Document:

PURCHASE, AMENDMENT AND ESCROW AGREEMENT

 

This Purchase, Amendment
and Escrow Agreement (the “Agreement”), dated as of February 29, 2012, is being entered into among Barry Honig
(“Purchaser”), Neil Neuman (the “Seller”), Document Security Systems, Inc. a New York corporation
(the “Company”) and Grushko & Mittman, P.C. (the “Escrow Agent”).

 

WHEREAS, the Seller is
the holder of a note dated June 29, 2011, in the original principal amount of $650,000.00 (the “Note”). A copy
of the Note is annexed hereto as Exhibit A;

 

WHEREAS, the Seller desires
to sell the Note to the Purchaser and the Purchaser desires to purchase from the Note from the Seller on the terms set forth in
this Agreement;

 

WHEREAS, the Company agrees
to amend certain terms of the Note and execute and allonge setting forth the amended terms of the Note (the “Allonge”).
A copy of the Allonge is annexed hereto as exhibit B;

 

WHEREAS, the Escrow Agent
has agreed to act as escrow agent pursuant to the terms of this Agreement.

 

NOW, THEREFORE, IN CONSIDERATION
of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties agree as follows:

 

ARTICLE I

PURCHASE AND SALE

 

1.1          The
Closing. Subject to the terms and conditions set forth in this Agreement, the Seller shall sell, assign, convey, and transfer
to the Purchaser the Note, for purchase price of $578,396.42 (the “Purchase Price”). The closing of the purchase
and sale of the Note (the “Closing”) shall take place at the offices of Grushko & Mittman, P.C., within
two business days of the Escrow Agent’s receipt of the original Note, original Allonge and the Purchase Price. The date
of the Closing is hereinafter referred to as the “Closing Date.”

 

1.2          Deliveries. Prior to the Closing, the parties shall deliver or shall cause to be delivered the following to the Escrow
Agent:

 

(A)            the
Seller shall deliver the original Note;

 

(B)            the
Company shall deliver the original Allonge;

 

(C)            the
Purchaser shall deliver a signed Allonge and the Purchase price pursuant to the following wire instructions:

 

Citibank, N.A.

1155 6th Avenue

New York, NY 10036

ABA Number: 0210-00089

For Credit to: Grushko & Mittman, IOLA Trust
Account

Account Number: 9997242837

 

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1.3          Grushko
& Mittman, P.C., shall act as escrow agent in this transaction. Grushko & Mittman, P.C. has previously represented the
Purchaser. Grushko & Mittman, P.C. is representing the Purchaser in this Agreement. The Seller, the Purchaser and Company
hereby acknowledge that they have been advised of the potential conflict of interest involved in the structure of this transaction
and each acknowledges they have been given the opportunity to engage independent counsel of their own choice and waives any conflict
that may arise from the structure of this transaction.

 

1.4          Security
Interest. Any security interest arising from or securing the Note shall be terminated at the Closing. The Purchaser shall not
have a security interest securing the Note.

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES

 

2.1          Representations
and Warranties of the Seller. The Seller hereby makes the following representations and warranties:

 

(A)            Authorization;
Enforcement. The Seller has the requisite power and authority to enter into and to consummate the transactions contemplated
by this transaction and otherwise to carry out its obligations thereunder. The execution and delivery of each of the documents
by the Seller and the consummation by him of the transactions contemplated hereby have been duly authorized. Each of the documents
contemplated by this transaction has been duly executed by the Seller and, when delivered in accordance with the terms hereof,
will constitute the valid and binding obligation of the Seller enforceable against the Seller in accordance with its terms.

 

(B)            Ownership.
The Seller owns and is selling, assigning, conveying and transferring to the Purchaser all of his right, title and interest to
the Note, free and clear of all liens, mortgages, pledges, security interests, encumbrances or charges of any kind or description
and upon consummation of the transaction contemplated herein good title in the Note shall vest in Purchaser, free of all liens
and other charges.

 

(C)            No
Consents, Approvals, Violations or Breaches. Neither the execution and delivery of this Agreement by the Seller, nor the consummation
by the Seller of the transactions contemplated hereby, will (i) require any consent, approval, authorization or permit of, or
filing, registration or qualification with or prior notification to, any governmental or regulatory authority under any law of
the United States, any state or any political subdivision thereof applicable to the Seller, (ii) violate any statute, law, ordinance,
rule or regulation of the United States, any state or any political subdivision thereof, or any judgment, order, writ, decree
or injunction applicable to the Seller or any of the Seller’s properties or assets, the violation of which would have a
material adverse effect upon the Seller, or (iii) violate, conflict with, or result in a breach of any provisions of, or constitute
a default (or any event which, with or without due notice or lapse of time, or both, would constitute a default) under, or result
in the termination of, or accelerate the performance required by, any of the terms, conditions or provisions of any note, bond,
mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation to which the Seller is a party
or by which the Seller or any of the Seller’s properties or assets may be bound which would have a material adverse effect
upon the Seller except for the consent of the Company which is being given by the Company in Section 2.3(A) of this Agreement.

 

(D)            The
Seller is not now and has not been for the previous three (3) months an “Affiliate” of the Company as defined in Rule
405 under the Securities Act of 1933 (the “Securities Act”).

 

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2.2          Representations
and Warranties of the Purchaser. The Purchaser represents and warrants as follows:

 

(A)            Due
Diligence. The Purchaser acknowledges that upon execution of this Agreement, it has completed its own investigation and undertaken
any and all due diligence it requires in order to satisfy itself to enter into this Agreement and perform its obligations hereunder.
PURCHASER HAS EXAMINED THE RISK FACTORS SET FORTH IN THE COMPANY’S SEC FILINGS,
AND UNDERSTANDS THE SPECULATIVE NATURE OF AND SUBSTANTIAL RISK INVOLVED IN THE INVESTMENT
IN THE COMPANY.

 

(B)            No
Consents, Approvals, Violations or Breaches. Neither the execution and delivery of this Agreement by the Purchaser, nor the
consummation by the Purchaser of the transactions contemplated hereby, will (i) require any consent, approval, authorization or
permit of, or filing, registration or qualification with or prior notification to, any governmental or regulatory authority under
any law of the United States, any state or any political subdivision thereof or any other jurisdiction applicable to the Purchaser,
(ii) violate any statute, law, ordinance, rule or regulation of the United States any state or any political subdivision thereof
or any other jurisdiction applicable to the Purchaser, or any judgment, order, writ, decree or injunction applicable to the Purchaser
or any of its properties or assets, the violation of which would have a material adverse effect upon the Purchaser, or (iii) violate,
conflict with, or result in a breach of any provisions of, or constitute a default (or any event which, with or without due notice
or lapse of time or both would constitute a default) under, or result in the termination of, or accelerate the performance required
by, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, deed of trust, license, lease, agreement
or other instrument or obligation to which the Purchaser is a party or by which the Purchaser or any of its properties or assets
may be bound which would have a material adverse effect upon the Purchaser.

(C)            The
Purchaser (i) is an “accredited investor,” as that term is defined in Regulation D under the Securities Act of 1933,
as amended (the “Securities Act”); (ii) has such knowledge, skill and experience in business and financial
matters, based on actual participation, that the Purchaser is capable of evaluating the merits and risks of an investment in the
Company and the suitability thereof as an investment for the Purchaser; (iii) has received such documents and information as it
has requested and has had an opportunity to ask questions of representatives of the Seller concerning the terms and conditions
of the investment proposed herein, and such questions were answered to the satisfaction of the Purchaser; (iv) is in a financial
position to hold the Note for an indefinite time and is able to bear the economic risk and withstand a complete loss of its investment
in the Company; and (v) has not made an overall commitment to investments which are not readily
marketable which is disproportionate so as to cause such overall commitment to become excessive.

 

(D)            The
Purchaser understands that the Note has not been registered under applicable state or federal securities laws, and is purchasing
the Note pursuant to an exemption from the registration requirements of the Securities Act. The Purchaser understands and acknowledges
that the Note is being acquired from the Seller without the Company furnishing any information to the Purchaser and that the Purchaser
has not had any communication with the Company or any officer, director, or representative thereof in connection with the
transactions contemplated by this Agreement except as contained herein.

 

(E)            If
Purchaser has chosen to do so, Purchaser has been represented
by such legal and tax counsel and other professionals, each of whom has been personally selected
by Purchaser, as Purchaser has found necessary to consult
concerning the purchase of the Note.

