Document:

2010 Stock Plan of Herley Industries, Inc.

 Exhibit 10.16 

HERLEY INDUSTRIES, INC. 

2010 STOCK PLAN 
 I.
GENERAL PROVISIONS 
 A. PURPOSE OF THE PLAN 

This 2010 Stock Plan (the “Plan”) is intended to promote the interests of HERLEY INDUSTRIES, INC., a Delaware
corporation (“Corporation”), by providing eligible persons in the employ or service of the Corporation or its affiliates with the opportunity to acquire a proprietary interest, or otherwise increase their proprietary interest, in the
Corporation as an incentive for them to continue in such employ or service. 
 Unless otherwise defined herein,
all capitalized terms shall have the meaning assigned to them in the attached Appendix. 
 B. STRUCTURE OF THE PLAN 

The Plan shall be divided into two (2) separate equity programs: 

(i) the Option Grant Program under which eligible persons (“Optionees”) may, at the discretion of the Board, be
granted options to purchase shares of common stock; and 
 (ii) the Stock Issuance Program under which eligible
persons (“Participants”) may, at the discretion of the Board, be issued shares of common stock directly, either through the immediate purchase of such shares or as a bonus for services rendered to the Corporation (or any Parent or
Subsidiary). 
 The provisions of Articles One and Four shall apply to both equity programs under the Plan and
shall accordingly govern the interests of all persons under the Plan. 
 C. ADMINISTRATION OF THE PLAN 

The Plan shall be administered by the Corporation’s Board of Directors (“Board”), or in the discretion of
the Board, a committee consisting of no less than two Non-Employee Directors or persons meeting such other requirements as may be imposed by Rule 16(b) under the 1934 Act (“Committee”). 

The Board or Committee shall have full power and authority (subject to the provisions of the Plan) to establish such
rules and regulations as it may deem appropriate for proper administration of the Plan and to make such determinations under, and issue such interpretations of, the Plan and any outstanding options or stock issuances thereunder as it may deem
necessary or advisable. Decisions of the Board shall be final and binding on all parties who have an interest in the Plan or any option or stock issuance thereunder. 

D. ELIGIBILITY 

The persons eligible to participate in the Plan are: 

1. Officers, directors, employees and consultants; and 

 

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 2. consultants and other independent advisors who provide services to the
Corporation, or any parent or subsidiary of the Corporation. 
 The Board or Committee shall have full
authority to determine, (i) with respect to the grants made under the Option Grant Program, described in Article Two below, which eligible persons are to receive the option grants, the time or times when those grants are to be made, the number
of shares to be covered by each such grant, the status of the granted option as either an Incentive Option or a Non-Qualified Option, the time or times when each option is to become exercisable, the vesting schedule (if any) applicable to the option
shares and the maximum term for which the option is to remain outstanding, and (ii) with respect to stock issuances made under the Stock Issuance Program, described in Article Three, which eligible persons are to receive such stock issuances,
the time or times when those issuances are to be made, the number of shares to be issued to each Participant, the vesting schedule (if any) applicable to the issued shares and the consideration to be paid by the Participant for such shares.

 The Board or Committee shall have the absolute discretion either to grant options in accordance with the
Option Grant Program or to issue stock in accordance with the Stock Issuance Program. 
 E. STOCK SUBJECT TO THE PLAN 

The stock issuable under the Plan shall be shares of the Corporation’s authorized but unissued or reacquired common
stock. The maximum number of shares of common stock which may be issued under the Plan is 500,000 shares. 

Shares of common stock subject to outstanding options shall be available for subsequent issuance under the Plan to the
extent (i) the options expire or terminate for any reason prior to exercise in full, or (ii) the options are cancelled in accordance with the cancellation-regrant provisions of Article Two. Unvested shares issued under the Plan and
subsequently repurchased by the Corporation, at the option exercise or direct issue price paid per share, pursuant to the Corporation’s repurchase rights under the Plan shall be added back to the number of shares of common stock reserved for
issuance under the Plan. 
 If there is any change to the common stock by reason of any stock split, stock
dividend, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding common stock as a class without the Corporation’s receipt of consideration, then appropriate adjustments shall be made to
(i) the maximum number and/or class of securities issuable under the Plan, and (ii) the number and/or class of securities and the exercise price per share in effect under each outstanding option in order to prevent the dilution or
enlargement of benefits thereunder. 
 II. OPTION GRANT PROGRAM 

A. OPTION TERMS 

Each option shall be evidenced by one or more documents in the form approved by the Board, and which shall be subject to
the provisions of the Plan. 
 1. Exercise Price. 

a. The exercise price per share shall be fixed by the Board in accordance with the following provisions: 

(i) The exercise price per share shall not be less than the Fair Market Value per share of common stock on the option
grant date. 
  

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 (ii) If the Optionee is a 10% Stockholder, then the exercise price per
share shall not be less than one hundred ten percent (110%) of the Fair Market Value per share of common stock on the option grant date for Incentive Options. 

b. The exercise price is payable in cash or check made payable to the Corporation upon exercise of the option, subject to
the provisions of Section I of Article Four and the documents evidencing the option. If the common stock is registered under Section 12 of the Securities Exchange Act of 1934, as amended (“34 Act”) at the time the option is exercised,
then the exercise price may also be paid as follows: 
 (i) in shares of common stock held for the requisite
period necessary to avoid a charge to the Corporation’s earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date, or 

(ii) to the extent the option is exercised for vested shares, through a special sale and remittance procedure pursuant
to which the Optionee shall concurrently provide irrevocable instructions (x) to a Corporation-designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Corporation, out of the sale proceeds available on
the settlement date, sufficient funds to cover the aggregate exercise price payable for the purchased shares plus all applicable Federal, state and local income and employment taxes required to be withheld by the Corporation by reason of such
exercise and (y) to the Corporation to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale. 

