Document:

Exhibit 10.6

 

CONFIDENTIALITY, NON-COMPETITION, NON-SOLICITATION
AND INTELLECTUAL PROPERTY AGREEMENT

 

This Confidentiality,
Non-Competition, Non-Solicitation and Intellectual Property Agreement (the “Agreement”) is made as of the 1st
day of October, 2012, by and between Document Security Systems, Inc., a New York corporation (“DSS”) and Patrick White
(“Consultant”). Reference is hereby made to that certain Consulting Agreement, dated as of even date herewith (the
“Consulting Agreement”), between DSS and the Consultant. Capitalized terms used but not defined herein shall have the
meanings ascribed to such terms in the Consulting Agreement. The effective date of this Agreement shall be the date of the consummation
of the Merger Agreement. If the transactions contemplated under the Merger Agreement are not consummated and the Merger Agreement
is terminated in accordance with its terms, then this Agreement shall be automatically terminated contemporaneously therewith and
be of no force or effect.

 

NOW, THEREFORE,
in consideration of the engagement and continued engagement of Consultant by DSS and the mutual promises and covenants set
forth herein, the parties hereto agree as follows:

 

1.                 
Confidential Information.

  

(a)               
For purposes of this Agreement, “Confidential Information” shall include any nonpublic knowledge and information
relating to the actual or anticipated business or developments of DSS, including but not limited to technical data, trade secrets,
intellectual property, know-how, product plans, customer information, software and source codes, inventions, processes, technology,
research, marketing, financial information, or other business information, provided, however, that Confidential Information shall
not include information which is or becomes publicly known without violation of any confidentiality obligation.

 

(b)              
Consultant acknowledges that irreparable injury and damage to DSS will result from disclosure of Confidential Information
to third parties or its use for any purposes. Consultant agrees, indefinitely:

 

(i)                
to hold the Confidential Information in strictest confidence;

 

(ii)              
not to disclose such Confidential Information to any third party except as specifically authorized, in advance, in writing,
by DSS, and to use all precautions necessary to prevent the unauthorized disclosure of Confidential Information, including, without
limitation, protection of documents from theft, unauthorized duplication and discovery of contents, and restrictions on access
by other persons to the Confidential Information;

 

(iii)            
not to use any of the Confidential Information for any purpose, except as authorized in advance, in writing, by DSS;

 

(iv)            
in the event of disclosure in accordance with Section 1(b)(ii) above, to limit disclosure to persons with a bona fide need
to know Confidential Information and to the extent necessary to accomplish the purpose for which DSS has entered into this Agreement,
to communicate to all persons to whom such Confidential Information is made available the strictly confidential nature of such
Confidential Information and to obtain from all such persons agreement, in writing, to be bound by the restrictions imposed by
this Agreement; and

 

    	 

    	 	

    
 

(v)              
in the event Consultant is required by law or legal process to disclose any Confidential Information, to provide DSS with
ten (10) days prior written notice of such requirement (unless a shorter time period is specified by law or legal process as to
the required response time) so that DSS may seek a protective order or other appropriate remedy and/or waive compliance with the
provisions of this Agreement; in the event that such protective order or other remedy is not obtained, or that DSS waives compliance
with the provisions of this Agreement, to furnish only that portion of Confidential Information that is legally required and to
use Consultant’s best efforts to obtain reliable assurances that confidential treatment will be accorded to that portion
of Confidential Information to be disclosed.

 

2.                 
Restrictive Covenants.

  

(a)               
Company Goodwill. Consultant acknowledges that DSS is engaged in the business of developing, licensing and
selling anti-counterfeiting technologies and products (the “Business”), which is highly competitive. Consultant acknowledges
that DSS will invest significant time, money, training and resources in Consultant to develop and maintain the Business and to
otherwise create goodwill. Consultant acknowledges that the investments made by DSS directly develop goodwill for new customers
of DSS and maintain goodwill for its existing customers. Consultant understands and acknowledges that the Confidential Information
Consultant will have access to as a Consultant of DSS is not available to the general public and is not readily ascertainable through
public sources, and is DSS’ proprietary trade secret and a unique and valuable asset of DSS. Consultant further acknowledges
that but for Consultant’s consultant relationship with DSS, Consultant would not have access to the Confidential Information,
and that all uses of Confidential Information inure to the benefit of DSS in furtherance of the development of goodwill for its
customers. Consultant further acknowledges that Consultant owes a fiduciary duty to DSS because of Consultant’s status as
a Consultant of DSS, and this duty encompasses a duty to act in good faith and to faithfully serve and be mindful of all of DSS’
interests. Consultant also acknowledges that if Consultant left the engagement of DSS, Consultant would be in an advantageous position,
because of the Confidential Information provided to Consultant, to obtain the Business of and to serve DSS’ customers and
to compete with DSS. Consultant further acknowledges that Consultant’s engagement or employment by a competitor of DSS would
necessarily require that Consultant disclose or use Confidential Information provided to Consultant by DSS, and that the use of
such Confidential Information to obtain the Business of DSS’ customers and to compete with DSS would be a breach of this
Agreement. Therefore, Consultant acknowledges that the value of the Business would be seriously diminished if Consultant was to
violate the confidentiality provisions in Section 1 or if Consultant engaged in certain conduct during a certain time period, as
set forth in this Section 2 or below in Section 3.

