    

  

Section
10.          Insurance.

 

Grantor shall maintain
insurance (including property insurance, lender loss payable endorsements, etc.) in such amounts and covering such risks as are
reasonably acceptable to the to the Secured Parties and are usually carried by companies engaged in similar businesses and owning
similar properties in the same general areas in which Grantor operates, including without limitation, insurance on the Collateral.

 

Section 11.         Post-Closing
Changes; Collections on Assigned Agreements, Receivables and Related Contracts.

 

(a)         Grantor
shall not change its name, type of organization, jurisdiction of organization, organizational identification number or location
from those set forth in Section 6(a) of this Agreement without prior written notice to the Collateral Agent. Grantor will
hold and preserve its records relating to the Collateral, including, without limitation, the Assigned Agreements and Related Contracts,
and will permit representatives of the Collateral Agent at any time during normal business hours and upon reasonable notice to
inspect and make abstracts from such records and other documents. If any Grantor does not have an organizational identification
number and later obtains one, it will forthwith notify the Collateral Agent of such organizational identification number.

 

(b)         Except
as otherwise provided in this Section 11, Grantor will continue to collect, at its own expense, all amounts due or to become
due to Grantor under the Assigned Agreements, Receivables and Related Contracts. In connection with such collections, Grantor may
take such action as Grantor may deem necessary or advisable to enforce collection of the Assigned Agreements, Receivables and Related
Contracts; provided, however, that the Collateral Agent shall have the right at any time, upon the occurrence and
during the continuance of an Event of Default, to take any steps it or the other Secured Parties may deem necessary or advisable,
including but not limited to, notifying the obligors under any Assigned Agreements, Receivables and Related Contracts of the assignment
of such Assigned Agreements, Receivables and Related Contracts to the Collateral Agent and directing such obligors to make payment
of all amounts due or to become due to Grantor thereunder directly to the Collateral Agent and, upon such notification and at the
expense of Grantor, to enforce collection of any such Assigned Agreements, Receivables and Related Contracts, to adjust, settle
or compromise the amount or payment thereof, in the same manner and to the same extent as Grantor might have done, and to otherwise
exercise all rights with respect to such Assigned Agreements, Receivables and Related Contracts, including, without limitation,
those set forth set forth in Section 9-607 of the UCC. After receipt by any Grantor of the notice from the Collateral Agent referred
to in the proviso to the preceding sentence, Grantor will not adjust, settle or compromise the amount or payment of any Receivable
or amount due on any Assigned Agreement or Related Contract, release wholly or partly any obligor thereof or allow any credit or
discount thereon. No Grantor will permit or consent to the subordination of its right to payment under any of the Assigned Agreements,
Receivables and Related Contracts to any other indebtedness or Obligations of the obligor thereof.

 

    	 	Exhibit C-12	 

     

    

  

Section 12.          As
to Intellectual Property Collateral.

 

(a)         No
Grantor shall, without the written consent of the Collateral Agent, discontinue use of or otherwise abandon any Intellectual Property
Collateral, or abandon any right to file an application for patent, trademark, or copyright, unless Grantor shall have previously
determined that such use or the pursuit or maintenance of such Intellectual Property Collateral is no longer desirable in the conduct
of Grantor’s business and that the loss thereof could not reasonably be expected to have a Material Adverse Change.

 

(b)         Grantor
shall use proper statutory notice in connection with its use of each item of its Intellectual Property Collateral. Except as permitted
in Section 12(a) above, Grantor shall not do or permit any act or knowingly omit to do any act whereby any of its Intellectual
Property Collateral may lapse or become invalid or unenforceable or placed in the public domain.

 

(c)         With
respect to its Intellectual Property Collateral, Grantor agrees to execute or otherwise authenticate an agreement, in substantially
the form set forth in Exhibit A hereto or otherwise in form and substance reasonably satisfactory to the Secured Parties
(an “Intellectual Property Security Agreement”), for recording the security interest granted hereunder to the
Collateral Agent in such Intellectual Property Collateral with the U.S. Patent and Trademark Office, the U.S. Copyright Office
and any other governmental authorities necessary to perfect the security interest hereunder in such Intellectual Property Collateral.

 

(d)         Grantor
agrees that should it obtain an ownership interest in any item of the type set forth in Section 1(g) that is not on the
date hereof a part of the Intellectual Property Collateral (“After-Acquired Intellectual Property”) (i) the
provisions of this Agreement shall automatically apply thereto, and (ii) any such After-Acquired Intellectual Property and, in
the case of trademarks, the goodwill symbolized thereby, shall automatically become part of the Intellectual Property Collateral
subject to the terms and conditions of this Agreement with respect thereto. Grantor shall give prompt written notice to the Collateral
Agent identifying the After-Acquired Intellectual Property, and Grantor shall execute and deliver to the Collateral Agent with
such written notice, or otherwise authenticate, an agreement substantially in the form of Exhibit B hereto or otherwise
in form and substance reasonably satisfactory to the Secured Parties (an “IP Security Agreement Supplement”)
covering such After-Acquired Intellectual Property, which IP Security Agreement Supplement shall be recorded with the U.S. Patent
and Trademark Office, the U.S. Copyright Office and any other governmental authorities necessary to perfect the security interest
hereunder in such After-Acquired Intellectual Property.

 

Section
13.          Voting Rights; Dividends; Etc..
(a) So long as no Event of Default shall have occurred and be continuing:

 

(i)          Grantor
shall be entitled to exercise any and all voting and other consensual rights pertaining to the Security Collateral of Grantor or
any part thereof for any purpose; provided, however, that Grantor will not exercise or refrain from exercising any
such right if such action would reasonably be expected to have a material adverse effect on the value of the Security Collateral
or any part thereof.