Except to the extent the foregoing sale and remittance procedure is used, payment of the exercise price for the
purchased shares must be made on the Exercise Date. 
 2. Exercise and Term of Options. Each option shall be
exercisable at such time or times, during such period and for such number of shares as shall be determined by the Board or Committee and set forth in the documents evidencing the option grant. However, no option shall have a term in excess of five
(5) years measured from the option grant date. 
 3. Effect of Termination of Service. 

a. The following provisions shall govern the exercise of any vested option held by the Optionee at the time of cessation
of Optionee’s employment or rendering of services to the Corporation (collectively “Service”) or death: 

(i) Should the Optionee cease to remain in Service for any reason other than death, Disability or Misconduct, then the
Optionee shall have a period of three (3) months following the date of such cessation of Service during which to exercise each option held by such Optionee to the extent exercisable on the date of such termination. 

(ii) Should Optionee’s Service terminate by reason of Disability, then the Optionee shall have a period of twelve
(12) months following the date of such cessation of Service during which to exercise each outstanding option held by such Optionee to the extent exercisable on the date of such termination. 

(iii) If the Optionee dies while holding an outstanding option, then the personal representative of his or her estate or
the person or persons to whom the option is transferred pursuant to the Optionee’s will or the laws of inheritance shall have a twelve (12)-month period following the date of the Optionee’s death to exercise such option to the extent
exercisable on the date of such termination. 
  

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 (iv) Under no circumstances, however, shall any such option be exercisable
after the specified expiration of the option term. 
 (v) All vested options shall terminate upon the
expiration of the applicable exercise period or (if earlier) upon the expiration of the option term. 
 b. The
Board or Committee shall have the discretion, exercisable either at the time an option is granted or at any time while the option remains outstanding, to: 

(i) extend the period of time for which the option is to remain exercisable following Optionee’s cessation of
Service or death from the limited period otherwise in effect for that option to such greater period of time as it shall deem appropriate, but in no event beyond the expiration of the option term, and/or 

(ii) permit the option to be exercised, during the applicable post-Service exercise period, not only with respect to the
number of vested shares of common stock for which such option is exercisable at the time of the Optionee’s cessation of Service but also with respect to one or more additional installments in which the Optionee would have vested under the
option had the Optionee continued in Service. 
 4. Stockholder Rights. The holder of an option shall have no
stockholder rights with respect to the shares subject to the option until such person exercises the option, pays the exercise price and becomes the recordholder of the purchased shares. 

5. Limited Transferability of Options. During the lifetime of the Optionee, the option shall be exercisable only by the
Optionee and shall not be assignable or transferable other than by will or, following the Optionee’s death, by the laws of descent and distribution. 

B. CORPORATE TRANSACTION 

1. All unvested options shall automatically vest in full if and when either of the following stockholder approved
transactions to which the Corporation is a party are consummated: (i) a merger or consolidation in which securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation’s outstanding
securities are transferred to a person or persons different from the persons holding those securities immediately prior to such transaction, or (ii) the sale, transfer or other disposition of all or substantially all of the Corporation’s
assets in complete liquidation or dissolution of the Corporation. However, the shares subject to an outstanding option shall not vest on such an accelerated basis if and to the extent: (i) such option is assumed by the successor corporation (or
parent thereof) in the Corporate Transaction or (ii) such option is to be replaced with a cash incentive program of the successor corporation which preserves the spread existing on the unvested option shares at the time of the Corporate
Transaction and provides for subsequent payout in accordance with the same vesting schedule applicable to those unvested option shares or (iii) the acceleration of such option is subject to other limitations imposed by the Board or Committee at
the time of the option grant. 
 2. Each option which is assumed in connection with a Corporate Transaction
shall be appropriately adjusted, immediately after such Corporate Transaction, to apply to the number and class of securities which would have been issuable to the Optionee in consummation of such Corporate Transaction, had the option been exercised
immediately prior to such Corporate Transaction. Appropriate adjustments shall also be made to (i) the number and class of securities available for issuance under the Plan following the consummation of such Corporate Transaction and
(ii) the exercise price payable per share under each outstanding option, provided the aggregate exercise price payable for such securities shall remain the same. 

 

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 3. The Board or Committee shall have the discretion, exercisable either at
the time the option is granted or at any time while the option remains outstanding, to structure one or more options so that those options shall automatically accelerate and vest in full (and any repurchase rights of the Corporation with respect to
the unvested shares subject to those options shall immediately terminate) upon the occurrence of a Corporate Transaction, whether or not those options are to be assumed in the Corporate Transaction. 

4. The Board or Committee shall also have full power and authority, exercisable either at the time the option is granted
or at any time while the option remains outstanding, to structure such option so that the shares subject to that option will automatically vest on basis should the Optionee’s Service terminate by reason of the Optionee’s involuntary
dismissal or discharge by the Corporation for reasons other than misconduct (“Involuntary Termination”) within a designated period (not to exceed one year) following the effective date of any Corporate Transaction in which the option is
assumed and the repurchase rights applicable to those shares do not otherwise terminate. Any option so accelerated shall remain exercisable for the fully-vested option shares until the expiration or sooner termination of the option term. 

5. The portion of any Incentive Option accelerated in connection with a Corporate Transaction shall remain exercisable as
an Incentive Option only to the extent the applicable One Hundred Thousand Dollar ($100,000.00) limitation is not exceeded. To the extent such dollar limitation is exceeded, the accelerated portion of such option shall be exercisable as a
Non-Statutory Option under the Federal tax laws. 
 6. The grant of options under the Plan shall in no way
affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 

III. STOCK ISSUANCE PROGRAM 
 A. STOCK ISSUANCE
TERMS 
 Shares of common stock may be issued at the discretion of the Board or Committee under the Stock
Issuance Program through direct and immediate issuances without any intervening option grants. Each such stock issuance shall comply with the terms specified below. 

