Document:

Exhibit 10.1

                        ASSET PURCHASE AND SALE AGREEMENT
                        ---------------------------------

1. THIS ASSET PURCHASE AND SALE AGREEMENT (Agreement) is entered into as of
March 1, 2004 by and among HAMPTON & HAMPTON, P.A., a Kansas corporation with a
principal place of business located at 1501 Kansas St, Great Bend, Kansas
(Purchaser), and W.H. Williams CPA, INC., a Kansas corporation with a principal
place of business located at 113 S. Mahaffie, Olathe, KS (Seller) and to close
on or before September 30, 2004.

                              W I T N E S S E T H:

WHEREAS, Seller is willing to sell to Purchaser and Purchaser is willing to buy
from Seller, upon the terms and conditions hereinafter set forth, all right,
title and interest of the Seller in and to its Assets (as hereinafter defined)
(such business is hereinafter collectively called the Seller's Business), as
more fully set forth in this Agreement; and

WHEREAS, Purchaser is a wholly owned subsidiary of Tels corporation, a Utah
corporation, whose common stock is publicly traded on the Pink Sheets under the
symbol TELS.

NOW THEREFORE, in consideration of the mutual covenants and agreements herein
contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

1. DEFINED TERMS

1.1 DEFINED TERMS-Where used herein or in any amendments hereto, the following
terms shall have the following meanings except as defined otherwise in this
Agreement.

1.2 ASSETS means those assets to be conveyed hereunder as more fully set forth
in Section 2.1 below and the attached Schedule A.

1.3 BUSINESS means the business operations presently and heretofore carried on
by Seller at its current place of business located at 113 S Mahaffie, Olathe,
Kansas.

1.4 BUSINESS DAY means any day except Saturday, Sunday, or any statutory holiday
in the State of Kansas.

1.5 CLOSING DATE means September 30, 2004 or such other date as may be mutually
agreed upon in writing by the parties hereto.

1.6 PURCHASE DOCUMENTS means this Agreement and all other agreements, documents
or instruments to be executed in connection with this Agreement.

2. PURCHASE OF ASSETS AND PURCHASE PRICE

2.1. Sale of Assets. The Seller shall cause to be sold, assigned, transferred,
conveyed and delivered to the Purchaser, at the Closing (as defined below), good
and valid title to the Assets (as defined below), free of any Encumbrances, on
the terms and subject to the conditions set forth in this Agreement. For
purposes of this Agreement, Assets shall mean and include the following: (a) all
of the properties, rights, interests and other tangible and intangible assets of
the Seller (wherever located and whether or not required to be reflected on a
balance sheet prepared in accordance with generally accepted accounting
principles), including any assets acquired by the Seller during the Pre-Closing

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Period; and (b) any other assets that are owned by any other Related Party and
that are needed for the conduct of, or are useful in connection with, the
business of the Seller; provided, however, that the Assets shall not include any
Excluded Assets. Without limiting the generality of the foregoing, the Assets
shall include:

A. All accounts receivable, notes receivable, and other receivables of the
Seller;

B. All inventories and works-in-progress of the Seller, and all rights to
collect from customers (and to retain) all fees and other amounts payable, or
that may become payable, to the Seller with respect to services performed or
products sold on behalf of the Seller on or prior to the Closing Date;

C. All equipment, materials, prototypes, tools, supplies, vehicles, furniture,
fixtures, improvements, and other tangible assets of the Seller;

D. All advertising and promotional materials possessed by the Seller;

E. All Proprietary Assets and goodwill of the Seller, including the right to use
the name W.H. Williams and any variations thereof;

F. All rights of the Seller under the Seller Contracts;

G. All Governmental Authorizations held by the Seller;

H. All books, records, files, and data of the Seller;

I. All customers lists including, but not limited to, Seller's database of past,
current, and potential customers; and

J. All assets shown on Schedule "A".

A. Without in any way limiting the generality of the foregoing, Purchaser shall
not assume any obligation or liability of Seller with respect to the following
(i) any transaction involving Seller occurring after the Closing Date; (ii) any
liability of Seller for federal, state or local taxes, fees, assessments or
other similar charges (including without limitation income taxes, real estate
taxes, payroll taxes and sales taxes); (iii) any liability for services
performed by Seller on or prior to the Closing Date; (iv) except as expressly
provided in this Agreement, any responsibility of Seller with respect to salary,
wages, vacation pay, savings plans, severance pay, deferred compensation, or
other obligations for the benefit of any employee of Seller, including pension
benefits accrued (vested or unvested), or arising out of their employment
through the Closing Date for which Seller shall be liable; (v) any liability or
obligation incurred in connection with or related to the transfer of the Assets
pursuant hereto including, but not limited to sales taxes, transfer taxes or
stamp taxes; (vi) any liability of any kind whatsoever resulting from the
failure of Seller to comply with the requirements of all applicable building,
fire, zoning and environmental laws, laws relating to occupational health and
safety and other laws applicable to Seller or the conduct of its business; (vii)
any liability under any Assumed Contract to the extent such liability arises out
of Seller's failure to perform its obligations thereunder to the extent
performance is due on or prior to the Closing Date; (viii) any liability of
Seller to Seller's stockholders or their relatives or friends; (ix) any
indebtedness of Seller to any banks or other lending institutions; (x)
liabilities in respect of any pension, profit sharing or other employee benefit
plan (as defined in Section 3(3) of the Employee Retirement Income Security Act
of 1974, as amended (ERISA) of Seller; and (xi) any liability, obligation or
account payable of Seller not listed on Schedule 2(e).

<PAGE>

2.3 Purchase Price. Purchaser shall pay to Seller for the Assets shown on
Schedule A and for the real estate to be purchased in accordance with
Sub-paragraph B of this Paragraph 2.3 herewith, a total of $275,000 (the
Purchase Price) as follows:

(A) A total of $275,000 to be paid as follows:

$ 50,000 at Closing

$ 125,000 on or before 4-15-05

$100,000 see Real Estate Contract referred to in Sub-paragraph B of this
Paragraph 2.3. (see amortization)

The payment of the $175,000 shall be allocated to the purchase of the business,
client accounts and equipment. The remaining $100,000 shall be allocated to the
cost of the building, which is being transferred as part of this transaction.

(B) The remaining $100,000, to be allocated for the purchase of the real estate
in accordance with the terms of the contract for deed ("CONTRACT FOR
DEED")attached hereto and incorporated herein by reference, the major terms of
which call for the warranty deed transferring the real estate to the purchaser
to be held in escrow by the escrow agent in accordance with the terms of the
escrow agreement ("ESCROW AGREEMENT") attached hereto and incorporated herein by
reference, which requires the escrow agent to release said warranty deed upon
payment of the $100,000 principal amount together with interest on the
outstanding principal balance at the rate of 8.5% per annum to be paid over a
period of 122 months commencing on the first day following the Closing at the
rate of $1,200 per month with a final balloon payment of all interest and
principal due and payable on the IST day of the 36th month following
commencement of this obligation.

BOTH PARTIES ACKNOWLEDGE THEIR UNDERSTANDING AND AGREEMENT THAT A VIOLATION OF
THE PAYMENT PROVISIONS RELATING TO THE $175,000 AMOUNT PAID FOR THE ASSETS,
OTHER THAN THE REAL ESTATE, SHALL BE A DEFAULT UNDER THE TERMS OF THE CONTRACT
FOR DEED RELATING TO THE REAL ESTATE TO BE TRANSFERRED THEREUNDER AND SHALL
ENTITLE THE SELLER TO THE POSSESSION OF THE REAL ESTATE UNDER THE DEFAULT
PROVISIONS OF THE CONTRACT FOR DEED. PURCHASER UNDERSTANDS AND ACKNOWLEDGES
PURCHASER'S AGREEMENT THAT A DEFAULT UNDER THE TERMS OF THE CONTRACT FOR DEED
WOULD CHANGE THE PURCHASER'S LEGAL STATUS AS A PURCHASER FOR OWNERSHIP OF THE
REAL ESTATE, WHICH IS THE SUBJECT MATTER OF THE CONTRACT FOR DEED TO THE LEGAL
STATUS OF A MONTH TO MONTH TENANT IN POSSESSION OF THE REAL ESTATE.

In order to secure repayment of the required $100,000, Seller has provided a
ownership & encumbrance certificate.

2.6. Allocation of the Purchase Price. The Purchase Price shall be allocated
amongst the Assets as provided in Schedule A attached hereto, and each party
shall file in a manner consistent therewith (i) the reports required under
Section 1060 of the Internal Revenue Code of 1986, as amended, and (ii) their
respective Federal, state and local tax returns.

<PAGE>

3. DOCUMENTS TO BE DELIVERED AT CLOSING

3.1. At the Closing:

A. Seller shall execute and deliver to Purchaser a Bill of Sale fully executed
and in the form of Exhibit C attached hereto, conveying, selling, transferring
and assigning to Purchaser all of the Assets free and clear of any and all
defects, liens, encumbrances, charges and equities whatsoever. Seller shall also
provide Purchaser with a warranty deed transferring title to the property.

B. Seller shall execute or endorse and deliver to Purchaser other duly executed
separate instruments of sale, assignment or transfer, including, but not limited
to assignments of contract rights or leases in form suitable, where appropriate,
for filing or recording with the appropriate office or agency for various items
of the Assets or other rights of Seller to be conveyed hereunder, where, in
Purchaser's reasonable judgment, the same are necessary or desirable in order to
vest or evidence title hereto in Purchaser.

