Document:

Form of Amendment Agreement

 Exhibit 10.3 
 OMNIBUS AMENDMENT AGREEMENT 
 This OMNIBUS AMENDMENT AGREEMENT (this
“Amendment”), dated as of September 24, 2012, is entered into by and among AUTHENTIDATE HOLDING CORP., a Delaware corporation (the “Company”) and each of the holders of the Prior Notes (as such term is defined
below) listed on the signature pages hereto. 
 WHEREAS, the Company has issued $4,050,000 in aggregate principal amount of
Senior Secured Notes due January 2013 (the “Prior Notes”), pursuant to that certain Securities Purchase Agreement, dated as of March 9, 2012, among the Company and the initial holders of such Prior Notes (the “Purchase
Agreement”). The terms of such Prior Notes are set forth in the form of Senior Secured Note attached to the Purchase Agreement; 
 WHEREAS, the Company’s obligations under the Prior Notes are secured by liens on substantially all of its assets pursuant to that certain Security Agreement, dated as of March 9, 2012, between
the Company and the holders of the Prior Notes, and as subsequently amended on March 28, 2012 (the “Security Agreement”); 
 WHEREAS, the Company now wishes to issue up to $3,500,000 (the “New Financing”) in new secured notes due October 31, 2013 (the “New Notes”) to purchasers, which may
include holders of the Prior Notes (such purchasers of the New Notes may be referred to herein as the “Purchasers”), and the Purchasers have agreed to provide the New Financing; 

WHEREAS, it is a condition of the New Financing that the Company enter into a security agreement with the Purchasers of the New Notes on
terms and conditions substantially similar in all material respects with the Security Agreement (the “New Security Agreement”); and 
 WHEREAS, the Company desires to amend and modify the terms of the Prior Notes and the Security Agreement to permit the New Financing, and the undersigned holders of the Prior Notes (the
“Holders”) consisting, collectively, of at least a Majority in Interest (as defined in the Prior Notes) have agreed to such amendments, modifications and intercreditor provisions set forth herein. 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows: 
 SECTION 1. Definitions. As used herein, terms that are defined herein shall have the meanings
as so defined, and terms not so defined shall have the meanings as set forth in the Prior Notes and the Security Agreement, as applicable. 
 SECTION 2. Amendments to the Prior Notes. Each of the Prior Notes shall be amended as follows: 
 (A) Section 2(a) of each of the Prior Notes is hereby amended to modify the definition of the term “Maturity Date” such that from and after the Effective Date, the term
“Maturity Date” shall mean October 31, 2013. 
 (B) Sections 3(a) and 3(b) of each of the Prior Notes
are hereby amended and restated in their entirety as follows: 
 (a) Seniority of Note. This Note shall rank (i) on
parity with the New Notes with respect to the right of repayment and claim under the security interest in and to any or all of the Collateral and (ii) senior to any and all other Indebtedness, as defined below, of the Company, unless the
Company receives the prior written consent of the Holders of a 

  
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Majority in Interest, to otherwise incur Indebtedness senior to or on parity with this Note. This Note is issued subject to the provisions of this Section 3 and each person taking or
holding this Note, accepts and agrees to be bound by these provisions. 
 (b) New Notes. The Holder hereby confirms that
regardless of the relative times of attachment or perfection thereof, and regardless of anything in any Transaction Agreements to the contrary, any security interests or liens granted from time to time to the New Notes in all or any part of the
Collateral as security for the New Notes, shall in all respects be pari passu security interests and liens, on parity with any security interests or liens at any time granted to the Holders of the Notes in such Collateral as security for the
obligations evidenced by the Notes. The priorities specified herein are applicable irrespective of the time, order or method of attachment or perfection of security interests or the time or order of filing of financing statements. Each Holder agrees
not to seek to challenge, to avoid, to subordinate or to contest or directly or indirectly to support any other Person in challenging, avoiding, subordinating or contesting in any judicial or other proceeding, including, without limitation, any
proceeding involving the Company, the priority, validity, extent, perfection or enforceability of any lien held by the holders of the New Notes in all or any part of the Collateral. 

(C) The first paragraph of Section 6(b) of each of the Prior Notes is hereby amended and restated in its entirety as follows:

 (b) Acceleration of Payment. If an Event of Default (other than an Event of Default specified in Section 6(a)(4)
or 6(a)(5) hereof with respect to the Company) occurs and is continuing, the Holders of at least a Majority in Interest of the Notes, by written notice to the Company, may declare due and payable the principal of this Note and all other outstanding
Notes in compliance with the terms and conditions of the Security Agreement. Upon a declaration of acceleration, such principal shall be immediately due and payable. If an Event of Default specified in Section 6(a)(4) or 6(a)(5) occurs with
respect to the Company, the principal of this Note shall become and be immediately due and payable, without any declaration or other act on the part of the Holder. 
 (D) Sections 6(c) and 6(d) of each of the Prior Notes are hereby amended and restated in their entirety as follows: 
 (c) Collections. If an Event of Default with respect to this Note occurs and is continuing, the Holder may pursue any available remedy by proceeding at law or in equity to collect the Defaulted
Payment or to enforce the performance of any provision of this Note in compliance with the terms and conditions of the Security Agreement. 
 (d) Right to Receive Payment Upon Default. Notwithstanding any other provision in this Note, the Holder of this Note shall have the right, which is absolute and unconditional, to receive payment of
the principal in respect of the Notes held by the Holder, on or after the final Maturity Date, or in compliance with the terms and conditions of the Security Agreement, to bring suit for the enforcement of any such payment on or after such date, and
such rights shall not be impaired or affected adversely without the consent of the Holder. 
 (E) The definition of
“Next Financing” in Section 8 of each of the Prior Notes is hereby amended and restated in its entirety as follows: 
 “Next Financing” shall mean the closing of a sale of equity or convertible debt securities by the Company or any Subsidiary, or series of closings, as part of the same transaction, of
equity or convertible debt securities within a period of three months, in the gross amount of at least $11,000,000. 

