Document:

CONSULTING
AGREEMENT

 

THIS
CONSULTING AGREEMENT (the “Agreement”) is made as of the 20th day of February, 2012 (the “Effective
Date”), by and between DOCUMENT SECURITY SYSTEMS, INC. (“DSS” or “Company”) and ipCAPITAL
GROUP, INC. (“Consultant”).

 

RECITALS:

 

WHEREAS,
Consultant is engaged in business of digital business and intellectual property consulting;

 

WHEREAS,
Company is engaged in the business of, among other things, developing, licensing and selling anti-counterfeiting technologies,
processes, services and products providing protection against a wide range of security threats, including forgery, counterfeiting
and unauthorized copying, scanning and photo imaging;

 

WHEREAS,
Company desires to retain Consultant to provide the consulting services (as defined in Section 2(a), below) set forth in this Agreement;
and

 

WHEREAS, Company
and Consultant recognize that in the course of providing the consulting services, Consultant will be exposed to and have access
to certain confidential information of Company and that there is a need for Company to protect such confidential information from
unauthorized use and disclosure.

 

PROVISIONS:

 

NOW, THEREFORE,
in consideration of the mutual covenants and promises herein contained, and for other good and valuable consideration the receipt
and sufficiency of which are expressly acknowledged, the parties hereby agree as follows:

 

1.         Appointment.
By this Agreement, the Company appoints Consultant, and Consultant accepts such appointment, to provide advice and consulting services
to the Company, in accordance with the terms and conditions of this Agreement.

 

2.          Duties
and Responsibilities.

 

(a)  Services.
During the term of this Agreement Consultant shall perform the services described in this Section 2(a) (collectively, the “Services”):

 

		(i)	Ongoing Consulting Services with respect to DSS:

 

		·	Provision of strategic advice to DSS senior management on development of DSS Digital Group infrastructure
and business (cloud computing).

 

(b) Hours
of Consulting. Consultant shall devote whatever time Consultant deems necessary to performance of the Services during the Term.

 

    	DSS Consulting Agreement	 	 

    	 

    

 

(c) Scheduling.
The Consultant will develop and maintain a detailed schedule for completion of Services. The schedule will consist of a written
work plan showing activities to be performed and their sequence.

 

3.          Term
and Termination.

 

(a) Term.
Unless earlier terminated as provided in this Section 3, the term (“Term”) of this Agreement shall commence on the
Effective Date and shall continue until the third anniversary of the Effective Date, unless earlier terminated by mutual agreement
of the parties or in accordance with Sections 3(b) or 3(c) hereunder.

 

(b) Breach with
Right to Cure. Either party may terminate this Agreement in the event the other party materially breaches this Agreement and
fails to cure such breach within fifteen (15) days after receiving written notice of such breach.

 

(c) Breach of
Representations and Warranties. Company may terminate this Agreement immediately upon notice to Consultant in the event of
any breach by Consultant of Section 5 hereof, or of any material provision of any non-disclosure agreement (“NDA”)
currently in effect between the parties.

 

(d) Survival.
Upon termination of this Agreement the provisions of Sections 5 and 6(b) hereof, and any other provision that by its nature survives
termination of this Agreement, shall survive termination of this Agreement.

 

4.          Compensation
and Expenses. 

 

(a) Compensation.
In consideration for Consultant’s performance of the Services described in Sections 2(a)(i) hereof during the Term of this
Agreement, Company shall compensate Consultant by issuing a five-year warrant (the “Warrant”) to purchase up to 200,000
shares of DSS Common Stock (the “Warrant Stock”) at a price of $4.50 per share (the “Warrant Price”), to
vest in equal installments of 33 1/3% on each of the first, second and third anniversaries following the issuance date of the Warrant.
A copy of the form Warrant is annexed hereto as Exhibit A.

 

(b) Expenses.
The Company may reimburse Consultant, in its discretion, for all reasonable and necessary business and travel expenses actually
incurred by Consultant in performing the Services, subject to receipt of a written request for reimbursement, accompanied by appropriate
supporting documentation. Consultant may request reimbursement not more frequently than once every month during the Term of this
Agreement.