C. Purchaser shall pay the Purchase Price for the Assets in accordance with the
terms of Section 2 hereof.

D. Seller shall deliver to Purchaser copies, certified by the Secretary of
Seller of (i) certificates of good standing in the jurisdiction of the Seller's
incorporation and in each other jurisdiction in which the Seller is doing or
transacting business, (ii) the unanimous written consent of the Board of
Directors and the stockholders of Seller authorizing this Agreement and the
other agreements and instruments to be delivered pursuant thereto and the
transactions contemplated hereby; and (iii) a certification signed by the
Company's President and Secretary that there are no liens or encumbrances on any
of the assets to be transferred.

E. Seller shall deliver to the Purchaser all books and records of the Seller
relating to the Seller's Business, the Customers, the Assets and the Assumed
Liabilities.

F. Seller shall deliver to the Purchaser all necessary consents of third parties
to the execution and delivery of this Agreement and the consummation of the
transactions contemplated including, without limitation, the written consent of
the Landlord for the assignment of the Seller's leasehold obligation at its
Business location.

4. CLOSING.

The Closing of the transactions contemplated by this Agreement, and all
deliveries to be made at such time in connection therewith, shall take place at
mutually agreed upon between the parties upon the satisfaction of all of the
conditions set forth in this Agreement, such Closing to take place by delivery
to such counsel of executed counterparts of this Agreement and all other
documents, instruments and certificates required to be delivered by Seller or
Purchaser at the Closing (Said Closing and said date thereof, herein referred to
as the Closing and the Closing Date, respectively). The effective date of this
Agreement shall be the date of execution by the last signatory to this
Agreement.

5. REPRESENTATIONS AND WARRANTIES BY SELLER.

5.1. Seller represents and warrants to Purchaser as follows:
<PAGE>

A. Corporate Organization. Seller is a corporation duly organized, validly
existing and in good standing under the laws of the State of Kansas.

B. Authorization and Validity of Agreement. Seller has all requisite power and
authority to enter into this Agreement and to carry out its obligations
hereunder. The execution and delivery of this Agreement and the performance of
Seller's obligations hereunder have been duly authorized by all necessary
corporate action, and no other proceeding on the part of Seller is necessary to
authorize such execution, delivery and performance. This Agreement has been duly
executed by Seller and constitutes its valid and legally binding obligation,
enforceable against it in accordance with its terms.

C. The execution, delivery and performance of the Purchase Documents by Seller,
and the consummation of the transactions contemplated hereby, will not with or
without the giving of notice or the lapse of time or both:

(i) Violate any provision of law, statute, rule or regulation to which Seller is
subject,

(ii) Violate any judgment, order, writ or decree to which Seller is a party or
by which it is or may be bound; or

(iii)To the knowledge of Seller, result in the breach of or conflict with any
term, covenant, condition or provision of, or result in the modification or
termination of, or constitute a default under or result in the creation or
imposition of any lien, security interest, charge or encumbrance upon any of the
Assets being purchased hereunder, under the corporate charter or by-laws or any
other agreement, understanding or instrument to which Seller is a party or by
which it is or may be bound or affected.

D. All necessary corporate action has been taken by Seller to authorize the
execution, delivery, and performance of the Purchase Documents. The Purchase
Documents have been duly and validly authorized, executed and delivered by
Seller and constitute the valid and binding obligation of Seller enforceable
against it in accordance with their respective terms.

E. All consents and approval required for transferring the Assets to Purchaser
hereunder and for assigning the agreements, including without limitation all
amendments, modifications, and supplements, whether written or oral (AGREEMENTS)
and for performing Seller's obligations under the Purchase Documents have been
obtained or will be obtained. No consent of any court, governmental agency or
other public authority is required as a condition to the enforceability of the
Purchase Documents.

F. Seller acknowledges that the Assets being transferred per Schedule "A" are
owned free and clear of all liens and encumbrances, are not encumbered by any
liens or the subject matter of any known or anticipated litigation Seller
further acknowledges and agrees that the Purchase Price paid by Purchaser for
Seller's Assets is fair and adequate consideration.

G. Seller has conducted its business in compliance with all applicable federal,
state and local laws, regulations and ordinances.

H. Seller has not received any notice that it is infringing upon the research,
development, processes, methods, techniques, inventions, know how patents,
patent rights, trade name, trademarks or service marks of any other party.

I. Seller is not a party to any written or oral employment, agency or commission
agreement with any of its employees that cannot be terminated upon the closing
date of this transaction without penalty. No employee, director, officer or
stockholder (or any current or former family member thereof) of Seller, either
individually or in any other capacity, has a claim of any kind against the
Seller, and Seller has no obligation with respect to such person or entity,
except the right to current salary or wages, accrued vacation pay, and
reimbursable expenses arising in the ordinary course of business. Seller does
not contribute to or sponsor any employee welfare or benefit plans, and is not
subject to any collective bargaining agreement, for employees.
<PAGE>

J. Sophisticated Investor. Seller is a sophisticated investor and understands
the risks and uncertainties involved with the receipt of any TELS securities.
Seller has had an opportunity to discuss the operations of both TELS and
Purchaser's business with management and has been provided with any requested
information. Seller has also reviewed TELS's filings on the SEC EDGAR database
located at www.sec.gov.

K. Seller has paid all personal and intangible property taxes due as a result of
the ownership of the assets and there are no amounts due and owing for personal
property or intangible property taxes.

L. There is no (and has not been since its inception) claim, litigation, action,
suit, or proceeding, administrative or judicial, pending or threatened against
or affecting Seller, or involving any of the Assets, at law or in equity or
before any foreign, federal, state, local or other governmental authority,
including, without limitation, any claim, proceeding, or litigation for the
purpose of enjoining or preventing the consummation of this Agreement, or the
transactions contemplated hereby, or otherwise claiming this Agreement, or any
of the transactions contemplated hereby or the consummation thereof, is illegal
or otherwise improper, nor to Seller's knowledge is there any basis upon which
any such claim, litigation, action, suit or proceeding could be brought or
initiated. Seller is not (and has not been within the past three years) subject
to or in default under any judgment, order, writ, injunction or decree of any
court or any governmental authority, and no replevins, attachments, or
executions have been issued or are now in force against Seller. No petition in
bankruptcy or receivership has ever been filed by or against Seller.

M. No Brokers. Seller does not have nor will it have any obligation to pay any
finder's fee, brokerage commission or similar payment in connection with the
transactions contemplated hereby.

N. Accuracy of Representations. No representation or warranty contained in this
Section 5 contains any untrue statement of a material fact or omits to state a
material fact required to be stated herein or necessary in order to make the
statements herein, in light of the circumstances under which they are made, not
misleading.

6. REPRESENTATIONS AND WARRANTIES OF PURCHASER

6.1. Purchaser represents and warrants to Seller as follows:

A. Corporate Organization. Purchaser is a corporation duly organized, validly
existing and in good standing under the laws of the State of Kansas.

B. Authorization and Validity of Agreement. Purchaser has all requisite power
and authority to enter into this Agreement and to carry out its obligations
hereunder. The execution and delivery of this Agreement and the performance of
Purchaser's obligations hereunder have been duly authorized by all necessary
corporate action, and no other proceeding on the part of Purchaser is necessary
to authorize such execution, delivery and performance. This Agreement has been
duly executed by Purchaser and constitutes its valid and legally binding
obligation, enforceable against it in accordance with its terms.

<PAGE>

C. No Conflict or Violation. The execution, delivery and performance by
Purchaser of this Agreement does not and will not violate or conflict with any
provision of the Articles of Incorporation or By-Laws of Purchaser, and the
execution, delivery and performance by Purchaser of this Agreement does not and
will not violate any provision of law, rule or regulation, or any order,
judgment or decree of any court or other governmental or regulatory authority,
nor will result in a breach of or constitute (with due notice or lapse of time
or both) a default under any contract, agreement or instrument to which
Purchaser is a party or by which it is bound or to which any of its properties
or assets is subject, nor will result in the cancellation, modification,
revocation or suspension of any material licenses, permits or approvals.

D. No Brokers. Purchaser does not have nor will it have any obligation to pay
any finder's fee, brokerage commission or similar payment in connection with the
transactions contemplated hereby. E. Accuracy of Representations. No
representation or warranty contained in this Section 6 contains any untrue
statement of a material fact or omits to state a material fact required to be
stated herein or necessary in order to make the statements herein, in light of
the circumstances under which they are made, not misleading.

7. CONDITIONS TO THE OBLIGATIONS OF SELLER TO CLOSE

7.1 All obligations of Seller hereunder are, at the option of Seller, subject to
the conditions that, at the Closing Date:

A. Representations and Warranties. All representations and warranties made in
this Agreement by Purchaser shall be true and correct as of the Closing Date in
all material respects.

B. Performed Commitments. Purchaser shall have tendered the required documents
and certificates at the Closing as set forth in Section 3 hereof.

C. Purchase Price. The Purchase Price or that portion due on Closing described
in Section 2.3 hereof shall have been paid by Purchaser.

