<SEC-DOCUMENT>0001144204-13-015303.txt : 20130315
<SEC-HEADER>0001144204-13-015303.hdr.sgml : 20130315
<ACCEPTANCE-DATETIME>20130315133601
ACCESSION NUMBER:		0001144204-13-015303
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20130315
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20130315
DATE AS OF CHANGE:		20130315

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DOCUMENT SECURITY SYSTEMS INC
		CENTRAL INDEX KEY:			0000771999
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373]
		IRS NUMBER:				161229730
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32146
		FILM NUMBER:		13693259

	BUSINESS ADDRESS:	
		STREET 1:		36 WEST MAIN ST
		STREET 2:		SUITE 710
		CITY:			ROCHESTER
		STATE:			NY
		ZIP:			14614
		BUSINESS PHONE:		585 232 1500

	MAIL ADDRESS:	
		STREET 1:		36 W MAIN ST
		STREET 2:		SUITE 710
		CITY:			ROCHESTER
		STATE:			NY
		ZIP:			14614

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NEW SKY COMMUNICATIONS INC
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	THOROUGHBREDS USA INC
		DATE OF NAME CHANGE:	19861118
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>v338299_8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_001.gif" ALT="" STYLE="height: 4px; width: 67px"></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt"><B>UNITED
STATES</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt"><B>SECURITIES
AND EXCHANGE COMMISSION </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>&#9;Washington, D.C.
20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt"><IMG SRC="image_002.gif" ALT="" STYLE="height: 1px; width: 121px"></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt"><B>FORM
8-K</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt"><B>CURRENT
REPORT</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt"><B>Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt">Date
of Report (Date of earliest event reported): March 15, 2013</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt"><B>DOCUMENT
SECURITY SYSTEMS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt"><B>(Exact
name of registrant as specified in its charter)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt"><B></B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt"><B>New York</B></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt"><B>001-32146</B></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>16-1229730</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt"><B>(State or other jurisdiction of incorporation)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt"><B>(Commission File Number)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt"><B>(IRS Employer Identification No.)</B></FONT></TD></TR>
<TR>
    <TD COLSPAN="3">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>First Federal Plaza, Suite 1525</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>28 East Main Street</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Rochester, NY </B></P></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt"><B>14614</B></FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt"><B>(Address of principal executive offices)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt"><B>(Zip Code)</B></FONT></TD></TR>
<TR>
    <TD STYLE="width: 32%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 32%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 32%">&nbsp;</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt">Registrant&rsquo;s
telephone number, including area code: <B>(585) 325-3610</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; text-indent: 0.5in; margin-top: 0pt; margin-bottom: 0pt"><B>______________________________________________________________</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt"><B>(Former
name or former address, if changed since last report.) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; text-indent: 0.5in; margin-top: 0pt; margin-bottom: 0pt">&nbsp;&nbsp;Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; text-indent: 0.5in; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%"><FONT STYLE="font-family: Wingdings"><FONT STYLE="font-family: Wingdings">&#120;</FONT></FONT></TD>
    <TD STYLE="width: 96%"><FONT STYLE="font-size: 10pt">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Wingdings; color: black">&uml;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Wingdings; color: black">&uml;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Wingdings; color: black">&uml;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 1.01 Entry into a Material Definitive Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On March 15, 2013, Document Security Systems,
Inc., a New York corporation (&ldquo;DSS&rdquo;), DSSIP, Inc., a Delaware corporation and wholly-owned subsidiary of DSS ('Merger
Sub&quot;), and Lexington Technology Group, Inc., a Delaware corporation (&ldquo;Lexington&rdquo;), and Hudson Bay Master Fund
Ltd., as representative of Lexington&rsquo;s stockholders, entered into Amendment No. 2 (&quot;Amendment No. 2&quot;) to that certain
Agreement and Plan of Merger, dated as of October 1, 2012, as amended by that certain Amendment, Waiver and Consent Agreement,
dated as of November 20, 2012 (as amended, the &quot;Merger Agreement&quot;). Pursuant to Amendment No. 2, the date on which either
DSS or Lexington may terminate the Merger Agreement in the event that the merger has not been consummated has been extended from
March 15, 2013 to April 30, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The foregoing summary of Amendment No.
