<PAGE>

                                                                    Exhibit 10.2


                [NAME OF RELEVANT GROSS ROYALTY INTEREST HOLDER]
                       (AS THE "RELEVANT INTEREST HOLDER")


                                       AND


                         DOCUMENT SECURITY SYSTEMS, INC.
                               (AS THE "ASSIGNEE")















                       SURRENDER AND ASSIGNMENT AGREEMENT

                                  relating to:

the surrender and assignment of certain interests in various intellectual
property rights











                         DOCUMENT SECURITY SYSTEMS, INC.
                               FIRST FEDERAL PLAZA
                                   SUITE 1525
                               28 EAST MAIN STREET
                                    ROCHESTER
                                 NEW YORK 14614

<PAGE>

                                TABLE OF CONTENTS

                                                                           PAGE

1.       Definitions and Interpretation.......................................1

2.       Surrender and Assignment of Interests................................4

3.       Representations, Warranties and Indemnities..........................5

4.       Further Assurance....................................................7

5.       Non-Competition......................................................7

6.       Legal Advice.........................................................8

7.       Confidentiality......................................................8

8.       Governing Law........................................................9

Schedule 1...................................................................10

Schedule 2...................................................................12

Schedule 3...................................................................14

Schedule 4...................................................................17

Schedule 5...................................................................19

                                       -i-
<PAGE>

THIS AGREEMENT is made

BETWEEN:

(1)      [NAME OF RELEVANT GROSS ROYALTY INTEREST HOLDER], of [INSERT RELEVANT
         ADDRESS DETAILS], (the "RELEVANT INTEREST HOLDER"); and

(2)      DOCUMENT SECURITY SYSTEMS, INC., a company incorporated in the State of
         New York whose principal place of business is at First Federal Plaza,
         Suite 1525, 28 East Main Street, Rochester, New York 14614, (the
         "ASSIGNEE").

WHEREAS:

(A)      The Relevant Interest Holder is the holder of certain Interests (as
         defined below) in the Relevant IPR (as defined below).

(B)      The Relevant Interest Holder is willing to and has agreed to surrender
         and assign to the Assignee and the Assignee wishes and has agreed to
         accept the surrender and assignment of all right, goodwill, title and
         interest in and to the Interests of the Relevant Interest Holder in
         accordance with the terms and conditions of this Agreement.

IT IS AGREED THAT:

1.       DEFINITIONS AND INTERPRETATION

1.1      In this Agreement the following words and expressions shall have the
         following meanings unless the context otherwise requires:

         1.1.1    "ASSIGNORS" shall mean the Estate, Mary Wicker, Thomas Wicker,
                  Christine Wicker, Kenneth Wicker, David Wicker and Michael
                  Caton;

         1.1.2    "DEED OF ASSIGNMENT" shall mean the deed of assignment in
                  respect of the Assignors' Interests in the Relevant IPR from
                  the Assignors to the Assignee;

         1.1.3    "ESTATE" shall mean collectively Ralph C. Wicker and the
                  Estate of Ralph C. Wicker;

         1.1.4    "FELKER GROUP" shall mean Thomas S. Felker, Cord Harms Zum
                  Spreckel, Nathaniel Whiteside (personally and as the assignee
                  of the Midwest Bank Note Company), T&T Associates, Inc. and
                  Midwest Bank Note Company;

         1.1.5    "FELKER IPR" shall mean those patents, patent applications and
                  other rights, details of which are included at Schedule 2 to
                  this Agreement;

         1.1.6    "FELKER IPR INTERESTS" shall mean the interests in the Felker
                  IPR owned by the Felker Group and the Estate;

         1.1.7    "FELKER ROYALTIES" shall mean the royalties or payments due or
                  payable in respect of the Felker IPR, or arising by reason of
                  an Interest in the Felker IPR;

                                       1
<PAGE>


         1.1.8    "FELKER ROYALTY INTEREST HOLDERS" shall mean the Felker Group
                  and the Wicker Patents Owners (except for Moore North America,
                  Inc.);

         1.1.9    "FELKER ROYALTY INTERESTS" shall mean the percentage interests
                  in the Felker Royalties owned by each of the Felker Royalty
                  Interest Holders respectively;

         1.1.10   "GROSS ROYALTIES" shall mean the gross royalties or payments
                  due or payable in respect of the Relevant IPR;

         1.1.11   "GROSS ROYALTY INTEREST HOLDERS" shall mean the Estate, SMW
                  Patent Corp., the Assignee, the Felker Group, Thomas Wicker,
                  Neal Eckhardt, Thomas A. Gruber, J. Casey Randall, Jerry
                  Poluch, Michael McDonough, Christine Wicker, Kenneth Wicker,
                  David Wicker and Michael Caton;

         1.1.12   "GROSS ROYALTY INTERESTS" shall mean the percentage interests
                  in the Gross Royalties owned by each of the Gross Royalty
                  Interest Holders respectively;

         1.1.13   "INTELLECTUAL PROPERTY RIGHTS" shall mean all copyrights
                  (including rights in computer software), moral rights, patents
                  and patent applications, rights in inventions (whether
                  patentable or not), utility models, trade marks (whether
                  registered or unregistered and including any goodwill in such
                  trade marks), service marks, trade names, business names,
                  internet domain names, e-mail address names, design rights
                  (whether registered or unregistered), database rights,
                  semiconductor topography rights, proprietary information
                  rights, rights in know how, rights in confidential information
                  and all other intellectual property rights, whether registered
                  or unregistered and including applications for any of the same
                  and all other similar or equivalent proprietary rights and
                  intellectual property rights as may exist anywhere in the
                  world;

