<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>3
<FILENAME>oct262005sb2aex1013.txt
<TEXT>
 Exhibit 10.13

                         STEVENSON-WYDLER (15 USC 3710)
                      COOPERATIVE RESEARCH AND DEVELOPMENT
                   AGREEMENT (hereinafter CRADA) No. 04-CR-09

                                     BETWEEN

                             Bechtel BWXT Idaho, LLC

                  under its U.S. Department of Energy Contract

                 No. DE-AC07-99ID13727 (hereinafter Contractor)

                                       AND

  Applied DNA Sciences, Inc. (hereinafter Participant), both being hereinafter
  referred singularly as "Party" and jointly as "Parties"

                             ARTICLE I: DEFINITIONS
                             ----------------------

A.   "Government"  means the Federal  Government  of the United States (U.S.) of
     America and agencies thereof.

B.   "DOE" means the Department of Energy, an agency of the Federal Government.

C.   "Contracting Officer" means the DOE employee administering the Contractor's
     DOE contract.

D.   "Generated  Information"  means information  produced in the performance of
     this CRADA.

E.   "Proprietary  Information"  means  information  which  embodies  (i)  trade
     secrets or (ii) commercial or financial  information which is privileged or
     confidential  under the  Freedom  of  Information  Act (5 USC 552 (b) (4)),
     either of which is developed at private  expense  outside of this CRADA and
     which is marked as Proprietary Information.

F.   "Protected CRADA Information"  means Generated  Information which is marked
     as being  Protected  CRADA  Information  by a Party to this CRADA and which
     would  have  been  Proprietary  Information  had it  been  obtained  from a
     non-Federal entity.

G.   "Subject  Invention"  means any invention of the  Contractor or Participant
     conceived or first actually  reduced to practice in the performance of work
     under this CRADA.

H.   "Intellectual Property" means Patents, Trademarks,  Copyrights, Mask Works,
     Protected CRADA Information,  and other forms of comparable property rights
     protected by Federal Law and foreign counterparts, except trade secrets.
<PAGE>
I.   "Trademark" means a distinctive mark, symbol, or emblem used in commerce by
     a  producer  or  manufacturer  to  identify  and  distinguish  its goods or
     services from those of others.

J.   "Service Mark" means a distinctive word, slogan, design,  picture,  symbol,
     or any  combination  thereof,  used in commerce by a person to identify and
     distinguish its services from those of others.

K.   "Mask Work"  means a series of related  images,  however  fixed or encoded,
     having or  representing  the  predetermined,  three-dimensional  pattern of
     metallic, insulating, or semiconductor material present or removed from the
     layers of a semiconductor  chip product and in which series the relation of
     the images to one another is that each image has the pattern of the surface
     of one form of the semiconductor chip product.

L.   "Background   Intellectual   Property"  means  the  Intellectual   Property
     identified by the Parties in Appendix B, Background  Intellectual Property,
     which was in existence prior to or is first produced outside of this CRADA,
     except  that in the case of  inventions  in  those  identified  items,  the
     inventions  must have been  conceived  outside  of this CRADA and not first
     actually  reduced to  practice  under  this CRADA to qualify as  Background
     Intellectual Property.

                          ARTICLE II: STATEMENT OF WORK
                          -----------------------------

Appendix A, Statement of Work, is an integral part of this CRADA,  and is hereby
incorporated by reference into this CRADA.

                         ARTICLE III: FUNDING AND COSTS
                         ------------------------------

A.   The  effective  date of this CRADA shall be the latter date of (1) the date
     on which it is signed by the last of the Parties,  (2) the date on which it
     is approved by DOE, or (3) the date on which the advance  funding  referred
     to in Article III.E is received by the Contractor. The work to be performed
     under this CRADA shall be complete  within two (2) years from the effective
     date.

B.   Participant's estimated contribution is $50,000 funds-in and $0 in-kind for
     FY-04  and  $200,000  funds-in  and  $0  in-kind  for  FY-05.  There  is no
     Government funding associated with this CRADA.

C.   Neither Party shall have an obligation to continue or complete  performance
     of its work at a contribution  in excess of its estimated  contribution  as
     contained in Article III B, above, including any subsequent amendment.

D.   Each Party  agrees to provide at least thirty (30) days notice to the other
     Party if the actual cost to complete  performance will exceed its estimated
     contribution.

                                       2
<PAGE>

F.   Participant shall provide Contractor sufficient advance funds to maintain
     approximately a 90-day advance of funds during the entire period of work.
     No work will begin before the receipt of a cash advance. Failure of
     Participant to provide the necessary advance funding is cause for
     termination of this CRADA.