 

    	 	Exhibit C-13	 

     

    

  

(ii)         Grantor
shall be entitled to receive and retain any and all dividends, interest and other distributions paid in respect of the Security
Collateral of Grantor if and to the extent that the payment thereof is not otherwise prohibited by the terms of the Transaction
Documents; provided, however, except as otherwise provided in the Securities Purchase Agreement, any and all dividends,
interest and other distributions paid or payable other than in cash in respect of, and instruments and other property received,
receivable or otherwise distributed in respect of, or in exchange for, any Security Collateral shall be, and shall be forthwith
delivered to the Collateral Agent to hold as, Security Collateral and shall, if received by Grantor, be received in trust for the
benefit of the Collateral Agent, be segregated from the other property or funds of Grantor and be forthwith delivered to the Collateral
Agent as Security Collateral in the same form as so received (with any necessary endorsement).

 

(iii)        The
Collateral Agent will execute and deliver (or cause to be executed and delivered) to Grantor all such proxies and other instruments
as Grantor may reasonably request for the purpose of enabling Grantor to exercise the voting and other rights that it is entitled
to exercise pursuant to paragraph (i) above and to receive the dividends or interest payments that it is authorized to receive
and retain pursuant to paragraph (ii) above.

 

(b)         Upon
the occurrence and during the continuance of an Event of Default:

 

(i)          All
rights of Grantor (x) to exercise or refrain from exercising the voting and other consensual rights that it would otherwise be
entitled to exercise pursuant to Section 13(a)(i) shall, upon notice to Grantor by the Collateral Agent, cease and (y) to
receive the dividends, interest and other distributions that it would otherwise be authorized to receive and retain pursuant to
Section 13(a)(ii) shall automatically cease, and all such rights shall thereupon become vested in the Collateral Agent,
which shall thereupon have the sole right to exercise or refrain from exercising such voting and other consensual rights and to
receive and hold as Security Collateral such dividends, interest and other distributions.

 

(ii)         All
dividends, interest and other distributions that are received by any Grantor contrary to the provisions of paragraph (i) of this
Section 13(b) shall be received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of
Grantor and shall be forthwith paid over to the Collateral Agent as Security Collateral in the same form as so received (with any
necessary endorsement).

 

Section
14.          As to Letter-of-Credit Rights.

 

(a)         Grantor,
by granting a security interest in its Receivables consisting of letter-of-credit rights to the Collateral Agent, intends to (and
hereby does) assign to the Collateral Agent its rights (including its contingent rights) to the proceeds of all Related Contracts
consisting of letters of credit of which it is or hereafter becomes a beneficiary or assignee. Grantor will promptly use commercially
reasonable efforts to cause the issuer of each letter of credit in favor of Grantor and each nominated person (if any) with respect
thereto to consent to such assignment of the proceeds thereof pursuant to a consent in form and substance reasonably satisfactory
to the Secured Parties and deliver written evidence of such consent to the Collateral Agent.

 

    	 	Exhibit C-14	 

     

    

  

(b)         Upon
the occurrence of an Event of Default, Grantor will, promptly upon request by the Collateral Agent, (i) notify (and Grantor hereby
authorizes the Collateral Agent to notify) the issuer and each nominated person with respect to each of the Related Contracts consisting
of letters of credit that the proceeds thereof have been assigned to the Collateral Agent hereunder and any payments due or to
become due in respect thereof are to be made directly to the Collateral Agent or its designee and (ii) arrange for the Collateral
Agent to become the transferee beneficiary of letter of credit.

 

Section 15.  
      Commercial Tort Claims. Grantor will
promptly give notice to the Collateral Agent of any commercial tort claim that may arise after the date hereof and will
immediately execute or otherwise authenticate a supplement to this Agreement, and otherwise take all necessary action, to
subject such commercial tort claim to the first priority security interest created under this Agreement.

 

Section
16.          Transfers and Other Liens; Additional Shares.

 

(a)         Grantor
agrees that it will not (i) sell, assign or otherwise dispose of, or grant any option with respect to, any of the Collateral, other
than sales, assignments and other dispositions of Collateral, and options relating to Collateral, permitted under the terms of
the Securities Purchase Agreement, or (ii) create or suffer to exist any Lien upon or with respect to any of the Collateral of
Grantor except for the pledge, assignment and security interest created under this Agreement and Liens permitted under the Securities
Purchase Agreement.

 

(b)         Grantor
agrees that it will (i) cause each issuer of the Pledged Equity pledged by Grantor not to issue any Equity Interests or other securities
in addition to or in substitution for the Pledged Equity issued by such issuer, except to Grantor, and (ii) pledge hereunder,
immediately upon its acquisition (directly or indirectly) thereof, any and all additional Equity Interests or other securities.

 

Section
17.        Collateral Agent Appointed Attorney in Fact.
Grantor hereby irrevocably appoints the Collateral Agent as attorney in fact, with full authority in the place and stead of
Grantor and in the name of Grantor or otherwise, from time to time, to take any action and to execute any instrument that the
Collateral Agent or the other Secured Parties may deem necessary or advisable to accomplish the purposes of this Agreement,
including, without limitation, upon the occurrence and during the continuance of an Event of Default, to:

 

(a)         obtain
and adjust insurance required to be paid to the Collateral Agent pursuant to, or in accordance with, Section 9,

 

(b)         ask
for, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due
under or in respect of any of the Collateral,

 

(c)         receive,
indorse and collect any drafts or other instruments, documents and chattel paper, in connection with clause (a) or (b)
above, and

 

    	 	Exhibit C-15	 

     

    

 

(d)         file
any claims or take any action or institute any proceedings that the Collateral Agent or the other Secured Parties may deem necessary
or desirable for the collection of any of the Collateral or otherwise to enforce compliance with the terms and conditions of any
Assigned Agreement or the rights of the Collateral Agent with respect to any of the Collateral.

