DOCUMENT SECURITY SYSTEMS, INC. (NYSEAMERICAN: DSS) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement
On December 7, 2018, Premier Packaging Corporation (“PPC”), a wholly-owned subsidiary of Document Security Systems, Inc. (the “Company”), entered into a Purchase Agreement (the “Equipment Purchase Agreement”) with Bobst North America Inc. (“BOBST”), located in Roseland, New Jersey, to purchase an EXPERTFOLD 110-A Universal Folder-Gluer (the “Equipment”) for a purchase price of $849,000 (the “Equipment Purchase Price”). The Equipment Purchase Price will be paid by accessing funds available under an existing and previously reported Citizens Bank (“Citizens”) Equipment Line of Credit to which Citizens has agreed to lend up to $1,200,000 for the purpose of enabling the purchase of commercial equipment by PPC. Under the Equipment Purchase Agreement, 40% of the Equipment Purchase Price is due upon execution of the Equipment Purchase Agreement. A second payment of 50% of the Equipment Purchase Price is due upon PPC’s receipt of BOBST’s invoice confirming the shipping date for the Equipment. The last installment equal to 10% of the Equipment Purchase Price is due on the date that BOBST completes the installation and demonstrates that the Equipment is capable of producing commercially saleable product. The Agreement contains customary default provisions, acceleration clauses and remedies for non-payment breach by PPC, which remedies include the right to enter PPC’s premises and take possession of the Equipment and resell the same at auction to recoup any unpaid portion of the Equipment Purchase Price.
The Equipment Purchase Agreement is filed as Exhibit 10.1 to this report. The foregoing summary description of the terms of the Agreement is qualified in its entirety by reference to the full text of such exhibit.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
DOCUMENT SECURITY SYSTEMS INC ExhibitEX-10.1 2 ex10-1.htm Premier Packaging Corp. Victor,…To view the full exhibit click here
