Document:

Exhibit
10.2

 

	Dated:	December
    2020

 

BioMed
Technology Asia Pacific Holdings Limited (as Issuer)

 

And

 

Impact
Biomedical, Inc

 

(as
Subscriber)

 

 

 

SUBSCRIPTION
AGREEMENT

 

 

 

 

    	 

    	 

    

 

	THIS
    AGREEMENT is dated	December
    2020

 

BETWEEN:

 

	(1)	BioMed
    Technology Asia Pacific Holdings Limited, a company incorporated in British Virgin Islands with limited liability whose registered
    office is at 30 de Castro Street, Wickhams Cay 1, P.O. Box 4519, Road Town,
	 	Tortola,
    British Virgin Islands (the “Issuer”); and
	 	 
	(2)	Impact
    BioMedical, Inc. a company incorporated in the United States with limited liability whose registered office is at 200 Canal View
    Blvd. Suite 104 Rochester, NY 14623 (the 11Subscriber”) which is a wholly owned subsidiary of Document Security Systems,
    Inc. (DSS).

 

WHEREAS:

 

	(A)	The
    Issuer has, at the date of this Agreement, an issued capital of US$10,000 divided into 10,000 ordinary shares of US$1 each (11Shares”).
	 	 
	(B)	The
    Issuer has agreed to issue and the Subscriber has agreed to subscribe for the Subscription Shares (as defined below) on the terms
    and subject to the conditions set out in this Agreement.

 

IT
IS HEREBY AGREED:

 

	1.	DEFINITIONS
    AND INTERPRETATION
	 	 
	1.1	In
    this Agreement (including the Recitals above), the following expressions shall, unless the context requires otherwise, have the following
    meanings:

 

	 	“Business
Day”	any
                                            day (excluding Saturday and Sunday) on which banks are generally open for business in Hong
                                            Kong;

    

 

	 	“Completion”	completion
    of the Subscription pursuant to this Agreement;
	 	 	 
	 	“Completion
    Date”	9th
    December 2020; HK$4,900,000;
	 	 	 
	 	“Consideration”

     

    “Encumbrance”
    

     
	means
                                            any charge, mortgage, lien, option, equitable right,
                                            power of sale, pledge, hypothecation, retention of title, right of pre-emption, right of
                                            first refusal or other third-party right or security interest of any kind or an agreement,
                                            arrangement or obligation to create any of the foregoing;

 

    	 

    	 

    

 

	 	“HK$”	Hong
    Kong dollar, the lawful currency of Hong Kong;
	 	 	 
	 	“Hong
    Kong”	the
    Hong Kong Special Administrative Region of the People’s Republic of China;
	 	“Party(ies)”	the
    named party(ies) to this Agreement and its/their
	 	 	successors
    and permitted assigns;
	 	 	 
	 	“Subscription”	the
    subscription of the Subscription Shares by the Subscriber pursuant to this Agreement;
	 	 	 
	 	 “Subscription
    Price’’	HK$9,333.33
    per Subscription Share; 
	 	 	 
	 	“Subscription
    Shares”	525
    new shares; and
	 	 	 
	 	“US$”	United
    States dollars, the lawful currency of the
	 	 	United
    States of America.

 

	1.2	Save
    as otherwise expressly stated herein, references to any statute or statutory provision includes a reference to that statute, statutory
    provision as from time to time amended, extended or re-enacted.
	 	 
	1.3	In
    this Agreement, references to:

 

	 	(a)	Recitals
    and Clauses are to the recitals and clauses of this Agreement;
	 	 	 
	 	(b)	the
    singular includes the plural and vice versa;
	 	 	 
	 	(c)	words
    importing gender or the neuter include both genders and the neuter; and
	 	 	 
	 	(d)	persons
    include bodies corporate or unincorporate.

 

	1.4	Headings
    are for convenience only and shall not affect the interpretation of this Agreement.
	 	 
	2.	SUBSCRIPTION
    FOR SHARES
	 	 
	2.1	The
    Subscriber shall subscribe for the Subscription Shares at the Subscription Price and the Subscriber shall pay or procure that there
    be paid to or to the order of the Issuer the Consideration pursuant to the terms and conditions set out in this Agreement.
	 	 
	2.2	The
    Issuer shall at Completion issue and allot the Subscription Shares to the Subscriber (or its nominee as the Subscriber may direct)
    at the Subscription Price per Subscription Share.