 

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(F)            With
respect to the United States federal, state and foreign tax aspects of Purchaser’s investment, Purchaser is relying
solely upon the advice of Purchaser’s own tax advisors, and/or upon Purchaser’s own knowledge with respect thereto.

 

(G)            Purchaser
has not relied, and will not rely upon, any information with respect to this Agreement other than the information contained in
this Agreement. Purchaser understands that no person has been authorized to make representations or to give any information or
literature with respect to this Agreement that is inconsistent with the information that is set forth in this Agreement.

 

(H)            Purchaser understands that, other than as provided in this Agreement,
no covenants, representations, or warranties have been authorized by or will be binding upon
the Company, with regard to this Agreement, the performance of the Company or any
expectation of investment returns, including any representations, warranties or agreements
contained or made in any written document or oral communication received from or had with
the Company, its Affiliates, Company counsel or any of their respective representatives or
agents.  Purchaser has not relied upon any information or representation that
may be or has been made or given except as permitted under this Agreement. 

 

(I)            Purchaser
understands that the Note has not been registered under the Act, or pursuant to the provisions of the securities or other laws
of any other applicable jurisdictions.  The Purchaser is aware that the Note and common stock Note is convertible into are “restricted
securities” as such term is defined in Rule 144 promulgated under the Act (“Rule 144”), and they may not be
sold pursuant to Rule 144 unless all of the conditions of Rule 144 are met.

 

(J)            Purchaser
has substantial investment experience and is familiar with investments of the type contemplated by this Agreement.  Purchaser
is aware that purchase of the Note is a speculative investment involving a high degree of risk and there is no guarantee that
Purchaser will realize any gain from Purchaser’s investment or realize any tax benefits therefrom and Purchaser is further
aware that Purchaser may lose all or a substantial part of Purchaser’s investment.  Purchaser understands that there are
substantial restrictions on the transferability of the Note, and there is no existing public market for, the Note and it may not
be possible to liquidate an investment in the Note.  Purchaser affirms that Purchaser acknowledges that this investment is highly
speculative, involves a high degree of risk and, accordingly, Purchaser can afford to lose its entire investment.

 

(K)            The
address set forth herein is Purchaser’s true and correct address and Purchaser has no present intention of becoming
a resident of any other country, state, or jurisdiction prior to, or after, Purchaser’s purchase of the Note.

 

(L)            Purchaser
understands the meaning and legal consequences of the foregoing representations and warranties, which are true and correct as
of the date hereof and will be true and correct as of the Closing Date.  Each such representation and warranty shall survive the
Purchaser’s purchase of the Note.

 

(M)            The
Purchaser hereby agrees that the Company may insert the following or similar legend on the face of the Note and any shares of
the Company’s common stock issued upon conversion of the Note, if required in compliance with the Securities Act or state
securities laws:

 

“These
securities have not been registered under the Securities Act of 1933, as amended (“Act”), or any state securities
laws and may not be sold or otherwise transferred or disposed of except pursuant to an effective registration statement under the
Act and any applicable state securities laws, or an opinion of counsel satisfactory to counsel to the Company that an exemption
from registration under the act and any applicable state securities laws is available.”

 

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2.3          Consent, Representations
and Warranties of the Company. The Company hereby makes the following representations and warranties:

 

(A)            Consent.
The Company consents to the Seller’s sale, assignment, conveyance, and transfer of the Note to the Purchaser provided
for herein.

 

(B)            Authorization;
Enforcement. The Company has the requisite power and authority to enter into and to consummate the transactions contemplated
by this transaction and otherwise to carry out its obligations thereunder. The execution and delivery of each of the documents
by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized. Each of the documents
contemplated by this transaction has been duly executed by the Company and, when delivered in accordance with the terms hereof,
will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms.

 

(C)            No
Consents, Approvals, Violations or Breaches. Except for NYSE Amex Exchange Additional Listing Application approval for the common
stock underlying the conversion rights under the Note and Allonge, neither the execution and delivery of this Agreement by the
Company, nor the consummation by the Company of the transactions contemplated hereby, will (i) require any consent, approval,
authorization or permit of, or filing, registration or qualification with or prior notification to, any governmental or regulatory
authority under any law of the United States, any state or any political subdivision thereof applicable to the Company, (ii) violate
any statute, law, ordinance, rule or regulation of the United States, any state or any political subdivision thereof, or any judgment,
order, writ, decree or injunction applicable to the Company or any of the Company’s properties or assets, the violation
of which would have a material adverse effect upon the Company, or (iii) violate, conflict with, or result in a breach of any
provisions of, or constitute a default (or any event which, with or without due notice or lapse of time, or both, would constitute
a default) under, or result in the termination of, or accelerate the performance required by, any of the terms, conditions or
provisions of any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation
to which the Company is a party or by which the Company or any of the Company’s properties or assets may be bound which
would have a material adverse effect upon the Company.

 

(D)            The Company hereby represents and warrants that to its knowledge there are no defenses to the payment of the note principal
or any other sum that has or may accrue or be payable pursuant to the Note or the documents delivered together therewith or related
thereto. As of the date hereof $578,396.42 in principal and interest since February 1, 2012 at six point five percent (6.5%) is
owed on the Note.

 

(E)            The
Company acknowledges that for Rule 144 purposes the Purchaser’s holding period of the Note tacks back to June 29, 2011,
the date the Note was issued to the Seller.

 

ARTICLE III

RELEASE OF ESCROW

 

3.1.         Release
of Escrow. Subject to the provisions of Section 4.2, the Escrow Agent shall release the Note and the Reissued Notes as follows:

 

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(A)            On
the Closing Date, the Escrow Agent will simultaneously release the original Note and original Allonge to the Purchaser and the
Purchase Price to the Seller pursuant to the wire instructions set forth on Schedule 3.1(A).

 

(B)            If
the transaction does not close by February 29, 2012, the Escrow Agent shall return the Note to the Seller, the Purchase Price
to the Purchaser and the Allonge to the Company and this agreement shall terminate without any further obligation to any party
hereto.

 

(C)            Notwithstanding
the above, upon receipt by the Escrow Agent of joint written instructions (the “Joint Instructions”) signed
by each of the Seller, the Purchaser, and the Company, it shall deliver Note, Allonge and the Purchase Price in accordance with
the terms of the Joint Instructions.

 

(D)            Notwithstanding the above, upon receipt by the Escrow Agent of a final and non-appealable
judgment, order, decree or award of a court of competent jurisdiction directing delivery of the Note, Allonge and the Purchase
Price (a “Court Order”), the Escrow Agent shall deliver the Note, Allonge and the Purchase Price in accordance
with the Court Order. Any Court Order shall be accompanied by an opinion of counsel for the party presenting the Court Order to
the Escrow Agent (which opinion shall be satisfactory to the Escrow Agent) to the effect that the court issuing the Court Order
has competent jurisdiction and that the Court Order is final and non-appealable.

 

3.2.          Acknowledgement
of Parties; Disputes. The Parties acknowledge that the only terms and conditions upon which the Note, Allonge and the Purchase
Price are to be released are set forth in Sections 3 and 4 of this Agreement. Each of the Seller, the Purchaser, and the Company
reaffirms his or its respective agreement to abide by the terms and conditions of this Agreement with respect to the release of
the Note, Allonge and the Purchase Price. Any dispute with respect to the release of the Note, Allonge and the Purchase Price,
shall be resolved pursuant to Section 4.2 or by agreement among the Seller, the Purchaser, and the Company.

 

ARTICLE IV

CONCERNING THE ESCROW AGENT

 

4.1.          Duties and Responsibilities
of the Escrow Agent. The Escrow Agent’s duties and responsibilities shall be subject to the following terms and conditions:

 

(A)            Each
of the Seller, the Purchaser, and the Company acknowledges and agrees that the Escrow Agent (i)
shall not be responsible for or bound by, and shall not be required to inquire into whether any of the Seller, the Purchaser,
and the Company is entitled to receipt of the Note, Allonge and the Purchase Price
pursuant to any other agreement or otherwise; (ii) shall be obligated only for the performance of such duties as are specifically
assumed by the Escrow Agent pursuant to this Agreement; (iii) may rely on and shall be protected in acting or refraining from acting
upon any written notice, instruction, instrument, statement, request or document furnished to it hereunder and believed by the
Escrow Agent in good faith to be genuine and to have been signed or presented by the proper person or party, without being required
to determine the authenticity or correctness of any fact stated therein or the propriety or validity or the service thereof; (iv)
may assume that any person believed by the Escrow Agent in good faith to be authorized to give notice or make any statement or
execute any document in connection with the provisions hereof is so authorized; (v) shall not be under any duty to give the securities
and funds held by Escrow Agent hereunder any greater degree of care than Escrow Agent gives its own similar property; and (vi)
may consult counsel satisfactory to Escrow Agent, the opinion of such counsel to be full and complete authorization and protection
in respect of any action taken, suffered or omitted by Escrow Agent hereunder in good faith and in accordance with the opinion
of such counsel.