 

(b)              
Non-Competition Covenant. While engaged with DSS (except for the exclusive benefit of DSS), and for a period
of one (1) year from and after the date of termination of engagement with DSS (the “Non-Compete Restricted Period”),
Consultant shall not engage or compete, directly or indirectly, as a principal,
on his or its own account, or as a shareholder, officer, director, employee, agent, partner or joint venturer in any corporation
or business entity, in any business engaged in the sale, distribution, manufacture or provision of products, technologies or services
relating to the development of software and/or cloud computing solutions in the areas of brand protection, secure printing solutions
and redaction software solutions, or relating to anti-counterfeiting or authentication technologies, in any geographical area in
which the DSS or any Subsidiary of DSS has heretofore marketed such products, technologies or services; nor during such period
and within the same area to extend credit, lend money, furnish quarters or give advice to any such business or proposed business
entity; nor within the same area to ship or cause to be shipped or participate in the shipping of any such products for purposes
of resale; provided, however, that nothing contained herein shall be construed as preventing an investment in less than five percent
(5%) of the securities of a company traded on a recognized stock exchange or market. 

 

    	 

    	 	

    
 

(c)               
Non-Solicitation Covenant. While engaged by DSS (except for the exclusive benefit of DSS), and for a period
of one (1) year from and after the date of termination of his engagement with DSS (the “Non-Solicitation Restricted Period”),
Consultant shall not, at any time solicit, or attempt to solicit, or accept business from, directly or indirectly, any Customer
of DSS (or any subsidiary or division of DSS) that has purchased or licensed DSS’ (or any subsidiary or division of DSS)
intellectual property, products or services, nor solicit, or attempt to solicit, any present employee of DSS (or any subdivision
or division of DSS) to become an employee of any other business or business entity; nor at any time without DSS’ prior written
consent, directly or indirectly discuss, publish or otherwise divulge any Confidential Information, unless such information is
or becomes rightfully publicly known; provided, however, that nothing contained herein shall be construed as preventing an investment
in less than five percent (5%) of the securities of a company traded on a recognized exchange or market. For purposes of this Section
2(c), a “Customer” shall mean any person, persons, foreign or domestic governmental entity or company that DSS, or
any division or subsidiary of DSS, has provided technology, products or services to during the twenty-four (24) month period immediately
preceding the date of termination of Consultant’s engagement with DSS. A Customer shall also include any person, persons,
foreign or domestic governmental entity or company that DSS is in discussions or negotiations with for the provision of such technology,
products or services at the time of Consultant’s termination of engagement with DSS.

  

(d)              
Consideration. The parties agree that the consideration described in that certain Consulting Agreement executed
by and between the parties on even date herewith constitutes full and fair consideration for the restrictive covenants contained
in this Agreement.

 

3.                 
Intellectual Property Rights.

  

(a)               
Works Made For Hire. Consultant agrees that all works that Consultant produces or has produced either solely
or with others, during Consultant’s engagement by DSS (each a “Work”, and collectively, the “Works”),
have been or are prepared as part of and in the course of such engagement, and, in each case, constitute a work made for hire as
that term is defined in 17 U.S.C. Section 101, and, as such, all right, title and interest in each Work, and all intellectual property
therein resulting therefrom, shall be owned by DSS. In the event that all or any part of a Work is for any reason deemed not to
be a work made for hire, or in the event that Consultant should, by operation of law, be deemed to retain any rights in a Work,
then Consultant hereby irrevocably and unconditionally assigns to DSS all right, title and interest in and to such Work, and all
intellectual property therein or resulting therefrom, and related proprietary information and intellectual property. Consultant
agrees that DSS, as the owner of all rights to the Works, has the full and complete right to prepare and create derivative works
based upon the Works and any derivative works of such Works, and to use, reproduce, publish, print, copy, market, advertise, distribute,
transfer, sell, publicly perform and publicly display, and otherwise exploit by all means now known or later developed, such Works
and derivative works anywhere in the World. Notwithstanding any language to the contrary herein, nothing herein shall be construed
to give DSS any rights to “Works” of Consultant that predate the execution of this agreement and/or that are unrelated
to software and/or cloud computing solutions in the areas of brand protection, secure printing solutions
and redaction software solutions, or relating to anti-counterfeiting or authentication technologies.