 

    	 

    	 

    

 

	2.3	The
    Issuer undertakes that it will not at any time, offer to other party, any issuance of its shares at a price lower than the Subscription
    Price paid by the Subscriber pursuant to this Agreement.
	 	 
	2.4	Upon
    Completion, the Subscriber will own 4.99% of the enlarged share capital of the Issuer.
	 	 
	3.	PAYMENT
    TERMS
	 	 
		The
    Subscriber shall pay to the Issuer the Consideration on Completion.
	 	 
	4.	OPTION
	 	 
	 	It
    is the intention that the Issuer may list its shares for an initial price offering (“IPO”) in any major global stock
    exchange. In this event, the Issuer agrees that the Subscriber has the option or right to subscribe 5% of the enlarged capital of
    the Issuer at the same subscription price. This allotment shall be completed prior to IPO.
	 	 
	 	 
	5.	RIGHT
    TO APPOINT A DIRECTOR NOMINATED BY THE SUBSCRIBER TO THE BOARD OF THE ISSUER
	 	 
	 	The
    Subscriber shall have the right after Completion to appoint a director to the Board of the Issuer when it so decides.
	 	 
	 	 
	6.	CONTINGENT
    SIGNING WITH DISTRIBUTION AGREEMENT
	 	 
	 	This
    Subscription Agreement shall be contingently signed with the distribution agreement which is attached in Appendix.
	 	 
	7.	RIGHT
    OF FIRST REFUSAL
	 	 
	 	If
    the Issuer wishes to sell, transfer or otherwise dispose of any or all of its shares (“Offerer Party”), the Subscriber
    shall have a prior right to buy such shares (“Offered Shares”) and the following shall apply: 
	 	 
	7.1	The
    Offerer Party shall give to the Offeree Party notice in writing of his decision or intention to sell all and or any of his Offered
    Shares to them. Such notice shall be given either by facsimile transmission or registered letter addressed to the Offeree Party at
    the addresses set out under Clause 12.1 (or at such other address as may be notified from time to time in writing by each Offerer
    Party to the others) or by serving such notice upon the Offeree Party (“Selling Notice”) personally, and if mailed aforesaid,
    such notice shall be deemed to have been given to the Offeree Party. This notice shall set out:

 

	 	(i)	The
    number of Shares beneficially owned by the Offerer Seller;
	 	 	 
	 	(ii)	The
    number and class of shares which make up the Offered Shares and the price and terms and conditions of the sale of the Offered Shares.

 

    	 

    	 

    

 

	7.2	Each
    Offeree Party may, within a period of fourteen (14) days next following the date when the Selling Notice shall be deemed to
    have been given, give written notice either by facsimile transmission or by registered letter, addressed to the Offeror Seller at
    the address set out under Clause 12.1 (or such other address as may be prescribed in the Selling Notice) or by serving the notice
    personally on the Offeree Party. This notice (“Buying Notice”) shall state either that such Offeree Party is willing
    to purchase the Offered Shares, or that he is not willing to purchase the Offered Shares. If any Offeree Party fails to give the
    Buying Notice, he will be deemed to have refused to purchase the offered shares.
	 	 
	7.3	If
    more than one Offeree Party has given a Buying Notice to the Offerer Party indicating his willingness to purchase the Offered Shares,
    then the Offeree Party shall purchase all the shares comprising the Offered Shares in such proportions as they may agree upon, or
    in the absence of agreement, in the common share ratio of each Offeree Party, computed without reference to the Offerer’s shares.
	 	 
	7.4	If
    the Offeree Party by reason of the provisions hereinbefore contained, do not purchase the Offered Shares, then the Offerer Party
    shall be at liberty to sell the Offered Shares to an outsider (“Outsider”) but only at the price equal to or in excess
    of the price contained in the Selling Notice and on the same terms as disclosed in the Selling Notice. days of the date of receipt
    of the unconditional offer, share ratio of each Offeree Party, computed without reference to the Offerer’s shares. If within
    the earlier of fourteen (14) days from the date of the Selling Notice or fourteen (14) days of the date of receipt of the last Buying
    Notice by the Offerer Party indicating the refusal of the Offeree Parties to purchase the Offered Shares, the Offerer Party has not
    received an unconditional offer to purchase the Offered Shares from an Outsider within fourteen (14) days of the date of receipt
    of the unconditional offer, then the rights of the Offeree Parties shall revive in respect of the Offered Shares and if the Seller
    shall thereafter desire to sell any of his Offered Shares, he shall again give notice pursuant to Clause 7.1 and so on from time
    to time. The Offerer Party shall serve a copy of the Outside offer upon the Offeree Parties pursuant to Clause 7.1 prior to selling
    the Offered Shares to the Outsider.
	 	 