         1.1.14   "INTEREST HOLDERS" shall mean the Estate, the Wicker Patent
                  Owners, the Felker Group, the Gross Royalty Interest Holders,
                  the Net Royalty Interest Holders, the Felker Royalty Interest
                  Holders, Michael Caton, SDS and the Wicker Family, further
                  details of which are set out at Schedule 4 to this Agreement;

         1.1.15   "INTERESTS" shall mean the various rights and interests held
                  by the Interest Holders variously in and to the Wicker
                  Patents, the Felker IPR, the Gross Royalties, the Net
                  Royalties and the Felker Royalties, as the case may be,
                  including, without limitation the Wicker Patents Interests,
                  the Felker IPR Interests, the Gross Royalty Interests, the Net
                  Royalty Interests, the Felker Royalty Interests, the SDS
                  Interest and the Wicker Family Interests, certain further
                  details of which are set out at Schedule 3 to this Agreement,
                  together with any additional rights, economic or otherwise,
                  whether beneficial interests, rights held in trust, rights
                  howsoever arising to grant licences and/or sub-licences or
                  otherwise benefit from licences and/or sub-licences, rights to
                  receive monies, or rights to monies arising from the use or
                  sale of any of the Relevant IPR and any other rights or
                  interests of the Interest Holders variously in and to the
                  Wicker Patents, the Felker IPR, the Gross Royalties, the Net
                  Royalties, the Felker Royalties, any other Relevant IPR and
                  any of the Wicker Patents Interests, the Felker IPR Interests,
                  the Gross Royalty Interests, the Net Royalty Interests, the
                  Felker Royalty Interests, the SDS Interest and/or the Wicker
                  Family Interests;

                                       2
<PAGE>

         1.1.16   "NET ROYALTIES" shall mean the net royalty payments or
                  payments due or payable in respect of the Relevant IPR;

         1.1.17   "NET ROYALTY INTEREST HOLDERS" shall mean the Estate, Thomas
                  O' Donaghue, Estate of Lawrence Decker, Charles Girthler, II,
                  Charles Girthler, III, Ralph Tipple, Robert Ford, CPA, Michael
                  O'Hara, Denise Shaw, Michael O'Donaghue, Richard Saur, Judy
                  Solaro Graves, Alexander Picozzi, Joseph Cameron, David
                  Scheftic, Patrick White(1), James Hartman, Esq., Jerome
                  Halbert, Tina and Anthony D'Angelo, Estate of Clark Snyder,
                  David Andolina, Electa Daniels, Robert Gardner, Raymond
                  McHargue, Loren Edward Osborn, Thomas Monks, Ann Young, Alex
                  Chiosa, Gerald Laraby, Bradley Harcourt, Douglas Dublin,
                  Richard Johnson, Richard Kintz, Gary Maneeley, Jill Warren,
                  Dorothy Gans Herrera and Nancy Dimmick;

         1.1.18   "NET ROYALTY INTERESTS" shall mean the percentage interests in
                  the Net Royalties owned by each of the Net Royalty Interest
                  Holders respectively;

         1.1.19   "RELEVANT IPR" shall mean any and all rights in and to the
                  Wicker Patents and the Felker IPR and all rights in know how,
                  trade secrets and other Intellectual Property Rights
                  associated with or relating to the actual or potential use of
                  the Wicker Patents and/or the Felker IPR;

         1.1.20   "SDS" shall mean Secured Document Systems, Inc., its
                  shareholders and Harry Gersey, and in each case, their
                  respective successors and assigns;

         1.1.21   "SDS INTEREST" shall mean all Interests of SDS including,
                  without limitation, all Interests of SDS not specifically
                  referred to within Schedule 3 to this Agreement in respect of
                  the Wicker Patents, the Felker IPR, the Gross Royalties, the
                  Net Royalties, the Felker Royalties and any other Relevant
                  IPR;

         1.1.22   "SHARES" shall mean the fully paid up issued common shares of
                  the Assignee;

         1.1.23   "SMW PATENT CORP." shall mean SMW Patent Corp. and its
                  shareholders and in each case, their respective successors and
                  assigns;

         1.1.24   "WICKER FAMILY" shall mean all living members of the family of
                  Ralph C. Wicker including, without limitation, Mary Wicker,
                  Thomas Wicker, Christine Wicker, Kenneth Wicker and David
                  Wicker;

         1.1.25   "WICKER FAMILY INTERESTS" shall mean all Interests of the
                  Wicker Family including, without limitation, Interests of the
                  Wicker Family not specifically referred to within Schedule 3
                  to this Agreement in respect of the Wicker Patents, the Felker
                  IPR, the Gross Royalties, the Net Royalties, the Felker
                  Royalties, and any other Relevant IPR;

-----------------------------
(1) The Net Royalty Interest of Patrick White has been previously acquired by
    the Assignee in July 2002.

                                       3
<PAGE>

         1.1.26   "WICKER PATENTS" shall mean all of those patents and patent
                  applications details of which are included at Schedule 1 to
                  this Agreement;

         1.1.27   "WICKER PATENTS INTERESTS" shall mean the percentage interests
                  in the Wicker Patents owned by each of the Wicker Patents
                  Owners respectively; and

         1.1.28   "WICKER PATENTS OWNERS" shall mean the Estate, SMW Patent
                  Corp., Thomas Wicker, Frederic T. Morelle, Moore North
                  America, Inc. and the Assignee.

