Document:

Exhibit 10.1

  

FORM OF DECEMBER 2018 AMENDMENT AND
EXCHANGE AGREEMENT

 

This Amendment and Exchange
Agreement (the “Agreement”) is entered into as of the __ day of December, 2018, by and between Helios and Matheson
Analytics Inc., a Delaware corporation with offices located at Empire State Building, 350 5th Avenue, New York, New York 10118
(the “Company”) and the investor signatory hereto (the “Holder”), with reference to the following
facts:

 

A. On
November 6, 2017, the Company and certain investors, including the Holder (each, a “November Buyer”) entered
into a securities purchase agreement (the “November Securities Purchase Agreement”), pursuant to which such
November Buyers purchased, among other things, certain Notes (as defined in the November Securities Purchase Agreement) (the “November
Notes”) for cash and certain promissory notes, each issued by a November Buyer to the Company (the “November
Investor Notes”).  

 

B. On
January 11, 2018, the Company and a certain investor (the “January Buyer”) entered into a securities purchase
agreement (as amended prior to the date hereof, the “January Securities Purchase Agreement”), pursuant to which
such January Buyer purchased, among other things, a certain Note (as defined in the January Securities Purchase Agreement) (the
“January Note”) for cash and a certain promissory note, issued by such January Buyer to the Company (the “January
Investor Note”).  

 

C. As
of the date hereof, the Holder owns a November Note (the “Existing November Note”) with an aggregate principal
amount and accrued and unpaid interest outstanding as set forth on the signature page of the Holder attached hereto (the “Existing
November Note Amount”) and has issued a November Investor Note (the “Existing November Investor Note”)
to the Company with an aggregate principal amount as set forth on the signature page of the Holder attached hereto (the “Existing
November Investor Note Amount”).

 

D. As
of the date hereof, solely if the Holder is a January Buyer, the Holder owns a January Note (the “Existing January Note”)
with an aggregate principal amount and accrued and unpaid interest outstanding as set forth on the signature page of the Holder
attached hereto (the “Existing January Note Amount”) and has issued a January Investor Note (the “Existing
January Investor Note”) to the Company with an aggregate principal amount as set forth on the signature page of the Holder
attached hereto (the “Existing January Investor Note Amount”).

 

     

     

    

 

E. The
Company and the Holder desire (i) pursuant to Section 7(b) of the Existing November Investor Note, to cause an Investor Optional
Netting (as defined in each Existing November Investor Note) (the “November Investor Optional Netting”) to occur
with respect to the entire Existing November Investor Note Amount of each Existing November Investor Note (the “November
Exchange Netting”), such that after giving effect to such November Investor Optional Netting, the Existing November Note
Amount then outstanding shall be reduced by the Existing November Investor Note Amount (such remaining amount, the “November
Remaining Note Amount”), (ii) solely if the Holder is a January Buyer, pursuant to Section 7(b) of the Existing January
Investor Note, to cause an Investor Optional Netting (as defined in each Existing January Investor Note) (the “January
Investor Optional Netting”) to occur with respect to the entire Existing January Investor Note Amount of each Existing
January Investor Note (the “January Exchange Netting”), such that after giving effect to such January Investor
Optional Netting, the Existing January Note Amount then outstanding shall be reduced by the Existing January Investor Note Amount
(such remaining amount, the “January Remaining Note Amount”) and (iii) to exchange (collectively, the “Exchange”,
and together with the Exchange Netting, the “Transactions”) (x) the November Remaining Note Amount of the Existing
November Note for a new Series B Senior Note in the form attached hereto as Exhibit A in such aggregate principal
amount as set forth on the signature page of the Holder attached hereto (the “Exchange November Note”) and (y)
solely if the Holder is a January Buyer, the January Remaining Note Amount of the Existing January Note for a new Series B Senior
Note in the form attached hereto as Exhibit A in such aggregate principal amount as set forth on the signature page
of the Holder attached hereto (the “Exchange January Note”, and together with the Exchange November Note, the
“Exchange Notes”).  The Exchange Notes and this Agreement and such other documents and certificates
related thereto are collectively referred to herein as the “Exchange Documents”.

 

F. The
Exchange is being made in reliance upon the exemption from registration provided by Section 3(a)(9) of the Securities Act
of 1933, as amended (the “Securities Act”).

 

G. Capitalized
terms used but not otherwise defined herein shall have the meanings set forth in the November Securities Purchase Agreement.

 

NOW, THEREFORE, in consideration
of the foregoing premises and the mutual covenants hereinafter contained, the parties hereto agree as follows:

 

1.
Exchange.  

 

1.1 The
Exchange; Exchange Netting.  

 

(a) On
the date hereof, (i) the Holder shall be deemed to have delivered an Investor Optional Netting Election Notice (as defined in the
Existing November Investor Note) to the Company with respect to the entire Existing November Investor Note Amount of the Existing
November Investor Note and the November Exchange Netting shall occur, (ii) solely if the Holder is a January Buyer, the Holder
shall be deemed to have delivered an Investor Optional Netting Election Notice (as defined in the Existing January Investor Note)
to the Company with respect to the entire Existing January Investor Note Amount of the Existing January Investor Note and the January
Exchange Netting shall occur, (iii) the Holder hereby agrees to convey, assign and transfer the November Remaining Note Amount
of the Existing November Note to the Company in exchange for which the Company agrees to issue pursuant to Section 3(a)(9) of the
Securities Act the Exchange November Note and (iv) solely if the Holder is a January Buyer, the Holder hereby agrees to convey,
assign and transfer the January Remaining Note Amount of the Existing January Note to the Company in exchange for which the Company
agrees to issue pursuant to Section 3(a)(9) of the Securities Act the Exchange January Note.

 

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(b)
On the date hereof, in exchange for the November Remaining Note Amount of the Existing November Note, the Company shall deliver
or cause to be delivered to the Holder (or its designee) the Exchange November Note at the address for delivery set forth on the
Schedule of Buyers to the November Securities Purchase Agreement.  On the date hereof, solely if the Holder is a January
Buyer, in exchange for the January Remaining Note Amount of the Existing January Note, the Company shall deliver or cause to be
delivered to the Holder (or its designee) the Exchange January Note at the address for delivery set forth on the Schedule of Buyers
to the January Securities Purchase Agreement.  

 

(c) Upon
the consummation of the November Exchange Netting and the Exchange, the Existing November Note of the Holder and the Existing November
Investor Notes of the Holder shall be automatically cancelled and shall be null and void.  Upon the consummation of the
January Exchange Netting and the Exchange, solely if the Holder is a January Buyer, the Existing January Note of the Holder and
the Existing January Investor Notes of the Holder shall be automatically cancelled and shall be null and void.  

 

(d) On
or prior to the date hereof, the Company shall have obtained all governmental, regulatory or third party consents and approvals,
if any, necessary for the Transactions.

 

1.2 Amendments;
Acknowledgements; Waivers.

 

(a) Ratifications.  Except
as otherwise expressly provided herein, the January Securities Purchase Agreement, the November Securities Purchase Agreement and
each other Transaction Document (as defined in the January Securities Purchase Agreement) and other Transaction Document (as defined
in the November Securities Purchase Agreement), is, and shall continue to be, in full force and effect and is hereby ratified and
confirmed as of their respective dates in all respects, except that on and after the date hereof: (i) all references in the November
Securities Purchase Agreement to “this Agreement”, “hereto”, “hereof”, “hereunder”
or words of like import referring to the November Securities Purchase Agreement shall mean the November Securities Purchase Agreement
as amended by this Agreement, (ii) all references in the other Transaction Documents (as defined in the November Securities Purchase
Agreement), to the “Securities Purchase Agreement”, “thereto”, “thereof”, “thereunder”
or words of like import referring to the November Securities Purchase Agreement shall mean the November Securities Purchase Agreement
as amended by this Agreement, (iii) all references in the January Securities Purchase Agreement to “this Agreement”,
“hereto”, “hereof”, “hereunder” or words of like import referring to the January Securities
Purchase Agreement shall mean the January Securities Purchase Agreement as amended by this Agreement, and (iv) all references in
the other Transaction Documents (as defined in the January Securities Purchase Agreement), to the “Securities Purchase Agreement”,
“thereto”, “thereof”, “thereunder” or words of like import referring to the January Securities
Purchase Agreement shall mean the January Securities Purchase Agreement as amended by this Agreement.  