1. Issuances. 

Shares of common stock may be issued under the Stock Issuance Program for past or future services rendered, or to be
rendered, to the Corporation (or any Parent or Subsidiary) as the Board may deem appropriate in each individual instance. 

2. Vesting Provisions. 

a. Shares of common stock issued under the Stock Issuance Program shall vest at the discretion of the Board or Committee.

  

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 b. The Participant shall have full stockholder rights with respect to any
shares of common stock issued to the Participant under the Stock Issuance Program. Accordingly, the Participant shall have the right to vote such shares and to receive any regular cash dividends paid on such shares. 

IV. MISCELLANEOUS 
 A. ADJUSTMENTS DUE TO STOCK
SPLITS, MERGERS, CONSOLIDATION, ETC. 
 If, at any time, the Corporation shall take any action, whether by stock
dividend, stock split, combination of shares or otherwise, which results in a proportionate increase or decrease in the number of shares of common stock theretofore issued and outstanding, the number of shares which are reserved for issuance under
the Plan and the number of shares which, at such time, are subject to options shall, to the extent deemed appropriate by the Board or Committee, be increased or decreased in the same proportion, provided, however, that the Corporation shall not be
obligated to issue fractional shares. 
 Likewise, in the event of any change in the outstanding shares of
common stock by reason of any recapitalization, merger, consolidation, reorganization, combination or exchange of shares or other corporate change, the Board or Committee shall make such substitution or adjustments, if any, as it deems to be
appropriate, as to the number or kind of shares of common stock or other securities which are reserved for issuance under the Plan and the number of shares or other securities which, at such time are subject to Options. 

B. EFFECTIVE DATE AND TERM OF PLAN 

1. The Plan shall become effective on March 23, 2010, provided that no Incentive Options may be granted unless the
Plan is first approved by the Corporation’s stockholders. The Board may grant options and issue shares under the Plan at any time after the effective date of the Plan and before the date fixed herein for termination of the Plan. 

2. The Plan shall terminate upon the earliest of (i) the expiration of the ten (10)-year period measured from the
date the Plan is adopted by the Board, (ii) the date on which all shares available for issuance under the Plan shall have been issued as vested shares or (iii) the termination of all outstanding options in connection with a Corporate
Transaction. All options and unvested stock issuances outstanding at the time of a clause (i) termination event shall continue to have full force and effect in accordance with the provisions of the documents evidencing those options or
issuances. 
 C. AMENDMENT OF THE PLAN 

The Board or Committee shall have complete and exclusive power and authority to amend or modify the Plan in any or all
respects, except for those persons ineligible to participate. However, no such amendment or modification shall adversely affect the rights and obligations with respect to options or unvested stock issuances at the time outstanding under the Plan
unless the Optionee or the Participant consents to such amendment or modification. In addition, certain amendments may require stockholder approval pursuant to applicable laws and regulations. 

D. WITHHOLDING 

The Corporation’s obligation to deliver shares of common stock upon the exercise of any options or upon the issuance
of shares issued under the Plan shall be subject to the satisfaction of all applicable Federal, state and local income and employment tax withholding requirements. 

 

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 E. REGULATORY APPROVALS 

The implementation of the Plan, the granting of any options under the Plan and the issuance of any shares of common stock
(i) upon the exercise of any option or (ii) under the Stock Issuance Program shall be subject to the Corporation’s obtaining all approvals and permits required by regulatory authorities having jurisdiction over the Plan, the options
granted under it and the shares of common stock issued pursuant to it. 
 F. NO EMPLOYMENT OR SERVICE RIGHTS 

Nothing in the Plan shall confer upon the Optionee or the Participant any right to continue in Service for any period of
specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or retaining such person) or of the Optionee or the Participant, which rights are hereby expressly reserved by
each, to terminate such person’s Service at any time for any reason, with or without cause. 
 APPENDIX 

The following definitions shall be in effect under the Plan: 

Board shall mean the Corporation’s Board of Directors. 

Change of Control shall mean: 

(i) any person who is not currently such becomes the beneficial owner, directly or indirectly, of securities of the
Company representing 50% or more of the combined voting power of the Company’s then outstanding voting securities; or 

(ii) three or more directors, whose election or nomination for election is not approved by a majority of the Incumbent
Board (as defined in the Plan), are elected within any single 12-month period to serve on the Board of Directors; or 

(iii) members of the Incumbent Board cease to constitute a majority of the Board of Directors without the approval of the
remaining members of the Incumbent Board; or 
 (iv) any merger (other than a merger where the Company is the
survivor and there is no accompanying change in control under subparagraphs (i), (ii) or (iii) of this paragraph) , consolidation, liquidation or dissolution of the Company, or the sale of all or substantially all of the assets of the
Company. 
 Code shall mean the Internal Revenue Code of 1986, as amended. 

Common Stock shall mean the Corporation’s common stock, $.10 par value. 

Corporate Transaction shall mean either of the following stockholder-approved transactions to which the Corporation is a party:

 (i) a merger or consolidation in which securities possessing more than fifty percent (50%) of the total
combined voting power of the Corporation’s outstanding securities are transferred to a person or persons different from the persons holding those securities immediately prior to such transaction, or 

 

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 (ii) the sale, transfer or other disposition of all or substantially all of
the Corporation’s assets in complete liquidation or dissolution of the Corporation. 
 Corporation shall mean Herley Industries, Inc., a
Delaware corporation. 
 Disability shall mean the inability of Optionee to engage in any substantial gainful activity by reason
of any medically determinable physical or mental impairment and shall be determined by the Plan Administrator on the basis of such medical evidence as the Plan Administrator deems warranted under the circumstances. Disability shall be deemed to
constitute Permanent Disability in the event that such Disability is expected to result in death or has lasted or can be expected to last for a continuous period of twelve (12) months or more. 

