Document:

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                                                                   EXHIBIT 10.15

                           SECURITY EXCHANGE AGREEMENT

      Agreement entered into as of May 15, 2001, between Authentidate Holding
Corp. (f/k/a Bitwise Designs, Inc.), a Delaware corporation with its address at
2165 Technology Drive, Schenectady, New York, 12308 ("AHC"); Authentidate, Inc.,
a Delaware corporation with its address at Two World Financial Center, 43rd
Floor, New York, New York 10281 ("Authentidate"); and the undersigned holder of
securities of Authentidate whose name appears on the signature page annexed
hereto (the "Securityholder"). AHC, Authentidate and the Securityholders are
referred to collectively herein as the "Parties."

                                    RECITALS:

      WHEREAS, AHC owns approximately 82% of the outstanding shares of the
Common Stock of Authentidate; and

      WHEREAS, AHC has determined that it is in the best interests of its
shareholders that AHC make an offer to acquire the remaining outstanding shares
of Common Stock, options and warrants to purchase Common Stock of Authentidate
(the "Transaction") from the holders thereof; and

      WHEREAS, the Board of Directors of Authentidate has determined that it is
in the best interests of Authentidate and its shareholders that the Transaction
be conducted as proposed herein; and

      WHEREAS, the undersigned Securityholder of Authentidate has determined it
to be in his best interests to accept the Transaction upon the terms and
conditions contained herein.

      NOW, THEREFORE, in consideration of the premises and the mutual promises
herein made, and in consideration of the representations, warranties, and
covenants herein contained, and other good and valuable consideration, the
Parties agree as follows.

      1.    DEFINITIONS

      For purposes of this Agreement:

      "Authentidate Certificate" shall mean a certificate representing
Authentidate Shares or Authentidate Convertible Securities.

      "Authentidate Convertible Security" shall mean all options, warrants and
other securities issued by Authentidate which are convertible into Authentidate
Shares.

      "Authentidate Share" shall mean all shares of Common Stock of
Authentidate, par value $.001 per share, including any Authentidate Shares which
may be issued to any Authentidate Securityholder upon conversion of any
Authentidate Convertible Security.
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      "Authentidate Securities" means the Authentidate Shares and Authentidate
Convertible Securities.

      "Authentidate Securityholder" shall mean the beneficial owner of any
Authentidate Shares or Authentidate Convertible Securities.

      "AHC Shares" shall mean shares of Common Stock of AHC, par value $.001 per
share.

      "AHC Convertible Security" shall mean all options, warrants, and other
securities issued by AHC which are convertible into AHC Shares which may be
issued to Authentidate Securityholders in exchange for the Authentidate
Convertible Securities held by such Authentidate Securityholders.

      "Confidential Information" means any information which has been or is
concurrently herewith provided to an Authentidate Securityholder (i) in
connection with this Agreement, which is identified as, or should be reasonably
understood to be, confidential to Authentidate, and/or (ii) as a result of the
Authentidate Securityholder's investment in Authentidate or employment by
Authentidate (whether as an employee or consultant or otherwise), including, but
not limited to, trade secrets and confidential information disclosed to the
Securityholders or known by them as a consequence of their transactions with AHC
and/or Authentidate, whether or not pursuant to this Agreement, and not
generally known in the industry, concerning AHC's and Authentidate's business,
finances, methods, operations, know-how, trade secrets, data, technical
processes and formulas, source code, product designs, sales, cost and other
unpublished financial information, product and Business Plans, projections,
marketing data, information, research and development, customers, pricing and
information relating to proposed expansion and this Agreement and all exhibits
hereto.

      "Exchange Ratio" has the meaning set forth in Section 2(a) herein.

      "Liability" means any liability (whether known or unknown, whether
asserted or unasserted, whether absolute or contingent, whether accrued or
unaccrued, whether liquidated or unliquidated, and whether due or to become
due).

      "Person" means an individual, a partnership, a corporation, a limited
liability company or partnership, an association, a joint stock company, a
trust, a joint venture, an unincorporated organization, or a governmental entity
(or any department, agency, or political subdivision thereof).

      "Released Claims" means any and all claims, suits, damages, losses, causes
of action, known or unknown, of the undersigned Securityholder and any heir,
affiliate, officer, director, successor, agent or employee of Securityholder
that Securityholder may have in the future or presently has against AHC or
Authentidate (and/or their respective officers, directors, employees, affiliates
and agents) related to, arising under, or out of: (i) Securityholder's purchase
and/or ownership of Authentidate Securities or any documents related thereto or
evidencing same; (ii) the formation and operation of Authenticate from its
inception to the date hereof; (iii) any and all shareholder derivative actions
or any other shareholder claims arising out of or under the Delaware General

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Corporation Law and (iv) any agreement or contract (written or oral) for the
performance of services existing between the Authenticate Securityholder and
Authenticate other than a written employment agreement between Authenticate and
its employees.

      "Transfer" A Person shall be deemed to have effected a "Transfer" of a
security if such person directly or indirectly: (i) sells, pledges, encumbers,
grants an option with respect to, transfers or disposes of such security or any
interest in such security or (ii) enters into an agreement or commitment
providing for the sale of, pledge of, encumbrances of, grant of an option with
respect to, transfer of or disposition of such security or any interest therein.