 

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(b) Amendments
to November Transaction Documents.  Effective as of the date hereof, the November Securities Purchase Agreement and
each of the Transaction Documents (as defined in the November Securities Purchase Agreement) are hereby amended as follows:

 

(i) The defined
term “Notes” is hereby amended to include Exchange November Note.  

 

(ii) The defined
term “Transaction Documents” shall be amended to include this Agreement.

 

(c) Amendments
to January Transaction Documents.  Effective as of the date hereof, solely to the extent the Holder is a January
Buyer, the January Securities Purchase Agreement and each of the Transaction Documents (as defined in the January Securities Purchase
Agreement) are hereby amended as follows:

 

(i) The defined
term “Notes” is hereby amended to include Exchange January Note.  

 

(ii) The defined
term “Transaction Documents” shall be amended to include this Agreement.

 

(d) Consents
and Waivers.  Effective simultaneously with the consummation of the Exchange, the following shall occur:

 

(i) The
Holder, in its capacity as a November Buyer, hereby consents to the transactions contemplated hereby.  

 

(ii)
The Holder, solely to the extent the Holder is a January Buyer, in its capacity as a January Buyer, hereby consents to the
transactions contemplated hereby.

 

2.
Representations and Warranties.  As of the date hereof:

 

2.1
Organization and Qualification.  Each of the Company and each of its Subsidiaries are entities duly organized
and validly existing and in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power
and authority to own their properties and to carry on their business as now being conducted and as presently proposed to be conducted.  Each
of the Company and each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every
jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary,
except to the extent that the failure to be so qualified or be in good standing would not reasonably be expected to have a Material
Adverse Effect (as defined below).  As used in this Agreement, “Material Adverse Effect” means any
material adverse effect on (i) the business, properties, assets, liabilities, operations (including results thereof), condition
(financial or otherwise) or prospects of the Company or any Subsidiary, individually or taken as a whole, (ii) the transactions
contemplated hereby or in any of the other Exchange Documents or (iii) the authority or ability of the Company or any of its Subsidiaries
to perform any of their respective obligations under any of the Exchange Documents.  Other than the Persons (as defined
below) listed in the SEC Documents, the Company has no Subsidiaries.  “Subsidiaries” means any Person
in which the Company, directly or indirectly, (I) owns any of the outstanding capital stock or holds any equity or similar interest
of such Person or (II) controls or operates all or any part of the business, operations or administration of such Person, and each
of the foregoing, is individually referred to herein as a “Subsidiary;” provided, however, that Subsidiaries
does not include MoviePass Films LLC and its subsidiaries.  For purposes of this Agreement, (x) “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity and any Governmental Entity or any department or agency thereof and (y) “Governmental Entity”
means any nation, state, county, city, town, village, district, or other political jurisdiction of any nature, federal, state,
local, municipal, foreign, or other government, governmental or quasi-governmental authority of any nature (including any governmental
agency, branch, department, official, or entity and any court or other tribunal), multi-national organization or body; or body
exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority
or power of any nature or instrumentality of any of the foregoing, including any entity or enterprise owned or controlled by a
government or a public international organization or any of the foregoing.

 

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2.2
Authorization and Binding Obligation.  The Company has the requisite power and authority to enter into
and perform its obligations under this Agreement and the Exchange Notes and each of the other agreements entered into by the parties
hereto in connection with the transactions contemplated by the Exchange Documents and to consummate the Transactions (including,
without limitation, the issuance of the Exchange Notes in accordance with the terms hereof).  The execution and delivery
of the Exchange Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby,
including, without limitation, the issuance of the Exchange Notes has been duly authorized by the Company’s Board of Directors
and no further filing, consent, or authorization is required by the Company, its Board of Directors or its stockholders.  This
Agreement and the other Exchange Documents have been duly executed and delivered by the Company, and constitute the legal, valid
and binding obligations of the Company, enforceable against the Company in accordance with their respective terms, except as such
enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies
and except as rights to indemnification and to contribution may be limited by federal or state securities laws.  

 

2.3
No Conflict.  The execution, delivery and performance of the Exchange Documents by the Company and the
consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the Transactions
and the issuance of the Exchange Notes) will not (i) result in a violation of the Certificate of Incorporation (as defined below)
or any other organizational documents of the Company or any of its Subsidiaries, any capital stock of the Company or any of its
Subsidiaries or Bylaws (as defined below) of the Company or any of its Subsidiaries, (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 foreign, federal
and state securities laws and regulations and the rules and regulations of the Nasdaq Capital Market (the “Principal Market”)
and including all applicable federal laws, rules and regulations) 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 clause (ii) or (iii)
above, to the extent such violations that would not reasonably be expected to have a Material Adverse Effect.

 

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2.4
No Consents.  Neither the Company nor any Subsidiary is required to obtain any consent from, authorization
or order of, or make any filing or registration with (other than approval by the Principal Market of the exchange of the Exchange
Notes for the Existing November Note and, solely if the Holder is a January Buyer, the Existing January Note (collectively, the
“Existing Notes”)) 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 respective obligations under or contemplated by the Exchange Documents,
in each case, in accordance with the terms hereof or thereof.  All consents, authorizations, orders, filings and registrations
which the Company or any Subsidiary is required to obtain pursuant to the preceding sentence have been obtained or effected on
or prior to the date hereof, and neither the Company nor any of its Subsidiaries are aware of any facts or circumstances which
might prevent the Company or any of its Subsidiaries from obtaining or effecting any of the registration, application or filings
contemplated by the Exchange Documents.

 

2.5
Securities Law Exemptions.  Assuming the accuracy of the representations and warranties of the Holder contained
herein, the offer and issuance by the Company of the Exchange Notes is exempt from registration under the Securities Act pursuant
to the exemption provided by Section 3(a)(9) thereof.  

 

2.6
Issuance of Exchange Notes.  The issuance of the Exchange Notes has been duly authorized and upon issuance
in accordance with the terms of the Exchange Documents shall be validly issued, fully paid and non-assessable and free from all
Liens.

 

2.7
Transfer Taxes.  On the date hereof, all share transfer or other taxes (other than income or similar taxes)
which are required to be paid in connection with the issuance of the Exchange Notes to be exchanged with the Holder hereunder will
be, or will have been, fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied
with.  

 

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2.8
SEC Documents; Financial Statements.  During the two (2) years prior to the date hereof, the Company has
timely filed all reports, schedules, forms, proxy statements, information statements and other documents required to be filed by
it with the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof, including
without limitation, Current Reports on Form 8-K filed by the Company with the SEC whether required to be filed or not (but excluding
Item 7.01 thereunder), and all exhibits and appendices included therein (other than Exhibits 99.1 to Form 8-K) and financial statements,
notes and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the “SEC
Documents”).  The Company has delivered or has made available to the Holder or its representatives true, correct
and complete copies of each of the SEC Documents not available on the EDGAR system.  As of their respective dates, the
SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC
promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC,
contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary
in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.  As
of their respective dates, the financial statements of the Company included in the SEC Documents complied in all material respects
with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto as in effect as
of the time of filing.  Such financial statements have been prepared in accordance with generally accepted accounting
principles (“GAAP”), consistently applied, during the periods involved (except (i) as may be otherwise indicated
in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may
exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position
of the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in
the case of unaudited statements, to normal year-end audit adjustments which will not be material, either individually or in the
aggregate).  No other information provided by or on behalf of the Company to the Holder which is not included in the
SEC Documents (including, without limitation, information in the disclosure schedules to this Agreement) contains any untrue statement
of a material fact or omits to state any material fact necessary in order to make the statements therein not misleading, in the
light of the circumstance under which they are or were made.  The Company is not currently contemplating to amend or
restate in any material respect any of the financial statements (including, without limitation, any notes or any letter of the
independent accountants of the Company with respect thereto) included in the SEC Documents (the “Financial Statements”),
nor is the Company currently aware of facts or circumstances which would require the Company to amend or restate in any material
respect any of the Financial Statements, in each case, in order for any of the Financials Statements to be in compliance with GAAP
and the rules and regulations of the SEC.  The Company has not been informed by its independent accountants that they
recommend that the Company amend or restate in any material respect any of the Financial Statements or that there is any need for
the Company to amend or restate in any material respect any of the Financial Statements.