 

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(B)            Each
of the Seller, the Purchaser, and the Company acknowledges that the Escrow Agent is acting solely as a stakeholder at the request
of the Seller and the Purchaser and that the Escrow Agent shall not be liable for any action taken by the Escrow Agent in good
faith and believed by the Escrow Agent to be authorized or within the rights or powers conferred upon the Escrow Agent by this
Agreement. The Seller, Purchaser and Company, jointly and severally, agree to indemnify and hold harmless the Escrow Agent and
any of the Escrow Agent’s partners, employees, agents and representatives for any action taken or omitted to be taken by
the Escrow Agent or any of them hereunder, including the fees of outside counsel and other costs and expenses of defending itself
against any claim or liability under this Agreement, except in the case of gross negligence or willful misconduct on the Escrow
Agent’s part committed in its capacity as the Escrow Agent under this Agreement. The Escrow Agent shall owe a duty only
to the Seller, the Purchaser, and the Company under this Agreement and to no other person.

 

(C)            The
Seller, Purchaser and Company, jointly and severally, agree to reimburse the Escrow Agent for outside counsel fees, to the extent
authorized hereunder and incurred in connection with the performance of its duties and responsibilities hereunder.

 

(D)            The Escrow Agent
may at any time resign as Escrow Agent hereunder by giving five (5) days prior written notice of resignation to all of the Seller,
the Purchaser, and the Company. Prior to the effective date of the resignation as specified in such notice, the Seller, the Purchaser,
and the Company will issue to the Escrow Agent a Joint Instruction authorizing delivery of the Note, Allonge and the Purchase Price
to a substitute Escrow Agent selected by the Purchaser, the Seller, and the Company. If no successor Escrow Agent is named by the
Seller, the Purchaser, and the Company, the Escrow Agent may apply to a court of competent jurisdiction in the State of New York
for appointment of a successor Escrow Agent, and to deposit the Note, Allonge and the Purchase Price with the clerk of any such
court.

 

(E)            The
Escrow Agent does not have and will not have any interest in the Note, Allonge and the Purchase Price, but
is serving only as escrow agent, having only possession thereof. The Escrow Agent shall not be liable for any loss resulting from
the making or retention of any investment in accordance with this Escrow Agreement.

 

(F)            This Agreement sets forth
exclusively the duties of the Escrow Agent with respect to any and all matters pertinent thereto and no implied duties or obligations
shall be read into this Agreement.

 

(G)            The provisions of this Section
4.1 shall survive the resignation of the Escrow Agent or the termination of this Agreement.

 

4.2.          Dispute Resolution: Judgments.
Resolution of disputes arising under this Agreement shall be subject to the following terms and conditions:

 

(A)            If
any dispute shall arise with respect to the delivery, ownership, right of possession or disposition of the Note, Allonge
and the Purchase Price, or if the Escrow Agent shall in good faith be uncertain as to its duties or
rights hereunder, the Escrow Agent shall be authorized, without liability to anyone, to (i) refrain from taking any action other
than to continue to hold the Note, Allonge and the Purchase Price pending receipt of a Joint
Instruction from the Seller, the Purchaser, and the Company or (ii) deposit the Note, Allonge and the Purchase Price
with any court of competent jurisdiction in the State of New York, in which event the Escrow Agent shall give written notice thereof
to all of the Seller, the Purchaser, and the Company and shall thereupon be relieved and discharged from all further obligations
pursuant to this Agreement. The Escrow Agent may, but shall be under no duty to, institute or defend any legal proceedings which
relate to the Note, Allonge and the Purchase Price. The Escrow Agent shall have the right to
retain counsel if it becomes involved in any disagreement, dispute, or litigation on account of this Agreement or otherwise determines
that it is necessary to consult counsel.

 

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(B)            The Escrow Agent is hereby
expressly authorized to comply with and obey any Court Order. In case the Escrow Agent obeys or complies with a Court Order, the
Escrow Agent shall not be liable to the Seller, the Purchaser, or the Company or to any other person, firm, corporation or entity
by reason of such compliance.

 

ARTICLE V

GENERAL MATTERS

 

5.1.          Termination.
This escrow shall terminate upon the release of the Note, Allonge and the Purchase Price or at
any time upon the agreement in writing of the Seller, the Purchasers, and the Company.

 

5.2.          Notices. All notices,
demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless
otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt
requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand
delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most
recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective
(a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at
the address or number designated below (if delivered on a business day during normal business hours where such notice is to be
received), or the first business day following such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier
service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses
for such communications shall be:

 

 

(a)            If to the Seller, to:

Neil Neuman

16 Woodwind Lane

New Hempstead, NY 10977

 

(b)            If to the Purchaser, to: 

Barry Honig

4400 Biscayne Blvd. Suite # 850

Miami, FL 33137

 

(c)            If to the Escrow Agent, to:

Grushko& Mittman, P.C

515 Rockaway Avenue

Valley Stream, New York 11581

Fax: (212) 697–3575

Attn: Eliezer Drew

 

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(d)            If to the Company:

Document Security Systems, Inc.

28
East Main Street, Suite 15250

Rochester,
NY 14614

Attention:
CFO

 

or to such other address as any of them shall
give to the others by notice made pursuant to this Section 5.2.

 

5.3.          Assignment; Binding Agreement.
Neither this Agreement nor any right or obligation hereunder shall be assignable by any party without the prior written consent
of the other parties hereto. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective
legal representatives, successors and assigns.

 

5.4.          Invalidity. In the event
that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal,
or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions contained herein shall not be in any way impaired thereby, it being intended that all
of the rights and privileges of the parties hereto shall be enforceable to the fullest extent permitted by law.

 

5.5.          Counterparts/Execution.
This Agreement may be executed in any number of counterparts and by different signatories hereto on separate counterparts, each
of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument.
This Agreement may be executed by facsimile or email PDF transmission and delivered by facsimile or email PDF transmission.

 

5.6.          Agreement.
Each of the undersigned states that he or it has read the foregoing Agreement and understands and agrees to it.

 

5.7.          Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed
by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles
of conflicts of law thereof. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in New York County, New York, for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper.
Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party
irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby. If any party shall commence an action or
proceeding to enforce any provisions of the documents contemplated herein, then the prevailing party in such action or proceeding
shall be reimbursed by the party determined not to have prevailed for his or its attorney’s fees and other costs and expenses
incurred with the investigation, preparation and prosecution of such action or proceeding.

 

5.8.          Survival.
The representations, warranties, agreements and covenants contained herein shall survive the Closing.

 

5.9.          No
Waiver. The waiver by any party of the breach of any of the terms and conditions of, or any right under, this Agreement shall
not be deemed to constitute the waiver of any other breach of the same or any other term or condition or of any similar right.
No such waiver shall be binding or effective unless expressed in writing and signed by the party giving such waiver.

 

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5.10.        Construction.
The article and section headings contained in this Agreement are inserted for reference purposes only and shall not affect the
meaning or interpretation of this Agreement.

 

5.11.        Further
Assurances. Each party will execute and deliver such further agreements, documents and instruments and take such further action
as may be reasonably requested by any other party to carry out the provisions and purposes of this Agreement.

 

5.12.        Third Parties.
No third party shall have any rights under this Agreement.

 

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IN WITNESS WHEREOF,
the parties hereto have executed this Purchase, Amendment and Escrow Agreement on and as of the date first set forth above.

 

 

	BARRY HONIG	NEIL NEUMAN
	“Purchaser”	“Seller”
	 	 
	/s/ Barry Honig	/s/ Neil Neuman
	____________________________________	___________________________________
	 	 
	 	 
	 	 
	DOCUMENT SECURITY SYSTEMS, INC.	 
	“Company”	 
	 	 
	/s/ Patrick White	 
	____________________________________	 
	By: Patrick White	 
	Its: Chief Executive Officer	 
	 	 
	 	 
	ESCROW AGENT:	 
	 	 
	/s/ Grushko & Mittman, P.C.	 
	___________________________________	 
	GRUSHKO & MITTMAN, P.C.	 

