Document:

EXHIBIT 10.2

                            Form of Warrant Agreement

<PAGE>

THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY
STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION STATEMENT
IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN EXEMPTION TO SUCH
ACT.

Exercisable until the earlier of (i) January 15, 2007, or (ii) one year after
the declaration of effectiveness of a registration statement covering these
Warrants and/or the shares issuable upon exercise of these Warrants.

                                 WARRANT FOR THE
                       PURCHASE OF SHARES OF COMMON STOCK

                                       Of

                           X-CHANGE CORPORATION, INC.
               INCORPORATED UNDER THE LAWS OF THE STATE OF NEVADA
               --------------------------------------------------

                  THIS CERTIFIES THAT, for value received, ___________________,
together with his or its successors, assigns, heirs and personal representatives
(the "Investor"), is entitled to purchase, up to
___________________________________ (_______) duly authorized, validly issued,
fully paid and nonassessable shares of Common Stock (the "Common Stock") of
X-Change Corporation, Inc., a Nevada corporation (the "Company"), at the per
share purchase price described in Section 1.3 below, subject to the provisions
and upon the terms and conditions hereinafter set forth.

                  1. Exercise of Warrant. The terms and conditions upon which
this Warrant may be exercised, and the Common Stock covered hereby (the "Warrant
Stock") may be purchased, are as follows:

                  1.1 Term. The purchase right represented by this Warrant may
be exercised in whole or in part at any time and from time to time from and
after the date hereof and until the earlier of (i) January 15, 2007, or (ii) one
year after the declaration of effectiveness of a registration statement covering
these Warrants and/or the shares issuable upon exercise of these Warrants;
provided that, if the last day on which this Warrant may be exercised is a
Sunday or a legal holiday or a day on which banking institutions doing business
in the City of New York are authorized by law to close, this Warrant may be
exercised prior to 5:00 p.m. (New York time) on the next succeeding full
business day with the same force and effect as if exercised on such last day
specified herein.

<PAGE>

                  1.2 Number of Shares. This Warrant is initially exercisable
for ______________________________ (_______) shares of Common Stock, subject to
adjustment pursuant to Section 2 of this Warrant.

                  1.3 . Purchase Price. As of the date hereof, the initial per
share purchase price for the shares of Common Stock to be issued upon exercise
of this Warrant shall be One Dollar ($1.00) per share. Such initial exercise
price shall be subject to adjustment as provided herein (such initial exercise
price as so adjusted, the "Warrant Price").

                  1.4 Method of Exercise. The exercise of the purchase rights
evidenced by this Warrant shall be effected by (a) the surrender of the Warrant,
together with a duly executed copy of the form of a subscription attached
hereto, to the Company at its principal offices and (b) the delivery of the
purchase price (i) by check or bank draft payable to the Company's order or by
wire transfer to the Company's account for the number of shares for which the
purchase rights hereunder are being exercised or any other form of consideration
approved by the Company's Board of Directors or (ii) pursuant to the procedure
set forth in Section 1.5.

                  Each exercise of this Warrant shall be deemed to have been
effected immediately prior to the close of business on the day on which this
Warrant shall have been surrendered to the Company as provided herein or at such
latter date as may be specified in the executed form of subscription, and at
such time the person or persons in whose name or names any certificate or
certificates for shares of Common Stock shall be issuable upon such exercise as
provided herein shall be deemed to have become the holder or holders of record
thereof.

                  1.5 Cashless Exercise. In addition to and without limiting the
rights of the holder hereof under the terms hereof, at the holder's option this
Warrant may be exercised in whole or in part at any time or from time to time
prior to its expiration for a number of shares of Common Stock having an
aggregate fair market value on the date of such exercise equal to the difference
between (a) the fair market value of the number of shares of Common Stock
subject to this Warrant designated for exercise by the holder hereof on the date
of the exercise and (b) the aggregate Warrant Price for such shares in effect at
such time .

                  The "fair market value" of shares of Common Stock shall be
calculated on the basis of (a) if the Common Stock is then traded on a
securities exchange, the average of the closing prices of the Common Stock on
such exchange over the 20 trading day period ending three (3) trading days prior
to the date of exercise, (b) if the Common Stock is then regularly traded
over-the-counter, the average of the sale prices or secondarily the closing bid
of the Common Stock over the 20 trading day period ending three (3) trading days
prior to the date of exercise, or (c) if there is no active public market for
the Common Stock, the fair market value thereof shall be determined by a
nationally recognized investment banking firm chosen in good faith by the
Company's Board of Directors, provided however, that such fair market value
shall take into account the valuations of comparable companies that are publicly
traded or privately held, but not including any discount attributable to the
fact that the shares are illiquid or that they represent a minority ownership
interest in the company. If the holder of this Warrant exercises this Warrant
contingent upon the closing of a public offering, the "fair market value " of a
share of Common Stock on the date of exercise shall be equal to the initial
price to the public specified in the final prospectus with respect to such

<PAGE>

public offering. The following diagram illustrates how many shares would then be
issued upon exercise pursuant to this Section 1.5:

<TABLE>

<S>                                 <C>
         Let      FMV      =        Fair market value per share of Common Stock at date of exercise.
                  PSP      =        Per share Warrant Price at date of exercise.
                  N        =        Number of shares of Common Stock desired to be exercised.
                  X        =        Number of shares of Common Stock issued upon exercise.
                           X        =       (FMV)(N)-(PSP)(N)
                                                     FMV
</TABLE>

                  No payment of any cash or other consideration to the Company
shall be required from the holder of this Warrant in connection with any
exercise of this Warrant pursuant to this Section 1.5. Such exercise shall be
effective upon the date of receipt by the Company of the original Warrant
surrendered for cancellation and a written request from the holder hereof that
the exercise pursuant to this section be made, or at such later date as may be
specified in such request.

                  1.6 Issuance of Shares. As soon as reasonably practicable
after each exercise of this Warrant, in whole or in part, the Company at its
expense (including the payment by it of any applicable issue taxes) will cause
to be issued in the name of and delivered to the holder hereof or as such holder
(upon payment by such holder of any applicable transfer taxes) may direct, (a) a
certificate or certificates for the number of duly authorized, validly issued,
fully paid and nonassessable shares of Common Stock to which such holder shall
be entitled upon such exercise, and (b) in case such exercise is in part only, a
new Warrant or Warrants of like tenor, calling in the aggregate on the face or
faces thereof for the number of shares of Common Stock equal (without giving
effect to any adjustment thereof) to the number of such shares called for on the
face of this Warrant minus the number of such shares designated by the holder
upon such exercise as provided herein.

         2.       Certain Adjustments.

                  2.1 Mergers, Consolidations or Sale of Assets. If after the
date hereof there shall be a capital reorganization (other than a combination or
subdivision of Common Stock otherwise provided for herein), or spin-off, or a
merger or consolidation of the Company with or into another corporation, or the
sale of all or substantially all of the Company's properties and assets to any
other person, then, as a part of such transaction, lawful provision shall be
made so that the Investor shall thereafter be entitled to receive upon exercise
of this Warrant, during the period specified in this Warrant and upon payment of
the purchase price, the number of shares of stock or other securities, cash or
property of the Company or the successor corporation resulting from such
transaction, to which a holder of the Common Stock deliverable upon exercise of
this Warrant would have been entitled under the provisions of the agreement in
such transaction if this Warrant had been exercised immediately before such
transaction. In any such case, appropriate adjustment (as determined reasonably
and in good faith by the Company's Board of Directors) shall be made in the
application of the provisions of this Warrant with respect to the rights and
interests of the Investor after such transaction to the end that the provisions
of this Warrant (including adjustment of the purchase price then in effect and
the number of shares of Common Stock issuable upon exercise hereon shall be

<PAGE>

applicable after that event, as near as reasonably may be, in relation to any
shares or other property deliverable after that event upon exercise of this
Warrant.

                  2.2 Splits and Subdivisions, Dividends. If the Company should
effect or fix a record date for the effectuation of a split or subdivision of
the outstanding shares of Common Stock or the determination of the holders of
Common Stock entitled to receive a dividend or other distribution payable in
additional shares of Common Stock or other securities or warrants, options or
other rights convertible into, or entitling the holder thereof to receive
directly or indirectly, additional shares of Common Stock (hereinafter referred
to as "Common Stock Equivalents") without payment of any consideration by such
holder for the additional shares of Common Stock or Common Stock Equivalents
(including the additional shares of Common Stock issuable upon conversion or
exercise thereof), then, as of such record date (or the date of such
distribution, split or subdivision if no record date is fixed), the per share
purchase price shall be appropriately decreased and the number of shares of
Common Stock issuable upon exercise hereof shall be appropriately increased in
proportion to such increase of outstanding shares.

                  2.3 Combination of Shares. If the number of shares of Common
Stock outstanding at any time after the date hereof is decreased by a
combination of the outstanding shares of Common Stock, the per share purchase
price shall be appropriately increased and the number of shares of Common Stock
issuable upon exercise hereof shall be appropriately decreased in proportion to
such decrease in outstanding shares.

                  2.4 Adjustments for Other Distributions. In the event the
Company shall declare a distribution payable in securities of the Company (other
than Common Stock Equivalents) or other persons, evidences of indebtedness
issued by the Company or other persons, assets (including cash dividends) or
options or rights not referred to in Section 2.2, then, in each such case for
purposes of this Section 2.4, upon exercise of this Warrant the holder hereof
shall be entitled to a proportionate share of any such distribution as though
such holder was the holder of the number of shares of Common Stock of the
Company into which this Warrant may be exercised as of the record date fixed for
the determination of the holders of Common Stock of the Company entitled to
receive such distribution.

                  2.5      Issuance of Additional Common Stock

                           (a) If, after the date hereof, the Company shall
issue or sell to an affiliate of the Company (as defined in Rule 144(a)(I) of
the Act).