 

Section
18.         Collateral Agent May Perform.
If any Grantor fails to perform any agreement contained herein, the Collateral Agent may, but without any obligation to do so
and without notice, itself perform, or cause performance of, such agreement, and the expenses of the Collateral Agent
incurred in connection therewith shall be payable by Grantor under Section 21.

 

Section
19.          The Collateral Agent’s Duties.

 

(a)         The
powers conferred on the Collateral Agent hereunder are solely to protect the Secured Parties’ interest in the Collateral
and shall not impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession
and the accounting for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any Collateral,
as to ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative
to any Collateral, whether or not any Secured Party has or is deemed to have knowledge of such matters, or as to the taking of
any necessary steps to preserve rights against any parties or any other rights pertaining to any Collateral. The Collateral Agent
shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral in its possession if such Collateral
is accorded treatment substantially equal to that which it accords its own property.

 

(b)         Anything
contained herein to the contrary notwithstanding, the Collateral Agent may from time to time, when the Collateral Agent in its
discretion deems it to be necessary or advisable, appoint one or more subagents (each a “Subagent”) for the
Collateral Agent hereunder with respect to all or any part of the Collateral. In the event that the Collateral Agent so appoints
any Subagent with respect to any Collateral, (i) the assignment and pledge of such Collateral and the security interest granted
in such Collateral by Grantor hereunder shall be deemed for purposes of this Security Agreement to have been made to such Subagent,
in addition to the Collateral Agent, for the ratable benefit of the Secured Parties, as security for the Secured Obligations of
Grantor, (ii) such Subagent shall automatically be vested, in addition to the Collateral Agent, with all rights, powers, privileges,
interests and remedies of the Collateral Agent hereunder with respect to such Collateral, and (iii) the term “Collateral
Agent,” when used herein in relation to any rights, powers, privileges, interests and remedies of the Collateral Agent with
respect to such Collateral, shall include such Subagent; provided, however, that no such Subagent shall be authorized
to take any action with respect to any such Collateral unless and except to the extent expressly authorized in writing by the Collateral
Agent.

 

    	 	Exhibit C-16	 

     

    

  

Section
20.          Remedies. If any Event
of Default shall have occurred and be continuing:

 

(a)         The
Collateral Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise
available to it, all the rights and remedies of a secured party upon default under the UCC (whether or not the UCC applies to the
affected Collateral) and also may: (i) require Grantor to, and Grantor hereby agrees that it will at its expense and upon request
of the Collateral Agent forthwith, to the extent commercially feasible, assemble all or part of the Collateral as directed by the
Collateral Agent and make it available to the Collateral Agent at a place and time to be designated by the Collateral Agent that
is reasonably convenient to both parties; (ii) without notice except as specified below or as otherwise required pursuant to Section
9-611 of the UCC, sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Collateral
Agent’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as are in accordance
with applicable law; (iii) occupy any premises owned or leased by any of the Grantors where the Collateral or any part thereof
is assembled or located for a reasonable period in order to effectuate its rights and remedies hereunder or under law; and (iv) exercise
any and all rights and remedies of any of the Grantors under or in connection with the Collateral, or otherwise in respect of the
Collateral, including, without limitation, (A) any and all rights of Grantor to demand or otherwise require payment of any amount
under, or performance of any provision of, the Assigned Agreements, the Receivables, the Related Contracts and the other Collateral,
(B) withdraw, or cause or direct the withdrawal, of all funds with respect to the Account Collateral and (C) exercise all other
rights and remedies with respect to the Assigned Agreements, the Receivables, the Related Contracts and the other Collateral, including,
without limitation, those set forth in Section 9-607 of the UCC. Grantor agrees that, to the extent notice of sale shall be required
by law, at least ten (10) days’ notice to Grantor of the time and place of any public sale or the time after which any private
sale is to be made shall constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale of Collateral
regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by
announcement at the time and place fixed therefor, and such sale may, without further notice (except as otherwise required by Section
9-611 of the UCC), be made at the time and place to which it was so adjourned.

 

(b)         Any
cash held by or on behalf of the Collateral Agent and all cash proceeds received by or on behalf of the Collateral Agent in respect
of any sale of, collection from, or other realization upon all or any part of the Collateral may, in the discretion of the Collateral
Agent, be held by the Collateral Agent as collateral for the benefit of the Secured Parties against, all or any part of the Secured
Obligations. Any surplus of such cash or cash proceeds held by or on the behalf of the Collateral Agent and remaining after payment
in full of all the Secured Obligations shall be paid over to Grantor or to whomsoever may be lawfully entitled to receive such
surplus.

 

(c)         All
payments received by any Grantor under or in connection with any Assigned Agreement or otherwise in respect of the Collateral shall
be received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of Grantor and shall be forthwith
paid over to the Collateral Agent in the same form as so received (with any necessary endorsement).

 

(d)        [RESERVED].

 

(e)         In
the event of any sale or other disposition of any of the Intellectual Property Collateral of Grantor, the goodwill symbolized by
any Trademarks subject to such sale or other disposition shall be included therein, and Grantor shall supply to the Collateral
Agent or its designee Grantor’s know-how and expertise, and documents and things relating to any Intellectual Property Collateral
subject to such sale or other disposition, and Grantor’s customer lists and other records and documents relating to such
Intellectual Property Collateral and to the manufacture, distribution, advertising and sale of products and services of Grantor.