D. Corporate Approval. All corporate action necessary to authorize (A) the
execution, delivery and performance by Purchaser of this Agreement and any other
agreements or instruments contemplated hereby to which Purchaser is a party and
(B) the consummation of the transactions and performance of its other
obligations contemplated hereby and thereby shall have been duly and validly
taken by Purchaser, and the Seller shall have been furnished with copies of all
applicable resolutions adopted by the board of directors of Purchaser, certified
by the Secretary of Purchaser.

The Seller may waive any condition specified in this Section 7 if it executes a
writing so stating at or prior to the Closing.

8. CONDITIONS TO THE OBLIGATIONS OF PURCHASER TO CLOSE

8.01 All obligations of Purchaser hereunder are, at the option of Purchaser,
subject to the conditions that, at the Closing Date:

A. Representations and Warranties. All representations and warranties of Seller
contained in this Agreement shall be true and correct as of the Closing Date in
all material respects.
<PAGE>

B. Performed Commitments. Seller shall have performed all commitments hereunder
up to the Closing Date and shall have tendered the required documents,
instruments and certificates as set forth in Section 3 hereof.

C. No Litigation. No action suit, proceeding or investigation by or before any
court, administrative agency or other governmental authority shall have been
instituted or threatened to restrain, prohibit or invalidate the transactions
contemplated by this Agreement or which may affect the right of Purchaser to
own, operate or control the Assets and the Seller's Business, after the Closing
Date

D. Corporate Approval. All corporate action, necessary to authorize (A) the
execution, delivery and performance by the Seller of this Agreement and any
other agreements or instruments contemplated hereby or thereby to which Seller
is a party and (B) the consummation of the transactions contemplated hereby and
thereby shall have been duly and validly taken by Seller, and Purchaser shall
have been furnished with copies of all applicable resolutions of Seller
certified by the Secretary or Assistant Secretary of the Seller.

E. Approvals and Consents. The Seller shall have obtained the approvals,
consents and authorizations of all third parties and/or governmental agencies
necessary for the communication of the transactions contemplated hereby in
accordance with the requirements of applicable laws and agreements.

F. Leases. (If applicable.) Seller shall at its own cost and expense assign the
current existing lease to the Purchaser and obtain all required landlord
consents. Any costs assessed by the Landlord in the assignment of the leasehold
obligation shall be borne by Seller. In the alternative, Purchaser may prior to
Closing negotiate a new lease for the premises. Nothing contained herein shall
be construed to impose any liability on the Purchaser for any rental obligations
accruing prior to Closing.

G. Employment Agreements/Non-Compete. Purchaser shall enter into an employment
agreement with W. H. Williams for a term of one year at a salary of $35.00 per
hour. The agreement may be terminated either with or without cause by Purchaser
on thirty (30) days prior written notice. Mr. Williams will also at closing
execute a non-compete and non-solicitation agreement. All other officers or
shareholders of Seller shall execute non-compete agreements on closing

H. Audit Requirement. Purchaser shall pay for the cost of an audit of sellers
financial statement. This agreement will not be amended by any reason of the
said audit findings.

The Purchaser may waive any condition specified in this Section 8 if it executes
a writing so stating at or prior to the Closing.

9. INDEMNIFICATIONS

9.01 Seller agrees to indemnify and hold harmless Purchaser from:

A . Any and all damages or deficiencies resulting from any misrepresentation,
breach of warranty or non-fulfillment of any covenants on the part of Seller
under this Agreement.

B. Any and all actions, suits, proceedings, demands, assessments, judgments,
costs, reasonable attorneys fees, expenses incident to any of the foregoing.

C. Any and all liabilities as they relate to the personal property being
transferred under this Purchase and Sale Agreement which are not specifically
set forth.
<PAGE>

9.02 Purchaser agrees to indemnify and hold Seller harmless from:

A. Any and all damages or deficiencies resulting from any misrepresentation,
breach of warranty or non- fulfillment of any covenant on the part of Purchaser
under this Agreement B. Any and all actions, suits, proceeding, demands,
assessments, judgments, costs, reasonable attorney's fees and expenses incident
to any of the foregoing.

9.03 Any party having an indemnification claim hereunder (Indemnitee) shall give
the other party (Indemnitor) prompt notice in writing of any claim by any third
party which gives rise to a claim for indemnification hereunder, and of any
alleged breach of any of the representations and warranties contained in this
Agreement. As to any alleged breach of the representations or warranties,
written notice shall contain a statement setting forth the nature of the alleged
breach or breaches. The Indemnitor shall have thirty (30) days after the
delivery of such notice to cure or contest any such claim by a third party or
any such alleged breach or breaches. At its option, to be exercised within
thirty (30) days of such notice, the Indemnitor may defend against any such
action or proceeding with counsel of its choice, at the Indemnitor's expense, it
being understood, however, that the Indemnitor's designation of counsel shall be
subject to the approval of the Indemnitee, which approval shall not be
unreasonably withhold. Additionally, at its own expense the Indemnitee may
participate in any such defense with counsel of its choice. As long as the
defense is being handled by the Indemnitor, the Indemnitee shall not settle any
such claim, action or proceeding without prior written consent of the
Indemnitor, except that if the Indemnitee does elect to settle the matter
without such consent, the Indemnitor shall be released from the terms of this
indemnification. Notwithstanding the foregoing, in the event the Indemnitor
elects not to defend any such claim, action, or proceeding, the Indemnitee may
do so, in which event the Indemnitor shall continue to indemnify the Indemnitee
for any liabilities, losses and damages incurred by the Indemnitee, including
any settlement payments and for the reasonable costs and expenses of this
counsel.

9.04 All indemnifications made herein by Purchaser and Seller shall survive the
closing of this transaction and shall inure to the benefit of the Purchaser's
and Seller's heirs, assigns, agents, principals, members and/or shareholders.

10. TERMINATION DEFAULT REMEDIES

10.01. Termination. If either Purchaser or Seller materially defaults in the due
and timely performance of any of its warranties, covenants or agreements or in
the event of the failure to satisfy or fulfill any of the conditions, the
non-defaulting party may on the Closing Date give notice of termination. The
notice shall specify the default or defaults upon which the notice is based. The
termination shall be effective ten (10) days after the Closing Date, unless the
specified default or defaults have been cured on or before the effective date of
the termination.

10.02. Default Remedies. Notwithstanding Section 10.01, in the event of a
default, the non-defaulting party may seek specific performance of this
Agreement against the defaulting party from a court of competent jurisdiction,
or alternatively, such non-defaulting party may seek damages from the defaulting
party.

11. MISCELLANEOUS

11.01 Waiver. This Agreement may be assigned by Purchaser without the prior
written consent of Seller.

11.02 Survival. The representations and warranties of the Purchaser and Seller
set forth in Sections 5 and 6 of this Agreement, the indemnities set forth in
Section 9 of this Agreement, and the conditions set forth in Sections 7 and 8 of
this Agreement, shall survive termination of, the Closing under, or performance
under this Agreement, forever, until fully performed, discharged and/or subject
to applicable statutes of limitation.
<PAGE>

11.03 Entire Agreement. This Agreement and the Exhibits hereto contain the
entire understanding between the parties hereto with respect to the transactions
contemplated hereby and thereby and supersedes and replaces all prior and
contemporaneous agreements and understandings, oral or written, with regard to
such transactions. All exhibits hereto and any documents and instruments
delivered pursuant to any provision hereof are expressly made a part of this
Agreement as fully as though completely set forth herein.

11.04 Governing Law, Jurisdiction and Venue. The validity, construction and
performance of this Agreement, and the legal relations between the parties to
this Agreement, each shall be governed by and construed in accordance with the
laws of the State of Kansas (excluding that body of law applicable to choice of
laws). Each of the parties hereby agrees that, except for any appeals, the sole
and exclusive venue for any and all disputes relating to this Agreement, its
making, construction, validity, enforceability and/or performance shall be in
the state courts sitting in the jurisdiction where Purchaser's principal place
of business is located and each hereby voluntarily consents to the personal
jurisdiction of said courts and waives any and all objections to such personal
jurisdiction and/or venue.

11.05 Litigation Costs. If any legal action or other proceeding is brought for
the enforcement of this Agreement or to remedy its breach, the prevailing party
in such action or proceeding shall be entitled to recover its actual attorney's
fees and other costs incurred in the action or proceeding, in addition to such
other relief to which it may be entitled.

11.06 Headings and References. Headings are included solely for convenience, are
not themselves to be considered a part of the terms and conditions of this
Agreement and are not intended to be full and accurate descriptions of the
contents thereof. Any reference to a paragraph shall be construed to refer to
all subparts and/or other portions of that paragraph.

11.07 Amendments; Waivers. This Agreement may be amended or modified, and any of
the terms, covenants, representations, warranties, or conditions hereof may be
waived, only by a written instrument executed by the parties hereto, or in the
case of a waiver, by the party waiving compliance. Any waiver by any party of
any condition, or of the breach of any provision, term, covenant, representation
or warranty contained in this Agreement, in any one or more instances, shall not
be deemed to be nor construed as further or continuing waiver of any such
condition, or of the breach of any other provision, term, covenant,
representation or warranty of this Agreement.

11.08 Notices. All notices relating to this Agreement must be in writing and
delivered either in person or by certified mail or registered mail, postage
prepaid, return receipt requested, to the person(s) and address specified on the
first page of this Agreement or such updated address as either party may
subsequently designate by notice in writing. Notice shall be effective
immediately upon receipt.