  
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 (F) The definition of “Permitted Indebtedness” in Section 8 of each of the
Prior Notes is hereby amended and restated in its entirety as follows: 
 “Permitted Indebtedness” means
(A) Indebtedness incurred by the Company that is made expressly subordinate in right of payment to the Indebtedness evidenced by this Note, which Indebtedness does not provide at any time for the payment, prepayment, repayment, repurchase or
defeasance, directly or indirectly, of any principal or premium, if any, thereon until after the Maturity Date; (B) Indebtedness secured by Permitted Liens, including without limitation Indebtedness incurred in connection with arrangements
contemplated by clauses (v) through (vii) of the definition of the term “Permitted Liens”; (C) Indebtedness to trade creditors or for professional services incurred in the ordinary course of business; (D) extensions,
refinancings and renewals of any items of Permitted Indebtedness described above, provided that the principal amount is not increased or the terms modified to impose more burdensome terms upon the Company or its Subsidiaries, as the case may be;
(E) Indebtedness outstanding immediately prior to the execution of this Agreement; and (F) the New Notes. Permitted Indebtedness shall include, without limitation, (i) the principal amount of such Indebtedness, (ii) unpaid
accrued interest thereon, and (iii) subject to clause (D) of this definition, all other obligations of the Company arising out of the Permitted Indebtedness now existing or hereafter arising, together with all costs of collecting such
obligations (including attorneys’ fees), including, without limitation, all interest accruing after the commencement by or against the Company of any bankruptcy, reorganization or similar proceeding. 

SECTION 3. Acknowledgement and Consent. Pursuant to the Section 5(g) of the Prior Notes, the Holders hereby
acknowledge and consent (i) to the sale and issuance by the Company of the New Notes; (ii) to the Company entering into, executing and delivering the New Notes and the New Security Agreement; and (iii) that pursuant to the New
Security Agreement, the Company has granted the Purchasers of the New Notes a security interest in the Collateral (as defined in the New Security Agreement). In addition, the Holders further acknowledge and agree in all respects that the Security
Interest and Liens granted to them in the Collateral is in all respects pari passu with the Security Interests and Liens granted to the holders of the New Notes. 
 SECTION 4. Amendments to the Security Agreement. In order to ensure that the Security Agreement is consistent with the terms and conditions of the New Security Agreement, the Security
Agreement shall be amended as follows: 
 (A) The definition of Permitted Indebtedness in Section 1(g) of the Security
Agreement is hereby amended and restated in its entirety as follows: 
 “Permitted Indebtedness” means
(A) Indebtedness incurred by the Company that is made expressly subordinate in right of payment to the Indebtedness evidenced by the Notes, which Indebtedness does not provide at any time for the payment, prepayment, repayment, repurchase or
defeasance, directly or indirectly, of any principal or premium, if any, thereon until after the maturity date of the Notes; (B) Indebtedness secured by Permitted Liens, including without limitation Indebtedness incurred in connection with
arrangements contemplated by clauses (v) through (vii) of the definition of the term “Permitted Liens”; (C) Indebtedness to trade creditors or for professional services incurred in the ordinary course of business;
(D) extensions, refinancings and renewals of any items of Permitted Indebtedness described above, provided that the principal amount 

  
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is not increased or the terms modified to impose more burdensome terms upon the Company or its Subsidiaries, as the case may be; (E) Indebtedness outstanding immediately prior to the
execution of this Agreement; and (F) the New Notes. Permitted Indebtedness shall include, without limitation, (i) the principal amount of such Indebtedness, (ii) unpaid accrued interest thereon, and (iii) subject to clause
(D) of this definition, all other obligations of the Company arising out of the Permitted Indebtedness now existing or hereafter arising, together with all costs of collecting such obligations (including attorneys’ fees), including,
without limitation, all interest accruing after the commencement by or against the Company of any bankruptcy, reorganization or similar proceeding. 
 (B) Sections 7.1(b) and (c) of the Security Agreement are hereby amended and restated in their entirety as follows: 
 (b) Priority of Liens. The Secured Parties and Representative hereby confirm that regardless of the relative times of attachment or perfection thereof, and regardless of anything in any
Transaction Document to the contrary, (A) any Senior Permitted Liens granted by the Company in all or any part of the Collateral shall in all respects be first and senior security interests and Liens, superior to any security interests or Liens
at any time granted to the Secured Parties in such Collateral; (B) the Liens granted to the holders of the New Notes in the Collateral shall in all respects be pari passu security interests and Liens in the Collateral with the Notes; and
(C) as between all Secured Parties, the security interests granted to the Secured Parties hereunder are in all respects pari passu security interests and Liens in the Collateral. The priorities specified herein are applicable
irrespective of the time, order or method of attachment or perfection of security interests or the time or order of filing of financing statements. The Secured Parties agree not to seek to challenge, to avoid, to subordinate or to contest or
directly or indirectly to support any other Person in challenging, avoiding, subordinating or contesting in any judicial or other proceeding, including, without limitation, any proceeding involving the Company, the priority, validity, extent,
perfection or enforceability of any Senior Permitted Liens or the Liens granted to the holders of the New Notes in all or any part of the Collateral. The Secured Parties further covenant and agree that they shall not, and they shall not instruct,
authorize or otherwise permit or consent to allowing the Security Agent to, take any action that is in violation of, or inconsistent with, the provisions of Section 7. 
 (c) Release of Collateral. If, in connection with the exercise by any of the holders of Senior Permitted Liens of their rights and remedies in respect of the Collateral, such holders release
any of its or their Senior Permitted Liens on any part of the Collateral, then the Liens, if any, of the Secured Parties, shall be automatically, unconditionally and simultaneously released on a parity basis with the holders of the New Notes;
provided, that after the Senior Permitted Liens have been satisfied, the balance, if any, of the proceeds of such Collateral shall be applied to the Obligations for the benefit of the Secured Parties and the holders of the New Notes on a
pari passu basis. The Secured Parties shall, or shall cause a duly appointed Security Agent to, promptly execute and deliver to the Company such termination statements, releases and other documents as it may reasonably require to effectively
confirm such release. 
 SECTION 5. Intercreditor Provisions. 