      2.    OFFER TO EXCHANGE AUTHENTIDATE SECURITIES

      (a) Basic Transaction. Subject to the terms and conditions of this
Agreement, AHC hereby offers, until 5:00 pm on May 10, 2001, to purchase from
the undersigned Authentidate Securityholder any and all Authentidate Securities
owned by the undersigned in exchange for:

            (i)   with respect to the Authentidate Shares, such number of AHC
                  Shares on a basis of 1.5249 AHC Shares for each Authentidate
                  Share (the "Exchange Ratio") as set forth in clause 2(d)
                  hereof; and

            (ii)  with respect to the Authentidate Convertible Securities, such
                  number of AHC Convertible Securities as adjusted by the
                  Exchange Ratio, as set forth in Clause 2(e) below.

      All fractional AHC Shares or AHC Convertible Securities resulting from the
Transaction shall be rounded up or down to the nearest whole share.

      (b) The Closing. The closing of the Transaction contemplated by this
Agreement (the "Closing") shall be deemed to take place at the offices of AHC,
at 5:00 p.m. local time on May 10, 2001 (the "Closing Date").

      (c) Deliveries at the Closing. At or the prior to the Closing, (i) the
Securityholder will deliver to AHC the various certificates, instruments, and
documents as set forth below and (ii) AHC will deliver to the Securityholder the
various certificates, instruments, and documents as set forth below:

            (i)   On or before 5:00 pm on May 10, 2001, in order to accept this
                  offer, Securityholder shall deliver to AHC, an executed copy
                  of this Agreement and all original Authentidate Shares or
                  Authentidate Convertible Securities owned by Securityholder;
                  and

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            (ii)  Within 10 business days of receipt of the documents to be
                  delivered by the Securityholder in clause (i) above, AHC shall
                  deliver to the Securityholder the AHC Shares and/or AHC
                  Convertible Securities.

      IF YOU HAVE NEVER RECEIVED A PHYSICAL CERTIFICATE FOR YOUR AUTHENTIDATE,
      INC. SECURITIES, PLEASE CHECK THE BOX ON THE SIGNATURE PAGE.

      (d) Conversion of Authentidate Shares. Upon delivery of the
Securityholder's Authentidate Shares to AHC together with an executed copy of
this Agreement, subject to AHC's acceptance thereof, the Authentidate Shares
owned by Securityholder will be deemed converted automatically into the right to
receive that number of AHC Shares determined according to the Exchange Ratio.

      (e) Conversion of Authentidate Convertible Securities. Upon delivery of
the Securityholder's Authentidate Convertible Securities to AHC together with an
executed copy of this Agreement, the Authentidate Convertible Securities will be
converted automatically into the right to receive such number of AHC Convertible
Securities (and at such exercise or conversion price) as equals the number of
Authentidate Convertible Securities held by the Authentidate Securityholder
adjusted by the Exchange Ratio. The terms and conditions governing the holder's
right to receive AHC Shares pursuant to the AHC Convertible Securities shall be,
to the fullest extent possible, the same as governed such holder's right to
receive Authentidate Shares under the Authentidate Convertible Securities,
including the exercise term and registrations rights, if any, as are contained
in the Authentidate Convertible Securities. By way of example and not by
limitation, an Authentidate Convertible Security (such as a warrant) with an
exercise price of $3.00 per share for 100 shares with an exercise term of 3
years will be exchanged for a warrant to purchase 152 AHC Shares with an
exercise price of $1.97. The exercise term would remain at 3 years from the date
of original issuance. In the event that a holder of an option to purchase
Authentidate shares is not eligible under the AHC option plans to receive an AHC
option, then such person will receive an AHC warrant in replacement.

      (f) If any certificate for AHC Shares or AHC Convertible Securities is to
be issued in a name other than the name in which the Authentidate Securities
surrendered in exchange therefor is registered, it will be a condition of the
issuance thereof that (i) Authentidate Security so surrendered will be properly
endorsed and otherwise in proper form for transfer and accompanied by all other
documents required to evidence and effect such transfer and (ii) either (x) that
the Person requesting such exchange will have paid any transfer or other taxes
required by reason of the issuance of a certificate for AHC Shares or AHC
Convertible Securities in a name other than the name of the registered holder of
the Authentidate Security surrendered or (y) established to the satisfaction of
AHC, or any agent designated by AHC, that such tax has been paid or is not
applicable.

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      (g) Notwithstanding anything to the contrary in this Agreement, neither
AHC nor Authentidate shall be liable to an Authentidate Securityholder that was
properly delivered to a public official pursuant to any applicable abandoned
property, escheat or similar law.

      (h) AHC will be entitled to deduct and withhold from the consideration
otherwise payable pursuant to this Agreement to any holder of Authentidate
Shares or Authentidate Convertible Securities such amounts as AHC (or any
Affiliate thereof) shall determine in good faith they are required to deduct and
withhold with respect to the making of such payment under the Internal Revenue
Code, or any provision of federal, state, local or foreign tax law. To the
extent that amounts are so withheld by AHC, such withheld amounts will be
treated for all purposes of this Agreement as having been paid to the holder of
Authentidate Shares or Authentidate Convertible Securities in respect of whom
such deduction and withholding were made by AHC.

      (i) Additional Documents. Securityholder hereby covenants and agrees to
execute and deliver any additional documents necessary or desirable, in the
reasonable opinion of AHC, to carry out the intent of this Agreement.

      3.    RESTRICTED STATUS OF AHC SHARES AND AHC CONVERTIBLE SECURITIES

      (a) Securityholder understands that: (i) the AHC Shares and/or AHC
Convertible Securities have not been and are not being registered under the 1933
Act or any state securities laws, and may not be offered for sale, sold,
assigned or transferred unless (A) they have been subsequently registered
thereunder, or (B) Securityholder shall have delivered to the Company an opinion
of counsel acceptable to the Company, in a generally acceptable form, to the
effect that such AHC Shares and/or AHC Convertible Securities to be sold,
assigned or transferred may be sold, assigned or transferred pursuant to an
exemption from such registration.