 

    	 	Exhibit C-17	 

     

    

  

(f)     
   If the Collateral Agent shall exercise its right to sell all or any of the Security Collateral of any
Grantor pursuant to this Section 20, Grantor agrees that, upon request of the Collateral Agent, Grantor will, at its
own expense:

 

(i)          execute
and deliver, and cause each issuer of such Security Collateral contemplated to be sold and the directors and officers thereof to
execute and deliver, all such instruments and documents, and do or cause to be done all such other acts and things, as may be necessary
or, in the opinion of the Collateral Agent, advisable to register such Security Collateral under the provisions of the Securities
Act of 1933 (as amended from time to time, the “Securities Act”), to cause the registration statement relating
thereto to become effective and to remain effective for such period as prospectuses are required by law to be furnished and to
make all amendments and supplements thereto and to the related prospectus that, in the opinion of the Collateral Agent or the other
Secured Parties, are necessary or advisable, all in conformity with the requirements of the Securities Act and the rules and regulations
of the Securities and Exchange Commission applicable thereto;

 

(ii)         use
its best efforts to qualify the Security Collateral under the state securities or “Blue Sky” laws and to obtain all
necessary governmental approvals for the sale of such Security Collateral, as requested by the Collateral Agent;

 

(iii)        cause
each such issuer of such Security Collateral to make available to its security holders, as soon as practicable, an earnings statement
that will satisfy the provisions of Section 11(a) of the Securities Act;

 

(iv)        provide
the Collateral Agent with such other information and projections as may be necessary or, in the opinion of the Collateral Agent
or the other Secured Parties, advisable to enable the Collateral Agent to effect the sale of such Security Collateral upon such
terms as are in accordance with applicable law; and

 

(v)         do
or cause to be done all such other acts and things as may be necessary to make such sale of such Security Collateral or any part
thereof valid and binding and in compliance with applicable law.

 

(g)         The
Collateral Agent is authorized, in connection with any sale of the Security Collateral pursuant to this Section 20, to deliver
or otherwise disclose to any prospective purchaser of the Security Collateral: (i) any registration statement or prospectus, and
all supplements and amendments thereto, prepared pursuant to subsection (f)(i) above; (ii) any information and
projections provided to it pursuant to subsection (f)(iv) above; and (iii) any other information in its possession
relating to such Security Collateral.

 

(h)         Grantor
acknowledges the impossibility of ascertaining the amount of damages that would be suffered by the Secured Parties by reason of
the failure by Grantor to perform any of the covenants contained in subsection (f) above and, consequently, agrees
that, if Grantor shall fail to perform any of such covenants, it will pay, as liquidated damages and not as a penalty, an amount
equal to the value of the Security Collateral on the date the Collateral Agent shall demand compliance with subsection (f)
above.

 

    	 	Exhibit C-18	 

     

    

  

Section
21.          Indemnity and Expenses.

 

(a)         Grantor
agrees to indemnify, defend and save and hold harmless each Secured Party and each of their Affiliates and their Related Parties
(each, an “Indemnified Party”) from and against, and shall pay on demand, any and all claims, damages, losses,
liabilities and expenses (including, without limitation, reasonable fees and expenses of counsel) that may be incurred by or asserted
or awarded against any Indemnified Party, in each case arising out of or in connection with or resulting from this Agreement (including,
without limitation, enforcement of this Agreement); provided that such indemnity shall not, as to any Indemnified Party,
be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court
of competent jurisdiction by final and nonappealable judgment to have resulted from the bad faith, gross negligence or willful
misconduct of such Indemnified Party or any of its officers, directors or employees, or (y) arising from disputes solely among
the Collateral Agent, the Buyers and/or their transferees (other than in respect of disputes against an Indemnitee in its capacity
as Collateral Agent or any similar role under the Transaction Documents).

 

(b)         Without
limiting the foregoing clause (a), Grantor will upon demand pay to the Collateral Agent the amount of any and all (1) reasonable
expenses, including, without limitation, the reasonable fees and expenses of its counsel and of any experts and agents, that the
Collateral Agent may incur in connection with (i) the administration of this Agreement, and (ii) the custody, preservation,
use or operation of, or the sale of, collection from or other realization upon, any of the Collateral of Grantor, and (2) expenses,
including, without limitation, the fees and expenses of its counsel and of any experts and agents, that the Collateral Agent may
incur in connection with (i) the exercise or enforcement of any of the rights of the Collateral Agent or the other Secured Parties
hereunder or (ii) the failure by Grantor to perform or observe any of the provisions hereof.

 

Section
22.         Amendments; Waivers; Additional Grantors; Etc. No
amendment or waiver of any provision of this Agreement, and no consent to any departure by any Grantor herefrom, shall in any
event be effective unless the same shall be in writing and signed by the Collateral Agent, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose for which given. No failure on the part of the
Collateral Agent to exercise, and no delay in exercising any right hereunder, shall operate as a waiver thereof; nor shall
any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other
right.

 

    	 	Exhibit C-19	 

     

    

  

Section
23.          Notices, Etc. Except
as otherwise provided herein, whenever it is provided herein that any notice, demand, request, consent, approval, declaration
or other communication shall or may be given to or served upon any of the parties by any other party, or whenever any of the
parties desires to give and serve upon any other party any communication with respect to this Agreement, each such notice,
demand, request, consent, approval, declaration or other communication shall be in writing and shall be given in the manner
and to the address, and deemed received, as provided for in accordance with the terms of the Collateral Agency Agreement.
Delivery by email or facsimile of an executed counterpart of any amendment, supplement or waiver of any provision of this
Agreement or any Schedule or Exhibit relating thereto shall be effective as delivery of an original executed counterpart
thereof.

 

Section
24.          Continuing Security Interest.
This Agreement shall create a continuing security interest in the Collateral and shall (a) remain in full force and effect
until the indefeasible payment in full in cash of the Secured Obligations, (b) be binding upon Grantor, its successors and
assigns and (c) inure, together with the rights and remedies of the Collateral Agent hereunder, to the benefit of the
Secured Parties and their respective successors, transferees and assigns.