Eligibility. Incentive Options may only be granted to Employees other than the Chairman, Chief Executive Officer and directors.

 Employee shall mean an individual who is in the employ of the Corporation (or any Parent or Subsidiary), subject to the
control and direction of the employer entity as to both the work to be performed and the manner and method of performance. 
 Exercise Date
shall mean the date on which the option shall have been exercised. 
 Exercise Price shall mean the exercise price payable per Option Share as
specified in the Grant Notice. 
 Expiration Date shall mean the date on which the option expires as specified in the Grant Notice. 

Fair Market Value per share of common stock on any relevant date shall be determined in accordance with the following provisions:

 (i) If the common stock is at the time traded on the NASDAQ Global or Capital Market, then the Fair Market
Value shall be the closing selling price per share of common stock on the date in question, as the price is reported by the National Association of Securities Dealers on the NASDAQ Global or Capital Market. If there is no closing selling price for
the common stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 

(ii) If the common stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing
selling price per share of common stock on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the common stock, as such price is officially quoted in the composite tape of transactions on
such exchange. If there is no closing selling price for the common stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 

(iii) If the common stock is at the time neither listed on any Stock Exchange nor traded on the NASDAQ Capital Market,
then the Fair Market Value shall be determined by the Plan Administrator after taking into account such factors as the Plan Administrator shall deem appropriate. 

Grant Date shall mean the date of grant of the option as specified in the Grant Notice. 

Grant Notice shall mean the Notice of Grant of Stock Option accompanying the Agreement, pursuant to which Optionee has been informed of
the basic terms of the option evidenced hereby. 
 Incentive Option shall mean an option which satisfies the requirements of Code
Section 422. 
  

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 Misconduct shall mean the commission of any act of fraud, embezzlement or dishonesty by the
Optionee or Participant, any unauthorized use or disclosure by such person of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional misconduct by such person adversely affecting the
business or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not be deemed to be inclusive of all the acts or omissions which the Corporation (or any Parent or Subsidiary) may consider as
grounds for the dismissal or discharge of any Optionee, Participant or other person in the Service of the Corporation (or any Parent or Subsidiary). 

1934 Act shall mean the Securities Exchange Act of 1934, as amended. 

Non-Employee Director shall have the meaning provided under Rule 16(b) or any successor rule under the 1934 Act. 

Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422. 

Option Agreement shall mean the option agreement issued pursuant to the Grant Notice. 

Option Shares shall mean the number of shares of common stock subject to the option. 

Optionee shall mean the person to whom the option is granted as specified in the Grant Notice. 

Parent shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation, provided
each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations
in such chain. 
 Permitted Transfer shall mean (i) a gratuitous transfer of the Purchased Shares, provided and only if
Optionee obtains the Corporation’s prior written consent to such transfer, (ii) a transfer of title to the Purchased Shares effected pursuant to Optionee’s will or the laws of intestate succession following Optionee’s death or
(iii) a transfer to the Corporation in pledge as security for any purchase-money indebtedness incurred by Optionee in connection with the acquisition of the Purchased Shares. 

Plan shall mean the Corporation’s 2010 Stock Plan. 

Plan Administrator shall mean either the Board or a committee of the Board acting in its capacity as administrator of the Plan.

 Purchase Agreement shall mean the stock purchase agreement pursuant to the Grant Notice. 

Service shall mean the Optionee’s performance of services for the Corporation (or any Parent or Subsidiary) in the capacity of an
Employee. 
 Stock Exchange shall mean the NASDAQ Global Market System, American Stock Exchange or the New York Stock Exchange. 

Subsidiary shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with the Corporation,
provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain. 
  

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 Vesting Commencement Date shall mean the date on which the Option Shares commence to vest as
specified in the Grant Notice. 
 Vesting Schedule shall mean the vesting schedule specified in the Grant Notice pursuant to
which the Optionee is to vest in the Option Shares in a series of installments over his or her period of Service. 
  

 B-10Form of Warrant

 Exhibit 4.1 

NEITHER THIS WARRANT NOR ANY OF THE SECURITIES ISSUABLE HEREUNDER HAVE BEEN REGISTERED UNDER THE SECURITIES ACT (AS DEFINED BELOW), OR APPLICABLE
STATE SECURITIES LAWS, AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT, OR (B) AN OPINION OF COUNSEL, IN A
GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT (II) UNLESS SOLD OR TRANSFERRED TO A “QUALIFIED INSTITUTIONAL BUYER” WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT OR (III) UNLESS SOLD PURSUANT TO RULE
144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THESE SECURITIES. 

AUTHENTIDATE HOLDING CORP. 

COMMON STOCK WARRANT 

THIS CERTIFIES THAT, for value received, the Holder is entitled to purchase, and Authentidate Holding Corp., a Delaware corporation (the
“Company”), promises and agrees to sell and issue to the Holder, at any time, or from time to time, during the Exercise Period, up to              shares of Common
Stock, par value $0.001 per share (the “Common Stock”), of the Company, at the Exercise Price, subject to the provisions and upon the terms and conditions hereinafter set forth. This Warrant is one of the Unit Warrants issued in the
Offering. 
 1. Definitions of Certain Terms. In addition to the terms defined elsewhere in this Warrant, the following terms have the
following meanings: 
 (a) “Business Day” means a day on which banks are open for business in the city of New
York. 
 (b) “Commission” means the U.S. Securities and Exchange Commission. 