      (b) Securityholder understands that the certificates or other instruments
representing the AHC Shares and/or AHC Convertible Securities shall bear a
restrictive legend in substantially the following form (and a stop-transfer
order may be placed against transfer of such stock certificates):

      THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
      SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD,
      TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE
      REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF
      1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR (B) AN OPINION
      OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT
      REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS OR (II) UNLESS
      SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

      4.    NON-DISCLOSURE AND CONFIDENTIALITY.

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      The undesigned Authentidate Securityholder covenants and agrees, on behalf
of itself its affiliates, parent, subsidiaries, directors, officers, employees,
agents, heirs, successors and assigns, that it shall not, at any time during or
after the termination of this Agreement, make use of or disclose to any person,
corporation, or other entity, for any purpose whatsoever, any trade secret or
other Confidential Information and not to use any such Confidential Information
for any purpose other than the purpose for which it was originally disclosed to
the receiving party. The undersigned acknowledges that the Confidential
Information is the property of Authentidate and AHC. This Section 4 shall
survive termination of this Agreement.

      5.    SECURITYHOLDER RELEASE.

      Securityholder, on behalf of itself, its affiliates, parent, subsidiaries,
directors, officers, employees, agents, heirs, successors and assigns, hereby
releases and discharges in full all Released Claims, known and unknown, that he
may have existing as of the date hereof or in the future against AHC and/or
Authentidate and/or their respective affiliates, agents, officers, directors,
successors, assigns or employees. This Section 5 shall survive termination of
this Agreement. Securityholder's sole remedy and rights against AHC and
Authenticate after the date hereof shall be to enforce performance by AHC of
AHC's obligations under this Agreement.

      Before signing my name to this Agreement, the undersigned Securityholder
confirms and states that the undersigned:

      1.    has read it and understands that important rights are being given
            up.

      2.    means everything that is said; and

      3.    has signed it freely as the act and deed of the undersigned.

      6.    REPRESENTATIONS BY THE PARTIES.

      (a)   Representations of AHC

            (i) AHC has the full right, power, legal capacity and authority to
enter into this Agreement and to complete the transactions herein contemplated
and this Agreement constitutes a valid and binding obligation of AHC, and is
enforceable against AHC in accordance with its terms.

            (ii) The AHC Shares and AHC Convertible Securities to be issued to
the Authentidate Securityholders upon the consummation of the Transaction, when
delivered in accordance with this Agreement, shall be duly authorized, validly
issued, fully paid and nonassessable.

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             (iii) The issuance of such AHC Shares and AHC Convertible
Securities in connection with this Agreement will be exempt from registration
under the Securities Act of 1933, as amended, and applicable state securities
laws. The AHC Shares and AHC Convertible Securities to be issued to the
Authentidate Securityholders pursuant to Transaction are restricted securities
under Rule 144 of the Securities Act of 1933 and shall bear an appropriate
legend as such.

            (iv) AHC has delivered simultaneously herewith to the Authentidate
Securityholders a copy of the AHC (A) Proxy Statement dated as of February 16,
2001, as supplemented for its meeting of shareholders held on March 23, 2001,
(B) Annual Report for the fiscal year ended June 30, 2000 and (C) Reports on
Form 10Q for the quarters ended September 30, 2000 and December 31, 2000
(together such material being referred to as the "AHC Disclosure Documents"),
and such other material regarding the Transaction as may be necessary or
desirable to advise the Authentidate Securityholders of the terms and risks of
the Transaction

      (b)   Representations of Authentidate

            (i) Authentidate has the full right, power, legal capacity and
authority to enter into this Agreement and to complete the transactions herein
contemplated and this Agreement constitutes a valid and binding obligation of
Authentidate, and is enforceable against Authentidate in accordance with its
terms.

            (ii) All the issued and outstanding Authentidate Shares and
Authentidate Convertible Securities are validly issued, fully paid and
nonassessable.

            (iii) As of the date of this Agreement, Authentidate has an
authorized capitalization of 20,000,000 shares of Common Stock and 5,000,000
shares of Preferred Stock. As of the date of this Agreement, there are 3,602,436
shares of Common Stock of Authentidate issued and outstanding and no shares of
Preferred Stock of Authentidate issued and outstanding. Further, as of the date
of this Agreement, Authentidate has issued options and warrants to purchase
714,676 shares of its Common Stock.

      (c)   Representations of the Securityholder

      The Securityholder represents and warrants to AHC and Authentidate that
he:

            (i) is the beneficial owner of the Authentidate Shares and
Authentidate Convertible Securities indicated on the Securityholder signature
page of this Agreement, free and clear of any liens, claims, options, rights of
first refusal, co-sale rights, charges or other encumbrances;

            (ii) does not beneficially own any securities of Authentidate other
than the Authentidate Shares and Authentidate Convertible Securities indicated
on the Securityholder

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signature page of this Agreement;

            (iii) has the full power and authority to make, enter into and carry
out the terms of this Agreement and this Agreement constitutes a valid and
binding obligation of the Securityholder;

            (iv) acknowledges and understands: (a) that the issuance of such AHC
Shares and AHC Convertible Securities in connection with this Agreement will be
exempt from registration under the Securities Act of 1933, as amended, and
applicable state securities laws; and (b) that the AHC Shares and AHC
Convertible Securities to be issued to the Authentidate Securityholders pursuant
to Transaction are restricted securities under Rule 144 of the Securities Act of
1933 and shall bear an appropriate legend as such and (c) the AHC Shares and AHC
Convertible Securities are being acquired for his own account for investment and
not with a view to distribution, and with no present intention of distributing
the securities or selling the securities for distribution ;