(a) Subject to the security interests of the holders of the Senior Permitted Liens, notwithstanding the date, manner and order of
perfection of the security interests in and liens on the Collateral (as such term is defined in the Security Agreement and the New Security Agreement) and 

  
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notwithstanding any provision of the Uniform Commercial Code, as in effect in any state of appropriate jurisdiction, or any other applicable law or decision, as among the holders of Prior Notes
and the purchasers of New Notes (each, a “Creditor”), the holders of the Prior Notes agree that (i) each Creditor (including the purchasers of the New Notes) shall rank pari passu with respect to their respective
security interests in the Collateral and (ii) upon any foreclosure, sale or other disposition in liquidation of all or any part of the Collateral, each Creditor shall share in the resulting income pertaining to and the proceeds of such
foreclosure, sale or other disposition in liquidation of the Collateral pro rata in the manner set forth in Section 5(e) below, regardless of the time at which such Creditor acquired rights in or to any of the Collateral. 

(b) Subject to the security interests of the holders of the Senior Permitted Liens, and except as expressly provided herein, this
Amendment shall not limit or impair the right of a Creditor to take any action permitted under their respective Prior Notes or Security Agreement in accordance with the terms thereof. Subject to the security interests of the holders of the Senior
Permitted Liens, to the extent otherwise permitted under the Prior Notes that a Creditor holds, each holder of the Prior Notes agrees that a Creditor may proceed to accelerate or demand payment of the Obligations (as such term is defined in the
Security Agreement and the New Security Agreement) payable to it, and enforce any other right or remedy available to it against the Company in accordance with the terms of the Prior Notes and Security Agreement; provided, however,
(i) if a Creditor accelerates or demands payment of any Obligations payable to it, or if there is an automatic acceleration or demand for payment of any Obligations payable to such Creditor under the terms of their respective Prior Notes or New
Notes as the result of the filing of a petition in bankruptcy or similar event, such Creditor shall on the date of such acceleration or demand for payment (or promptly following an automatic acceleration or demand) give written notice of
acceleration or demand to the other Creditors; (ii) prior to enforcing any right to foreclose or otherwise realize on the Collateral after acceleration or demand for payment of the Obligations, or any of them, a Creditor shall give at least
10 days’ prior written notice to the other Creditors of its intention to enforce such right; and (iii) prior to enforcing any other right or remedy available to it against the Company or the Collateral, a Creditor shall give at least
three business days’ prior written notice to the other Creditors of its intention to enforce such right or remedy. With the agreement of the other Creditors, such 10-day and three-day notice requirements may be waived or reduced at any time.

 (c) Subject to the security interests of the holders of the Senior Permitted Liens, it is the intention of the holders
of the Prior Notes that whenever practicable, any foreclosure or other realization on the Collateral after acceleration or demand for payment of the Obligations, or any of them, shall be coordinated among the Creditors and constitute a common
foreclosure or realization on behalf of the Creditors. Each holder of a Prior Note agrees to endeavor in good faith to consult with the other Creditors prior to any foreclosure or other realization on the Collateral after acceleration or demand for
payment of the Obligations, or any of them, in order to agree on a common course of action. Subject to the foregoing, if any Creditor shall have notified the other Creditors pursuant to Section 5(b), above, of its intention to enforce any right
to foreclose or otherwise realize on the Collateral after acceleration or demand for payment of the Obligations, or any of them, and if such Creditor shall have thereafter determined within the 10-day period referred to in Section 5(b) above,
to enforce such right, then such Creditor (a “Foreclosing Creditor”) may proceed to foreclose and realize on the Collateral on its own behalf and as agent on behalf of the other Creditors (the “Non-Foreclosing
Creditors”). The method of foreclosure or other realization on the Collateral (including, without limitation, the acceptability of any bid at any foreclosure sale or transfer in lieu of foreclosure and the method of collection of accounts
receivable or other rights to payment) shall be determined by the Foreclosing Creditor after consultation with the Non-Foreclosing Creditors, as the case may be, provided that any such foreclosure or realization shall be conducted by the Foreclosing
Creditor in good faith and in a commercially reasonable and expeditious manner, and further provided that the Foreclosing Creditor shall have no right to bid in any Obligations payable to the Non-Foreclosing Creditors without the express written
consent of the Non-Foreclosing Creditors. Except as otherwise provided above, and subject to the requirements of Section 5(b) above, each Creditor shall have the authority to and may proceed at any time to foreclose and realize on the
Collateral to the extent otherwise permitted under the Prior Notes or New Notes and Security Agreement to which it is a party. 