11.09 Severability. In the event that any provision of this Agreement, or the
application of any such provision to any Person or set of circumstances, shall
be determined to be invalid, unlawful, void or unenforceable to any extent, the
remainder of this Agreement, and the application of such provision to Persons or
circumstances other than those as to which it is determined to be invalid,
unlawful, void or unenforceable, shall not be impaired or otherwise affected and
shall continue to be valid and enforceable to the fullest extent permitted by
law.
<PAGE>

11.10 Expenses. Except as otherwise provided herein, each of the parties
hereto shall pay its own expenses in connection with this Agreement and the
transactions contemplated hereby, including, without limitation, any legal and
accounting fees, whether or not the transactions contemplated hereby are
consummated. All state and local sales, transfer, excise, value-added or other
similar taxes, and all recording and filing fees that may be imposed by reason
of the sale, transfer, assignment and delivery of the Assets, shall be borne by
the Seller. Audit fees will be paid by Purchaser.

11.11 Finders Fees. Neither Seller nor Purchaser has incurred nor will either
incur any liabilities for finder's fees or commission of any nature whatsoever
in connection with the transactions contemplated hereunder.

11.12 Additional
Documentation: The parties agree that without the payment of additional
consideration, each party will provide the other with such information as may be
necessary to carry out the terms and conditions of this Agreement.

11.13 Incorporation of Exhibits, Annexes, and Schedules. The Exhibits, Annexes,
and Schedules identified in this Agreement are incorporated herein by reference
and made a part hereof.

11.14 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. The law firm of Newman, Pollock & Klein, LLP represented
Purchaser in connection with the drafting of this Agreement, and Seller was
represented by counsel of his own or elected not to be represented by counsel.
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 requires otherwise. The word (ncluding) shall mean including without
limitation.

11.15 Gender. All references to the male, female or neutral shall be amended to
the proper reference as the context requires.

11.16 Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original, but all of which shall constitute the same
instrument.

11.17 Knowledge. For purposes of this Agreement, a Person shall be deemed to
have (knowledge) of a particular fact or other matter if any Representative of
such Person has knowledge of such fact or other matter.

11.18 Force Majeure. Neither of the parties shall be responsible for failure to
fulfill its obligations under this Agreement due to causes beyond its reasonable
control, including but not limited to failure of suppliers or subcontractors to
furnish equipment, software, parts or labor, war, sabotage, insurrection, riots,
civil disobedience and the like, acts of governments and agencies thereof, labor
disputes, accidents, fires or Acts of God. In such event, the delayed party
shall perform its obligations hereunder within a reasonable time after the cause
of the failure has been remedied, and the other party shall be obligated to
accept such delayed performance. During any period that performance of its
obligations by one party is delayed or suspended pursuant to this Paragraph
11.18, the performance of the obligations of the other party shall be similarly
delayed or suspended, including, without limitation, any obligation of a party
to pay money owed based on delayed performance of obligations of the other
party.
<PAGE>

11.19 Binding Effect/Assignment. All the terms and provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, successors, assigns and legal representatives.

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

SELLER:
ATTEST: W.H. WILLIAMS, CPA , INC.

BY: ________________________________
ITS: President

PURCHASER:
ATTEST: HAMPTON & HAMPTON, P.A.

BY: _________________________________
ITS: President

STATE OF KANSAS )
                ) ss.
COUNTY OF PRATT )

         On this 30 day of September, 2004, before me, a Notary Public in and
for said state, personally appeared Willis Williams who declares himself
president of W.H. Williams, CPA, Inc. known to me to be the persons who executed
the within authorization, and acknowledged to me that they executed the same for
the purposes therein stated.

                                                   ----------------------------
                                                   Notary Public
My Commission Expires:

STATE OF KANSAS    )
                   ) ss.
COUNTY OF PRATT    )

         On this 30 day of September, 2004, before me, a Notary Public in and
for said state, personally appeared Von Hampton who declares himself president
of Hampton & Hampton P.A., known to me to be the person who executed the within
authorization, and acknowledged to me that they executed the same for the
purposes therein stated.

                                                   ----------------------------
                                                   Notary Public
My Commission Expires:

<PAGE>
                               CONTRACT FOR DEED

         THIS CONTRACT FOR DEED, made and entered into on this 30 day of
September, 2004 between Willis H. Williams and Rebecca L. Williams, husband and
wife, party of the first part, hereinafter called the Sellers, and Hampton &
Hampton P.A., party of the second part, hereinafter called the Buyer.

         WITNESSETH:

         1. In consideration of the promises, covenants and conditions
hereinafter set forth, Sellers and Buyer mutually agree as follows: 1) Sellers
hereby sell and agree to convey to said Buyer for the stated purchase price the
following described land, situated in the County of Johnson, State of Kansas,
to-wit:

         LOTS 9 AND 10, BLOCK 12, BURRIS AND OCHELTREE ADDITION, TO THE CITY OF
         OLATHE, JOHNSON COUNTY, KANSAS.

         2. The Buyer, in consideration of Sellers' agreement to sell, convey,
transfer and assign to Buyer the above described real property agree to pay to
Sellers the purchase price of One Hundred Thousand Dollars ($100,000.00) as
follows:

         a. Upon the execution of this Contract for Deed the payment of all
obligations agreed to by Buyer in the Asset Purchase Agreement between the Buyer
and Seller of even date herewith.

         b. A Promissory Note in the amount of One Hundred Thousand Dollars
($100,000.00). A copy of this Promissory Note shall be attached hereto as
Exhibit A and incorporated herein by reference. This Promissory Note shall bear
a simple annual interest rate of 8.5% with payments of $1,200 per month for a
period of 122 months with a balloon payment due after the expiration of the 36
month of all outstanding interest and principal of that date.

3. Sellers shall cause to be prepared and shall execute and place in escrow with

   First National Bank in Pratt
------------------------------------------------------
at the date of this Agreement an executed Warranty Deed conveying the
above-described real property to Buyer and subject to full compliance by Buyers
to the terms of this agreement. Said Warranty Deed shall be delivered to Buyer
immediately following the date of payment of the entire balance of the principal
and interest and outstanding expenses for taxes, and insurance owing under the
terms of this contract pursuant to the provisions of the Escrow Agreement, a
copy thereof attached hereto and incorporated herein as though fully set forth
herein.

<PAGE>

4. Buyer shall cause to be prepared and shall execute and place in escrow with

   First National Bank in Pratt
------------------------------------------------------
on the date of this Agreement is executed, a Quit-Claim Deed, containing a
release by Buyers of any and all rights to the real estate which is the subject
of this Contract for Deed. Said Quit Claim Deed shall be delivered to the
Sellers immediately following the date that Sellers exercise their option to
declare this Agreement to be null and void. The escrow agent shall release the
Quit Claim Deed to Sellers pursuant to the provisions of the escrow Agreement, a
copy thereof attached hereto and incorporated herein as though fully set forth
herein.

         5. Buyers accept the improvements on the above legally described real
property as is and in their current condition, Seller making no covenants or
warranties as to the structural soundness or stability of said improvements.
Buyers hereby acknowledge that all opportunities for mechanical, termite and any
or all other physical inspections have been provided to Buyers by Seller and
Buyers hereby accept full responsibility for any and all inspections desired by
Buyers.

         6. Sellers, at the expense of Buyers, shall keep the improvements now
existing or hereafter erected on the property insured against fire, hazards
including with the term "extended coverage" and any other hazards for which
Sellers or Lender may require insurance. This insurance shall be maintained in
the amount not less than One Hundred percent (100%) of the value of the
improvements now existing and for the period that this contract is in existence.
Buyers shall reimburse Sellers for all costs associated with insuring the
property.

         7. Buyer shall protect, indemnify and save harmless from and against
all and any liability and expense of any kind arising from injuries or damages
to persons of property on the premises arising out of or resulting in any way
from any act or omission of Buyer, its agents, servants and employees, in the
use of the premises during the term of this Contract for Deed.

         8. Buyer agrees to promptly notify Sellers of any claim, action,
proceeding or suit instituted or threatened against the Buyer or Sellers with
respect to the real property which is the subject of this Contract for Deed. In
the event Sellers is made a part to any action for damages which Buyer has
herewith indemnified Sellers against, then Buyer shall pay all costs and shall
provide effective counsel in such litigation or shall pay, at Sellers' option,
the attorney fees and costs incurred in connection with said litigation by
Sellers.

         9. Buyer agrees to maintain at its expense at all times during the
terms of this Contract for Deed full liability insurance protecting and
indemnifying Sellers and naming Sellers as additional insured in an amount not
less than One Hundred Thousand Dollars ($100,000.00) per person and One Hundred
Thousand Dollars ($100,000.00) per accident for injuries or damages to persons,

<PAGE>

and not less than One Hundred Thousand Dollars ($100,000.00) damage or
destruction of property, written by insurers licensed to do business in the
State of Kansas.

         10. Unless Sellers and Buyer otherwise agree in writing, insurance
proceeds shall be applied to restoration or repair of the property damaged, if
the restoration or repair is economically feasible and Sellers' security is not
lessened. If the restoration or repair is not economically feasible or Sellers'
security would be lessened, the insurance proceeds shall be applied to the sums
payable under the Promissory Note which Buyer has assumed in accordance with
this Contract for Deed.