	7.5	Any
    offer to purchase the Offered Shares from an outsider must include the condition that the outsider agrees to become a party to this
    Agreement pursuant to the purchase of the Offered Shares.

 

    	 

    	 

    

 

	8.	TAG
    ALONG PROVISIONS
	 	 
	8.1	In
    the event that a Party (“Selling Party”) holds a majority of the common shares, serves a Selling Notice in connection
    with the same Outside Offer and if after the Outside Offer is served upon the Offeree Party in accordance with Clause 12.1, the Offeree
    Party decides that he wishes to sell his shares to the Outsider on the same terms and condition as contained in the Outside Offer,
    then the Selling Party shall not be entitled to sell, transfer or otherwise dispose of the Offered Shares unless the Outsider purchases
    at the same time and on the same terms and condition all of the Shares of the Offeree Party who so desires to sell his Shares.
	 	 
	8.2	In
    the event that any party serves a Selling Notice in accordance with Clause 12.1 in connection with an Outside Offer which provides
    for a sale, the completion of which would result in the ownership by the Outsider of a majority of the common shares, and should
    the Offeree Party decide that he wishes to sell his shares to the Outsider on the same terms and conditions as contained in the Outsider
    offer, then the party serving the Selling Notice shall not be entitled to sell, transfer or otherwise dispose of the Offered Shares
    unless the Outsider purchases at the same time and on the same terms and conditions all of the Offered Shares of the Offeree Party
    who so desires to sell his shares.
	 	 
	8.3	In
    the event that a Party accepts an offer from an Outsider to purchase a minimum of 70% of the common shares, then all the Parties
    (including any party who did not accept the Outsider’s offer to purchase) shall be required to sell all of their common shares
    to the Outsider on the same terms and conditions, if the Outsider desires to purchase such Offered Shares, and only if the purchase
    price is at least equal, if not higher than the valuation price which shall be no lower than HK$200,000,000.
	 	 
	8.4	For
    the purpose of this Clause 8, separate offers addressed to each Party or any combination of the Parties by the same Outsider or by
    separate Outsider or any combination of outsiders acting in concert shall be considered a single outside offer.
	 	 
	9.	COMPLETION

 

Completion
of the Subscription shall take place on the Completion Date as the Parties may agree:

 

	 	(a)	the
    Issuer shall: allot and issue the Subscription Shares on terms that they rank pari passu in all respects with the existing
    issued Shares, including the right to rank in full for all distributions thereafter declared, paid or made by the Issuer after the
    Completion; and
	 	 	 
	 	(b)	the
    Subscriber shall make payment in HK dollars to the Issuer the amount of the Consideration by delivery of a cashier’s order
    drawn in favour of the Issuer or by electronic transfer of immediately available funds to the bank account designated by the Issuer
    in writing (or in such other manner as may be agreed by the Issuer) without any set off, withholding or deduction.

 

    	 

    	 

    

 

	10	EXPENSES
	 	 
	10.1	Each
    Party shall be responsible for its own fees and costs in connection with the negotiation, completion and enforcement of this Agreement.
	 	 
	10.2	Capital
    fees, stamp duty and all other fees and duties (if any) relating to the issue and allotment of the Subscription Shares shall be borne
    by the Issuer.
	 	 
	 	 
	11	WARRANTIES,
    REPRESENTATIONS AND UNDERTAKINGS
	 	 
	11.1	The
    Issuer hereby warrants and represents to and for the benefit of the Subscriber that as at the date hereof and for all times up to
    and including the Completion Date:

 

	 	(a)	it
    is a limited liability company, duly incorporated and validly existing under the laws of British Virgin Islands;
	 	 	 
	 	(b)	it
    has the power and authority to own its assets and carry on its business as it is being conducted;
	 	 	 
	 	(c)	that
    it has the power to enter into and perform this Agreement and the transactions contemplated by this Agreement;
	 	 	 
	 	(d)	that
    it has obtained all necessary corporate and other necessary actions and consents (including approval of its board of directors) to
    authorize the execution and performance of this Agreement;
	 	 	 
	 	(e)	this
    Agreement constitutes valid, binding and enforceable obligations of it; and
	 	 	 
	 	(f)	the
    Subscription Shares are free and clear of all charges, liens, encumbrances and rank pari passu in all respects with all other
    Shares in issue.