2.       SURRENDER AND ASSIGNMENT OF INTERESTS

2.1      In consideration of the allotment of [INSERT RELEVANT NUMBER OF SHARES
         TO BE ALLOCATED TO THE RELEVANT INTEREST HOLDER] Shares to the Relevant
         Interest Holder, the receipt and sufficiency of which the Relevant
         Interest Holder hereby acknowledges, the Relevant Interest Holder
         agrees as set out at Clauses 2.2 through 2.5 below.

2.2      The Relevant Interest Holder HEREBY SURRENDERS AND ASSIGNS and shall
         procure the surrender and assignment of with full title guarantee to
         the Assignee or its nominee absolutely any and all of the Relevant
         Interest Holder's rights, title and interest in and to:

         2.2.1    the Gross Royalty Interests, any other Relevant IPR and any
                  Interests; and

         2.2.2    all and any rights, privileges and advantages of the Relevant
                  Interest Holder in and to the Gross Royalty Interests, any
                  other Relevant IPR and any Interests and any common law rights
                  attaching to the Gross Royalty Interests, other Relevant IPR
                  and any Interests in accordance with the terms and conditions
                  of this Agreement.

2.3      This surrender and assignment referred to in Clause 2.2 above shall
         include the right for the Assignee to bring proceedings against any
         third party in respect of the Gross Royalty Interests, other Relevant
         IPR and/or any Interests (including proceedings against any third party
         for infringement of the Gross Royalty Interests, other Relevant IPR
         and/or any Interests, or for otherwise infringing the rights of the
         Relevant Interest Holder in the Gross Royalty Interests, other Relevant
         IPR and/or Interests, whether such infringement occurred before or
         after the date of this Agreement) and so claim damages and other forms
         of relief therefore in its own name. The Relevant Interest Holder
         agrees and undertakes to provide, and procure the provision of, to the
         Assignee (at its request) all such assistance with any proceedings
         which may be brought by or against the Assignee against or by any third
         party in relation to the Gross Royalty Interests, other Relevant IPR
         and/or Interests.

2.4      [The Shares to be transferred to the Relevant Interest Holder pursuant
         to Clause 2.1 above shall only be issued to the Relevant Interest
         Holder once the following have occurred: (a) each member of the Felker
         Group except for Nathaniel Whiteside and the Midwest Bank Note Company
         has executed a copy of an agreement on substantially the same terms as
         this Agreement and the rights in the Interests of each member of the
         Felker Group have been assigned to the Assignee and such assignments
         have been completed and perfected, (b) SMW Patent Corp. and each of its
         shareholders has executed a copy of an agreement on substantially the
         same terms as this Agreement and the rights in the Interests of SMW
         Patent Corp. and each of its shareholders have been assigned to the
         Assignee and such assignments have been completed and perfected, (c)
         each Assignor has executed the Deed of Assignment and the rights in the
         Interests of each Assignor have been assigned to the Assignee and such
         assignments have been completed and perfected, and (d) at least fifty
         percent (50%) of the Interest Holders holding Net Royalty Interests and
         Gross Royalty Interests (other than members of the Felker Group, SMW
         Patent Corp. and its shareholders and the Assignors) shall have
         executed a copy of an agreement on substantially the same terms as this
         Agreement, and the rights in the Interests of such Interest Holders
         have been assigned to the Assignee and such assignment has been
         completed and perfected.

                                       4
<PAGE>

2.5      The Relevant Interest Holder hereby surrenders, releases and assigns to
         the Assignee all claims of any nature that the Relevant Interest Holder
         may have in respect of the Relevant IPR, the Interests, the Assignee,
         the Assignors, the Wicker Family and/or the Estate in any way and
         acknowledges and agrees that, following execution of this Agreement,
         the Relevant Interest Holder shall have no right or interest in respect
         of the Relevant IPR, the Interests, the Assignee (other than the Shares
         allotted under Clause 2.1 above), the Assignors, the Wicker Family
         and/or the Estate, or any rights arising out of any of them and that no
         person owes any money to the Relevant Interest Holder in respect of any
         earlier transaction or exploitation in connection with the Relevant
         IPR, the Interests, the Assignee, the Assignors, the Wicker Family
         and/or the Estate.

3.       REPRESENTATIONS, WARRANTIES AND INDEMNITIES

3.1      The Relevant Interest Holder hereby represents and warrants to the
         Assignee that:

         3.1.1    upon execution of this Agreement the Relevant Interest Holder
                  shall have surrendered, released and/or assigned, as the case
                  may be, to the Assignee all of the Relevant Interest Holder's
                  respective rights, title and interests in all of the Relevant
                  Interest Holder's Interests, the Relevant IPR and the Estate;

         3.1.2    so far as the Relevant Interest Holder is aware, the details
                  of the Interest Holders and the Interests included in this
                  Agreement are full, complete and accurate and are a full,
                  complete and accurate reflection of the ownership of all
                  Interests in any and all of the Relevant IPR, as the case may
                  be;

         3.1.3    the Relevant Interest Holder has not assigned, transferred,
                  licensed or sub-licensed any of the Relevant Interest Holder's
                  Interests to any third party or parties at any time or in any
                  way whatsoever;

         3.1.4    details in respect of all past, present and potential future
                  liabilities of which the Relevant Interest Holder is aware in
                  respect of the Relevant IPR, the Interests, the Estate, and/or
                  any third party claims which may reasonably be expected to
                  affect the Relevant Interest Holder's Interests in the
                  Relevant IPR are set out at Schedule 5 to this Agreement;

                                       5
<PAGE>

         3.1.5    the Relevant Interest Holder does not have any knowledge of
                  any party whose rights are not expressly referred to in this
                  Agreement, who has asserted, claimed or otherwise alleged to
                  the Relevant Interest Holder that such party has any interest
                  in any of the Relevant IPR, the Interests and/or the Estate;

         3.1.6    so far as the Relevant Interest Holder is aware, the list of
                  the Interest Holders identified herein is a complete list of
                  any Interest Holders in any of the Relevant IPR and/or the
                  Interests that fully, completely and accurately reflects the
                  present knowledge of the Relevant Interest Holder as to any
                  party who has asserted, claimed or otherwise alleged that such
                  party has any interest in any of the Relevant IPR and/or the
                  Interests; and

         3.1.7    the Interests of the Relevant Interest Holder are not subject
                  to any options, charges, mortgages, liens, security interests,
                  taxes, claims, liabilities or other encumbrances
                  ("ENCUMBRANCES") and will be assigned to the Assignee free and
                  clear of any and all such Encumbrances.