         11. Buyer is to pay all taxes and special assessments hereinafter
becoming due and payable against said land and all improvements made thereon. If
said Buyer fails to pay any such taxes or special assessments before penalty or
interest accrues thereon, or when the same may or should be paid, or if said
land or any part thereof be sold for non-payment of taxes or special
assessments, then the Sellers may pay such delinquent taxes or special
assessments or redeem the property from any tax sale, in which event the Buyer
shall re-pay the amount or amount so expended by Sellers from the dates of
expenditure by Sellers. In the event Sellers are required to pay taxes or
special assessments after becoming due and payable against said land and all
improvements made thereon, then Buyer agrees to reimburse Sellers immediately
after proof of payment of said taxes or special assessments have been paid by
Sellers. In the event Buyer fails or refuses to make payments required under
this paragraph then in that event, Buyer agrees that Sellers shall have all
remedies available to Sellers with this Contract for Deed.

         12. If Buyer fails to make any payment required under this Contract for
Deed within ten (10) days from the due date thereof or fails in any manner to
comply with the terms of this Agreement, Sellers shall notify Buyer in writing,
United States registered mail, to Buyer at the address which is used for the
Real Estate which is the subject matter of this Contract for Deed, of said
failure to make such payments or contended non-compliance and Buyer shall have
thirty (30) days following receipt of said notice to comply with the terms of
this Agreement. If Buyer do not comply with the terms of this Agreement by the
end of such thirty (30) day period then Sellers shall have the option to declare
this Agreement to be null and void, in such event, neither Sellers nor Buyer
shall be further bound by this Agreement thereafter. If such would occur, all
amounts theretofore paid by Buyer to Sellers under the terms of this Contract
for Deed would be forfeited as liquidated damages and as rent and not as a
penalty. It is expressly understood and agreed between Buyer and Sellers that
time is of the essence of this Contract and that if Buyer shall, prior to
transfer of Warranty Deed as above specified, fail to pay any installments,
interest, taxes, lien or other payment when said amount shall become due and
payable, and after proper notice is given, then the amount theretofore paid by
the Buyer shall be forfeited to the Sellers as liquidated damages for breach of
this Contract and on such default, it will be lawful and proper for the Sellers
and/or Assigns to take possession of said premises.

         13. Sellers and Buyer agree to execute all instruments as may be
necessary to effectively carry out the purpose and intent of this Agreement.

<PAGE>

         14. This contract shall inure to the benefit of and be binding upon the
parties hereto, their heirs, successors, executors and assigns.

         15. It is mutually agreed that the Buyers shall receive possession of
said premises immediately upon execution of this Agreement.

         16. This Agreement may not be sold or assigned by Buyer.

         17. Buyer shall pay all recording fees and mortgage recording taxes, if
any.

         18. The remedies herein provided shall be cumulative and not exclusive.
Failure of Sellers to exercise any remedy at any time shall not operate as a
waiver of the right of Sellers to exercise any remedy for the same or any
subsequent default at any time thereafter.

         19. The Buyer shall, at the Buyer's own expense, keep the premises in
good order, condition, and repair during the period of time in which Buyer has
outstanding payment obligations to Sellers under this Contract for Deed. Buyer
shall be responsible for all damages, normal wear and tear excepted, which occur
on the real estate building and appurtenances prior to full payment of
obligations to the Sellers under this Contract for Deed. Buyer shall be
responsible for damages caused by waste during the period of time in which Buyer
has outstanding payment obligations to Sellers and Buyer agree to repair,
maintain and return the building and appurtenances to Sellers in a condition
similar to that which Buyer received said property in the event Buyer defaults
under this contract in the payment o those obligations outlined in all other
paragraphs of this Contract for Deed.

         IN WITNESS WHEREOF, the parties have executed this Contract for Deed
the day and year first above written.

SELLER:

/s/ Willis H. Williams
----------------------
Willis H. Williams

SELLER:

/s/ Rebecca L. Williams
-----------------------
Rebecca L. Williams

<PAGE>

BUYERS:  HAMPTON & HAMPTON P.A.

ATTEST:  /s/ Von Hampton
         ---------------
BY:      Von Hampton
ITS:     President

STATE OF KANSAS )
                )ss.
COUNTY OF PRATT )

         On this 30 day of September, 2004, before me, a Notary Public in and
for said state, personally appeared Von Hampton, President of Hampton & Hampton
P.A. known to me to be the persons who executed the within authorization, and
acknowledged to me that they executed the same for the purposes therein stated.

                                                    /s/ Dana D. McDiffett
                                                    ---------------------
                                                    Notary Public
                                        My Commission Expires: 4-23-06

STATE OF KANSAS  )
                 ) ss.
COUNTY OF PRATT  )

         On this 30 day of September, 2004, before me, a Notary Public in and
for said state, personally appeared Willis Williams and Rebecca L. Williams,
husband and wife, known to me to be the person who executed the within
authorization, and acknowledged to me that they executed the same for the
purposes therein stated.

                                                    /s/ Dana D. McDiffett
                                                    ---------------------
                                                    Notary Public
                                        My Commission Expires: 4-23-06Prepared and filed by St Ives Burrups

Exhibit 10.1

EMPLOYMENT AGREEMENT

     AGREEMENT made as of the 27th day of October, 2004 by and between Surendra Pai, residing at _____________ (hereinafter referred to as the "Employee") and AuthentiDate Holding Corp., a Delaware corporation with principal offices located at 2165 Technology Drive, Schenectady, New York 12308. 

W I T N E S S E T H:

     WHEREAS, AuthentiDate Holding Corp.  and its subsidiaries (the “Company”) are engaged in the business of the manufacture and distribution of computers and document imaging systems, providing Internet and software-based document authentication services and related business enterprises; and

     WHEREAS, the Company desires to employ the Employee for the purpose of securing for the Company the experience, ability and services of the Employee; and

     WHEREAS, the Employee desires to accept employment with the Company effective November 15, 2004 pursuant to the terms and conditions herein set forth, superseding all prior oral and written employment agreements and term sheets and letters between the Company, its subsidiaries and/or predecessors and Employee.

     NOW, THEREFORE, it is mutually agreed by and between the parties hereto as follows:

ARTICLE I

DEFINITIONS

     1.1      Accrued Compensation. “Accrued Compensation” shall mean an amount which shall include all amounts earned or accrued through the "Termination Date" (as defined below) but not paid as of the Termination Date, including (i) Base Salary and, to the extent the First Year Bonus has not been paid in full, the unpaid portion of the First Year Bonus, pro rated in the event Termination is for Cause or by the Employee without Good Reason, (ii) reimbursement for business expenses incurred by the Employee on behalf of the Company, pursuant to the Company’s expense reimbursement policy in effect at such time, (iii) expense allowance, (iv) vacation pay per Company
Policy, and (v) bonuses and incentive compensation earned and awarded prior to the Termination Date.

1

     1.2      Cause. “Cause” shall mean: (i) willful disobedience by the Employee of a reasonable, material and lawful instruction of the Board of Directors of the Company consistent with the duties and functions of Employee’s position; (ii) conviction of the Employee of any misdemeanor involving fraud or embezzlement or similar crime, or any felony; (iii) fraud, gross negligence or willful misconduct in the performance of any material duties to the Company; or (iv) excessive absences from work, other than for illness or Disability; provided that the Company shall not have the right to terminate the employment of Employee pursuant to the foregoing clauses (i), (iii) or
(iv) above unless written notice specifying such breach shall have been given to the Employee and, in the case of breach which is capable of being cured, the Employee shall have failed to cure such breach within thirty (30) days after his receipt of such notice.

     1.3       Change in Control. “Change in Control” shall mean any of the following events: 

     a.      (i) An acquisition (other than directly from the Company) of any voting securities of the Company (the “Voting Securities”) by any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the “1934 Act”)) immediately after which such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of twenty percent (20%) or more of the combined voting power of the Company’s then outstanding Voting Securities; provided, however, that in determining whether a Change in Control has occurred, Voting Securities which are acquired in
a “Non-Control Acquisition” (as defined below) shall not constitute an acquisition which would cause a Change in Control. A “Non-Control Acquisition” shall mean an acquisition by (1) an employee benefit plan (or a trust forming a part thereof) maintained by (x) the Company or (y) any corporation or other Person of which a majority of its voting power or its equity securities or equity interest is owned directly or indirectly by the Company (a “Subsidiary”), or (2) the Company or any Subsidiary.

