Document:

Exhibit 10.1

 

 

PROMISSORY NOTE AMENDMENT No. 2

 

This PROMISSORY NOTE
AMENDMENT NO. 2 (the “Amendment”) is made as of February 23, 2015 (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 28 East Main Street, Suite 1525, Rochester, New York 14614 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)
May 31, 2016 (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 make
principal payments in the amount of $15,000 per month until the Maturity Date, at which time a balloon payment of $610,000 of
principal will become due and payable. 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 commencing on February 28, 2015, 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 is 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
OfficerExhibit 10.2

 

 

CONVERTIBLE PROMISSORY NOTE AMENDMENT No. 2

 

This CONVERTIBLE PROMISSORY
NOTE AMENDMENT NO. 2 (the “Amendment”) is made as of February 23, 2015 (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 28 East Main Street, Suite 1525, Rochester, New York 14614 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)
December 30, 2016 (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 make
principal payments in the amount of $15,000 per month until the Maturity Date, at which time a balloon payment of $230,000 of
principal will become due and payable. 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 commencing on February 28, 2015, 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. Section 3 of the
Note, entitled “Conversion”, shall be deleted in its entirety from the Note.

 

4.Note Ratified.
Except as expressly amended hereby, the Note is 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.

 

    	 

    	 

    

 

5.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.

 

6.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.

 

7.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)

 

/s/ Philip Jones

 

By:_______________________________

 

Name:Philip Jones

Title:Chief Financial OfficerTRS-123114-Exh 10.18

Exhibit 10.18 

AMENDMENT NO. 4 TO AMENDED AND RESTATED
RECEIVABLES TRANSFER AGREEMENT

AMENDMENT NO. 4 TO AMENDED AND RESTATED RECEIVABLES TRANSFER AGREEMENT (as amended, supplemented or otherwise modified and in effect from time to time, this “Amendment”), dated as of November 26, 2014, is entered into by and among TSPC, INC., a Nevada corporation, as transferor (in such capacity, the “Transferor”), TRIMAS CORPORATION, a Delaware corporation, as collection agent (in such capacity, the “Collection Agent”), TRIMAS COMPANY, LLC, a Delaware limited liability company, as guarantor (in such capacity, the “Guarantor”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, successor by merger to Wachovia Bank, National Association, individually (in such capacity, the sole “Purchaser”), as letter of credit issuer (in such capacity, together with its successors in such capacity, the “LC Issuer”) and as administrative agent (in such capacity, together with its successors in such capacity, the “Administrative Agent”).  Capitalized terms used and not otherwise defined herein are used with the meanings attributed thereto in the Agreement (as defined below).

W I T N E S S E T H:

WHEREAS, the parties hereto have entered into that certain Amended and Restated Receivables Transfer Agreement dated as of September 15, 2011, as amended by Amendment No. 1 to the Amended and Restated Receivables Transfer Agreement dated as of June 29, 2012, Amendment No. 2 to the Amended and Restated Receivables Transfer Agreement dated as of December 17, 2012 and Amendment No. 3 to the Amended and Restated Receivables Transfer Agreement dated as of April 17, 2014 (as amended, amended and restated, or otherwise modified from time to time, the “Agreement”); and

WHEREAS, the parties wish to amend the Agreement on the terms and conditions hereinafter set forth.

NOW, THEREFORE, for good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, it is hereby agreed by and among the parties as follows:

1.Amendments.  Effective as of November 1, 2014 (the “Effective Date”):

		
	1.1 
	Section 3.01(q) of the Agreement is hereby amended and restated in its entirety to read as follows:

(q) Not an Investment Company or Covered Fund.  The Transferor is not, nor is it controlled by, an “investment company” within the meaning of the Investment Company Act of 1940, as amended, or is exempt from Section 13 of the U.S. Bank Holding Company Act of 1956, as amended (the “Volcker Rule”), and 

the applicable rules and regulations thereunder. The Transferor is not (i) a “covered fund” under the Volcker Rule or (ii) after giving effect to the transactions contemplated hereby, required to register as, an “investment company” within the meaning of the Investment Company Act of 1940, as amended, or any successor statute.  In determining that the Transferor is not a covered fund, the Transferor either does not rely solely on the exemption from the definition of “investment company” set forth in Section 3(c)(1) and/or 3(c)(7) of the Investment Company Act of 1940 or is entitled to the benefit of the exclusion for loan securitizations in the Volcker Rule under 17 C.F.R. 75.10(c)(8).
		