  
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 (d) In the event of receipt of any payments from the Company by a Creditor on account
of the Obligations payable to such Creditor after acceleration or demand for payment of the Obligations of any of them, such payments shall be held in trust by such Creditor, and shall be promptly applied to the payment of the Obligations in the
manner set forth in Section 5(e) below. 
 (e) In the event of the acceleration or demand for payment of the
Obligations, or any of them, or of any foreclosure, sale or other disposition in liquidation of the Collateral, all moneys collected or received by the Creditors on account of the Obligations or in respect of the Collateral in excess of the amounts
paid to discharge prior liens upon the Collateral shall be applied to the payment of all proper costs and expenses, if any, incurred in the collection thereof or for the protection of the Collateral pro rata in accordance with the amount of such
costs and expenses, and the balance of such moneys shall be applied pro rata to the payment of the Prior Notes and New Notes in that proportion which the amount of such Obligations payable to each Creditor bears to the aggregate amount of
such Obligations taken as a whole. 
 SECTION 6. Extension Warrants. In consideration of the amendments to the
Prior Notes and Security Agreement and the other agreements set forth herein, the Company agrees to issue to the Holders, on the Effective Date, warrants to purchase such number of shares of common stock of the Company (in the aggregate) as is equal
to the product obtained by multiplying (a) 0.70 by (b) the quotient derived by dividing (x) the total principal amount of the outstanding Prior Notes by (y) 101% of the most recent Closing Bid Price of the Company’s Common
Stock as published by the Nasdaq Stock Market prior to the execution of this Amendment (the “Extension Warrants”). As used herein, “Closing Bid Price” shall mean the most recently reported closing consolidated bid
price of the Company’s Common Stock published by the Nasdaq Stock Market prior to the execution of this Agreement. The number of Extension Warrants to be issued to each Holder shall be determined pro rata, based on the principal amount
of Prior Notes held by each Holder as of the date of issuance of the Extension Warrants. The Extension Warrants shall be exercisable for a period of 54 months commencing six months following the date of issuance, at an exercise price equal to the
greater of (i) 101% of the Closing Bid Price of the Company’s Common Stock or (ii) $1.34, and otherwise shall be in the form attached as Annex A to this Amendment. 

SECTION 7. Effect of Amendment. This Amendment shall become effective on the date on which (the “Effective
Date”) the following conditions have occurred: the Company and the Holders of at least a Majority in Interest of the Prior Notes have executed and delivered counterparts of this Amendment and the Company shall have obtained all consents or
waivers necessary to consummate the New Financing. Upon the Effective Date, (i) the applicable portions of this Amendment shall be a part of each Prior Note and the Security Agreement, as the case may be, each as amended hereby, and
(ii) each reference in any such document to “this Note”, “this Agreement”, “hereof”, “hereunder”, or words of like import, and each reference in any other document or agreement to any of the Prior Notes
or the Security Agreement shall mean and be a reference to the Prior Notes or the Security Agreement, as the case may be, as amended hereby. Except as expressly amended hereby, each of the Prior Notes and the Security Agreements amended herein shall
remain in full force and effect and are hereby ratified and confirmed by the parties hereto. 
 SECTION 8.
Consent. Each of the Holders executing this Amendment hereby consents to the terms of the amendments to the Prior Notes and Security Agreement contained in this Amendment. This Amendment is not intended to serve as, and shall not be
construed by operation of law or otherwise, as a novation of the Prior Notes. 

  
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 SECTION 9. Representations and Warranties. Each of the parties hereto
represents and warrants that it is duly incorporated or otherwise organized, validly existing and (to the extent applicable) in good standing under the laws of the jurisdiction of its formation, that it has all requisite power and authority to enter
into this Amendment and that this Amendment has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation. Each of the Holders which are parties hereto further represent and warrant that it is
(i) the beneficial or record owner of the Prior Notes originally issued to it, free and clear of any and all pledges, liens, security interests, mortgage, claims, charges, restrictions, options, title defects or encumbrances; (ii) such
Holder has not assigned any interest in either the Prior Notes originally issued or the Security Agreement; (iii) an “accredited investor” as that term is defined in Regulation D promulgated under the Securities Act of 1933,
(iv) acquiring the Extension Warrants (and the shares of the Company’s common stock issuable upon exercise thereof) for its own account for investment and not with a view toward distribution in a manner which would violate the Securities
Act of 1933 or any applicable state securities laws and (v) aware that the Extension Warrants (and the shares of the Company’s common stock issuable upon exercise thereof) are “restricted securities” under the federal securities
laws and must be held indefinitely unless subsequently registered under the Securities Act of 1933 and under applicable state securities laws or an exemption from such registration is available. 

SECTION 10. Governing Law; Miscellaneous. 
 (a) This Amendment shall be governed by and construed in accordance with the laws of the State of New York without reference to principles of conflicts of law. 

(b) Headings used herein are for convenience of reference only and shall not affect the meaning of this Amendment. This Amendment
may be executed in any number of counterparts, and by the parties hereto on separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same agreement. Executed counterparts may be delivered
via facsimile or other means of electronic transmission. 
 (c) Each Holder hereby represents that it is the owner of the Prior
Note issued to it and that such Prior Note has not been assigned, pledged or otherwise transferred. Each Holder agrees that this Amendment shall be affixed by each Holder to its Prior Note and become a part thereof. 