                              ARTICLE V: DISCLAIMER
                              ---------------------

THE GOVERNMENT,  PARTICIPANT, AND CONTRACTOR MAKE NO EXPRESS OR IMPLIED WARRANTY
AS TO THE  CONDITIONS OF THE RESEARCH OR ANY  INTELLECTUAL  PROPERTY,  GENERATED
INFORMATION,  OR PRODUCT MADE OR DEVELOPED  UNDER THIS CRADA,  OR THE OWNERSHIP,
MERCHANTABILITY,  OR  FITNESS  FOR A  PARTICULAR  PURPOSE  OF  THE  RESEARCH  OR
RESULTING PRODUCT. NEITHER THE GOVERNMENT,  PARTICIPANT, NOR CONTRACTOR SHALL BE
LIABLE FOR SPECIAL,  CONSEQUENTIAL,  OR  INCIDENTAL  DAMAGES  ATTRIBUTED TO SUCH
RESEARCH OR RESULTING PRODUCT,  INTELLECTUAL PROPERTY, GENERATED INFORMATION, OR
PRODUCT MADE OR DEVELOPED UNDER THIS CRADA.

                              ARTICLE VI: LIABILITY
                              ---------------------

Except to the extent of any  liability  resulting  from  willful  misconduct  or
negligent  acts or omissions of  Contractor,  the  Participant  indemnifies  the
Government  and  Contractor  for all  damages,  costs  and  expenses,  including
attorney's fees,  arising from personal injury or property damage occurring as a
result of the making, using, or selling of a product,  process, or service by or
on behalf of Participant,  its assignees,  or licensees,  which was derived from
the work  performed  under this CRADA.  In respect to this Article,  neither the
Government  nor  Contractor  shall be  considered  assignees or licensees of the
Participant,  as a result of reserved  Government  and  Contractor  rights.  The
indemnity set forth in this paragraph shall apply only if Participant shall have
been informed as soon and as completely  as practical by the  Contractor  and/or
the  Government  of the action  alleging such claim and shall have been given an
opportunity,  to the maximum  extent  afforded by  applicable  laws,  rules,  or
regulations,  to  participate  in and control its  defense,  and the  Contractor
and/or the Government shall have provided all reasonably  available  information
and reasonable assistance requested by Participant.  No settlement for which the
Participant  would be responsible  shall be made without  Participant's  consent
unless required by final decree of a court of competent jurisdiction.

Other  liability.  Except to the extent of any liability  resulting from willful
misconduct  or  negligent  acts  or  omissions  of the  Contractor,  Participant
indemnities   the  Government   and  Contractor  for  all  damages,   costs  and
expenditures,  including  attorneys'  fees,  arising  from any  other  claims or
actions  to  which  Contractor  is  subjected  which  result  from  any  willful
misconduct or negligent acts or omissions of the  Participant in the performance
of this CRADA.  Contractor  agrees to give prompt  written notice to Participant
regarding any claim or action initiated against  Contractor which Contractor has
reason to  believe  is likely to give rise to a claim for  indemnity  hereunder.
Upon such notice,  Participant may provide and control an appropriate defense or
settle such claim or action  through  counsel of its choice or, at its election,
indemnify  the  costs  of such  actions  under  the  direction  and  control  of
Contractor.  To the extent  that such  claims or actions  arise from the willful
misconduct or negligent  acts or omissions of any party other than  Participant,
Participant shall have no duty or obligation to Contractor.

                                       3
<PAGE>

To the extent  necessary to  effectuate  the  indemnity  provisions  heron,  the
Participant  hereby waives any immunity it may have under any applicable  worker
compensation law.

             ARTICLE VII: OBLIGATIONS AS TO PROPRIETARY INFORMATION
             ------------------------------------------------------

A.   Each Party  agrees to not  disclose  Proprietary  Information  provided  by
     another  Party to anyone other than the CRADA  Participant  and  Contractor
     without  written  approval of the  providing  Party,  except to  Government
     employees who are subject to the statutory provisions against disclosure of
     confidential information set forth in the Trade Secrets Act (18 USC 1905).

B.   If  Proprietary  Information  is orally  disclosed to a Party,  it shall be
     identified as such,  orally,  at the time of disclosure  and confirmed in a
     written  summary  thereof,  appropriately  marked by the disclosing  Party,
     within thirty (30) days as being Proprietary Information.

C.   Proprietary   Information  in  tangible  form  shall  be  returned  to  the
     disclosing  Party or destroyed with a certificate of destruction  submitted
     to the disclosing  Party upon  termination or expiration of this CRADA,  or
     during the term of this CRADA upon request by the disclosing Party.

D.   All information marked as Proprietary Information shall be protected by the
     recipient as Proprietary  Information  for a period of three (3) years from
     the date of disclosure, unless, as shown by the recipient, such Proprietary
     Information  is in the public domain or thereafter  becomes  publicly known
     without the fault of the recipient,  comes into recipient's possession from
     a third party without an obligation of confidentiality on the recipient, is
     independently developed by recipient's employees who did not have access to
     such  Proprietary  Information,  is released by the  disclosing  Party to a
     third party without  restriction,  or is released for  disclosure  with the
     written consent of the disclosing Party.

E.   Notwithstanding  anything contained herein to the contrary,  a recipient of
     Proprietary   Information  may  disclose  Proprietary  Information  of  any
     disclosing  Party to the extent required by law,  regulation or valid court
     order.  Immediately upon receipt of such a court order, the recipient shall
     notify the disclosing  Party of such order to afford the  disclosing  Party
     maximum  opportunity  to seek relief from such court order.  In the case of
     disclosure  required by law or regulation,  the recipient  shall notify the
     disclosing  Party of the requirement of law or regulation  immediately upon
     learning  of such  requirement  to  afford  the  disclosing  party  maximum
     opportunity to exercise its alternatives.

