Document:

Exhibit 10.1

 

AMENDED EMPLOYMENT AGREEMENT

 

THIS AMENDED EMPLOYMENT
AGREEMENT (the “Agreement”), made this 9th day of November, 2015 (the “Effective Date”), is
entered into by and between Document Security Systems, Inc. (the “Company”) and Jeffrey Ronaldi (the “Executive”).

 

1.Term of Employment.
The Company agrees to employ Executive, and Executive agrees to work for the Company, upon the terms set forth in this Agreement,
for the period commencing on November 9, 2015 (the “Commencement Date”) and ending on the one-month anniversary of
the Commencement Date (the “Term”). This Agreement shall terminate in accordance with the provisions of Section 4.

 

2.Title; Capacity.
The Company will employ Executive, and Executive agrees to work for the Company, as its Chief Executive Officer to perform the
duties and responsibilities inherent in such position and such other duties and responsibilities consistent with such position
(including travel, as required) as the Company’s Board of Directors (the “Board”) shall from time to time assign
to him. Executive shall report directly to the Board and shall be subject to the supervision of, and shall have such authority
as is delegated to him by, the Board, which authority shall be sufficient to perform his duties hereunder. Executive shall be a
full time employee and shall devote his full business time and best efforts in the performance of the foregoing, provided (i) that
he may accept board memberships or participate in charitable and similar organizations which are not in conflict with his primary
obligations to the Company, further provided that such activities shall be approved by the Board, which approval shall not be unreasonably
withheld; and (ii) he may perform related services as described in Section 6.6 below.

 

3.Compensation,
Equity and Benefits.

 

3.1Salary.
The Company shall pay Executive an annual base salary of $150,000 less applicable payroll withholdings, which shall be payable
in accordance with the Company’s customary payroll practices (the “Base Salary”). This amended Base Salary represents
a reduction from Executive’s previous annual base salary of $350,000.

 

3.2Bonus.
During the Term of this Agreement, the Executive shall be eligible to receive a performance bonus (less applicable withholdings)
as described below (the “Performance Bonus”). The Performance Bonus will consist of a percentage of either the Net
Litigation Proceeds (as defined in Section 3.3(b)) received by the Company from any one of its Pending Patent Cases (as defined
in Section 3.3(a)), or a percentage of the Net Sales Proceeds (as defined in Section 3.3(c)) received by the Company in connection
with the sale of any of its patent assets. To receive a Performance Bonus, the Executive must be employed with the Company when
either the Net Litigation Proceeds or Net Sales Proceeds are received by the Company and not be in breach of this Agreement. The
Performance Bonus shall be payable within 15 days of receipt by the Company of either Net Litigation Proceeds or Net Sales Proceeds.

 

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The Performance Bonus
payable to Executive will be calculated as follows:

 

		·	10% of the first $3,000,000 of Net Litigation Proceeds or Net Sales Proceeds received by the Company.

 

		·	15% of Net Litigation Proceeds or Net Sales Proceeds received in the amounts of $3,000,001 to $10,000,000.

 

		·	10% of Net Litigation Proceeds or Net Sales Proceeds exceeding $10,000,000, all on a cumulative
basis.

 

  

3.3Definitions.

 

(a) Pending Patent
Case(s). “Pending Patent Case(s)” shall mean all litigation and claims, counter-claims or cross-claims brought
by the Company (including its subsidiaries) pending at the time of the Effective Date of this Agreement, or brought during the
Term of this Agreement including, but not limited to, the following: DSS Technology Management, Inc. v. Apple, Inc.; DSS Technology
Management, Inc. v. TSMC and Samsung; DSS Technology Management, Inc. v. Intel, Inc., GameStop Corp., Conn’s Inc., Conn Appliances,
Inc., Wal-Mart Stores, Inc., and AT&T Inc.; DSS Technology Management, Inc. v. SK Hynix et al.; DSS Technology Management,
Inc. v. Samsung et al.; and DSS Technology Management, Inc. v. Qualcomm Incorporated.

