Dated as of January 4, 2008
DOCUMENT SECURITY SYSTEMS, INC.
Credit Agreement (“Agreement”), made January 4, 2008 by and between DOCUMENT SECURITY
SYSTEMS, INC. (the “Company”) and PATRICK WHITE (“Lender”).
WHEREAS, the Lender has agreed to to loan certain funds to the Company, and the Company has
agreed to borrow certain funds from Lender, subject to the terms and conditions set forth therein;
NOW THEREFORE, in consideration of the terms and conditions contained herein, and of any loans or
extensions of credit heretofore, now or hereafter made to or for the benefit of the Company by the Lender (all of
said loans hereafter referred to as the “Loans”), the parties hereto hereby agree as follows:
General Terms . When used herein, the following terms shall have the following meanings:
“ Acquisition ” means any transaction, or any series of related transactions,
consummated on or after the date of this Agreement, by which Company (i) acquires any going business
or all or substantially all of the assets of any firm, corporation or division thereof, whether through
purchase of assets, merger or otherwise or (ii) directly or indirectly acquires (in one transaction or as the
most recent transaction in a series of transactions) at least a majority (in number of votes) of the securities
of a corporation which have ordinary voting power for the election of directors (other than securities
having such power only by reason of the happening of a contingency) or a majority (by percentage or
voting power) of the outstanding partnership interests of a partnership.
“ Affiliate ” shall mean any Person (1) which directly or indirectly controls, or is
controlled by, or is under common control with the Company or a Subsidiary; (2) which directly or
indirectly beneficially owns or holds five percent (5%) or more of any class of vot