<PAGE>

                                                                   Exhibit 10.27

                       Separation Agreement and Release

This Separation Agreement and Release entered into as of the 1st day of
February, 2001 (the "Effective Date"), is made by and between eBT International,
Inc. (formerly Inso Corporation) ("the Company") and Jonathan Levitt ("the
Executive"), and constitutes the parties' agreement with respect to the
termination of the Executive's employment.

1.    The Executive voluntarily resigns as an officer of the Company and as an
      officer and director of all of the Company's subsidiaries effective
      February 1, 2001 and as an employee with the Company (apart from holding
      an office as aforesaid) on February 9, 2001 (the "Termination Date").
      Executive shall execute and return to the Company the resignation letter
      attached hereto as Exhibit A.
                         ----------

2.    On the Effective Date, the Executive shall be paid a lump sum severance
      payment of $228,000, subject to all applicable federal and state income,
      payroll, and other applicable tax withholding.

3.    Pursuant to the Company's policy, for the months of February and March
      2001, Executive and his family shall be entitled to continue his or their
      participation in the Company's medical, dental, and vision care benefit
      plans to the same extent, and under the same conditions, that he may be a
      participant in such plans on the Resignation Date regardless of the
      intervening death of Executive; provided however, such participation shall
      cease on March 31, 2001.

4.    After March 31, 2001, Executive shall be eligible to continue medical,
      dental, and vision care benefits under the provisions of COBRA, and he
      will be notified of his COBRA rights at that time.

5.    During February and March 2001, Executive's participation in Company
      benefit plans, programs, and arrangements not enumerated in paragraph 3
      above shall be as described in Attachment A: "Executive Separation
                                     ------------
      Agreement, Summary of Benefits Continuation." Executive's entitlement to
      and eligibility for further vacation, sick leave and other paid time off
      shall cease on the Effective Date. The Executive and the Company agree
      that the severance payment described in Section 2 above includes all
      earned but unused vacation time accrued by the Executive as of the
      Termination Date.

6.    Previously granted, but unexercised stock options held by Executive for
      the purchase of stock of the Company shall be exercisable pursuant to the
      terms of the Company's stock option plans, for a period of 90 days after
      the Termination Date or 180 days following the death of Executive, as the
      case may be. All previously granted, but unexercised stock options and
      restricted shares held by the Executive shall cease to vest on the
      Termination Date.

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<PAGE>

7.    Executive shall be entitled to an incentive compensation payment of
      $16,875. This will be paid on the Effective Date.

8.    Anything contained in paragraphs 14 and 15 notwithstanding, the Company
      and Executive shall continue to be bound by the Non-Disclosure Agreement
      executed by Executive on or about July 15, 1997, which Agreement is
      incorporated herein by reference.

9.    The Company shall pay $10,000 to the Executive in lieu of retaining a firm
      to provide Executive Outplacement assistance, payable on the Effective
      Date.

10.   For a period of 18 months following the Termination Date, the Executive
      will not attempt to hire or hire, or attempt to solicit or solicit, any
      employee of the Company, or assist in such hiring by anyone else, to work
      as an employee or independent contractor, with, or otherwise provide
      services to, any business directly competitive with the Company's
      business. Notwithstanding the foregoing, the Executive will not be
      considered to be in violation of this Agreement if he complies with a
      request to provide a written or oral reference for someone seeking
      employment where this conduct would otherwise be considered to violate the
      provisions of this paragraph.

11.   Executive agrees and understands that if he is to breach any Provision of
      Paragraph 10 of this Agreement, in addition to all other remedies
      available to the Company in law and in equity, the Company shall be
      entitled to: (a) discontinue any of its obligations under this Agreement;
      and (b) obtain a Court Order enforcing the provisions(s) which Executive
      has breached.

12.   From and after the date of this Agreement, the Executive shall continue to
      be entitled to indemnification as an "Officer" of the Company in
      accordance with Article V of the Company's By-laws as in effect as of the
      date of this Agreement notwithstanding any subsequent amendment to such
      By-laws. The term "Officer" shall have the meaning set forth in Article V
      of the Company's By-laws.