                           (i) Additional Shares (defined below) without
                  consideration or for a consideration per share less than the
                  higher of (A) the Warrant Price and (B) the fair market value
                  of a share of Common Stock in effect immediately prior to such
                  issue or sale, or

<PAGE>

                           (ii) Common Stock Equivalents exercisable for
                  Additional Shares with a minimum exercise or exchange price
                  less than the higher of (A) the Warrant Price and (B) the fair
                  market value of a share of Common Stock,

then, and in each such case, the Warrant Price shall be reduced, concurrently
with such issue or sale, to a price (calculated to the nearest .001 of a cent)
determined by multiplying such Warrant Price by a fraction:

                           (i) the numerator of which shall be (A) the number of
                  shares of Common Stock outstanding immediately prior to such
                  issue or sale plus (B) the number of shares of Common Stock
                  that the aggregate consideration received by the Company upon
                  such issuance or sale (or, in the case of Common Stock
                  Equivalents exercisable for Additional Shares, receivable by
                  the Company upon exercise or exchange) would purchase at such
                  Warrant Price or fair market value, as the case may be, and

                           (ii) the denominator of which shall be the number of
                  shares of Common Stock outstanding immediately after such
                  issue or sale (or, in the case of Common Stock Equivalents
                  exercisable for Additional Shares, assuming exercise or
                  exchange thereof).

                          (b) For the purposes of this Section 2.5, the
consideration for the issue or sale of Additional Shares shall, irrespective of
the accounting treatment of such consideration, (i) insofar as it consists of
cash, be computed at the net amount of cash received by the Company, and (ii)
insofar as it consists of property (including securities) other than cash, be
computed at the fair value thereof at the time of such issue or sale.

                          (c) Notwithstanding anything contained herein to the
contrary, the consideration for any Common Stock Equivalents shall be the total
amount of consideration received by the Company for the issuance of such Common
Stock Equivalents plus the minimum amount of consideration payable to the
Company upon exercise, conversion or exchange of Common Stock Equivalents (the
"Net Consideration") determined as of the date of issuance of such Common Stock
Equivalents. Any obligation, agreement or understanding to issue Common Stock
Equivalents at any time in the future shall be deemed to be an issuance at the
time such obligation or agreement is made or arises. No adjustment of the
Warrant Price shall be made under this Section 2.5 upon the issuance of any
shares of Common Stock which are issued pursuant to the exercise, conversion or
exchange of any Common Stock Equivalents if any adjustment shall previously have
been made upon the issuance of any such Common Stock Equivalents.

                  Should the Net Consideration for any such Common Stock
Equivalents be increased or decreased from time to time, then, upon the
effectiveness of such change, the Warrant Price will be that which would have
been obtained (i) had the adjustments made upon the issuance of such Common
Stock Equivalents been made upon the basis of the actual Net Consideration (as
so increased or decreased) of such Common Stock Equivalents, and (ii) had
adjustments to such Warrant Price since the date of issuance of such Common
Stock Equivalents been made to such Warrant Price as adjusted pursuant to (i)

<PAGE>

above. Any adjustment of the Warrant Price with respect to this paragraph which
relates to Common Stock Equivalents shall be disregarded if, as, and when all of
such Common Stock Equivalents expire or are canceled without being exercised, so
that the Warrant Price effective immediately upon cancellation or expiration
shall be equal to the Warrant Price in effect at the time of the issuance of the
expired or canceled Common Stock Equivalents, with such additional adjustments
as would have been made to such Warrant Price had the expired or canceled Common
Stock Equivalents not been issued.

                           (d) "Additional  Shares" means all shares of Common
Stock, whether or not subsequently reacquired or retired by the Company other
than (i) shares of Common Stock issued or to be issued to directors, officers,
employees and consultants of the Company or any subsidiary pursuant to any bona
fide qualified or non-qualified stock option plan or agreement, stock purchase
plan or agreement, stock restriction agreement, or employee stock ownership plan
(ESOP).

                           (e) The number of shares of Common Stock that the
holder of this Warrant shall be entitled to receive upon each exercise hereof
after any adjustment pursuant to this Section 2.5 shall be determined by
multiplying (i) the number of shares of Common Stock that were issuable
immediately prior to such adjustment, by (ii) the fraction of which (A) the
numerator is the Warrant Price immediately prior to such adjustment and (B) the
denominator is the Warrant Price immediately following such adjustment.

                  2.6 Certificate as to Adjustments. In the case of each
adjustment or readjustment of the Warrant Price pursuant to this Section 2, the
Company at its expense will promptly compute such adjustment or readjustment in
accordance with the terms hereof and cause a certificate, signed by the
Company's Chief Financial Officer, setting forth such adjustment or readjustment
and showing in detail the facts upon which such adjustment or readjustment is
based to be delivered to the holder of this Warrant. The Company will furnish or
cause to be furnished to such holder a certificate setting forth (a) such
adjustments and readjustments, (b) the Warrant Price at the time in effect and
how it was calculated and (c) the number of shares of Common Stock issuable upon
exercise hereof and the amount, if any, of other property at the time receivable
upon the exercise of the Warrant.

                  2.7 Other Dilutive Events. If any event shall occur as to
which the provisions of Section 2 are not strictly applicable but the failure to
make any adjustment would not fairly protect the purchase rights represented by
this Warrant in accordance with the essential intent and principles of such
sections, then, in each such case, the Board of Directors of the Company shall
make such adjustment, if any, on a basis consistent with the essential intent
and principles established in Section 2, necessary to preserve, without
dilution, the purchase rights represented by this Warrant. The Company will
promptly notify the Investor of any such adjustments and shall make the
suggested adjustments.

                  2.8 No Dilution or Impairment. The Company will not, by
amendment of its certificate of incorporation or through any consolidation,
merger, reorganization, transfer of assets, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance

<PAGE>

or performance of any of the terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all
such action as may be necessary or appropriate in order to protect the rights of
the holder of this Warrant against dilution or other impairment.

         Without limiting the generality of the foregoing, the Company (a) will
not permit the par value of any shares of stock receivable upon the exercise of
this Warrant to exceed the amount payable therefor upon such exercise, (b) will
take all such action as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable shares of
stock on the exercise of the Warrants from time to time outstanding; and (c)
will not take any action which results in any adjustments of the Warrant Price
if the total number of shares of Common Stock issuable after the action upon the
exercise of all of the Warrants would exceed the total number of shares of
Common Stock then authorized by the Company's certificate of incorporation and
available for the purpose of issue upon such exercise.

                  2.9      Notices of Record Date etc. In the event of:

                           (a) any taking by the Company of a record of the
holders of any class of securities of the Company for the purpose of determining
the holders thereof who are entitled to receive any dividend (other than a cash
dividend payable out of earned surplus at the same rate as that of the last such
cash dividend theretofore paid) or other distribution, or any right to subscribe
for, purchase or otherwise acquire any shares of stock of any class or any other
securities or property, or to receive any other right;

                           (b) any capital reorganization of the Company, any
reclassification or recapitalization of the capital stock of the Company or any
transfer of all or substantially all of the assets of the Company to any other
person or any consolidation or merger involving the Company; or

                           (c) any voluntary or involuntary dissolution,
liquidation or winding-up of the Company,

the Company will mail to the holder of this Warrant at least fifteen (15) days
prior to the earliest date specified below, a notice specifying: (i) the date on
which any such record is to be taken for the purpose of such dividend,
distribution or right, and the amount and character of such dividend,
distribution or right; and (ii) the date on which any such reorganization,
reclassification, transfer, consolidation, merger, dissolution, liquidation or
winding-up is expected to become effective and the record date for determining
stockholders entitled to vote thereon and the time, if any such time is to be
fixed, as of which the holders of record of Common Stock shall be entitled to
exchange their shares of Common Stock for the securities or other property
deliverable upon such reorganization, reclassification, recapitalization,
consolidation, merger, transfer, dissolution, liquidation or winding-up.

         3. Fractional Shares. No fractional shares shall be issued in
connection with any exercise of this Warrant. In lieu of the issuance of such
fractional share, the Company shall make a cash payment equal to the then fair

<PAGE>

market value of such fractional share as determined in accordance with Section
1.5 hereof.

         4.       Representations and Warranties of the Company.

                  4.1 Authorization. The Company has full power and authority to
enter into this Warrant. This Warrant has been duly authorized, executed and
delivered by the Company and constitutes its valid and legally binding
obligation, enforceable in accordance with its terms.

                  4.2 Reservation of Common Stock. The Company shall at all
times reserve and keep available out of its authorized but unissued shares of
Common Stock, solely for the purpose of effecting the exercise of this Warrant,
such number of its shares of Common Stock, free from preemptive rights, as shall
from time to time be sufficient to effect the exercise of this Warrant, and if
at any time the number of authorized but unissued shares of Common Stock shall
not be sufficient to effect the exercise of the entire Warrant, in addition to
such other remedies as shall be available to the holder of this Warrant, the
Company will take such action as may be necessary to increase its authorized but
unissued shares of Common Stock to such number of shares as shall be sufficient
for such purposes. If any shares of its Common Stock to be reserved for the
purpose of issuance upon exercise of the Warrants require registration with or
approval of any governmental authority under any applicable law before such
shares of Common Stock may be validly issued or delivered, then it shall secure
such registration or approval, as the case may be, and maintain such
registration or approval in effect so long as so required.

                  4.3 Adjustment in Number of Shares Issuable and Purchase
Price. There has not been nor will there be any adjustment to the number of
shares issuable or the purchase price payable upon the exercise of any
securities of the Company convertible into or exchangeable for shares of Common
Stock resulting from the issuance or exercise of this Warrant.

                  4.4 Valid Issuance. This Warrant, when issued and delivered in
accordance with the terms hereof, will be duly authorized and validly issued,
and the Common Stock issuable upon the exercise hereof, when issued pursuant to
the terms hereof and upon payment of the exercise price, shall, upon such
issuance, be duly authorized, validly issued, fully paid and nonassessable.

         5. Privilege of Stock Ownership. Prior to the exercise of this Warrant,
the Investor shall not be entitled, by virtue of holding this Warrant, to any
rights of a stockholder of the Company, including (without limitation) the right
to vote, receive dividends or other distributions, exercise preemptive rights or
be notified of stockholder meetings, and such holder shall not be entitled to
any notice or other communication concerning the business or affairs of the
Company. Nothing in this Section 5, however, shall limit the right of the
Investor to be provided the notices described in Section 2 hereof or to
participate in distributions described in Section 2 hereof if the Investor
ultimately exercises this Warrant.