3.2      Subject to the provisions of Clause 3.3 below, the Relevant Interest
         Holder shall indemnify and keep indemnified the Assignee in respect of
         any loss or damage suffered or incurred by the Assignee resulting from
         or otherwise arising in respect of:

         3.2.1    a breach of any of the representations or warranties included
                  at Clause 3.1 above;

         3.2.2    any claim made or loss incurred at any time with respect to,
                  relating to or attributable to the period during which the
                  Relevant Interest Holder held any Interest in respect of the
                  Relevant IPR, including, without limitation, any claims based
                  upon any failure to pay licence or royalty fees or any claims
                  or loss incurred in respect of the liabilities referred to at
                  Clause 3.1.4 above; and/or

         3.2.3    any claim of any governmental taxing authority for taxes due
                  and upon which claim the governmental taxing authority claims
                  or imposes a lien or encumbrance upon the Relevant IPR (other
                  than taxes imposed on royalties accrued with respect to the
                  Relevant IPR on or prior to the date hereof but collected by
                  the Assignee after the date hereof).

3.3      The Relevant Interest Holder's obligation to indemnify the Assignee as
         set out at Clause 3.2 above shall be limited to an amount equal to
         one-half (1/2) the fair market value of the Shares delivered to the
         Relevant Interest Holder under Clause 2.1 above (which fair market
         value shall be determined as of the date a notice of claim is delivered
         with respect to such indemnification obligation), provided, however,
         that any obligation to indemnify the Assignee arising as a result of a
         breach of representations and warranties set forth in Clauses 3.1.1,
         3.1.3 and 3.1.7 and/or any obligation to indemnify the Assignee under
         Clause 3.2.3 shall be limited to the full fair market value of the
         Shares delivered to the Relevant Interest Holder under Clause 2.1 above
         (which fair market value shall be determined as of the date a notice of
         claim is delivered with respect to such indemnification obligation).

                                       6
<PAGE>

3.4      The Assignee may set off against any money or allotment of Shares that
         would otherwise be payable or owing by the Assignee to the Relevant
         Interest Holder under or pursuant to this Agreement and/or any other
         agreement or arrangement unless and until the Relevant Interest Holder
         has paid, satisfied or discharged all moneys, debts or liabilities due
         or owing to the Assignee pursuant to this Agreement including, without
         limitation, pursuant to Clause 3.2 above and has satisfied all of the
         Relevant Interest Holder's other obligations to the Assignee (however,
         no setoff shall be applied against the Relevant Interest Holder with
         respect to royalties accrued on or prior to the date hereof with
         respect to the Relevant IPR that are collected by the Assignee after
         the date hereof).

4.       FURTHER ASSURANCE

4.1      The Relevant Interest Holder hereby covenants that at the request of
         the Assignee at any time and from time to time the Relevant Interest
         Holder will execute and procure the execution of such deeds or
         documents and do and procure the doing of such acts and/or things as
         may be necessary or desirable:

         4.1.1    to give effect to the provisions of this Agreement; and

         4.1.2    to assign and transfer all right, title and interest in and to
                  the Relevant IPR to the Assignee.

4.2      The Relevant Interest Holder agrees and undertakes with the Assignee
         that, to the extent the Relevant Interest Holder has any information
         relevant to the enforcement or validity of any of the Relevant IPR, the
         Relevant Interest Holder will give the Assignee such assistance in any
         enforcement or validity proceedings as the Assignee may reasonably
         request.

5.       NON-COMPETITION

5.1      Following the date of execution of this Agreement:

         5.1.1    until the date that it two (2) years from the date hereof, the
                  Relevant Interest Holder shall not directly or indirectly,
                  engage or invest in, own, manage, operate, finance, control or
                  participate in ownership, management, operation, financing or
                  control of, be concerned or interested in, be employed by,
                  lend the Relevant Interest Holder's name to, lend credit to,
                  render services or advice to or serve as director, officer or
                  consultant to any business that is in competition or in
                  conflict with the Assignee, or is similar to the business of
                  the Assignee;

         5.1.2    until the date that it two (2) years from the date hereof, the
                  Relevant Interest Holder shall not directly or indirectly,
                  invest in, own, finance, control or participate in ownership,
                  utilisation, financing, or control of or be concerned or
                  interested in any Intellectual Property Rights which are
                  similar to any of the Relevant IPR, in any way whatsoever; and

         5.1.3    except as otherwise agreed by the Assignee in writing, in
                  consideration of the payments and other considerations to the
                  Relevant Interest Holder by the Assignee pursuant to this
                  Agreement and free of any additional obligations of the
                  Assignee to make additional payments to the Relevant Interest
                  Holder, the Relevant Interest Holder agrees to irrevocably
                  assign to the Assignee any and all inventions, software,
                  manuscripts, documentation, improvements, trade secrets or
                  other Intellectual Property Rights relating to the present
                  anti-theft and anti-fraud document security business of the
                  Assignee, (the "RIGHTS") developed by the Relevant Interest
                  Holder, either alone or jointly with others. The Relevant
                  Interest Holder agrees that all Rights shall be and remain the
                  exclusive property of the Assignee. The Relevant Interest
                  Holder hereby agrees to execute such assignments and other
                  documents as the Assignee may consider appropriate to vest all
                  right, title and interest in the Rights in the Assignee.

