CONVERTIBLE
PROMISSORY NOTE AMENDMENT No. 4


 


This
CONVERTIBLE PROMISSORY NOTE AMENDMENT NO. 4 (the “Amendment”) is made as of May 31, 2017 (the “Amendment
Date”) by and between DOCUMENT SECURITY SYSTEMS, INC. (“Borrower”), a corporation formed under the
laws of the State of New York, with offices at 200 Canal View Boulevard, Suite 300, Rochester, New York 14623 and MAYER LAUFER
(“Lender”).


 


This
Amendment amends the Convertible Promissory Note (“Note”), dated December 30, 2011, made among Borrower and
Lender, as follows. All capitalized terms used herein without definition shall have the meanings ascribed to them in the Note.


 


The
parties agree as follows:


 


1.
Section 1 of the Note shall be, and hereby is, amended to read in its entirety as follows:


 


	 	“1.	Maturity.
    The aggregate outstanding Principal Amount, together with all accrued interest thereon and expenses incurred by the Lender
    in connection herewith (cumulatively, the “Outstanding Amount”), shall be due and payable in full on the earliest
    to occur of (the earliest of such events being the “Maturity Date”): (i) April 30, 2018 (the “Scheduled
    Maturity Date”) and (ii) the acceleration of this Note upon the occurrence of an Event of Default.”


 


2.
Section 2 of the Note shall be, and hereby is, amended to read in its entirety as follows:


 


	 	“2.	Principal
    and Interest. Borrower shall continue to make principal payments in accordance with the attached Exhibit A (“Payment
    Schedule”) until the Maturity Date. In addition to the monthly principal payments, Borrower shall make monthly interest
    payments which shall accrue on the then outstanding balance of the Principal Amount at a fixed interest rate equal to 10%
    per annum. Accrued interest shall be payable in cash in arrears on the last day of each calendar month until the Principal
    Amount is paid in full. If at any time the outstanding Principal Amount shall be paid in full, then all accrued interest shall
    be payable at the time of such principal payment.”


 


3. Note
Ratified. Except as expressly amended hereby, the Note and previously executed amendments thereto are in all respects
ratified and confirmed, and all of the terms, provisions and conditions thereof shall be and remain in full force and effect,
and this Amendment and all of its terms, provisions and conditions shall be deemed to be a part of the Note.


 


4. No
Events of Default. The Borrower confirms that, as of the date hereof, there exists no condition or event that
constitutes (or that would after expiration of applicable grace or cure periods constitute) an Event of Default.


 




    	 	 	 



    	 		 



    


 


5. Costs
and Expenses. Borrower agrees to pay any and all reasonable costs incurred in connection with preparation for closing,
the closing, and post-closing items relating to this Amendment.


 


6. Governing
Law. This Amendment, together with all of the rights and obligations of the parties hereto, shall be construed and
interpreted in accordance with the laws of the State of New York, excluding the laws applicable to conflicts or choice of
law.


 


IN
WITNESS WHEREOF, the parties have caused this Amendment to be executed by their duly authorized representatives by their signatures
below. 


 


	 	LENDER	 
	 	 	 
	 	/s/ Mayer
    Laufer	 
	 	Mayer
    Laufer	 


 


	DOCUMENT
    SECURITY SYSTEMS, INC. (Borrower)	 
	 	 	 
	By:	/s/ Philip
    Jones	 
	Name:	Philip
    Jones	
	Title:	Chief
    Financial Officer	


 




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Exhibit
A


 


Payment
Schedule


 