13.   Executive agrees to return to the Company prior to the Termination Date,
      all Company property including, but not limited to, vendor, supplier, and
      any other business or mailing lists, reports, files, memoranda, records
      and software, credit cards, desk or file keys, computer access codes or
      disks, and Company manuals. Executive further agrees that he will not
      retain any copies, duplicates, reproductions or excerpts of such property;
      except that Executive shall retain an electronic copy of the Company's
      legal files for purposes of providing reasonable assistance to the Company
      following the Termination Date. Notwithstanding the preceding, Executive
      shall not be required to return to the Company the laptop computer and
      peripherals purchased by the Company for his use.


                                       2
<PAGE>

14.   Executive acknowledges that, if required to do so under applicable law,
      the Company will include a copy of this Agreement as an exhibit to its
      Form 10-Q for the applicable fiscal quarter. Until such time as the
      Company includes a copy of this Agreement as an exhibit to its Form 10-Q,
      the Executive and Company represent and agree that they and their agents
      and representatives shall keep completely and strictly confidential the
      terms of this Agreement, except as required by law. Even after a copy of
      this Agreement is included as an exhibit to the Company's Form 10-Q, the
      parties agree to keep completely and strictly confidential any settlement
      negotiations that occurred in connection with this Agreement.

15.   Executive for himself and on behalf of his heirs, executors,
      administrators and assigns, hereby remises, releases and fully discharges
      the Company and, to the extent applicable, its present, former, and future
      parent companies, subsidiaries and affiliates, and the officers,
      directors, attorneys, employees, agents, successors and assigns of each of
      them ("the Released Parties") of and from any and all claims, rights and
      causes of action of all nature known, unknown, past, present, now
      foreseeable or unforeseeable, which he has or may hereafter have, in any
      way arising out of, connected with or related to Executive's employment
      with any of the Released Parties, the termination thereof or based upon
      information made known to Executive during employment with any of the
      Released Parties. This Release shall include, but not be limited to, any
      claims, damages, rights and causes of action for wrongful discharge,
      breach of contract, discrimination or retaliation under any federal, state
      or local laws, rules, orders or regulations, including but not limited to
      Title VII of the Civil Rights Act of 1964, 42 U.S.C.(S). 2000e et seq.,
                                                                     ------
      the Age Discrimination in Employment Act, 29 U.S.C.(S).621 et seq., the
                                                                 ------
      Family and Medical Leave Act, 29 U.S.C.(S).2601 et seq., the Employee
                                                      ------
      Retirement Income Security Act, 29 U.S.C.(S).301 et seq., the
                                                       ------
      Massachusetts Civil Rights Act, M.G.L. c. 12(S).11H and 11I, the
      Massachusetts Fair Employment Practices Act, M.G.L.c. 151B,(S).1 et seq.,
                                                                       ------
      the Americans with Disabilities Act, 29 U.S.C.(S).12101 et seq., and the
                                                              ------
      Massachusetts Equal Rights Act, M.G.L. c. 93,(S).102. This Release shall
      also include, but not be limited to, all claims, rights and causes of
      action for costs, attorney's fees, bounties, or percentage of awards or
      settlements which Executive may assert against or which may be asserted
      against the Company by others on Executive's behalf, or against any of the
      Released Parties. Executive and the Company intend and agree that this
      Release is to be a broad Release to apply to any relief or cause of
      action, no matter what it is called, and shall include, but not be limited
      to, claims, rights or causes of action for wages, benefits, bonuses,
      fines, back pay, share of awards, compensatory damages, and punitive
      damages; however, nothing in this Release shall be construed to bar claims
      for alleged breaches of this Agreement.


16.   The Company, on its behalf, and to the extent applicable, on behalf of its
      present, former and future parent companies, subsidiaries and affiliates,
      and officers, directors, agents, successors and assigns of each of them
      hereby remises, releases, and fully discharges Executive of and from all
      claims, demands, causes of action, damages and expenses, of any and every
      nature whatsoever, known or unknown by the Company, past or present as a
      result

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<PAGE>

      of actions, omissions or events occurring through the date of this
      Agreement in connection with his employment with the Company; however,
      nothing in this Release shall be construed to bar claims for alleged
      breaches of this Agreement.