 

2.9
Absence of Certain Changes.  Since the date of the Company’s most recent financial statements contained
in a Form 10-Q, neither the Company nor any of its Subsidiaries has (i) declared or paid any dividends, (ii) sold any assets, individually
or in the aggregate, outside of the ordinary course of business or (iii) except as disclosed in the SEC Documents, made any capital
expenditures, individually or in the aggregate, outside of the ordinary course of business.  Neither the Company nor
any of its Subsidiaries has taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency,
reorganization, receivership, liquidation or winding up, nor does the Company or any Subsidiary have any knowledge or reason to
believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of
any fact which would reasonably lead a creditor to do so.  

 

2.10
No Undisclosed Events, Liabilities, Developments or Circumstances.  Except as set forth in the SEC Documents,
no event, liability, development or circumstance has occurred or exists, or is reasonably expected to exist or occur with respect
to the Company, any of its Subsidiaries or any of their respective businesses, properties, liabilities, prospects, operations (including
results thereof) or condition (financial or otherwise), that (i) would be required to be disclosed by the Company under applicable
securities laws on a registration statement on Form S-1 filed with the SEC relating to an issuance and sale by the Company of its
Common Stock and which has not been publicly announced, (ii) would reasonably expected to have a material adverse effect on the
Holder’s investment hereunder or (iii) would reasonably be expected to have a Material Adverse Effect.  

 

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2.11
Conduct of Business; Regulatory Permits.  Neither the Company nor any of its Subsidiaries is in violation
of any term of or in default under its Certificate of Incorporation, any certificate of designation, preferences or rights of any
other outstanding series of preferred stock of the Company or any of its Subsidiaries or Bylaws or their organizational charter,
certificate of formation, memorandum of association, articles of association, Certificate of Incorporation or bylaws, respectively.  Except
as set forth in the SEC Documents, neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or order
or any statute, ordinance, rule or regulation applicable to the Company or any of its Subsidiaries, and neither the Company nor
any of its Subsidiaries will conduct its business in violation of any of the foregoing, except in all cases for possible violations
which could not, individually or in the aggregate, have a Material Adverse Effect.  Except as set forth in the SEC Documents,
without limiting the generality of the foregoing, the Company is not in violation of any of the rules, regulations or requirements
of the Principal Market and has no knowledge of any facts or circumstances that could reasonably lead to delisting or suspension
of the Common Stock by the Principal Market in the foreseeable future.  During the two years prior to the date hereof,
(i) the Common Stock has been listed or designated for quotation on the Principal Market, (ii) trading in the Common Stock has
not been suspended by the SEC or the Principal Market and (iii) except as set forth in the SEC Documents, the Company has received
no communication, written or oral, from the SEC or the Principal Market regarding the suspension or delisting of the Common Stock
from the Principal Market.  The Company and each of its Subsidiaries possess all certificates, authorizations and permits
issued by the appropriate regulatory authorities necessary to conduct their respective businesses, except where the failure to
possess such certificates, authorizations or permits would not have, individually or in the aggregate, a Material Adverse Effect,
and neither the Company nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification
of any such certificate, authorization or permit.  There is no agreement, commitment, judgment, injunction, order or
decree binding upon the Company or any of its Subsidiaries or to which the Company or any of its Subsidiaries is a party which
has or would reasonably be expected to have the effect of prohibiting or materially impairing any business practice of the Company
or any of its Subsidiaries, any acquisition of property by the Company or any of its Subsidiaries or the conduct of business by
the Company or any of its Subsidiaries as currently conducted other than such effects, individually or in the aggregate, which
have not had and would not reasonably be expected to have a Material Adverse Effect on the Company or any of its Subsidiaries.  

 

2.12
Transactions With Affiliates.  Except as set forth in the SEC Documents, no current or former employee,
partner, director, officer or stockholder (direct or indirect) of the Company or its Subsidiaries, or any associate, or, to the
knowledge of the Company, any affiliate of any thereof, or any relative with a relationship no more remote than first cousin of
any of the foregoing, is presently, or has ever been, (i) a party to any transaction with the Company or its Subsidiaries (including
any contract, agreement or other arrangement providing for the furnishing of services by, or rental of real or personal property
from, or otherwise requiring payments to, any such director, officer or stockholder or such associate or affiliate or relative
Subsidiaries (other than for ordinary course services as employees, consultants, officers or directors of the Company or any of
its Subsidiaries)) or (ii) the direct or indirect owner of an interest in any corporation, firm, association or business organization
which is a competitor, supplier or customer of the Company or its Subsidiaries (except for a passive investment (direct or indirect)
in less than 5% of the common stock of a company whose securities are traded on or quoted through an Eligible Market (as defined
in the January Note)), nor does any such Person receive income from any source other than the Company or its Subsidiaries which
relates to the business of the Company or its Subsidiaries or should properly accrue to the Company or its Subsidiaries.  No
employee, officer, stockholder or director of the Company or any of its Subsidiaries or member of his or her immediate family is
indebted to the Company or its Subsidiaries, as the case may be, nor is the Company or any of its Subsidiaries indebted (or committed
to make loans or extend or guarantee credit) to any of them, other than (i) for payment of salary for services rendered, (ii) reimbursement
for reasonable expenses incurred on behalf of the Company, and (iii) for other standard employee benefits made generally available
to all employees or executives (including stock option agreements outstanding under any stock option plan approved by the Board
of Directors of the Company).  

 

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2.13
Equity Capitalization.  

 

(a)
Definitions:

 

(i)
“Common Stock” means (x) the Company’s shares of common stock, $0.01 par value per share,
and (y) any capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification
of such common stock.

 

(ii)
“Preferred Stock” means (x) the Company’s blank check preferred stock, $0.01 par value per share,
the terms of which may be designated by the board of directors of the Company in a certificate of designations, (y) the Company’s
Series A Preferred Stock, $0.01 par value per share, and (z) any capital stock into which such preferred stock shall have been
changed or any share capital resulting from a reclassification of such preferred stock (other than a conversion of such preferred
stock into Common Stock in accordance with the terms of such certificate of designations).

 

(b)
Authorized and Outstanding Capital Stock.  As of December 17, 2018, the authorized capital stock of the
Company consists of (A) Five Billion (5,000,000,000) shares of Common Stock, of which, 1,668,207,926 are issued and outstanding
and 2,574,157,579 of which are reserved for issuance pursuant to the Equity Incentive Plan, the Company’s outstanding Convertible
Securities and other obligations of the Company, and (B) Two Million (2,000,000) shares of Preferred Stock, 20,500 shares of which
are designated as Series A Preferred Stock and are issued and outstanding before giving effect to the transactions contemplated
hereby.  No shares of Common Stock are held in the treasury of the Company.  “Convertible Securities”
means any capital stock or other security of the Company or any of its Subsidiaries that is at any time and under any circumstances
directly or indirectly convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire,
any capital stock or other security of the Company (including, without limitation, Common Stock) or any of its Subsidiaries.

 

(c)
Valid Issuance; Available Shares; Affiliates.  All of such outstanding shares are duly authorized and have
been, or upon issuance will be, validly issued and are fully paid and nonassessable.  As of December 17, 2018, there
are 18,254 shares of Common Stock that are owned by Persons who are “affiliates” (as defined in Rule 405 of the 1933
Act and calculated based on the assumption that only officers, directors and holders of at least 10% of the Company’s issued
and outstanding Common Stock are “affiliates” without conceding that any such Persons are “affiliates”
for purposes of federal securities laws) of the Company or any of its Subsidiaries.