 

    	 

    	 	

    
 

(b)              
Inventions. The Consultant agrees to communicate to DSS promptly and fully in writing, in such form as DSS
may deem appropriate, all inventions, processes, techniques, discoveries, source or object code, trade secrets and know-how (whether
or not patentable or registrable under copyright or similar statutes) with respect to the development
of software and/or cloud computing solutions in the areas of brand protection, secure printing solutions and redaction software
solutions, or relating to anti-counterfeiting or authentication technologies made, discovered, conceived, developed or reduced
to practice by Consultant, whether alone or jointly with others, during Consultant’s engagement with DSS, as the case may
be, whether or not done during work hours, that (A) relate to past, existing or contemplated business or research activities of
DSS; (B) are or have been suggested by, or result from, Consultant’s engagement with DSS; or (C) result or have resulted
from the use of time, materials or facilities of DSS (each an “Invention”, and collectively, the “Inventions”).
Consultant agrees to make and maintain adequate permanent records of all Inventions, in the form of memoranda, notebook entries,
drawings, print-outs or reports relating thereto, and agrees that these records, as well as the Inventions themselves, shall be
and remain the exclusive property of DSS. Consultant hereby irrevocably and unconditionally assigns to DSS all rights, title and
interest in and to all Inventions and written material, and all intellectual property therein or resulting therefrom, which become
the property of DSS pursuant to this Section, and all patents which may be attained on them in the United States and all foreign
countries. If Consultant has any right or rights to Inventions, including any moral rights or similar rights existing under the
judicial or statutory law of any country or jurisdiction in the World, or any foreign treaty, that cannot be assigned to DSS or
waived by Consultant, then Consultant unconditionally grants to DSS during the term of such rights, an exclusive, irrevocable,
perpetual, worldwide, full paid and royalty-free license, with rights to sublicense through multiple levels of sublicenses, to
use, reproduce, publish, create derivative works of, market, advertise, distribute, sell, publicly perform and publicly display
and otherwise exploit by all means now known or later developed, such Inventions. Further, Consultant agrees, upon request of DSS,
to take all steps necessary to cause any third party to promptly and fully disclose and assign all patents, copyrights and other
intellectual property created by Consultant and such third party during the period of Consultant’s engagement. Notwithstanding
any language to the contrary herein, nothing herein shall be construed to give DSS any rights to Inventions of Consultant that
predate the execution of this agreement and/or that are unrelated to software and/or cloud computing
solutions in the areas of brand protection, secure printing solutions and redaction software solutions, or relating to anti-counterfeiting
or authentication technologies.

  

(c)               
Cooperation.  Consultant agrees to cooperate with DSS or DSS’ designee, during the period of Consultant’s
engagement with DSS and at all times thereafter, in securing and protecting patent, trademark, copyright or other intellectual
property rights in the United States and foreign countries, in any Invention or Work. Consultant specifically agrees to execute
any and all documents that DSS deems necessary, and to otherwise assist DSS, or its successors, assigns and designees, to protect
its or their interests and to vest in it or them all right, title and interest in all Inventions and Works, including assignments
of copyrights and Inventions, and to attain, enforce or defend for DSS’ benefit, patents, copyrights or other legal protections
from the Inventions and Works in the United States and all foreign countries. Consultant further agrees to provide such evidence
and testimony as may be necessary to secure and enforce DSS’ or its designees’ rights.

  

(d)              
Appointment. Consultant hereby irrevocably designates and appoints DSS, and its duly authorized officers and
agents, as Consultant’s agent and attorney-in-fact to act for and on Consultant’s behalf, to execute and file any documents,
applications or related findings and to do all other lawfully permitted acts to further the purposes set forth in this Section
including, but not limited to, the perfection of assignment and the prosecution and issuance of patents, patent applications, copyright
applications and registrations, trademark applications and registrations or other rights in connection with such Inventions and
Works thereto with the same legal force and effect as if executed by Consultant.

 

    	 

    	 	

    
 

4.                 
No Competing Obligations. Consultant hereby represents, warrants and covenants to DSS that Consultant is not,
and for the duration of Consultant’s engagement with DSS, will not become, subject to any contractual or other binding commitments
or obligations to any third party that are inconsistent with Consultant’s obligations under this Agreement, such that Consultant
can perform freely Consultant’s obligations hereunder without violating any document or other third party agreement or arrangement
or any applicable law, including, without limitation, any agreements or other obligations or documents relating to non-competition,
solicitation, confidentiality, trade secrets, proprietary information, or works for hire.