2

          (ii)  Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because a Person (the “Subject Person”) gained Beneficial Ownership of more than the permitted amount of the outstanding Voting Securities as a result of the acquisition of Voting Securities by the Company which, by reducing the number of Voting Securities outstanding, increases the proportional number of shares Beneficially Owned by the Subject Person, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of Voting Securities by the Company, and after such share acquisition by the Company, the Subject Person becomes
the Beneficial Owner of any additional Voting Securities which increases the percentage of the then outstanding Voting Securities Beneficially Owned by the Subject Person, then a Change in Control shall occur. 

     b.      The individuals who, as of the date this Agreement is approved by the Board, are members of the Board (the “Incumbent Board”), cease for any reason to constitute at least two-thirds of the Board; provided, however, that if the election, or nomination for election by the Company’s stockholders, of any new director was approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes of this Agreement, be considered and defined as a member of the Incumbent Board; and provided, further, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual
“Election Contest” (as described in Rule 14a-11 promulgated under the 1934 Act) or other solicitation of proxies or consents by or on behalf of a Person other than the Board (a “Proxy Contest”); or

3

	 	c.	
 Approval by stockholders of the Company of:

          (i)      A merger, consolidation or reorganization involving the Company, unless: (1) the stockholders of the Company, immediately before such merger, consolidation or reorganization, own, directly or indirectly immediately following such merger, consolidation or reorganization, at least sixty percent (60%) of the combined voting power of the outstanding voting securities of the corporation resulting from such merger or consolidation or reorganization (the “Surviving Corporation”) in substantially the same proportion as their ownership of the Voting Securities immediately before such merger, consolidation or reorganization, (2) the individuals who
were members of the Incumbent Board immediately prior to the execution of the agreement providing for such merger, consolidation or reorganization constitute at least two-thirds of the members of the board of directors of the Surviving Corporation, and (3) no Person (other than the Company, any Subsidiary, any employee benefit plan (or any trust forming a part thereof) maintained by the Company, the Surviving Corporation or any Subsidiary) becomes Beneficial Owner of twenty percent (20%) or more of the combined voting power of the Surviving Corporation’s then outstanding voting securities as a result of such merger, consolidation or reorganization, a transaction described in clauses (1) through (3) shall herein be referred to as a “Non-Control Transaction”; or

4

          (ii)       An agreement for the sale or other disposition of all or substantially all of the assets of the Company, to any Person, other than a transfer to a Subsidiary, in one transaction or a series of related transactions; or

          (iii)      The stockholders of the Company approve any plan or proposal for the liquidation or dissolution of the Company.

      d.      Notwithstanding anything contained in this Agreement to the contrary, if the Employee’s employment is terminated prior to a Change in Control and the Employee reasonably demonstrates that such termination (i) was at the request of a third party who has indicated an intention or taken steps reasonably calculated to effect a Change in Control (a “Third Party”) or (ii) otherwise occurred in connection with, or in anticipation of, a Change in Control, then for all purposes of this Agreement, the date of a Change in Control with respect to the Employee shall mean the date immediately prior to the date of such termination of the Employee’s employment. 

     1.4       Continuation Benefits. “Continuation Benefits” shall be the continuation of the Benefits, as defined in Section 5.1, for the period from the Termination Date to either (i) the later of the Expiration Date, or the end of the month in which the one-year anniversary of the Termination Date occurs, or (ii) such other period as specifically stated by this Agreement (the "Continuation Period"), at the Company’s expense, less any normal payroll deductions, on behalf of the Employee and his dependents; provided, however, if any of the Benefits required to be provided by the Company during the Continuation Period under the Company’s benefit plans are,
pursuant to the terms of such plans, not available to non-employees of the Company, the Company, at its sole cost and expense, less any normal payroll deductions, shall be required to provide such benefits as shall be reasonably available and substantially similar to the benefits provided to employees of the Company.  The Company’s obligation hereunder with respect to the foregoing benefits shall also be limited to the extent that if the Employee obtains such benefits pursuant to a subsequent employer’s benefit plan, the Company may reduce the coverage of any benefits it is required to provide the Employee hereunder as long as the aggregate coverage and benefits of the combined benefit plans is no less favorable to the Employee than the coverage and benefits required to be provided
hereunder. This definition of Continuation Benefits shall not be interpreted so as to limit any benefits to which the Employee, his dependents or beneficiaries may be entitled under any of the Company’s employee benefit plans, programs or practices following the Employee’s termination of employment, including, without limitation, retiree medical and life insurance benefits. 

5

     1.5      Disability. “Disability” shall mean a physical or mental infirmity which impairs the Employee’s ability to substantially perform his duties with the Company for a period of three consecutive months, and the Employee has not returned to his full time employment prior to the Termination Date as stated in the "Notice of Termination" (as defined below). 

     1.6      Good Reason. “Good Reason” shall mean without the written consent of the Employee: (A) a material breach of any provision of this Agreement by the Company; (B) failure by the Company to pay when due any compensation to the Employee; (C) a reduction in the Employee’s Base Salary; (D) failure by the Company to maintain the Employee in the positions referred to in Section 2.1 of this Agreement; (E) assignment to the Employee of any duties materially and adversely inconsistent with the Employee’s positions, authority, duties, responsibilities, powers, functions, reporting relationship or title as contemplated by Section 2.1 of this Agreement or any other
action by the Company that results in a material diminution of such positions, authority, duties, responsibilities, powers, functions, reporting relationship or title; (F) relocation of the principal office of the Company or the Employee’s principal place of employment to a location other than Manhattan in New York City or within the New York City metropolitan area in the State of New Jersey without the Employee’s written consent; or (G) a Change in Control, provided the event on which the Change of Control is predicated occurs within 120 days of the service of the Notice of Termination by the Employee; and provided further, however, that the Employee agrees not to terminate his employment for Good Reason pursuant to clauses (A) through (F) unless (a) the Employee has given the
Company at least 30 days’ prior written notice of his intent to terminate his employment for Good Reason, which notice shall specify the facts and circumstances constituting Good Reason; and (b) the Company has not remedied such facts and circumstances constituting Good Reason to the reasonable and good faith satisfaction of the Employee within a 30-day period after receipt of such notice.  

6

     1.7      Notice of Termination.  “Notice of Termination” shall mean a written notice from the Company, or the Employee, of termination of the Employee’s employment which indicates the specific termination provision in this Agreement relied upon, if any, and which sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Employee’s employment under the provision so indicated.

     1.8      Severance Payment.  “Severance Payment” shall mean an amount equal to the sum of 12 months of the greater of (A) the Employee’s Base Salary in effect on the Termination Date and (B) the highest Base Salary in effect at any time during the ninety (90) day period prior to the Termination Date.  The Severance Payment shall be payable as provided in Section 9.  For purposes of computing the Severance Payment, Base Salary shall include any automatic increases to Base Salary to which the Employee would have been entitled had this Agreement not been terminated.

     1.9       Termination Date. Termination Date shall mean (i) in the case of the Employee’s death, his date of death; (ii) in the case of Good Reason, 30 days from the date the Notice of Termination is given to the Company, provided the Company has not remedied such facts and circumstances constituting Good Reason to the reasonable and good faith satisfaction of the Employee; (iii) in the case of termination of employment on or after the Expiration Date, the last day of employment; and (iv) in all other cases, the date specified in the Notice of Termination; provided, however, if the Employee’s employment is terminated by the Company for any reason except Cause, the date specified in the
Notice of Termination shall be at least 30 days from the date the Notice of Termination is given to the Employee, and provided further that in the case of Disability, the Employee shall not have returned to the full-time performance of his duties during such period of at least 30 days.

7

ARTICLE II

EMPLOYMENT

     2.1  Subject to and upon the terms and conditions of this Agreement, the Company hereby employs and agrees to continue the employment of the Employee, and the Employee hereby accepts such continued employment in his capacity as President and Chief Executive Officer.  The Company shall appoint the Employee to the Board upon the effective date of this Agreement and nominate, and use its best efforts to have elected, the Employee to the Board of Directors of the Company (the “Board”) throughout the term of this Agreement. The Employee agrees to resign from the Board upon the termination of employment for any reason.

ARTICLE III

DUTIES

     3.1      The Employee shall, during the term of his employment with the Company, and subject to the direction and control of the Board, report directly to the Board and shall exercise such authority, perform such executive duties and functions and discharge such responsibilities as are reasonably associated with his executive position or as may be reasonably assigned or delegated to him from time to time by the Board, consistent with his position as President and Chief Executive Officer.  In general, Employee shall have management authority with respect to, and responsibility for, the overall operations and day-to-day business and affairs of the Company and all major operating units and
executives of the Company shall report, either directly or indirectly (through other executives of the Company or its subsidiaries who report directly to the Employee) to the Employee.

8

     3.2      During the term of this Agreement and excluding periods of vacation and sick leave to which the Employee is entitled, the Employee agrees to devote substantially all of his business time and attention to the affairs of the Company and, to the extent necessary to discharge the responsibilities assigned hereunder, use his best efforts in the performance of his duties for the Company and any subsidiary corporation of the Company.  During the term of this Agreement the Employee may, so long as it does not materially interfere with his duties hereunder: (i) subject to Article VII hereof, serve on the board of directors (or equivalent bodies) of civic, non-profit, or charitable
organizations or entities unaffiliated with the Company, (ii) deliver lectures or otherwise participate in speaking engagements, and (iii) manage his personal investments and affairs.

     3.3      Employee shall undertake regular travel to the Company’s executive and operational offices, and such other occasional travel within or outside the United States as is or may be reasonably necessary in the interests of the Company.  All such travel shall be at the sole cost and expense of the Company and all airplane travel shall be first or business class in accordance with the Company’s policy for executive officers.

ARTICLE IV

COMPENSATION

     4.1      During the term of this Agreement, Employee shall be compensated at the rate of $350,000 per annum, subject to such increases to be determined by the Board, or if the Board so designates, the Compensation Committee, in its discretion, at the commencement of each of the Company’s fiscal years during the term of this Agreement (the “Base Salary”).  Base Salary shall be paid to the Employee in regular installments on each of the Company’s regular pay dates for executives, but no less frequently than monthly.