          ARTICLE VIII: OBLIGATIONS AS TO PROTECTED CRADA INFORMATION
          -----------------------------------------------------------

A.   Each Party may  designate  as Protected  CRADA  Information  any  Generated
     Information produced by its employees which meets the definition of Article
     I.F and, with the agreement of the other Party,  so designate any Generated
     Information  produced  by the  other  Party's  employees  which  meets  the
     definition of Article I.F. All such designated  Protected CRADA Information
     shall be appropriately marked.

                                       4
<PAGE>

B.   For a period of five (5) years from the date Protected CRADA Information is
     produced,  pursuant to 15 U.S.C. 3710 a(c)(7)(B),  the Parties agree not to
     further  disclose such  information  and to use the same degree of care and
     discretion,  but no less  than  reasonable  care and  discretion,  to avoid
     disclosure,  publication,  or  dissemination of such information to a third
     party,  as the Party employs for similar  protection of its own information
     which it does not desire to disclose, publish, or disseminate except:

          (1)  as necessary to perform this CRADA;

          (2)  as provided in Article XI [REPORTS AND ABSTRACTS];

          (3)  as  requested  by the DOE  Contracting  Officer to be provided to
               other DOE facilities  for use only at those DOE  facilities  with
               the same protection in place;

          (4)  to existing or potential  licensees,  affiliates,  customers,  or
               suppliers of the Parties in support of  commercialization  of the
               technology with the same  protection in place.  Disclosure of the
               Participant's Protected CRADA Information under this subparagraph
               shall only be done with Participant's consent; or

          (5)  as mutually agreed by the Parties in advance.

C.   The  obligations  of  paragraph B above shall end sooner for any  Protected
     CRADA Information which shall become publicly known without fault of either
     Party, shall come into a Party's possession without breach by that Party of
     the obligations of paragraph B above, or shall be  independently  developed
     by a  Party's  employees  who did not have  access to the  Protected  CRADA
     Information.

                   ARTICLE IX: RIGHTS IN GENERATED INFORMATION
                   -------------------------------------------

The  Parties  agree that they  shall have no  obligations  of  nondisclosure  or
limitations on their use of, and the Government  shall have unlimited rights in,
all Generated Information produced and information provided by the Parties under
this  CRADA,  except for (a)  information  which is marked as being  Copyrighted
(subject to Article XIII) or as Protected CRADA Information  (subject to Article
VIII) or as Proprietary Information (subject to Article VII), or (b) information
that discloses an invention  which may later be the subject of a U.S. or foreign
Patent application.

                            ARTICLE X: EXPORT CONTROL
                            -------------------------

THE  PARTIES  UNDERSTAND  THAT  MATERIALS  AND  INFORMATION  RESULTING  FROM THE
PERFORMANCE  OF THIS CRADA MAY BE SUBJECT TO EXPORT  CONTROL  LAWS AND THAT EACH
PARTY IS RESPONSIBLE FOR ITS OWN COMPLIANCE WITH SUCH LAWS.

                                       5
<PAGE>


                        ARTICLE XI: REPORTS AND ABSTRACTS
                        ---------------------------------

A.   The Parties agree to produce the following deliverables:

          (1)  an initial  abstract  suitable for public release at the time the
               CRADA is approved by DOE;

          (2)  other  abstracts  (final  when work is  complete,  and  others as
               substantial changes in scope and dollars occur);

          (3)  a final report,  upon completion or termination of this CRADA, to
               include a list of Subject Inventions;

          (4)  reserved;

          (5)  other  topical/periodic  reports, when the nature of research and
               magnitude of dollars justify; and

          (6)  computer  software in source and executable object code format as
               defined  within the  Statement  of Work or  elsewhere  within the
               CRADA documentation.

B.   The Parties  acknowledge  that the  Contractor  has the  responsibility  to
     provide  the above  information  at the time of its  completion  to the DOE
     Office of Scientific and Technical Information.

C.   Participant agrees to provide the above information to Contractor to enable
     full compliance with paragraph B of this article.

D.   The Parties acknowledge that the Contractor and DOE have a need to document
     the long-term economic benefit of the cooperative  research to be conducted
     under this CRADA. Therefore,  Participant shall respond to the Contractor's
     reasonable  requests  for  pertinent  information,  during the term of this
     CRADA and for a period of five (5) years thereafter.

                       ARTICLE XII: PRE-PUBLICATION REVIEW
                       -----------------------------------

A.   The Parties agree to secure pre-publication approval from each other, which
     shall not be  unreasonably  withheld or denied  beyond thirty (30) days, in
     accordance with the following procedures:

          (1)  Each  Party  (hereinafter  Submitter)  shall  submit to the other
               Party (hereinafter Recipient),  in advance,  proposed written and
               oral  publications  pertaining to work under the CRADA.  Proposed
               oral publications shall be submitted to the Recipient in the form
               of a written presentation synopsis and a written abstract.