	1.2
	Schedule A to the Agreement is hereby amended to amend and restate in their entirety the definitions of the following terms to read, respectively, as follows:

“Concentration Limit” shall mean, on any day:
		
	(a)
	in relation to all Eligible Foreign Receivables, 15% of total Eligible Receivables;

		
	(b)
	in relation to all Eligible Receivables as to which the Obligor is not a resident of the United States, a U.S. territory or an Approved Foreign Country, 2.5% of the aggregate Outstanding Balance of all Receivables; and

		
	(c)
	in relation to the aggregate Outstanding Balance of Receivables owed by any single Obligor and its Affiliates (if any), the applicable concentration limit for Obligors who have short term unsecured debt ratings currently assigned to them by S&P and Moody’s (or in the absence thereof, the equivalent long term unsecured senior debt ratings), the applicable Concentration Limit shall be determined according to the following table: 

	
					
	S&P Short-Term Rating
	Moody’s Short-Term Rating
	S&P Long-Term Rating
	Moody’s Long-Term Rating
	Allowable % of Eligible Receivables

	A-1+
	P-1
	AA- or better
	A2 or better
	12%

	A-1
	P-1
	A
	A-2 or better
	10%

	A-2
	P-2
	BBB+
	Baa1
	8%

	A-3
	P-3
	BBB-
	Baa3
	6%

	Below A-3 or Not Rated by either S&P or Moody’s
	Below P-3 or Not Rated by either S&P or Moody’s
	Below BBB- or Not Rated by either S&P or Moody’s
	Below Baa3 or Not Rated by either S&P or Moody’s
	4%

; provided, however, that (i) if any obligor has a split rating, the applicable rating will be the lower of the two, and (ii) if any obligor is not rated by either 

S&P or Moody’s, the applicable Obligor Concentration Limit shall be the one set forth in the last line of the table above.
“Dilution Horizon Ratio” shall mean, as of any Cut-off Date, a ratio (expressed as a decimal), computed by dividing (a) the aggregate sales generated by the Sellers during the two (2) consecutive Calculation Periods (or such other period as the Administrative Agent may determine based on a Review) ending on such Cut-Off Date, by (b) the Net Receivables Balance as of such Cut-Off Date.
“Eligible Receivable” shall mean, at any time, any Receivable:
(1)    which has been originated by any Seller and subsequently sold to the Transferor pursuant to (and in accordance with) the Receivables Purchase Agreement, and to which the Transferor has good title thereto, free and clear of all Adverse Claims other than those imposed in connection with, or permitted by, the Transaction Documents and Liens for taxes, assessments or other governmental charges payable by the Transferor that are not yet due and payable;
(2)    which (together with the Collections and Related Security related thereto) has been the subject of either (A) a valid transfer and assignment from the Transferor to the Administrative Agent, on behalf of the Purchasers and the LC Issuer, of all of the Transferor’s right, title and interest therein or (B) the grant of a first priority perfected security interest therein (and in the Collections and Related Security related thereto) in favor of the Administrative Agent, on behalf of the Purchasers and the LC Issuer, in each case effective until termination of the Receivables Transfer Agreement.
(3)    the Obligor of which is (A) a Designated Obligor at the time of the initial creation of an interest therein under the Receivables Transfer Agreement, (B) not an Official Body or an Affiliate of any of the parties to the Receivables Transfer Agreement, (C) not the subject of an Event of Bankruptcy, and (D) an Eligible Obligor;
(4)    which is not a Delinquent Receivable or a Defaulted Receivable;
(5)    (A) which arises pursuant to a Contract with respect to which the Seller has performed all obligations required to be performed by it thereunder, including, without limitation, shipment of the merchandise and/or the performance of the services purchased thereunder; (B) which has been billed, and (c) which, on the date of determination, is due and payable within 60 days of the original due date therefor in accordance with the terms of the applicable Contract;
(6)    as to which the Obligor is not required to pay cash on delivery or cash in advance;