  

5.                 
Remedy for Breach of Covenants. Consultant acknowledges that the financial hardship to DSS as a result of breach
of any covenant in this Agreement by Consultant may be difficult or impossible to measure in dollars and that no remedy at law
will be adequate to compensate DSS for such violation; therefore, the parties acknowledge and agree that upon a breach or threatened
breach of this Agreement by Consultant, DSS will be entitled to injunctive relief, including the issuance of a temporary restraining
order or preliminary injunction, in addition to any rights or legal remedies at law. Should a court of competent jurisdiction declare
any of the covenants set forth in this Agreement unenforceable due to an unreasonable restriction, duration, geographical area
or otherwise, the parties agree that such court will be empowered to, and will, grant DSS injunctive relief to the extent reasonably
necessary to protect DSS’ interests. If Consultant violates any covenant contained in this Agreement, and if any action is
instituted by DSS to prevent or enjoin such violation, then the period of time during which Consultant’s activities will
be restricted as provided in this Agreement will be lengthened by a period of time equal to the period between the date upon which
Consultant is found to have first violated the restrictions, and the date on which the decree of the court disposing of the issues
upon the merits will become final and not subject to appeal.

  

6.                 
Survival. This Agreement and all the covenants contained herein will remain in effect for an indefinite period
of time and will not be terminated by any event whatsoever other than a writing signed by all parties to this Agreement which expressly
terminates it and the covenants herein.

  

7.                 
DSS. For purposes of this Agreement, the term “DSS” shall include DSS, its subsidiaries, affiliates,
successors and/or assigns. Any consultant of any subsidiary of DSS shall be deemed a consultant of DSS for purposes of enforcement
of the terms and provisions of this Agreement.

  

8.                 
Notices. Any notice required to be given with respect to this Agreement will be in writing and delivered to DSS
or Consultant’s then current address. Notice shall be deemed to have been duly given: (i) when delivered personally; (ii)
one (1) day after being deposited with a nationally recognized overnight courier with instructions for next day delivery; or (iii)
five (5) days after deposited in the mail, certified or registered, return receipt requested, and with the proper postage prepaid.

  

9.                 
Waiver. Any of the terms or conditions of this Agreement may be waived in writing by the party which is entitled
to the benefits hereof. No waiver of any of the provisions of this Agreement will be deemed or will constitute a waiver of such
provision at any time in the future or a waiver of any other provisions hereof.

  

10.             
Captions. The captions set forth in this Agreement are for convenience only and will not be considered as part
of this Agreement, nor affect in any way the meaning of the terms and provisions hereof.

  

11.             
Successors and Assigns. Notwithstanding the foregoing, Consultant may not assign all or part of his rights and
obligations under this Agreement, since they are personal to Consultant and constitute material consideration of DSS. DSS may assign
and/or delegate all or part of its rights and obligations under this Agreement without the written consent of Consultant. Upon
assignment of this Agreement by DSS, the assignee thereof will receive the benefits and burdens set forth herein.

  

    	 

    	 	

    
 

12.             
Counterparts. This Agreement may be executed in multiple counterparts, each of which will for all purposes be
deemed to be an original and all of which will constitute one and the same Agreement. A signature delivered by PDF, facsimile or
other electronic means will be deemed an original signature to this Agreement.

  

13.             
Governing Law. This Agreement will in all respects be interpreted, construed and governed by and in accordance
with the laws of the State of New York, without regard to principles of conflict of laws that would defer to or result in the application
of the laws of another jurisdiction.

  

14.             
Legal Fees. If any action or proceeding is initiated to enforce the terms and provisions of this Agreement, the
party prevailing in such action will be entitled to collect its reasonable attorneys’ fees and costs from the non-prevailing
party.

  

15.             
Exclusive Jurisdiction and Consent to Service of Process. The parties agree that any legal action, suit or proceeding
arising out of or relating to this Agreement will be instituted in a federal or state court having jurisdiction over Monroe County,
New York, which will be the exclusive jurisdiction and venue of said legal proceedings and each party hereto waives any objection
which such party may now or hereafter have to the laying of venue of any such action, suit or proceeding, and irrevocably submits
to the jurisdiction of any such court in any such action, suit or proceeding. Any and all service of process and any other notice
in any such action, suit or proceeding will be effective against such party when transmitted in accordance with the notice provision
herein. Nothing contained herein will be deemed to affect the right of any party hereto to serve process in any manner permitted
by law.

  

16.             
Entire Agreement. This Agreement constitutes the sole understanding of the parties with respect to the matters
contemplated hereby and supersedes and renders null and void all other prior agreements and understandings between the parties
with respect to such matters. To the extent any provisions of any other agreements executed by the parties shall conflict with
the subject matter of this Agreement, the provisions of this Agreement shall control.