            (v) Securityholder has received a copy, together with this
Agreement, of the (A) Proxy Statement dated as of February 16, 2001, as
supplemented for its meeting of shareholders held on March 23, 2001, (B) Annual
Report for the fiscal year ended June 30, 2000 (C) Reports on Form 10Q for the
quarters ended September 30, 2000 and December 31, 2000 (the Proxy Statement,
Annual Report and Forms 10Q together being referred to as the "AHC Disclosure
Documents") and (D) Disclosure Statement dated as of the dated hereof, and such
other material regarding the Transaction as may be necessary or desirable to
advise the Authentidate Securityholders of the terms and risks of the
Transaction.

            (vi) is an "accredited investor" as defined under Rule 501 of
Regulation D promulgated under the Securities Act of 1933, as amended.

            (vii) in the event that the Securityholder is a corporation or
similar entity, the person executing this Agreement on behalf of the
Securityholder has been duly authorized to so execute, and all corporate action
required to be taken to effectuate this Agreement has been completed.

            (viii) The Securityholder has such knowledge and experience in
financial and business matters as is required for evaluating the merits and
risks of making this investment, and the Securityholder has received such
information requested by the Securityholder concerning the business, management
and financial affairs of the Company in order to evaluate the merits and risks
of accepting or not accepting the Exchange Offer. Further, the Securityholder
acknowledges that the Securityholder has had the opportunity to ask questions
of, and receive answers from, the officers of the Company concerning the terms
and conditions of this investment and to obtain information relating to the
organization, operation and business of the Company and of the Company's
contracts, agreements and obligations. No representation or warranty is made by
the Company to induce the Securityholder to accept or reject the Exchange

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Offer, and any representation or warranty not made herein is specifically
disclaimed

      8.    TERMINATION

      (a) Termination of Agreement. AHC may terminate this Agreement at anytime
prior to May 15, 2001 without notice to the Securityholder.

      (b) Effect of Termination. If this Agreement is terminated pursuant to
Section 8(a) above, all rights and obligations of the Parties hereunder shall
terminate without any Liability of any Party to any other Party.

      9.    MISCELLANEOUS

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

      (b) No Third-Party Beneficiaries. This Agreement shall not confer any
rights or remedies upon any Person other than the Parties and their respective
successors and permitted assigns.

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

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

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

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

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      (g) Notices. All notices, requests, demands, claims, and other
communications hereunder will be in writing. Any notice, request, demand, claim,
or other communication hereunder shall be deemed duly given if (i) (and then
three business days after) it is sent by registered or certified mail, return
receipt requested, postage prepaid, or (ii) sent by overnight courier service,
and addressed to the intended recipient as set forth below:

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      If to AHC:                          If to Authentidate:

      Authentidate Holding Corp           Authentidate, Inc.
      2165 Technology Drive               Two World Financial Center, 43rd Floor
      Schenectady, NY 12308               New York, NY 10281
      Attn: John T. Botti                 Attn: Rob Van Naarden

      With a copy to:

      Goldstein & DiGioia LLP
      369 Lexington Avenue
      New York, New York 10017
      Attn: Victor DiGioia, Esq.

      If to the Securityholders:

      At the addresses provided on the Securityholder signature page of this
Agreement

Any Party may send any notice, request, demand, claim, or other communication
hereunder to the intended recipient at the address set forth above using any
other means (including personal delivery, expedited courier, messenger service,
fax or ordinary mail), but no such notice, request, demand, claim, or other
communication shall be deemed to have been duly given unless and until it
actually is received by the intended recipient. Any Party may change the address
to which notices, requests, demands, claims, and other communications hereunder
are to be delivered by giving the other Parties notice in the manner herein set
forth.

      (h) Governing Law. This Agreement shall be governed by and construed in
accordance with the domestic laws of the State of New York without giving effect
to any choice or conflict of law provision or rule (whether of the State of New
York or any other jurisdiction) that would cause the application of the laws of
any jurisdiction other than the State of New York. The Parties (a) agree that
any legal suit, action or proceeding arising out of or relating to this
Agreement shall be instituted exclusively in New York State Supreme Court,
County of New York, or in the United States District Court for the Southern
District of New York, (b) waives any objection which any Party may have now or
hereafter to the venue of any such suit, action or proceeding, and (c)
irrevocably consent to the jurisdiction of the New York State Supreme Court,
County of New York and the United States District Court for the Southern
District of New York in any such suit, action or procedure. Each of the Parties
further agrees to accept and acknowledge service of any and all process which
may be served in any suit, action or proceeding in the New York State Supreme
Court for the Southern District of New York, and agrees that service of process
mailed by certified mail to the recipients address as set forth on the signature
page hereto shall be deemed in every respect effective service of process in any
such suit, action or proceeding.

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      (i) Amendments and Waivers. No amendment of any provision of this
Agreement shall be valid unless the same shall be in writing and signed by the
Parties. No waiver by any Party of any default, misrepresentation, or breach of
warranty or covenant hereunder, whether intentional or not, shall be deemed to
extend to any prior or subsequent default, misrepresentation, or breach of
warranty or covenant hereunder or affect in any way any rights arising by virtue
of any prior or subsequent such occurrence.