2 does not purport to be complete and is subject to, and qualified in its entirety by, the full text of Amendment No. 2, which
is filed as Exhibit 2.1 to this Current Report on Form 8-K and incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0"><B>Item 8.01. Other Events.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On March 15, 2013, DSS issued a press release
in connection with the foregoing, a copy of which is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated
herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Important Additional Information Will Be Filed with the SEC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This communication does not constitute an
offer to sell or the solicitation of an offer to buy any securities of DSS, or Lexington or the solicitation of any vote or approval.
In connection with the proposed transaction, DSS filed with the SEC a Registration Statement on Form S-4 containing a preliminary
proxy statement/prospectus. The preliminary proxy statement/prospectus contains important information about DSS, Merger Sub, Lexington,
the transaction contemplated by the Merger Agreement and related matters. DSS will mail or otherwise deliver the proxy statement/prospectus
to its stockholders and the stockholders of Lexington once it is final. <B>Prospective investors and security holders of DSS and
Lexington are urged to read carefully the proxy statement/prospectus relating to the merger (including any amendments or supplements
thereto) in its entirety when it is available, because it will contain important information about the proposed transaction</B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Prospective investors and security holders
of DSS will be able to obtain free copies of the proxy statement/prospectus for the proposed merger (when it is available) and
other documents filed with the SEC by DSS through the website maintained by the SEC at www.sec.gov. In addition, prospective investors
and security holders of DSS and Lexington will be able to obtain free copies of the proxy statement/prospectus for the proposed
merger (when it is available) by contacting Document Security Systems, Inc., Attn.: Philip Jones, Chief Financial Officer, at First
Federal Plaza, 28 East Main Street, Suite 1525, Rochester, New York 14614, or by e-mail at ir@dsssecure.com. Prospective investors
and security holders of Lexington will also be able to obtain free copies of the proxy statement/prospectus for the merger (when
it is available) by contacting Lexington Technology Group, Inc., Attn.: Jennifer Buckley, 375 Park Avenue 26th Floor, New York,
NY 10152, or by e-mail at jen@lex-tg.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DSS and Lexington, and their respective
directors and certain of their executive officers, may be deemed to be participants in the solicitation of proxies in respect of
the transactions contemplated by the agreement between DSS, Merger Sub and Lexington. Information regarding DSS&rsquo;s directors
and executive officers is contained in DSS&rsquo;s Definitive Proxy Statement on Schedule 14A prepared in connection with its 2012
Annual Meeting of Stockholders, which was filed with the SEC on April 18, 2012. Information regarding Lexington&rsquo;s directors
and officers and a more complete description of the interests of DSS&rsquo;s directors and officers in the proposed transaction
will be available in the final proxy statement/prospectus that will be filed by DSS with the SEC in connection with the proposed
transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 9.01 Financial Statements and Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>(d)&#9;Exhibits</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">2.1</TD><TD>Amendment No. 2, dated as of March 15, 2013, by and among Document Security Systems, Inc., DSSIP, Inc., Lexington Technology
Group, Inc. and Hudson Bay Master Fund Ltd., as representative of Lexington&rsquo;s stockholders solely for certain purposes (as
described in the Merger Agreement).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">99.1</TD><TD>Press Release, dated March 15, 2013</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SIGNATURE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>






<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 45%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom"><B>DOCUMENT SECURITY SYSTEMS, INC.</B></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt">Dated: March 15, 2013</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt">By:</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">/s/ Phillip Jones</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><B>Phillip Jones </B></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><B><I>Chief Financial Officer</I></B></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT INDEX</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">                                                                                                                                                                                                                                                                                                                                                                                                                              <TR STYLE="vertical-align: top">
<TD><U>Exhibit No.</U>&#9;<U></U></TD><TD><U>Description</U></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 15%">2.1</TD><TD STYLE="width: 85%">Amendment No. 2, dated as of March 15, 2013, by and among Document Security Systems, Inc., DSSIP, Inc., Lexington Technology
Group, Inc. and Hudson Bay Master Fund Ltd., as representative of Lexington&rsquo;s stockholders solely for certain purposes (as
described in the Merger Agreement).</TD></TR>                                             <TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>99.1</TD><TD>Press Release, dated
March 15, 2013</TD></TR>
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<DOCUMENT>
<TYPE>EX-2.1
<SEQUENCE>2
<FILENAME>v338299_ex2-1.htm
<DESCRIPTION>EXHIBIT 2.1
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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">AMENDMENT NO. 2</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Amendment No.