  

17.             
Amendment. No amendment, modification or alteration of the terms or provisions of this Agreement will be binding
unless the same will be in writing and duly executed by the parties.

  

    	 

    	 	

    
 

IN WITNESS WHEREOF,
the parties have executed this Agreement on the day and year first above written.

 

	DOCUMENT SECURITY SYSTEMS, INC.	 	 
	 	 	 	 
	 	 	 	 
	By:	/s/ Philip Jones	 	 
	 	Philip Jones	 	 
	 	Chief Financial Officer	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	CONSULTANT:	 	 
	 	 	 	 
	 	 	 	 
	/s/ Patrick White	 	 
	Patrick WhiteExhibit 10.8

 

CONFIDENTIALITY, NON-COMPETITION, NON-SOLICITATION
AND INTELLECTUAL PROPERTY AGREEMENT

 

This Confidentiality,
Non-Competition, Non-Solicitation and Intellectual Property Agreement (the “Agreement”) is made as of the 1st
day of October, 2012, by and between Document Security Systems, Inc., a New York corporation (“DSS”) and Phil Jones
(“Employee”).

 

NOW, THEREFORE,
in consideration of the employment and continued employment of Employee by DSS and the mutual promises and covenants set forth
herein, the parties hereto agree as follows:

 

1.                 
Confidential Information.

  

(a)               
For purposes of this Agreement, “Confidential Information” shall include any nonpublic knowledge and information
relating to the actual or anticipated business or developments of DSS, including but not limited to technical data, trade secrets,
intellectual property, know-how, product plans, customer information, software and source codes, inventions, processes, technology,
research, marketing, financial information, or other business information, provided, however, that Confidential Information shall
not include information which is or becomes publicly known without violation of any confidentiality obligation.

  

(b)              
Employee acknowledges that irreparable injury and damage to DSS will result from disclosure of Confidential Information
to third parties or its use for any purposes. Employee agrees, indefinitely:

  

(i)                
to hold the Confidential Information in strictest confidence;

  

(ii)              
not to disclose such Confidential Information to any third party except as specifically authorized, in advance, in writing,
by DSS, and to use all precautions necessary to prevent the unauthorized disclosure of Confidential Information, including, without
limitation, protection of documents from theft, unauthorized duplication and discovery of contents, and restrictions on access
by other persons to the Confidential Information;

  

(iii)            
not to use any of the Confidential Information for any purpose, except as authorized in advance, in writing, by DSS;

  

(iv)            
in the event of disclosure in accordance with Section 1(b)(ii) above, to limit disclosure to persons with a bona fide need
to know Confidential Information and to the extent necessary to accomplish the purpose for which DSS has entered into this Agreement,
to communicate to all persons to whom such Confidential Information is made available the strictly confidential nature of such
Confidential Information and to obtain from all such persons agreement, in writing, to be bound by the restrictions imposed by
this Agreement; and

  

(v)              
in the event Employee is required by law or legal process to disclose any Confidential Information, to provide DSS with
ten (10) days prior written notice of such requirement (unless a shorter time period is specified by law or legal process as to
the required response time) so that DSS may seek a protective order or other appropriate remedy and/or waive compliance with the
provisions of this Agreement; in the event that such protective order or other remedy is not obtained, or that DSS waives compliance
with the provisions of this Agreement, to furnish only that portion of Confidential Information that is legally required and to
use Employee’s best efforts to obtain reliable assurances that confidential treatment will be accorded to that portion of
Confidential Information to be disclosed.

 

    	 

    	 	

    
 

2.                 
Restrictive Covenants.

  

(a)               
Company Goodwill. Employee acknowledges that DSS is engaged in the business of developing, licensing and selling
anti-counterfeiting technologies and products (the “Business”), which is highly competitive. Employee acknowledges
that DSS will invest significant time, money, training and resources in Employee to develop and maintain the Business and to otherwise
create goodwill. Employee acknowledges that the investments made by DSS directly develop goodwill for new customers of DSS and
maintain goodwill for its existing customers. Employee understands and acknowledges that the Confidential Information Employee
will have access to as an Employee of DSS is not available to the general public and is not readily ascertainable through public
sources, and is DSS’ proprietary trade secret and a unique and valuable asset of DSS. Employee further acknowledges that
but for Employee’s employment relationship with DSS, Employee would not have access to the Confidential Information, and
that all uses of Confidential Information inure to the benefit of DSS in furtherance of the development of goodwill for its customers.
Employee further acknowledges that Employee owes a fiduciary duty to DSS because of Employee’s status as an Employee of DSS,
and this duty encompasses a duty to act in good faith and to faithfully serve and be mindful of all of DSS’ interests. Employee
also acknowledges that if Employee left the employ of DSS, Employee would be in an advantageous position, because of the Confidential
Information provided to Employee, to obtain the Business of and to serve DSS’ customers and to compete with DSS; Employee
further acknowledges that Employee’s employment by a competitor of DSS would necessarily require that Employee disclose or
use Confidential Information provided to Employee by DSS, and that the use of such Confidential Information to obtain the Business
of DSS’ customers and to compete with DSS would be a breach of this Agreement. Therefore, Employee acknowledges that the
value of the Business would be seriously diminished if Employee was to violate the confidentiality provisions in Section 1 or if
Employee engaged in certain conduct during a certain time period, as set forth in this Section 2 or below in Section 3.