(c) “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder. 
 (d) “Exercise Price” means the price at which the Holder may purchase one share of Common Stock
upon exercise of this Warrant as determined from time to time pursuant to the provisions hereof. The initial Exercise Price is $0.70 per share, subject to adjustment as provided herein. 

(e) “Expiration Date” means the 54-month anniversary of the Initial Exercise Date. 

(f) “Holder” means a record holder of the Warrant or shares of Common Stock obtained or obtainable upon exercise of the
Warrant, as applicable. The initial Holder is [                    ]. 

 (g) “Initial Exercise Date” means the six-month anniversary of the Issue
Date. 
 (h) “Issue Date” means
                         , 2010. 

(i) “Offering” shall have the meaning ascribed to such term in the Purchase Agreement and is incorporated herein by this
reference. 
 (j) “Preferred Stock” means the preferred stock, par value $0.10 per share, of the Company.

 (k) “Purchase Agreement” means that certain Securities Purchase Agreement, dated as of the Issue Date,
between the Company and the purchasers of Units specified therein. 
 (l) “Registration Rights Agreement” means
that certain Registration Rights Agreement, dated as of the Issue Date, between the Company and the purchasers of the Units specified therein. 

(m) “Securities Act” means the Securities Act of 1933, as amended. 

(n) “Unit” means a unit consisting of (i) six (6) shares of Common Stock, (ii) one (1) share of
Series C 15% Convertible Redeemable Preferred Stock, and (iii) a warrant to purchase five (5) shares of Common Stock, issued pursuant to the terms of the Purchase Agreement. 

(o) “Unit Warrants” means, collectively, the warrants issued to the investors in the Offering, as more fully described
in the Purchase Agreement. 
 (p) “Warrant” means this warrant and any warrant or warrants hereafter issued as
a consequence of the exercise or transfer of this warrant in whole or in part. 
 2. Exercise of Warrant. 

(a) Manner of Exercise. 

(i) Cash Exercise. This Warrant may be exercised, in whole or in part, at any time or from time to time, during the period
commencing as of 9:30:01 a.m., New York time, on the Initial Exercise Date and ending as of 5:30 p.m., New York time, on the Expiration Date (the “Exercise Period”), for
             fully paid and non-assessable shares of Common Stock (the “Warrant Shares”), for an exercise price per share equal to the Exercise Price, by delivery to
the Company at its headquarters, or at such other place as is designated in writing by the Company, of: 
 (1) a duly executed
Notice of Exercise, substantially in the form of Attachment I attached hereto and incorporated by reference herein; 

(2) this Warrant; and 

(3) subject to Section 2(a)(ii) below, payment of an amount in cash equal to the product of the Exercise Price multiplied by
the number of Warrant Shares being purchased upon such exercise, with such payment being in the form of a wire transfer of funds to an account designated in writing by the Company. 

 

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 The date on which the Company receives the Notice of Exercise, this Warrant, and the
Exercise Price payable with respect to the Warrant Shares being purchased shall be deemed to be the date of exercise (the “Date of Exercise”). 

(ii) Cashless Exercise. Notwithstanding the provisions of Section 2(a)(i)(3) above (requiring payment by wire
transfer), the Company agrees that, unless otherwise prohibited by applicable law, if at the time of exercise hereof there is no effective registration statement registering, or the prospectus contained therein is not available for the issuance of
the Warrant Shares to the Holder or all of the Warrant Shares are not then registered for resale by Holder into the market at market prices from time to time on an effective registration statement for use on a continuous basis (or the prospectus
contained therein is not available for use), then Holder shall have the right at such time to exercise this Warrant in full or in part on a cashless basis, computed using the following formula: 

 

	
	X = Y (A - B)
	      A

Where: 
 X =
The number of Warrant Shares to be issued to the Holder pursuant to this cashless exercise; 
 Y = The number of Warrant Shares
in respect of which the net issue election is made; 
 A = The Fair Market Value (as defined below) of one Warrant Share at the
time the cashless exercise election is made; and 
 B = The Exercise Price then in effect at the time of such exercise.

 The term “Fair Market Value” shall mean, on any given day: (A) if the class of Warrant Shares is
exchange-traded, the average of the closing sales prices per share of the class of Warrant Shares for the ten (10) consecutive trading days ending on the day that is two (2) trading days prior to the applicable date of determination of
Fair Market Value; or (B) if the class of Warrant Shares is not listed or admitted to trading on any securities exchange but is regularly traded in any over-the-counter market, then the average of the bid and ask prices per share of the class
of Warrant Shares for the ten (10) consecutive trading days ending on the day that is two (2) trading days prior to the applicable date of determination of Fair Market Value; or (C) if the class of Warrant Shares is not traded as
described in clauses (A) or (B), then the per share fair market value of the class of Warrant Shares as determined in good faith by the Company’s Board of Directors. 

(b) Delivery of Certificates. Subject to the provisions below, upon receipt of the Notice of Exercise, the Company shall
immediately instruct its transfer agent to prepare certificates for the Warrant Shares to be received by the Holder upon such exercise. The Company shall, at its own cost and expense, cause the transfer agent to deliver such certificates

  

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to the Holder (or to such other nominee as may be designated by the Holder) within three Business Days following the Date of Exercise (the “Delivery Period”). The Holder shall be
deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised as of the Date of Exercise, irrespective of the date such certificates are actually delivered by the
transfer agent to the Holder or are credited to the Holder’s Depository Trust Company (“DTC”) account, as the case may be. If fewer than all of the Warrant Shares purchasable under the Warrant are purchased, the Company will,
upon such partial exercise, execute and deliver to the Holder a new Warrant (dated as of the Issue Date), in the same form and tenor as this Warrant, evidencing that portion of the Warrant not exercised. 