                                       6
<PAGE>

          (2)  Recipient  shall  provide a  written  response  to the  Submitter
               within thirty (30) days, either objecting or not objecting to the
               proposed publication. The Submitter shall consider all objections
               of the Recipient and shall not unreasonably refuse to incorporate
               the  suggestions  and meet the objections of the  Recipient.  The
               proposed  publication shall be deemed not  objectionable,  unless
               the  proposed  publication   contains  Proprietary   Information,
               Protected CRADA  Information,  export  controlled  information or
               material that would create potential statutory bars to filing the
               U.S. or corresponding foreign Patent applications,  in which case
               express written permission shall be required for publication.

B.   The Parties  agree that neither will use the name of the other Party or its
     employees  in  any  promotional  activity,  such  as  advertisements,  with
     reference  to any product or service  resulting  from this  CRADA,  without
     prior written approval of the other Party.

                            ARTICLE XIII: COPYRIGHTS
                            ------------------------

A.   The Parties may assert  Copyright  in any of their  Generated  Information.
     Assertion of Copyright  generally means to enforce or give an indication of
     an  intent or right to  enforce  such as by  marking  or  securing  Federal
     registration.

B.   Allocation  of  rights  to  Copyrights  in  Generated  Information  will be
     negotiated by the Parties.

C.   For Generated Information,  the Parties acknowledge that the Government has
     for   itself   and   others   acting  on  its   behalf,   a   royalty-free,
     nontransferrable,  nonexclusive, irrevocable worldwide Copyright license to
     reproduce,  prepare derivative works,  distribute copies to the public, and
     perform publicly and display  publicly,  by or on behalf of the Government,
     all Copyrightable works produced in the performance of this CRADA,  subject
     to the  restrictions  this  CRADA  places  on  publication  of  Proprietary
     Information and Protected CRADA Information.

D.   For all Copyrighted  computer  software produced in the performance of this
     CRADA,  the Party owning the  Copyright  will  provide the source code,  an
     expanded  abstract as described in Appendix A, the  executable  object code
     and  the  minimum  support  documentation  needed  by a  competent  user to
     understand  and use the  software to DOE's  Energy  Science and  Technology
     Software Center,  P.O. Box 1020, Oak Ridge, TN 37831. The expanded abstract
     will be treated in the same manner as Generated  Information in paragraph C
     of this article.

E.   Contractor  and  Participant  agree that,  with respect to any  Copyrighted
     computer  software  produced in the performance of this CRADA,  DOE has the
     right,  at the end of the period set forth in  paragraph B of Article  VIII
     hereof  and at the end of each  two-year  interval  thereafter,  to request
     Contractor and  Participant  and any assignee or exclusive  licensee of the
     Copyrighted  software  to grant a  nonexclusive,  partially  exclusive,  or
     exclusive license to a responsible applicant upon terms that are reasonable
     under the  circumstances,  provided such grant does not cause a termination
     of any  licensee's  right  to use the  Copyrighted  computer  software.  If
     Contractor,  Participant,  any assignee, or exclusive licensee refuses such
     request,  Contractor and Participant  agree that DOE has the right to grant
     the license if DOE determines that Contractor,  Participant,  assignee,  or
     licensee  has not made a  satisfactory  demonstration  that it is  actively
     pursuing commercialization of the Copyrighted computer software.

                                       7
<PAGE>


     Before  requiring  licensing  under this paragraph E, DOE shall furnish the
     Contractor/Participant  written  notice of its  intentions  to require  the
     Contractor/Participant    to   grant   the   stated   license,    and   the
     Contractor/Participant  shall be allowed  thirty  (30) days (or such longer
     period as may be authorized by the  cognizant DOE  Contracting  Officer for
     good  cause  shown in  writing  by the  Contractor/Participant)  after such
     notice to show cause why the license should not be required to be granted.

     Contractor/Participant  shall have the right to appeal the  decision by DOE
     to the grant of the stated license to the Invention  Licensing Appeal Board
     as set forth in paragraphs (b)-(g) of 10 CFR 781.65, "Appeals."

F.   The Parties agree to place copyright and other notices,  as appropriate for
     the  protection  of  copyright,  in human  readable  form onto all physical
     media,  and in  digitally  encoded  form in the header of machine  readable
     information  recorded  on such media such that the  notice  will  appear in
     human  readable  form when the digital  data are off loaded or the data are
     accessed for display or printout,

                        ARTICLE XIV: REPORTING INVENTIONS
                        ---------------------------------

A.   The Parties  agree to disclose to each other each Subject  Invention  which
     may be  patentable  or  otherwise  protectable  under the Patent  Act.  The
     Parties  agree  that  Contractor  and   Participant   will  disclose  their
     respective  Subject  Inventions to DOE and each other within two (2) months
     after the inventor first discloses the Subject  Invention in writing to the
     person(s) responsible for Patent matters of the disclosing Party.