 

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(d)
Existing Securities; Obligations.  Except as disclosed in the SEC Documents: (A) none of the Company’s
or any Subsidiary’s shares, interests or capital stock is subject to preemptive rights or any other similar rights or Liens
suffered or permitted by the Company or any Subsidiary; (B) there are no outstanding options, warrants, scrip, rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable
for, any shares, interests or capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings
or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares, interests or
capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments
of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares,
interests or capital stock of the Company or any of its Subsidiaries; (C) there are no agreements or arrangements under which the
Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act; (D) there are
no outstanding securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar provisions,
and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may
become bound to redeem a security of the Company or any of its Subsidiaries; (E) there are no securities or instruments containing
anti-dilution or similar provisions that will be triggered by the issuance of the Exchange Notes; and (F) neither the Company nor
any Subsidiary has any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement.

 

(e)
Organizational Documents.  The Company has furnished to the Buyers true, correct and complete copies of
the Company’s Certificate of Incorporation, as amended and as in effect on the date hereof (the “Certificate of
Incorporation”) and the Company’s bylaws, as amended and as in effect on the date hereof.  (the “Bylaws”).

 

2.14
Indebtedness and Other Contracts.  Neither the Company nor any of its Subsidiaries, (i) except as disclosed
in the SEC Documents or Schedule 3(s) of the January Securities Purchase Agreement, has any outstanding debt securities, notes,
credit agreements, credit facilities or other agreements, documents or instruments evidencing Indebtedness of the Company or any
of its Subsidiaries or by which the Company or any of its Subsidiaries is or may become bound, (ii) is a party to any contract,
agreement or instrument, except as disclosed in the SEC Documents, the violation of which, or default under which, by the other
party(ies) to such contract, agreement or instrument could reasonably be expected to result in a Material Adverse Effect, (iii)
has any financing statements securing obligations in any amounts filed in connection with the Company or any of its Subsidiaries,
except as disclosed in the SEC Documents; (iv) except as waived by the Holder under Section 1.2(c) of this Agreement, is in violation
of any term of, or in default under, any contract, agreement or instrument relating to any Indebtedness, except where such violations
and defaults would not result, individually or in the aggregate, in a Material Adverse Effect, or (v) is a party to any contract,
agreement or instrument relating to any Indebtedness, the performance of which, in the judgment of the Company’s officers,
has or is expected to have a Material Adverse Effect.  Neither the Company nor any of its Subsidiaries have any liabilities
or obligations required to be disclosed in the SEC Documents which are not so disclosed in the SEC Documents, other than those
incurred in the ordinary course of the Company’s or its Subsidiaries’ respective businesses and which, individually
or in the aggregate, do not or could not have a Material Adverse Effect.  The Company has not guaranteed any Indebtedness
of its direct or indirect Subsidiaries (other than such guarantees that are listed on Schedule 2.14 to this Agreement or have been
terminated on or prior to the date hereof).

 

    10

     

    

 

2.15
Litigation.  Except as set forth on Schedule 2.15 hereto, there is no action, suit, arbitration, proceeding,
inquiry or investigation before or by the Principal Market, any court, public board, other Governmental Entity, self-regulatory
organization or body pending or, to the knowledge of the Company, threatened against or affecting the Company or any of its Subsidiaries,
the Common Stock or any of the Company’s or its Subsidiaries’ officers or directors that would reasonably be expected
to have a Material Adverse Effect on the Company or its Subsidiaries, whether of a civil or criminal nature or otherwise, in their
capacities as such, and that would be required to be disclosed under Item 103 of Regulation S-K under the Securities Act and which
has not been publicly announced, except as disclosed in the SEC Documents or in Schedule 3(t) of the January Securities Purchase
Agreement.  No director, officer or employee of the Company or any of its subsidiaries has willfully violated 18 U.S.C.  §1519
or engaged in spoliation in reasonable anticipation of litigation.  Without limitation of the foregoing, there has not
been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company,
any of its Subsidiaries or any current or former director or officer of the Company or any of its Subsidiaries that would be required
to be disclosed under Item 103 of Regulation S-K under the Securities Act and which has not been publicly announced.  The
SEC has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company
under the 1933 Act or the 1934 Act.  Neither the Company nor any of its Subsidiaries is subject to any order, writ, judgment,
injunction, decree, determination or award of any Governmental Entity.  

 

2.16
Disclosure.  The Company confirms that neither it nor any other Person acting on its behalf has provided
the Holder or its agents or counsel with any information that constitutes or would reasonably be expected to constitute material,
non-public information concerning the Company or any of its Subsidiaries, other than the existence of the transactions contemplated
by this Agreement and the other Exchange Documents.  The Company understands and confirms that the Holder will rely on
the foregoing representations in effecting transactions in securities of the Company.  All disclosure provided to the
Holder regarding the Company and its Subsidiaries, their businesses and the transactions contemplated hereby, including the schedules
to this Agreement, furnished by or on behalf of the Company or any of its Subsidiaries is true and correct and does not contain
any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein,
in the light of the circumstances under which they were made, not misleading.  Each press release issued by the Company
or any of its Subsidiaries during the twelve (12) months preceding the date of this Agreement did not at the time of release contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to
make the statements therein, in the light of the circumstances under which they are made, not misleading.  No material
event or circumstance has occurred or material information exists with respect to the Company or any of its Subsidiaries or its
or their business, properties, liabilities, prospects, operations (including results thereof) or conditions (financial or otherwise),
which, under applicable law, rule or regulation, requires public disclosure at or before the date hereof or announcement by the
Company but which has not been so publicly announced or disclosed.  

 

2.17
Commissions. The Company confirms that no commission or other remuneration has been paid or given directly or
indirectly for soliciting the Exchange.

 

    11

     

    

 

3.
Holder’s Representations and Warranties.  As a material inducement to the Company to enter into this
Agreement and consummate the Exchange, the Holder represents, warrants and covenants with and to the Company as follows:

 

3.1
Reliance on Exemptions.  The Holder understands that the Exchange Notes are being offered and exchanged
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 the Holder’s compliance with, the representations, warranties,
agreements, acknowledgments and understandings of the Holder set forth herein and in the Exchange Documents in order to determine
the availability of such exemptions and the eligibility of the Holder to acquire the Exchange Notes.  

 

3.2
No Governmental Review.  The Holder 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 Exchange Notes or the fairness
or suitability of the investment in the Exchange Notes nor have such authorities passed upon or endorsed the merits of the offering
of the Exchange Notes.

 

3.3
Validity; Enforcement.  This Agreement and the Exchange Documents to which the Holder is a party have been
duly and validly authorized, executed and delivered on behalf of the Holder and shall constitute the legal, valid and binding obligations
of the Holder enforceable against the Holder 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 and other similar
laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.  

 

3.4
No Conflicts.  The execution, delivery and performance by the Holder of this Agreement and the Exchange
Documents to which the Holder is a party, and the consummation by the Holder of the transactions contemplated hereby and thereby
will not (i) result in a violation of the organizational documents of the Holder 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 Holder is a party, or (iii) result
in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable
to the Holder, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would
not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Holder to
perform its obligations hereunder.  

 

3.5
Investment Risk; Sophistication.  The Holder is acquiring the Exchange Notes hereunder in the ordinary
course of its business.  The Holder has such knowledge, sophistication, and experience in business and financial matters
so as to be capable of evaluation of the merits and risks of the prospective investment in the Exchange Notes, and has so evaluated
the merits and risk of such investment.  The Holder is an “accredited investor” as defined in Regulation
D under the Securities Act.

 

3.6
Ownership of Existing Notes.  The Holder owns the Existing Notes free and clear of any Liens (other than
the obligations pursuant to this Agreement, liens in the ordinary course of business (e.g.  bone fide margin account
liens) and applicable securities laws).  