	$575,000 Convertible Promissory Note with Mayer Laufer Dated December 30, 2011 due May 31, 2017- extension until April 30, 2018
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Beginning Balance	 	Principal Payment	 	 	$ 575,000	 	 	Interest	 	 	Interest due	 
	1/31/2015	 	 	 	 	 	 	 	 	 	 	10	%	 	 	4,792	 
	2/28/2015	 	$	15,000	 	 	 	560,000	 	 	 	10	%	 	 	4,792	 
	3/31/2015	 	$	15,000	 	 	 	545,000	 	 	 	10	%	 	 	4,667	 
	4/30/2015	 	$	15,000	 	 	 	530,000	 	 	 	10	%	 	 	4,542	 
	5/31/2015	 	$	15,000	 	 	 	515,000	 	 	 	10	%	 	 	4,417	 
	6/30/2015	 	$	15,000	 	 	 	500,000	 	 	 	10	%	 	 	4,292	 
	7/31/2015	 	$	15,000	 	 	 	485,000	 	 	 	10	%	 	 	4,167	 
	8/31/2015	 	$	15,000	 	 	 	470,000	 	 	 	10	%	 	 	4,042	 
	9/30/2015	 	$	15,000	 	 	 	455,000	 	 	 	10	%	 	 	3,917	 
	10/31/2015	 	$	15,000	 	 	 	440,000	 	 	 	10	%	 	 	3,792	 
	11/30/2015	 	$	15,000	 	 	 	425,000	 	 	 	10	%	 	 	3,667	 
	12/31/2015	 	$	15,000	 	 	 	410,000	 	 	 	10	%	 	 	3,542	 
	1/31/2016	 	$	15,000	 	 	 	395,000	 	 	 	10	%	 	 	3,417	 
	2/29/2016	 	$	15,000	 	 	 	380,000	 	 	 	10	%	 	 	3,292	 
	3/31/2016	 	$	15,000	 	 	 	365,000	 	 	 	10	%	 	 	3,167	 
	4/30/2016	 	$	15,000	 	 	 	350,000	 	 	 	10	%	 	 	3,042	 
	5/31/2016	 	$	15,000	 	 	 	335,000	 	 	 	10	%	 	 	2,917	 
	6/30/2016	 	$	15,000	 	 	 	320,000	 	 	 	10	%	 	 	2,792	 
	7/31/2016	 	$	15,000	 	 	 	305,000	 	 	 	10	%	 	 	2,667	 
	8/31/2016	 	$	15,000	 	 	 	290,000	 	 	 	10	%	 	 	2,542	 
	9/30/2016	 	$	15,000	 	 	 	275,000	 	 	 	10	%	 	 	2,417	 
	10/31/2016	 	$	15,000	 	 	 	260,000	 	 	 	10	%	 	 	2,292	 
	11/30/2016	 	$	15,000	 	 	 	245,000	 	 	 	10	%	 	 	2,167	 
	12/31/2016	 	$	15,000	 	 	 	230,000	 	 	 	10	%	 	 	2,042	 
	1/31/2017	 	$	15,000	 	 	 	215,000	 	 	 	10	%	 	 	1,917	 
	2/28/2017	 	$	15,000	 	 	 	200,000	 	 	 	10	%	 	 	1,792	 
	3/31/2017	 	$	15,000	 	 	 	185,000	 	 	 	10	%	 	 	1,667	 
	4/30/2017	 	$	15,000	 	 	 	170,000	 	 	 	10	%	 	 	1,542	 
	5/31/2017	 	$	15,000	 	 	 	155,000	 	 	 	10	%	 	 	1,417	 
	Extension	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6/30/2017	 	$	15,000	 	 	 	140,000	 	 	 	10	%	 	 	1,292	 
	7/31/2017	 	$	15,000	 	 	 	125,000	 	 	 	10	%	 	 	1,167	 
	8/31/2017	 	$	15,000	 	 	 	110,000	 	 	 	10	%	 	 	1,042	 
	9/30/2017	 	$	15,000	 	 	 	95,000	 	 	 	10	%	 	 	917	 
	10/31/2017	 	$	15,000	 	 	 	80,000	 	 	 	10	%	 	 	792	 
	11/30/2017	 	$	15,000	 	 	 	65,000	 	 	 	10	%	 	 	667	 
	12/31/2017	 	$	15,000	 	 	 	50,000	 	 	 	10	%	 	 	542	 
	1/31/2018	 	$	15,000	 	 	 	35,000	 	 	 	10	%	 	 	417	 
	2/28/2018	 	$	15,000	 	 	 	20,000	 	 	 	10	%	 	 	292	 
	3/31/2018	 	$	15,000	 	 	 	5,000	 	 	 	10	%	 	 	167	 
	4/30/2018	 	$	5,000	 	 	 	-	 	 	 	10	%	 	 	42	 



 




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