B.   These disclosures  should be in sufficiently  complete  technical detail to
     convey  a  clear  understanding,  to  the  extent  known  at  the  time  of
     disclosure, of the nature, purpose, and operation of the Subject Invention.
     The disclosure shall also identify any known actual or potential  statutory
     bars, i.e.,  printed  publications  describing the Subject Invention or the
     public  use or "on sale" of the  Subject  Invention  in this  country.  The
     Parties further agree to disclose to each other any subsequent known actual
     or potential  statutory bar that occurs for a Subject  Invention  disclosed
     but  for  which a  Patent  application  has not  been  filed.  All  Subject
     Invention disclosures shall be marked as confidential under 35 U.S.C. 205.

                         ARTICLE XV: TITLE TO INVENTIONS
                         -------------------------------

Wherein DOE has granted  Participant and Contractor the right to elect to retain
title to their respective Subject  Inventions,  and wherein  Participant has the
option  to choose an  exclusive  license,  for  reasonable  compensation,  for a
pre-negotiated field of use to Contractor's Subject Inventions,

                                       8
<PAGE>

A.   Each  Party  shall  have the first  option to elect to retain  title to any
     Subject  Invention  made by its employees and that election  shall be made:
     (1) for the  Participant,  within  twelve (12) months of  disclosure of the
     Subject  Invention  to DOE or (2) for the  Contractor,  within  twelve (12)
     months of disclosure of the Subject Invention to DOE. If a Party elects not
     to retain title to any Subject Invention of its employees,  the other Party
     shall  have the  second  option  to elect to retain  title to such  Subject
     Invention.  DOE shall  retain title to any Subject  Invention  which is not
     retained by any Party.

     For Subject  Inventions  conceived  or first  actually  reduced to practice
     under this CRADA, which are joint Subject Inventions made by Contractor and
     Participant,  title to such Subject  Inventions  shall be jointly  owned by
     Contractor and Participant.

B.   The Parties acknowledge that DOE may obtain title to each Subject Invention
     reported under Article XIV for which a Patent  application or  applications
     are not filed  pursuant to Article XVI and for which any issued Patents are
     not maintained by any Party to this CRADA.

C.   The  Parties  acknowledge  that the  Government  retains  a  non-exclusive,
     nontransferrable,  irrevocable,  paid-up  license  to  practice  or to have
     practiced for or on behalf of the U. S. every Subject  Invention under this
     CRADA  throughout  the world.  The Parties agree to execute a  Confirmatory
     License to affirm the Government's retained license.

D.   During the term of this CRADA and for a period of six (6) months  after the
     termination  or  completion  of this  CRADA,  Participant  shall  have  the
     opportunity, pursuant to 15 U.S.C. 37l0a, to obtain a license to Contractor
     Subject  Inventions.  In particular,  Participant  shall have the option to
     obtain,  up to and including,  an exclusive  license to Contractor  Subject
     Inventions  within  a  defined  field  of  use  on  mutually  agreed-  upon
     reasonable  terms and  conditions,  including  the  payment  of  negotiated
     license fees and royalties.

                     ARTICLE XVI: FILING PATENT APPLICATIONS
                     ---------------------------------------

A.   The Parties agree that the Party initially indicated as having an ownership
     interest in any Subject Invention  (hereinafter Inventing Party) shall have
     the first  opportunity  to file U.S. and foreign  Patent  applications.  If
     Participant  does not file  such  applications  within  one (1) year  after
     election,  or if  Contractor  does not file such  applications  within  the
     filing time specified in its prime contract,  the other Party to this CRADA
     exercising an option pursuant to Article XV may file Patent applications on
     such  Subject  Inventions.  If a Patent  application  is filed by the other
     Party  (hereinafter  Filing Party),  the Inventing  Party shall  reasonably
     cooperate and assist the Filing Party,  at the Filing Party's  expense,  in
     executing a written assignment of the Subject Invention to the Filing Party
     and in otherwise  perfecting the Patent  application,  and the Piling Party
     shall have the right to control the prosecution of the Patent  application.
     The  Parties  shall  agree  between  themselves  as to who will file Patent
     applications on any joint Subject Invention.

B.   The Parties agree that DOE has the right to file patent applications in any
     country  if neither  Party  desires  to file a patent  application  for any
     Subject Invention. Notification of negative intent shall be made in writing
     to the DOE  Contracting  Officer within three (3) months of the decision of
     the  non-Inventing  Party to not file a patent  application for the Subject
     Invention pursuant to Article XV or not later than sixty (60) days prior to
     the time when any statutory  bar might  foreclose  filing of a U.S.  patent
     application.

                                       9
<PAGE>


C.   The Parties agree to include within the beginning of the  specification  of
     any U.S.  Patent  application  and any patent  issuing  thereon  (including
     foreign Patents)  covering a Subject  Invention,  the following  statement:
     "This  invention  was made under a  Cooperative  Research  and  Development
     Agreement  04-CR-09  between  Applied DNA  Sciences,  Inc. and Bechtel BWXT
     Idaho,  LLC under  Contract  No.  DE-AC07-99ID13727,  awarded by the United
     States  Department  of Energy.  The United  States  Government  has certain
     rights in the invention."