9

     4.2      Employee shall be eligible to receive a bonus (the "Bonus") in the discretion of the Board, or if the Board so designates, the Compensation Committee of the Board based on the annual performance of the Company, except that the First Year Bonus (as defined below) shall be guaranteed.  Employee will have an opportunity to earn a Bonus of up to 50% of Employee’s Base Salary for each fiscal year of employment; provided, however, that the bonus for the first year of employment (the “First Year Bonus”) shall be no less than 50% of Employee’s Base Salary.  The Bonus will be based on Employee’s achievement of revenue and income targets and other key
objectives established at the commencement of each fiscal year by the Board or if the Board so designates, the Compensation Committee of the Board and reasonably acceptable to the Employee.

     4.3      The First Year Bonus shall be paid to the Employee in full no later than one year from the effective date of this Agreement , unless this Agreement is sooner terminated, and all other Bonuses shall be paid to the Employee on the earlier to occur of (x) the first pay period after the filing of the Company’s report on Form 10-K with the Securities and Exchange Commission or (y) at such time as the amount of the Bonus for such period can reasonably be audited by the Company’s independent accountants.  The Company shall deduct from Employee’s compensation all federal, state, and local taxes which it may now or may hereafter be required to deduct under applicable
law.

     4.4      Employee may receive such other additional compensation as may be determined from time to time by the Board including bonuses and other long term compensation plans.  Except for the First Year Bonus and in the event the established performance targets are satisfied, nothing in this subparagraph 4.4 shall be deemed or construed to require the Board to award any bonus or additional compensation.

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     4.5      In the event it shall be determined that any payment or distribution by the Company or any other person or entity to or for the benefit of the Employee is a "parachute payment" within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the "Code"), whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, in connection with, or arising out of, his employment with the Company or a change in control of the Company or a substantial portion of its assets (a "Payment"), and would be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), and
further, if the event which caused the imposition of the Excise Tax is either (i) a Change of Control that is a sale or merger of the Company for a valuation of at least $13.75 per share; (ii) a transaction approved by the Board; or (iii) a Change of Control as defined in Section 1.3(b),  concurrent with the making of such Payment, the Company shall pay to the Employee an additional payment (the "Gross-Up Payment") in an amount such that the net amount retained by the Employee after deduction of any Excise Tax on such Payment and any federal, state or local income tax and Excise Tax on the Gross-Up Payment shall equal the amount of such Payment.  In the event the Internal Revenue Service subsequently may assess or seek to assess from the Employee an amount of Excise Tax in excess
of that determined in accordance with the foregoing, the Company shall pay to the Employee an additional Gross-Up Payment, calculated as described above in respect of such excess Excise Tax, including a Gross-Up Payment in respect of any interest or penalties imposed by the Internal Revenue Service with respect to such excess Excise Tax.  The Gross-Up Payment shall be paid as soon as practicable after it is determined by the Company or the Employee and reviewed for accuracy by the Company’s certified public accountants and in no event later than thirty (30) days after the conclusion of the transaction to which this paragraph applies.

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ARTICLE V

BENEFITS

     5.1      During the term hereof, the Company shall provide Employee with the following benefits, as such benefits may change from time to time (the “Benefits”): (i) group health care and insurance benefits as generally made available to the Company’s senior management; and (ii) such other benefits (including insurance related benefits, holiday, sick leave, personal days, etc.) obtained by the Company or made generally available to the Company’s senior management;

     5.2      The Employee shall receive an expense allowance for automobile and other living expenses of $2,500 per month, prorated and payable with each payroll check.  In addition, the Company shall reimburse Employee, upon presentation of the Company’s standard expense report accompanied by appropriate vouchers and other suitable documentation, incurred by Employee on behalf of the Company, provided such expenditure is consistent with Company policy.   

     5.3      In the event the Company wishes to obtain Key Man life insurance on the life of Employee, Employee agrees to cooperate with the Company in completing any applications necessary to obtain such insurance and promptly submit to such physical examinations and furnish such information as any proposed insurance carrier may request.

     5.4      For the term of this Agreement, Employee shall be entitled to paid vacation at the rate of (4) weeks per annum.

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ARTICLE VI

NON-DISCLOSURE

     6.1    The Employee shall not, at any time during or after the termination of his employment hereunder, except when acting on behalf of and with the authorization of the Company, or when required by law or legal process, or where appropriate in response to regulatory authorities, make use of or disclose to any person, corporation, or other entity, for any purpose whatsoever, any trade secret or other confidential information concerning the Company’s business, finances, marketing, computerized payroll, accounting and information business, personnel and/or employee leasing business of the Company and its subsidiaries, including information relating to any customer of the Company, or any other nonpublic business
information of the Company and/or its subsidiaries learned as a consequence of Employee’s employment with the Company, except for information available publicly or from other non-confidential sources  (collectively referred to as the “Proprietary Information”).  The Employee acknowledges that Proprietary Information, as they may exist from time to time, are valuable and unique assets of the Company, and that disclosure of any such information would cause substantial injury to the Company.  Proprietary Information shall cease to be Proprietary Information, as applicable, at such time as such information becomes public other than through disclosure, directly or indirectly, by Employee in violation of this Agreement.  

     6.2      If Employee is requested or required (by oral questions, interrogatories, requests for information or document subpoenas, civil investigative demands, or similar process) to disclose any Proprietary Information,  Employee shall, unless prohibited by law, promptly notify the Company of such request(s) so that the Company may seek an appropriate protective order.

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ARTICLE VII

RESTRICTIVE COVENANT

     7.1      In the event of the termination of Employee’s employment with the Company at any time, Employee agrees that he will not, for a period of one (1) year following such termination, 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 and/or distribution of computers and/or document imaging systems, or digital image authentication or is otherwise engaged in the same or similar business as the Company in direct competition with the Company, or which the Company was in the process of
developing during the term of Employee’s employment with the Company and such development is based on actual or demonstrative anticipated research.  Notwithstanding the foregoing, (x) the ownership by Employee of less than five percent of the shares of any publicly held corporation shall not violate the provisions of this Article VII, and (y) the Employee shall not be required to comply with any provision of this Article VII following termination of this Agreement if the amounts required to be paid under Article IX are not timely paid.

     7.2      In furtherance of the foregoing, Employee shall not during the aforesaid period of non-competition, directly or indirectly, in connection with any  business primarily involved in the manufacture, development and/or distribution of computers and/or document imaging systems, or digital image authentication services, or any business similar to the business in which the Company was engaged, or in the process of developing during Employee’s tenure with the Company and such development is based on actual or demonstrative anticipated research, solicit any customer or employee of the Company who was a customer or employee of the Company  within one year of the Termination
Date.

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     7.3      Except as otherwise may be agreed by the Company in writing, in consideration of the employment of Employee by the Company, and free of any additional obligations of the Company to make additional payment to Employee, Employee agrees to irrevocably assign to the Company any and all inventions, software, manuscripts, documentation, improvements or other intellectual property whether or not protectable by any state or federal laws relating to the protection of intellectual property, relating to the present or future business of the Company that are developed by Employee  during the term of his/her employment with the Company, either alone or jointly with others, and whether or not
developed during normal business hours or arising within the scope of his/her duties of employment.  Employee agrees that all such inventions, software, manuscripts, documentation, improvement or other intellectual property shall be and remain the sole and exclusive property of the Company and shall be deemed the product of work for hire.  Employee hereby agrees to execute such assignments and other documents as the Company may consider appropriate to vest all right, title and interest therein to the Company and hereby appoints the Company Employee’s attorney-in-fact with full powers to execute such document itself in the event employee fails or is unable to provide the Company with such signed documents.  Notwithstanding the foregoing, this provision does not apply to an invention
for which no equipment, supplies, facility, or trade secret information of the Company was used and which was developed entirely on Employee’s own time, unless (a) the invention relates (i) to the business of the Company, or (ii) to the Company’s actual or demonstrably anticipated research or development, or (b) the invention results from any work performed by Employee for the Company.   

     7.4      If any court shall hold that the duration of non-competition or any other restriction contained in this Article VII 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.

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ARTICLE VIII

TERM

     8.1      This Agreement shall be effective upon execution by both parties hereto and the employment term (the “Initial Term”) shall commence on November 15, 2004 (the "Commencement Date") and terminate on November 14, 2006 (the “Expiration Date”), unless sooner terminated upon the death of the Employee, or as otherwise provided herein.

     8.2      The Company shall  notify in writing the Employee of the Company’s intention to continue Employee’s employment after the Expiration Date no less than 90 days prior to the Expiration Date. 

     8.3       Upon termination the Employee’s employment with the Company, the Company shall pay Employee, in addition to any other payments due hereunder, the amounts due under Article IX.

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ARTICLE IX

TERMINATION

     9.1      The Company may terminate this Agreement by giving a Notice of Termination to the Employee in accordance with this Agreement:

	 	 	a.      for Disability; 

	 	 	b.     for Cause

	 	 	c. 	
 without Cause.

     9.2      Employee may terminate this Agreement by giving a Notice of Termination to the Company in accordance with this Agreement, at any time.  

     9.3       If the Employee’s employment with the Company shall be terminated, the Company shall pay and/or provide to the Employee the following compensation and benefits:

			
 	
 	
a.     if the Employee was terminated by the Company for Cause, or the Employee terminates without Good Reason, the Accrued Compensation; 

			 	 	 
			 	 	b.     if the Employee was terminated by the Company for Disability, the Accrued Compensation, the Severance Payment and the Continuation Benefits; or

			 	 	 
			 	 	c.     if termination was due to the Employee’s death, the Accrued Compensation; or

			 	 	 
			 	 	d.     if the Employee was terminated by the Company without Cause or the Employee terminates this Agreement for Good Reason, (i) the Accrued Compensation; (ii) the greater of (A) the Base Salary to the Expiration Date, or (B) the Severance Payment; and (iii) the Continuation Benefits.