 

    	 

    	 

    

 

	11.2	The
    Subscriber represents, warrants and undertakes to the Issuer that as at the date hereof and for all times up to and including
    the Completion Date:

 

	 	(a)	it
    is duly incorporated and validly existing under the laws of the place of its incorporation with power to conduct its business in
    the manner presently conducted;
	 	 	 
	 	(b)	it
    has the authority to enter into and perform this Agreement;
	 	 	 
	 	(c)	this
    Agreement constitutes valid, binding and enforceable obligations of its legal, valid and binding obligation enforceable in accordance
    with its terms;
	 	(d)	its
    ultimate beneficial shareholders are third parties independent of the Issuer and connected persons of the Issuer;
	 	(e)	it
    is purchasing the Subscription Shares as principal and not as agent for any third parties; and
	 	 	 
	 	(f)	that
    it has obtained all necessary corporate and other necessary action and consent (including the approval of its board of directors)
    to authorize the execution and performance of this Agreement.

 

	11.3	Each
    of the Parties shall before Completion promptly notify the other Party in writing of any matter or thing of which it becomes aware
    which is a breach of or inconsistent with any of the above warranties.
	 	 
	11.4	Each
    of the representations, warranties and undertakings shall be separate and independent and. save as expressly provided, shall not
    be limited by reference to any other Clause or anything in this Agreement.
	 	 
	11.5	The
    Issuer’s maximum liability in respect of its warranties under Clause 10.1 shall be an amount equal to the Consideration.
	 	 
	11.6	In
    consideration of the issue of the Subscription Shares by the Issuer to the Subscriber (the sufficiency of which is hereby acknowledged),
    the Subscriber hereby irrevocably and unconditionally undertakes to the Issuer that it will not, and will procure its ultimate beneficial
    owner(s) not to, sell, assign, transfer, pledge, hypothecate, dispose of in any way, or otherwise create any Encumbrances in respect
    of, all or any part of or any direct or indirect interest in any of the Subscription Shares to any person for the period commencing
    from the Completion Date up to and including the first anniversary date of the Completion Date.

 

	12	NOTICES
	 	 
	12.1	All
    notices delivered hereunder shall be in writing and shall be communicated to the following addresses:

 

If
to the Issuer, to:

 

	 	Address	Unit
                                            1405, East Point Center, 555 Hennessy Road, Causeway Bay, Hong Kong

    

	 	Facsimile
    	(852)
                                            2988 1622

    

	 	Attention	Mr.
                                            Vincent Tsang

    

 

If
to the subscriber, to:

 

	 	Address	200
                                            Canal View Blvd. Suite 104 Rochester, NY14623, USA

    

	 	Facsimile
    	(1)
                                            585 325 2977

    

	 	Attention	Mr.
                                            Chan Heng Fai

    

 

	12.2	Any
    such notice shall be served either by hand or by facsimile. Any notice shall be deemed to have been served, if served by hand, when
    delivered, and if sent by facsimile on receipt of confirmation of transmission. Any notice received on a day which is not a Business
    Day shall be deemed to be received on the next Business Day.
	 	 
	13	GENERAL
	 	 
	13.1	The
    exercise of or failure to exercise any right or remedy in respect of any breach of this Agreement shall not, save as provided herein,
    constitute a waiver by such Party of any other right or remedy it may have in respect of that breach.
	 	 
	13.2	Any
    right or remedy conferred by this Agreement on either Party for breach of this Agreement (including without limitation the breach
    of any representations and warranties) shall be in addition and without prejudice to all other rights and remedies available to It
    in respect of that breach.
	 	 
	13.3	Any
    provision of this Agreement which is capable of being performed after Completion, but which has not been performed on or before
    Completion and all warranties contained in or entered into pursuant to this Agreement shall remain in full force and effect notwithstanding
    Completion.
	 	 
	13.4	This
    Agreement (together with the other documents referred to herein) constitutes the entire agreement between the Parties with respect
    to its subject matter (neither Party having relied on any representation or warranty made by the other Party which is not contained
    in this Agreement), and no variation of this Agreement shall be effective unless made in writing and signed by all the Parties.
	 	 