         6. Limitation of Liability. Except as otherwise provided herein, in the
absence of affirmative action by the holder hereof to purchase the Common Stock
in accordance herewith, no mere enumeration herein of the rights or privileges
of the holder hereof shall give rise to an obligation on such holder to purchase

<PAGE>

any securities or any liability of such holder for the purchase price or as a
stockholder of the Company, whether such obligation or liability is asserted by
the Company or by creditors of the Company.

         7. Representations and Warranties of the Investor. The Investor
represents and warrants to the Company as follows:

                  7.1 Investment Experience. The Investor represents that it can
bear the economic risk of its investment and has such knowledge and experience
in financial or business matters that it is capable of evaluating the merits and
risks of the investment in the Warrant and the Common Stock issuable upon
exercise hereof. The Investor also represents it has not been organized solely
for the purpose of acquiring the Warrant or the Common Stock issuable upon
exercise hereof.

                  7.2 Restricted Securities. The Investor understands that the
Warrant being issued hereunder and the Common Stock issuable upon exercise
hereof are characterized as "restricted securities" under the federal securities
laws inasmuch as they are being acquired from the Company in a transaction not
involving a public offering and have not been registered under the Act nor
qualified under applicable state securities laws and that under such laws and
applicable regulations such securities may not be resold without registration
under the Act, except in certain limited circumstances. In this connection, the
Investor represents that it is familiar with Rule 144 promulgated under the Act
("Rule 144"), as presently in effect, and understands the resale limitations
imposed thereby and by the Act.

                  7.3 Accredited Investor. The Investor is an "accredited
investor" within the meaning of Rule 501 of Regulation D promulgated under the
Act.

                  7.4 Legends. It is understood that the certificates evidencing
the Common Stock issuable upon exercise hereof may bear the following legend:

        "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD,
         OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE
         ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE
         SECURITIES UNDER SUCH ACT OR AN EXEMPTION TO SUCH ACT"

         8.       Transfers and Exchanges.

                  8.1 The Investor agrees not to sell, hypothecate, pledge or
otherwise dispose of any interest in the Warrant or the Common Stock issuable
upon exercise hereof in the United States, its territories, possessions or any
area subject to its jurisdiction, or to any person who is a national thereof or
resident therein (including any estate of such person), or any corporation,
partnership or other entity created or organized therein, other than in
accordance with the Act.

<PAGE>

                  8.2 Upon presentation to the Company's transfer agent of the
form of Assignment attached hereto, a new Warrant shall be issued to the new
holder hereof. New Warrants issued in connection with transfers or exchanges
shall not require the signature of the new holder hereof and shall be identical
in form and provision to this Warrant except as to the number of shares.

                  8.3 Each certificate evidencing the shares of Common Stock
issued upon exercise of this Warrant, or upon any transfer of such shares (other
than a transfer registered under the Act or any subsequent transfer of shares so
registered) shall, at the option of the Company, contain a legend, in form and
substance reasonably satisfactory to the Company and its counsel, restricting
the transfer of such shares to sales or other dispositions exempt from the
requirements of the Act.

                  8.4 Ownership of Warrants. The Company may treat the person in
whose name any Warrant is registered on the register kept at the office of the
Company maintained pursuant to Section 8.5(a) as the owner and holder thereof
for all purposes, notwithstanding any notice to the contrary, except that, if
and when any Warrant is properly assigned in blank, the Company may (but shall
not be obligated to) treat the bearer thereof as the owner of such Warrant for
all purposes, notwithstanding any notice to the contrary. A Warrant, if properly
assigned, may be exercised by a new holder without a new Warrant first having
been issued.

                  8.5 Transfer and Exchange of Warrants.

                           (a) The Company will serve as its own transfer agent
for purposes of this Warrant, where notices, presentations and demands in
respect of this Warrant may be made upon it, until such time as the Company
shall notify the holders of the Warrants of any change in such transfer agent;
and

                           (b) Upon the surrender of any Warrant, properly
endorsed, for registration of transfer or for exchange, the Company at its
expense will execute and deliver to or upon the order of the holder thereof a
new Warrant or Warrants of like tenor, in the name of such holder or as such
holder (upon payment by such holder of any applicable transfer taxes) may
direct, calling in the aggregate on the face or faces thereof for the number of
shares of Common Stock called for on the face or faces of the Warrant or
Warrants so surrendered.

         9. Successors and Assigns. The terms and provisions of this Warrant
shall be binding upon the Company and the Investor and their respective
successors and assigns, subject at all times to the restrictions set forth
herein.

         10. 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 case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to the Company,
and upon reimbursement to the Company of all reasonable expenses incidental
thereto, and upon surrender and cancellation of this Warrant, if mutilated, the
Company will make and deliver a new warrant of like tenor and dated as of such
cancellation, in lieu of this Warrant.

<PAGE>

         11. Saturdays, Sundays, Holidays, etc. 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 Sunday or shall be a legal holiday, then such
action may be taken or such right may be exercised on the next succeeding day
not a legal holiday.

         12. Amendments and Waivers. Any term of this Warrant may be amended and
the observance of any term of this Warrant may be waived (either generally or in
a particular instance and either retroactively or prospectively), only with the
written consent of the Company and the Investor. Any such amendment or waiver
shall be binding on the parties.

         13. Governing Law. The terms and conditions of this Warrant shall be
governed by and construed in accordance with Nevada law, without regard to
conflict of law provisions.

         14. Notices. Except as otherwise provided in this Warrant, any
requirement for a notice, demand or request under this Warrant will be satisfied
by a writing (a) hand delivered with receipt; (b) mailed by United States
registered or certified mail or Express Mail, return receipt requested, postage
prepaid; or (c) sent by Federal Express or any other nationally recognized
overnight courier service, and addressed as follows: if to the holder, at its
address as shown on the books of the Company; and if to the Company, to the
Company's principal office which is currently located at 36 W. 44th Street,
Suite 1209, New York, NY 10036, Attn: Chief Financial Officer. All notices that
are sent in accordance with this Section 14 will be deemed received by the
holder or the Company on the earliest of the following applicable time periods:
(i) the date the return receipt is executed; or (ii) the date delivered as
documented by the overnight courier service or the hand delivery receipt. Either
the holder or the Company may designate a change of address by written notice to
the other party.

         15. Remedies. The Company acknowledges and agrees that irreparable
harm, for which there may be no adequate remedy at law and for which the
ascertainment of damages would be difficult, would occur in the event any of the
provisions of this Warrant were not performed in accordance with its specific
terms or were otherwise breached. The Company accordingly agrees that the
holders shall be entitled to an injunction or injunctions to prevent breaches of
the provisions of this Warrant and to enforce specifically the terms and
provisions hereof in any court of the United States or any state thereof having
jurisdiction, in each instance without being required to post bond or other
security and in addition to, and without having to prove the inadequacy of other
remedies at law.

              Warrant for the Purchase of Shares of Common Stock of
                           X-Change Corporation, Inc.

                                      X-CHANGE CORPORATION, INC.

                                      By:     _____________________________
                                               Name:
                                               Title: President

                                               Dated:  January 15, 2002

<PAGE>

                                  SUBSCRIPTION

X-Change Corporation
36 W. 44th Street, Suite 1209
New York, NY  10036

Ladies and Gentlemen:

         The undersigned, _______________________ , hereby elects to purchase,
pursuant to the provisions of the Warrant dated, January 15, 2002 held by the
undersigned, ___________ shares of the Common Stock of X-Change Corporation, a
Nevada corporation, and tenders herewith payment of the purchase price of such
shares in full.

         In exercising its rights to purchase such Common Stock, the undersigned
hereby confirms the investment representations made in Section 7 of such
Warrant.

Dated: ______________, 200_.

                                               ______________________________

                                               By ___________________________

                                    Address:   ______________________________

                                               ______________________________

<PAGE>

                              [FORM OF ASSIGNMENT]

The undersigned hereby assigns this Warrant to

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
         (Print or type name, address and zip code of assignee)

Please insert Social Security or other
identifying number of assignee

_______________________________________

and irrevocably appoints ____________________________ as agent to transfer this
Warrant on the books of the Company. The agent may substitute another to act for
him or it.

Dated:______________________________          Signed:________________________

______________________________________________________________________________
(Sign exactly as name appears on the front of this Warrant)

Dated:_______________________________          Signed:_______________________
                                               Name:_________________________
                                               Title:________________________<PAGE>
                                                                   Exhibit 10.16

                                    AGREEMENT

      This Agreement (the "Agreement") is made and entered into this __th day of
May 2001, by and between AUTHENTIDATE HOLDING CORP. (f/k/a BITWISE DESIGNS,
INC.), a Delaware corporation ("Holding"), AUTHENTIDATE, INC., a Delaware
corporation ("Authentidate"), and INTERNET VENTURE CAPITAL, LLC, a Delaware
limited liability company ("IVC"). Holding, Authentidate and IVC may be referred
to herein individually as a "Party" or collectively as the "Parties."

                                    RECITALS

      WHEREAS, Authentidate has created a service accessible through the
Internet allowing users to verify the date, time, content and authorship of
documents, digital files and other images;

      WHEREAS, Holding is the holder of a majority of the outstanding shares of
Authentidate;

      WHEREAS, Authentidate and Holding wish to develop and market a service
permitting the authentication and registration of autographed sports and
entertainment memorabilia;

      WHEREAS, IVC has the ability to assist in the development and
implementation of a service permitting the authentication and registration of
autographed sports and entertainment memorabilia in the United States and
international markets; and

      WHEREAS, the Parties desire to enter into this Agreement as the definitive
agreement governing the manner through which the Parties will develop and market
a service permitting the authentication and registration of autographed sports
and entertainment memorabilia;

      NOW, THEREFORE, the Parties agree as follows.

                                    ARTICLE I
                                   DEFINITIONS

      1.0   For the purposes of this Agreement:

      "Affiliates" of any Party means any entity that controls, is controlled by
or is under common control with such Party. For purposes of this definition,
"control" will mean the possession, directly or indirectly, of a majority of the
voting power of such entity (whether through ownership of securities or
partnership or other ownership interests, by contract or otherwise).

      "Authentidate License" means the non-exclusive license or licenses to the
Authentidate Software to be granted to Newco by Authentidate to operate the
Service in the Territory.
<PAGE>
      "Authentidate Service" means the service provided by Authentidate whereby
data may be date and time stamped through application of the Authentidate
Software.

