DOCUMENT SECURITY SYSTEMS INC : Other Events, Financial Statements and Exhibits (form 8-K)

Item 8.01 Other Events.

On January 6, 2021, Document Security Systems, Inc. (the "Company"), Alset International Limited ("Alset Singapore"), a company formed under the laws of Singapore, Health Wealth Happiness Pte. Ltd. ("HWH"), a Singaporean company and wholly-owned subsidiary of Alset Singapore, and HWH World Inc. ("HWH World"), a company registered and formed under the laws of South Korea and wholly-owned subsidiary of HWH, entered into a binding term sheet (the "Term Sheet"), pursuant to which, subject to the due diligence on HWH World, necessary approvals and consents, and the terms and conditions to be set forth in the Definitive Agreement (as defined below), the Company will acquire and purchase all of the outstanding equity interest in HWH World (the "Transaction") for a consideration of the lesser of $14.8 million or the value of HWH World assessed by a third-party valuation company (the "Purchase Price"). The Term Sheet provided that the Company shall have the option to pay the Purchase Price in i) cash, or ii) shares of the Company's common stock (the "Common Stock") at the per share price equivalent to the average closing price of the Common Stock for a period of five (5) trading days prior to January 6, 2021. In accordance with the Term Sheet, the parties thereto (the "Parties") shall enter into a definitive share exchange agreement (the "Definitive Agreement") for the Transaction within three (3) months from the date of the Term Sheet or at a later date as mutually agreed by the Parties in writing and complete the Transaction within six (6) months therefrom or at a later date as mutually agreed by the Parties in writing. The Term Sheet is legally binding and shall terminate upon the earlier of 1) six months from January 6, 2021, 2) mutual agreement by all the Parties on the termination, or 3) the execution of the Definitive Agreement for the Transaction.

The foregoing description of the Term Sheet does not purport to be complete and is qualified in its entirety by reference to the complete text of the Term Sheet, a copy of which is filed as an exhibit to this report.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.



Exhibit
Number    Exhibit

99.1        Term Sheet by and among Document Security Systems, Inc., Alset
          International Limited, Health Wealth Happiness Pte. Ltd., and HWH World
          Inc. dated January 6, 2021.




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