D.   A Party electing title or filing a Patent application in the U.S. or in any
     foreign  country  shall  advise  the  other  Party  and DOE if it no longer
     desires to continue  prosecution,  pay maintenance fees, or retain title in
     the U.S.  or any  foreign  country.  The  other  Party and then DOE will be
     afforded the  opportunity to take title and retain the Patent rights in the
     U.S. or in any such foreign country.

                            ARTICLE XVII: TRADEMARKS
                            ------------------------

The Parties may seek to obtain  Trademark/Service Mark protection on products or
services  generated  under this  CRADA in the U.S.  or  foreign  countries.  The
ownership and other rights relating to Trademarks shall be as mutually agreed to
in writing by the Parties.  The Parties hereby  acknowledge  that the Government
shall have the right to indicate on any similar goods or services produced by or
for the  Government  that such goods or services were derived from and are a DOE
version of the goods or services protected by such  Trademark/Service  Mark with
the Trademark and the owner thereof being specifically identified.  In addition,
the Government shall have the right to use such  Trademark/Service Mark in print
or communications media.

                            ARTICLE XVIII: MASK WORKS
                            -------------------------

Reserved


              ARTICLE XIX: COST OF INTELLECTUAL PROPERTY PROTECTION
              -----------------------------------------------------

Each Party shall be responsible  for payment of all costs relating to Copyright,
Trademark,  and Mask Work filing; U.S. and foreign patent application filing and
prosecution;  and all costs  relating to  maintenance  fees for U.S. and foreign
Patents  hereunder  which  are  solely  owned  by  that  Party.   Government/DOE
laboratory  funds  contributed as DOE's cost share to a CRADA cannot be given to
Participant for payment of Participants costs of filing and maintaining  patents
or filing for Copyrights,  Trademarks,  and Mask Works.  With respect to jointly
owned  Intellectual  Property,  the costs  associated in protecting such jointly
owned Intellectual Property wilt be shared by the Parties as mutually agreed.

                                       10
<PAGE>


                ARTICLE XX: REPORTS OF INTELLECTUAL PROPERTY USE
                ------------------------------------------------

Participant  agrees to submit,  for a period of three (3) years from the date of
termination   or   completion   of  this  CRADA  and  upon  request  of  DOE,  a
nonproprietary  report no more frequently than annually on Participant's efforts
to utilize any Intellectual Property arising under the CRADA.

                        ARTICLE XXI: DOE MARCH-IN RIGHTS
                        --------------------------------

The  Parties  acknowledge  that DOE has certain  march-in  rights to any Subject
Inventions in accordance with 48 CFR 27.304-1(g) and 15 U.S.C.  3710 a (b)(1)(B)
and (C).

                       ARTICLE XXII: U.S. COMPETITIVENESS
                       ----------------------------------

The Parties agree that a purpose of this CRADA is to provide substantial benefit
to the U.S. economy.

A.   In  exchange  for the  benefits  received  under  this  CRADA,  Participant
     therefore agrees to the following:

     (1)  Products  embodying  Intellectual  Property developed under this CRADA
          shall be substantially manufactured in the U. S., and

     (2)  Processes,  services,  and  improvements  thereof which are covered by
          Intellectual Property developed under this CRADA shall be incorporated
          into Participant's  manufacturing  facilities in the U.S. either prior
          to  or  simultaneously  with  implementation  outside  the  U.S.  Such
          processes, services, and improvements, when implemented outside the U.
          S. shall not  result in  reduction  of the use of the same  processes,
          services, or improvements in the U.S.

B.   Contractor agrees to a U.S. Industrial Competitiveness clause in accordance
     with its prime  contract with respect to any licensing and  assignments  of
     its  Intellectual  Property  arising  from  this  CRADA,  except  that  any
     licensing or assignment of its Intellectual  Property rights to Participant
     shall be in accordance with the terms of paragraph A of this article.

                     ARTICLE XXIII: ASSIGNMENT OF PERSONNEL
                     --------------------------------------

A.   Each Party may assign  personnel to the other  Party's  facility as part of
     this CRADA to participate in or observe the research to be performed  under
     this CRADA. Such personnel assigned by the assigning Party shall not during
     the period of such  assignments  be  considered  employees of the receiving
     Party for any purpose.

B.   The receiving Party shall have the right to exercise routine administrative
     and technical supervisory control of the occupational activities of such
     personnel during the assignment period and shall have the right to approve
     the assignment of such personnel and/or to later request their removal by
     the assigning Party.

                                       11
<PAGE>

C.   The  assigning  Party shall bear any and all costs and expenses with regard
     to its personnel  assigned to the receiving  Party's  facilities under this
     CRADA. The receiving Party shall bear facility costs of such assignments.

                          ARTICLE XXIV: FORCE MA.IEURE
                          ----------------------------

No failure or omission by Contractor or  Participant  in the  performance of any
obligation under this CRADA shall be deemed a breach of this CRADA or create any
liability if the same shall arise from any cause or causes beyond the control of
Contractor or  Participant,  including but not limited to the following,  which,
for the  purpose of this  CRADA,  shall be regarded as beyond the control of the
Party in question:  Acts of God,  acts or omissions of any  government or agency
thereof,  compliance with  requirements,  rules,  regulations,  or orders of any
governmental  authority or any office,  department,  agency, or  instrumentality
thereof,  fire, storm, flood,  earthquake,  accident,  acts of the public enemy,
war, rebellion, insurrection, riot, sabotage, invasion, quarantine, restriction,
transportation embargoes, or failures or delays in transportation.