      "Authentidate Software" means the computer-readable media incorporating
the Authentidate Technology.

      "Authentidate Technology" means the intellectual property designed to
verify the authenticity of digital data by employing a secure clock to stamp the
date and time on captured data and which is the subject of a certain patent
application (No. 09/259,135) filed with the United States Patent and Trademark
Office and all continuations, continuations in part, reissues, reexaminations
and divisions, and foreign counterparts thereof ("Related Patents").

      "Board of Directors" means the Board of Directors of Newco as defined in
Section 6.1 off this Agreement.

      "Business Day" means any day on which the New York Stock Exchange conducts
regular trading activities.

      "Business Plan" means the Business Plan developed by Newco to offer the
Service in the Territory through Newco pursuant to Section 5.1(a).

      "Common Stock" means the shares of Newco Common Stock, par value $.001 per
share.

      "Improvements" means (i) all derivative works, discoveries and/or
inventions, whether patentable or not, made by Authentidate or a third-party,
acting alone or jointly, that constitutes a modification, enhancement, extension
or improvement of the Authentidate Technology and (ii) all Intellectual Property
developed by Authentidate or a third-party, acting alone or jointly, including
any and all applications or registrations therefor.

      "Intellectual Property" means, wherever existing in the world, (i)
patents, whether in the form of utility patents or design patents, and all
pending patent applications for registration thereof, (ii) trademarks, trade
names, service marks, domain names, designs, logos, trade dress and trade
styles, whether or not registered, and all pending applications for registration
thereof, (iii) copyrights, whether or not registered, and all pending
applications for registration thereof, (iv) know-how, inventions, research
records, trade secrets, confidential information, product designs, engineering
specifications and drawings, technical information, formulas, customer lists,
supplier lists and market analyses, (v) computer software and programs, and
related flow charts, programmer notes, documentation, updates, and data, whether
in object or source code form, and (vi) all other similar intellectual property
rights, whether or not registered.

      "Newco" means a C corporation to be organized by the Parties which will
serve as the vehicle through which the Parties will develop and market the
service permitting the authentication and registration of autographed sports and
entertainment memorabilia.

                                        2
<PAGE>
      "Service" means the authentication process developed, and to be developed,
by Newco to authenticate and register sports and entertainment memorabilia.

      "Territory" means all countries except as limited to the extent necessary
to avoid any conflict with the rights previously granted to Authentidate
International Holdings, A.G. and its subsidiaries, if any, pursuant to the Joint
Venture Agreement, dated March 2, 2000, between Holding, Authentidate and
Windhorst New Technologies, AGi.G.

      "Transaction License" means a non-exclusive license granted by
Authentidate to use the Authentidate Service in accordance with the terms
therein.

      "Transfer" means the direct or indirect sale, transfer, pledge, assignment
or other disposition of or mortgage, hypothecation, or other encumbrance or
permitting or suffering of any encumbrance of all or any part of the equity
interests in Newco.

                                   ARTICLE II
                         PURPOSE AND SCOPE OF AGREEMENT

      2.1   Condition Precedent

      Subject to the initial payment by Holding to Newco of $250,000 as set
forth in Section 3.1(b)(2) of this Agreement, the remaining obligations of
Holding under this Agreement shall not take effect until Holding completes a
financing of not less than $10,000,000 (the "Financing").

      2.2   Purpose

      (a)   The Parties jointly undertake, within the Territory, and through
Newco to establish the Service permitting the authentication and registration of
sports, entertainment and other memorabilia. The Service is a multi-step process
whereby a unique code is dynamically generated for and attached to each item of
memorabilia and then registered and reserved on Newco's website. Newco's
customers will receive some form of a registration containing information about
the item, including an identification code. The registration record will be
administered by Newco so that only one such record will be valid at any given
time. The Service may evolve as required over time.

      (b)   Newco will initially establish the Service in the United States and
in such other countries located in the Territory as shall be determined by the
Board of Directors.

      (c)   Except as explicitly set forth in this Agreement, neither Holding,
Authentidate nor IVC, nor their respective Affiliates, shall have any obligation
to conduct business exclusively with the other Party, to offer other business
opportunities to any other Party, or refrain from competition in any manner
whatsoever regardless of whether the Parties are jointly engaged in (or may also
engage in) a related activity at any time.

                                        3
<PAGE>
      2.3   No Partnership

            Nothing in this Agreement shall be construed as creating between the
Parties a partnership, fiduciary or other similar relationship or a joint
venture except as expressly provided for herein. Nothing in this Agreement shall
create or imply any exclusive relationship or any obligation to inform any other
Party, offer to any other Party or to include any other Party in any opportunity
which may be available to one of the Parities in the future except as provided
in the License.

                                   ARTICLE III
                            CAPITALIZATION OF A-GRAPH

      3.1   Initial Capitalization

      (a)   Upon its formation, Newco shall have an authorized capitalization of
2,000,000 shares of Common Stock, par value $.001 per share, and 500,000 shares
of Preferred Stock, par value $.10 per share.

      (b)   In consideration of the issuance of shares in Newco:

            (i)   IVC or affiliates of IVC shall be given credit, as a capital
                  contribution, for $250,000 of equipment and other assets,
                  including development costs which IVC contributed to the
                  business development of AuthentiGraph.com, Inc. prior to the
                  date of this Agreement; the conversion of the IVC Contribution
                  into Newco equity shall be in full settlement of any and all
                  claims IVC may have against Holding, Authentidate and their
                  Affiliates arising out of the development of the Service;

            (ii)  Subject to Section 2.1 of this Agreement, Holding shall invest
                  an aggregate of $1 million in Newco, according to the
                  following schedule: $250,000 paid to Newco within 5 days from
                  the date this Agreement is executed; $250,000 upon the
                  execution of an employment agreement between Newco and the
                  person selected to be the Chief Executive Officer of Newco;
                  $250,000 after Newco's business plan has been reviewed and
                  approved by the CEO and Board of Directors of both Holding and
                  Authentidate; and assuming other conditions are satisfied,
                  $250,000 six months after the Initial Closing.

      3.2   Shares of Common Stock of Newco (the "Newco Shares")

            The initial equity interests in Newco shall be held as follows:

            (a)   Holding shall own 100,000 shares of the Common Stock of Newco;

                                        4
<PAGE>
            (b)   IVC shall own 100,000 shares of the Common Stock of Newco; and

            (c)   IVC shall deliver to Nicholas Themelis such number of the
                  Newco Shares owned by IVC as shall equal 20% of the amount of
                  Newco Shares owned by IVC (the "Themelis Shares"). The
                  Themelis Shares shall be subject to such restrictions as
                  specified in Article V of this Agreement.

      3.3   Representations Regarding Themelis Shares

            Nicholas Themelis hereby represents and warrants that the grant to
him of the Themelis Shares is in consideration of his waiver to all compensation
due him pursuant to Article X(D) of his Employment Agreement with Holding, dated
February 28, 2000 and that neither Holding, Newco, nor any subsidiary or
affiliate of Newco has any further obligation to grant Themelis compensation
relating to the Themelis Shares. Themelis hereby, releases and discharges
Holding, Newco, their subsidiaries, affiliates, directors, officers, successors,
present employees, former employees, agents, representatives and assigns (the
"Released Persons") from any and all claims, demands or causes of action of any
kind or nature whatsoever which Themelis may have or could claim to have against
the Released Persons, from the beginning of the world up to the date of this
Agreement arising out of Article X(D) of the February 28, 2000 Employment
Agreement.

      3.4   Additional Capital

      (a)   Holding will not be under any obligation to contribute additional
capital to Newco or be responsible for any debts or obligations of Newco and all
current intercompany obligations between Newco and Holding outstanding as of the
date of this Agreement shall be applied against Holding's capital contribution.

      (b)   Subsequent to the execution of this Agreement, the Parties agree to
seek additional financing to support the Parties' purpose, as described in
Article II of this Agreement, in entering into this Agreement.

                                   ARTICLE IV
                                     CLOSING

      4.1   Formation of Newco

            (a)   At or prior to the Closing, the Parties shall cause to be
formed under the laws of the State of the State of Delaware a new corporation
("Newco") whose corporate name shall be as follows:

                                        5
<PAGE>
                  (i)   In the event that Authentidate and Holding are able to
                  secure the name AuthentiGraph from the owner of the trademark
                  "AuthentiGraph", then the name of Newco shall be
                  AuthentiGraph;

                  (ii)  In the event Authentidate and Holding are unable to
                  secure the name AuthentiGraph, the name of Newco shall be
                  AuthentidateSE , Inc., or such other name upon which the
                  Parties mutually agree.

            (b)   Upon its formation, Newco shall execute an Agreement whereby
it consents to be bound to the terms of this Agreement applicable to it.

      4.2   Closing

            (a)   The Closing shall occur at the offices of Goldstein & DiGioia,
LLP, 369 Lexington Ave., New York, NY 10017, or at such other place as shall be
agreeable to the parties, at 1:00 p.m. , Eastern Time, on May 18, 2001 or such
other date as be agreeable to the parties.

            (b)   At the Closing the following actions shall be taken:

                  (i)   The certificates representing the number of Shares of
Common Stock issuable to Holding and IVC, as set forth in Section 3.1 of this
Agreement, shall be issued to Holding and IVC;

                  (ii)  Authentidate shall deliver to Newco a non-exclusive
Transaction License Agreement governing Newco's use of the Authentidate Service;

                  (iii) The Themelis Shares shall be executed and delivered to
Nicholas Themelis; and

                  (iv)  All agreements shall be executed by the parties
simultaneously at the Closing.

                                    ARTICLE V
                     SHARE CERTIFICATES; TRANSFERS OF SHARES

      5.1   Share certificates if issued by Newco shall be in registered form.

      5.2   The following legends shall be placed on the certificate(s)
evidencing the Newco Shares:

      THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
      1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAWS AND
      NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED,
      SOLD, PLEDGED, ASSIGNED OR OTHERWISE

                                        6
<PAGE>
      TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO
      IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS,
      OR (2) THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF
      SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE REASONABLY
      SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED,
      SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED
      WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR
      APPLICABLE STATE SECURITIES LAWS.