 

 

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Exhibit A

 

Attach copy of Note

 

 

 

 

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Exhibit B

 

 

THE SECURITIES INTO WHICH THESE SECURITIES
ARE EXERCISABLE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED
BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM AND REASONABLLY SATISFACTORY TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER
SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.

 

ALLONGE 

To a Note Dated June 29, 2011

In the Original Principal Amount of $650,000.00
(the “Note”)

Made by Document Security Systems, Inc. a New
York corporation (“Borrower”)

and originally payable to Neil Neuman as “Lender”
(“Original Holder”)

 

 

This Allonge to the Note is dated and
entered into this 29th day of February, 2012.

WHEREAS, on February 29, 2012, the Original
Holder sold the Note to Barry Honig (“Holder”) and the Borrower agreed to amend certain terms of the Note modified;
and

NOW, THEREFORE, for good and valuable
consideration (including the Prepayment) and intending to be legally bound hereby, the Borrower agrees as follows:

1.          Section 2(b) of the Note, including Schedule A, is deleted and replaced with the following:

“This principal owed under this Note and all
interest accruing thereon, shall be due in full on July 1, 2013 (the “Maturity Date”), if not sooner paid or
modified as permitted herein.”

2.          The
following Section 11 is added to the Note:

“11.1
Conversion Rights. The Holder shall have the right to convert the principal and any interest due under this Note into Shares
of the Borrower’s Common Stock, $0.02 par value per share (“Common Stock”) as set forth below. 

11.2 Conversion into
the Borrower’s Common Stock.

 

(a)            The Holder shall have
the right from and after the date of the issuance of this Note and then at any time until this Note is fully paid, to convert any
outstanding and unpaid principal portion of this Note, and accrued but unpaid interest, at the election of the Holder (the date
of giving of such notice of conversion being a “Conversion Date”) into fully paid and non-assessable shares
of Common Stock as such stock exists on the date of issuance of this Note, or any shares of capital stock of Borrower into which
such Common Stock shall hereafter be changed or reclassified, at the conversion price as defined in Section 11.2(b) hereof,
determined as provided herein. Upon delivery to the Borrower of a completed Notice of Conversion, a form of which is annexed hereto
as Exhibit C, Borrower shall issue and deliver to the Holder within three (3) business days after the Conversion Date (such
third day being the “Delivery Date”) that number of shares of Common Stock for the portion of the Note converted
in accordance with the foregoing. The Holder will not be required to surrender the Note to the Borrower until the Note has been
fully converted or satisfied. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined
by dividing that portion of the principal of the Note and interest, if any, to be converted, by the Conversion Price.

 

    	13

    	 

    
 

(b)            Subject
to adjustment as provided in Section 11.2(c) hereof, the conversion price (“Conversion Price”) per share
shall be $3.30.

 

(c)            The Conversion Price and number and
kind of shares or other securities to be issued upon conversion determined pursuant to Section 11.2(a), shall be subject
to adjustment from time to time upon the happening of certain events while this conversion right remains outstanding, as follows:

 

A.            Merger,
Sale of Assets, etc. If (A) the Borrower effects any merger or consolidation of the Borrower with or into another entity,
(B) the Borrower effects any sale of all or substantially all of its assets in one or a series of related transactions, (C) any
tender offer or exchange offer (whether by the Borrower or another entity) is completed pursuant to which holders of Common Stock
are permitted to tender or exchange their shares for other securities, cash or property, (D) the Borrower consummates a stock
purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off
or scheme of arrangement) with one or more persons or entities whereby such other persons or entities acquire more than the 50%
of the outstanding shares of Common Stock (not including any shares of Common Stock held by such other persons or entities making
or party to, or associated or affiliated with the other persons or entities making or party to, such stock purchase agreement
or other business combination), (E) any “person” or “group” (as these terms are used for purposes of Sections
13(d) and 14(d) of the 1934 Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934
Act), directly or indirectly, of 50% of the aggregate Common Stock of the Borrower), or (F) the Borrower effects any reclassification
of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged
for other securities, cash or property (other than a reverse merger) (in any such case, a “Fundamental Transaction”),
this Note, as to the unpaid principal portion thereof and accrued interest thereon, if any, shall thereafter be deemed to evidence
the right to convert into such number and kind of shares or other securities and property as would have been issuable or distributable
on account of such Fundamental Transaction, upon or with respect to the securities subject to the conversion right immediately
prior to such Fundamental Transaction. The foregoing provision shall similarly apply to successive Fundamental Transactions of
a similar nature by any such successor or purchaser. Without limiting the generality of the foregoing, the anti-dilution provisions
of this Section shall apply to such securities of such successor or purchaser after any such Fundamental Transaction.

 

B.            Reclassification,
etc. If the Borrower at any time shall, by reclassification or otherwise, change the Common Stock into the same or a different
number of securities of any class or classes that may be issued or outstanding, this Note, as to the unpaid principal portion
thereof and accrued interest thereon, shall thereafter be deemed to evidence the right to purchase an adjusted number of such
securities and kind of securities as would have been issuable as the result of such change with respect to the Common Stock immediately
prior to such reclassification or other change.

 

C.            Stock Splits, Combinations
and Dividends. If the shares of Common Stock are subdivided or combined into a greater or smaller number of shares of Common
Stock, or if a dividend is paid on the Common Stock in shares of Common Stock, the Conversion Price shall be proportionately reduced
in case of subdivision of shares or stock dividend or proportionately increased in the case of combination of shares, in each
such case by the ratio which the total number of shares of Common Stock outstanding immediately after such event bears to the
total number of shares of Common Stock outstanding immediately prior to such event.

 

    	14

    	 

    
 

(d)            Whenever
the Conversion Price is adjusted pursuant to Section 11.2(c) above, the Borrower shall promptly, but not later than the
second (2nd) business day after the effectiveness of the adjustment, provide notice to the Holder setting forth the
Conversion Price after such adjustment and setting forth a statement of the facts requiring such adjustment. Failure to provide
the foregoing notice is an Event of Default under this Note.

 

(e)            During the period
the conversion right exists, Borrower will reserve from its authorized and unissued Common Stock not less than an amount of Common
Stock equal to 150% of the amount of shares of Common Stock issuable upon the full conversion of this Note. Borrower represents
that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. Borrower agrees that its issuance
of this Note shall constitute full authority to its officers, agents, and transfer agents who are charged with the duty of executing
and issuing stock certificates to execute and issue the necessary certificates for shares of Common Stock upon the conversion of
this Note.

 

11.3        Method of Conversion.
This Note may be converted by the Holder in whole or in part as described in Section 11.2(a) hereof. Upon partial conversion
of this Note, a new Note containing the same date and provisions of this Note shall, at the request of the Holder, be issued by
the Borrower to the Holder for the principal balance of this Note and interest which shall not have been converted or paid, upon
surrender of the existing Note.

 

11.4        Maximum Conversion.
The Holder shall not be entitled to convert on a Conversion Date that amount of the Note in connection with that number of shares
of Common Stock which would be in excess of the sum of (i) the number of shares of Common Stock beneficially owned by the Holder
and its affiliates on a Conversion Date, (ii) any Common Stock issuable in connection with the unconverted portion of the Note,
and (iii) the number of shares of Common Stock issuable upon the conversion of the Note with respect to which the determination
of this provision is being made on a Conversion Date, which would result in beneficial ownership by the Holder and its affiliates
of more than 4.99% of the outstanding shares of Common Stock of the Borrower on such Conversion Date. For the purposes of the provision
to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder. Subject to the foregoing, the Holder shall not be limited to
aggregate conversions of 4.99%. The Holder shall have the authority to determine whether the restriction contained in this Section
11.4 will limit any conversion hereunder and the extent such limitation applies and to which convertible or exercisable instrument
or part thereof such limitation applies. The Holder may waive the conversion limitation described in this Section 11.4, in whole
or in part, upon and effective after 61 days prior written notice to the Borrower to increase such percentage to up to 9.99%.