	13.5	This
    Agreement supersedes all and any previous agreements, arrangements or understandings between the Parties relating to the matters
    referred to in this Agreement and all such previous agreements, understanding or arrangements (if any) shall cease and determine
    with effect from the date hereof.
	 	 
	 	 
	13.6	If
    at any time any provision of this Agreement is or becomes illegal, void or unenforceable in any respect, the remaining provisions
    hereof shall in no way be affected or impaired thereby.
	 	 
	13.7	Each
    of the Parties agrees to do and execute or procure to be done and executed all such further acts, deeds, documents and things as
    may be reasonable and appropriate for such Party to do or execute or procure to be done in order to give full effect to the terms
    of this Agreement.

 

    	 

    	 

    

 

	13.8	Each
    Party hereto acknowledges and agrees that if it breaches this Agreement (or any other agreement entered into pursuant to it), damages
    may not be an adequate remedy, and the non-defaulting Party shall be entitled to seek remedy by injunction, order for specific performance
    or such other equitable relief as a court of competent jurisdiction may see fit to award. Therefore, if the non-defaulting Party
    shall institute any action or proceeding to enforce the provisions hereof, the defaulting Party against whom such action or proceeding
    is brought hereby waives any claim or defense therein that the non-defaulting Party has an adequate remedy at law, to the extent
    permitted by law.
	 	 
	13.9	Each
    of the Parties acknowledges that it/he has sought independent legal advice in relation to the execution of, and any other matters
    contemplated under, this Agreement, and that it/he is fully aware of the implications of the entering into of this Agreement.
	 	 
	13.10	No
    Party may assign or transfer or purport to assign or transfer any of its rights, obligations or liabilities hereunder without the
    prior written consent of the other.
	 	 
	13.11	Any
    time, date or period may be extended by written agreement between the Parties or as provided for herein but otherwise time shall
    be of the essence.
	 	 
	14	COUNTERPARTS
	 	 
	 	This
    Agreement may be executed in any number of counterparts each of which when executed and delivered is an original, but all the counterparts
    together constitute the same document.
	 	 
	15	CONFIDENTIALITY
	 	 
	 	All
    Parties undertake to keep all information (the “information”) of the content of this Agreement confidential. All Parties
    shall not disclose any Information to any third party without the prior written consent of the other Parties, except with respect
    to Information which is publicly available or as required by law.
	 	 
	 	 
	16	GOVERNING
    LAW AND JURISDICTION
	 	 
	 	This
    Agreement is governed by and shall be construed in accordance with the laws of Hong Kong for the time being in force and each of
    the Parties hereby irrevocably submits to the non-exclusive jurisdiction of the Hong Kong courts in connection herewith.

 

    	 

    	 

    

 

IN
WITNESS WHEREOF this Agreement has been executed on the day and year first above written.

 

	SIGNED
    by	)	 
		)	 
	for
    and on behalf of	)	 
	BioMed
    Technology Asia Pacific Holdings Limited) 	 	 
		)	 
		)	/s/
    Tsang Chi Him Vincent
	 	 	Name:
                                            Tsang Chi Him Vincent

    

	in
    the presence of:	 	CEO,
    BioMed Technology

 

	/s/
    Sui Kino Ho	 
	Name::	Sui
    Kino Ho	 
	 	K259456(0)	 

 

	SIGNED
    by	)	 
		)	 
	for
    and on behalf of	)	 
	Impact
    BioMedical, Inc	)	 
	 	)
    	/s/
    Chan Heng Fai
	in
    the presence of:	)	CHAN
    HENG FAI
	 	 	CHAIRMAN

 

	/s/
    Ang Hay Kim	 
	Name:
    Ang Hay Kim	 

 

    	 

    	 

    

 

APPENDIX

 

DISTRIBUTION
AGREEMENTExhibit 10.6

 

REVOLVING
PROMISSORY NOTE

 

(Document
Security Systems, INC

promissory
note insrument WITH, or Between, affiliates)

 

REVOLVING
LOAN COMMITMENT:

 

	Loan
    Date:	December
    31, 2020
	Maturity
    Date:	December
    31, 2021
	Amount:	$1,059,229
	Borrower:	Impact
    BioMedical, Inc.
	Borrower
    Address:	6
    Framark Drive, Victor, NY 14564
	Lender:	Document
    Security Systems, Inc.
	Lender
    Address:	6
    Framark Drive, Victor, NY 14564

 

FUNDING
AGREEMENT. This Revolving Promissory Note (the “Revolving Note” or “Note”) evidence one or more advances
made by Lender to Borrower pursuant to a written advance request (the “Advance Request) made by Borrower during the term of this
Note. Subject to the Lender’s sole and absolute discretion, the Lender may authorize and fund, part or all, such Lender requests
under the terms of this Note and the Advance Request(s).