 

(b) Net Litigation
Proceeds. “Net Litigation Proceeds” shall mean cash sums actually received or recovered by the Company (including
its subsidiaries) from a defendant or other opposing party in litigation, for, on account of, or in connection with any of the
Pending Patent Cases, less (1) fees and expenses of the Company’s legal counsel (including expert fees and counsel’s
contingency fees) for the Patent Pending Cases that are actually paid by Company, (2) fees and expenses of the Company’s
legal counsel incurred in connection with any related Inter Partes Review (IPR) proceeding, Covered Business Method (CBM) proceeding,
or any other validity proceedings or petitions for such proceedings filed with the United States Patent and Trademark Office’s
Patent Trial and Appeal Board (PTAB) or the federal courts, relating to any of the patents that are the subject of the Company’s
Pending Patent Cases, and (3) any debt or other contractual payment obligation (whether fixed or contingent), or any proceed right
or similar obligation, or any expense reimbursement obligation payable to any third party lender or funding entity (including any
successor(s) or assign(s)) for the Company’s Pending Patent Cases that has a contractual priority superior to that of the
Company’s with respect to litigation proceeds (including any settlement and judgment collection) received in connection with
the Company’s Pending Patent Cases and that is actually paid in money by Company (but not in equity or stock). Pursuant to
this definition, expenses in one of the three categories set forth herein from one of the Company’s Pending Patent Cases
may never be used to offset or reduce litigation proceeds obtained in a separate Pending Patent Case.

 

(c) Net Sales Proceeds.
“Net Sales Proceeds” shall mean cash sums actually received by the Company (including its subsidiaries) from a sale
of any of its patent assets, less (1) the original purchase price of the patent assets being sold, (2) legal fees and expenses
associated with the patent assets being sold that are actually paid by the Company in connection with any such sales transaction,
and (3) if applicable, any fees and expenses set forth in Section 3.3(b)(1) through (3) that may have been accrued and payable
by the Company prior to such sale.

  

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3.4 Benefits.
Executive shall be entitled to participate in all benefit programs that the Company establishes and makes available to its executive
employees, including health care and option plans. Executive understands that, except when prohibited by applicable law, the Company’s
benefit plans and fringe benefits may be amended by the Company from time to time in its sole discretion.

 

3.5 Expenses.
The Company shall reimburse Executive for reasonable travel, entertainment, mileage, and other business expenses incurred by Executive
in the performance of his duties hereunder in accordance with the Company's general policies, as amended from time to time. If
a business expense reimbursement is not exempt from Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”),
any reimbursement in one calendar year shall not affect the amount that may be reimbursed in any other calendar year, and a reimbursement
(or right thereto) may not be exchanged or liquidated for another benefit or payment. Any business expense reimbursements subject
to Section 409A of the Code shall be made no later than the end of the calendar year following the calendar year in which such
business expense is incurred by Executive.

 

4.Termination
of Agreement. This Agreement shall terminate one-month from its Commencement Date without the necessity of a formal notice
by either party, unless the Company and Executive elect to extend the Term of the Agreement, on the same or different terms, upon
mutual written agreement of the parties.

 

5.Effect of
Termination. In the event that Executive’s employment terminates upon expiration of the Term pursuant to Section
4, the Company shall have no further obligation under this Agreement other than to (x) pay to Executive the compensation earned
prior to the last day of his actual employment by the Company; and (y) to reimburse Executive for expenses incurred prior to termination
in accordance with Section 3.5.

 

6.Nondisclosure
and Noncompetition.

 

6.1Proprietary
Information.

 

(a)Executive agrees
that all information and know-how, whether or not in writing, of a private, secret or confidential nature concerning the Company’s
business or financial affairs (collectively, “Proprietary Information”) is and shall be the exclusive property of the
Company. By way of illustration, but not limitation, Proprietary Information may include inventions, products, processes, methods,
techniques, formulas, designs, drawings, slogans, tests, logos, ideas, practices, projects, developments, plans, research data,
financial data, personnel data, computer programs, and customer and supplier data, or other materials or information relating to
the Company’s business and activities and the manner in which the Company does business. Executive will not disclose any
Proprietary Information to others outside the Company except in the performance of his duties or use the same for any unauthorized
purposes without written approval by an officer of the Company, either during or after his employment, unless and until such Proprietary
Information has become public knowledge or generally known within the industry without fault by Executive, or unless otherwise
required by law.