 

    12

     

    

 

4.
Disclosure of Transaction.  The Company shall, on or before 8:30 a.m., New York City Time, on or
prior to the first business day after the date of this Agreement, file a Current Report on Form 8-K describing the terms of the
transactions contemplated hereby in the form required by the 1934 Act and attaching the Exchange Documents, to the extent they
are required to be filed under the 1934 Act, that have not previously been filed with the SEC by the Company (including, without
limitation, this Agreement) as exhibits to such filing (including all attachments, the “8-K Filing”).  From
and after the filing of the 8-K Filing, the Company shall have disclosed all material, non-public information (if any) provided
up to such time to the Holder by the Company or any of its Subsidiaries or any of their respective officers, directors, employees
or agents.  In addition, effective upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and
all confidentiality or similar obligations under any agreement with respect to the transactions contemplated by the Exchange Documents
or as otherwise disclosed in the 8-K Filing, whether written or oral, between the Company, any of its Subsidiaries or any of their
respective officers, directors, affiliates, employees or agents, on the one hand, and any of the Holder or any of their affiliates,
on the other hand, shall terminate.  Neither the Company, its Subsidiaries nor the Holder shall issue any press releases
or any other public statements with respect to the transactions contemplated hereby; provided, however,
the Company shall be entitled, without the prior approval of the Holder, to make a press release or other public disclosure with
respect to such transactions (i) in substantial conformity with the 8-K Filing and contemporaneously therewith or (ii) as is required
by applicable law and regulations (provided that in the case of clause (i) the Holder shall be consulted by the Company in connection
with any such press release or other public disclosure prior to its release).  Without the prior written consent of the
Holder (which may be granted or withheld in the Holder’s sole discretion), except as required by applicable law, the Company
shall not (and shall cause each of its Subsidiaries and affiliates to not) disclose the name of the Holder in any filing, announcement,
release or otherwise.  

 

5.
No Integration.  None of the Company, its Subsidiaries, any of their affiliates, or any Person acting
on their behalf shall, directly or indirectly, make any offers or sales of any security (as defined in the Securities Act) or solicit
any offers to buy any security or take any other actions, under circumstances that would require registration of any of the Exchange
Notes under the Securities Act or cause this offering of the Exchange Notes to be integrated with such offering or any prior offerings
by the Company for purposes of Regulation D under the Securities Act.  

 

6.
Fees.  The Company shall promptly reimburse Kelley Drye & Warren, LLP (counsel to the lead investor),
on demand, for all reasonable, documented costs and expenses incurred by it in connection with preparing and delivering this Agreement
(including, without limitation, all reasonable, documented legal fees and disbursements in connection therewith, and due diligence
in connection with the transactions contemplated thereby) in an aggregate amount not to exceed $15,000.  

 

7.
Holding Period.  For the purposes of Rule 144, the Company acknowledges that (a) the holding
period of the Exchange November Note may be tacked onto the holding period of the Existing November Note and (b) the holding period
of the Exchange January Note may be tacked onto the holding period of the Existing January Note, and the Company agrees not to
take a position contrary to this Section 7.

 

8.
Blue Sky.  The Company shall make all filings and reports relating to the Exchange required under
applicable securities or “Blue Sky” laws of the states of the United States following the date hereof, if any.  

 

9.
Miscellaneous Provisions.  Section 9 of the November Securities Purchase Agreements (as amended
hereby) is hereby incorporated by reference herein, mutatis mutandis.

 

[The remainder of the
page is intentionally left blank]

 

    13

     

    

 

IN WITNESS WHEREOF,
Holders and the Company have executed this Agreement as of the date set forth on the first page of this Agreement.

 

	 	COMPANY:
	 	 
	 	HELIOS AND MATHESON ANALYTICS INC.
	 	 
	 	By:	 
	 	 	Name:	Theodore Farnsworth
	 	 	Title:	Chief Executive Officer

 

[Signature
Page to December 2018 Amendment and Exchange Agreement]

 

     

     

    

 

IN WITNESS WHEREOF,
Holders and the Company have executed this Agreement as of the date set forth on the first page of this Agreement.

 

	 	HOLDER:
	 	 
	 	[                  ]
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	Aggregate amount of principal and interest outstanding under Existing November Note:
	 	 
	 	$[                  ]
	 	 
	 	Aggregate amount of principal and interest outstanding under Existing January Note:
	 	 
	 	$[                  ]
	 	 
	 	Aggregate amount of principal outstanding under Existing November Investor Notes:
	 	 
	 	$[                  ]
	 	 
	 	Aggregate amount of principal outstanding under Existing January Investor Note:
	 	 
	 	$[                  ]
	 	 
	 	Aggregate initial principal of Exchange November Note:
	 	 
	 	$[                  ]
	 	 
	 	Aggregate initial principal of Exchange January Note:
	 	 
	 	$[                  ]

 

[Signature
Page to December 2018 Amendment and Exchange Agreement]

 

     

     

    

 

Schedule 2.14

 

Guarantees

 

The Company has guaranteed the following Indebtedness
of MoviePass:

 

		1.	The payment obligations of MoviePass to salesforce.com under that certain Master Subscription Agreement
by and between salesforce.com and MoviePass in the aggregate amount of $860,000.
	 	 	 
		2.	The payment obligations of MoviePass to Zuora, Inc. under that certain Zuora Master Subscription Agreement,
dated July 31, 2018, by and between Zuora, Inc. and MoviePass in the aggregate amount of $500,000.
	 	 	 
		3.	The payment obligations of MoviePass to Worldpay, LLC under that certain Bank Card Merchant Agreement
by and between Worldpay, LLC and MoviePass in the aggregate amount of $1,200,000.

 

     

     

    

 

Schedule 2.15

 

Jackie Tabas and Katherine Rosenberg-Wohl, on behalf of themselves and all others similarly situated v.
MoviePass, Inc., Helios and Matheson Analytics Inc., Ted Farnsworth, Stuart Benson, Mitche Lowe and Does 1-10, in the United States
District Court for the Northern District of California (consumer class action litigation), filed on November 21, 2018.Exhibit 10.39

 

COLLATERAL AGENCY AGREEMENT

 

THIS COLLATERAL AGENCY
AGREEMENT (this “Agreement”) is made effective as of October 19, 2018, between DELAWARE TRUST COMPANY, a Delaware
corporation (the “Collateral Agent”), APPLIED DNA SCIENCES, INC., a Delaware corporation (the “Issuer”),
APDN (B.V.I.) INC., a corporation organized under the laws of the British Virgin Islands (“APDN (B.V.I.”), collectively
with the Issuer, the “Debtors”), and each of the investors listed on Schedule 1 attached hereto (each
a “Buyer” and collectively, the “Buyers”).

 

WITNESSETH:

 

WHEREAS, the Borrower
and the Buyers are parties to that certain Securities Purchase Agreement dated as of August 31, 2018 (the “Securities
Purchase Agreement”) and certain other agreements, documents and instruments executed and delivered in connection therewith
(together with the Securities Purchase Agreement and this Agreement, collectively, the “Transaction Documents”),
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”).

 

WHEREAS, the obligations
of the Debtors under the Transaction Documents, including all fees, commissions, expense reimbursements, indemnifications and all
other amounts due or to become due under this Agreement, are secured by all of the Debtors’ existing and future personal
property (the “Collateral”) as more fully described in (i) the Security Agreement and the Guaranty and Security
Agreement, each dated as of the date hereof by each Debtor in favor of the Collateral Agent (collectively, the “Security
Agreements”; capitalized terms used but not otherwise defined herein shall have the meanings assigned thereto in the
Security Agreements) and (ii) the Intellectual Property Security Agreement(s) by Debtors in favor of the Collateral Agent (collectively
with the Security Agreements, the “Collateral Documents”).

 

WHEREAS, for the orderly
administration of the Collateral, the Buyers desire to utilize and appoint the Collateral Agent, and the Collateral Agent has agreed
to accept such appointment, as the Buyers’ representative and agent under the Collateral Documents to take certain actions
from time to time in connection with the Collateral, all upon the terms and subject to the conditions set forth herein.