  

(b)              
Non-Competition Covenant. While employed with DSS (except for the exclusive benefit of DSS), and for a period
of one (1) year from and after the date of termination of employment with DSS (the “Non-Compete Restricted Period”),
Employee shall not engage or compete, directly or indirectly, as a principal,
on his or its own account, or as a shareholder, officer, director, employee, agent, partner or joint venturer in any corporation
or business entity, in any business engaged in the sale, distribution, manufacture or provision of products, technologies or services
relating to the development of software and/or cloud computing solutions in the areas of brand protection, secure printing solutions
and redaction software solutions, or relating to anti-counterfeiting or authentication technologies, in any geographical area in
which the DSS or any Subsidiary of DSS has heretofore marketed such products, technologies or services; nor during such period
and within the same area to extend credit, lend money, furnish quarters or give advice to any such business or proposed business
entity; nor within the same area to ship or cause to be shipped or participate in the shipping of any such products for purposes
of resale; provided, however, that nothing contained herein shall be construed as preventing an investment in less than five percent
(5%) of the securities of a company traded on a recognized stock exchange or market. 

  

(c)               
Non-Solicitation Covenant. While employed with DSS (except for the exclusive benefit of DSS), and for a period
of one (1) year from and after the date of termination of employment with DSS (the “Non-Solicitation Restricted Period”),
Employee shall not, at any time solicit, or attempt to solicit, or accept business from, directly or indirectly, any Customer of
DSS (or any subsidiary or division of DSS) that has purchased or licensed DSS’ (or any subsidiary or division of DSS) intellectual
property, products or services, nor solicit, or attempt to solicit, any present employee of DSS (or any subdivision or division
of DSS) to become an employee of any other business or business entity; nor at any time without DSS’ prior written consent,
directly or indirectly discuss, publish or otherwise divulge any Confidential Information, unless such information is or becomes
rightfully publicly known; provided, however, that nothing contained herein shall be construed as preventing an investment in less
than five percent (5%) of the securities of a company traded on a recognized exchange or market. For purposes of this Section 2(c),
a “Customer” shall mean any person, persons, foreign or domestic governmental entity or company that DSS, or any division
or subsidiary of DSS, has provided technology, products or services to during the twenty-four (24) month period immediately preceding
the date of termination of Employee’s employment with DSS. A Customer shall also include any person, persons, foreign or
domestic governmental entity or company that DSS is in discussions or negotiations with for the provision of such technology, products
or services at the time of Employee’s termination of employment with DSS.

 

    	 

    	 	

    
 

(d)               
Consideration. The parties agree that the consideration described in that certain Severance Letter executed by and
between the parties on even date herewith constitutes full and fair consideration for the restrictive covenants contained in this
Agreement.

  

3.                 
Intellectual Property Rights.

   

(a)               
Works Made For Hire. Employee agrees that all works that Employee produces or has produced either solely or
with others, during Employee’s employment by DSS (each a “Work”, and collectively, the “Works”),
have been or are prepared as part of and in the course of such employment, and, in each case, constitute a work made for hire as
that term is defined in 17 U.S.C. Section 101, and, as such, all right, title and interest in each Work, and all intellectual property
therein resulting therefrom, shall be owned by DSS. In the event that all or any part of a Work is for any reason deemed not to
be a work made for hire, or in the event that Employee should, by operation of law, be deemed to retain any rights in a Work, then
Employee hereby irrevocably and unconditionally assigns to DSS all right, title and interest in and to such Work, and all intellectual
property therein or resulting therefrom, and related proprietary information and intellectual property. Employee agrees that DSS,
as the owner of all rights to the Works, has the full and complete right to prepare and create derivative works based upon the
Works and any derivative works of such Works, and to use, reproduce, publish, print, copy, market, advertise, distribute, transfer,
sell, publicly perform and publicly display, and otherwise exploit by all means now known or later developed, such Works and derivative
works anywhere in the World.