                      ARTICLE XXV: ADMINISTRATION OF CRADA
                      ------------------------------------

Contractor enters into this CRADA under the authority of its prime contract with
DOE.  Contractor is authorized to and will administer this CRADA in all respects
unless otherwise specifically provided for herein.  Administration of this CRADA
may be  transferred  from  Contractor to DOE or its designee with notice of such
transfer to Participant,  and Contractor shall have no further  responsibilities
except for the confidentiality,  use, and/or non-disclosure  obligations of this
CRADA.

          ARTICLE XXVI: RECORDS AND ACCOUNTING FOR GOVERNMENT PROPERTY
          ------------------------------------------------------------

Participant   shall  maintain  records  of  receipts,   expenditures,   and  the
disposition of all Government property in its custody related to this CRADA.

                             ARTICLE XX VII: NOTICES
                             -----------------------

A.   Any  communications  required  by this CRADA,  if given by postage  prepaid
     first class U.S. Mail or other  verifiable  means addressed to the Party to
     receive the communication, shall be deemed made as of the day of receipt of
     such  communication  by the addressee,  or on the date given if by verified
     facsimile.  Address  changes shall be given in accordance with this Article
     and  shall  be  effective  thereafter.  All  such  communications,   to  be
     considered effective, shall include the number of this CRADA.

B.   The addresses,  telephone numbers and facsimile numbers for the Parties are
     as follows:

       For Contractor:                     For Participant:

       Agreements Administrator            Chief Technology Officer
       Technology Outreach                 Applied DNA Sciences, Inc.
       Bechtel BWXT Idaho, LLC             9255 W. Sunset Blvd., Ste. 830
       2525 N. Fremont Ave.                Los Angeles, CA 90069
       P.O. Box 1625, M.S. 3805            Phone: (310) 860-1362
       Idaho Falls, ID 83415-3805          Fax: (310) 860-1303
       E-mail: agradmin@inel.gov
       Phone: (208) 526-6141
       Fax: (208) 526-0953

                                       12
<PAGE>


                            ARTICLE XXVIII: DISPUTES
                            ------------------------

The Parties  shall  attempt to jointly  resolve all  disputes  arising from this
CRADA.  If the  Parties  are  unable  to  jointly  resolve  a  dispute  within a
reasonable  period of time, the dispute shall be decided by the DOE  Contracting
Officer,  who shall reduce his/her decision to writing within sixty (60) days of
receiving  in writing the request for a decision by either  Party to this CRADA.
The DOE  Contracting  Officer  shall  mail or  otherwise  furnish  a copy of the
decision to the Parties.  The decision of the DOE  Contracting  Officer is final
unless,  within 120 days,  Participant  brings an action for  adjudication  in a
court of competent  jurisdiction in the State of Idaho. To the extent that there
is no applicable U.S.  Federal law, this CRADA and performance  thereunder shall
be governed by the law of the State of Idaho.

                  ARTICLE XXIX: ENTIRE CRADA AND MODIFICATIONS
                  --------------------------------------------

A.   Except for a  nondisclosure  agreement  between the Parties,  if any,  this
     CRADA with its appendixes contains the entire agreement between the Parties
     with  respect  to  the  subject   matter   hereof,   and  all  other  prior
     representations  or agreements  relating  hereto have been merged into this
     document  and are thus  superseded  in totality  by this CRADA.  This CRADA
     shall not be effective until approved by DOE and signed by the Parties.

B.   Any agreement to materially change any terms or conditions of this CRADA or
     the  appendices  shall  be valid  only if the  change  is made in  writing,
     executed by the Parties hereto, and approved by DOE.

                            ARTICLE XXX: TERMINATION
                            ------------------------

This CRADA may be  terminated  by either  Party upon  ninety  (90) days  written
notice to the other Party.  This CRADA may also be terminated by the  Contractor
in the event of failure by the  Participant  to provide  the  necessary  advance
funding, as agreed in Article III.

In the event of termination by either Party, each Party shall be responsible for
its share of the costs incurred  through the effective date of  termination,  as
well as its share of the costs incurred after the effective date of termination,
and which are related to the termination.


                                       13
<PAGE>


The confidentiality,  use, and/or non-disclosure obligations of this CRADA shall
survive any termination of this CRADA.

FOR BECHTEL BWXT IDAHO, LLC                 FOR APPLIED DNA SCIENCES, INC.