(7)    which is (A) an “account” within the meaning of Section 9-102(a)(2) of the Relevant UCC, or (B) a “payment intangible” within the meaning of Section 9-102(a)(61) of such Relevant UCC;
(8)    which is denominated and payable only in United States dollars in the United States;
(9)    which arises under a Contract that, together with the Receivable related thereto, is in full force and effect and constitutes the legal, valid and binding obligation of the related Obligor, enforceable against such Obligor in accordance with its terms and is not subject to any litigation, dispute, offset, counterclaim or other defense other than unexpired volume or pricing discounts or rebates to which the obligor thereon may be entitled, provided that only such portion of such receivable subject to any such dispute, offset, counterclaim or defense shall be deemed ineligible under this criterion;
(10)    which, together with the Contract related thereto, does not contravene in any material respect any laws, rules or regulations applicable thereto (including, without limitation, laws, rules and regulations relating to truth in lending, fair credit billing, fair credit reporting, equal credit opportunity, fair debt collection practices and privacy) and with respect to which no part of the Contract related thereto is in violation of any such law, rule or regulation in any material respect;
(11)    which (A) satisfies in all material respects all applicable requirements of the Credit and Collection Policy, (B) is assignable without the consent of, or notice to, the Obligor thereunder, and (C) complies at the time of the initial creation of an interest therein under the Receivables Transfer Agreement with such other reasonable criteria and requirements as the Administrative Agent and the Required Purchasers have then specified to the Transferor following five (5) days’ notice;
(12)    which was originated in the ordinary course of the applicable Seller’s business or acquired from an originator approved by the Administrative Agent and the Required Purchasers which approval shall not be unreasonably withheld;
(13)    the Obligor of which has been directed to make all payments to a specified account of the Transferor with respect to which there shall be a Lock-Box Agreement in effect;
(14)    the assignment of which under the Receivables Purchase Agreement by the Seller to the Transferor and the assignment of which under the Receivables Transfer Agreement by the Transferor to the Purchasers does not violate, conflict with or contravene any applicable laws, rules, regulations, orders or writs or any contractual or other restriction, limitation or encumbrance and does not require the consent of any Person;

(15)    which has not been compromised, adjusted or modified (including by the extension of time for payment or the granting of any discounts, allowances or credits), provided that only such portion of such receivable that has been so compromised, adjusted or modified shall be deemed ineligible pursuant to this criterion; and
(16)    which does not arise under a Contract that has been rewritten.
“Fee Letter” shall mean the Third Amended and Restated Fee Letter dated November 26, 2014, among the Transferor, the LC Issuer, and the Administrative Agent, for the benefit and on behalf of the Purchasers and the LC Issuer, with respect to the Fees and LC Fees to be paid by the Transferor under the Transaction Documents, as amended, supplemented or otherwise modified and in effect from time to time. 

		
	1.3
	Exhibit C to the Agreement is hereby amended and restated in its entirety to read as set forth in Annex I to this Amendment.

2.Representations and Warranties.  In order to induce the Administrative Agent, the LC Issuer and the sole Purchaser to enter into this Amendment, each of the Transferor, the Guarantor and the Collection Agent (each, a “Transferor Party”) hereby represents and warrants to the Administrative Agent, the LC Issuer and the sole Purchaser as follows:

(a)Entity and Governmental Authorization; Contravention. The execution, delivery and performance by such Transferor Party of this Amendment are within its corporate or limited liability company powers, as the case may be, have been duly authorized by all necessary corporate or limited liability company action, as applicable, require no action by or in respect of, or filing with, any Official Body or official thereof, and do not contravene, or constitute a default under, any provision of applicable law, rule or regulation or of the Certificate of Incorporation or the By-Laws (or other organizational documents) of such Transferor Party, or of any agreement, judgment, injunction, order, writ, decree or other instrument binding upon such Transferor Party, or result in the creation or imposition of any Adverse Claim on the assets of such Transferor Party (except those created by the Agreement).

(b)Binding Effect. The Agreement, as amended by this Amendment,  constitutes the legal, valid and binding obligation of such Transferor Party, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar laws affecting the rights of creditors and general equitable principles (whether considered in a proceeding in equity or at law).