      Transfer of the shares represented by this certificate is restricted
      by the terms of a certain Agreement dated as of May 7, 2001, a copy
      of which is on file at the office of the Company. No sale,
      assignment, pledge, encumbrance or other transfer shall be effective
      unless and the terms and conditions of the Agreement shall have been
      complied with in full.

      5.3   Right of First Refusal.

            (a)   Subject to Section 5.4, whenever and as often as any Party
desires to sell any Newco Shares (referred to in Sections 5.3 and 5.4 as
"Restricted Stock"), such proposed sale must be for an aggregate consideration
of at least $100,000 and pursuant to a bona fide written offer to purchase such
shares. In such event, the Party desiring to sell Restricted Stock (the "Selling
Shareholder") shall give written notice to each other Party (for purposes of
Sections 5.3 and 5.4 each, an "Offeree" and collectively, the "Offerees") and
also to Newco to such effect, enclosing a copy of such offer and specifying the
number of shares of Restricted Stock that the Selling Shareholder desires to
sell, the name of the person or persons to whom the Selling Shareholder desires
to make such sale and the consideration per share of Common Stock that has been
offered in connection with such offer. In the event that such consideration
includes non-cash consideration, the dollar value of such non-cash consideration
shall be its fair market value, as reasonably determined by the Board of
Directors ("Fair Market Value").

            (b)   Upon receipt of the Notice, the Offerees shall initially have
the first right and option to purchase the shares proposed to be sold for the
same consideration, at the same purchase price and on the same terms as
specified in the Notice, pro rata on the basis of the number of shares of Common
Stock then held by them, exercisable for 20 Business Days after service of the
Notice. Failure of any Offeree to respond to the Notice within such 20-Business
Day period shall be deemed to constitute a notification to the Selling
Shareholder of such Offeree's decision not to exercise the first right and
option to purchase shares of Restricted Stock under this Section 5.3. If any
Offeree fails to exercise his, her or its first right and option, the Selling
Shareholder shall give written notice to each of the other Offerees who has
elected to purchase his, her or its pro rata share of the shares of Restricted
Stock proposed to be transferred, and each such Offeree shall have the right,
exercisable for a period of three days from the date of receipt of such notice,
to purchase the remaining shares of Restricted Stock, pro rata on the basis of
the number of shares of Common Stock then held by all such electing Offerees
exercising such

                                        7
<PAGE>
right to purchase such remaining shares or in such other proportions as they may
agree. An Offeree may exercise his, her or its right and option to purchase such
Restricted Stock by giving written notice of exercise to the Selling Shareholder
and to the Company within the period or periods specified above, specifying the
date (not later than three days from the date of expiration of all applicable
first rights and options to purchase shares under this paragraph) upon which
payment of the purchase price for the shares purchased pursuant to this
paragraph shall be made. The Selling Shareholder shall deliver to the Offeree(s)
at Newco's principal office, at least one day prior to the payment date, wire
transfer instructions (if funds are to be wired) and, prior to the close of
business on the payment date specified in such notice, the certificate or
certificates representing the shares being purchased by the Offeree(s), properly
endorsed for transfer, free and clear of any restrictions, Liens or claims,
against payment of the purchase price therefor by the Offeree(s) in immediately
available funds.

            (c)   In the event that all of the shares of Restricted Stock
proposed to be transferred are not purchased by the Offerees, Newco shall have
the right and option to purchase the balance of the shares proposed to be
transferred for the same consideration, at the purchase price per share
specified in the Notice and on the same terms as specified in the Notice,
exercisable for 15 Business Days after expiration of the option period set forth
in Section 5.3 (b). Failure of Newco to respond to such Notice within such 15
day period shall be deemed to constitute a notification to the Selling
Shareholder of Newco's decision not to exercise the right and option to purchase
shares of Restricted Stock under this Section 5.3. Newco may exercise its right
and option to purchase such Restricted Stock by giving written notice of
exercise to the Selling Shareholder within such 15-Business Day period,
specifying the date (not later than three days from the date of such notice)
upon which payment of the purchase price for the shares shall be made. The
Selling Shareholder shall deliver to Newco's principal office, at least one day
prior to the payment date, wire transfer instructions (if funds are to be wired)
and, prior to the close of business on the payment date specified in such
notice, the certificate or certificates representing the shares being purchased
by Newco, properly endorsed for transfer, free and clear of any restrictions,
Liens or claims, against payment of the purchase price therefor by Newco in
immediately available funds.

            (d)   If all the shares of Restricted Stock proposed to be
transferred are not purchased by the Offerees and Newco in accordance with this
Section 5.3, the Selling Shareholder shall not be required to sell any of the
shares of Restricted Stock proposed to be transferred to the Offerees or to
Newco, and, during the 60-day period commencing on the expiration of the rights
and options provided for in this paragraph, may sell all (but not less than all)
of such shares to the transferee named in the Notice for a consideration equal
to or greater than the consideration specified in the Notice, free of the
restrictions contained in Section 5.3 (but subject to the other terms and
conditions hereof).

            (e)   Notwithstanding the foregoing, any Party shall have the right
to transfer and sell up to 10% of the shares of Common Stock beneficially owned
on the date hereof.

                                        8
<PAGE>
            (f)   For the purposes of this Section 5.3, the term "Common Stock"
shall be deemed to include the Themelis Shares.

      5.4   Co-Sale Rights.

            (a)   Whenever and as often as any Party shall receive a bona fide
offer to purchase any shares of Restricted Stock from a prospective purchaser
that the Selling Shareholder wishes to accept, each Offeree shall have the
right, at his, her or its option, either to exercise his, her or its rights
under Section 5.3 or to participate in the sale to the prospective purchaser
pursuant to this Section 5.4. The Selling Shareholder shall use his, her or its
best efforts to arrange for the sale to the prospective purchaser of, in the
aggregate, such shares of Common Stock held by the Offerees as shall equal the
number of shares proposed to be sold by the Selling Shareholder. For purposes of
this Section 5.4, an Offeree may elect to sell Common Stock at the purchase
price per share specified for the Common Stock in the Notice. If the prospective
purchaser will not purchase all of the shares of Restricted Stock and Common
Stock that the Selling Shareholder and the electing Offerees wish to sell
pursuant to this Section 5.4, the number of Restricted Shares and shares of
Common Stock the Selling Shareholder and Offerees shall be entitled to sell
shall be reduced on a pro rata basis to an amount equal to the aggregate number
of Restricted Shares and shares of Common Stock the prospective purchaser is
willing to purchase. The number of shares each Offeree shall be entitled to sell
to such prospective purchaser shall be determined pro rata based on the relative
number of shares of Common Stock owned by each Offeree. An Offeree may exercise
his, her or its right under this paragraph by written notice given within seven
days after receipt of the Notice specifying the number of shares of Common Stock
that such Offeree wishes to sell.

            (b)   If none of the Offerees demand the purchase of any of their
shares of Common Stock as provided by subsection 5.4, then the Selling
Shareholder shall be free to transfer, in accordance and in full compliance with
the terms and provisions of this Agreement, and sell his shares of Restricted
Stock not purchased by any Offeree, but only to the transferee designated in the
Notice and upon the same terms and conditions stated in the Notice within 60
days of the service of the Notice. Thereafter, any remaining shares of
Restricted Stock proposed to be transferred by any Party shall again be
restricted by, and may not be transferred without full compliance with, this
Agreement.

            (c)   Notwithstanding the foregoing, any Party shall have the right
to transfer and sell up to 10% of the shares of Common Stock beneficially owned
on the date hereof.

            (d)   For the purposes of this Section 5.4, the term "Common Stock"
shall be deemed to include the Themelis Shares.

      5.5   At the request of the underwriter in the initial public offering of
the Common Stock of Newco, holders of shares of Common Stock of Newco, including
the shares issuable upon exercise of the Themelis Options, agree to enter into a
Lock-up Agreement with the

                                        9
<PAGE>
Underwriter for a period of time not to exceed twelve months, or such other
shorter period of time requested by the underwriter, from the date of the
initial public offering.

      5.6   Family Gifts and Transfers to Affiliates. Notwithstanding the rights
granted to the Parties pursuant to sections 5.3 and 5.4 of this Agreement, any
Party at any time, may transfer any shares of Common Stock which he may now or
hereafter own to (a) any immediate family member or any trust or custodial
account for the sole benefit of himself or members of his immediate family and
(b) in accordance with applicable laws of descent and distribution, provided, in
each case, that the transferee of any such Shareholder agrees to the terms of
this Agreement. In addition, any Party may Transfer its interest in Newco to an
Affiliate of such Party, provided that such any such Affiliate agrees to the
terms of this Agreement.

      5.7   Any Transfer by a Party of an interest in Newco shall be effective
only upon the execution and delivery by the transferor of an appropriate
irrevocable and unconditional guarantee to continue to be bound by the
provisions of this Agreement and the By-laws and Charter of Newco together with
instruments of assumption under which the Affiliate agrees to be bound by this
Agreement and the By-laws and Charter of Newco. An assignment or Transfer shall
not release the transferor of any of its obligations hereunder or under the
By-laws and Charter of Newco.

      5.8   Any Party may Transfer this Agreement and all of its rights and
obligations hereunder to any Party acquiring all or substantially all of the
business of such Party whether by merger, sale of assets or otherwise.

                                   ARTICLE VI
                            BUSINESS PLAN OF A-GRAPH

      6.1   Business Plan

            (a)   The individual appointed to be the Chief Executive Officer of
Newco will develop promptly the Business Plan for each of three fiscal years of
Newco. The Business Plan shall include, but not be limited to, a description of
the business, marketing, technology and operations of Newco.

            (b)   Newco shall initially draft the first Business Plan which
shall include a strategy for developing the Service in the United States during
the year 2001.

            (c)   No Party shall have the right to represent any other Party in
any negotiations with third parties nor enter into any agreement with a third
party for the account of the other Parties or their joint account, without the
prior written approval of the unrepresented Party. The Party engaging in such
unauthorized conduct and/or causing liability therefrom shall be in breach of
this Agreement and shall hold the other Parties harmless for any claims raised
by a third party.