 

Section
25.          Release; Termination.

 

(a)         Upon
any sale, lease, transfer or other disposition of any item of Collateral of Grantor (other than sales of Inventory in the ordinary
course of business) in accordance with the terms of the Transaction Documents, the Collateral Agent will, at Grantor’s expense,
execute and deliver to Grantor such documents as Grantor shall reasonably request to evidence the release of such item(s) of Collateral
from the assignment and security interest granted hereby; provided, however, that (i) at the time of such request
and such release no Event of Default shall have occurred and be continuing, (ii) Grantor shall have delivered to the Collateral
Agent, at least ten (10) Business Days prior to the date of the proposed release, a written request for release describing
the item of Collateral and the terms of the sale, lease, transfer or other disposition in reasonable detail, including, without
limitation, the price thereof and any expenses in connection therewith, together with a form of release for execution by the Collateral
Agent and a certificate of Grantor to the effect that the transaction is in compliance with the Transaction Documents and as to
such other matters as the Collateral Agent may request, (iii) the proceeds of any such sale, lease, transfer or other disposition
required to be applied, or any payment to be made in connection therewith, shall, to the extent so required, be paid or made to,
or in accordance with the instructions of, the Collateral Agent, and (iv) the Collateral Agent shall have received written direction
from the Buyers in accordance with the Collateral Agency Agreement.

 

(b)         Upon
the indefeasible payment in full in cash of the Secured Obligations, other than any unasserted contingent Obligations, the pledge
and security interest granted hereby shall terminate and all rights to the Collateral shall revert to Grantor. Upon any such termination,
the Secured Parties will, at the Grantor’s expense, execute and deliver to Grantor such documents as Grantor shall reasonably
request to evidence such termination.

 

Section 26.    
    Execution in Counterparts. This Agreement may be executed
in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together
shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by email
or facsimile shall be effective as delivery of an original executed counterpart of this Agreement.

 

    	 	Exhibit C-20	 

     

    

  

Section
27.          Governing Law; Jurisdiction; Waiver of Jury Trial, Etc. 

 

(a)         GOVERNING
LAW. THIS AGREEMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN TORT OR OTHERWISE) BASED ON, ARISING
OUT OF OR RELATING TO THIS GUARANTY AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK
GENERAL OBLIGATIONS LAWS).

 

(b)         SUBMISSION
TO JURISDICTION. GRANTOR IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION
OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF SUCH STATE,
AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR FOR RECOGNITION
OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT
OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE
AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT
SHALL AFFECT ANY RIGHT THAT THE COLLATERAL AGENT OR ANY OTHER SECURED PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT AGAINST ANY GRANTOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

(c)         WAIVER
OF VENUE. GRANTOR IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION
THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
IN ANY COURT REFERRED TO IN PARAGRAPH (b) OF THIS SECTION. GRANTOR HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

(d)         SERVICE
OF PROCESS. GUARANTOR HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 23.

 

    	 	Exhibit C-21	 

     

    

 

(e)         WAIVER
OF JURY TRIAL. GUARANTOR HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT
NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

SIGNATURE PAGE FOLLOWS

 

    	 	Exhibit C-22	 

     

    

 

IN WITNESS WHEREOF, Grantor
has caused this Agreement to be duly executed and delivered by its officer thereunto duly authorized as of the date first above
written.

 

	 	APPLIED DNA SCIENCES, INC.,
	 	a Delaware corporation
	 	 
	 	By:	        
	 	Name:   Beth Jantzen, CPA
	 	Title:     Chief Financial Officer

 

SIGNATURES CONTINUE ON NEXT PAGE

 

Signature
Page to Security Agreement 

 

     

     

    

 

 

	ACCEPTED AND AGREED	 
	as of the date first written above by:	 
	 	 
	DELAWARE TRUST COMPANY,	 
	as Collateral Agent	 
	 	 	 
	By:	          	 
	Name:  	 
	Title:	 

 

Signature
Page to Security Agreement 

 

     

     

    

 

Exhibit A to the

Security Agreement

 

FORM OF INTELLECTUAL
PROPERTY SECURITY AGREEMENT

 

This INTELLECTUAL PROPERTY
SECURITY AGREEMENT (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “IP
Security Agreement”) dated __________, 2018 is made by APPLIED DNA SCIENCES, INC. a Delaware corporation (the “Grantor”),
in favor of DELAWARE TRUST COMPANY, a Delaware corporation, as collateral agent (the “Collateral Agent”) for
the Secured Parties (as defined in the Security Agreement referred to below).

 

WHEREAS, Grantor is party
to the Securities Purchase Agreement dated as of August 31, 2018 (as amended, restated, amended and restated, supplemented or otherwise
modified from time to time, the “Securities Purchase Agreement”) with the Buyers party thereto.

 

WHEREAS, pursuant to the
Securities Purchase Agreement, the Grantor has executed and delivered that certain Security Agreement dated as of the date hereof
made by the Grantor to the Collateral Agent for the benefit of the Secured Parties (as amended, restated, amended and restated,
supplemented or otherwise modified from time to time, the “Security Agreement”; the capitalized terms defined
therein and not otherwise defined herein being used herein as therein defined).

 

WHEREAS, under the terms
of the Security Agreement, the Grantor has granted to the Collateral Agent, for the ratable benefit of the Secured Parties, a security
interest in, among other property, certain intellectual property of the Grantor, and have agreed as a condition thereof to execute
this IP Security Agreement for recording with the U.S. Patent and Trademark Office, the United States Copyright Office and other
governmental authorities.