2, dated as of March 15, 2013, is among Document Security Systems, Inc., a New York corporation (&ldquo;Parent&rdquo;), DSSIP,
Inc., a Delaware corporation and a wholly-owned subsidiary of Parent (&ldquo;Merger Sub&rdquo;), Lexington Technology Group, Inc.,
a Delaware corporation (the &ldquo;Company&rdquo;), and Hudson Bay Master Fund Ltd. (&ldquo;Company Representative&rdquo;) as representatives
of the stockholders of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="text-underline-style: none; color: black">1.
&#9;</FONT><U>Reference to Merger Agreement; Definitions.</U><FONT STYLE="text-underline-style: none"> Reference is made to the
Agreement and Plan of Merger dated as of October 1, 2012, by and among Parent, Merger Sub, the Company and the Company Representative
(the &ldquo;Merger Agreement&rdquo;). Terms defined in the Merger Agreement and not otherwise defined herein are used herein with
the meanings so defined.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="text-underline-style: none; color: black">2.
&#9;</FONT><U>Amendment to Section 7.1(b) of the Merger Agreement</U><FONT STYLE="text-underline-style: none">. Section 7.1(b)
of the Merger Agreement is hereby deleted in its entirety and replaced with the following: </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;(b)&#9;by either
Parent or the Company if the Merger shall not have been consummated on or before April 30, 2013; <U>provided</U>, <U>however</U>,
that the right to terminate this Agreement under this Section 7.1(b) shall not be available to a Party whose failure to fulfill
any obligation under this Agreement has been the cause of, or resulted in, the failure of the Merger to have been consummated on
or before such date;&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="text-underline-style: none; color: black">3.
&#9;</FONT><U>Miscellaneous</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Except as otherwise
set forth herein, the Merger Agreement shall remain in full force and effect without change or modification. This Amendment No.
2 may be executed in any number of counterparts, which together shall constitute one instrument, and shall bind and inure to the
benefit of the parties and their respective successors and assigns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">[SIGNATURE PAGE FOLLOWS]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the parties hereto have executed this Amendment No. 2 as of the day and year first above written.&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 5%; padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 45%; padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; padding: 0; text-indent: 0">Document Security Systems, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">By:</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0; border-bottom: Black 1pt solid">/s/ Phillip Jones </TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">Name:</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0; border-bottom: Black 1pt solid">Phillip Jones </TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">Title:</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0; border-bottom: Black 1pt solid">CFO </TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; padding: 0; text-indent: 0">DSSIP, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">By:</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0; border-bottom: Black 1pt solid">/s/ Phillip Jones </TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">Name:</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0; border-bottom: Black 1pt solid">Phillip Jones </TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">Title:</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0; border-bottom: Black 1pt solid">CFO </TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; padding: 0; text-indent: 0">Lexington Technology Group, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">By:</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0; border-bottom: Black 1pt solid">/s/ Jeffrey Ronaldi</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">Name:</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0; border-bottom: Black 1pt solid">Jeffrey Ronaldi</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">Title:</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0; border-bottom: Black 1pt solid">Chief Executive Officer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; padding: 0; text-indent: 0">COMPANY REPRESENTATIVE</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; padding: 0; text-indent: 0"><FONT STYLE="color: black">Hudson Bay Master Fund,
    Ltd.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">By:</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0; border-bottom: Black 1pt solid">/s/ Yoav Roth </TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">Name:</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0; border-bottom: Black 1pt solid">Yoav Roth</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0">Title:</TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0; border-bottom: Black 1pt solid">Authorized Signatory </TD></TR>
</TABLE>


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<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>v338299_ex99-1.htm
<DESCRIPTION>EXHIBIT 99.1
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<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Document Security Systems Provides Update
on Merger with</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Lexington Technology Group</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">ROCHESTER,
NY--March 15, 2013<B> </B>&mdash; Document Security Systems, Inc. (NYSE MKT: DSS), </FONT><FONT STYLE="font-size: 10pt; color: black">a
leading developer of anti-counterfeiting, anti-fraud and authentication </FONT><FONT STYLE="font-size: 10pt">technologies for governments,
corporations and financial institutions, </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">today announced that its
merger with Lexington Technology Group (&ldquo;LTG&rdquo;) is on pace to close in Spring 2013.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&ldquo;We remain confident that the SEC
will complete its review process of our Registration Statement on Form S-4 in connection with our proposed merger with Lexington
Technology Group&rdquo;, stated Document Security Systems Chief Executive Officer Robert Bzdick. &ldquo;Upon shareholder approval,
we look forward to leveraging the strengths and expertise of DSS and LTG to improve execution, drive synergies, and grow the new
business with a focus on increasing overall shareholder value.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The strategic combination with LTG will
enable DSS to substantially increase its intellectual property portfolio, add significant talent with a proven record in technological
innovation, and be positioned to enhance its revenue through the monetization of the combined company's intellectual property assets.