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			e.     In the event the Company fails to notify the Employee in accordance with Section 8.2, or after notifying the Employee fails to reach an agreement on a new employment agreement prior to the Expiration Date, Employee’s employment shall terminate on the Expiration Date and the Company shall pay the Employee the Severance Payment; Accrued Compensation, and the Continuation Benefits.

     9.4       The amounts payable under this Section 9.3, shall be paid as follows:

			a.	Accrued Compensation shall be paid on the first
      regular pay date after the Termination Date (or earlier, if required by
    applicable law). 
			 	 
			
b.	
If the Continuation Benefits are paid in cash, the aggregate amount of the Continuation Benefits  shall be paid as follows: 25% in one lump sum  on the first regular pay date after the Termination Date, and the balance in five equal monthly installments commencing one month after the Termination Date(or earlier, if required by applicable law) on the Company’s regular pay dates.

			 	 
			
c.	
The Severance Payments shall be paid  as follows: 25% in one lump sum within five business days of the Termination Date, and the balance in five equal monthly installments commencing one month after the Termination Date(or earlier, if required by applicable law) on the Company’s regular pay dates; 

			 	 
			
d.	
Notwithstanding the foregoing, in the event counsel for the Employee advises the Employee that any payments should be deferred for six months after the Termination Date, the Company shall defer the payment of all such payments for six months (the “Deferral Period”), and pay, in one lump sum on the sixth month anniversary of the Termination Date, all payments deferred during the Deferral Period, and thereafter all payments shall continue as otherwise provided in this Agreement.

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     9.5      The Employee shall not be required to mitigate the amount of any payment, including the value of any Continuation Benefit, provided for in this Agreement by seeking other employment or otherwise and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Employee in any subsequent employment except as provided in Sections 1.4.

     9.6      For a period of three years following the termination of this Agreement, Employee agrees that he will not make any negative or derogatory statements in verbal, written, electronic or any other form about the Company, including, but not limited to, a negative or derogatory statement made in, or in connection with, any article or book, on a website, in a chat room or via the internet except where such statement is required by law or regulation.  During such three year period, none of the executive officers and directors shall make any negative or derogatory statements in verbal, written, electronic or any other form about the Employee, including, but not limited to, a negative or
derogatory statement made in, or in connection with, any article or book, on a website, in a chat room or via the internet except where such statement is required by law or regulation

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ARTICLE X

TERMINATION OF PRIOR AGREEMENTS

     10.1      This Agreement, and the stock option, bonus plan and benefit plans, sets forth the entire agreement between the parties and supersedes all prior agreements, letters and understandings between the parties, whether oral or written prior to the effective date of this Agreement. 

ARTICLE XI

STOCK OPTIONS

     11.1      As an inducement to Employee to enter into this Agreement the Company hereby grants, as of the date of this Agreement, to Employee options to purchase shares of the Company’s Common Stock, $.001 par value, as follows:

          Subject to the terms and conditions of the Company’s 2000 Employees’ Stock Option Plan (the “Plan”), and the terms and conditions set forth in the Stock Option Agreement which are incorporated herein by reference, the Employee is hereby granted options to purchase 400,000 shares of the Company’s Common Stock, of which options to purchase 100,000 shares shall vest on the date of this Agreement and the balance of 300,000 options shall vest monthly, as long as Employee continues to be an employee of the Company but subject to Section 11.2 hereto, at the rate of 12,500 per month (the “Options”).   The exercise price of the Options shall be the fair market
value per share of the Company’s Common Stock as of the date of grant and shall contain such other terms and conditions as set forth in the stock option agreement. The foregoing Options shall be qualified as incentive stock options to the maximum as allowed by law. The Options provided for herein are not transferable by Employee and shall be exercised only by Employee, or by his legal representative or executor, as provided in the Plan.  Such Options shall terminate as provided in the Plan, except as otherwise modified by this Agreement.

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     11.2      In the event of a termination of Employee’s employment with the Company pursuant to Section 9.1(c) or by the Employee for Good Reason, notwithstanding anything herein or in any stock option agreement to the contrary, (a) the Employee’s right to purchase shares of Common Stock of the Company pursuant to any stock option or stock option plan shall immediately fully vest and become exercisable, (b) the exercise period in which Employee may exercise his options to purchase Company common stock shall be extended to the duration of their original term (as if Employee remained an employee of the Company), and the terms of such options shall be deemed amended to take into
account the foregoing provisions.  In the event of a termination of Employee’s employment with the Company pursuant to Section 9.1(b), options granted and not exercised as of the Termination Date shall terminate immediately and be null and void.  In the event of a termination of Employee’s employment with the Company due to the Employee’s death, or Disability, the Employee’s (or his estate’s or legal representative’s) right to purchase shares of Common Stock of the Company pursuant to any stock option or stock option plan to the extent vested as of the Termination Date shall remain exercisable for a period of twelve (12) months following the Termination Date, but in no event after the expiration of the exercise period. In the event of a termination of
Employee’s employment with the Company by the Employee other than for Good Reason, the Employee’s right to purchase shares of Common Stock of the Company pursuant to any stock option or stock option plan to the extent vested as of the Termination Date shall remain exercisable for a period of three months following the Termination Date, but in no event after the expiration of the exercise period.

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     ARTICLE XII

ARBITRATION AND INDEMNIFICATION

     12.1      Any dispute arising out of the interpretation, application, and/or performance of this Agreement with the sole exception of any claim, breach, or violation arising under Articles VI or VII hereof shall be settled through final and binding arbitration before a single arbitrator in the State of New York in accordance with the Rules of the American Arbitration Association.  The arbitrator  shall be selected by the American Arbitration Association and shall be an attorney-at-law experienced in the field of corporate law.  Any judgment upon any arbitration award may be entered in any court, federal or state, having competent jurisdiction of the parties.

     12.2      The Company hereby agrees to indemnify, defend, and hold harmless the Employee for any and all claims arising from or related to his employment by the Company at any time asserted, at any place asserted, to the fullest extent permitted by law.  The Company shall maintain such insurance as is necessary and reasonable (with minimum coverage of not less than $5,000,000) to protect the Employee from any and all claims arising from or in connection with his employment by the Company during the term of Employee’s employment with the Company and for a period of six (6) years after the date of termination of employment for any reason. The provisions of this Section are in addition to and
not in lieu of any indemnification, defense or other benefit to which Employee may be entitled by statute, regulation, common law or otherwise.

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ARTICLE XIII

SEVERABILITY

     If any provision of this Agreement shall be held invalid and unenforceable, the remainder of this Agreement shall remain in full force and effect.  If any provision is held invalid or unenforceable with respect to particular circumstances, it shall remain in full force and effect in all other circumstances.

ARTICLE XIV

NOTICE

     For the purposes of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when (a) personally delivered or (b) sent by  (i) a nationally recognized overnight courier service or (ii) certified mail, return receipt requested, postage prepaid and in each case addressed to the respective addresses as set forth below or to any such other address as the party to receive the notice shall advise by due notice given in accordance with this paragraph. All notices and communications shall be deemed to have been received on (A) if delivered by personal service, the date of delivery thereof; (B) if delivered by a nationally recognized
overnight courier service, on the first business day following deposit with such courier service; or (C) on the third business day after the mailing thereof via certified mail.  Notwithstanding the foregoing, any notice of change of address shall be effective only upon receipt. 

     The current addresses of the parties are as follows:

	IF TO THE COMPANY:	 	AuthentiDate Holding Corp.

  2165 Technology Drive

   Schenectady, NY 12308
	 	 	                   
	WITH A COPY TO:	 	Victor J. DiGioia

  Goldstein & DiGioia, LLP

  45 Broadway

  New York, NY 10006
		 	                         
	 IF TO THE EMPLOYEE:	 	Surendra Pai
		 	 
	WITH A COPY TO:	 	Victor H. Boyajian

  Sonnenschein, Nath & Rosenthal, LLP

  1221 Avenue of the Americas

  New York, New York 10020
		 	                         

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ARTICLE XV

BENEFIT

     This Agreement shall inure to, and shall be binding upon, the parties hereto, the successors and assigns of the Company, and the heirs and personal representatives of the Employee.

ARTICLE XVI

WAIVER

     The waiver by either party of any breach or violation of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach of construction and validity.

ARTICLE XVII

GOVERNING LAW

     This Agreement has been negotiated and executed in the State of New York.  The law of the State of New York shall govern the construction and validity of this Agreement.

ARTICLE XVIII

JURISDICTION

     Any or all actions or proceedings which may be brought by the Company or Employee under this Agreement shall be brought in courts having a situs within the State of New York, and Employee and the Company each hereby consent to the jurisdiction of any local, state, or federal court located within the State of New York.

ARTICLE XIX

ENTIRE AGREEMENT

     This Agreement contains the entire agreement between the parties hereto.  No change, addition, or amendment shall be made hereto, except by written agreement signed by the parties hereto.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement and affixed their hands and seals the day and year first above written.

AuthentiDate Holding Corp.

By:___________________________________

      J.
Edward Sheridan

      Chairman of the Compensation Committee 

Employee

______________________________________

Surendra Pai

Employee

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