 

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

 

SECTION 1. Grant of Security.
Grantor hereby grants to the Collateral Agent for the ratable benefit of the Secured Parties a security interest in all of Grantor’s
right, title and interest in and to the following (the “Collateral”):

 

(i)          all
patents, patent applications, utility models and statutory invention registrations, all inventions claimed or disclosed therein
and all improvements thereto, including, without limitation, those set forth in Schedule A hereto (the “Patents”);

 

(ii)         all
trademarks, service marks, domain names, trade dress, logos, designs, slogans, trade names, business names, corporate names and
other source identifiers, whether registered or unregistered (provided that no security interest shall be granted in United States
intent-to-use trademark applications to the extent that, and solely during the period in which, the grant of a security interest
therein would impair the validity or enforceability of such intent-to-use trademark applications under applicable federal law),
together, in each case, with the goodwill symbolized thereby, including, without limitation, those set forth in Schedule B
hereto (the “Trademarks”);

 

     

     

    

  

(iii)        all
copyrights, including, without limitation, copyrights in Computer Software (as hereinafter defined), internet web sites and the
content thereof, whether registered or unregistered, including, without limitation, the copyright registrations and applications
and exclusive copyright licenses set forth in Schedule C hereto (the “Copyrights”);

 

(iv)        all
reissues, divisions, continuations, continuations-in-part, extensions, renewals and reexaminations of any of the foregoing, all
rights in the foregoing provided by international treaties or conventions, all rights corresponding thereto throughout the world
and all other rights of any kind whatsoever of Grantor accruing thereunder or pertaining thereto;

 

(v)         any
and all claims for damages and injunctive relief for past, present and future infringement, dilution, misappropriation, violation,
misuse or breach with respect to any of the foregoing, with the right, but not the obligation, to sue for and collect, or otherwise
recover, such damages; and

 

(vi)        any
and all proceeds of, collateral for, income, royalties and other payments now or hereafter due and payable with respect to, and
supporting Obligations (as defined in the Security Agreement) relating to, any and all of the Collateral of or arising from any
of the foregoing.

 

SECTION 2.          Security
for Obligations. The grant of a security interest in the Collateral by Grantor under this IP Security Agreement secures the
payment of all Secured Obligations now or hereafter existing under or in respect of the Transaction Documents, whether direct or
indirect, absolute or contingent, and whether for principal, reimbursement obligations, interest, premiums, penalties, fees, indemnifications,
contract causes of action, costs, expenses or otherwise. Without limiting the generality of the foregoing, this IP Security Agreement
secures, as to Grantor, the payment of all amounts that constitute part of the Secured Obligations and that would be owed by Grantor
to any Secured Party under the Transaction Documents but for the fact that such Secured Obligations are unenforceable or not allowable
due to the existence of a bankruptcy, reorganization or similar proceeding involving Grantor.

 

SECTION 3.         Recordation.
Grantor authorizes and requests that the Register of Copyrights, the Commissioner for Patents and the Commissioner for Trademarks
and any other applicable government officer record this IP Security Agreement.

 

SECTION 4.          Execution
in Counterparts. This IP Security Agreement may be executed in any number of counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

SECTION 5.         Grants,
Rights and Remedies. This IP Security Agreement has been entered into in conjunction with the provisions of the Security Agreement.
Grantor does hereby acknowledge and confirm that the grant of the security interest hereunder to, and the rights and remedies of,
the Collateral Agent with respect to the Collateral are more fully set forth in the Security Agreement, the terms and provisions
of which are incorporated herein by reference as if fully set forth herein.

 

    	 	-2-	 

     

    

 

SECTION 6.          GOVERNING
LAW. THIS IP SECURITY AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO CONFLICTS OF LAWS.

 

[remainder of page intentionally
blank]

 

    	 	-3-	 

     

    

 

IN WITNESS WHEREOF, Grantor
has caused this IP Security Agreement to be duly executed and delivered by its officer thereunto duly authorized as of the date
first above written.

 

	 	APPLIED DNA SCIENCES, INC.
	 	 
	 	By	        
	 	Name:
	 	Title:
	 	 
	 	Address for Notices:
	 	 
	 	 
	 	 

 

     

     

    

 

Exhibit B to the

Security Agreement

 

FORM OF INTELLECTUAL
PROPERTY SECURITY AGREEMENT SUPPLEMENT

 

This INTELLECTUAL PROPERTY
SECURITY AGREEMENT SUPPLEMENT (as amended, restated, amended and restated, supplemented or otherwise modified from time to time,
the “IP Security Agreement Supplement”) dated __________, 20__, is made by APPLIED DNA SCIENCES, INC. a Delaware
corporation (the “Grantors”) in favor of DELAWARE TRUST COMPANY, a Delaware corporation, as collateral agent
(the “Collateral Agent”) for the Secured Parties (as defined in the Security Agreement referred to below).

 

WHEREAS, Grantor is party
to the Securities Purchase Agreement dated as of [August 31], 2018 (as amended, restated, amended and restated, supplemented or
otherwise modified from time to time, the “Securities Purchase Agreement”) with the Buyers party thereto.

 

WHEREAS, pursuant to the
Securities Purchase Agreement, the Grantor has executed and delivered that certain Security Agreement dated as of __________, 2018
made by the Grantor to the Collateral Agent for the benefit of the Secured Parties (as amended, restated, amended and restated,
supplemented or otherwise modified from time to time, the “Security Agreement”) and that certain Intellectual
Property Security Agreement dated [insert date of Intellectual Property Security Agreement] made by the Grantor to the Collateral
Agent for the benefit of the Secured Parties (as amended, restated, amended and restated, supplemented or otherwise modified from
time to time, the “IP Security Agreement”; the capitalized terms defined therein and not otherwise defined herein
being used herein as therein defined).