 

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(b)Executive agrees
that all files, letters, memoranda, reports, records, data, sketches, drawings, laboratory notebooks, program listings, or other
written, photographic, electronic or other material containing Proprietary Information, whether created by Executive or others,
which shall come into his custody or possession, shall be and are the exclusive property of the Company to be used by Executive
only in the performance of his duties for the Company.

 

(c)Executive agrees
that his obligation not to disclose or use information, know-how and records of the types set forth in paragraphs (a) and (b) above,
also extends to such types of information, know-how, records and tangible property of subsidiaries and joint ventures of the Company,
customers of the Company or suppliers to the Company or other third parties who may have disclosed or entrusted the same to the
Company or to Executive in the course of the Company’s business.

 

(d)Nothing in this
Agreement prohibits Executive from reporting possible violations of federal law or regulation to any governmental agency or enforcement
entity, or from making other disclosures that are protected under applicable whistleblower provisions of federal law and regulation.

 

6.2Noncompetition
and Nonsolicitation.

 

(a)During Executive’s
employment and for a period of six (6) months after the termination of Executive’s employment with the Company, Executive
will not directly or indirectly, absent the Company’s prior written approval, render services of a business, professional
or commercial nature to any other person or entity that competes with the Company in the same geographical area where the Company
does business at the time this covenant is in effect (or where the Company has made, as of the effective date of termination, active
plans to do business), whether such services are for compensation or otherwise, whether alone or in conjunction with others, as
an employee, as a partner, or as a shareholder (other than as the holder of not more than 1% of the combined voting power of the
outstanding stock of a public company), officer or director of any corporation or other business entity, or as a trustee, fiduciary
or in any other similar representative capacity.

 

(b)During Executive’s
employment and for a period of six (6) months after the termination of Executive’s employment with the Company, Executive
will not, directly or indirectly, recruit, solicit or induce, or attempt to recruit, solicit or induce any employee or employees
of the Company to terminate their employment with, or otherwise cease their relationship with, the Company.

 

(c)During Executive’s
employment and for a period of six (6) months after the termination of Executive’s employment with the Company, Executive
will not, directly or indirectly, solicit, divert or take away, or attempt to solicit, divert or take away, the business or patronage
of any of the Serviced Clients of the Company or the Marketed Prospective Clients of the Company, as defined in Section 6.2(d).

 

(d)As used above,
a “Serviced Client” shall be considered any client, customers or accounts of the Company with whom Executive had business
dealings or contacts on behalf of the Company in the course of Employee’s employment with the Company or about which Executive
had access to Proprietary Information. As used above, the “Marketed Prospective Clients” shall be considered any prospective
clients, customers or accounts of the Company with whom Executive had business dealings or contacts on behalf of the Company in
the course of Executive’s employment with the Company or about which Executive had access to Proprietary Information.

 

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6.3If any restriction
set forth in this Section 6 is found by any court of competent jurisdiction to be unenforceable because it extends for too long
a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only
over the maximum period of time, range of activities or geographic area as to which it may be enforceable.

 

6.4The restrictions
contained in this Section 6 are necessary for the protection of the business, trade secrets, proprietary and confidential information,
and goodwill of the Company, especially in light of the unique services rendered on behalf of the Company by Executive in his position
as Chief Executive Officer. These restrictions are entered in to in conjunction with the Company’s offer to Executive of
continued employment and eligibility for the Performance Bonus. Executive has had the opportunity to consult with counsel regarding
these restrictions, which are considered by Executive to be reasonable for such purpose and substantial new consideration. Executive
agrees that any breach of this Section 6 will cause the Company substantial and irrevocable damage and therefore, in the event
of any such breach, in addition to such other remedies which may be available, the Company shall have the right to seek specific
performance and injunctive relief.