 

REVOLVING
NOTE FEATURE. Principal amounts borrowed and repaid hereunder may be reborrowed, and accordingly, the gross sum of all advances made
under this Note may exceed the Revolving Loan Commitment, provided, however, that the outstanding principal balance hereof shall at no
time exceed the Revolving Loan Commitment. All payments of principal under this Revolving Note shall reduce the unpaid balance of principal
due hereunder but shall not extinguish this Revolving Note until the entire principal balance and all accrued interest hereon
has been paid in full, and all, if any, obligation of Lender to advance funds under the terms of this Note, has been terminated including
by virtue of the maturity of this Note.

 

PROMISE
TO PAY: For value received, Borrower promises to pay to the order of Lender at Lender’s Address, or such other place as Lender
shall notify Borrower, from time to time, the funded and outstanding principal balance, together with interest on the funded unpaid balance
of the Note, in lawful money of the United States of America, in accordance with all the terms, conditions and covenants of this Note,
any advance requests or other loan documents, if any.

 

PAYMENT
TERMS: The full amount of the advanced and then outstanding principal and interest balance under the terms of this Note shall be
due and payable at the earlier of (i) twelve (12) months from the origination date of this Note date, or (ii) the Maturity Date set forth
above. The Borrower may repay all or part of any funded and outstanding loan balance at any time during the term of this Note.

 

    	Document Security Systems Inc. Affiliated and Intercompany Promissory Note

	1

     

    

 

APPLICATION
OF PAYMENTS: Unless otherwise agreed to by Lender in writing, or otherwise required by applicable law, payments will be applied first
to accrued unpaid interest, then to any unpaid collection costs, late charges, and other charges, and any remaining amount to principal;
provided, however, following the occurrence of an Event of Default (as defined in the Loan Documents), Lender reserves the right to apply
payments among principal, interest, collection costs and other charges as Lender may from time to time determine in its sole discretion.
All prepayments shall be applied to the indebtedness owing hereunder in such order and manner as Lender may from time to time determine
in its sole discretion.

 

INTEREST
PROVISIONS:

 

	(a)	Note
                                            Interest Rate: The principal balance of this Promissory Note from time to time remaining
                                            unpaid prior to maturity shall bear interest at:
	 	four
and one-quarter percent (4.25%) per annum.

 

	(b)	Interest
                                            Rate After Default: At Lender’s option, and to the extent permitted by applicable
                                            law, the unpaid principal balance shall bear interest after default and after maturity (whether
                                            by acceleration or otherwise) at the Default Interest Rate. The “Default Interest
                                            Rate” shall be, at Lender’s option, (i) eighteen percent (18%) per annum,
                                            or (ii) such lesser rate of interest as Lender in its sole discretion may choose to charge;
                                            but never more than the Maximum Lawful Rate or at a rate that would cause the total interest
                                            contracted for, charged or received by Lender to exceed the applicable maximum lawful amount.
	 	Daily
                                            Computation of Interest: To the extent permitted by applicable law, Lender at its option
                                            may either (c) calculate the per diem interest rate or amount based on the actual number
                                            of days in the year (365 or 366, as the case may be), and charge that per diem interest rate
                                            or amount each day, or (d) calculate the per diem interest rate or amount as if each year
                                            has only 360 days, and charge that per diem interest rate or amount each day for the actual
                                            number of days of the year (365 or 366 as the case may be).

 

DEFAULT
PROVISIONS:

 

	(a)	Acceleration
                                            of Maturity: Upon the occurrence of an event of default, which shall include the Borrower’s
                                            (i) failure to repay all amounts when due under the terms of the Note or the Advance Request(s),
                                            (ii) Borrower’s filing for bankruptcy protection, (iii) insolvency and/or receivership
                                            action initiated by Borrower or its creditors, (iv) a material change in the Borrower’s
                                            financial condition, (v) a change in control of the Borrower’s shareholders and/or
                                            Board of Directors, and (vi) statement of the inability to repay the debt by the Borrower.
                                            Upon any event of default, the Lender may accelerate the maturity of this Note and declare
                                            the entire unpaid principal balance and accrued interest at once due and payable. The Borrower
                                            and all other parties liable for this Note hereby waive demand, notice of intent to demand,
                                            presentment for payment, notice of nonpayment, protest, notice of protest, grace, notice
                                            of dishonor, notice of intent to accelerate maturity, notice of acceleration of maturity,
                                            and diligence in collection.