                                       10
<PAGE>
                                   ARTICLE VII
                               MANAGEMENT OF NEWCO

      7.1   Board of Directors

            (a)   The business and affairs of Newco will be managed initially
under the direction of a seven person Board of Directors, consisting of the
following persons: two individuals to be nominated by IVC; two individuals to be
nominated by Holding; the individual elected to serve as the Chief Executive
Officer of Newco and two individuals selected by the five other individuals. The
Parties agree to vote their shares for such persons.

            (b)   The Board of Directors shall oversee strategic planning and
the implementation of the Business Plans.

            (c)   The consent of the IVC and Holding designees to the Board of
Directors shall be required to approve any transaction which will result in a
Change of Control of Newco. For the purposes of this section, a "Change of
Control" of Newco shall be deemed to have occurred if there shall be consummated
(i) any consolidation or merger of the Newco in which Newco is not the
continuing or surviving corporation or pursuant to which shares of Newco's
Common Stock would be converted into cash, securities or other property, other
than a merger of Newco in which the holders of Newco's Common Stock immediately
prior to the merger have the same proportionate ownership of common stock of the
surviving corporation immediately after the merger, or (ii) any sale, lease,
exchange or other transfer (in one transaction or a series of related
transactions) of all, or substantially all, of the assets of Newco, or (iii) the
stockholders of Newco approve any plan or proposal for the liquidation or
dissolution of Newco, or (iv) any person (as such term is used in Sections 13(d)
and 13(d)(2) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act")), shall become the beneficial owner (within the meaning of Rule 13d-3
under the Exchange Act) of 20% or more of Newco's outstanding Common Stock,
except in connection with a transaction approved by the Board of Directors; or
(v) during any period of two consecutive years, individuals who at the beginning
of such period constituted the entire Board of Directors shall cease for any
reason to constitute a majority thereof unless the election, or the nomination
for election by Newco's stockholders, of each new director was approved by a
vote of at least two-thirds of the directors then still in office who were
directors at the beginning of the period.

            (d)   With respect to the persons nominated by Holding and IVC to
serve on the Board of Directors, in the event that the position of a Director
held by such person becomes vacant, for any reason, the Parties agree to cause
their shares to be voted to elect as a replacement for such Director a person
nominated by either the party who nominated the Director whose position is
vacant.

                                       11
<PAGE>
      7.2   Meetings of the Board of Directors

            (a)   Notwithstanding mandatory Delaware law, the following
provisions shall be applicable to the meetings of the Board of Directors, unless
otherwise determined by the Board of Directors of Newco:

                  (i)   The Board of Directors shall hold at least one meeting
per quarter either in person or by conference call.

                  (ii)  Any two members of the Board of Directors may at any
time call for a special meeting of the Board of Directors upon five (5) Business
Days prior notice to the Members of the Board of Directors, specifying the date
and agenda of the meeting. If the member required to specify the time and place
of the meeting fails to do so within twenty-four hours of receipt of a request
therefor, the member calling for the special meeting shall specify the time and
place within 24 hours thereafter. Such notice may be waived in writing before or
after such meeting or by attendance at such meeting. A member may propose an
agenda item for discussion at such meeting by written notice to the other
members, unless waived. In addition, any item which the members agree to discuss
at a Board of Directors meeting shall be considered to be an agenda item at such
meeting.

                  (iii) Regular meetings of the Board of Directors shall be held
at the principal offices of Newco, unless the members establish any other place
for meetings by mutual agreement. Special meetings shall be held in the location
and at the time specified (in accordance with this subsection) by the member
which did not call the meeting.

                  (iv)  Members of the Board of Directors may participate in
such meetings by means of a conference telephone or similar means of
communication if all persons participating in the meeting are able to hear one
another, and any such Director shall be deemed to be present at such meeting.
Any action that may be taken at a meeting may also be taken by unanimous written
consent.

                  (v)   Meetings of the Board of Directors may be attended by
guests invited by the members of the Board of Directors pursuant to the
unanimous approval of the Board of Directors.

      7.3   Chief Executive Officer

            (a)   Until such time as a Chief Executive Officer of Newco is
employed by Newco pursuant to Section 7.3(b) of this Agreement, Mr. John T.
Botti shall act as the interim President and Chief Executive Officer of Newco

            (b)   As soon as possible after the execution and delivery of this
Agreement, the Board of Directors shall appoint the Chief Executive Officer of
Newco (the "Newco CEO") who shall have the following duties and
responsibilities:

                                       12
<PAGE>
                  (i)   to prepare reports and recommendations for presentation
to the Board of Directors, including, without limitation, in respect of
decisions which require the approval of the shareholders of Newco;

                  (ii)  to prepare necessary Business Plans for Newco for
approval by the Board of Directors as well as such overall strategic, marketing,
advertising and other general plans which require approval by the Board of
Directors;

                  (iii) to prepare proposals for investment by the Board of
Directors;

                  (iv)  to implement the resolutions of the Board of Directors;

                  (v)   to advise, supervise and coordinate the Newco business,
operations and management; and

                  (vi)  to oversee all day to day operating aspects of the
business of Newco.

            (b)   The Newco CEO shall report to the Board of Directors.

      7.4   Accounting

            (a)   Newco shall keep all books of accounts and make all financial
reports in accordance with the standards prescribed by United States laws and
regulations and conform to Generally Accepted Accounting Principles in the
United States. Newco shall prepare (1) preliminary financial statements, within
thirty days after the end of each of the first three quarters of it's fiscal
year, followed by unaudited finalized versions thereof within five days
thereafter; (2) unaudited finalized financial statements, including without
limitation a balance sheet and income statement, within thirty days after the
end of the fourth quarter and its entire fiscal year; (3) audited financial
statements within sixty days of the end of its entire fiscal year; and (4) such
further reports as shall be required by the Board of Directors. Copies of all
such reports shall immediately be forwarded to IVC, Holding and Authentidate.
Newco shall provide any financial statement required by Holding to meet its
reporting requirements as a public company, including audited financial
statements within 60 days of Newco's the fiscal year end. Newco shall
additionally retain or employ a qualified accountant to prepare the quarterly
financial statements and maintain its accounting records on a weekly basis.

            (b)   Certified Public Accountants

            Newco shall, at its expense, appoint a firm of certified public
accountants of good repute, and acceptable to the firm of accountants of
Holding, to audit its books of account for each accounting period. Said
certified public accountants shall issue an audit report before the regular
meeting of Shareholders, copies of which shall be forwarded to each Party. Each
audit report shall be in reasonable detail and shall be in conformance with
generally accepted accounting principles. Said accountants shall prepare all
Federal, state and local income tax returns

                                       13
<PAGE>
according to the timetables established by the tax authorities. Sales tax
returns, if applicable, will be prepared by Newco.

            (c)   Right of Inspection

            At all times after Newco's incorporation, each Party shall have the
right by its duly authorized representative or accountant to inspect and have
full access to all properties, books of account, records and the like of Newco
and Newco shall furnish to the requesting Party all information concerning the
same which the requesting Party may reasonably require in connection with a
complete examination thereof, and the requesting Party shall have the right to
inspect and make copies from the books and records of Newco at all reasonable
times, upon reasonable notice.

            (d)   Fiscal Year

            Newco shall initially adopt June 30 as the end of its fiscal year.

                                  ARTICLE VIII
                             ADDITIONAL OBLIGATIONS

      8.1   Upon execution of this Agreement and in further consideration for
the issuance of the Newco Shares, IVC shall use its best efforts to obtain a
general release in favor of Holding, Authentidate, Newco and such other persons,
if any, as determined by the Board of Directors concerning the Parties' prior
business relationships with third parties..

            (b)   IVC hereby releases Holding, Authentidate, Newco, William
McLean, Siupeli Malamala and their affiliates, agents and employees, from any
and all liabilities owing to it and its affiliates arising out of any act or
omission prior to the date of this Agreement relating to any business or
proposed business activity of Newco, William Fleming, TracerCode, Total Sports
Concepts, Inc. and/or affiliated parties.

      8.2   As soon as practicable after the Closing, Newco shall obtain general
liability insurance of not less than $1,000,000 and naming Holding and IVC as
additional insureds.

      8.3   Upon or as soon as practicable after the Closing, Newco shall enter
into employment agreements with Siupeli Malamala and William McLean, in the form
annexed as Exhibits 8.3 (a) and (b) to this Agreement.

                                       14
<PAGE>
                                   ARTICLE IX
                                  OTHER RIGHTS

      9.1   Newco Name; Trademarks and Other Rights

            (a)   Authentidate and Holding hereby covenant, at its cost, to be
no more than $25,000, to take all actions reasonably necessary to secure
protection for Newco of the name, Trademark and domain name "AuthentiGraph,"
including to undertake prosecution or defense of litigation to establish or
protect Newco's interest in the name AuthentiGraph. Newco will be responsible
for the cost above this limit. Newco recognizes that the domain name
"AuthentiGraph" is currently held by an unrelated third party and is not
currently available.

            (b)   Authentidate acknowledges that the title to the research
performed by Cap Gemini of America, Inc. regarding the Service shall be
transferred to Newco.

                                    ARTICLE X
                         REPRESENTATIONS AND WARRANTIES

      10.1  Mutual Representations and Warranties

            (a)   Representations and Warranties. Each Party represents and
warrants to each other Party that such Party has the full corporate right, power
and authority to enter into this Agreement and to perform the acts required of
it hereunder; and the execution of this Agreement by such Party, and the
performance by such Party of its obligations and duties hereunder, do not and
will not violate or contravene any applicable law or regulation or any agreement
to which such Party is a party or by which it is otherwise bound, and when
executed and delivered by such Party, this Agreement will constitute the legal,
valid and binding obligation of such Party, enforceable against such Party in
accordance with its terms.

