PROMISSORY
NOTE AMENDMENT No. 4


 


This
PROMISSORY NOTE AMENDMENT NO. 4 (the “Amendment”) is made as of May 31, 2017 (the “Amendment Date”)
by and between DOCUMENT SECURITY SYSTEMS, INC. (the “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 CONGREGATION NOAM ELIMELECH
(the “Lender”).


 


This
Amendment amends the Promissory Note (“Note”), dated May 24, 2013, 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) December 31, 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 9% 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.


 


	 	CONGREGATION NOAM ELIMELECH (Lender)	 
	 	 	 	 
	 	/s/
    Mayer Laufer	 
	 	By:	Mayer
    Laufer	 
	 	Title:	President	 
	 	 	 	 
	 	DOCUMENT SECURITY SYSTEMS, INC. (Borrower)	 
	 	 	 
	 	/s/
    Philip Jones	 
	 	By:	Philip
    Jones	 
	 	Title:	Chief
    Financial Officer	 


 




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Exhibit
A


 


Payment
Schedule


 


	$850,000
    Promissory Note with Congregation Noam Elimelech Dated May 24, 2013 due May 31, 2017- extension until December 31, 2018


 


	Beginning Balance	 	Principal Payment	 	 	$ 850,000	 	 	Interest	 	 	Interest due	 
	1/31/2015	 	 	 	 	 	 	 	 	 	 	9	%	 	 	6,375	 
	2/28/2015	 	$	15,000	 	 	 	835,000	 	 	 	9	%	 	 	6,375	 
	3/31/2015	 	$	15,000	 	 	 	820,000	 	 	 	9	%	 	 	6,263	 
	4/30/2015	 	$	15,000	 	 	 	805,000	 	 	 	9	%	 	 	6,150	 
	5/31/2015	 	$	15,000	 	 	 	790,000	 	 	 	9	%	 	 	6,038	 
	6/30/2015	 	$	15,000	 	 	 	775,000	 	 	 	9	%	 	 	5,925	 
	7/31/2015	 	$	15,000	 	 	 	760,000	 	 	 	9	%	 	 	5,813	 
	8/31/2015	 	$	15,000	 	 	 	745,000	 	 	 	9	%	 	 	5,700	 
	9/30/2015	 	$	15,000	 	 	 	730,000	 	 	 	9	%	 	 	5,588	 
	10/31/2015	 	$	15,000	 	 	 	715,000	 	 	 	9	%	 	 	5,475	 
	11/30/2015	 	$	15,000	 	 	 	700,000	 	 	 	9	%	 	 	5,363	 
	12/31/2015	 	$	15,000	 	 	 	685,000	 	 	 	9	%	 	 	5,250	 
	1/31/2016	 	$	15,000	 	 	 	670,000	 	 	 	9	%	 	 	5,138	 
	2/29/2016	 	$	15,000	 	 	 	655,000	 	 	 	9	%	 	 	5,025	 
	3/31/2016	 	$	15,000	 	 	 	640,000	 	 	 	9	%	 	 	4,913	 
	4/30/2016	 	$	15,000	 	 	 	625,000	 	 	 	9	%	 	 	4,800	 
	5/31/2016	 	$	15,000	 	 	 	610,000	 	 	 	9	%	 	 	4,688	 
	6/30/2016	 	$	15,000	 	 	 	595,000	 	 	 	9	%	 	 	4,575	 
	7/31/2016	 	$	15,000	 	 	 	580,000	 	 	 	9	%	 	 	4,463	 
	8/31/2016	 	$	15,000	 	 	 	565,000	 	 	 	9	%	 	 	4,350	 
	9/30/2016	 	$	15,000	 	 	 	550,000	 	 	 	9	%	 	 	4,238	 
	10/31/2016	 	$	15,000	 	 	 	535,000	 	 	 	9	%	 	 	4,125	 
	11/30/2016	 	$	15,000	 	 	 	520,000	 	 	 	9	%	 	 	4,013	 
	12/31/2016	 	$	15,000	 	 	 	505,000	 	 	 	9	%	 	 	3,900	 
	1/31/2017	 	$	15,000	 	 	 	490,000	 	 	 	9	%	 	 	3,788	 
	2/28/2017	 	$	15,000	 	 	 	475,000	 	 	 	9	%	 	 	3,675	 
	3/31/2017	 	$	15,000	 	 	 	460,000	 	 	 	9	%	 	 	3,563	 
	4/30/2017	 	$	15,000	 	 	 	445,000	 	 	 	9	%	 	 	3,450	 
	5/31/2017	 	$	15,000	 	 	 	430,000	 	 	 	9	%	 	 	3,338	 
	Extension	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6/30/2017	 	$	15,000	 	 	 	415,000	 	 	 	9	%	 	 	3,225	 
	7/31/2017	 	$	15,000	 	 	 	400,000	 	 	 	9	%	 	 	3,113	 
	8/31/2017	 	$	15,000	 	 	 	385,000	 	 	 	9	%	 	 	3,000	 
	9/30/2017	 	$	15,000	 	 	 	370,000	 	 	 	9	%	 	 	2,888	 
	10/31/2017	 	$	15,000	 	 	 	355,000	 	 	 	9	%	 	 	2,775	 
	11/30/2017	 	$	15,000	 	 	 	340,000	 	 	 	9	%	 	 	2,663	 
	12/31/2017	 	$	15,000	 	 	 	325,000	 	 	 	9	%	 	 	2,550	 
	1/31/2018	 	$	15,000	 	 	 	310,000	 	 	 	9	%	 	 	2,438	 
	2/28/2018	 	$	15,000	 	 	 	295,000	 	 	 	9	%	 	 	2,325	 
	3/31/2018	 	$	15,000	 	 	 	280,000	 	 	 	9	%	 	 	2,213	 
	4/30/2018	 	$	25,000	 	 	 	255,000	 	 	 	9	%	 	 	2,100	 
	5/31/2018	 	$	30,000	 	 	 	225,000	 	 	 	9	%	 	 	1,913	 
	6/30/2018	 	$	30,000	 	 	 	195,000	 	 	 	9	%	 	 	1,688	 
	7/31/2018	 	$	30,000	 	 	 	165,000	 	 	 	9	%	 	 	1,463	 
	8/31/2018	 	$	30,000	 	 	 	135,000	 	 	 	9	%	 	 	1,238	 
	9/30/2018	 	$	30,000	 	 	 	105,000	 	 	 	9	%	 	 	1,013	 
	10/31/2018	 	$	30,000	 	 	 	75,000	 	 	 	9	%	 	 	788	 
	11/30/2018	 	$	30,000	 	 	 	45,000	 	 	 	9	%	 	 	563	 
	12/31/2018	 	$	45,000	 	 	 	-	 	 	 	9	%	 	 	338	 



 




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