 

6.5Other Agreements.
Executive represents that his performance of all the terms of this Agreement as an employee of the Company does not and will not
breach any (i) agreement to keep in confidence proprietary information, knowledge or data acquired by him in confidence or
in trust prior to his employment with the Company or (ii) agreement to refrain from competing, directly or indirectly, with the
business of any previous employer or any other party. Executive represents that all information Executive provided to the Company
regarding Executive’s education, work background, experience and lack of post-employment restrictions are all true and accurate
and the Company is entitled to rely on such representations.

 

6.6Portfolio Management
Exception. The Company acknowledges that Executive manages, and will continue to manage, several outside portfolios. Accordingly,
the restrictions set forth in Section 6.2 above shall not apply with respect to any services Executive provides regarding any portfolio
identified in the separate Confidential Memorandum of Understanding the Company and Executive shall enter into concurrently with
this Agreement.

 

7.Notices.
All notices required or permitted under this Agreement shall be in writing and shall be deemed effective upon (a) the date of receipt,
if sent by personal delivery (including delivery by reputable overnight courier), or (b) the date of receipt or refusal, if deposited
in the United States Post Office, by registered or certified mail, postage prepaid and return receipt requested, or (c) the date
of receipt if sent by e-mail PDF or facsimile transmission to the e-mail address or facsimile number of record of Executive or
the Company, or at such other place as may from time to time be designated by either party in writing.

 

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8.Entire Agreement.
This Agreement, and those documents referenced herein, constitute the entire agreement between the parties and supersede all prior
agreements and understandings, including prior employment agreements, whether written or oral relating to the subject matter of
this Agreement. Signatures affixed to this Agreement may be delivered in e-mail PDF form and any such signatures shall be deemed
original signatures for purposes of the validity and enforceability of this Agreement.

 

9.Amendment.
This Agreement may be amended or modified only by a written instrument executed by both the Company and Executive.

 

10.Governing
Law. This Agreement shall be construed, interpreted and enforced in accordance with the laws of the State of New York, applied
without giving effect to any conflicts-of-law principles. Any action or proceeding relating to this Agreement or Executive’s
employment shall be venued exclusively in the state or federal courts located in Western New York.

 

11.Assumption
by Successors. Any successor of the Company shall succeed to all of the Company’s duties, obligations, rights and benefits
hereunder. The obligations of Executive are personal and shall not be assigned by him.

 

12.No Waiver.
No delay or omission by a party in exercising any right under this Agreement shall operate as a waiver of that or any other right.
A waiver or consent given by a party on any one occasion shall be effective only in that instance and shall not be construed as
a bar or waiver of any right on any other occasion.

 

13.Severability.
In case any provision of this Agreement shall be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability
of the remaining provisions shall in no way be affected or impaired thereby.

 

14.Survival.
Upon the termination of the Term and any termination of this Agreement, the obligations of the parties under Sections 5 and 6 shall
survive and continue in effect in accordance with their terms.

 

15.Jury Waiver.
Executive and the Company each waive any right to a jury trial in any action arising out of or relating to a breach or alleged
breach of this Agreement.

 

(Signature Page Follows)

 

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

 

	 	 	 	/s/ Jeffrey Ronaldi	 
	 	 	 	Jeffrey Ronaldi (Executive)	 
	 	 	 	 	 
	DOCUMENT SECURITY SYSTEMS, INC.	 	 	 
	 	 	 	 	 
	 		 	 	 
	By:	/s/ Philip Jones	 	 	 
	 	Philip Jones	 	 	 
	Its:	Chief Financial Officer	 	 	 

 

    	 	7Exhibit 10.7.1

 

EIGHTH AMENDMENT TO LOAN AND SECURITY
AGREEMENT

 

This EIGHTH
Amendment to Loan AND SECURITY Agreement (this “Amendment”), is made as of November 9, 2015, by and
between ALLIED HEALTHCARE PRODUCTS, INC., a Delaware corporation (“Borrower”), and ENTERPRISE BANK
& TRUST, a Missouri chartered trust company (“Lender”).