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

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

      (l) Construction. 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
"including" shall mean including without limitation. The Parties intend that
each representation, warranty, and covenant contained herein shall have
independent significance. If any Party has breached any representation,
warranty, or covenant contained herein in any respect, the fact that there
exists another representation, warranty, or covenant relating to the same
subject matter (regardless of the relative levels of specificity) which the
Party has not breached shall not detract from or mitigate the fact that the
Party is in breach of the first representation, warranty, or covenant.

      (m)   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.

      (n) Specific Performance. Each of the Parties acknowledges and agrees that
the other Parties would be damaged irreparably in the event any of the
provisions of this Agreement are not performed in accordance with their specific
terms or otherwise are breached. Accordingly, the Parties agree that AHC and/or
Authentidate shall be entitled to an injunction or injunctions to prevent
breaches of the provisions of this Agreement and to enforce specifically this
Agreement and the terms and provisions hereof in any action instituted in any
court of the United States or any state thereof having jurisdiction over the
Parties and the matter, in addition to any other remedy to which they may be
entitled, at law or in equity.

      (o)   Documents Delivered.  Each Securityholder acknowledges receipt of
the AHC Disclosure Documents and the Disclosure Schedule.

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

AUTHENTIDATE HOLDING CORP.
(f/k/a BITWISE DESIGNS,  INC.)

By:____________________________
Name: John T. Botti
Title: Chief Executive Officer

AUTHENTIDATE, INC.

By:____________________________
Name: Rob Van Naarden
Title: Chief Executive Officer

                                       13<PAGE>   1
                                                                   EXHIBIT 10-16

                                    AGREEMENT

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

                                    RECITALS

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

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

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

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

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

         NOW, THEREFORE, the Parties agree as follows.

                                    ARTICLE I
                                   DEFINITIONS

         1.0 For the purposes of this Agreement:

         "Affiliates" of any Party means any entity that controls, is controlled
by or is under common control with such Party. For purposes of this definition,
"control" will mean the possession, directly or indirectly, of a majority of the
voting power of such entity (whether through ownership of securities or
partnership or other ownership interests, by contract or otherwise).
<PAGE>   2
         "Authentidate License" means the non-exclusive license or licenses to
the Authentidate Software to be granted to Newco by Authentidate to operate the
Service in the Territory.

         "Authentidate Service" means the service provided by Authentidate
whereby data may be date and time stamped through application of the
Authentidate Software.

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

         "Authentidate Technology" means [* * *] ("Related Patents").

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

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

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

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

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

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

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

                                        2
<PAGE>   3
         "Service" means the authentication process developed, and to be
developed, by Newco to authenticate and register sports and entertainment
memorabilia.

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

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

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

                                   ARTICLE II
                         PURPOSE AND SCOPE OF AGREEMENT

         2.1 Condition Precedent

         [* * *]

         2.2 Purpose

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

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

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

         2.3 No Partnership

                                        3
<PAGE>   4
                  Nothing in this Agreement shall be construed as creating
between the Parties a partnership, fiduciary or other similar relationship or a
joint venture except as expressly provided for herein. Nothing in this Agreement
shall create or imply any exclusive relationship or any obligation to inform any
other Party, offer to any other Party or to include any other Party in any
opportunity which may be available to one of the Parities in the future except
as provided in the License.

                                   ARTICLE III
                            CAPITALIZATION OF A-GRAPH

         3.1 Initial Capitalization

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

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

                  (i)      [* * *];

                  (ii)     Subject to Section 2.1 of this Agreement, [* * *].

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

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

                  (a)      Holding shall own [* * *] shares of the Common Stock
                           of Newco;

                  (b)      IVC shall own [* * *] shares of the Common Stock of
                           Newco; and

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

         3.3 Representations Regarding Themelis Shares

                  Nicholas Themelis hereby represents and warrants that the
grant to him of the Themelis Shares is in consideration of his waiver to all
compensation due him pursuant to Article X(D) of his Employment Agreement with
Holding, dated February 28, 2000 and that neither Holding, Newco, nor any
subsidiary or affiliate of Newco has any further obligation to grant Themelis
compensation relating to the Themelis Shares. Themelis hereby, releases and
discharges Holding, Newco, their subsidiaries, affiliates, directors, officers,
successors, present employees, former employees, agents, representatives and
assigns (the "Released Persons") from

                                        4
<PAGE>   5
any and all claims, demands or causes of action of any kind or nature whatsoever
which Themelis may have or could claim to have against the Released Persons,
from the beginning of the world up to the date of this Agreement arising out of
Article X(D) of the February 28, 2000 Employment Agreement.

         3.4 Additional Capital

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

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

                                   ARTICLE IV
                                     CLOSING

         4.1 Formation of Newco

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

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

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

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

         4.2 Closing

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

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

                                        5
<PAGE>   6
                  (i) The certificates representing the number of Shares of
Common Stock issuable to Holding and IVC, as set forth in Section 3.1 of this
Agreement, shall be issued to Holding and IVC;

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

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

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

                                    ARTICLE V
                     SHARE CERTIFICATES; TRANSFERS OF SHARES

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

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

         THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAWS AND NEITHER
         SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED,
         ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT
         WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE
         STATE SECURITIES LAWS, OR (2) THE COMPANY RECEIVES AN OPINION OF
         COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE
         REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE
         OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER
         CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT
         OR APPLICABLE STATE SECURITIES LAWS.

         Transfer of the shares represented by this certificate is restricted by
         the terms of a certain Agreement dated as of May 24, 2001, a copy of
         which is on file at the office of the Company. No sale, assignment,
         pledge, encumbrance or other transfer shall be effective unless and the
         terms and conditions of the Agreement shall have been complied with in
         full.