 

(c) Withholding;
Benefits. All fees payable to Consultant under this Agreement shall be made in full, and without any withholding, deduction,
or offset of any state or federal withholding taxes, FICA, SDI, or income taxes, nor shall the Company be obligated to pay any
of Consultant’s employees’ taxes. Consultant hereby covenants and agrees that he shall be solely responsible for all
taxes, withholding, FICA, SDI, and other similar items (both employee and employer portions) with respect to all fees paid by the
Company under this Agreement, and agrees to indemnify and hold the Company harmless with respect to such taxes and withholding.

 

    	DSS Consulting Agreement	2	 

    	 

    

 

5.          Confidential
Information.

 

(a) Definition
of Confidential Information. “Confidential Information” means any and all patents, patents-pending, source-code,
trade secrets, know-how, confidential knowledge, customer information, financial information, or any other proprietary information
existing as of the date of this Agreement, or thereafter developed, pertaining to Company, its affiliates and subsidiaries, or
any of their respective existing or prospective clients, customers, or consultants. By way of illustration but not limitation,
“Confidential Information” includes (i) inventions, ideas, concepts, improvements, discoveries, trade secrets, processes,
data, programs, knowledge, know-how, designs, techniques, formulas, test data, computer code, other works of authorship and designs
whether or not patentable, copyrightable, or otherwise protected by law; (ii) information regarding research, development, new
products and services, marketing plans and strategies, merchandising and selling, business plans and processes, data models, strategies,
forecasts, projections, profits, investments, operations, financings, records, budgets and unpublished financial statements, licenses,
prices and costs, suppliers and customers; and (iii) identity, requirements, preferences, practices and methods of doing business
of specific parties with whom a party transacts business, and information regarding the skills and compensation of employees of
such party and independent contractors performing services for such party.

 

(b) Confidentiality
Obligations. Consultant acknowledges that irreparable injury and damage will result from disclosure of the Confidential Information
to third parties or its use for purposes other than those connected with the Services. Consultant agrees, indefinitely:

 

(i)          To
hold the Confidential Information in strictest confidence.

 

(ii)
        Not to disclose Confidential Information to any third party except as specifically
authorized herein or as specifically authorized by Company, and to use all precautions necessary to prevent the unauthorized disclosure
of the 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 make or use any copies, synopses or summaries of oral or written material made available by Company to Consultant, except as
are necessary to carry out Consultant’s duties and/or obligations as a Consultant.

 

(iv)
      In the event of disclosure in accordance with Section 5(b)(ii) hereof,
to limit disclosure to persons with a bona fide need to know the Confidential Information, 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 an agreement in writing to be bound by the restrictions imposed by this Agreement.

 

    	DSS Consulting Agreement	3	 

    	 

    

 

(v)
         In the event Consultant is required by law to
disclose such Confidential Information, to provide Company with prompt written notice of such requirement so that Company 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 Company waives compliance with the provisions of this Agreement
in writing, to furnish only that portion of Confidential Information that is legally required and to use its best efforts to obtain
reliable assurance that confidential treatment will be accorded to that portion of the Confidential Information to be disclosed.

 

(vi)
         To the extent that the terms of this Section 5
conflict with those contained in any previous NDA issued between the parties, the terms of the NDA shall govern.

 

(c) Return of
Confidential Information. Upon Company's request and upon the termination of this Agreement, Consultant will promptly return
to Company all written material and other documentation which includes any of the Confidential Information, and will, at Company's
request, provide Company with a written certification that Consultant has done so.

 

(d) Unauthorized
Disclosure of Confidential Information. If it appears that Consultant has disclosed, or has threatened to disclose, any Confidential
Information in violation of this Section, Company shall be entitled to an injunction to restrain Consultant from disclosing, in
whole or in part, such information as a result of Consultant’s violation of this Section. Company shall not be prohibited
by this provision from pursuing all other legal and equitable remedies available, including a claim for losses and damages.

 

6.          Representations
and Warranties; Indemnification.

 

(a) Consultant hereby represents and
warrants to Company as follows:

 

(i)           Consultant
is authorized to enter into this Agreement and perform as contemplated herein;

 

(ii)          Consultant
will perform hereunder in compliance with all applicable U.S. and international laws;

 

(iii)         That
Services will be performed in a diligent and professional manner, consistent with generally accepted industry standards;

 

(iv)        That
to the best of Consultant’s knowledge, the Services will not violate any trademark, trade secret, copyright, patent or other
intellectual property right of any third party;

 

(v)         That
Consultant’s performance under this Agreement will not violate any contract, agreement, or other document to which Consultant
is subject.