 

WHEREAS, Borrower
and Lender have entered into that certain Loan and Security Agreement dated as of November 17, 2009, together with all amendments
thereto through and including that certain Seventh Amendment to Loan and Security Agreement dated as of November 10, 2014 (as further
amended and restated from time to time, the “Loan Agreement”); and

 

WHEREAS, Borrower
and Lender have agreed to amend certain provisions of the Loan Agreement and the other Loan Documents pursuant to the terms and
conditions contained herein.

 

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

1.            Defined Terms. Capitalized terms used in this Amendment which are defined in the Loan Agreement shall have the same
meanings as defined therein, unless otherwise defined herein. 

 

2.            Amendments.

 

a.            The
“Revolving Credit Termination Date” as defined in Section 1.1.1 of the Loan Agreement shall be November 9, 2016.

 

b.            Section
8.2.8 is hereby deleted in its entirety and replaced with the following:

 

“8.2.8            [Reserved.]”

 

c.            The
following new Section 8.4 is hereby inserted following section 8.3 of the Loan Agreement:

 

“8.4            Minimum
Liquidity.Borrower shall maintain a minimum Liquidity of not less than $1,250,000.  This covenant will be measured
at the end of each fiscal quarter commencing with the fiscal quarter ending December 31, 2015.”

 

d.            In
Appendix A of the Loan Agreement, the following new definition of “Liquidity” is hereby inserted:

 

“Liquidity -
(i) cash and those assets that can be readily converted into cash within 30 days, less (ii) the aggregate
outstanding principal balance of the Revolving Credit Loans.”

 

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All applicable provisions
of the other Loan Documents executed in connection with the Loan Agreement are hereby amended in accordance with this Section 2.

 

3.            References.
All references in the Loan Agreement to “this Agreement” shall be deemed to refer to the Loan Agreement as amended
hereby; and any and all references in the other Loan Documents to the Loan Agreement shall be deemed to refer to the Loan Agreement
as amended hereby.

 

4.            Fee. Borrower shall pay
to Lender an amendment fee in the amount of $250.00, which fee shall be deemed fully earned and nonrefundable upon the execution
of this Amendment.

 

5.            Representations
and Warranties. Borrower hereby represents and warrants to Lender as follows:

 

(a)               
Recitals. The Recitals in this Amendment are true and correct in all respects.

 

(b)              
Incorporation of Representations. All representations and warranties of Borrower in the Loan Agreement are incorporated
herein in full by this reference and are true and correct as of the date hereof.

 

(c)               
Corporate Power; Authorization. Borrower has the corporate power, and has been duly authorized by all requisite corporate
action, to execute and deliver this Amendment and to perform its obligations hereunder and thereunder. This Amendment has been
duly executed and delivered by Borrower.

 

(d)              
Enforceability. This Amendment is the legal, valid and binding obligation of Borrower, enforceable against Borrower
in accordance with its terms, subject to (i) applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance
and other similar laws of general application affecting the rights of creditors and (ii) applicable laws and regulations and principles
of equity which may restrict the enforcement of certain remedies or the availability of certain equitable remedies.

 

(e)               
No Violation. Borrower's execution, delivery and performance of this Amendment does not and will not (i) violate
any law, rule, regulation or court order to which Borrower is subject; (ii) conflict with or result in a breach of Borrower's Articles
of Incorporation or Bylaws or any agreement or instrument to which Borrower is party or by which Borrower or its properties is
bound, or (iii) result in the creation or imposition of any lien, security interest or encumbrance on any property of Borrower,
whether now owned or hereafter acquired, other than liens in favor of Lender.

 

(f)               
Obligations Absolute. The obligation of Borrower to repay the Obligations, together with all interest accrued thereon,
is absolute and unconditional, and there exists no right of set off or recoupment, counterclaim or defense of any nature whatsoever
to payment of the Obligations.