BY:   /S/ A. RAY BARNES                     BY:   /s/ PAUL J. REEP
      -----------------                         ----------------
      A. Ray Barnes                             Paul J. Reep
      Director, Technology Outreach             Chief Technology Officer

DATE: September 2, 2004                         DATE: September 2, 2004




                                       14
<PAGE>




                                   APPENDIX A

                                STATEMENT OF WORK

                  ENHANCED DEVELOPMENT OF DNA-EMBEDDED SECURITY

                                   TECHNOLOGY

                               CRADA NO. 04-04-09

A.   Scope of Work

Participant  has  proprietary   DNA-embedded   security   technology   based  on
combinations of and assay methods for unique plant DNA security sequences.  This
technology can verify authenticity and protect corporate and government agencies
from  counterfeiting,  fraud,  piracy,  product  diversion,  identify  theft and
unauthorized intrusion.  Under this CRADA,  Participant and Contractor will work
together to adapt Participant and Contractor DNA-embedded security technology to
a wide range of applications relevant to DOE and Homeland Security needs.

Collaborative  research and  development  (R&D) that  utilizes the  Contractor's
biology,  chemistry and sensing  capabilities  have been  identified and will be
used to carry out the scope of work for this CRADA.  Contractor  will contribute
to the  characterization  of the DNA  security  technology  and  its  adaptation
leading to a more rapid detection assays and sensor systems.

The  scope  of work  will be  carried  out by BBWI in  three  phases  and may be
continued based on the outcome of the second and/or third phase.

     (1)  Phase I ($50K funds-in)

          The physical  characteristics of the materials associated with the DNA
          tag will be characterized. For example, the matrix's functional groups
          with  potential  for linking  rapid assay  tagging  molecules  will be
          analyzed.  The outcome of this  analysis  will provide the  background
          information  needed to select the  appropriate  path forward.  Phase I
          will define the physical and chemical properties that are critical for
          selecting   development   paths  that  best  complement  the  existing
          DNA-embedded  security  technology.  Our  objective  is  to  use  this
          information  to identify,  prioritize  and define  specific  technical
          paths that can most readily lead to the deployment of rapid  detection
          methods and systems.

     (2)  Phase II ($100K funds-in)

          Using the  baseline  data derived from Phase I, develop a strategy and
          define methods for increasing the rapidity with which materials can be
          collected,  extracted  and rapidly  assayed.  Given the  physical  and
          chemical  characteristics  of the matrix material,  determine the most
          effective method of applying  antigens to the base matrix material and
          rapidly  detecting  them. In an analogous way, assess the viability of
          alternative  tagging  agents and/or  coatings or additives for optical
          recognition.  Refine and begin implementing the Research & Development
          strategy for Phase III.

                                       15
<PAGE>

     (3)  Phase III ($100K funds-in)

          Develop and test rapid detection methods and sensors defined by Phases
          I and II. In  addition,  develop  alternatives  and  improvements  for
          forensic testing equipment specific to the DNA marker product. Because
          the DNA marker embody similar  botanical  genotypes and share in their
          encapsulation  chemistry,  a simplified sample preparation method will
          be sought as well as improvements  to the front-end  protocols for DNA
          extraction  and isolation  which  improve speed and  efficiency of PCR
          technology.

     Further develop and refine the selected applications.

Timeline:
<TABLE>
<CAPTION>
<S>                                                         <C>           <C>                <C>                        <C>
------------------------------------------------------ --------------- --------------- ----------------------------- ---------------
                                                       1st Month       2nd Month       3rd, 4th and 5th Months       Follow-on work
------------------------------------------------------ --------------- --------------- ----------------------------- ---------------
                       FUNDING                         $50K            $100K           $100K                         TBD
                       -------
------------------------------------------------------ --------------- --------------- ----------------------------- ---------------
Task I: Characterize the physical and functional       [-----------]                                                 TBD
properties of matrix material and prioritize
opportunities.
------------------------------------------------------ --------------- --------------- ----------------------------- ---------------
Task II: Define path forward and begin implementing                    [-----------]                                 TBD
the rapid detection strategy.
------------------------------------------------------ --------------- --------------- ----------------------------- ---------------
Task  III:  Setup  and  demonstrate  rapid  detection                                  [--------------------------]  TBD
proof-of-principle.
------------------------------------------------------ --------------- --------------- ----------------------------- ---------------
</TABLE>


                                       16
<PAGE>




                                   APPENDIX B

                        BACKGROUND INTELLECTUAL PROPERTY

                  ENHANCED DEVELOPMENT OF DNA-EMBEDDED SECURITY
                                   TECHNOLOGY

                               CRADA NO. 04-CR-09

A.   Contractor Background Intellectual Property

     BBWI  Invention  Disclosure  Record  No.B-441,   Tagging  Currency  Through
     Automated Teller Machines (ATMs), submitted July 30, 2003.

B.   Participant Background Intellectual Property

     (1)  U.S.  Provisional  Patent  Application  No.  60-463,215  "A System and
          Method for Marking Textiles Using DNA" filed April 16, 2003.

     (2)  U.S.  Utility Patent  Application  No.  10/825,968  and  International
          Application  No.  PCT/US2004/12031  "System  and  Method  for  Marking
          Textiles with Nucleic Acid," both filed April 15, 2004.

     (3)  U.S.  Provisional Patent Application No. 60/538,490 `System and Method
          for  Authenticating  Clients on a Local  Area  Network  Using  Nucleic
          Acids" Filed January 21, 2004.

                                       17
</TEXT>
</DOCUMENT>