 

    	DSS Consulting Agreement	4	 

    	 

    

 

(b) Consultant
will defend, indemnify and hold harmless Company from and against any and all claims, actions, demands, liabilities, losses, damages,
judgments, settlements, costs and expenses (including reasonable attorneys' fees) (any or all of the foregoing hereinafter referred
to as "Losses") insofar as such Losses (or actions in respect thereof) arise out of or are based on (i) the acts or omissions
of Consultant, or (ii) a material breach of any representation, warranty or covenant made by Consultant hereunder or in any NDA
previously executed by the parties.

 

7.          General.

 

(a) Notices.
All notices under this Agreement may be given by personal delivery, by nationally recognized overnight courier, or by certified
mail, return receipt requested, enclosed in a duly post-paid envelope and addressed to the post office address of the party to
receive the address provided by the party to receive notice. Any notice to Company sent pursuant to this Section shall be addressed
to the Chief Executive Officer.

 

(b) Independent
Contractor. Consultant is, and at all times will be, an independent contractor. Nothing in this Agreement shall be deemed
to create an employer/employee, principal/agent, or joint venture relationship. Unless expressly agreed to in writing, neither
party has the authority to enter into any contracts on behalf of the other party or otherwise act on behalf of the other party.

 

(c) Governing
Law and Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State
of New York, without reference to New York’s conflicts of law principles. The federal and state courts residing in
Monroe County, New York shall have exclusive jurisdiction over any claim brought under this Agreement, and the parties hereby irrevocably
consent to the personal jurisdiction of such courts.

 

(d) Entire Agreement.
This Agreement shall constitute the entire agreement between the parties and supersedes and replaces all other agreements oral
and written with respect to its subject matter. This Agreement may not be modified, amended
or terminated except by a writing signed by all parties to it.

 

(e) Assignment.
Consultant may not assign any of its rights or obligations under this Agreement to any other person or entity (including any subcontractor).
All of the terms and conditions of this Agreement shall be binding upon, shall inure to the benefit of, and shall be enforceable
by the respective successors and assigns of the parties. Any attempted assignment in conflict with the terms herein shall be deemed
null and void.

 

(f) Remedies.
The parties acknowledge that the financial hardship to a non-defaulting party as a result of breach of this Agreement may be difficult
or impossible to measure in dollars and that no remedy at law will be adequate to compensation the non-breaching party for such
violation; therefore, in any action to enforce this Agreement, a party shall be entitled to preliminary, temporary or permanent
injunctive relief and the other party waives the defense of adequate remedy at law, acknowledging that no such remedy exists. In
the event of litigation to enforce the terms of this Agreement, the losing party agrees to pay the substantially prevailing party's
costs and expenses incurred including, without limitation, reasonable attorneys' fees, expert witness fees and disbursements. Each
and all of the rights and remedies provided for in the Agreement shall be cumulative. No one right or remedy shall be exclusive
of the others or any right or remedy allowed in law or in equity. 

 

    	DSS Consulting Agreement	5	 

    	 

    

 

(g) Waiver.
No waiver by Company of any failure by Consultant to keep or perform any promise of condition of this Agreement shall be a waiver
of any proceeding or succeeding breach of the same or any other promise or condition. No waiver of Company of any right shall be
construed as a waiver of any other right.

 

(h) Severability.
If any provision of this Agreement shall be held invalid or unenforceable by competent authority, such
provision shall be construed so as to be limited or reduced to be enforceable to the maximum extent compatible with the law as
it shall then appear. The total invalidity or unenforceability of any particular provision of this Agreement shall not affect the
other provisions hereof and this Agreement shall be construed in all respects as if such invalid or unenforceable provision were
omitted.

 

(i) 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 on any counterpart by email PDF, facsimile or other
electronic means will be deemed an original signature to this Agreement.

 

IN
WITNESS WHEREOF, each of the parties hereto has executed this Agreement as of the Effective Date.

 

	 	DOCUMENT SECURITY SYSTEMS, INC.
	 	 	 