Since announcing the merger in October 2012, both companies have actively been preparing for the anticipated merger to be consummated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The original merger agreement between DSS
and LTG was set to expire on March 15, 2013. The companies have agreed to extend the expiration for the merger set forth in their
merger agreement Promptly following the completion of the SEC&rsquo;s review of DSS&rsquo;s Registration on Form S-4, DSS will
mail the definitive proxy statement/prospectus to its shareholders in connection with a special meeting of its stockholders to
consider the proposed merger and the other proposals described in the definitive proxy statement/prospectus. While the exact SEC
timing is unknown, an extended comment period is not uncommon. The companies continue to expect the transaction to close by the
end of the second quarter of 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">###</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>About DSS (Document Security Systems, Inc.)</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Document Security Systems (NYSE MKT:DSS) develops and
provides patented anti-counterfeiting, anti-fraud, authentication and brand protection technologies that are employed by
governments, leading corporations and financial institutions worldwide. DSS works closely with clients, including Fortune 500
companies, to design proprietary technology solutions that deter unauthorized scanning and copying, and facilitate
authentication of printed documents and packaging.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt">DSS helps to reduce fraud
in drug prescription redemptions and health insurance documents. The company deters counterfeiting of valuable documents, coupons
and packaging, including those associated with credit and identity cards. DSS&rsquo; technology is specified by a United States
government agency for identity documents. DSS product solutions are protected under United States and foreign patent law and under
trade secrets. For more information please visit www.DSSsecure.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Follow DSS on Facebook, click HERE.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For more information:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Investor Relations</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Blueshirt Group, Managing Director</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Peter Salkowski</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(415) 489-2184</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Email: ir@documentsecurity.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>About Lexington Technology Group</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt">Lexington Technology
Group, Inc. is an intellectual property management firm that invests business experience, legal expertise and capital to monetize
pioneering inventions. LTG's goal is to identify and capitalize on opportunities for return, while rewarding highly qualified innovators.
The firm typically engages with companies that have identified important innovations but that may lack the experience, relationships
or capital to succeed on their own, and have not been fairly rewarded in the marketplace. LTG's initiatives contribute to an intellectual
property market that enables innovators to benefit from their discoveries and investors to profit from prudent risk. LTG's management
team is comprised of experienced patent managers and strategists that have collectively generated over $1 billion licenses, settlements
and damages awards to date.&nbsp;<FONT STYLE="text-underline-style: none; color: windowtext">www.lex-tg.com</FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Important Additional Information Will Be Filed with the SEC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities of DSS, or Lexington or the solicitation of any vote or approval. In connection
with the proposed transaction, DSS has filed with the SEC a Registration Statement on Form S-4 containing a preliminary proxy statement/prospectus.