(d) This Amendment contains the entire agreement and understanding of the parties with respect to its subject matter and supersedes all
prior arrangements and understandings between the parties, either written or oral, with respect to its subject matter. This Amendment may not be amended or modified except in the manner for amendment of the Prior Notes and the Security Agreement as
set forth therein. The observance of any term of this Amendment may be waived (either generally or in a particular instance and either retroactively or prospectively) in the manner set forth in the Prior Notes and the Security Agreement. The failure
of any party at any time or times to require performance of any provision hereof shall in no manner affect the rights at a later time to enforce the same. No waivers of or exceptions to any term, condition, or provision of this Amendment, in any one
or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition, or provision. This Amendment shall be binding upon and shall inure to the benefit of and be binding upon the parties hereto and
their respective successors and assigns. 
 (e) Each Holder has been advised and had the opportunity to consult with an attorney
or other advisor prior to executing this Amendment. The undersigned Holder understand, confirms and agrees that counsel to the Company is not acting as counsel to the Holder and the undersigned Holder has not relied upon any legal advice except as
provided by its own counsel. 
 [Signature Page Follows] 

  
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 WITNESS WHEREOF, the parties have caused this Amendment to be executed by their
respective duly authorized representatives, as of the date first set forth above 
  

			
	AUTHENTIDATE HOLDING CORP.
		
	By:	 	  

	Name:	 	O’Connell Benjamin
	Title:	 	Chief Executive Officer

 ACCEPTED AND AGREED: 
 FOR INDIVIDUAL HOLDERS 
  

			
	Print Name:	  	  

		
	Individual Holder Signature:	  	  

			
		
	Principal Amount of Notes: $	 	  

 FOR HOLDERS WHICH ARE ENTITIES 
 The undersigned person executing this Agreement represents that he or she has been duly authorized by the named entity to execute this Agreement on behalf of such entity. 

 

			
	Print Name of Entity:	  	  

 

			
		
	By:	 	  

			
	Name:	 	
	Title:	 	

			
		
	Principal Amount of Notes: $	 	  

  
 8Board Nomination and Observer Agreement

 Exhibit 10.4 
 BOARD NOMINATION AND OBSERVER AGREEMENT 
 This Board Nomination and
Observer Agreement (this “Agreement”) is made as of September 25, 2012, among Authentidate Holding Corp., a Delaware corporation (the “Company”) and Lazarus Investment Partners, LLLP, a limited
liability partnership (the “Stockholder”). Unless otherwise specified herein, all of the capitalized terms used herein are defined in Section 5 hereof. 

WHEREAS, the Company has entered into a Securities Purchase Agreement, dated as of September 24, 2012 (the
“Purchase Agreement”), with the Stockholder and the other parties identified on Schedule I thereto whereby the Stockholder has agreed to participate in transaction described therein; and 

WHEREAS, the Company has agreed to grant the Stockholder, subject to the limitations set forth in this Agreement, to observation
and nomination rights as set forth herein on the terms and conditions of this Agreement. 
 NOW, THEREFORE, in
consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement hereby agree as follows: 

Section 1. Board Observer Rights. 
 (a) At any time prior to the Expiration Time, provided that the Stockholder has not exercised its rights under Section 2 of this Agreement and such Stockholder together with its Affiliates
Beneficially Own 5.0% or greater of the Outstanding Equity, the Stockholder may designate a Board observer reasonably acceptable to the Company (the “Board Observer”) to attend all meetings of the Board, in a non-voting
capacity, by the giving of written notice to the Company’s Chairman or Chief Executive Officer of such designation (“Observation Election”) prior to the Expiration Time. In connection therewith and during the time period
set forth in Section 1(b), the Company shall simultaneously give the Board Observer copies of all notices, consents, minutes and other materials, financial or otherwise, which the Company provides to the Board in connection with meetings
of the Board to be held during such time frame, provided that (i) if the Board Observer does not, upon the request of the Company, before attending any meetings of the Board, execute and deliver to the Company a confidentiality agreement
reasonably acceptable to the Company, the Board Observer may be excluded from access to any material or meeting or portion thereof if the Board determines in good faith that such exclusion is reasonably necessary to protect confidential proprietary
information of the Company or confidential proprietary information of third parties that the Company is required to hold in confidence, or for other similar reasons; (ii) such representative may be excluded from access to any material or
meeting or portion thereof if the Board determines in good faith that such exclusion is reasonably necessary to preserve the attorney-client privilege; (iii) any committee of the Board may exclude the Observer from attending any meeting of such
committee in its discretion; and (iv) nothing herein shall prohibit the Board or any committee of the Board from taking any action proposed to be taken at any meeting of the Board or committee or by written consent. 

(b) In the event the Stockholder makes an Observation Election, the Stockholder shall have the observation rights set forth herein for a
period of time expiring on the earlier of (i) the second anniversary date of the Effective Date, (ii) the date on which the Stockholder makes an election to appoint a Nominee in accordance with Section 2 of this Agreement, or
(iii) the occurrence of a General Termination Event. All obligations of the Company pursuant to this Section 1 shall terminate upon the Stockholder ceasing to have the right to designate a Board Observer pursuant to this
Section 1.

  
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 (c) Stockholder agrees, and Stockholder will cause any Board Observer to agree, to hold in
confidence with respect to all information so provided and not use or disclose any confidential information provided to or learned by it in connection with its rights under this Agreement other than for purposes reasonably related to its interest as
a shareholder of the Company, and not to the detriment of, the Company. The confidentiality provisions hereof will survive any termination of this Agreement. The Stockholder shall cause the Board Observer to agree to, and shall be responsible for
the Board Observer’s failure to, hold in confidence and trust and to act in a fiduciary manner with respect to all information provided to such Board Observer pursuant hereto. 