	 	By:	/s/ Patrick Whtie
	 	 	Patrick White, CEO
	 	 	 
	 	IpCAPITAL GROUP, INC. (CONSULTANT)
	 	 	 
	 	By:	/s/ John Cronin
	 	 	Name: John Cronin
	 	 	Title: Managing Director and Chairman

 

    	DSS Consulting Agreement	6	 

    	 

    

 

Exhibit
A

 

Form
of Warrant

 

(Attached)

 

    	DSS Consulting Agreement	7CONSULTING AGREEMENT

 

AGREEMENT
made as of the 20th day of February, 2012 by and between Document Security Systems, Inc.,
maintaining its principal offices at the address 28 Main Street East Suite 1525 Rochester, NY 14614 (hereinafter referred
to as "Client") and Century Media Group maintaining its principal offices at 260 Madison Ave. New York, NY 10016 (hereinafter
referred to as the "Company").

 

WITNESSETH:

 

WHEREAS, Company is engaged
in the business of providing and rendering investor relations and media communications services and has knowledge, expertise and
personnel to render the requisite services to Client; and

 

WHEREAS, Client is desirous
of retaining Company as a “general contractor” for the purpose of obtaining investor relations and corporate communications
services so as to better, more fully and more effectively deal and communicate with the general public, its shareholders, and the
investment community.

 

NOW, THEREFORE, in consideration
of the premises and of the mutual covenants and agreements contained herein, it is agreed as follows:

 

1.           Engagement
of Company. Client herewith engages Company and Company agrees to render to Client investor relations, media communications,
advisory and consulting services as described below, for the term of this Agreement.

 

A.   The consulting
services to be provided by the Company shall include, but are not limited to, assisting in the implementation and maintenance of
an ongoing program to increase the investment community's awareness of Client's activities and to stimulate the investment community's
interest in Client through the retention of, but not limited to Zacks SCR Program, Standard & Poors Stock Report, PRNewswire
Capital Markets Visibility 365 and full suite of proprietary services. Client acknowledges that Company's ability to relate information
regarding Client's activities is directly related to the information provided by Client to the Company.

 

B.   Client
acknowledges that Company will devote such time as is reasonably necessary to perform the services for Client, having due regard
for Company's commitments and obligations to other businesses for which it performs consulting services.

 

C.   Company
will assist Client in press release production and required clearance with NYSE Amex, and with editing. Company will require written
authorization to disseminate each individual release; authorization must be given by a principle of the Client or Corporate Counsel.
Company will manage inbound Shareholder inquiries as well as assist with the organization of quarterly calls with service to be
provided by Accu Talk or similar. Company will assist Client in conducting annual and special shareholder meetings. Direct costs
for these services to be assumed by the Client

 

    	Page | 1

    	 

    

 

D.    The services to be rendered
by Company to Client shall under NO circumstances include the following:

 

i.   Any activities which
could be deemed by the Securities and Exchange Commission to constitute investment banking or any other activities requiring Consultant
to be registered as a broker-dealer under the Securities Act of 1934.

ii.   Any
activities which could be deemed to be in connection with the offer or sale of securities in a capital-raising transaction.

iii. Any paid
for research or promotional tout services.

 

2.           Compensation.
As compensation for the services provided for in this Agreement, the Client shall pay Company as follows, subject to and contingent
upon Client receiving approval of corresponding NYSE Amex Additional Listing Application for 250,000 shares of Client’s common
stock underlying the proposed warrant:

 

		·	One Hundred Twenty Thousand Dollars ($120,000)
to be paid at a rate of Ten Thousand Dollars ($10,000) per month for the term of this Agreement, commencing with the execution
of this Agreement. 

		·	Client shall grant to the Company a cash
Warrant (the “Warrant”); to purchase Two Hundred Fifty Thousand (250,000) shares (the “Warrant Shares”)
of the common stock of Document Security Systems, Inc., said Warrants shall be exercisable
for a period of Fourteen Months (14) commencing on the date Client receives NYSE Amex approval of the underlying Warrant Shares,
at the following exercise prices:

 

		Ø	50,000 at $4.50 per share

		Ø	50,000 at $4.75 per share

		Ø	50,000 at $5.00 per share

		Ø	50,000 at $5.25 per share

		Ø	50,000 at $6.00 per share

 

3.           Term
and Termination. This Agreement shall be for a period of Twelve (12) Months commencing February 20, 2012 and terminating
February 20, 2013. This Agreement shall automatically terminate effective on February 20, 2013, unless renewed upon mutual agreement
of the parties, or unless earlier terminated as described below in this Section 3. Either party hereto shall have the right to
terminate this Agreement upon 30 days prior written notice to the other party after the first 30 days. At the conclusion of this
Agreement, or its termination, all confidential data provided by the Client to Consultant shall either be destroyed or returned
to the Client.