                                       7
<PAGE>

5.2      Following the date of execution of this Agreement, the Relevant
         Interest Holder agrees not to enter into any licensing or sub-licensing
         agreement, or other arrangement or agreement, with respect to any of
         the Relevant IPR or to amend or modify the terms of any existing
         licence or sub-licence agreement with respect to the Relevant IPR, or
         to hold itself out to the public as the owner of the Relevant IPR.
         Further, all future inquiries received by the Relevant Interest Holder
         from licensees or sub-licensees, or potential licensees or
         sub-licensees shall be forwarded to the Assignee.

5.3      The Relevant Interest Holder agrees that the restrictions set forth in
         this Clause 5 are reasonable in the circumstances of this Agreement and
         necessary to protect the Assignee's right, goodwill, title and interest
         in and to the Relevant IPR in accordance with the terms and conditions
         of this Agreement, the Agreement to Assign Certain Interests in
         Intellectual Property Rights between the Assignors and the Assignee and
         the Deed of Assignment. Further, the Relevant Interest Holder agrees
         that, if a court of competent jurisdiction determines that any portion
         of this Clause 5 is in violation of statute or public policy, only the
         portions of this Clause 5 that violate statute or public policy shall
         be stricken and all other portions of this Clause that do not violate
         statute or public policy shall continue in full force and effect. If
         any one or more provisions contained in this Clause 5 is determined by
         a court of competent jurisdiction to be excessively broad as to
         duration, scope, activity or subject, or is unreasonable or
         unenforceable under applicable laws, such provisions will be construed
         by limiting, reducing, modifying or amending them so as to be
         enforceable to the maximum extent permitted by law.

6.       LEGAL ADVICE

6.1      The Relevant Interest Holder hereby acknowledges and agrees that the
         Relevant Interest Holder has been advised by the Assignee to seek full
         and independent legal advice in respect of this Agreement and has
         sought such advice.

7.       CONFIDENTIALITY

7.1      The Relevant Interest Holder agrees that the Relevant Interest Holder
         shall keep this Agreement and the terms thereof confidential. The
         Relevant Interest Holder hereby acknowledges and understands that the
         Assignee is a public company which files reports under the Securities
         and Exchange Commission which become public knowledge and the Assignee
         may therefore be required to disclose this Agreement and the terms
         thereof in its filings with the Securities and Exchange Commission.

                                       8
<PAGE>

8.       GOVERNING LAW

8.1      This Agreement shall be governed by and construed in accordance with
         the laws of the State of New York. The Parties hereto submit to the
         exclusive jurisdiction of the federal and state Courts located in the
         Borough of Manhattan, City of New York. Each of the Parties hereto
         hereby waives any and all defenses based upon personal jurisdiction or
         venue, including defenses based on forum non conveniens. Further, the
         Parties agree that, in any dispute regarding an alleged breach of this
         Agreement, any finding by a court of competent jurisdiction of a
         material breach of this Agreement shall entitle the prevailing Party to
         recover its or their costs and fees, including attorneys' fees,
         incurred as a result of the other Party's material breach of this
         Agreement.

                                       9
<PAGE>

                                   SCHEDULE 1
                               THE WICKER PATENTS
<TABLE>
<CAPTION>
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
  DESCRIPTION OF       STATUS        APPLICATION/      DATE OF       DATE OF       REGISTERED      JURISDICTION
      PATENT                         REGISTRATION       GRANT        EXPIRY        PROPRIETOR
                                        NUMBER
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
<S>                 <C>            <C>               <C>          <C>            <C>             <C>
Counterfeit         Granted        US 5,018,767 -    28 May 1991  18 January     Ralph C.        USA
Protected Document                 A NUMBER OF                    2009           Wicker/ SMW
                                   CLAIMS OF THIS                                Patent Corp./
Process Patent                     PATENT HAVE                                   Thomas M.
                                   BEEN                                          Wicker/
                                   INVALIDATED.
                                                                                 Document
                                                                                 Security
                                                                                 Systems,
                                                                                 Inc.
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Anti-Photo-copying  Granted        US 5,735,547      April 7,     Jan. 3, 2017   Frederic T.     USA
Imaging                                              1998                        Morelle/
                                                                                 Ralph C.
Product & Process                                                                Wicker/
Patent                                                                           Document
                                                                                 Security
                                                                                 Systems, Inc.
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Counterfeit         Granted        CA 2,045,580      24 Nov 1999  16 January     Ralph C.        Canada
Protected Document                                                2010           Wicker