Section 2. Board Nomination Rights. 
 (a) At any time prior to the Expiration Time, subject to the terms and conditions of this Agreement and provided that the Stockholder together with its Affiliates Beneficially Own 10.0% or greater of the
Outstanding Equity, the Stockholder shall have the right (but not the obligation) to designate one person to be nominated for election to the Board (a “Nominee”) by giving written notice to the Chairman of the Board or the
Secretary of the Company prior to the Expiration Time. As a condition of exercising its right under Section 2 of this Agreement, the Stockholder hereby agrees that effective upon the election of such Nominee to the Board, the
Stockholder’s rights under Section 1 of this Agreement shall automatically expire and no person may continue to act in the capacity as Board Observer. The Nominee shall be selected by the Stockholder in reasonable consultation with
(but without the need for the approval of) the Company’s Nominating and Corporate Governance Committee of its Board of Directors (the “Nominating Committee”). 

(b) Provided the Stockholder exercises its right under Section 2(a) prior to the Expiration Time, the Company shall subject
to its rights under Section 3: (i) promptly increase the size of the Board from five (5) to six (6) members; (ii) appoint such Nominee as a member of the Board; and (iii) at all times during the Designation
Period, include, and shall use its best efforts to cause the Board, whether acting through the Nominating and Corporate Governance Committee of the Board or otherwise, to include the Nominee in the slate of nominees recommended to the Stockholders
for election as a director at any annual or special meeting of the Stockholders held during the Designation Period (or, if permitted, by any action by written consent of the Stockholders taken during the Designation Period) at or by which directors
of the Company are to be elected. 
 (c) If a Board vacancy occurs during the Designation Period solely because of the death,
disability, disqualification, resignation or removal of the Nominee, the Stockholder shall be entitled to designate such person’s successor in accordance with Section 3(b). 

(d) If during the Designation Period the Nominee is not nominated or elected to the Board because of such Nominee’s death,
disability, disqualification, withdrawal as a nominee or such Nominee is for any other reason unavailable or unable to serve on the Board, the Stockholder shall be entitled to promptly designate another Nominee in accordance with the applicable
provisions of Section 2 and the director position for which such Nominee was nominated shall not be filled pending such designation. 
 (e) A Nominee shall be entitled to the same compensation paid and expense reimbursement payable to other non-employee Directors. 
 (f) If in the reasonable judgment of the Company, the election or appointment of the Nominee would cause the Company to not comply with the relevant listing rules of the Nasdaq Stock Market (the
“Listing Rules”), including the requirement that the Company’s Board be comprised of a majority of Independent Directors, then the Company may defer the appointment and/or election of such

  
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Nominee until it is able to take commercially reasonable measures to ensure that such appointment or election would not cause the Company to violate the Listing Rules. For the purpose of clarity,
it is agreed that such measures may include a further increase in the size of the Board and the appointment and/or election of an additional individual to serve as an Independent Director, which individual shall be selected in the sole discretion of
the Company. 
 (g) For the avoidance of doubt, the provisions of this Agreement shall not limit any rights the Stockholder may
have as a stockholder of the Company pursuant to Delaware law, the Certificate of Incorporation or the By-Laws. 

Section 3. Company Obligations. 
 (a) Notwithstanding anything herein to the contrary, the Company shall not be obligated to appoint any Nominee to serve on the Board or cause to be nominated for election to the Board or recommend to the
stockholders the election of any Nominee: (i) who fails to submit to the Company on a timely basis such questionnaires as the Company may reasonably require of its directors generally and such other information as the Company may reasonably
request in connection with the preparation of its filings under the Securities Laws; or (ii) if the Board or the Nominating Committee (if any) determines in good faith, after consultation with outside legal counsel, that (A) such action
would constitute a breach of its fiduciary duties or applicable law or violate the Company’s Certificate of Incorporation or By-Laws; or (B) such Nominee would not be qualified under any applicable law, rule or regulation to serve as a
Director of the Company; provided, however, that upon the occurrence of either (i) or (ii) above, the Company shall promptly notify the Stockholder of the occurrence of such event and permit the Stockholder to provide an alternate
Nominee sufficiently in advance of any Board action, the meetings of the stockholders called or written action of stockholders with respect to such election of nominees and the Company shall use commercially reasonable efforts to perform its
obligations under Section 2 with respect to such alternate Nominee (provided that if the Company provides at least 45 days advance notice of the occurrence of any such event such alternative nominee must be designated by the
Stockholder not less than 30 days in advance of any Board action, notice of meeting of the stockholders or written action of stockholders with respect to such election of nominees), and in no event shall the Company be obligated to postpone,
reschedule or delay any scheduled meeting of the stockholders with respect to such election of Nominees. 
 (b) If at any time
during Designation Period a Board vacancy occurs solely because of the death, disability, disqualification, resignation or removal of the Nominee, then the Board, or any committee thereof, shall not fill such vacancy until the earliest to occur of:
(i) the Stockholder’s designation of a successor Nominee (which successor Nominee shall be designated in accordance with Section 2(a) and subject to the terms of Section 3(a)) and the Board’s appointment of
such successor Nominee to fill the vacancy; (ii) the Stockholder’s failure to designate a successor Nominee within 20 Business Days after receiving notification of the vacancy from the Company; or (iii) the Stockholder’s
specifically waiving in writing its rights under this Section 3(b). For the purposes of clarity, the Company shall have the right to fill any Board vacancy which may occur due to any reason other than the death, disability,
disqualification, resignation or removal of the Nominee in accordance with the terms of the Company’s By-Laws and Certification of Incorporation. 
 Section 4. Term and Termination. 
 (a) This Agreement shall become
effective upon the closing of the transactions contemplated by the Purchase Agreement (the “Effective Date”). 