         5.3 Right of First Refusal.

                                        6
<PAGE>   7
         (a) Subject to Section 5.4, whenever and as often as any Party desires
to sell any Newco Shares (referred to in Sections 5.3 and 5.4 as "Restricted
Stock"), such proposed sale must be for an aggregate consideration of at least
$100,000 and pursuant to a bona fide written offer to purchase such shares. In
such event, the Party desiring to sell Restricted Stock (the "Selling
Shareholder") shall give written notice to each other Party (for purposes of
Sections 5.3 and 5.4 each, an "Offeree" and collectively, the "Offerees") and
also to Newco to such effect, enclosing a copy of such offer and specifying the
number of shares of Restricted Stock that the Selling Shareholder desires to
sell, the name of the person or persons to whom the Selling Shareholder desires
to make such sale and the consideration per share of Common Stock that has been
offered in connection with such offer. In the event that such consideration
includes non-cash consideration, the dollar value of such non-cash consideration
shall be its fair market value, as reasonably determined by the Board of
Directors ("Fair Market Value").

         (b) Upon receipt of the Notice, the Offerees shall initially have the
first right and option to purchase the shares proposed to be sold for the same
consideration, at the same purchase price and on the same terms as specified in
the Notice, pro rata on the basis of the number of shares of Common Stock then
held by them, exercisable for 20 Business Days after service of the Notice.
Failure of any Offeree to respond to the Notice within such 20-Business Day
period shall be deemed to constitute a notification to the Selling Shareholder
of such Offeree's decision not to exercise the first right and option to
purchase shares of Restricted Stock under this Section 5.3. If any Offeree fails
to exercise his, her or its first right and option, the Selling Shareholder
shall give written notice to each of the other Offerees who has elected to
purchase his, her or its pro rata share of the shares of Restricted Stock
proposed to be transferred, and each such Offeree shall have the right,
exercisable for a period of three days from the date of receipt of such notice,
to purchase the remaining shares of Restricted Stock, pro rata on the basis of
the number of shares of Common Stock then held by all such electing Offerees
exercising such right to purchase such remaining shares or in such other
proportions as they may agree. An Offeree may exercise his, her or its right and
option to purchase such Restricted Stock by giving written notice of exercise to
the Selling Shareholder and to the Company within the period or periods
specified above, specifying the date (not later than three days from the date of
expiration of all applicable first rights and options to purchase shares under
this paragraph) upon which payment of the purchase price for the shares
purchased pursuant to this paragraph shall be made. The Selling Shareholder
shall deliver to the Offeree(s) at Newco's principal office, at least one day
prior to the payment date, wire transfer instructions (if funds are to be wired)
and, prior to the close of business on the payment date specified in such
notice, the certificate or certificates representing the shares being purchased
by the Offeree(s), properly endorsed for transfer, free and clear of any
restrictions, Liens or claims, against payment of the purchase price therefor by
the Offeree(s) in immediately available funds.

         (c) In the event that all of the shares of Restricted Stock proposed to
be transferred are not purchased by the Offerees, Newco shall have the right and
option to

                                        7
<PAGE>   8
purchase the balance of the shares proposed to be transferred for the same
consideration, at the purchase price per share specified in the Notice and on
the same terms as specified in the Notice, exercisable for 15 Business Days
after expiration of the option period set forth in Section 5.3 (b). Failure of
Newco to respond to such Notice within such 15 day period shall be deemed to
constitute a notification to the Selling Shareholder of Newco's decision not to
exercise the right and option to purchase shares of Restricted Stock under this
Section 5.3. Newco may exercise its right and option to purchase such Restricted
Stock by giving written notice of exercise to the Selling Shareholder within
such 15-Business Day period, specifying the date (not later than three days from
the date of such notice) upon which payment of the purchase price for the shares
shall be made. The Selling Shareholder shall deliver to Newco's principal
office, at least one day prior to the payment date, wire transfer instructions
(if funds are to be wired) and, prior to the close of business on the payment
date specified in such notice, the certificate or certificates representing the
shares being purchased by Newco, properly endorsed for transfer, free and clear
of any restrictions, Liens or claims, against payment of the purchase price
therefor by Newco in immediately available funds.

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

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

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

         5.4 Co-Sale Rights.

         (a) Whenever and as often as any Party shall receive a bona fide offer
to purchase any shares of Restricted Stock from a prospective purchaser that the
Selling Shareholder wishes to accept, each Offeree shall have the right, at his,
her or its option, either to exercise his, her or its rights under Section 5.3
or to participate in the sale to the prospective purchaser pursuant to this
Section 5.4. The Selling Shareholder shall use his, her or its best efforts to
arrange for the sale to the prospective purchaser of, in the aggregate, such
shares of Common Stock held by the Offerees as shall equal the number of shares
proposed to be sold by the Selling Shareholder. For purposes of this Section
5.4, an Offeree may elect to sell Common Stock at the purchase price per share
specified for the Common Stock in the Notice. If the prospective purchaser will
not purchase all of the shares of Restricted Stock and

                                        8
<PAGE>   9
Common Stock that the Selling Shareholder and the electing Offerees wish to sell
pursuant to this Section 5.4, the number of Restricted Shares and shares of
Common Stock the Selling Shareholder and Offerees shall be entitled to sell
shall be reduced on a pro rata basis to an amount equal to the aggregate number
of Restricted Shares and shares of Common Stock the prospective purchaser is
willing to purchase. The number of shares each Offeree shall be entitled to sell
to such prospective purchaser shall be determined pro rata based on the relative
number of shares of Common Stock owned by each Offeree. An Offeree may exercise
his, her or its right under this paragraph by written notice given within seven
days after receipt of the Notice specifying the number of shares of Common Stock
that such Offeree wishes to sell.

