Applied DNA Sciences Inc (APDN)

[apdn1mill]

Developing fees and Exclusivity in phase 0 and phase 1

In consideration of the total sum of USD 350,000 (“CONSIDERATION”), ADNAS will undertake and perform the development services as set forth in this term sheet and shall grant worldwide exclusivity to BOREALIS for the production and sale of DNA marked polyolefin products ******** (“EXCLUSIVITY AGREEMENT”). ADNAS will terminate any discussion with any key competitors named and listed by BOREALIS. “Exclusive polyolefin products” shall not include polyolefin textiles, nor any product sold to the US Government. The CONSIDERATION includes the creation of three (3) unique SigNature DNA Marks (title of DNA marks will pass to BOREALIS upon creation of the marks. Marks will be securely stored by ADNAS for use in Phase 0 and Phase 1. ADNAS will notify BOREALIS when the marks have been created. Marks are necessary to complete dilution experiments in Phase 0.)