  
 - 3 -

 (b) Notwithstanding anything to the contrary contained herein, if the Stockholder together
with its Affiliates cease to Beneficially Own at least 10.0% of the Outstanding Equity, whether as a result of dilution, Transfer or otherwise, then the rights of the Stockholder under Section 2 of this Agreement shall terminate
automatically (the “Nominee Termination Event”). Within three Business Days after the occurrence of the Nominee Termination Event (i) that results from a Transfer of Common Stock by the Stockholder, the Stockholder shall
notify the Company of such event and (ii) that results from any other event or occurrence, the Company shall notify the Stockholder of such event (in each case, a “Nominee Termination Notice”). 

(c) Notwithstanding anything to the contrary contained herein, upon the occurrence of a General Termination Event, this Agreement shall
be automatically terminated and of no further force and effect, and no party hereto shall have any surviving obligations, rights, or duties hereunder after such termination. Within three Business Days after the occurrence of a General Termination
Event (i) that results from a Transfer of Common Stock by the Stockholder, the Stockholder shall notify the Company of such event and (ii) that results from any other event or occurrence, the Company shall notify the Stockholder of such
event (in each case, a “General Termination Notice”). 
 Section 5. Definitions. 

“Affiliate” means, with respect to any Person, any other Person that directly, or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with, such first Person. 

“Agreement” has the meaning set forth in the preamble. 

“Beneficially Own” has the meaning ascribed to it in Rule 13d-3 and 13d-5 (or successor rules then in effect)
promulgated under Exchange Act. 
 “Board” means the board of directors of the Company. 

“Board Observer” has the meaning set forth in Section 1. 

“Business Day” means any day that is not a Saturday, Sunday, legal holiday or other day on which commercial
banks in New York, New York are authorized or required by applicable law to close. 
 “By-Laws” means
the Company’s By-Laws, as in effect on the date hereof, as the same may be amended from time to time. 

“Certificate of Incorporation” means the Company’s Certificate of Incorporation, as in effect on the date
hereof, as the same may be amended from time to time. 
 “Common Stock” means the common stock, par
value $0.001 per share, of the Company. 
 “Company” has the meaning set forth in the preamble.

 “Designation Period” means the period commencing on the Effective Date and expiring on the first to
occur of a Nominee Termination Event or the third anniversary of the Effective Date. 
 “Director”
means a duly elected member of the Board. 
 “Exchange Act” means the Securities Exchange Act of 1934,
as amended. 

  
 - 4 -

 “Expiration Time” means the earlier of
(i) termination of this Agreement at the election of the Stockholder by written notice to the Company and (ii) at 5:00 p.m. (New York time) on the date that is the 180th day following the Effective Date. 
 “General Termination Event” means the first to occur of (i) the Expiration Time, in the event the Stockholder declines to exercise its rights under Section 1 or
Section 2 of this Agreement; (ii) the date on which the Stockholder, together with its Affiliates, ceases to Beneficially Own at least 5.0% of the Outstanding Equity, whether as a result of dilution, Transfer or otherwise; or
(iii) the expiration of any time period within which Stockholder may designate a Board Observer or Nominee in accordance with Section 1 or Section 2 of this Agreement. 

“Independent Director” means a Director that is an “independent director” as such term is defined from
time to time in the Nasdaq Stock Market’s listing standards (or the principal national securities exchange on which Common Stock is then traded) and is not an “affiliate” or an “associate” (as such terms are defined in Rule
12b-2 of the Exchange Act) or any member of the “immediate family” (as such term is defined in Rule 16a-1 of the Exchange Act) of a director or executive officer of the Company or the Stockholder and shall not have (or have had during the
past three years) any employment arrangement or other material commercial arrangement with any such person. For the avoidance of doubt, ownership of a 5% or less limited partnership interest in any fund managed by the Stockholder shall not be
considered to constitute a material commercial arrangement. 
 “Nominee” has the meaning set forth in
Section 2(a). 
 “Observation Election” has the meaning set forth in Section 1.

 “Outstanding Equity” means, at any time, the issued and outstanding Common Stock of the Company
(assuming (i) the conversion of all outstanding shares of Preferred Stock and (ii) exercise of all common stock purchase warrants then held by the Stockholder). 
 “Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated
organization and a governmental entity or any department, agency or political subdivision thereof. 
 “Preferred
Stock” means the Company’s Series C 15% C Convertible Redeemable Preferred Stock, par value $0.01 per share, of the Company. 
 “Securities Act” means the Securities Act of 1933, as amended from time to time. 
 “Securities Laws” means the Securities Act and the Exchange Act, and the rules promulgated thereunder. 
 “Stockholder” has the meaning set forth in the preamble. 

“Nominee Termination Event” has the meaning set forth in Section 4. 

“Nominee Termination Notice” has the meaning set forth in Section 4. 

“Transfer” means any sale, transfer, assignment or other disposition of (whether with or without consideration
and whether voluntary or involuntary or by operation of law) of Common Stock and/or Preferred Stock. 