 

WHEREAS, under the terms
of the Security Agreement, the Grantor has granted to the Collateral Agent, for the ratable benefit of the Secured Parties, a security
interest in the Additional Collateral (as defined in Section 1 below) of the Grantor and has agreed as a condition thereof
to execute this IP Security Agreement Supplement for recording with the U.S. Patent and Trademark Office, the United States Copyright
Office and other governmental authorities.

 

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

 

SECTION 1.          Grant
of Security. Each Grantor hereby grants to the Collateral Agent, for the ratable benefit of the Secured Parties, a security
interest in all of such Grantor’s right, title and interest in and to the following (the “Additional Collateral”):

 

(i)          all
patents, patent applications, utility models and statutory invention registrations, all inventions claimed or disclosed therein
and all improvements thereto, including, without limitation, those set forth in Schedule A hereto (the “Patents”);

 

     

     

    

 

(ii)         all
trademarks, service marks, domain names, trade dress, logos, designs, slogans, trade names, business names, corporate names and
other source identifiers, whether registered or unregistered (provided that no security interest shall be granted in United States
intent-to-use trademark applications to the extent that, and solely during the period in which, the grant of a security interest
therein would impair the validity or enforceability of such intent-to-use trademark applications under applicable federal law),
together, in each case, with the goodwill symbolized thereby, including, without limitation, those set forth in Schedule B
hereto (the “Trademarks”);

 

(ii)         all
copyrights, including, without limitation, copyrights in Computer Software (as hereinafter defined), internet web sites and the
content thereof, whether registered or unregistered, including, without limitation, the copyright registrations and applications
and exclusive copyright licenses set forth in Schedule C hereto (the “Copyrights”);

 

(iii)        all
reissues, divisions, continuations, continuations-in-part, extensions, renewals and reexaminations of any of the foregoing, all
rights in the foregoing provided by international treaties or conventions, all rights corresponding thereto throughout the world
and all other rights of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto;

 

(iv)        all
any and all claims for damages and injunctive relief for past, present and future infringement, dilution, misappropriation, violation,
misuse or breach with respect to any of the foregoing, with the right, but not the obligation, to sue for and collect, or otherwise
recover, such damages; and

 

(v)         any
and all proceeds of, collateral for, income, royalties and other payments now or hereafter due and payable with respect to, and
supporting Obligations (as defined in the Security Agreement) relating to, any and all of the foregoing or arising from any of
the foregoing.

 

SECTION 2.          Security
for Obligations. The grant of a security interest in the Additional Collateral by the Grantor under this IP Security Agreement
Supplement secures the payment of all Secured Obligations now or hereafter existing under or in respect of the Loan Documents,
whether direct or indirect, absolute or contingent, and whether for principal, reimbursement Obligations, interest, premiums, penalties,
fees, indemnifications, contract causes of action, costs, expenses or otherwise.

 

SECTION 3.          Recordation.
The Grantor authorizes and requests that the Register of Copyrights, the Commissioner for Patents and the Commissioner for Trademarks
and any other applicable government officer to record this IP Security Agreement Supplement.

 

SECTION 4.          Grants,
Rights and Remedies. This IP Security Agreement Supplement has been entered into in conjunction with the provisions of the
Security Agreement. The Grantor does hereby acknowledge and confirm that the grant of the security interest hereunder to, and the
rights and remedies of, the Collateral Agent with respect to the Additional Collateral are more fully set forth in the Security
Agreement, the terms and provisions of which are incorporated herein by reference as if fully set forth herein.

 

SECTION 5.          GOVERNING
LAW. THIS IP SECURITY AGREEMENT SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS.

 

    	 	-2-	 

     

    

  

IN WITNESS WHEREOF, the Grantor
has caused this IP Security Agreement Supplement to be duly executed and delivered by its officer thereunto duly authorized as
of the date first above written.

 

	 	By	 
	 	 	Name:
	 	 	Title:
	 	 
	 	Address for Notices:
	 	 
	 	 
	 	 

  

    	 	-3-	 

     

    

 

SCHEDULE I

 

Investment Property

 

Part I: None.

 

Part II: None.

 

     

     

    

 

SCHEDULE II

 

Deposit Accounts

 

		·	Bank of America, Operating Account, Account #004831291068

 

		·	Bank of America, Money Market Account, Account #483043680826

 

     

     

    

 

SCHEDULE III

 

Assigned Agreements

 

None.

 

     

     

    

 

SCHEDULE IV

 

Intellectual Property

 

COPYRIGHTS: None.

 

TRADEMARKS:

 

	Docket No.	 	Client Ref 

No.	 	Country	 	 Application 

Date	 	Application

No.	 	 Registration

Date	 	 Registration No.	 	Status
	2542-83	 	 	 	United States	 	12/13/2016	 	87/267,216	 	 	 	 	 	Filed 
	2542-82	 	 	 	United States	 	12/20/2016	 	87/275,103	 	12/12/2017	 	5,356,414	 	Registered
	2542-47	 	8251-61	 	United States	 	06/09/2008	 	77/494,134	 	01/05/2010	 	3,735,415	 	Registered
	2542-75	 	2542-75	 	United States	 	12/09/2016	 	87/263,954	 	05/23/2017	 	5,209,527	 	Registered 
	2542-95	 	 	 	United States 	 	5/16/2017	 	87/451,220	 	 	 	 	 	Filed 
	2542-89	 	 	 	United States 	 	3/6/2017	 	87/360,183	 	10/17/2017	 	5,313,762	 	Registered 
	2542-84	 	 	 	United States 	 	12/23/2016	 	87/279,792	 	08/22/2017	 	5,269,735	 	Registered 
	2542-89A	 	 	 	United States	 	8/16/2017	 	87/571,726	 	 	 	 	 	Filed 

 

PATENTS:

 

	Country	 	Status	 	Application

No.	 	Application

Date	 	Title	 	Patent No.	 	Grant Date
	United States	 	Granted	 	12/384,554	 	04/06/2009	 	METHOD FOR A CONTINUOUS RAPID THERMAL CYCLE SYSTEM 	 	8,163,489	 	04/24/2012

 

 

     

     

    

 

SCHEDULE V

 

Commercial Tort Claims

 

None.