 

    	 		 

     

    

 

NOW, THEREFORE, in
consideration of the premises set forth herein and for other good and valuable consideration, the parties hereto agree as follows:

 

Section 1. Appointment
of Collateral Agent; Financing Statements.

 

(a)       Notwithstanding
anything to the contrary in the other Transaction Documents to the contrary, including but not limited to Section 4(d) of the Securities
Purchase Agreement, on the terms and subject to the conditions set forth herein, each Buyer hereby appoints the Collateral Agent,
and the Collateral Agent hereby accepts such appointment, to (i) serve as the Secured Parties’ representative and agent for
purposes of filing financing statements against each Debtor with respect to the Collateral, including by listing the Collateral
Agent as secured party of record thereon (as such term is used in the UCC), and the Collateral Agent agrees that, in such capacity,
the Collateral Agent shall be the representative of the Secured Parties for purposes of satisfying the requirements of Section
9-502(a)(2) of the UCC, whether or not the Collateral Agent is indicated in any such financing statement as acting in its capacity
as a representative and agent of the Secured Parties (as contemplated under Section 9-503(d) of the UCC), (ii) serve as the Secured
Parties’ representative and agent for purposes of satisfying the requirements of Section 9.104(a)(3) of the UCC, and (iii)
take such other action or actions as the Collateral Agent may be directed in writing from time to time by the Buyers to create,
perfect, preserve or maintain the Secured Parties’ security interest in the Collateral or enforce any and all rights and
remedies, in whole or in part, available to the Secured Parties under the Collateral Documents with respect to the Collateral.
In furtherance of the foregoing, the Collateral Agent hereby agrees to promptly take any other action (x) required or directed
in writing by the Buyers from time to time in order to maintain the perfection of, and preserve or protect, the Secured Parties’
security interests in the Collateral, (y) necessary in any bankruptcy or insolvency proceeding with respect to any Debtor to evidence
the appointment of the Collateral Agent hereunder and the perfection, preservation and maintenance of the Collateral in favor of
the Secured Parties or (z) permitted or required to be taken by a secured party of record under the UCC and directed in writing
by the Buyers from time to time in order to carry out more effectively the purposes of this Agreement.

 

(b)       The
Collateral Agent further agrees that (i) the Buyers shall, and are hereby authorized to, file all initial financing statements
against each Debtor with respect to the Collateral, which financing statements shall list the Collateral Agent as secured party
of record thereon, and (ii) it will not amend, nor will it consent the amendment of, any financing statements filed against any
Debtor with respect to the Collateral without the prior written consent of the Buyers (not to be unreasonably withheld, conditioned
or delayed).

 

(c)       The
Collateral Agent shall have no liability under, and no duty to inquire as to the provisions of, any agreement other than this Agreement
and the Collateral Documents (provided that in the case of any conflict between this Agreement and the Collateral Documents or
any other Transaction Document, the terms of this Agreement shall control). The Collateral Agent may rely upon, and shall not be
liable for acting or refraining from acting upon, any written notice, instruction or request furnished to it hereunder and reasonably
believed by it to be genuine and to have been signed or presented by the proper party or parties except to the extent directly
or indirectly caused by the gross negligence or willful misconduct of the Collateral Agent, as finally adjudicated by a court of
competent jurisdiction, or the Collateral Agent’s taking of any action in violation of this Agreement. The Collateral Agent
shall be under no duty to inquire into or investigate the validity, accuracy or content of any such document. The Collateral Agent
shall not be liable for any action taken or omitted by it in good faith except to the extent directly or indirectly caused by the
gross negligence or willful misconduct of the Collateral Agent, as finally adjudicated by a court of competent jurisdiction, or
the Collateral Agent’s taking of any action in violation of this Agreement. The Collateral Agent shall have no liability
for assets lost or damaged while being delivered to the Collateral Agent except to the extent directly or indirectly caused by
the gross negligence or willful misconduct of the Collateral Agent, as finally adjudicated by a court of competent jurisdiction,
or the Collateral Agent’s taking of any action in violation of this Agreement. The Collateral Agent may execute any of its
powers and perform any of its duties hereunder directly or through agents or attorneys and may consult with counsel, accountants
and other skilled persons to be selected and retained by it. Anything in this Agreement to the contrary notwithstanding, in no
event shall the Collateral Agent be liable for special, indirect or consequential loss or damage of any kind whatsoever (including
but not limited to lost profits), even if the Collateral Agent has been advised of the likelihood of such loss or damage and regardless
of the form of action.

 

    	 		 

     

    

 

(d)       The
provisions of this Section 1 and Section 7 below are solely for the benefit of the Buyers and the Collateral Agent, and the Debtors
shall not have any rights as third party beneficiaries or otherwise of any of the provisions hereof. In performing its functions
and duties under the this Agreement and the Collateral Documents, the Collateral Agent shall act solely as an agent of the Secured
Parties and does not assume, and shall not be deemed to have assumed, any obligation towards or relationship of agency or trust
with the Debtors. Notwithstanding any other provisions hereof or of any provision of the Collateral Documents, the Collateral Agent
shall not have or be deemed to have any fiduciary relationship with the Buyers, the Debtors or any other person or entity, and
no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or the
Collateral Documents 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 Collateral Documents 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.

 

Section 2. Notice
by Collateral Agent of Certain Events; Continuation Statements.

 

(a)       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.

 

(b)       The
Collateral Agent shall promptly notify the Buyers in writing whenever the Collateral Agent receives notice, including any notices
received under or in connection with the UCC, that (i) any security interest (other than the security interests of the Buyers under
the Collateral Documents) has been placed, or attempted to be placed, on any Collateral, including any inquiries in respect of
any financing statements listing the Collateral Agent as secured party of record thereunder, or (ii) the attachment or
perfection of Buyers’ security interest in the Collateral shall have been challenged. The Collateral Agent shall also promptly
notify the Buyers in writing that any financing statement filed against any Debtor with respect to the Collateral which lists the
Collateral Agent as secured party of record thereon (each, an “Expiring Financing Statement”) shall be expiring,
and such notice shall be provided by the Collateral Agent no earlier than six months and no later than three months prior to each
such expiration (each, an “Expiration Notice”). If the Collateral Agent shall not have received further instruction
from the Buyers within 10 business days following the date on which the Collateral Agent sent an Expiration Notice with respect
to an Expiring Financing Statement, the Collateral Agent shall be, and hereby is, authorized to file, in the appropriate filing
office, a continuation statement with respect to such Expiring Financing Statement and shall provide evidence of the same to the
Buyers.

 

    	 		 

     

    

 

Section 3. Representations
and Warranties. Each party hereto hereby represents and warrants to the other parties hereto as of the date hereof that:

 

(a)       it
is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization;

 

(b)       it
has the full power and authority to execute, deliver and perform this Agreement and has taken all necessary action to authorize
the execution, delivery and performance by it of this Agreement;

 

(c)       the
execution, delivery and performance by it of this Agreement does not violate any provision of its corporate governance documents;
and

 

(d)       this
Agreement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding agreement, enforceable
in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or other similar
laws affecting the enforcement of creditors’ rights generally and by general principles of equity.

 

Section 4. Term;
Termination. This Agreement shall remain in full force and effect until its termination in accordance with this Section 4.
The Buyers (by a vote of the majority of the holders of a majority of the outstanding principal of the Notes) may, in their sole
discretion, terminate this Agreement and remove the Collateral Agent from its appointment hereunder at any time by giving the Collateral
Agent and the Debtors at least thirty (30) days’ prior written notice. The Collateral Agent may terminate this Agreement,
and resign from its appointment hereunder, by giving the Buyers at least thirty (30) days’ prior written 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 (but shall not be obligated to) 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. Regardless of whether any such successor has been appointed and accepted such appointment,
the resigning Collateral Agent shall be discharged from its duties and obligations under this Agreement following the expiration
of such thirty (30) day notice period. After the effective date of any retiring Collateral Agent’s resignation hereunder
as collateral agent, the provisions of this Agreement 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.