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

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

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

         5.5 At the request of the underwriter in the initial public offering of
the Common Stock of Newco, holders of shares of Common Stock of Newco, including
the shares issuable upon exercise of the Themelis Options, agree to enter into a
Lock-up Agreement with the Underwriter for a period of time not to exceed twelve
months, or such other shorter period of time requested by the underwriter, from
the date of the initial public offering.

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

         5.7 Any Transfer by a Party of an interest in Newco shall be effective
only upon the execution and delivery by the transferor of an appropriate
irrevocable and unconditional guarantee to continue to be bound by the
provisions of this Agreement and the By-laws and

                                        9
<PAGE>   10
Charter of Newco together with instruments of assumption under which the
Affiliate agrees to be bound by this Agreement and the By-laws and Charter of
Newco. An assignment or Transfer shall not release the transferor of any of its
obligations hereunder or under the By-laws and Charter of Newco.

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

                                   ARTICLE VI
                            BUSINESS PLAN OF A-GRAPH

         6.1 Business Plan

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

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

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

                                   ARTICLE VII
                               MANAGEMENT OF NEWCO

         7.1 Board of Directors

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

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

         (c) The consent of the IVC and Holding designees to the Board of
Directors shall be required to approve any transaction which will result in a
Change of Control of Newco. For the

                                       10
<PAGE>   11
purposes of this section, a "Change of Control" of Newco shall be deemed to have
occurred if there shall be consummated (i) any consolidation or merger of the
Newco in which Newco is not the continuing or surviving corporation or pursuant
to which shares of Newco's Common Stock would be converted into cash, securities
or other property, other than a merger of Newco in which the holders of Newco's
Common Stock immediately prior to the merger have the same proportionate
ownership of common stock of the surviving corporation immediately after the
merger, or (ii) any sale, lease, exchange or other transfer (in one transaction
or a series of related transactions) of all, or substantially all, of the assets
of Newco, or (iii) the stockholders of Newco approve any plan or proposal for
the liquidation or dissolution of Newco, or (iv) any person (as such term is
used in Sections 13(d) and l3(d)(2) of the Securities Exchange Act of l934, as
amended (the "Exchange Act")), shall become the beneficial owner (within the
meaning of Rule l3d-3 under the Exchange Act) of 20% or more of Newco's
outstanding Common Stock, except in connection with a transaction approved by
the Board of Directors; or (v) during any period of two consecutive years,
individuals who at the beginning of such period constituted the entire Board of
Directors shall cease for any reason to constitute a majority thereof unless the
election, or the nomination for election by Newco's stockholders, of each new
director was approved by a vote of at least two-thirds of the directors then
still in office who were directors at the beginning of the period.

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

         7.2 Meetings of the Board of Directors

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

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

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

                                       11
<PAGE>   12
members agree to discuss at a Board of Directors meeting shall be considered to
be an agenda item at such meeting.

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

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

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

         7.3 Chief Executive Officer

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

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

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

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

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

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

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

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

                                       12
<PAGE>   13
         (b) The Newco CEO shall report to the Board of Directors.

         7.4 Accounting

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

         (b) Certified Public Accountants

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

         (c) Right of Inspection

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

         (d) Fiscal Year

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

                                       13
<PAGE>   14
                                  ARTICLE VIII
                             ADDITIONAL OBLIGATIONS

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

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

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

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

                                   ARTICLE IX
                                  OTHER RIGHTS

         9.1 Newco Name; Trademarks and Other Rights

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

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

                                    ARTICLE X
                         REPRESENTATIONS AND WARRANTIES

         10.1 Mutual Representations and Warranties

         (a) Representations and Warranties. Each Party represents and warrants
to each other Party that such Party has the full corporate right, power and
authority to enter into this

                                       14
<PAGE>   15
Agreement and to perform the acts required of it hereunder; and the execution of
this Agreement by such Party, and the performance by such Party of its
obligations and duties hereunder, do not and will not violate or contravene any
applicable law or regulation or any agreement to which such Party is a party or
by which it is otherwise bound, and when executed and delivered by such Party,
this Agreement will constitute the legal, valid and binding obligation of such
Party, enforceable against such Party in accordance with its terms.

         10.2 Representations and Warranties of Holding and Authentidate

         (a) Holding and Authentidate represent and warrant that:

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

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

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

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

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

         10.3 Representations and Warranties of IVC

         IVC hereby represents and warrants that:

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

                                       15
<PAGE>   16
         (b) IVC has conducted its own due diligence review of Holding,
Authentidate and Newco to the extent it deems necessary and has not relied on
the statements, advice or recommendations or any other person or entity in
connection with the transactions contemplated hereby.