 

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6.            Effect and Construction of
Amendment. Except as expressly provided herein, the Loan Documents shall remain in full force and effect in accordance with
their respective terms, and this Amendment shall not be construed to:

 

(a)            impair
the validity, perfection or priority of any lien or security interest securing the Obligations; or

 

(b)            waive
or impair any rights, powers or remedies of Lender under the Loan Documents.

 

In the event of any inconsistency between the terms of this Amendment and the Loan Agreement or any of the Loan Documents,
this Amendment shall govern. Borrower acknowledges that it has consulted with counsel and with such other experts and advisors
as it has deemed necessary in connection with the negotiation, execution and delivery of this Amendment. This Amendment shall
be construed without regard to any presumption or rule requiring that it be construed against the party causing this Amendment
or any part hereof to be drafted.

 

7.            Conditions Precedent to Effectiveness
of Amendment. This Amendment shall not be effective until Lender shall have received this Amendment duly executed, along with
such other and further documents as Lender shall reasonably request, all in form and substance satisfactory to Lender and its counsel.

 

8.            Miscellaneous.

 

a.                  
Further Assurance. Borrower agrees to execute such other and further documents and instruments as Lender may reasonably
request to implement the provisions of this Amendment and to perfect and protect the liens and security interests created by the
Loan Agreement.

 

b.                 
Benefit of Amendment. This Amendment shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto, their respective successors and assigns. No other person or entity shall be entitled to claim any right or benefit
hereunder, including, without limitation, the status of a third-party beneficiary of this Amendment.

 

c.                  
Severability. The provisions of this Amendment are intended to be severable. If any provisions of this Amendment
shall be held invalid or unenforceable in whole or in part in any jurisdiction, such provision shall, as to such jurisdiction,
be ineffective to the extent of such invalidity or enforceability without in any manner affecting the validity or enforceability
of such provision in any other jurisdiction or the remaining provisions of this Amendment in any jurisdiction.

 

d.                 
Counterparts; Telecopied Signatures. This Amendment may be executed in any number of counterparts and by different
parties to this Amendment on separate counterparts, each of which, when so executed, shall be deemed an original, but all such
counterparts shall constitute one and the same agreement. Any signature delivered by a party by facsimile transmission shall be
deemed to be an original signature hereto.

 

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e.                  
Notices. Any notices with respect to this Amendment shall be given in the manner provided for in the Loan Agreement.

 

f.                  
Survival. All representations, warranties, covenants, agreements, undertakings, waivers and releases of Borrower
contained herein shall survive until the Obligations are paid in full.

 

g.                 
Incorporation by Reference; Statement Required By Mo. Rev. Stat. Section 432.047. All of the terms of the Loan Documents
are incorporated in and made part of this Amendment by reference. Pursuant to Mo. Rev. Stat. Section 432.047, Lender hereby gives
the following notice to Borrower:

 

“Oral
OR UNEXECUTED agreements or commitments to loan money, extend credit or to forbear from enforcing repayment of a debt including
promises to extend or renew such debt are not enforceable, regardless of the legal theory upon which it is based that is in any
way related to the credit agreement. To protect you (borrower(s)) and us (creditor) from misunderstanding or disappointment, any
agreements we reach covering such matters are contained in this writing, which is the complete and exclusive statement of the agreement
between us, except as we may later agree in writing to modify it.”

 

[Remainder of Page Intentionally Left
Blank]

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be duly executed as of the date first written above.

 

 

	BORROWER:	ALLIED HEALTHCARE PRODUCTS, INC., a Delaware corporation
	 	 
	 	 
	 	By:       /s/ Earl R. Refsland
	 	Name:  Earl R. Refsland
	 	Title:    President
	 	 
	 	 
	 	 
	LENDER:	ENTERPRISE BANK & TRUST
	 	 
	 	 
	 	By:        /s/ Joseph R. Mark
	 	Name:   Joseph R. Mark
	 	Title:     Commercial Banking Officer

 

 

 

 

 

Signature
Page

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