The preliminary proxy statement/prospectus contains important information about DSS, Merger Sub, Lexington, the transaction contemplated
by the Merger Agreement and related matters. DSS will mail or otherwise deliver the proxy statement/prospectus to its stockholders
once it is final. Prospective investors and security holders of DSS and Lexington are urged to read carefully the proxy statement/prospectus
relating to the Merger (including any amendments or supplements thereto) in its entirety when it is available, because it will
contain important information about the proposed transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Prospective investors and security holders of DSS will be able
to obtain free copies of the proxy statement/prospectus for the proposed Merger (when it is available) and other documents filed
with the SEC by DSS through the website maintained by the SEC at www.sec.gov. In addition, Prospective investors and security holders
of DSS and Lexington will be able to obtain free copies of the proxy statement/prospectus for the proposed Merger (when it is available)
by contacting Document Security Systems, Inc., Attn.: Philip Jones, Chief Financial Officer, at First Federal Plaza, 28 East Main
Street, Suite 1525, Rochester, New York 14614, or by e-mail at ir@dsssecure.com. Prospective investors and security holders of
Lexington will also be able to obtain free copies of the proxy statement/prospectus for the Merger (when it is available) by contacting
Lexington Technology Group, Inc., Attn.: Jennifer Buckley, 375 Park Avenue 26th Floor, New York, NY 10152, or by e-mail at jen@lex-tg.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">DSS and Lexington, and their respective
directors and certain of their executive officers, may be deemed to be participants in the solicitation of proxies in respect of
the transactions contemplated by the agreement between DSS, Merger Sub and Lexington. Information regarding DSS&rsquo;s directors
and executive officers is contained in DSS&rsquo;s Definitive Proxy Statement on Schedule 14A prepared in connection with its 2012
Annual Meeting of Stockholders, which was filed with the SEC on April 18, 2012. Information regarding Lexington&rsquo;s directors
and officers and a more complete description of the interests of DSS&rsquo;s directors and officers in the proposed transaction
will be available in the final proxy statement/prospectus that will be filed by DSS with the SEC in connection with the proposed
transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Cautionary Note Regarding Forward-Looking
Statements </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Statements in this press release regarding
the proposed transaction between DSS and Lexington Technology Group; the expected timetable for completing the transaction; the
potential value created by the proposed Merger for DSS's and Lexington Technology Group's stockholders; the potential of the combined
companies' technology platform; the companies&rsquo; respective or combined ability to raise capital to fund our combined operations
and business plan; the continued listing of DSS's or the combined company's securities on the NYSE MKT; market acceptance of DSS
products and services; the companies&rsquo; collective ability to maintain or protect their intellectual property rights through
litigation or otherwise; Lexington Technology Group's limited operating history, competition from other industry competitors with
greater market presence and financial resources than those of DSS's; the Company&rsquo;s ability to license and monetize the patents
owned by Lexington Technology Group; potential new legislation or regulation related to enforcing patents; the complexity and costly
nature of acquiring patent or other intellectual property assets; the combined company's management and board of directors; and
any other statements about DSS' or Lexington Technology Group's management teams' future expectations, beliefs, goals, plans or
prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any
statements that are not statements of historical fact (including statements containing the words &quot;believes,&quot; &quot;plans,&quot;
&quot;could,&quot; &quot;anticipates,&quot; &quot;expects,&quot; &quot;estimates,&quot; &quot;plans,&quot; &quot;should,&quot;
&quot;target,&quot; &quot;will,&quot; &quot;would&quot; and similar expressions) should also be considered to be forward-looking
statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated
by such forward-looking statements, including: the risk that DSS and Lexington Technology Group may not be able to complete the
proposed transaction; the inability to realize the potential value created by the proposed Merger for DSS's and Lexington Technology
Group's stockholders; our respective or combined inability to raise capital to fund our combined operations and business plan;
DSS's or the combined company's inability to maintain the listing of our securities on the NYSE MKT; the potential lack of market
acceptance of DSS's products and services; our collective inability to protect our intellectual property rights through litigation
or otherwise; competition from other industry competitors with greater market presence and financial resources than those of DSS's;
our inability to license and monetize the patents owned by Lexington Technology Group; and other risks and uncertainties more fully
described in DSS's Annual Report on Form 10-K for the year ended December 31, 2012 as well as the other filings that DSS makes
with the SEC. Investors and stockholders are also urged to read the risk factors set forth in the proxy statement/prospectus carefully
when they are available.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">In addition, the statements in this
press release reflect the Company&rsquo;s expectations and beliefs as of the date of this release. Subsequent events and developments
will cause these expectations and beliefs to change. However, while the Company may elect to update these forward-looking statements
publicly at some point in the future, it specifically disclaims any obligation to do so, whether as a result of new information,
future events or otherwise. These forward-looking statements should not be relied upon as representing the Company&rsquo;s views
as of any date after the date of this release.</P>

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