 

    	Page | 2

    	 

    

 

4.           Treatment
of Confidential Information. Company hereby agrees to use all non-public information provided to it by Client (“Confidential
Information”) solely for the purpose of rendering services to Client pursuant to its engagement hereunder and to treat confidentially
such information for so long as such information remains non-public. Except as contemplated by this agreement or as required by
applicable law, Company will not disclose such confidential information to a third party (other than directors, officers, employees
or outside advisors of Company) or use such Confidential Information for its own benefit or the benefit of a third party without
the prior consent of Client. This restriction shall not apply to any Confidential Information: (a) that becomes known generally
to the public; (b) for which disclosure is required by applicable law, legal process, or any order or mandate of a court or other
governmental authority to be disclosed; or (c) that is reasonably believed by Company to be required to be disclosed in connection
with a lawsuit or other legal or administrative action, provided, that in the case of clauses (b) or (c), Company shall,
unless otherwise prohibited from doing so, give Client reasonable advance written notice of the Confidential Information intended
to be disclosed and the reasons and circumstances surrounding such disclosure, in order to permit the Client to seek a protective
order or other appropriate request for confidential treatment of the applicable Confidential Information. Company shall obtain
no rights of any kind in any Confidential Information.

 

Company acknowledges that
it is aware that U.S. and state securities laws impose restrictions on trading in securities when in possession of material, non-public
information and has adopted securities trading policies to that effect.

 

5.           Representation
by Company of other clients. Client acknowledges and consents to Company rendering investor relations, consulting and/or
communications services to other clients of the Company engaged in the same or similar business as that of Client.

 

6.           Indemnification
by Client as to Information Provided to Company. Client acknowledges that Company, in the performance of its duties, will
be required to rely upon the accuracy and completeness of information supplied to it by Client's officers, directors, agents and/or
employees. Client agrees to indemnify, hold harmless and defend Company, its officers, agents and/or employees from any proceeding
or suit which arises out of or is due to the inaccuracy or incompleteness of any material or information supplied by Client to
Company, to the extent that such proceeding or suit arises from the use of such material or information as contemplated by this
Agreement.

 

7.           Independent
Contractor. It is expressly agreed that Company is acting as an independent contractor in performing its services hereunder.
Client shall carry no workers compensation insurance or any health or accident insurance on Company or consultant's employees.
Client shall not pay any contributions to social security, unemployment insurance, Federal or state withholding taxes nor provide
any other contributions or benefits which might be customary in an employer-employee relationship. Company shall indemnify Client
for any such payment or taxes for which Client may become liable as a consequence of this Agreement or the services rendered by
Company or its employees hereunder.

 

    	Page | 3

    	 

    

 

8.           Assignment.
The Company may assign either this Agreement or any of its rights, interests, or obligations hereunder with the prior written notification
of the other party.

 

9.           Notices.
Any notice to be given by either party to the other hereunder shall be sufficient if in writing and sent by registered or certified
mail, return receipt requested, addressed to such party at the address specified on the first page of this Agreement or such other
address as either party may have given to the other in writing.

 

10.         Entire
Agreement. The within agreement contains the entire agreement and understanding between the parties and supersedes all
prior negotiations, agreements and discussions concerning the subject matter hereof.

 

11.         Modification
and Waiver. This Agreement may not be altered or modified except by writing signed by each of the respective parties hereof.
No breach or violation of this Agreement shall be waived except in writing executed by the party granting such waiver.

 

12.         Law
to Govern; Forum for Disputes. This Agreement shall be governed by the laws of the State of New York without giving effect
to the principle of conflict of laws. Each party acknowledges to the other that courts within the County of New York shall be the
sole and exclusive forum to adjudicate any disputes arising under this agreement. In the event of delinquent fees owed to the Company,
The party prevailing in any claim under this agreement shall be entitled to recover reasonable attorneys’ fees and expenses
form the other.

 

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

 

	By:	/s/ Jack J. Zahran	 
	Century Media Group by Durham Advisors LLC	 
	Jack J. Zahran	 
	Managing Partner	 
	 	 	 
	By:	/s/ Patrick Whtie	 
	Document Security Systems, Inc.	 
	Patrick A. White as	 
	Chief Executive Officer	 

 

    	Page | 4

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