 

11.5        Legal
Opinion. Upon the conversion of a Note or part thereof, the Borrower shall, at its own cost and expense, take all necessary
action, including obtaining and delivering an opinion of counsel, to assure that the Borrower’s transfer agent shall issue
stock certificates in the name of a Holder (or its permitted nominee) or such other persons as designated by Holder and in such
denominations to be specified at conversion representing the number of shares of Common Stock issuable upon such conversion. The
Borrower warrants that no instructions other than these instructions have been or will be given to the transfer agent of the Borrower’s
Common Stock and that the certificates representing such shares shall contain no legend. If and when a Holder sells the Conversion
Shares, assuming (i) a registration statement including such Conversion Shares for registration has been filed with the Commission,
is effective and the prospectus, as supplemented or amended, contained therein is current and (ii) Holder or its agent confirms
in writing to the transfer agent that Holder has complied with the prospectus delivery requirements, the Borrower will reissue
the Conversion Shares without restrictive legend and the Conversion Shares will be free-trading, and freely transferable. In the
event that the Conversion Shares are sold in a manner that complies with an exemption from registration, the Borrower will promptly
instruct its counsel to issue to the transfer agent an opinion permitting removal of the legend indefinitely, if pursuant to Rule
144(b)(1)(i) of the 1933 Act, provided that Holder delivers all reasonably requested representations in support of such opinion.

 

    	15

    	 

    
 

11.6        Delivery Delay.
The Borrower understands that a delay in the delivery of the Conversion Shares in the form required pursuant to Section 11 hereof
later than the Delivery Date could result in economic loss to the Holders. As compensation to Holders for such loss, the Borrower
agrees to pay (as liquidated damages and not as a penalty) to each applicable Holder for late issuance of Conversion Shares in
the form required pursuant to Section 11 hereof upon Conversion of the Note, the amount of $100 per business day after the Delivery
Date for each $10,000 of Note principal amount and interest (and proportionately for other amounts) being converted of the corresponding
Conversion Shares which are not timely delivered. The Borrower shall pay any payments incurred under this Section upon demand.
Furthermore, in addition to any other remedies which may be available to the Holders, in the event that the Borrower fails for
any reason to effect delivery of the Conversion Shares within seven (7) business days after the Delivery Date, the relevant Holder
will be entitled to revoke all or part of the relevant Notice of Conversion by delivery of a notice to such effect to the Borrower
whereupon the Borrower and Holder shall each be restored to their respective positions immediately prior to the delivery of such
notice, except that the damages payable in connection with the Borrower’s default shall be payable through the date notice
of revocation or rescission is given to the Borrower.

 

11.7        Injunction
Posting of Bond. In the event a Holder shall elect to convert a Note or part thereof, the Borrower may not refuse conversion
or exercise based on any claim that Holder or anyone associated or affiliated with Holder has been engaged in any violation of
law, or for any other reason, unless, a final non-appealable injunction from a court made on notice to Holder, restraining and
or enjoining conversion of all or part of such Note shall have been sought and obtained by the Borrower or the Borrower
has posted a surety bond for the benefit of Holder in the amount of 120% of the greater of the outstanding principal and accrued
but unpaid interest of the Note, or aggregate purchase price of the Conversion Shares, which bond shall remain in effect until
the completion of arbitration/litigation of the dispute and the proceeds of which shall be payable to Holder to the extent the
judgment or decision is in Holder’s favor.

 

11.8        Buy-In.
In addition to any other rights available to Holders, if the Borrower fails to deliver to a Holder Conversion Shares by the Delivery
Date and if after the Delivery Date Holder or a broker on Holder’s behalf purchases (in an open market transaction or otherwise)
shares of Common Stock to deliver in satisfaction of a sale by Holder of the Common Stock which Holder was entitled to receive
upon such conversion (a “Buy-In”), then the Borrower shall pay to Holder (in addition to any remedies available
to or elected by the Holder) the amount by which (A) Holder's total purchase price (including brokerage commissions, if any) for
the shares of Common Stock so purchased exceeds (B) the aggregate principal and/or interest amount of the Note for which such
conversion request was not timely honored together with interest thereon at a rate of 15% per annum, accruing until such
amount and any accrued interest thereon is paid in full (which amount shall be paid as liquidated damages and not as a penalty).
For example, if a Holder purchases shares of Common Stock having a total purchase price of $11,000
to cover a Buy-In with respect to an attempted conversion of $10,000 of Note principal and/or interest, the Borrower shall be
required to pay Holder $1,000 plus interest. Holder shall provide the Borrower written notice and evidence indicating the amounts
payable to Holder in respect of the Buy-In.

 

    	16

    	 

    
 

11.9        Delivery
of Unlegended Shares. Within three (3) business days (such third business day being the “Unlegended Shares Delivery
Date”) after the business day on which the Borrower has received (i) a notice that Conversion Shares, or any other Common
Stock held by Holder has been sold pursuant to a registration statement or Rule 144 under the 1933 Act, (ii) a representation that
the prospectus delivery requirements, or the requirements of Rule 144, as applicable and if required, have been satisfied, (iii)
the original share certificates representing the shares of Common Stock that have been sold, and (iv) in the case of sales under
Rule 144, customary representation letters of the Holder and, if required, Holder’s broker regarding compliance with the
requirements of Rule 144, the Borrower at its expense, (y) shall deliver, and shall cause legal counsel selected by the Borrower
to deliver to its transfer agent (with copies to Holder) an appropriate instruction and opinion of such counsel, directing the
delivery of shares of Common Stock without any legends including the legend set forth in this Section 11 (the “Unlegended
Shares”); and (z) cause the transmission of the certificates representing the Unlegended Shares together with a legended
certificate representing the balance of the submitted Common Stock certificate, if any, to the Holder at the address specified
in the notice of sale, via express courier, by electronic transfer or otherwise on or before the Unlegended Shares Delivery Date.
In lieu of delivering physical certificates representing the Unlegended Shares, upon request of Holder, so long as the certificates
therefor do not bear a legend and the Holder is not obligated to return such certificate for the placement of a legend thereon,
the Borrower shall cause its transfer agent to electronically transmit the Unlegended Shares by crediting the account of Holder’s
prime broker with the Depository Trust Borrower through its Deposit Withdrawal Agent Commission system, if such transfer agent
participates in such DWAC system. Such delivery must be made on or before the Unlegended Shares Delivery Date. The Borrower understands
that a delay in the delivery of the Unlegended Shares pursuant to Section 11 hereof later than the Unlegended Shares Delivery Date
could result in economic loss to a Holder. As compensation to a Holder for such loss, the Borrower agrees to pay late payment fees
(as liquidated damages and not as a penalty) to the Holder for late delivery of Unlegended Shares in the amount of $100 per business
day after the Delivery Date for each $10,000 of purchase price of the Unlegended Shares subject to the delivery default. If during
any 360 day period, the Borrower fails to deliver Unlegended Shares as required by this Section 11 for an aggregate of thirty days,
then each Holder or assignee holding Securities subject to such default may, at its option, require the Borrower to redeem all
or any portion of the Shares subject to such default at a price per share equal to the greater of (i) 120%, or (ii) a fraction
in which the numerator is the highest closing price of the Common Stock during the afore described thirty day period and the denominator
of which is the lowest conversion price during such thirty day period, multiplied by the price paid by Holder for such Common Stock
(“Unlegended Redemption Amount”). The Borrower shall pay any payments incurred under this Section in immediately
available funds upon demand. In the event a Holder shall request delivery of Unlegended Shares as described in Section 11 and the
Borrower is required to deliver such Unlegended Shares pursuant to Section 11, the Borrower may not refuse to deliver Unlegended
Shares based on any claim that such Holder or anyone associated or affiliated with such Holder has been engaged in any violation
of law, or for any other reason, unless, an injunction or temporary restraining order from a court, on notice, restraining and
or enjoining delivery of such Unlegended Shares shall have been sought and obtained by the Borrower and the Borrower has
posted a surety bond for the benefit of such Holder in the amount of 120% of the amount of the aggregate purchase price of the
Common Stock which are subject to the injunction or temporary restraining order, which bond shall remain in effect until the completion
of arbitration/litigation of the dispute and the proceeds of which shall be payable to such Holder to the extent Holder obtains
judgment in Holder’s favor. In addition to any other rights available to Holder, if the Borrower
fails to deliver to a Holder Unlegended Shares as required pursuant to this Agreement and after the Unlegended Shares Delivery
Date, the Holder or a broker on the Holder’s behalf, purchases (in an open market transaction or otherwise) shares of common
stock to deliver in satisfaction of a sale by such Holder of the shares of Common Stock which the Holder was entitled to receive
from the Borrower (a “Buy-In”), then the Borrower shall pay in cash to the Holder (in addition to any remedies
available to or elected by the Holder) the amount by which (A) the Holder's total purchase price (including brokerage commissions,
if any) for the shares of common stock so purchased exceeds (B) the aggregate purchase price of the shares of Common Stock delivered
to the Borrower for reissuance as Unlegended Shares together with interest thereon at a rate of 15% per annum accruing until
such amount and any accrued interest thereon is paid in full (which amount shall be paid as liquidated damages and not as a penalty).
For example, if a Holder purchases shares of Common Stock having a total purchase price of $11,000 to
cover a Buy-In with respect to $10,000 of purchase price of shares of Common Stock delivered to the Borrower for reissuance as
Unlegended Shares, the Borrower shall be required to pay the Holder $1,000, plus interest. The Holder shall provide the Borrower
written notice indicating the amounts payable to the Holder in respect of the Buy-In.”

