SEC Contract Filing

Filing Date: 2020-10-14

Document Content:
<DOCUMENT>
<TYPE>EX-10.6
<SEQUENCE>7
<FILENAME>tm2033064d1_ex10-6.htm
<DESCRIPTION>EXHIBIT 10.6
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibit 10.6</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.5in 0pt 0in; text-align: right">October&nbsp;9, 2020</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Applied DNA Sciences,&nbsp;Inc. (the &ldquo;Company&rdquo;)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Attn: Chief Financial Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">50 Health Sciences Drive</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Stony Brook, New York 11790</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Re:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities Purchase Agreement,
dated July&nbsp;16, 2019, between the Company and Dillon Hill Capital, LLC (the &ldquo;Holder&rdquo;) and Secured Convertible Note,
dated as of July&nbsp;16, 2019 by the Company, in favor of Holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dear Beth Jantzen,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Reference is made to (i)&nbsp;Securities
Purchase Agreement, dated July&nbsp;16, 2019, between the Company, Holder and certain other Buyers (as defined in the Purchase
Agreement) (as amended, restated, supplemented or otherwise modified from time to time and in effect on the date hereof the &ldquo;Purchase
Agreement&rdquo;), (ii)&nbsp;Secured Convertible Note, dated as of July&nbsp;16, 2019, by the Company in favor of the Holder (as
amended, restated, supplemented or otherwise modified from time to time and in effect on the date hereof, the &ldquo;Note&rdquo;),
(iii)&nbsp;Security Agreement, dated as of October&nbsp;19, 2018, by the Company in favor of Delaware Trust Company (the &ldquo;Collateral
Agent&rdquo;) (the &ldquo;Company Security Agreement&rdquo;), (iv)&nbsp;Guaranty and Security Agreement dated as of October&nbsp;19,
2018, by APDN (B.V.I) Inc. (the &ldquo;Guarantor&rdquo;) in favor of the Collateral Agent (as amended, restated, supplemented or
otherwise modified from time to time and in effect on the date hereof, the &ldquo;Guarantor Security Agreement&rdquo;), (v)&nbsp;Intellectual
Property Security Agreement, dated October&nbsp;19, 2018, by the Company in favor of the Collateral Agent (&ldquo;Company IP Security
Agreement&rdquo;) and (vi)&nbsp;Intellectual Property Security Agreement dated as of October&nbsp;19, 2018, by the Guarantor in
favor of the Collateral Agent (as amended, restated, supplemented or otherwise modified from time to time and in effect on the
date hereof, the &ldquo;Guarantor IP Security Agreement&rdquo;). Capitalized terms used but not otherwise defined herein shall
have the meanings given them in the Securities Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has informed the Holder that
the Company intends to repay the Note and the obligations thereunder (the &ldquo;Obligations&rdquo;). The amount due and payable
under the Note on October&nbsp;9, 2020 (the &ldquo;Target Date&rdquo;) which includes principal and accrued but unpaid interest
(the &ldquo;Payoff Amount&rdquo;) is $1,665,581.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Wire instructions:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Intentionally
omitted.]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Holder and Collateral Agent agree that
upon Holder&rsquo;s receipt of the full referenced amount above, (i)&nbsp;all of the obligations and liabilities of the Company
and the Guarantor under the Note, the Purchase Agreement, any security agreement, any guaranty agreement (including without limitation
the Company Security Agreement, the Guarantor Security Agreement, the Company IP Security Agreement, and the Guarantor IP Security
Agreement) and any other documents and instruments related thereto (&ldquo;Documents&rdquo;) will be automatically satisfied in
full, (ii)&nbsp;the Note and other Documents will be automatically terminated and of no further force or effect (other than any
provisions or terms of the Documents (including inchoate indemnity obligations) that are specified in any such agreement as surviving
that respective agreement&rsquo;s termination, which shall continue to survive notwithstanding the foregoing), (iii)&nbsp;all liens,
mortgages and other security interests in or on the Company, the Guarantor, or any of the Company&rsquo;s or Guarantor&rsquo;s
assets or properties shall be automatically released and be of no further force or effect with no further action on our part, (iv)&nbsp;Collateral
Agent authorizes the Company and its respective agents and assignees to file termination statements of all UCC financing statements
and/or mortgages filed by the Collateral Agent covering the assets of the Compan