 

Section 5. Fees.
The Debtors jointly and severally agree to pay to the Collateral Agent, upon execution of this Agreement and from time to time
thereafter, reasonable compensation for the services to be rendered hereunder, which, unless otherwise agreed in writing, shall
be as described on Schedule 2 attached hereto. In addition, all reasonable and documented out-of-pocket expenses, fees and
disbursements (including reasonable and documented attorneys’ fees and expenses, court costs and related expenses) in connection
with (a) the negotiation and administration of this Agreement and (b) the enforcement or protection of its rights in connection
with this Agreement and the Collateral Documents (including any expenses incurred as a result of any workout, restructuring or
negotiations), shall be billed to the Debtors and payable promptly on demand.

 

    	 		 

     

    

 

Section 6. Indemnity.
The Debtors jointly and severally agree to indemnify, defend and hold harmless the Collateral Agent and its directors, officers,
agents and employees (collectively, the “Indemnified Parties”) from all loss, liability or expense (including
attorneys’ fees and expenses, court costs and other expenses) arising out of or in connection with the Collateral Agent’s
execution and performance of this Agreement, including any Indemnified Party’s following of any instructions or other directions
from the Buyers with respect to the appointment of the Collateral Agent under this Agreement, except, in each case, to the extent
that such loss, liability or expense is due to the gross negligence or willful misconduct of any Indemnified Party, as finally
adjudicated by a court of competent jurisdiction, or any Indemnified Party’s taking of any action in violation of this Agreement.
The parties hereto acknowledge that the foregoing indemnities shall survive the termination of this Agreement.

 

Section
7.Concerning the Collateral Agent.

 

(a)       Each
Buyer acknowledges and agrees that (i) the duties, responsibilities and obligations of the Collateral Agent shall be limited to
those expressly set forth in this Agreement and no duties, responsibilities or obligations shall be inferred or implied, (ii) the
Collateral Agent shall not be responsible for any of the agreements referred to or described herein, or for determining or compelling
compliance therewith, and shall not otherwise be bound thereby, except, in each case, the Collateral Documents, (iii) the Collateral
Agent shall not be required to expend or risk any of its own funds or otherwise incur any financial or other liability in the performance
of any of its duties hereunder, and (iv) the Collateral Agent shall not be obligated to take any legal or other action hereunder
which might in its judgment involve or cause it to incur any expense or additional liability unless it shall have been furnished
with indemnification and security which it deems, in its sole, reasonable and absolute discretion, to be satisfactory. Except as
expressly set forth herein, the Buyers shall have and retain the sole power and authority to exercise any and all powers and rights
with respect to the Collateral.

 

(b)       The
Collateral Agent shall be under no duty to afford the assets in the Collateral any greater degree of care than it gives its own
similar property. The Collateral Agent shall not be liable for any damage, loss or injury resulting from any action taken or omitted
in the absence of gross negligence or willful misconduct, as finally adjudicated by a court of competent jurisdiction, or the Collateral
Agent’s taking of any action in violation of this Agreement.

 

(c)       Notwithstanding
any other provision of the Agreement, the Collateral Agent shall not be liable (i) for any indirect, incidental, consequential,
punitive or special losses or damages, regardless of the form of action and whether or not any such losses or damages were foreseeable
or contemplated, or (ii) for the acts or omissions of any nominees, correspondents, designees, agents, subagents or sub-custodians.

 

(d)       All
instructions, directions and notices to the Collateral Agent under this Agreement shall be delivered to the Collateral Agent in
writing. In the event the Collateral Agent receives conflicting instructions hereunder or under any of the Collateral Documents,
the Collateral Agent shall be fully protected in refraining from acting until such conflict is resolved to the satisfaction of
the Collateral Agent.

 

    	 		 

     

    

 

(e)       Notwithstanding
anything else to the contrary herein or in any other agreement (including the Transaction Documents), any reference to any discretionary
action by, consent, designation, specification, requirement or approval of, notice, request or other communication from, or other
direction given or action to be undertaken or to be (or not to be) suffered or omitted by the Collateral Agent or to any election,
decision, opinion, acceptance, use of judgment, expression of satisfaction or other exercise of discretion, rights or remedies
to be made (or not to be made) by the Collateral Agent, it is understood that in all cases the Collateral Agent shall be fully
justified in failing or refusing to take any such action if it shall not have received such written instruction, direction, advice
or concurrence of the Buyers as it deems appropriate. This provision is intended solely for the benefit of the Collateral Agent
and its successors and assigns and is not intended to and will not entitle the other parties hereto to any defense, claim or counterclaim,
or confer any rights or benefits on any party hereto.

 

(f)       The
Collateral Agent acknowledges that it has, independently and without reliance upon the Buyers, and based on such documents and
information as it has deemed appropriate, made its own credit analysis and decision to enter into to this Agreement and the Collateral
Documents. The Collateral Agent also acknowledges that it will, independently and without reliance upon the Buyers, and based on
such documents and information as it shall from time to time deem appropriate, make its own credit analysis and decision as to
whether it will continue to be party to this Agreement and the Collateral Documents.

 

(g)       Unless
otherwise provided in this Agreement, wherever this Agreement or the Collateral Documents requires or provides for the consent,
direction, instructions or waiver of the Collateral Agent or for an act or thing to be done in a manner or to be satisfactory to
the Collateral Agent, the Collateral Agent shall act hereunder and thereunder with the written consent of or under the written
instructions or written direction of the Buyers.

 

(h)       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 Debtors or the Buyers for any recitals or warranties herein or in the Collateral Documents, nor for the effectiveness, enforceability,
validity or due execution of the Collateral Documents 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.

 

    	 		 

     

    

 

Section 8. Collateral
Proceeds.

 

(a)       Except
as provided by law, the security interests in the Collateral shall be for the ratable benefit of the Secured Parties, shall rank
equally in priority, none being senior or subordinate to any other. No Secured Party shall contest the validity, perfection, priority
or enforceability of the lien of any other Secured Party 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 the Transaction Documents, pursuant
to applicable law or otherwise.

 

(b)       Any
payment or distribution of assets of any Debtor 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 any Debtor, whether voluntary or involuntary
or in bankruptcy, insolvency, receivership or other proceedings (each such payment, distribution and/or amount, together with any
other amounts or proceeds of Collateral, is hereafter referred to as “Collateral Proceeds”) received by any
Secured Party shall be held in trust for the benefit of all of Secured Parties and shall be immediately delivered to the Collateral
Agent in the amount and form received. All Collateral Proceeds shall be apportioned, paid over or delivered by the Collateral Agent
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 Transaction Documents, and next, among the Buyers on a pro rata
basis to each in accordance with the outstanding Secured Obligations to each of the Buyers.

 

Section 9.Miscellaneous.

 

(a)        Governing
Law. This Agreement shall be governed by and construed according to the laws of the State of New York, without regard to principles
of conflicts of laws.

 

(b)        Severability.
In the event that any condition, covenant or other provision contained herein is held by a court of competent jurisdiction to be
invalid or void, the same shall be deemed severable from the remainder of this Agreement and shall in no way affect any other covenant,
condition or provision contained herein. If such condition, covenant or other provision shall be deemed invalid due to its scope
or breadth, such shall be deemed valid to the extent of the scope or breadth permitted by law.

 

(c)        Entire
Agreement; No Modification. This Agreement constitutes the entire agreement among the parties pertaining to the subject matter
hereof, and supersedes all prior agreements and understandings pertaining thereto. No modification or amendment of this Agreement
shall be effective except by a written instrument signed by all parties hereto.

 

(d)        Successors
and Assigns. This Agreement shall be binding upon the permitted successors and assigns of the parties hereto. The Collateral
Agent shall not have the right to assign its rights hereunder without the prior written consent of the Buyers, except that any
corporation or association into which the Collateral Agent may be merged or converted, or with which it may be consolidated, shall
become the “Collateral Agent” hereunder so long as the Collateral Agent provides advance written notice to the Buyers
at least 10 business days prior to such merger, conversion or consolidation.