  

(b)              
Inventions. The Employee agrees to communicate to DSS promptly and fully in writing, in such form as DSS may
deem appropriate, all inventions, processes, techniques, discoveries, source or object code, trade secrets and know-how (whether
or not patentable or registrable under copyright or similar statutes) with respect to the development
of software and/or cloud computing solutions in the areas of brand protection, secure printing solutions and redaction software
solutions, or relating to anti-counterfeiting or authentication technologies made, discovered, conceived, developed or reduced
to practice by Employee, whether alone or jointly with others, during Employee’s employment with DSS, as the case may be,
whether or not done during work hours, that (A) relate to past, existing or contemplated business or research activities of DSS;
(B) are or have been suggested by, or result from, Employee’s employment with DSS; or (C) result or have resulted from the
use of time, materials or facilities of DSS (each an “Invention”, and collectively, the “Inventions”).
Employee agrees to make and maintain adequate permanent records of all Inventions, in the form of memoranda, notebook entries,
drawings, print-outs or reports relating thereto, and agrees that these records, as well as the Inventions themselves, shall be
and remain the exclusive property of DSS. Employee hereby irrevocably and unconditionally assigns to DSS all rights, title and
interest in and to all Inventions and written material, and all intellectual property therein or resulting therefrom, which become
the property of DSS pursuant to this Section, and all patents which may be attained on them in the United States and all foreign
countries. If Employee has any right or rights to Inventions, including any moral rights or similar rights existing under the judicial
or statutory law of any country or jurisdiction in the World, or any foreign treaty, that cannot be assigned to DSS or waived by
Employee, then Employee unconditionally grants to DSS during the term of such rights, an exclusive, irrevocable, perpetual, worldwide,
full paid and royalty-free license, with rights to sublicense through multiple levels of sublicenses, to use, reproduce, publish,
create derivative works of, market, advertise, distribute, sell, publicly perform and publicly display and otherwise exploit by
all means now known or later developed, such Inventions. Further, Employee agrees, upon request of DSS, to take all steps necessary
to cause any third party to promptly and fully disclose and assign all patents, copyrights and other intellectual property created
by Employee and such third party during the period of Employee’s engagement.

 

    	 

    	 	

    
 

(c)               
Cooperation.  Employee agrees to cooperate with DSS or DSS’ designee, during the period of Employee’s
employment with DSS and at all times thereafter, in securing and protecting patent, trademark, copyright or other intellectual
property rights in the United States and foreign countries, in any Invention or Work. Employee specifically agrees to execute any
and all documents that DSS deems necessary, and to otherwise assist DSS, or its successors, assigns and designees, to protect its
or their interests and to vest in it or them all right, title and interest in all Inventions and Works, including assignments of
copyrights and Inventions, and to attain, enforce or defend for DSS’ benefit, patents, copyrights or other legal protections
from the Inventions and Works in the United States and all foreign countries. Employee further agrees to provide such evidence
and testimony as may be necessary to secure and enforce DSS’ or its designees’ rights.

  

(d)              
Appointment. Employee hereby irrevocably designates and appoints DSS, and its duly authorized officers and
agents, as Employee’s agent and attorney-in-fact to act for and on Employee’s behalf, to execute and file any documents,
applications or related findings and to do all other lawfully permitted acts to further the purposes set forth in this Section
including, but not limited to, the perfection of assignment and the prosecution and issuance of patents, patent applications, copyright
applications and registrations, trademark applications and registrations or other rights in connection with such Inventions and
Works thereto with the same legal force and effect as if executed by Employee.

  

4.                 
No Competing Obligations. Employee hereby represents, warrants and covenants to DSS that Employee is not, and
for the duration of Employee’s employment with DSS, will not become, subject to any contractual or other binding commitments
or obligations to any third party that are inconsistent with Employee’s obligations under this Agreement, such that Employee
can perform freely Employee’s obligations hereunder without violating any document or other third party agreement or arrangement
or any applicable law, including, without limitation, any agreements or other obligations or documents relating to non-competition,
solicitation, confidentiality, trade secrets, proprietary information, or works for hire.

  

5.                 
Remedy for Breach of Covenants. Employee acknowledges that the financial hardship to DSS as a result of breach
of any covenant in this Agreement by Employee may be difficult or impossible to measure in dollars and that no remedy at law will
be adequate to compensate DSS for such violation; therefore, the parties acknowledge and agree that upon a breach or threatened
breach of this Agreement by Employee, DSS will be entitled to injunctive relief, including the issuance of a temporary restraining
order or preliminary injunction, in addition to any rights or legal remedies at law. Should a court of competent jurisdiction declare
any of the covenants set forth in this Agreement unenforceable due to an unreasonable restriction, duration, geographical area
or otherwise, the parties agree that such court will be empowered to, and will, grant DSS injunctive relief to the extent reasonably
necessary to protect DSS’ interests. If Employee violates any covenant contained in this Agreement, and if any action is
instituted by DSS to prevent or enjoin such violation, then the period of time during which Employee’s activities will be
restricted as provided in this Agreement will be lengthened by a period of time equal to the period between the date upon which
Employee is found to have first violated the restrictions, and the date on which the decree of the court disposing of the issues
upon the merits will become final and not subject to appeal.