(c) Delivery of Electronic Shares. In lieu of delivering physical certificates representing the Warrant Shares issuable upon
exercise (provided that the transfer agent is participating in the DTC Fast Automated Securities Transfer program and provided further that the Holder provides the transfer agent with information required in order to issue such Warrant Shares to the
Holder electronically), upon the request of the Holder as set forth in the Notice of Exercise, but only if the Warrant Shares may be issued without restrictive legends, the Company shall cause its transfer agent to electronically transmit, within
the Delivery Period, the Warrant Shares issuable upon exercise to the Holder by crediting Holder’s account with DTC through its Deposit Withdrawal Agent Commission system. Any delivery not effected by electronic transmission shall be effected
by delivery of physical certificates. 
 (d) No Fractional Shares. If a fractional share of Warrant Shares would, but for
the provisions of this Section 2(d), be issuable upon exercise of the rights represented by this Warrant, the Company shall (i) round a half share or greater to be delivered to Holder up to the next whole share and (ii) round a
less-than-half share to be delivered to Holder down to the nearest whole share. 
 (e) Buy-In. Notwithstanding anything
else to the contrary contained herein, in addition to any other rights available to the Holder, if the Company fails to cause its transfer agent to transmit to the Holder a certificate or certificates representing the applicable Warrant Shares
purchased upon exercise hereof or credit the Holder’s balance account with DTC, as applicable, on or before the end of the Delivery Period (other than a failure caused by any incorrect or incomplete information provided by Holder to the Company
hereunder), and if after such date the Holder purchases shares of Common Stock to deliver in satisfaction of a sale by the Holder of Warrant Shares that the Holder anticipated receiving from the Company upon exercise of this Warrant (a
“Buy-In”), then the Company shall, within three Business Days after the Holder’s request, (1) pay cash to the Holder the amount by which (x) the Holder’s total purchase price (including commissions, if any) for
the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue, by (B) the price
at which the sell order giving rise to such purchase obligation was executed, and (2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored, or
deliver to the Holder the number of Warrant Shares that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. The Holder shall provide the Company written notice indicating the amounts payable
to the Holder in respect of the Buy-In, together with applicable confirmations 
  

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and other evidence reasonably requested by the Company. Nothing herein shall limit the Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing the Securities as required pursuant to the terms hereof. 

(f) No Charge to Holder Upon Issuance. The issuance of Warrant Shares upon exercise of this Warrant shall be made without charge
to Holder for any issuance tax in respect thereof or other cost incurred by the Company in connection with such exercise and the related issuance of Warrant Shares (other than any transfer taxes resulting from the issuance of Warrant Shares to any
person other than Holder). 
 (g) Reservation of Shares. During the Exercise Period, the Company shall reserve and keep
available out of its authorized but unissued Common Stock such number of Warrant Shares issuable upon the full exercise of this Warrant. All Warrant Shares which are so issuable shall, when issued and upon the payment of the applicable Exercise
Price, be duly and validly issued, fully paid and nonassessable and free from all taxes, liens and charges and not subject to the pre-emptive rights of any holder of Common Stock or any other class or series of stock of the Company. During the
Exercise Period, the Company shall not take any action which would cause the number of authorized but unissued Common Stock to be less than the number of such shares required to be reserved hereunder for issuance upon exercise of this Warrant.

 (h) Limitations on Exercises. 

(i) Notwithstanding anything to the contrary contained in this Warrant, this Warrant shall not be exercisable by the Holder hereof to the
extent (but only to the extent) that the Holder or any of its affiliates would beneficially own in excess of 9.98% (the “Maximum Percentage”) of the Common Stock. To the extent the above limitation applies, the determination of
whether this Warrant shall be exercisable (vis-à-vis other convertible, exercisable or exchangeable securities owned by the Holder or any of its affiliates) and of which such securities shall be exercisable (as among all such securities owned
by the Holder) shall, subject to such Maximum Percentage limitation, be determined on the basis of the first submission to the Company for conversion, exercise or exchange (as the case may be). No prior inability to exercise this Warrant pursuant to
this paragraph shall have any effect on the applicability of the provisions of this paragraph with respect to any subsequent determination of exercisability. For the purposes of this paragraph, beneficial ownership and all determinations and
calculations (including, without limitation, with respect to calculations of percentage ownership) shall be determined in accordance with Section 13(d) of the Exchange Act. The limitations contained in this paragraph shall apply to a successor
Holder of this Warrant. For any reason at any time, upon the written or oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding,
including by virtue of any prior conversion or exercise of convertible or exercisable securities into Common Stock. The provisions of this Section 2(h)(i) may be waived by such Holder, at the election of such Holder, upon not less than
61 days’ prior notice to the Company, and the provisions of this Section 2(h)(i) shall continue to apply until such 61st day (or such later date, as determined by such Holder, as may be specified in such notice of waiver).