17.   Executive will not disparage or discuss the Company or its agents,
      officers, servants or employees in a derogatory manner. Executive will at
      all times state, if asked, that the Company was and is a reputable company
      during his employment with the Company and that he was proud to have been
      associated with it. The Company's senior executives will not disparage or
      discuss the Executive in a derogatory manner and will at all times state
      if asked, that the Executive conducted himself honorably and with
      distinction and is a reputable person.

18.   The Executive herein represents that he has not filed any complaints,
      charges or claims for release against the Released Parties with any local,
      state, or federal court or administrative agency which currently are
      outstanding.

19.   The payment by the Company of the consideration referred to herein is not,
      and shall not be deemed, an admission of responsibility or liability by
      any of the Released Parties.

20.   The Executive acknowledges that he has been given twenty-one (21) days to
      consider this Agreement and has been advised to consult with an attorney
      before signing.

21.   Executive acknowledges that:

            .     He was advised to consult with an attorney to review this
                  Agreement prior to signing it, and was given a chance to
                  refuse to sign this Agreement.

            .     He has read and understands this Agreement and understands
                  fully its final and binding effect.

            .     None of the Released Parties had made any statements, promises
                  or representations not set forth in this Agreement, and
                  Executive has not relied on any such statements, promises or
                  representations.

            .     He has voluntarily signed this Agreement with the knowledge
                  and understanding and full intention of releasing the Released
                  Parties as set forth above.

22.   This Agreement is binding upon and shall inure to the benefits of the
      parties hereto and their respective assigns, successors, heirs and
      personal representatives; provided however that the Executive may not
                                ----------------
      assign any rights or duties he may have hereunder without prior written
      consent of the Company.

23.   If any provision of this Agreement is judicially determined to be invalid
      or unenforceable as written, then such provision shall, if possible, be
      modified and reformed to the degree necessary to render it valid and
      enforceable. Any such invalidity or unenforceability of any provision
      shall have no effect on the remainder of this Agreement which shall remain
      in full


                                       4
<PAGE>

      force and effect.

24.   This Agreement is to be governed and will be construed under and in
      accordance with the laws of the Commonwealth of Massachusetts.


                                       5
<PAGE>

25.   This Agreement, together with the document incorporated herein by
      reference, constitutes the entire agreement between the parties hereto and
      supersedes all prior and contemporaneous negotiations, representations,
      understandings and agreements, whether written or oral.


IN WITNESS WHEREOF, the Company and Executive have entered into this Agreement
on the date first above written.

  eBT International, Inc.                             The Executive


  By:_______________________                        _______________________
                                                    Jonathan Levitt



                                       6
<PAGE>

                                                                       Exhibit A
                                                                       ---------


Entered into as of the 1st day of February, 2001


eBT International, Inc.
299 Promenade Street
Providence, RI 02908


Attention:          Stephen O. Jaeger
                    Chairman of the Board of Directors of eBT International,
Inc.

Dear Steve:

Effective February 1, 2001, I hereby resign my position as Vice President,
General Counsel and Secretary of eBT International, Inc., and resign from any
position I hold as an officer or director of any subsidiaries and affiliates of
eBT International, Inc., pursuant to the Separation Agreement and Release
entered into as of the 1st day of February, 2001.


Sincerely,




Jonathan Levitt


                                       7
<PAGE>

                                                                    ATTACHMENT A
                                                                    ------------

        Executive Separation Agreement, Summary of Benefits Continuation

<TABLE>
<CAPTION>

---------------------------------------------------------------------------------------------------------------------------
                                         Period of Interim Employment                   Termination of Employment
                                         ----------------------------                   -------------------------

---------------------------------------------------------------------------------------------------------------------------
<S>                              <C>                                                <C>
                                 Begins upon resignation as officer of              Begins at end of period of interim
                                 Company.  Ends at termination of employment.       employment.
---------------------------------------------------------------------------------------------------------------------------
Medical, Dental and Vision
Care                             Coverage in effect upon resignation may            Coverage continues for 31 days
                                 be continued at employee discretion for            following termination of employment.
                                 executive and covered family members.