(c)Consents, Licenses, Approvals, Etc. No consents, including, without limitation, consents under loan agreements and indentures to which such Transferor Party is a party), licenses or approvals are required in connection with the execution, 

delivery and performance by such Transferor Party of this Amendment, or the validity and enforceability against such Transferor Party of this Amendment, except such consents, licenses and approvals as have already been obtained and that remain in full force and effect on the date hereof.

3.Conditions Precedent. This Amendment shall become effective when each of the following conditions precedent has been satisfied:

(a)    The Administrative Agent shall have received counterparts of this Amendment, duly executed by each of the parties hereto;
(b)    The Administrative Agent shall have received counterparts of a third amended and restated Fee Letter, duly executed by each of the parties thereto;
(c)    The Administrative Agent’s counsel shall have received payment in full of its reasonable fees and disbursements in connection with the preparation, negotiation, and closing of this Amendment and the other documents required to be delivered to it hereunder; and 
(d)    Each of the representations and warranties contained in Section 2 of this Amendment shall be true and correct in all material respects, it being understood that the foregoing materiality qualifier shall not apply to any representation that itself contains a materiality threshold.
4.Miscellaneous.

4.1.    This Amendment shall be governed by and construed in accordance with the laws of the State of New York. 
4.2.    Each of the parties hereto hereby submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York state court sitting in The City of New York for purposes of all legal proceedings arising out of or relating to this Amendment or the transactions contemplated hereby.  Each of the parties hereto hereby irrevocably waives, to the fullest extent it may effectively do so, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum.  Nothing in this Section 4.2 shall affect the right of any party hereto to bring any action or proceeding against any party hereto or its respective properties in the courts of other jurisdictions.
4.3.    This Amendment may be executed in two or more counterparts thereof (and by different parties on separate counterparts), each of which shall be an original, but all of which together shall constitute one and the same instrument.  Delivery of an executed counterpart of a signature page to this Amendment by facsimile shall be effective as delivery of a manually executed counterpart of this Amendment to the fullest extent permitted by applicable law. 

4.4.    This Amendment will inure to the benefit of and be binding upon the parties hereto and their respective successors, transferees and permitted assigns.   
4.5.    The headings herein are for purposes of reference only and shall not otherwise affect the meaning or interpretation of any provision hereof.
4.6.    Each of the parties hereto hereby waives any right to have a jury participate in resolving any dispute, whether sounding in contract, tort or otherwise among any of them arising out of, connected with, relating to or incidental to the relationship between them in connection with this Amendment. The provisions of this Section shall be continuing and shall survive any termination of the Agreement as amended hereby. 
4.7.    By its signature below, the Guarantor hereby confirms that its Limited Guaranty set forth in Article IX of the Agreement remains in full force and effect as of the date hereof.
<Signature pages follow>

IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed by their respective officers as of the day and year first above written. 
TSPC, INC., as Transferor

By:  /s/ Robert J. Zalupski        
Name: Robert J. Zalupski
Title: Vice President and Treasurer

TRIMAS CORPORATION, individually, as
Collection Agent

By:  /s/ Robert J. Zalupski        
Name: Robert J. Zalupski
Title: VP Finance, Corporate Development and Treasurer
TRIMAS COMPANY, LLC, individually, as
Guarantor

By:  /s/ Robert J. Zalupski        
Name: Robert J. Zalupski
Title: Vice President and Treasurer
WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Purchaser, as LC Issuer and as Administrative Agent

By:  /s/ Ryan C. Tozier                    
Name: Ryan C. Tozier    
Title:     Vice President

ANNEX I

EXHIBIT C
FISCAL MONTHS

FY 2014

	
		
	Month
	Fiscal Month End Dates

	January
	2/2/2014

	February
	3/2/2014

	March
	3/31/2014

	April
	5/4/2014

	May
	6/1/2014

	June
	6/30/2014

	July
	8/3/2014

	August
	8/31/2014

	September
	9/30/2014

	October
	11/2/2014

	November
	11/30/2014

	December
	12/31/2014

FY 2015

	
		
	Month
	Fiscal Month End Dates

	January
	2/1/2015

	February
	3/1/2015

	March
	3/31/2015

	April
	5/3/2015

	May
	5/31/2015

	June
	6/30/2015

	July
	8/2/2015

	August
	8/30/2015

	September
	9/30/2015

	October
	11/1/2015

	November
	11/29/2015

	December
	12/31/2015

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