Process Patent
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Method of Making    Granted        EP 0455750        24 Nov 1999  16 January     Ralph C.        France
a Non Replicable                                                  2010           Wicker
Document
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Method of Making    Granted        EP 0455750        24 Nov 1999  16 January     Ralph C.        Austria
a Non Replicable                                                  2010           Wicker
Document                           E 186876
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Method of Making    Granted        EP 0455750        24 Nov 1999  16 January     Ralph C.        Liechtenstein
a Non Replicable                                                  2010           Wicker
Document
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Method of Making    Granted        EP 0455750        24 Nov 1999  16 January     Ralph C.        UK
a Non Replicable                                                  2010           Wicker
Document
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Method of Making    Granted        EP 0455750        24 Nov 1999  16 January     Ralph C.        Germany
a Non Replicable                                                  2010           Wicker
Document                           DE 69033362
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Method of Making    Granted        EP 0455750        24 Nov 1999  16 January     Ralph C.        Switzerland
a Non Replicable                                                  2010           Wicker
Document
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Method of Making    Granted        EP 0455750        24 Nov 1999  16 January     Ralph C.        The Netherlands
a Non Replicable                                                  2010           Wicker
Document
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Security            Granted        US 5,707,083      13 January   22 August      Moore North     USA
Documents With                                       1998         2016           America,
Multi-Angled Voids                                                               Inc./Estate
                                                                                 of Ralph C.
                                                                                 Wicker/
                                                                                 Thomas Wicker/
                                                                                 Document
                                                                                 Security
                                                                                 Systems, Inc.
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
</TABLE>

                                       10
<PAGE>

                                   SCHEDULE 2
                                 THE FELKER IPR

Pursuant to an Assignment, Consultation and Technical Development Agreement
Dated 17 July 1991, Ralph C Wicker granted to the Felker Group:

1.       an assignment of any patent application corresponding to Patent
         Application Serial Nos. 07/298,020 and 07/473,903 filed in any foreign
         countries other than the USA, the UK, Canada, France, Germany, the
         Netherlands, Switzerland, Lichtenstein and Austria and any patent
         issuing therefrom and any divisions, renewals, continuations and
         continuations in part thereof. Details of the relevant patent
         applications and patent registrations are set out in the table below:

<TABLE>
<CAPTION>
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
  DESCRIPTION OF       STATUS          APPLICATION/       DATE OF     DATE OF        REGISTERED       JURISDICTION
      PATENT                           REGISTRATION        GRANT      EXPIRY         PROPRIETOR
                                          NUMBER
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
<S>                 <C>              <C>                <C>        <C>             <C>              <C>
Method of Making    Ceased/          AU 640,370B2       24 Nov     16 January      Thomas S.        Australia
a Non Replicable    Expired as of                       1999       2010            Felker (and
Document            04/09/97                                                       possibly
                                                                                   others)
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
Method of Making    Unknown          JP 4504543 T       24         16 January      Ralph C. Wicker  Japan
a Non Replicable                                        November   2010
Document                                                1999
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
Method of Making    Withdrawn as     EP 0938981 A3                                 Ralph Wicker
a Non Replicable    of 16/10/02
Document
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
Method of Making    Registered and   EP 0455750         24         16 January      Ralph Wicker     Belgium
a Non Replicable    in force                            November   2010            (confirmed up
Document                                                1999                       to 30 June
                                                                                   2004)
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
Method of Making    Registered and   EP 0455750         24         16 January      Ralph Wicker     Denmark
a Non Replicable    in force                            November   2010
Document                                                1999
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
Method of Making    Registered and   EP 0455750         24         16 January      Ralph Wicker     Italy
a Non Replicable    in force                            November   2010
Document                             67478 BE/2000      1999
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
Method of Making    Registered and   EP 0455750         24         16 January      Ralph Wicker     Luxembourg
a Non Replicable    in force                            November   2010            (confirmed up
Document                                                1999                       to 30 June
                                                                                   2004)
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
Method of Making    Registered and   EP 0455750         24         16 January      Ralph Wicker     Spain
a Non Replicable    in force                            November   2010
Document                             ES 2140377         1999
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
Method of Making    Registered and   EP 0455750         24         16 January      Ralph Wicker     Sweden
a Non Replicable    in force                            November   2010            (confirmed up
Document                                                1999                       to 30 June
                                                                                   2004)
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
</TABLE>

                                       11
<PAGE>

2.       a paid up exclusive licence to all of Ralph Wicker's rights in the
         Invention (an invention generally described as non-replicable document
         and method for making same in respect of which Patent Application
         Serial Nos. 07/298,020 (issued as US Patent 5,018,767) and 07/473,903
         and patent applications generally described as non-photographic patent
         application and PCT application US90/00221, (together with any
         divisions, continuations and continuations in part) have been filed),
         know how and improvements therein, including at least 84% of the
         Invention and patent rights described above for use in foreign
         countries where the Assignees have filed patent applications under the
         patent and patent applications described above; and

3.       a right to receive 10% of all royalties received on the manufacture of
         legal tender or currency produced in accordance with the Invention.

The Parties also agreed that where products are printed in their respective
countries, but are shipped for first use into the other party's country the
Parties are each entitled to their respective percentages of the royalty from
first use of the product in the country the product was shipped into.

                                       12
<PAGE>

                                   SCHEDULE 3
                                  THE INTERESTS

1.       WICKER PATENTS
The Wicker Patent Owners own the following Interests in the Wicker Patents:

<TABLE>
<CAPTION>
---------------------------------------------------------------- --------------------------------------------------------
WICKER PATENT OWNER                                              OWNERSHIP INTEREST IN WICKER PATENTS
---------------------------------------------------------------- --------------------------------------------------------
<S>                                                              <C>
The Estate                                                       69.5% of the `767 Patent and of all the foreign patents
---------------------------------------------------------------- --------------------------------------------------------
The Estate                                                       25% of the `083 Patent
---------------------------------------------------------------- --------------------------------------------------------
The Estate                                                       43% of the `547 Patent
---------------------------------------------------------------- --------------------------------------------------------
SMW Patent Corp.                                                 23.5% of the `767 Patent and of all the foreign patents
---------------------------------------------------------------- --------------------------------------------------------
SMW Patent Corp.                                                 50% of the `547 Patent
---------------------------------------------------------------- --------------------------------------------------------
Document Security Systems, Inc.                                  6.0% of the `767 Patent and of all the foreign  patents
                                                                 and of the `547 Patent
---------------------------------------------------------------- --------------------------------------------------------
Document Security Systems, Inc.                                  24% of the `083 Patent
---------------------------------------------------------------- --------------------------------------------------------
Thomas Wicker                                                    1.0% of all the Wicker Patents
---------------------------------------------------------------- --------------------------------------------------------
Moore North America, Inc.                                        50% of the `083 Patent
---------------------------------------------------------------- --------------------------------------------------------
</TABLE>