                                 Employee shares cost on same basis as active       Employee may continue health coverage
                                 employees through payroll deduction.               under provisions of COBRA by paying the
                                                                                    applicable premium.

---------------------------------------------------------------------------------------------------------------------------
Basic Life                       Basic life insurance coverage continues at         Coverage continues for 31 days following
                                 level in effect upon resignation.                  termination of employment.

                                 Company pays entire cost of coverage.              Employee may convert all or part of insurance to
                                                                                    non-group coverage by applying to the insurance
                                                                                    company and paying the applicable premium.

---------------------------------------------------------------------------------------------------------------------------
Optional Life                   Coverage in effect upon resignation may be          Coverage continues for 31 days following
(Employee/Spouse/Child)         continued at discretion of employee.                termination of employment.

                                Employee pays entire cost of coverage               Employee may convert all or part of
                                through payroll deduction.                          insurance to non-group coverage by
                                                                                    applying to the insurance company and
                                                                                    paying the applicable premium.

---------------------------------------------------------------------------------------------------------------------------
Long Term Disability            Coverage in effect upon resignation may be          Coverage continues for 31 days following
                                continued at discretion of employee                 termination of employment.

                                 Employee pays any applicable share of the
                                 cost on the same basis as active employees
                                 through payroll deduction.


---------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       8
<PAGE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
<S>                              <C>                                               <C>
Personal Accident                Coverage in effect upon resignation may           Coverage continues for 31 days following
                                 be continued at discretion of employee            termination of employment.

                                 Employee pays entire cost of coverage             Employee may convert all or part of
                                 through payroll deduction.                        insurance to non-group coverage by
                                                                                   applying to the insurance company and
                                                                                   paying the applicable premium.

---------------------------------------------------------------------------------------------------------------------------
Health Care Account              Participation in effect upon resignation may      Participation ends at termination of
                                 be continued at discretion of employee.           employment.

                                 Employee may continue to request                  Employee may continue to request
                                 reimbursement for eligible expenses incurred      reimbursement for eligible expenses
                                 during period of participation.                   incurred prior to the termination date.

                                 Employee continues to make contributions on       Employee may continue participation under
                                 same basis as active employees through            provisions of COBRA by making after-tax
                                 payroll deduction.                                contributions to the plan.

---------------------------------------------------------------------------------------------------------------------------
Dependent Care Account           Participation ends at resignation.                NA

                                 No further contributions will be deducted from
                                 pay.

                                 Employee may continue to be reimbursed for
                                 eligible expenses incurred prior to resignation
                                 date.
---------------------------------------------------------------------------------------------------------------------------
401(k)                           Participation in effect upon resignation may      Participation ends at termination of
                                 be continued at discretion of employee.           employment.

                                 Employee continues to make contributions on       Employee's distribution options depend on
                                 same basis as active employees through            the amount of funds on account at
                                 payroll deduction, and Company match              termination.
                                 continues per plan provisions.
---------------------------------------------------------------------------------------------------------------------------
Employee Stock Purchase Plan     Participation ends at resignation.                NA

                                 No further contributions will be deducted from
                                 pay.

                                 Accumulated funds held in the program will
                                 be refunded in the next available pay
                                 period.


---------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       9
<PAGE>

<TABLE>
<CAPTION>

---------------------------------------------------------------------------------------------------------------------------
<S>                              <C>                                           <C>
Employee Assistance Program      You may continue to access the services of    You may continue to access for 60 days
                                 Sobel & Raciti Associates, Inc. during your   following your termination, the services
                                 period of interim employment.                 of Sobel & Raciti Associates, Inc.
---------------------------------------------------------------------------------------------------------------------------
</TABLE>

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