  

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 (ii) Notwithstanding anything else set forth herein, in no event shall this Warrant be
exercisable by the Holder to the extent that the Holder or any of its affiliates would beneficially own in excess of 19.99% of the number of shares of the Company’s Common Stock outstanding as of the Issue Date unless any issuances in excess of
the foregoing limitation are approved by the Company’s common stockholders. 
 3. Adjustments in Certain Events. The number, class,
and price of Warrant Shares for which this Warrant may be exercised are subject to adjustment from time to time upon the happening of certain events as follows: 

(a) Subdivisions, Combinations and Other Issuances. If the outstanding shares of the Company’s Common Stock are divided into
a greater number of shares, by forward stock split or otherwise, or a dividend in stock is paid on the Common Stock, then the number of shares of Warrant Shares for which the Warrant is then exercisable will be proportionately increased and the
Exercise Price will be proportionately reduced. Conversely, if the outstanding shares of Common Stock are combined into a smaller number of shares of Common Stock, by reverse stock split or otherwise, then the number of Warrant Shares for which the
Warrant is then exercisable will be proportionately reduced and the Exercise Price will be proportionately increased. The increases and reductions provided for in this Section 3(a) will be made with the intent and, as nearly as
practicable, the effect that neither the percentage of the total equity of the Company obtainable on exercise of the Warrants nor the price payable for such percentage upon such exercise will be affected by any event described in this
Section 3(a). 
 (b) Merger, Consolidation, Reclassification, Reorganization, Etc. In case of any change in
the Common Stock through merger, consolidation, reclassification, reorganization, partial or complete liquidation, purchase of all or substantially all the assets of the Company, or other change in the capital structure of the Company, then, as a
condition of such change, lawful and adequate provision will be made so that the Holder will have the right thereafter to receive upon the exercise of the Warrant the kind and amount of shares of stock or other securities or property to which he
would have been entitled if, immediately prior to such event, he had held the number of Warrant Shares obtainable upon the exercise of the Warrant. In any such case, appropriate adjustment will be made in the application of the provisions set forth
herein with respect to the rights and interest thereafter of the Holder, to the end that the provisions set forth herein will thereafter be applicable, as nearly as reasonably may be, in relation to any shares of stock or other property thereafter
deliverable upon the exercise of the Warrant. The Company will not permit any change in its capital structure to occur unless the issuer of the shares of stock or other securities to be received by the Holder, if not the Company, agrees to be bound
by and comply with the provisions of this Warrant. 
 (c) Notice of Record Date, Etc. In the event the Company shall
propose to take any action of the types requiring an adjustment pursuant to this Section 3 or a dissolution, liquidation or winding up of the Company shall be proposed, the Company shall give notice to Holder as provided in
Section 6 below, which notice shall specify the record date, if any, with respect to any such action and the date on which such action is to take place. Such notice shall also set forth such facts with respect thereto as shall be
reasonably necessary to indicate the effect of such action (to the extent such effect may be known at the date of such notice) on the Exercise Price and the number, kind or class of shares or other securities or property which shall be

  

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deliverable or purchasable upon the occurrence of such action or deliverable upon the exercise of the Warrant. In the case of any action which will require the fixing of a record date, unless
otherwise provided in this Warrant, such notice shall be given at least twenty (20) days prior to the date so fixed, and in case of all other action, such notice shall be given at least thirty (30) days prior to the taking of such proposed
action. 
 (d) If securities of the Company or securities of any subsidiary of the Company are distributed pro rata to holders
of Common Stock, such number of securities will be distributed to the Holder or its assignee upon exercise of its rights hereunder as such Holder or assignee would have been entitled to if this Warrant had been exercised prior to the record date for
such distribution. The provisions with respect to adjustment of the Common Stock provided in this Section 3 will also apply to the securities to which the Holder or its assignee is entitled under this Section 3(d).

 4. No Rights as a Stockholder. Except as otherwise provided herein, the Holder will not, by virtue of ownership of the Warrant, be
entitled to any rights of a stockholder of the Company but will, upon written request to the Company, be entitled to receive such quarterly or annual reports as the Company distributes to its stockholders. 

5. Restrictions on Transfer; Legends. 

(a) Registration or Exemption Required. Assuming the accuracy of the representations and warranties of the Holder contained in the
Purchase Agreement, this Warrant has been issued in a transaction exempt from the registration requirements of the Securities Act by virtue of Regulation D and exempt from state registration or qualification under applicable state laws. Neither this
Warrant nor the Warrant Shares may be pledged, transferred, sold or assigned except pursuant to an effective registration statement or an exemption to the registration requirements of the Securities Act and applicable state laws. If, at the time of
the surrender of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not be registered pursuant to an effective registration statement under the Securities Act and under applicable state securities or
blue sky laws, the Company may require, as a condition of allowing such transfer (i) that the Holder or transferee of this Warrant, as the case may be, furnish to the Company a written opinion of counsel (which opinion shall be in form,
substance and scope customary for opinions of counsel in comparable transactions) to the effect that such transfer may be made without registration under the Securities Act and under applicable state securities or blue sky laws, (ii) that the
holder or transferee execute and deliver to the Company an investment letter in form and substance acceptable to the Company and (iii) that the transferee be an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3),
(a)(7), or (a)(8) promulgated under the Securities Act or a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act. 

(b) Restrictive Legend. The Holder understands that until such time as the Warrant Shares have been registered under the
Securities Act as contemplated by the Registration Rights Agreement, or otherwise may be sold pursuant to Rule 144 under the Securities Act or an exemption from registration under the Securities Act without any restriction as to the number of
securities as of a particular date that can then be immediately sold, this Warrant and the Warrant Shares, as applicable, shall bear a restrictive legend in substantially the form set forth on the cover page of this Warrant (and a stop-transfer
order may be placed against transfer of the certificates for such securities). 
  

 - 7 - 

 (c) Removal of Restrictive Legends. The certificates evidencing the Warrant Shares
shall not contain any legend restricting the transfer thereof: (A) while a registration statement (including a Registration Statement, as defined in the Registration Rights Agreement) covering the sale or resale of the Warrant Shares is
effective under the Securities Act, or (B) following any sale of such Warrant Shares pursuant to Rule 144, or (C) if such Warrant Shares are eligible for sale under Rule 144(b)(1), or (D) if such legend is not required under
applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission) and the Company shall have received an opinion of counsel to the Holder in form reasonably acceptable to the
Company to such effect (collectively, the “Unrestricted Conditions”). The Company shall cause its counsel to issue a legal opinion to its transfer agent if required by the transfer agent to effect the issuance of the Warrant Shares,
as applicable, without a restrictive legend or removal of the legend hereunder. The Company agrees that at such time as the Unrestricted Conditions are met, it will, no later than three (3) Trading Days following the delivery by the Holder to
the Company or the transfer agent of a certificate representing Warrant Shares, issued with a restrictive legend, deliver or cause to be delivered to such Holder a certificate (or electronic transfer) representing such Warrant Shares that is free
from all restrictive and other legends. 
 6. Notices; Adjustments. 