  

    	 

    	 	

    

 

6.                 
Survival. This Agreement and all the covenants contained herein will remain in effect for an indefinite period
of time and will not be terminated by any event whatsoever other than a writing signed by all parties to this Agreement which expressly
terminates it and the covenants herein.

  

7.                 
DSS. For purposes of this Agreement, the term “DSS” shall include DSS, its subsidiaries, affiliates,
successors and/or assigns. Any employee of any subsidiary of DSS shall be deemed an employee of DSS for purposes of enforcement
of the terms and provisions of this Agreement.

 

8.                 
Notices. Any notice required to be given with respect to this Agreement will be in writing and delivered to DSS
or Employee’s then current address. Notice shall be deemed to have been duly given: (i) when delivered personally; (ii) one
(1) day after being deposited with a nationally recognized overnight courier with instructions for next day delivery; or (iii)
five (5) days after deposited in the mail, certified or registered, return receipt requested, and with the proper postage prepaid.

  

9.                 
Waiver. Any of the terms or conditions of this Agreement may be waived in writing by the party which is entitled
to the benefits hereof. No waiver of any of the provisions of this Agreement will be deemed or will constitute a waiver of such
provision at any time in the future or a waiver of any other provisions hereof.

  

10.             
Captions. The captions set forth in this Agreement are for convenience only and will not be considered as part
of this Agreement, nor affect in any way the meaning of the terms and provisions hereof.

  

11.             
Successors and Assigns. Notwithstanding the foregoing, Employee may not assign all or part of his rights and
obligations under this Agreement, since they are personal to Employee and constitute material consideration of DSS. DSS may assign
and/or delegate all or part of its rights and obligations under this Agreement without the written consent of Employee. Upon assignment
of this Agreement by DSS, the assignee thereof will receive the benefits and burdens set forth herein.

  

12.             
Counterparts. This Agreement may be executed in multiple counterparts, each of which will for all purposes be
deemed to be an original and all of which will constitute one and the same Agreement. A signature delivered by PDF, facsimile or
other electronic means will be deemed an original signature to this Agreement.

  

13.             
Governing Law. This Agreement will in all respects be interpreted, construed and governed by and in accordance
with the laws of the State of New York, without regard to principles of conflict of laws that would defer to or result in the application
of the laws of another jurisdiction.

  

14.             
Legal Fees. If any action or proceeding is initiated to enforce the terms and provisions of this Agreement, the
party prevailing in such action will be entitled to collect its reasonable attorneys’ fees and costs from the non-prevailing
party.

  

15.             
Exclusive Jurisdiction and Consent to Service of Process. The parties agree that any legal action, suit or proceeding
arising out of or relating to this Agreement will be instituted in a federal or state court having jurisdiction over Monroe County,
New York, which will be the exclusive jurisdiction and venue of said legal proceedings and each party hereto waives any objection
which such party may now or hereafter have to the laying of venue of any such action, suit or proceeding, and irrevocably submits
to the jurisdiction of any such court in any such action, suit or proceeding. Any and all service of process and any other notice
in any such action, suit or proceeding will be effective against such party when transmitted in accordance with the notice provision
herein. Nothing contained herein will be deemed to affect the right of any party hereto to serve process in any manner permitted
by law.

 

    	 

    	 	

    
 

16.             
Entire Agreement. This Agreement constitutes the sole understanding of the parties with respect to the matters
contemplated hereby and supersedes and renders null and void all other prior agreements and understandings between the parties
with respect to such matters. To the extent any provisions of any other agreements executed by the parties shall conflict with
the subject matter of this Agreement, the provisions of this Agreement shall control.

  

17.             
Amendment. No amendment, modification or alteration of the terms or provisions of this Agreement will be binding
unless the same will be in writing and duly executed by the parties.

 

    	 

    	 	

    

 

IN WITNESS WHEREOF,
the parties have executed this Agreement on the day and year first above written.

  

DOCUMENT SECURITY SYSTEMS, INC.

  

	By:	/s/ Patrick White		 
	 	Patrick White	 	 
	 	Chief Executive Officer	 	 

 

  

	EMPLOYEE:	 
	 	 
	/s/ Phil Jones	 
	Phil Jones

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