 

    	17

    	 

    
 

3.          Section 3 of the Note is deleted and replaced with the following:

“Application of Payments

All Payments by the Maker hereunder shall be applied
first to outstanding late and other charges then to accrued interest, then to Principal currently due.”

4.          For the purposes of Rule 144 promulgated
under the Securities Exchange Act of 1934, as amended, the Holder’s holding period of the Note commenced on June 29, 2011.

5.          Except
as expressly set forth above, all of the terms and conditions of the Note shall continue in full force and effect after the execution
of this Allonge and shall not be in any way changed, modified or superseded by the terms set forth herein.

 

[Rest of this page left intentionally
blank]

    	18

    	 

    
 

IN WITNESS WHEREOF,
the Company has executed this Allonge as of the date first written above.

	 	
        DOCUMENT SECURITY SYSTEMS, INC.

        “Borrower”

         

        /s/ Patrick White

        _____________________________________

        By: Patrick White

        Its: Chief Executive Officer

         

         

	 	
        BARRY HONIG

        “Holder”

         

        /s/ Barry Honig

        _____________________________________

 

    	19

    	 

    
 

EXHIBIT C - NOTICE OF CONVERSION

 

(To be executed by the Registered Holder in
order to convert the Note)

 

 

The
undersigned hereby elects to convert $_________ of the principal and $_________ of the interest due on the Note issued by Document
Security Systems, Inc. on June 29, 2011, as amended by the Allong Dated February __, 2012 into Shares
of Common Stock of Document Security Systems, Inc. (the “Borrower”) according
to the conditions set forth in such Note, as of the date written below.

 

 

 

Date of Conversion:____________________________________________________________________

 

 

Conversion Price:______________________________________________________________________

 

 

Number of Shares of Common Stock Beneficially Owned on the
Conversion Date: Less than 5% of the outstanding Common Stock of Document
Security Systems, Inc.

 

 

Shares To Be Delivered:_________________________________________________________________

 

 

Signature:____________________________________________________________________________

 

 

Print Name:__________________________________________________________________________

 

 

Address:_____________________________________________________________________________

 

______________________________________________________________________________

 

    	20

    	 

    
 

Schedule 3.1(A)

 

Insert seller wire instructions

 

 

 

 

    	21CHANGE IN CONTROL AGREEMENT

 

THIS CHANGE IN CONTROL
AGREEMENT (this “Agreement”) is made and entered into this 31st day of October, 2011, by and between Keryx Biopharmaceuticals,
Inc., a Delaware corporation (the “Company”), and James F. Oliviero (the “Executive”), to
be effective as of the Effective Date, as defined in Section 2.

 

BACKGROUND

 

The Board of Directors
of the Company (the “Board”) has determined that it is in the best interests of the Company and its stockholders
to assure that the Company will have the continued dedication of the Executive, notwithstanding the possibility, threat or occurrence
of a Change in Control (as defined below) of the Company. The Board believes it is imperative to diminish the inevitable distraction
of the Executive by virtue of the personal uncertainties and risks created by a pending or threatened Change in Control and to
encourage the Executive’s full attention and dedication to the Company currently and in the event of any threatened or pending
Change in Control, and to provide the Executive with compensation upon a Change in Control which ensure that the compensation expectations
of the Executive will be satisfied and which are competitive with those of other corporations. Therefore, in order to accomplish
these objectives, the Board has caused the Company to enter into this Agreement.

 

NOW, THEREFORE,
IT IS HEREBY AGREED AS FOLLOWS:

 

1. Defined Terms.
For purposes of this Agreement, the following terms shall have the meanings indicated below:

 

1.1 “Annual
Base Salary” means the Executive’s annual base salary at the rate in effect immediately prior to a Qualifying Termination
or, if higher, at the rate in effect immediately prior to a Change in Control.

 

1.2 “Board”
means the Board of Directors of the Company.

 

1.3 “Cause”
means (a) a material breach of the terms of the Executive’s Proprietary Information and Inventions Agreement or any
provisions relating to non-competition or non-solicitation in any other agreement; (b) a material breach by the Executive
of any other provision of his employment arrangement, which is not cured by the Executive within fifteen (15) days after receiving
written notice thereof from the Company containing a description of the breach or breaches alleged to have occurred; (c) the
habitual neglect or gross failure by the Executive to adequately perform the duties of his position; (d) any act of the Executive
involving moral turpitude; (e) the Executive’s commission or conviction of, or pleading guilty or no lo contendere to, a
felony or criminal action involving dishonesty or other moral turpitude or that is connected to the Executive’s employment
with the Company or his place of employment; (f) the Executive’s use of illegal drugs, abuse of
other controlled substances, working under the influence of alcohol or other controlled substances, or knowing neglect of reasonably
assigned duties; or (g) the Executive’s repetitive refusal to comply with or the Executive’s violation
of lawful instructions of the Chief Executive Officer or the Board of Directors, unless cured within fifteen (15) days after receiving
written notice thereof from the Company.

 

1.4 “COBRA
Payment” shall have the meaning provided in Section 3 hereof.

 

1.5 “Code”
means the Internal Revenue Code of 1986, as amended from time to time.

 

1.6 “Change in Control”
means and includes the occurrence of any one of the following events:

 

    	 

    	 

    

 

(i) the
acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”)
of beneficial ownership of any capital stock of the Company if, after such acquisition, such Person beneficially owns (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) 30% or more of either (x) the then-outstanding shares of common
stock of the Company (the “Outstanding Company Common Stock”) or (y) the combined voting power of the then-outstanding
securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”);
provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change
in Control: (A) any acquisition directly from the Company (excluding an acquisition pursuant to the exercise, conversion or
exchange of any security exercisable for, convertible into or exchangeable for common stock or voting securities of the Company,
unless the Person exercising, converting or exchanging such security acquired such security directly from the Company or an underwriter
or agent of the Company), (B) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the
Company or any corporation controlled by the Company, or (C) any acquisition by any corporation pursuant to a Business Combination
(as defined in subsection (iii) below) which complies with clauses (x) and (y) of subsection (iii) of this definition; or

 

(ii) such
time as the Continuing Directors (as defined below) do not constitute a majority of the Board (or, if applicable, the Board of
Directors of a successor corporation to the Company), where the term “Continuing Director” means at any date a member
of the Board (x) who was a member of the Board on the date of this Agreement or (y) who was nominated or elected subsequent
to such date by at least a majority of the directors who were Continuing Directors at the time of such nomination or election
or whose election to the Board was recommended or endorsed by at least a majority of the directors who were Continuing Directors
at the time of such nomination or election; provided, however, that there shall be excluded from this clause (y) any individual
whose initial assumption of office occurred as a result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies or consents, by or on behalf of a person other than
the Board; or

 

(iii)
the consummation of a merger, consolidation, reorganization, recapitalization or share exchange involving the Company or a sale
or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), unless,
immediately following such Business Combination, each of the following two conditions is satisfied: (x) all or substantially
all of the individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50%
of the then-outstanding shares of common stock and the combined voting power of the then-outstanding securities entitled to vote
generally in the election of directors, respectively, of the resulting or acquiring corporation in such Business Combination (which
shall include, without limitation, a corporation which as a result of such transaction owns the Company or substantially all of
the Company’s assets either directly or through one or more subsidiaries) (such resulting or acquiring corporation is referred
to herein as the “Acquiring Corporation”) in substantially the same proportions as their ownership of the Outstanding
Company Common Stock and Outstanding Company Voting Securities, respectively, immediately prior to such Business Combination and
(y) no Person (excluding the Acquiring Corporation or any employee benefit plan (or related trust) maintained or sponsored
by the Company or by the Acquiring Corporation) beneficially owns, directly or indirectly, 30% or more of the then-outstanding
shares of common stock of the Acquiring Corporation, or of the combined voting power of the then-outstanding securities of such
corporation entitled to vote generally in the election of directors (except to the extent that such ownership existed prior to
the Business Combination).