2.       FELKER IPR
The Felker Group and the Estate own an Interest of 100% of the Felker IPR.

3.       GROSS ROYALTY INTERESTS
The Gross Royalty Interest Holders own the following Gross Royalty Interests in
the Gross Royalties:

<TABLE>
<CAPTION>
---------------------------------------------------------------- --------------------------------------------------------
GROSS ROYALTY INTEREST HOLDER                                    GROSS ROYALTY INTEREST IN GROSS ROYALTIES
---------------------------------------------------------------- --------------------------------------------------------
<S>                                                              <C>
The Estate                                                       33.195015%
---------------------------------------------------------------- --------------------------------------------------------
SMW Patent Corp                                                  23.50000%
---------------------------------------------------------------- --------------------------------------------------------
Thomas Wicker                                                    8.00000%
---------------------------------------------------------------- --------------------------------------------------------
Document Security Systems, Inc.                                  6.00000%
---------------------------------------------------------------- --------------------------------------------------------
Felker Group                                                     10.00000%(2)
---------------------------------------------------------------- --------------------------------------------------------
Neal Eckhardt                                                    2.36300%
---------------------------------------------------------------- --------------------------------------------------------
Thomas A. Gruber                                                 1.53000%
---------------------------------------------------------------- --------------------------------------------------------
J. Casey Randall                                                 0.38250%
---------------------------------------------------------------- --------------------------------------------------------
Jerry Poluch                                                     0.22935%
---------------------------------------------------------------- --------------------------------------------------------
Michael McDonough                                                0.80000%
---------------------------------------------------------------- --------------------------------------------------------
Christine Wicker                                                 6.00000%
---------------------------------------------------------------- --------------------------------------------------------
Kenneth Wicker                                                   6.00000%
---------------------------------------------------------------- --------------------------------------------------------
David Wicker                                                     6.00000%
---------------------------------------------------------------- --------------------------------------------------------
Michael Caton                                                    6.00000%
---------------------------------------------------------------- --------------------------------------------------------
</TABLE>

-----------------------------
(2) The Felker Group is entitled to 10% of all royalties received on the
    manufacture of legal tender or currency in respect of the Wicker Patents.

                                       13
<PAGE>

4.       NET ROYALTY INTERESTS
The Net Royalty Interest Holders own the following Net Royalty Interests in the
Net Royalties:

<TABLE>
<CAPTION>
---------------------------------------------------------------- --------------------------------------------------------
NET ROYALTY INTEREST HOLDER                                      NET ROYALTY INTEREST IN NET ROYALTIES
---------------------------------------------------------------- --------------------------------------------------------
<S>                                                              <C>
The Estate                                                       41.924%
---------------------------------------------------------------- --------------------------------------------------------
Thomas O' Donaghue                                               10.0000%
---------------------------------------------------------------- --------------------------------------------------------
Estate of Lawrence Decker                                        4.8850%
---------------------------------------------------------------- --------------------------------------------------------
Charles Girthler, II                                              3.9300%
---------------------------------------------------------------- --------------------------------------------------------
Charles Girthler, III                                             3.7600%
---------------------------------------------------------------- --------------------------------------------------------
Ralph Tipple                                                      3.7600%
---------------------------------------------------------------- --------------------------------------------------------
Robert Ford, CPA                                                  4.2500%
---------------------------------------------------------------- --------------------------------------------------------
Michael O'Hara                                                    1.0000%
---------------------------------------------------------------- --------------------------------------------------------
Denise Shaw                                                       0.0125%
---------------------------------------------------------------- --------------------------------------------------------
Michael O'Donaghue                                                1.0000%
---------------------------------------------------------------- --------------------------------------------------------
Richard Saur                                                      1.0000%
---------------------------------------------------------------- --------------------------------------------------------
Judy Solaro Graves                                                2.1250%
---------------------------------------------------------------- --------------------------------------------------------
Alexander Picozzi                                                 2.0000%
---------------------------------------------------------------- --------------------------------------------------------
Joseph Cameron                                                    0.7000%
---------------------------------------------------------------- --------------------------------------------------------
David Scheftic                                                    1.3125%
---------------------------------------------------------------- --------------------------------------------------------
Patrick White(3)                                                  4.1250%
---------------------------------------------------------------- --------------------------------------------------------
James Hartman, Esq.                                               1.0000%
---------------------------------------------------------------- --------------------------------------------------------
Jerome Halbert                                                    0.1250%
---------------------------------------------------------------- --------------------------------------------------------
Tina and Anthony D'Angelo                                         0.1250%
---------------------------------------------------------------- --------------------------------------------------------
Estate of Clark Snyder                                            0.5000%
---------------------------------------------------------------- --------------------------------------------------------
David Andolina                                                    0.1250%
---------------------------------------------------------------- --------------------------------------------------------
Electa Daniels                                                    0.1250%
---------------------------------------------------------------- --------------------------------------------------------
Robert Gardner                                                    0.5000%
---------------------------------------------------------------- --------------------------------------------------------
Raymond McHargue                                                  0.0100%
---------------------------------------------------------------- --------------------------------------------------------
Loren Edward Osborn                                               0.4000%
---------------------------------------------------------------- --------------------------------------------------------
Thomas Monks                                                      3.0000%
---------------------------------------------------------------- --------------------------------------------------------
Ann Young                                                         1.7500%
---------------------------------------------------------------- --------------------------------------------------------
Alex Chiosa                                                       3.0500%
---------------------------------------------------------------- --------------------------------------------------------
Gerald Laraby                                                     1.0000%
---------------------------------------------------------------- --------------------------------------------------------
Bradley Harcourt                                                  1.0000%
---------------------------------------------------------------- --------------------------------------------------------
Douglas Dublin                                                    1.0000%
---------------------------------------------------------------- --------------------------------------------------------
Richard Johnson                                                   0.1250%
---------------------------------------------------------------- --------------------------------------------------------
Richard Kintz                                                     0.0100%
---------------------------------------------------------------- --------------------------------------------------------
Gary Maneeley                                                     0.0250%
---------------------------------------------------------------- --------------------------------------------------------
Jill Warren                                                       1.0000%
---------------------------------------------------------------- --------------------------------------------------------
Dorothy Gans Herrera                                              0.0925%
---------------------------------------------------------------- --------------------------------------------------------
Nancy Dimmick                                                     0.0625%
---------------------------------------------------------------- --------------------------------------------------------
</TABLE>