  
 - 5 -

 Section 6. No Assignment; Benefit of Parties; No Transfer. No party may assign
this Agreement or any of its rights or obligations hereunder and any assignment hereof will be null and void. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns for
the uses and purposes set forth and referred to herein. Except as explicitly set forth herein, nothing contained in this Agreement shall confer or is intended to confer on any third party or entity that is not a party to this Agreement any rights
under this Agreement. 
 Section 7. Remedies. The Company and the Stockholder shall be entitled to enforce their
rights under this Agreement specifically, to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights existing in their favor. The parties hereto agree and acknowledge that a breach of this
Agreement would cause irreparable harm and money damages would not be an adequate remedy for any such breach and that, in addition to other rights and remedies hereunder, the Company and the Stockholder shall be entitled to seek specific performance
and/or injunctive or other equitable relief (without posting a bond or other security) from any court of law or equity of competent jurisdiction in order to enforce or prevent any violation of the provisions of this Agreement. 

Section 8. Notices. Any notice provided for in this Agreement shall be in writing and shall be either personally delivered,
or mailed first class mail (postage prepaid, return receipt requested) or sent by reputable overnight courier service (charges prepaid) to the Company at the addresses set forth below and to the Stockholder at the addresses set forth below. Notices
shall be deemed to have been given hereunder when delivered personally, three days after deposit in the U.S. mail and one day after deposit with a reputable overnight courier service. 

 

			
	The Company’s address is:	  	Authentidate Holding Corp.
		  	300 Connell Drive, 5th Floor
		  	Berkeley Heights, NJ 07922
		  	Attention: President
		  	Facsimile: (908) 673-9921
		
	 with copies to:
	  	Becker & Poliakoff, LLP
		  	45 Broadway, 8th Floor
		  	New York, NY 10006
		  	Attention: Michael A. Goldstein
		  	Facsimile: (212) 557-0295
		
	The Stockholder’s address is:	  	Lazarus Investment Partners, LLLP
		  	3200 Cherry Creek South Drive, Suite 670
		  	Denver, CO 80209
		  	Attention: Mr. Justin Borus
		  	Facsimile: (303) 309-2675
		
	 with copies to:
	  	Berenbaum Weinshienk PC
		  	370 17th Street, Suite 4800
		  	Denver, CO 80202
		  	Attention: Joseph S. Borus, Esq.
		  	Facsimile: (303) 629-7610

 Section 9. Adjustments. If, and as often as, there are any changes in the Common Stock by way
of stock split, stock dividend, combination or reclassification, or through merger, consolidation, 

  
 - 6 -

 
reorganization, recapitalization or sale, or by any other means, appropriate adjustment shall be made in the provisions of this Agreement, as may be required, so that the rights, privileges,
duties and obligations hereunder shall continue as so changed. 
 Section 10. No Strict Construction. The language
used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any party. 

Section 11. No Third-Party Beneficiaries. Nothing in this Agreement, express or implied, is intended or shall be construed to
confer upon, or give to, any person or entity other than the parties hereto and their respective successors and assigns, any remedy or claim under or by reason of this Agreement or any terms, covenants or conditions hereof, and all of the terms,
covenants, conditions, promises and agreements contained in this Agreement shall be for the sole and exclusive benefit of the parties hereto and their respective successors and assigns. 

Section 12. Further Assurances. Each of the parties hereby agrees that it will hereafter execute and deliver any further
document, agreement, instruments of assignment, transfer or conveyance as may be necessary or desirable to effectuate the purposes hereof. 
 Section 13. Counterparts. This Agreement may be executed in one or more counterparts, and may be delivered by means of facsimile or electronic transmission in portable document format, each of
which shall be deemed to be an original and shall be binding upon the party who executed the same, but all of such counterparts shall constitute the same agreement. 
 Section 14. Governing Law. All issues and questions concerning the construction, validity, interpretation and enforceability of this Agreement shall be governed by, and construed in accordance
with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction
other than the State of Delaware. 
 Section 15. Mutual Waiver of Jury Trial. The parties hereto hereby irrevocably
waive any and all rights to trial by jury in any legal proceeding arising out of or related to this Agreement. Any action or proceeding whatsoever between the parties hereto relating to this Agreement shall be tried in a court of competent
jurisdiction by a judge sitting without a jury. 
 Section 16. Complete Agreement; Inconsistent Agreements. This
Agreement represents the complete agreement between the parties hereto as to all matters covered hereby, and supersedes any prior agreements or understandings between the parties. 

Section 17. Severability. In the event any one or more of the provisions contained in this Agreement should be held invalid,
illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision
in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

Section 18. Amendment and Waiver. Except as otherwise provided herein, no modification, amendment or waiver of any provision
of this Agreement shall be effective against the Company or the Stockholder unless such modification is approved in writing, in the case of an amendment, by the 

  
 - 7 -

 
Company and the Stockholder, and in the case of a waiver, by each party against whom the waiver is to be effective. The failure of any party to enforce any of the provisions of this Agreement
shall in no way be construed as a waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every provision of this Agreement in accordance with its terms. 

[SIGNATURE PAGE FOLLOWS] 

  
 - 8 -

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and
year first above written. 
  

			
	Company:
	
	AUTHENTIDATE HOLDING CORP.
		
	By:	 	 /s/ O’Connell Benjamin

	Name:	 	 O’Connell Benjamin

	Title:	 	 Chief Executive Officer and President

	
	Stockholder:
	
	LAZARUS INVESTMENT PARTNERS, LLLP
		
	By:	 	 /s/ Justin Borus

	Name:	 	  

	Title:	 	  

 Signature Page to Board Nomination and Observer Agreement 

  
 - 9 -

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