 

    	 

    	 

    

 

1.7 “Date
of Termination” shall have the meaning provided in Section 6 hereof.

 

1.8 “Disability”
means the Executive’s inability to perform the essential functions of his job for more than twelve
(12) workweeks in any one (1) year period, with or without reasonable accommodation).

 

1.9 “Effective
Date” shall have the meaning provided in Section 2 hereof.

 

1.10 “Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time.

 

1.11 “Good
Reason” means any of the following, without the Executive’s written consent: (i) a material diminution in the Executive’s
Annual Base Salary in effect as of the date of the Change in Control; or (ii) a material diminution in the Executive’s authority,
duties, or responsibilities as of the date of the Change in Control; provided, however, that a termination by the
Executive shall not constitute termination for Good Reason unless the Executive shall first have delivered to the Company written
notice setting forth with specificity the occurrence deemed to give rise to a right to terminate for Good Reason (which notice
must be given no later than sixty (60) days after the initial occurrence of such event). Good Reason shall not include the Executive’s
death or Disability. The Executive’s employment must be terminated by the Executive for Good Reason within ninety (90) days
after the occurrence of an event of Good Reason. A resignation by the Executive for Good Reason effectively constitutes an involuntary
separation from service within the meaning of Section 409A of the Code and Treas. Reg. Section 1.409A-1(n)(2).

 

1.12 “Qualifying
Termination” means the Executive’s termination of employment with the Company or the Successor Entity either by
the Company or the Successor Entity without Cause or by the Executive for Good Reason, in each case, on, or within twelve (12) months
after, the effective date of a Change in Control. For the avoidance of doubt, in no event shall the Executive be deemed to have
experienced a Qualifying Termination as a result of the Executive’s death or Disability.

 

1.13 “Severance
Payment” shall have the meaning provided in Section 3 hereof.

 

1.14 “Successor
Entity” means any entity that acquires or otherwise succeeds to all or substantially all of the business or assets of
the Company following a Change in Control.

 

2. Effective
Date of the Agreement. This Agreement shall become effective upon the consummation of a Change in Control (the “Effective
Date”) and shall be of no force or effect prior to a Change in Control. In the event that a Change in Control does not
occur on or prior to the second anniversary of the date of this Agreement, this Agreement shall thereupon automatically terminate
and have no force or effect.

 

3. Severance
Benefits. In the event of the Executive’s Qualifying Termination: (i) the Executive shall receive a cash payment equal
to the sum of (A) the Executive’s Annual Base Salary, and (B) the annual bonus earned
by the Executive for the fiscal year immediately prior to the year in which the Date of Termination occurs, if any, payable
in a lump sum within sixty (60) days following the Date of Termination (the “Severance Payment”); and (ii) the
Executive shall receive a cash payment equal to the total monthly premium payment (both the Company’s portion and the Executive’s
portion of such premium) under the Company’s group healthcare plan multiplied by twelve (12), payable in a lump sum within
sixty (60) days following the Date of Termination (the “COBRA Payment”). Notwithstanding anything herein to
the contrary, the Executive shall not be eligible to receive the Severance Payment or the COBRA Payment unless he first executes
a general release of claims and covenant not to sue in a form satisfactory to the Company and does not revoke such release of claims
and covenant not to sue.

 

    	 

    	 

    

 

4. Non-Qualifying
Termination. If the Executive’s status as an employee is terminated for any reason other than due to a Qualifying
Termination, the Executive shall not be entitled to receive the Severance Payment or the COBRA Payment, and the neither the Company
nor any Successor Entity shall have any obligation to the Executive under this Agreement.

 

5. Section 409A.

 

5.1 General.
It is intended that the payments and benefits provided under this Agreement shall either be exempt from the application of, or
comply with, the requirements of Section 409A of the Code. This Agreement shall be construed in a manner that effects such intent.
Nevertheless, the tax treatment of the benefits provided under this Agreement is not warranted or guaranteed. Neither the Company
nor its directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts
owed by the Executive as a result of the application of Section 409A of the Code.

 

5.2 Definitional
Restrictions. Notwithstanding anything in this Agreement to the contrary, to the extent that any amount or benefit that would
constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code (“Non-Exempt Deferred
Compensation”) would otherwise be payable or distributable under this Agreement by reason of the occurrence of the Executive’s
separation from service, such Non-Exempt Deferred Compensation will not be payable or distributable to the Executive by reason
of such circumstance unless the circumstances giving rise to such separation from service meet any description or definition of
“separation from service” in Section 409A of the Code and applicable regulations (without giving effect to any elective
provisions that may be available under such definition). This provision does not prohibit the vesting of any amount upon a separation
from service, however defined. If this provision prevents the payment or distribution of any Non-Exempt Deferred Compensation,
such payment or distribution shall be made on the date, if any, on which an event occurs that constitutes a Section 409A-compliant
“separation from service,” or such later date as may be required by subsection 5.3 below.

 

5.3 Six-Month
Delay in Certain Circumstances. Notwithstanding anything in this Agreement to the contrary, if any amount or benefit that would
constitute Non-Exempt Deferred Compensation would otherwise be payable or distributable under this Agreement by reason of the Executive’s
separation from service during a period in which the Executive is a Specified Employee (as defined below), then, subject to any
permissible acceleration of payment by the Compensation Committee of the Board under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic
relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment taxes): (i) the amount of such Non-Exempt
Deferred Compensation that would otherwise be payable during the six-month period immediately following the Executive’s separation
from service will be accumulated through and paid or provided on the first day of the seventh month following the Executive’s
separation from service (or, if the Executive dies during such period, within thirty (30) days after the Executive’s death)
(in either case, the “Required Delay Period”); and (ii) the normal payment or distribution schedule for any
remaining payments or distributions will resume at the end of the Required Delay Period. For purposes of this Agreement, the term
“Specified Employee” has the meaning given such term in Code Section 409A and the final regulations thereunder.

 

5.4 Timing of
Release. Whenever in this Agreement a payment or benefit is conditioned on the Executive’s execution of a release of
claims and covenant not to sue, the Company shall provide such release to the Executive promptly following the Date of Termination,
and such release and covenant not to sue must be executed and all revocation periods shall have expired in accordance with terms
set forth in the release, but in no case later than sixty (60) days after the Date of Termination; failing which such payment or
benefit shall be forfeited. If such payment or benefit constitutes Non-Exempt Deferred Compensation, then, subject to subsection
5.3 above, such payment or benefit (including any installment payments) that would have otherwise been payable during such 60-day
period shall be accumulated and paid on the 60th day after the Date of Termination provided such release shall have been executed
and such revocation periods shall have expired. If such payment or benefit is exempt from Section 409A of the Code, the Company
may elect to make or commence payment at any time during such 60-day period.

 

    	 

    	 

    

 

6. Termination
Procedures. Any purported termination of the Executive’s employment shall be communicated by written Notice of Termination
from the terminating party to the other party in accordance with Section 9 hereof. For purposes of this Section 6, a
“Notice of Termination” shall mean (a) in the case of termination by the Company with Cause or by the Executive
with Good Reason, a notice indicating (i) in reasonable detail the facts and circumstances giving rise to the determination
that Cause or Good Reason exists, as applicable, and (ii) the effective date of the termination of employment (absent cure,
as provided below and, in the case of termination by the Executive with Good Reason, in compliance with the time period set forth
in Section 1.11 herein), and (b) in the case of all other terminations of employment, a notice indicating the effective date
of the termination of employment, in each case, subject to any other contractual obligations that may exist between the Company
and the Executive (the date specified in any such Notice of Termination, the “Date of Termination”). Notwithstanding
the foregoing, in the case of a termination by the Executive with Good Reason, the Company shall have an opportunity to cure the
circumstances giving rise to Good Reason within thirty (30) days after receipt of such Notice of Termination. If the Company
fails to cure such circumstances, the Date of Termination shall be as specified in the Notice of Termination, notwithstanding such
thirty (30) day cure period.

 

7. No Mitigation.
The Executive shall not be required to seek other employment or to attempt in any way to reduce or mitigate any benefits payable
under this Agreement and the amount of any such benefits shall not be reduced by any other compensation paid or provided to the
Executive following the Executive’s termination of service.