 

    	 		 

     

    

 

(e)       Counterparts;
Electronic Signature. This Agreement may be executed in one or more counterparts and by facsimile or other electronic signature,
each of which counterparts when so executed shall be deemed to be an original, and all of which together shall constitute one and
the same agreement.

 

(f)        Jury
Trial Waiver. EACH PARTY HERETO, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING
ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO
THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS
RELATED THERETO.

 

(g)       Confidentiality.
Each party hereto agrees that the existence and contents of this Agreement, all other information and documents provided to the
Collateral Agent in connection herewith, and the existence of the relationship between the Buyers and the Collateral Agent, and
any services provided by the Collateral Agent in connection therewith, are and shall remain confidential and shall not be disclosed
to any third party, except for such information (i) as may become generally available to the public by filing of UCC-1 financing
statements or otherwise, (ii) as may be required or appropriate in response to any summons, subpoena, or otherwise in connection
with any litigation, arbitration, administrative or similar proceeding, or to comply with any applicable law, order, regulation,
ruling, request from governmental regulators, and provided that, if possible, notice of such disclosure is provided to the other
party prior thereto, (iii) as may be obtained from a non-confidential source that disclosed such information in a manner that did
not violate its obligations to the other party in making such disclosure, or (iv) as may be furnished to that party’s affiliates,
or its affiliates’ auditors, attorneys, advisors, lenders and credit rating agencies which are required to keep the information
that is disclosed in confidence. Without limiting the foregoing, upon the Collateral Agent’s receipt of an inquiry from a
third party regarding any financing statements of record against any Debtor with respect to the Collateral listing the Collateral
Agent as secured party of record thereon, the Collateral Agent shall promptly provide notice of the same to the Buyers, and shall
only respond to such inquiry in accordance with instructions provided by the Buyers.

 

(h)       Notices.
All notices hereunder shall be in writing and delivered to each party at the address set forth for such party on the signature
pages hereto.

 

(i)        Conflicts.
In the case of any conflict between this Agreement and any other Transaction Document, including but not limited to Section 4(d)
of the Securities Purchase Agreement, the terms of this Agreement shall control.

 

Section 10.Extension
and Post-Closing Obligation.

 

(a)      Extension.The
Buyers and the Company hereby agree to extend all delivery dates set forth in the Securities Purchase Agreement for the granting
of liens securing of the Notes and the perfection of the security interests contemplated therein for completion within a period
of thirty (30) days from the date hereof, as such period may be extended by the Collateral Agent, in its reasonable discretion;
provided, however, that, all of the Buyers may agree in writing to instruct the Collateral Agent not to perfect its security
interest, for the benefit of the Secured Parties, in certain types of Collateral if, in the reasonable judgment of all the Buyers,
the expense or process for achieving such perfection is determined to be unduly burdensome.

 

    	 		 

     

    

 

(b)       Post-closing
Obligation. The Issuer hereby agrees to deliver to the Collateral Agent a certificate of good standing issued by the appropriate
authority under the laws of the British Virgin Islands, in substance reasonably satisfactory to the Collateral Agent, by no later
than thirty (30) days after the date hereof, as such period may be extended by the Collateral Agent, in its reasonable discretion.

 

[Signature page to follow]

 

    	 		 

     

    

 

IN WITNESS WHEREOF, the parties have executed
and delivered this Agreement to be effective as of the date first above stated.

 

	 	COLLATERAL AGENT:
	 	 	 
	 	DELAWARE TRUST COMPANY
	 	 	 
	 	By:	/s/ Alan R. Halpern
	 	Print Name:	Alan R. Halpern
	 	Title:	Vice President
	 	 	 
	 	Address for notices:
	 	 	 
	 	Delaware Trust Company
	 	251 Little Falls Dr.
	 	Wilmington, DE 19808
	 	Attention: Corporate Trust Administration
	 	Fax: 302-636-8666
	 	E-mail: trust@delawaretrust.com
	 	 	 
	 	with a copy to:
	 	 	 
	 	Miles & Stockbridge, P.C.
	 	1500 K Street, NW, Suite 800
	 	Washington, DC 20005
	 	Attention: Abbey M. Ruby
	 	E-mail: aruby@milesstockbridge.com

 

    	 		 

     

    

 

	 	BUYERS:
	 	 	 
	 	By:	/s/ James A. Hayward
	 	Print Name:  James A. Hayward
	 	 	 
	 	By:  	/s/ Judith Murrah
	 	Print Name:  Judith Murrah
	 	 	 
	 	By:  	/s/ Yavoc Shamash
	 	Print Name:  Yavoc Shamash
	 	 	 
	 	By:  	/s/ Robert Catell
	 	Print Name:  Robert Catell
	 	 	 
	 	By:  	/s/ Elizabeth Schmalz Ferguson
	 	Print Name:  Elizabeth Schmalz Ferguson
	 	 	 
	 	By:  	/s/ Gregg Baldwin
	 	Print Name:  Gregg Baldwin
	 	 	 
	 	By:  	/s/ William Montgomery
	 	Print Name:  William Montgomery
	 	 	 
	 	By:  	/s/ Johnette van Eeden
	 	Print Name:  Johnette van Eeden
	 	 	 
	 	By:  	/s/ John Cartier
	 	Print Name:  John Cartier
	 	 

    	 		 

     

    

 

	 	BUYERS (continued)
	 	 	 
	 	Delabarta II
	 	 	 
	 	By:  	/s/ John F. Bitzer III
	 	Print Name:  John F. Bitzer III
	 	Title:  President
	 	 	 
	 	The Rodgers Living Trust Dated April 7, 1995
	 	 	 
	 	By:  	/s/ Jay D. Rodgers
	 	Print Name:  Jay D. Rodgers
	 	Title:  Trustee

 

	 	Addresses for Notices:
	 	 	 
	 	 	See Schedule 1 attached hereto

 

    	 		 

     

    

 

	 	DEBTORS:
	 	 	 
	 	APPLIED DNA SCIENCES, INC.
	 	 	 
	 	By:  	/s/ Beth Jantzen
	 	Print Name:  Beth Jantzen, CPA
	 	Title:  Chief Financial Officer
	 	 	 
	 	APDN (B.V.I.) INC.
	 	 	 
	 	By:  	/s/ James A. Hayward
	 	Print 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

 

    	 		 

     

    

 

SCHEDULE 1

 

SCHEDULE OF BUYERS

 

	Buyer	 	Address for Notices
	James A. Hayward	 	1 Emmet Drive, Stony Brook, NY 11790
	Judith Murrah	 	8 Old Post Lane, Saint James, NY 11780
	Delabarta II	 	c/o Delaware Corporate  Management, 1105 North Market Street, Suite 1300, Wilmington, DE  19801
	Yavoc Shamash	 	7 Quaker Hill Road, Stony Brook, NY 11790
	Robert Catell	 	62 Osborne Road, Garden City, NY 11530
	Elizabeth Schmalz Ferguson	 	101 Jersey Avenue, Spring Lake, NJ 07762
	The Rodgers Living Trust Dated April 7, 1995	 	1277 Porter Road, Flower Mound, TX 75022
	Gregg Baldwin	 	3391 Ichabod Way, The Villages, FL 32163
	William Montgomery	 	34211 Seavey Loop Road, Eugene, OR 97405
	Johnette van Eeden	 	451 Westpark Way, Suite 5, Euless, TX 76040
	John Cartier	 	P.O. Box East Hampton, NY 11937

 

    	 		 

     

    

 

SCHEDULE 2

 

FEE SCHEDULE

 

Initial Set Up Fee: $2,500, payable upon execution
of this Agreement (which fee shall be fully earned and non-refundable upon payment)

 

Annual Fee: $7,500, payable annually in advance
on the date of this Agreement and on each anniversary of the date of this Agreement (which fee shall be fully earned and non-refundable
upon payment)

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