-----------------------------
3 The Net Royalty Interest of Patrick White has been previously acquired by the
Assignee in July 2002.

                                       14
<PAGE>

5.       FELKER ROYALTY INTERESTS

The Felker Royalty Interest Holders own the following Felker Royalty Interests
in the Felker Royalties:

<TABLE>
<CAPTION>
---------------------------------------------------------------- --------------------------------------------------------
FELKER ROYALTY INTEREST HOLDER                                   FELKER ROYALTY INTEREST IN FELKER ROYALTIES
---------------------------------------------------------------- --------------------------------------------------------
<S>                                                              <C>
Felker Group                                                     98.5%
---------------------------------------------------------------- --------------------------------------------------------
Wicker Patents Owners (other than Moore North America, Inc.)     1.5%(4)
---------------------------------------------------------------- --------------------------------------------------------
</TABLE>

6.       SDS INTEREST
SDS owns an Interest of 100% of the SDS Interest.

7.       WICKER FAMILY INTERESTS
The Wicker Family own  an Interest of 100% of  the Wicker Family Interests.

-----------------------------
(4) The Wicker Patent Owners are entitled to 1.5% of the purchase price (i.e.,
    production cost plus mark-up) of any documents produced in respect of the
    Felker IPR or one-half of any royalties paid to the Felker Group by third
    parties with respect thereto, whichever is less.

                                       15
<PAGE>

                                   SCHEDULE 4
                              THE INTEREST HOLDERS

1. THE WICKER PATENT OWNERS

The Estate
SMW Patent Corp.
Thomas Wicker
Document Security Systems, Inc.
Frederic T. Morelle
Moore North America, Inc.

2. THE FELKER GROUP

Thomas S. Felker
Cord Harms Zum Spreckel
Nathaniel Whiteside (personally, and as the assignee of the Midwest Bank Note
  Company)
T&T Associates, Inc.
Midwest Bank Note Company

3. THE GROSS ROYALTY INTEREST HOLDERS

The Estate
SMW Patent Corp.
Thomas Wicker
Document Security Systems, Inc.
Felker Group (c/o Thomas S. Felker)
Neal Eckhardt
Thomas A. Gruber
J. Casey Randall
Jerry Poluch
Michael Mc Donough
Christine Wicker
Kenneth Wicker
David Wicker
Michael Caton

                                       16
<PAGE>

4. THE NET ROYALTY INTEREST HOLDERS

The Estate
Thomas O' Donaghue
Estate of Lawrence Decker
Charles Girthler, II
Charles Girthler, III
Ralph Tipple
Robert Ford, CPA
Michael O'Hara
Denise Shaw
Michael O'Donaghue
Richard Saur
Judy Solaro Graves
Alexander Picozzi
Joseph Cameron
David Scheftic
Patrick White(5)
James Hartman, Esq.
Jerome Halbert
Tina and Anthony D'Angelo
Estate of Clark Snyder
David Andolina
Electa Daniels
Robert Gardner
Raymond McHargue
Loren Edward Osborn
Thomas Monks
Ann Young
Alex Chiosa
Gerald Laraby
Bradley Harcourt
Douglas Dublin
Richard Johnson
Richard Kintz
Gary Maneeley
Jill Warren
Dorothy Gans Herrera
Nancy Dimmick

5. THE FELKER ROYALTY INTEREST HOLDERS

The Felker Group (c/o Thomas S. Felker)
The Wicker Patents Owners (other than Moore North America Inc.)

6. SDS

Secured Document Systems, Inc.

7. THE WICKER FAMILY

Thomas Wicker
Mary Wicker
Christine Wicker
Kenneth Wicker
David Wicker

-----------------------------
(5) The Net Royalty Interest of Patrick White has been previously acquired by
    the Assignee in July 2002.

                                       17
<PAGE>

                                   SCHEDULE 5
                                   LIABILITIES

If any, to be inserted by Relevant Interest Holder:

                                       19
<PAGE>


AS WITNESS the hands of the Parties or their duly authorised representatives the
day and year set forth below.


RELEVANT INTEREST HOLDER:



[NAME]


______________________________


DATE:  _______________________




ASSIGNEE:


DOCUMENT SECURITY SYSTEMS, INC.


By:______________________________
      Name:
      Title:

                                       20