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

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

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

         (f) It has been advised that the Newco Shares have not been registered
under the Securities Act, and that all the foregoing securities will be issued
on the basis of the statutory exemption provided by Section 4(2) of the
Securities Act and/or Regulation D promulgated thereunder relating to
transactions by an issuer not involving any public offering and under similar
exemptions under certain state securities laws; that this transaction has not
been reviewed by, passed on or submitted to any Federal or state agency or
self-regulatory organization where an exemption is being relied upon, and that
Newco's reliance thereon is based in part upon the representations made by IVC
in this Agreement. IVC acknowledges that it has been informed by Holding,
Authentidate and Newco, or is otherwise familiar with, the nature of the
limitations imposed by the Securities Act and the rules and regulations
thereunder on the transfer of securities. In particular, IVC agrees that no
sale, assignment or transfer of the Newco Shares shall be valid or effective,
and Newco shall not be required to give any effect to any such sale, assignment
or transfer, unless (i) the sale, assignment or transfer of the foregoing
securities are registered under the Securities Act, (ii) the foregoing
securities are sold, assigned or transferred in accordance with all the
requirements and limitations of Rule 144 under the Securities Act, it being
understood that Rule 144 is not available at the present time for the sale of
the foregoing securities, or (iii) such sale, assignment, or transfer is
otherwise exempt from registration under the Securities Act. IVC acknowledges
that the Newco Shares shall be subject to a stop transfer order and the
certificate or certificates evidencing any underlying shares shall bear the
legend set forth in Section 5.2.

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

         10.4 Limitation of Liability. EXCEPT AS PROVIDED IN THIS ARTICLE X, AND
EXCEPT FOR A LIABILITY ARISING AS A RESULT OF A CLAIM FOR BREACH OF, OR

                                       16
<PAGE>   17
A DEFAULT IN, THIS AGREEMENT OR THE LICENSE, UNDER NO CIRCUMSTANCES WILL ANY
PARTY BE LIABLE TO ANY OTHER PARTY FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL,
SPECIAL OR EXEMPLARY DAMAGES (EVEN IF THAT PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES), ARISING FROM ANY PROVISION OF THIS AGREEMENT OR
THE LICENSE, SUCH AS, BUT NOT LIMITED TO, LOSS OF REVENUE OR ANTICIPATED PROFITS
OR LOST BUSINESS.

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

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

                                   ARTICLE XI
                              TERM AND TERMINATION

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

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

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

         11.2 Termination

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

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

                                       17
<PAGE>   18
completed after the expiration of such 30 day period but within a reasonable
time, and is actually cured within a reasonable time); or

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

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

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

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

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

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

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

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

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

                                       18
<PAGE>   19
                                   ARTICLE XII
                                 CONFIDENTIALITY

         12.1 Confidentiality, Non-Disclosure

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

         (b) Confidential Information means any information of a Party disclosed
to the other party in the course of this Agreement, which is identified as, or
should be reasonably understood to be, confidential to the disclosing Party,
including, but not limited to, trade secrets and confidential information
disclosed to the Parties or known by them as a consequence of their transactions
with IVC, Holding, Authentidate and/or Newco, whether or not pursuant to this
Agreement, and not generally known in the industry, concerning the business,
finances, methods, operations, know-how, trade secrets, data, technical
processes and formulas, source code, product designs, sales, cost and other
unpublished financial information, product and Business Plans, projections,
marketing data, information, research and development, customers, pricing and
information relating to proposed expansion and this Agreement and all exhibits
hereto. Confidential Information will not include information which: (a) is
known or becomes known to the recipient directly or indirectly from a
third-party source who obtained the information lawfully other than one having
an obligation of confidentiality to the providing party; (b) is or becomes
publicly available or otherwise ceases to be secret or confidential, except
through a breach of this Agreement by the recipient; or (c) is or was
independently developed by the recipient without use of or reference to the
providing party's Confidential Information, as shown by evidence in the
recipient's possession.

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

                                       19
<PAGE>   20
party with prompt notice of such requirement. Such Party also agrees, to the
extent legally permissible, to provide the disclosing party, in advance of any
such disclosure, with copies of any information or documents such party intends
to disclose (and, if applicable, the text of the disclosure language itself) and
to cooperate with the disclosing party to the extent the disclosing Party may
seek to limit such disclosure.

         12.2 General

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

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

                                  ARTICLE XIII
                              RESTRICTIVE COVENANT

         13.1 Restrictive Covenant

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

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

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

         13.2 General

         (a) The Parties acknowledge and agree that the covenants contained in
this Article XIII are fair and reasonable and of a special unique character
which gives them peculiar value

                                       20
<PAGE>   21
and exist in order to protect the Parties and that the Parties would not have
entered into this Agreement without such covenants being made to it.

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

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

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

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

                                   ARTICLE XIV
                                 INDEMNIFICATION

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

                                   ARTICLE XV
                                     GENERAL

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

                                       21
<PAGE>   22
which case the disclosing Party will use its reasonable best efforts to advise
the other Party prior to making the disclosure).

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

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

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

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

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

    If to Holding:                              Copy to:

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

    If to Authentidate:                         Copy to:

                                       22
<PAGE>   23
    Robert Van Naarden                          Victor J. DiGioia, Esq.
    Authentidate, Inc.                          Goldstein & DiGioia, LLP
    2 World Financial Center, 43rd Floor        369 Lexington Avenue, 18th Floor
    New York, New York 10281                    New York, New York 10017

    If to IVC:

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

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

         (g) Governing Law. This Agreement has been executed in the State of New
York, and except as otherwise provided herein, its validity, interpretation,
performance, and enforcement will be governed by the laws and courts of such
state, without application of the conflict of law principles thereof.

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

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

                                       23
<PAGE>   24
         (i) Amendments. This Agreement may be amended by the parties hereto at
any time; provided, however, that any amendment must be by an instrument or
instruments in writing signed and delivered on behalf of each of the parties
hereto.

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

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

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

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

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

                                             AUTHENTIDATE HOLDING CORP.

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

                                             AUTHENTIDATE, INC.

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

                                       24
<PAGE>   25
                                             INTERNET VENTURE CAPITAL, LLC

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

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

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

                                       25

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