 

8. Successors.

 

8.1 Company Successors.
This Agreement shall inure to the benefit of and shall be binding upon the Company, the Successor Entity, and their successors
and assigns. Any successor (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise)
to all or substantially all of the Company’s business and/or assets shall assume and agree to perform the obligations of
the Company under this Agreement.

 

8.2 Executive
Successors. This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees, legatees or other beneficiaries. If the Executive shall die
while any amount remains payable to the Executive hereunder, all such amounts shall be paid in accordance with the terms of this
Agreement to the executors, personal representatives or administrators of the Executive’s estate.

 

9. Notices.
All communications relating to matters arising under this Agreement shall be in writing and shall be deemed to have been duly given
when hand delivered, faxed, emailed or mailed by reputable overnight carrier or United States certified mail, return receipt requested,
addressed, if to the Executive, to the address on file with the Company and, if to the Company, to the address set forth below,
or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice
of change of address shall be effective only upon actual receipt:

 

Keryx Biopharmaceuticals,
Inc.

750 Lexington
Avenue, 20th Floor

New York, New
York 10022

Attention: Board
of Directors

 

    	 

    	 

    

 

10. Code Section 280G.

 

10.1 Notwithstanding
anything in this Agreement to the contrary, in the event it shall be determined that any benefit, payment or distribution by the
Company to or for the benefit of the Executive (whether payable or distributable pursuant to the terms of this Agreement or otherwise)
(such benefits, payments or distributions are hereinafter referred to as “Payments”) would, if paid, be subject
to the excise tax (the “Excise Tax”) imposed by Section 4999 of the Code, then the aggregate present value of
the Payments shall be reduced (but not below zero) to an amount expressed in present value that maximizes the aggregate present
value of the Payments without causing the Payments or any part thereof to be subject to the Excise Tax and therefore nondeductible
by the Company because of Section 280G of the Code (the “Reduced Amount”). The reduction of the Payments due
hereunder, if applicable, shall be made by first reducing cash Payments and then, to the extent necessary, reducing those Payments
having the next highest ratio of Parachute Value to actual present value of such Payments as of the date of the change of control,
as determined by the Determination Firm (as defined in subsection (b) below). For purposes of this Section 10, present value shall
be determined in accordance with Section 280G(d)(4) of the Code. For purposes of this Section 10, the “Parachute Value”
of a Payment means the present value as of the date of the change of control of the portion of such Payment that constitutes a
“parachute payment” under Section 280G(b)(2) of the Code, as determined by the Determination Firm for purposes of determining
whether and to what extent the Excise Tax will apply to such Payment.

 

10.2 All determinations
required to be made under this Section 10, including whether an Excise Tax would otherwise be imposed, whether the Payments shall
be reduced, the amount of the Reduced Amount, and the assumptions to be utilized in arriving at such determinations, shall be made
by an independent, nationally recognized accounting firm or compensation consulting firm mutually acceptable to the Company and
the Executive (the “Determination Firm”) which shall provide detailed supporting calculations both to the Company
and the Executive within fifteen (15) business days of the receipt of notice from the Executive that a Payment is due to be made,
or such earlier time as is requested by the Company. All fees and expenses of the Determination Firm shall be borne solely by the
Company. Any determination by the Determination Firm shall be binding upon the Company and the Executive. As a result of the uncertainty
in the application of Section 4999 of the Code at the time of the initial determination by the Determination Firm hereunder, it
is possible that Payments hereunder will have been unnecessarily limited by this Section 10 (“Underpayment”),
consistent with the calculations required to be made hereunder. The Determination Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive together
with interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code, but no later than March 15 of the
year after the year in which the Underpayment is determined to exist, which is when the legally binding right to such Underpayment
arises.

 

10.3 In the event
that the provisions of Code Section 280G and 4999 or any successor provisions are repealed without succession, this Section 10
shall be of no further force or effect.

 

11. Miscellaneous.

 

11.1 Termination
and Amendment of the Agreement. Except as provided below, during the twelve (12) month period following a Change in Control,
neither the Company nor any Successor Entity may terminate this Agreement, nor may the Company or any Successor Entity amend this
Agreement if any such amendment would have an adverse impact on the interests of the Executive under this Agreement, in either
case, without the express written consent of the Executive. At any time prior to a Change in Control, the Board may, in its sole
discretion, terminate or amend this Agreement by resolution. Following the Executive’s Qualifying Termination, no termination
or amendment of this Agreement shall adversely affect the rights of the Executive under the Agreement without Executive’s
written consent.

 

    	 

    	 

    

 

11.2 Withholding.
The Company shall have the authority and the right to deduct and withhold an amount sufficient to satisfy federal, state, local
and foreign taxes required by law to be withheld with respect to any benefits payable under this Agreement.

 

11.3 Benefits
not Assignable. Except as otherwise provided herein or by law, no right or interest of the Executive under this Agreement shall
be assignable or transferable, in whole or in part, either directly or by operation of law or otherwise, including without limitation
by execution, levy, garnishment, attachment, pledge or in any manner; no attempted assignment or transfer thereof shall be effective;
and no right or interest of the Executive under this Agreement shall be liable for, or subject to, any obligation or liability
of the Executive. When a payment is due under this Agreement to the Executive at a time when he is unable to care for his affairs,
payment may be made directly to his legal guardian or personal representative.

 

11.4 Applicable
Law. This Agreement shall be construed and interpreted in accordance with the laws of the State of New York without reference
to the conflict of laws provisions thereof, to the extent not preempted by federal law, which shall otherwise control.

 

11.5 Validity.
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

 

11.6 Captions.
The captions contained in this Agreement are for convenience only and shall have no bearing on the meaning, construction or interpretation
of this Agreement’s provisions.

 

11.7 Status Before
and After Effective Date. The Executive and the Company acknowledge that the employment of the Executive by the Company is
“at will” and the Executive’s employment and/or this Agreement may be terminated by either the Executive or the
Company at any time prior to a Change in Control, in which case the Executive shall have no further rights under this Agreement.
From and after the effective date of a Change in Control, this Agreement shall supersede any other agreement between the parties
with respect to the subject matter hereof.

 

IN WITNESS WHEREOF,
the Executive has hereunto set the Executive’s hand and, pursuant to the authorization from its Board of Directors, the Company
has caused these presents to be executed in its name on its behalf.

 

	 	/s/ Ron Bentsur	 
	 	 	 
	 	Keryx Biopharmaceuticals, Inc.	 
	 	By: Ron Bentsur	 
	 	Its: Chief Executive Officer	 
	 	 	 
	 	/s/ James F. Oliviero	 
	 	Executive	 

 

    	 

    	 

    

 

FIRST AMENDMENT TO

CHANGE IN CONTROL AGREEMENT

 

THE CHANGE IN CONTROL
AGREEMENT dated as of October 31, 2011, by and between Keryx Biopharmaceuticals, Inc., a Delaware corporation (the “Company”),
and James F. Oliviero (the “Executive”), is amended with effect this 3rd day of November, 2011, by
amending Section 1.11 to read as follows:

 

1.11 “Good
Reason” means any of the following, without the Executive’s written consent: (i) a material diminution in the Executive’s
Annual Base Salary in effect as of the date of the Change in Control; (ii) a material diminution in the Executive’s authority,
duties, or responsibilities as of the date of the Change in Control; or (iii) the relocation of Executive’s principal office
to a facility or location that is more than fifty (50) miles away from the location of the Executive’s primary place of business
as of the Effective Date; provided, however, that a termination by the Executive shall not constitute termination
for Good Reason unless the Executive shall first have delivered to the Company written notice setting forth with specificity the
occurrence deemed to give rise to a right to terminate for Good Reason (which notice must be given no later than sixty (60) days
after the initial occurrence of such event). Good Reason shall not include the Executive’s death or Disability. The Executive’s
employment must be terminated by the Executive for Good Reason within ninety (90) days after the occurrence of an event of Good
Reason. A resignation by the Executive for Good Reason effectively constitutes an involuntary separation from service within the
meaning of Section 409A of the Code and Treas. Reg. Section 1.409A-1(n)(2).

 

IN WITNESS WHEREOF,
the Executive has hereunto set the Executive’s hand and, pursuant to the authorization from its Board of Directors, the Company
has caused these presents to be executed in its name on its behalf.

 

	 	/s/ Ron Bentsur	 
	 	 	 
	 	Keryx Biopharmaceuticals, Inc.	 
	 	By: Ron Bentsur	 
	 	Its: Chief Executive Officer	 
	 	 	 
	 	/s/ James F. Oliviero	 
	 	Executive

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