      10.2  Representations and Warranties of Holding and Authentidate

            (a)   Holding and Authentidate represent and warrant that:

                  (i)   to their knowledge, Authentidate is the sole and
                        exclusive owner of the Authentidate Sofware, free and
                        clear of any claims, liens, charges or encumbrances;

                  (ii)  Authentidate has filed a patent application with respect
                        to Authentidate Technology with the United States Patent
                        and Trademark Office and Authentidate is aware of no
                        impediments to registration pending oppositions thereto;

                  (iii) Holding has transferred to Authentidate such of its
                        interest in the Authentidate Technology as necessary to
                        protect Newco's interest as established by this
                        Agreement and covenants that it will transfer to
                        Authentidate any such future rights that it may obtain
                        in the Authentidate Technology;

                                       15
<PAGE>
                  (iv)  Subject to the license granted to Authentidate
                        International Holdings, A.G., Authentidate and Holding
                        have neither licensed the Authentidate Software to any
                        other person or entity in a manner which may interfere
                        with the use thereof by Newco; and

                  (v)   to the best knowledge of Holding and Authentidate, there
                        are no restrictions, whether by contract, operation of
                        law, or otherwise, on their ability to grant to Newco
                        the Authentidate License, subject to the License granted
                        to Authentidate International Holdings, A.G.

      10.3  Representations and Warranties of IVC

            IVC hereby represents and warrants that:

            (a)   It is an "Accredited Investor" as that term is defined in
Section 501(a) of Regulation D promulgated under the Securities Act of 1933, as
amended (the "Securities Act").

            (b)   IVC has conducted its own due diligence review of Holding,
Authentidate and Newco to the extent it deems necessary and has not relied on
the statements, advice or recommendations or any other person or entity in
connection with the transactions contemplated hereby.

            (c)   It has such knowledge and experience in finance, securities,
investments and other business matters so as to be able to protect its interests
in connection with this transaction.

            (d)   It understands the various risks of an investment in Newco as
proposed herein and can afford to bear such risks, including, but not limited
to, the risks of losing its entire investment.

            (e)   It acknowledges that no market for the shares of common stock
of Newco presently exists and none may develop in the future and that it may
find it impossible to liquidate its investment at a time when it may be
desirable to do so, or at any other time.

            (f)   It has been advised that the Newco Shares have not been
registered under the Securities Act, and that all the foregoing securities will
be issued on the basis of the statutory exemption provided by Section 4(2) of
the Securities Act and/or Regulation D promulgated thereunder relating to
transactions by an issuer not involving any public offering and under similar
exemptions under certain state securities laws; that this transaction has not
been reviewed by, passed on or submitted to any Federal or state agency or
self-regulatory organization where an exemption is being relied upon, and that
Newco's reliance thereon is based in part upon the representations made by IVC
in this Agreement. IVC acknowledges that it has been informed by Holding,
Authentidate and Newco, or is otherwise familiar with, the nature of the
limitations imposed by the Securities Act and the rules and regulations
thereunder on the transfer of securities. In particular, IVC agrees that no
sale, assignment or transfer of the Newco Shares

                                       16
<PAGE>
shall be valid or effective, and Newco shall not be required to give any effect
to any such sale, assignment or transfer, unless (i) the sale, assignment or
transfer of the foregoing securities are registered under the Securities Act,
(ii) the foregoing securities are sold, assigned or transferred in accordance
with all the requirements and limitations of Rule 144 under the Securities Act,
it being understood that Rule 144 is not available at the present time for the
sale of the foregoing securities, or (iii) such sale, assignment, or transfer is
otherwise exempt from registration under the Securities Act. IVC acknowledges
that the Newco Shares shall be subject to a stop transfer order and the
certificate or certificates evidencing any underlying shares shall bear the
legend set forth in Section 5.2.

            (g)   IVC will acquire the Newco Shares for its own account for
investment and not with a view to the sale or distribution thereof or the
granting of any participation therein, and that it has no present intention of
distribution or selling to others any of such interest or granting any
participation therein.

      10.4  Limitation of Liability. EXCEPT AS PROVIDED IN THIS ARTICLE X, AND
EXCEPT FOR A LIABILITY ARISING AS A RESULT OF A CLAIM FOR BREACH OF, OR A
DEFAULT IN, THIS AGREEMENT OR THE LICENSE, UNDER NO CIRCUMSTANCES WILL ANY PARTY
BE LIABLE TO ANY OTHER PARTY FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR
EXEMPLARY DAMAGES (EVEN IF THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES), ARISING FROM ANY PROVISION OF THIS AGREEMENT OR THE LICENSE, SUCH
AS, BUT NOT LIMITED TO, LOSS OF REVENUE OR ANTICIPATED PROFITS OR LOST BUSINESS.

      10.5  EXCEPT AS EXPRESSLY SET FORTH IN THIS ARTICLE X, AND EXCEPT FOR A
LIABILITY ARISING AS A RESULT OF A CLAIM FOR BREACH OF, OR A DEFAULT IN, THIS
AGREEMENT OR THE LICENSE, NO PARTY MAKES, AND EACH PARTY HEREBY SPECIFICALLY
DISCLAIMS, ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE
PRODUCTS AND SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ANY IMPLIED
WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR
NON-INFRINGEMENT AND IMPLIED WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE
OF PERFORMANCE.

      10.6  EXCLUSIVE REMEDIES. THE RIGHTS AND REMEDIES SET FORTH IN THIS
ARTICLE X AND THE LICENSE AGREEMENT CONSTITUTE THE ENTIRE OBLIGATIONS AND THE
EXCLUSIVE REMEDIES OF THE PARTIES CONCERNING INFRINGEMENT OF THE INTELLECTUAL
PROPERTY RIGHTS OF THIRD PARTIES OR THIRD PARTY CLAIMS.

                                       17
<PAGE>
                                   ARTICLE XI
                              TERM AND TERMINATION

      11.1  Term. The term of this Agreement shall commence on the date of
execution and delivery of this Agreement (the "Effective Date"). This Agreement
shall expire when terminated:

            (a)   After a material breach by any Party in accordance with the
provisions of Section 11.2; or

            (b)   Upon the mutual written agreement of the Parties.

      11.2  Termination

            Any Party which is not in material breach of this Agreement shall
have the right to terminate this Agreement upon the occurrence of the events set
forth below:

            (a)   The other Party is in material breach of any material term,
condition or covenant of this Agreement and the breaching Party fails to cure
such breach within thirty (30) calendar days after the receipt of written notice
of such breach (unless such other Party commences the cure of such breach within
such 30 day period, which cure can be reasonably expected to be completed after
the expiration of such 30 day period but within a reasonable time, and is
actually cured within a reasonable time); or

            (b)   An event of bankruptcy occurs with respect to the other Party.
For purposes of the foregoing, an event of bankruptcy with respect to a Party
means any of the following circumstances:

                  (i)   the commencement by the Party of a voluntary case under
the United States Bankruptcy Code,

                  (ii)  the commencement against the Party of an involuntary
case under the United States Bankruptcy Code if the case is not vacated within
ninety calendar days after commencement,

                  (iii) the entry of a final order by a court of competent
jurisdiction finding the Party to be bankrupt or insolvent, ordering or
approving its liquidation, reorganization or any modification or alteration of
the rights of its general creditors or assuming custody of or appointing a
receiver or other custodian for all or a substantial part of its property and
such order shall not be vacated or stayed upon appeal or otherwise stayed within
ninety calendar days of issuance; or

                                       18
<PAGE>
                  (iv)  the Party makes an assignment for the benefit of, or
enters into a composition with its creditors, or appoints or consents to the
appointment of a receiver or other custodian for all or a substantial part of
its property.

            (c)   Termination under subsection (a) shall be effective upon
delivery of notice of the expiration of the cure period or the expiration of a
stated time period, as the case may be and termination under subsection (b) will
become effective immediately upon written notice of termination at any time
after the occurrence of the event.

            (d)   This Agreement may be terminated at any time by the mutual
written consent of all the Parties hereto.

            (e)   This Agreement shall be terminated in the event that an event
of bankruptcy occurs with respect to Newco and the Parties cannot agree on a
plan of recapitalization.

            (f)   Upon termination, all Licenses granted by Authentidate shall
terminate and all of the Authentidate Software shall be the sole property of
Authentidate.

                                   ARTICLE XII
                                 CONFIDENTIALITY

      12.1  Confidentiality, Non-Disclosure

            (a)   Each of IVC, Holding, Authentidate and Newco covenants and
agrees, on behalf of themselves, their Affiliates, parents, subsidiaries,
directors, officers, employees, agents, successors and assigns, that they shall
not, at any time during or after the termination of this Agreement, except when
acting on behalf of and with the written authorization of the other Parties,
make use of or disclose to any person, corporation, or other entity, for any
purpose whatsoever, any trade secret or other Confidential Information of
another Party and not to use any such Confidential Information of another Party
for any purpose other than the purpose for which it was originally disclosed to
the receiving party. No Party will disclose the others' Confidential Information
to its employees and agents except on a "need-to-know" basis.

            (b)   Confidential Information means any information of a Party
disclosed to the other party in the course of this Agreement, which is
identified as, or should be reasonably understood to be, confidential to the
disclosing Party, including, but not limited to, trade secrets and confidential
information disclosed to the Parties or known by them as a consequence of their
transactions with IVC, Holding, Authentidate and/or Newco, whether or not
pursuant to this Agreement, and not generally known in the industry, concerning
the business, finances, methods, operations, know-how, trade secrets, data,
technical processes and formulas, source code, product designs, sales, cost and
other unpublished financial information, product and Business Plans,
projections, marketing data, information, research and development, customers,
pricing and information relating to proposed expansion and this Agreement and
all exhibits hereto. Confidential Information will not include information
which: (a) is known or becomes known to

                                       19
<PAGE>
the recipient directly or indirectly from a third-party source who obtained the
information lawfully other than one having an obligation of confidentiality to
the providing party; (b) is or becomes publicly available or otherwise ceases to
be secret or confidential, except through a breach of this Agreement by the
recipient; or (c) is or was independently developed by the recipient without use
of or reference to the providing party's Confidential Information, as shown by
evidence in the recipient's possession.