(i) All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (i) upon personal
delivery to the party to be notified; (ii) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, and if not, then on the next business day; (iii) two (2) Business Days after having
been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one (1) Business Day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of
receipt. All communications shall be sent to the Company or to Holder, as applicable, at the respective addresses set forth on the signature page to the Purchase Agreement or at such other address(es) as they may designate, respectively, by ten
(10) days advance written notice to the other party hereto. 
 (ii) Upon the occurrence of any adjustments pursuant to
Section 3 hereof, the Company at its expense shall, as promptly as reasonably practicable but in any event not later than 10 days thereafter, compute such adjustment in accordance with the terms hereof and furnish to Holder a certificate
setting forth such adjustment and showing in detail the facts upon which such adjustment is based. 
 7. Non-Circumvention. The Company
hereby covenants and agrees that the Company will not, by amendment of its certificate of incorporation, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of
securities, or any other action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be reasonably
required to protect the rights of the Holder. 
  

 - 8 - 

 8. Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the
State of New York, without regard to conflict of law principles, and notwithstanding the fact that one or more counterparts hereof may be executed outside of the state, or one or more of the obligations of the parties hereunder are to be performed
outside of the state. 
 9. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and, in the case of loss, theft, or destruction, of indemnity reasonably satisfactory to it, and, if mutilated, upon surrender and cancellation of this Warrant, the
Company will execute and deliver a new Warrant, having terms and conditions identical to this Warrant, in lieu hereof. 
 10. Modification
and Waiver. The Warrant and any provision hereof may be amended, waived, discharged or terminated only by an instrument in writing signed by the Company and the Holder of the Warrant. 

11. Successors. This Warrant shall be binding and inure to the benefit of the parties and their respective successors and assigns hereunder;
provided that this Warrant may be assigned by Holder only in compliance with the conditions specified in and in accordance with all of the terms of this Warrant. This Warrant does not create and shall not be construed as creating any rights
enforceable by any other person or corporation. 
 12. Headings. The headings used in this Warrant are used for convenience only and are
not to be considered in construing or interpreting this Warrant. 
 13. Saturdays, Sundays, Holidays. If the last or appointed day for
the taking of any action or the expiration of any right required or granted herein shall be a Saturday or a Sunday or shall be a legal holiday in the State of New York, then such action may be taken or such right may be exercised on the
next succeeding day not a legal holiday. 
 14. Severability. If any provision of this Warrant shall be held to be invalid or
unenforceable, such invalidity or unenforceability shall not affect any other provisions of this Warrant. 
 15. Execution and
Counterparts. This Warrant may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, and such counterparts together shall constitute only one instrument. Any one of such counterparts
shall be sufficient for the purpose of proving the existence and terms of this Warrant, and no party shall be required to produce an original or all of such counterparts in making such proof. 

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 
  

 - 9 - 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed and delivered as of
the Issue Date by an officer thereunto duly authorized. 
  

			
	AUTHENTIDATE HOLDING CORP.
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

 ATTACHMENT I 

NOTICE OF EXERCISE 

AUTHENTIDATE HOLDING CORP. 

Attention:                     

 The undersigned hereby elects to purchase, pursuant to the provisions of the Common Stock Warrant issued by Authentidate
Holding Corp. as of                     , 2010, and held by the undersigned, the original of which is attached hereto, and (check the
applicable box): 
  

	 ̈	Tenders herewith payment of the Exercise Price in the form of cash, via wire transfer of immediately available funds, in the amount of
$             for              shares of Common Stock. 

 

	 ̈	Elects the cashless exercise option pursuant to Section 2(a)(ii) of the Warrant, and accordingly requests delivery of
             shares of Common Stock, net, pursuant to the following calculation: 

X = Y (A-B)/A 

(        ) = (        )
[(        ) - (        )]/(        ) 

Where 
  

	 	X =	The number of shares of Common Stock to be issued to the Holder pursuant to this cashless exercise; 

 

	 	Y =	The number of shares of Common Stock in respect of which the net issue election is made; 

 

	 	A =	The Fair Market Value of one share of Common Stock, as calculated per the terms of the Warrant; and 

 

	 	B =	The Exercise Price then in effect as of the date of exercise. 

  

	 ̈	If this box is checked, as long as the Company’s transfer agent participates in the DTC Fast Automated Securities Transfer program (“FAST”), and except
as otherwise provided in the next following sentence, the Company shall effect delivery of the shares of Common Stock to the Holder by crediting to the account of the Holder or its nominee at DTC (as specified in this Exercise Notice) with the
number of shares of Common Stock required to be delivered. In the event that the Company’s transfer agent is not a participant in FAST, or if the shares of Common Stock are not otherwise eligible for delivery through FAST, the Company shall
effect delivery of the shares of Common Stock by delivering to Holder or its nominee physical certificates representing such shares. 

 Information for Delivery of uncertificated Shares by DWAC: 

 

							
	Account Number:	  	  
	  		  	
	Account Name:	  	  
	  		  	
	DTC Number:	  	  
	  		  	

  

			
	HOLDER:
	
	  

	Name:	 	
	Title:	 	
		
	Date:	 	  

 

 - 12 -

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