 

     

     

    

 

SCHEDULE VI

 

Location of Chief Executive Office, Type of
Organization, Jurisdiction of Organization and 

Organizational Identification Number

 

		·	Location of Chief Executive Office: 50 Health Sciences Drive, Stony Brook, NY 11790

 

		·	Type of Organization: Corporation

 

		·	Jurisdiction of Organization: Delaware

 

		·	Organization Identification Number: 59-2262718

 

     

     

    

 

SCHEDULE VII

 

Changes in Name, Location, Etc.

 

None.

 

     

     

    

 

SCHEDULE VIII

 

Locations of Equipment, Inventory and Books
and Records

 

		·	50 Health Sciences Drive, Stony Brook, NY 11790

 

     

     

    

 

SCHEDULE IX

 

Letters of Credit

 

None.

 

     

     

    

 

SCHEDULE X

 

Permitted Liens

 

None.

 

     

     

    

 

SCHEDULE XI

 

Excluded Assets

 

		·	the Equity Interests in Applied DNA Sciences India Private Limited, a corporation formed under the
laws of India, owned by the Grantor;

 

		·	the Equity Interests in APDN (B.V.I.) Inc., a corporation formed under the laws of the British Virgin
Islands, owned by the Grantor; and

 

		·	all Excluded Accounts.

 

     

     

    

  

Exhibit D

 

TRANSFER
AGENT INSTRUCTIONS

APPLIED DNA SCIENCES, INC.

 

August 31, 2018

 

American Stock Transfer and Trust Company, LLC

Operations Center

6201 15th Avenue, Third Floor

Brooklyn, NY 11219

Attention: [●]

 

Ladies and Gentlemen:

 

Reference is made to that certain Securities
Purchase Agreement, dated as of August 31, 2018 (the “Agreement”), by and among Applied DNA Sciences, Inc.,
a Delaware corporation (the “Company”), and the investors listed on the Schedule of Buyers attached thereto
(collectively, the “Buyers”), pursuant to which the Company is issuing to the Buyers secured convertible notes
of the Company (the “Notes”), which will be convertible into shares of the Company’s common stock, $0.001
par value per share (the “Common Stock”). The shares of Common Stock to be converted thereunder are referred
to herein as the “Conversion Shares.”

 

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

 

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

 

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

 

    	 	Exhibit D-1	 

     

    

 

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

 

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

 

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

 

	 	Very truly yours,
	 	 
	 	APPLIED DNA SCIENCES, INC.

 

	 	By:	 
	 	 	Name: Beth Jantzen
	 	 	Title: Chief Financial Officer

 

    	 	Exhibit D-2	 

     

    

 

THE FOREGOING INSTRUCTIONS ARE

ACKNOWLEDGED AND AGREED TO

this 31st day of August, 2018

AMERICAN STOCK TRANSFER AND TRUST COMPANY,
LLC

 

	By:	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 

 

Enclosures

 

    	 	Exhibit D-3	 

     

    

 

EXHIBIT I

 

APPLIED
DNA SCIENCES, INC.

CONVERSION NOTICE

 

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

 

	 	Date of Conversion:	 

 

	 	Aggregate Conversion Amount to be converted:	 

 

Please confirm the following information:

 

	 	Conversion Price:	 

 

	 	Number of shares of Common Stock to be issued:	 

 

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

 

	 	Issue to:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

	 	Facsimile Number:	 

 

	 	Authorization:	 

 

	 	By:	 
	 	 	 
	 	Title:	 

 

	 	Dated:	 

 

	 	Account Number:	 
	 	(if electronic book entry transfer)

 

	 	Transaction Code Number:	 
	 	(if electronic book entry transfer)

 

    	 	Exhibit I-1	 

     

    

 

ACKNOWLEDGMENT

 

The Company hereby acknowledges this Conversion
Notice and hereby directs American Stock Transfer and Trust Company, LLC to issue the above indicated number of shares of Common
Stock in accordance with the Transfer Agent Instructions dated August 31, 2018 from the Company and acknowledged and agreed to
by American Stock Transfer and Trust Company, LLC.

 

	 	APPLIED DNA SCIENCES, INC

 

	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

EXHIBIT II

 

FORM OF
NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

American Stock Transfer and Trust Company, LLC

Operations Center

6201 15th Avenue, Third Floor

Brooklyn, NY 11219

Telephone: (718) 921-8210

Attention: [●]

 

Re: Applied DNA Sciences, Inc.

 

Ladies and Gentlemen:

 

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

 

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

 

    	 	Exhibit II-1	 

     

    

 

This letter shall serve as our standing
instruction to you that the shares of Common Stock are freely transferable by the Holders pursuant to the Registration Statement.
You need not require further letters from us to effect any future legend-free issuance or reissuance of shares of Common Stock
to the Holders as contemplated by the Company’s Irrevocable Transfer Agent Instructions dated August 31, 2018, provided
at the time of such reissuance, the Company has not otherwise notified you that the Registration Statement is unavailable for
the resale of the Registrable Securities.

 

	 	Very truly yours,
	 	 
	 	[ISSUER’S COUNSEL]

 

	 	By:	 

 

	cc: [LIST NAMES OF BUYERS]

 

    	 	Exhibit II-2

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