            (c)   The Parties acknowledge and agree that each may disclose
Confidential Information: (a) as required by law or the rules of the National
Association of Securities Dealers, Inc. or any applicable securities exchange or
any governmental authority required by law; (b) to their respective directors,
officers, employees, attorneys, accountants and other advisors, who are under an
obligation of confidentiality, on a "need-to-know" basis; (c) to investors or
joint venture partners, who are under an obligation of confidentiality, on a
"need-to-know" basis; or (d) in connection with disputes or litigation between
the parties involving such Confidential Information and each Party will endeavor
to limit disclosure to that purpose and to ensure maximum application of all
appropriate judicial safeguards (such as placing documents under seal). In the
event a Party is required to disclose Confidential Information as required by
law, such party will, to the extent practicable, in advance of such disclosure,
provide the disclosing party with prompt notice of such requirement. Such Party
also agrees, to the extent legally permissible, to provide the disclosing party,
in advance of any such disclosure, with copies of any information or documents
such party intends to disclose (and, if applicable, the text of the disclosure
language itself) and to cooperate with the disclosing party to the extent the
disclosing Party may seek to limit such disclosure.

      12.2  General

            (a)   This Article XII shall survive the termination of this
Agreement.

            (b)   The Parties acknowledge that damages alone may not be an
adequate remedy for any breach by any Party of this Article XII, and
accordingly, each expressly agrees that, in addition to any other remedies which
each may have, each shall be entitled to request injunctive relief in a court of
competent jurisdiction.

                                       20
<PAGE>
                                  ARTICLE XIII
                              RESTRICTIVE COVENANT

      13.1  Restrictive Covenant

            (a)   During the term of this Agreement and for a period of one year
after any termination of this Agreement, except for a termination based on a
default in or breach of this Agreement by any Party, the other Parties agree
that they will not, directly or indirectly enter into or become associated with
or engage in any other business (whether as a partner, officer, director,
shareholder, employee, consultant, or otherwise), which business is primarily
involved in the manufacture, development, distribution, marketing and/or sales
of technology to authenticate and register autographed sports and entertainment
memorabilia by means similar to those described in this Agreement in the
Territory or geographical areas of operation of Newco.

            (b)   During the term of this Agreement, Holding and Authentidate
agree that they will not, directly or indirectly enter into or become associated
with or engage in any other business in the Territory (whether as a partner,
officer, director, shareholder, employee, consultant, or otherwise), which
business is primarily involved in the manufacture, development, distribution,
marketing and/or sales of the Service.

            (c)   Nothing in this Article XIII shall be construed to prevent
Holding and Authentidate from developing, distributing, marketing or selling its
own products and services to other third parties in the Territory served by
Newco pursuant to this Agreement.

      13.2  General

            (a)   The Parties acknowledge and agree that the covenants contained
in this Article XIII are fair and reasonable and of a special unique character
which gives them peculiar value and exist in order to protect the Parties and
that the Parties would not have entered into this Agreement without such
covenants being made to it.

            (b)   If any court shall hold that the duration or geographic scope
of the non- competition clause, or any other restriction contained in this
Article XIII is unenforceable, it is our intention that same shall not thereby
be terminated but shall be deemed amended to delete therefrom such provision or
portion adjudicated to be invalid or unenforceable or in the alternative such
judicially substituted term may be substituted therefor.

            (c)   The Parties further acknowledge that damages alone will not be
an adequate remedy for any breach by any Party of the covenants contained in
this Article XIII, and accordingly, each expressly agrees that, in addition to
any other remedies which each may have, each shall be entitled to injunctive
relief in a court of competent jurisdiction.

            (d)   The Parties acknowledge that the covenants contained in this
Article XIII are separate and distinct from, and shall not be merged with, any
similar covenants made by IVC, Holding and Authentidate in any other agreement,
document or understanding.

            (e)   The provisions of this Article XIII shall survive the
termination of this Agreement.

                                       21
<PAGE>
                                   ARTICLE XIV
                                 INDEMNIFICATION

      Each Party represents and warrants to the other Party that such Party has
the full corporate right, power and authority to enter into this Agreement and
to perform the acts required of it hereunder; and the execution of this
Agreement by such Party, and the performance by such Party of its obligations
and duties hereunder, do not and will not violate or contravene any applicable
law or regulation or any agreement to which such Party is a party or by which it
is otherwise bound, and when executed and delivered by such Party, this
Agreement will constitute the legal, valid and binding obligation of such Party,
enforceable against such Party in accordance with its terms. Each Party agrees
to indemnify and hold harmless each other Party to this agreement for a breach
of the foregoing representations and warranties on such terms as set forth in
this Agreement.

                                   ARTICLE XV
                                     GENERAL

      (a)   Press Releases and Public Announcements. Except as provided by
Section 9.2, no Party shall issue any press release or make any public
announcement relating to the subject matter of this Agreement without the prior
written approval of the other Parties; provided, however, that any Party may
make any public disclosure it believes in good faith is required by applicable
law or any listing or trading agreement concerning its publicly-traded
securities (in which case the disclosing Party will use its reasonable best
efforts to advise the other Party prior to making the disclosure).

      (b)   Entire Agreement. This Agreement (including the documents referred
to herein) constitutes the entire agreement among the Parties and supersedes any
prior understandings, agreements, or representations by or among the Parties,
written or oral, to the extent they related in any way to the subject matter
hereof.

      (c)   Succession and Assignment. This Agreement shall be binding upon and
inure to the benefit of the Parties named herein and their respective successors
and permitted assigns. No Party may assign either this Agreement or any of its
rights, interests, or obligations hereunder without the prior written approval
of the other Parties.

      (d)   Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original but all of which
together will constitute one and the same instrument.

      (e)   Headings. The section headings contained in this Agreement are
inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.

      (f)   Notices. Except as otherwise provided herein, all notices, requests,
demands, claims, and or other communications to be given hereunder will be in
writing and will be (as

                                       22
<PAGE>
elected by the party giving such notice): (a) personally delivered; (b)
transmitted by postage prepaid registered or certified airmail, return receipt
requested; (c) transmitted by electronic mail via the Internet with receipt
being acknowledged by the recipient by return electronic mail (with a copy of
such transmission concurrently transmitted by postage prepaid registered or
certified airmail, return receipt requested); (d) transmitted by facsimile (with
a copy of such transmission by postage prepaid registered or certified airmail,
return receipt requested); or (e) deposited prepaid with a nationally recognized
overnight courier service. Unless otherwise provided herein, all notices will be
deemed to have been duly given on: (x) the date of receipt (or if delivery is
refused, the date of such refusal) if delivered personally, by electronic mail,
facsimile or by courier; or (y) three (3) days after the date of posting if
transmitted by certified mail. Notice hereunder will be directed to a party at
the address for such party as set forth below. Either party may change its
address for notice purposes hereof on written notice to the other party pursuant
to this Section 14 (f).

      If to Holding:                            Copy to:

      John T. Botti                             Victor J. DiGioia, Esq.
      Authentidate Holding Corp.                Goldstein & DiGioia, LLP
      2165 Technology Drive                     369 Lexington Avenue, 18th Floor
      Schenectady, New York 12308               New York, New York 10017

      If to Authentidate:                       Copy to:

      Robert Van Naarden                        Victor J. DiGioia, Esq.
      Authentidate, Inc.                        Goldstein & DiGioia, LLP
      2 World Financial Center, 43rd Floor      369 Lexington Avenue, 18th Floor
      New York, New York 10281                  New York, New York 10017

      If to IVC:

      Frank J. Skelly, III
      218 Royal Palm Way
      Palm Beach, Florida 33480

      Any Party may send any notice, request, demand, claim, or other
communication hereunder to the intended recipient at the address set forth above
using any other means (including personal delivery, expedited courier, messenger
service, telecopy, telex, ordinary mail, or electronic mail). Any Party may
change the address to which notices, requests, demands, claims, and other
communications hereunder are to be delivered by giving the other Parties notice
in the manner herein set forth.

      (g)   Governing Law. This Agreement has been executed in the State of New
York, and except as otherwise provided herein, its validity, interpretation,
performance, and

                                       23
<PAGE>
enforcement will be governed by the laws and courts of such state, without
application of the conflict of law principles thereof.

      (h)   Jurisdiction and Venue. Any judicial proceedings brought by or
against any party on any dispute arising out of this Agreement or any matter
related thereto shall be brought in the state or federal courts of New York
City, New York and, by execution and delivery of this Agreement, each of the
parties accepts for itself the exclusive jurisdiction and venue of the aforesaid
courts as trial courts, and irrevocably agrees to be bound by any judgment
rendered thereby in connection with this Agreement after exhaustion of all
appeals taken (or by the appropriate appellate court if such appellate court
renders judgment).

      (i)   Arbitration. This Agreement shall be construed in accordance with
and governed by the laws of the State of New York, except as otherwise provided
herein to the contrary. The undersigned agree that any and all disputes or
disagreements relating to this agreement shall be submitted to arbitration
before the American Arbitration Association in accordance with the rules and
procedures governing such proceedings and that the venue for any such proceeding
shall be within the State of New York. The parties further agree to accept and
acknowledge service of any and all process which may be served in any suit,
action or proceeding, and agree that service of process upon each other mailed
by certified mail to each other's address shall be deemed in every respect
effective service of process in any such suit, action or proceeding. The parties
further agree each party shall bear their own costs of the arbitration as well
as the costs of its own attorneys' fees.

      (i)   Amendments. This Agreement may be amended by the parties hereto at
any time; provided, however, that any amendment must be by an instrument or
instruments in writing signed and delivered on behalf of each of the parties
hereto.

      (j)   Severability. Any term or provision of this Agreement that is
invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or
the validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction.

      (k)   Expenses. Each of the Parties will bear its own costs and expenses
(including legal fees and expenses) incurred in connection with this Agreement
and the transactions contemplated hereby.

      (l)   Construction. The Parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the Parties and no presumption or burden of proof shall
arise favoring or disfavoring any Party by virtue of the authorship of any of
the provisions of this Agreement. Any reference to any federal, state, local, or
foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context otherwise requires. The
word "including" shall mean including without limitation.

    [Remained of page intentionally left blank. Signature page is next page.]

                                                        24
<PAGE>
      IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the
date first above written.

                                    AUTHENTIDATE HOLDING CORP.

                                    --------------------------------
                                    By John T. Botti, President

                                    AUTHENTIDATE, INC.

                                    --------------------------------
                                    By John T. Botti, Chairman

                                    INTERNET VENTURE CAPITAL, LLC

                                    --------------------------------
                                    An Authorized Representative

                                    NICHOLAS THEMELIS (Solely with respect to
                                    Sections 3.2 and 3.3 and Article V hereof)

                                    ---------------------------------

                                       25

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}]]