 

	(b)	 Non-Waiver
                                             by
                                            Lender: Any previous extension of time, forbearance, failure to pursue any remedy, acceptance
                                            of late payments, or acceptance of partial payment by Lender, before or after maturity, does
                                            not constitute a waiver by Lender of its subsequent right to strictly enforce the collection
                                            of this Note according to its terms.

 

    	Document Security Systems Inc. Affiliated and Intercompany Promissory Note

	2

     

    

 

	(c)	Other
                                            Remedies Not Required: Borrower may be required to pay this Note in full without the
                                            assistance of any other party, or any collateral or security for this Promissory Note. Lender
                                            shall not be required to mitigate damages, file suit, or take any action to foreclose, proceed
                                            against or exhaust any collateral or security in order to enforce payment of this Note.

 

	(d)	Collateral:
                                            Upon the Lender’s request, the Borrower agrees to provide collateral, acceptable to
                                            the Lender, at any time, whether the Borrower is in compliance or in default of the Note
                                            terms, including but not limited to the granting of a security interest in all of the Borrower’s
                                            assets.

 

	(e)	Attorney’s
                                            Fees: If Lender requires the services of an attorney to enforce the payment of this Note
                                            or the performance of any other loan document(s), or if this Note is collected through any
                                            lawsuit, probate, bankruptcy, or other judicial proceeding, Borrower agrees to pay Lender
                                            all court costs, reasonable attorney’s fees and expenses, and other collection costs
                                            incurred by Lender. This provision shall be limited by any applicable statutory restrictions
                                            relating to the collection of attorney’s fees.

 

MISCELLANEOUS
PROVISIONS:

 

	(a)	Subsequent
                                            Holder: All references to Lender in this Promissory Note shall also refer to any subsequent
                                            owner or holder of this Promissory Note by transfer, assignment, endorsement or otherwise.

 

	(b)	Transfer:
                                            Lender may transfer this Promissory Note or partial interests in the Promissory Note to one
                                            or more transferees or participants. Borrower authorizes Lender to disseminate any information
                                            it has pertaining to the loan evidenced by this Promissory Note, including, without limitation,
                                            credit information on Borrower and any guarantor of this Promissory Note, to any transferee
                                            or participant.

 

	(c)	Successors
                                            and Assigns: The provisions of this Promissory Note shall be binding upon and for the
                                            benefit of the successors, assigns, heirs, executors and administrators of Lender and Borrower.

 

	(d)	Borrower’s
                                            Address for Notice: All notices required to be sent by Lender to Borrower shall be sent
                                            by either (i) U.S. Mail, postage prepaid, registered or certified, return receipt requested,
                                            to Borrower’s Address stated on the first page of this Promissory Note, until Lender
                                            shall receive written notification from Borrower of a new address for notice, or (ii) to
                                            email address of the Borrower’s CEO or CFO, or (iii) by hand delivery to an officer
                                            of the Borrower.

 

	(e)	Lender’s
                                            Address for Payment: All sums payable by Borrower to Lender shall be paid at Lender’s
                                            Address stated on the first page of this Promissory Note, or at such other address as Lender
                                            shall designate from time to time.

 

	(f)	Applicable
                                            Law: This Promissory Note shall be construed
                                            in accordance with the applicable laws of the State of Texas and the laws of the United States
                                            of America applicable to transactions in Texas.

 

[SIGNATURE
PAGE FOR REVOLVING NOTE]

 

    	Document Security Systems Inc. Affiliated and Intercompany Promissory Note

	3

     

    

 

	 	

    BORROWER: Impact BioMedical, Inc.
	 	 	 
	 	By:	
	 	 	Frank
    D. Heuszel, CEO
	 	Date:	12/31/2020

 

Acknowledged
and Agreed:

 

Document
Security Systems, Inc.

 

	By:		 
	 	Todd D. Macko, CFO	 
	Date:
    	12/31/2020	 

 

    	Document Security Systems Inc. Affiliated and Intercompany Promissory Note

	4

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