Document:

Prepared and filed by St Ives Burrups

Exhibit 10.32

   EMPLOYMENT AGREEMENT

AGREEMENT
    made as of the 1st day of July, 2003 by and between John T. Botti, residing
    at ________________ (hereinafter referred to
    as the “Employee”) and AuthentiDate Holding Corp., a Delaware corporation
    with principal offices located at 2165 Technology Drive, Schenectady, New
  York 12308.

W I T N E S S E T H:

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

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

WHEREAS, the
    Employee desires to continue his present employment with the Company pursuant
    to the terms and conditions herein set forth, superseding all prior oral
    and written employment agreements and term sheets and letters between the
  Company, its subsidiaries and/or predecessors and Employee;

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

ARTICLE
      I  

 DEFINITIONS

1.1      Accrued
          Compensation. Accrued
          Compensation shall mean an amount which shall include
          all amounts earned or accrued through the “Termination Date” (as defined
      below) but not paid as of the Termination Date, including (i) Base Salary, (ii) reimbursement for business expenses incurred by the Employee on behalf of the Company, pursuant to the Company’s expense reimbursement policy in effect at such time, (iii) car allowance, (iv) discretionary time and vacation pay, and (v) bonuses and incentive compensation earned and awarded prior to the Termination Date.

1.2      Base Salary. “Base Salary” shall
      mean the greater of the Employee’s annual base compensation (a) at the
      rate in effect on the Termination Date or (b) at the highest rate in effect
      at any time during the ninety (90) day period prior to the Termination
      Date or a Change in Control, and shall include all amounts of his base
      compensation that are reported as income; provided however, Base Salary
      shall not include the Bonus or any other payment contingent on performance.
      Base Salary shall be paid to the Employee in regular installments on each
      of the Company’s regular pay dates for executives. 

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

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

1.5     Disability. Disability shall mean a physical or mental infirmity which impairs the Employee’s ability to substantially perform his duties with the Company for a period of ninety (90) consecutive days, and the Employee has not returned to his full time employment prior to the Termination Date as stated in the “Notice of Termination” (as defined below).

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  1.6      Good
          Reason.
          Good Reason shall mean (i) a change in the Employee’s status, title,
          position or responsibilities (including reporting responsibilities)
          which, in the Employee’s reasonable judgment, represents an adverse
          change from his status, title, position or responsibilities; the assignment
    to the Employee of any duties or responsibilities which, in the Employee’s reasonable judgment, are inconsistent with his status, title, position or
  responsibilities; or any removal of the Employee from or failure to reappoint
  or reelect him
    to any of such offices or positions, except in connection with the termination
    of his employment for Disability, Cause or as a result of his death or by
  the Employee for other than for Good Reason; (ii) a reduction in the Employee’s
    base salary or benefits, or any failure to pay the Employee any compensation
    or benefits to which Employee is entitled within five (5) days of the date
    due; and (iii) a Change of Control, as described in Article XI.

  1.7      Notice
      of Termination.
      Notice of Termination shall mean a written notice from the Company, or the
      Employee, of termination of the Employee’s employment which indicates the
      specific termination provision in this Agreement relied upon, if any, and
      which sets forth in reasonable detail the facts and circumstances claimed
      to provide a basis for termination of the Employee’s employment under the
      provision so indicated; provided that termination for Good Reason based on
      a Change of Control shall be served in accordance Article XI. A Notice of
      Termination served by the Company shall specify the effective date of termination. 

1.8      Severance Payment.
      Severance Payment shall mean an amount equal to 24 months of Base Salary
      (“Severance Payments”) payable in equal installments on each of the Company’s
      regular pay dates for executives during such 24 month period commencing
      on the first regular executive pay date following the Termination Date.
      For purposes of computing the Severance Payment, Base Salary shall include
      any automatic increases to Base Salary to which the Employee would have
      been entitled had this Agreement not been terminated.

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  1.9      Termination
  Date. Termination
Date shall mean (i) in the case of the Employee’s death,
      his date of death; (ii) in the case of Good Reason, ten (10) days from
the date the Notice of Termination
      is given to the Company, except for a Change in Control, as described in
Section 11.2 which shall be governed by Article XII; (iii) in the case of termination of employment after the Expiration Date, the last day of employment; and (iv) in all other cases, the date specified in the Notice of Termination; provided, however, if the Employee’s employment is terminated by the Company for any reason except Cause, the date specified in the Notice of Termination shall be at least 30 days from the date the Notice of Termination is given to the Employee, and provided further that in the case of Disability, the Employee shall not have returned to the full-time performance of his duties during such period of at least 30 days. 

ARTICLE II 

EMPLOYMENT

2.1      Subject to and upon the terms and conditions
of this Agreement, the Company hereby employs and agrees to continue the employment
of the Employee, and the Employee hereby accepts such continued employment in
his capacity as Chairman of the Board, President and Chief Executive Officer. 

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ARTICLE
      III

 DUTIES

  3.1   The
      Employee shall, during the term of his employment with the Company, and
      subject to the direction and control of the Company’s Board of Directors,
      perform such duties and functions as he may be called upon to perform by
      the Company’s Board of Directors during the term of this Agreement,
      consistent with his position as Chairman of the Board, President and Chief
      Executive Officer. 

   3.2   The
      Employee agrees to devote full business time and his best efforts in the performance
      of his duties for the Company and any subsidiary corporation of the Company. 

  3.3   Employee
      shall undertake regular travel to the Company’s
      executive and operational offices, and such other occasional travel within
      or outside the United States as is or may be reasonably necessary in the
      interests of the Company. All such travel shall be at the sole cost and
      expense of the Company. All lodging and food costs incurred by Employee
      while traveling and/or conducting business at the Company’s
      operational offices shall be paid by the Company. 

 ARTICLE
      IV

 COMPENSATION

   4.1   During
      the term of this Agreement, Employee shall be compensated initially at
      the rate of $332,750 per annum, subject to such increases to be determined
      by the Board of Directors, or if the Board so designates, the Compensation
      Committee, in its discretion, at the commencement of each of the Company’s
      fiscal years during the term of this Agreement (the “Base Salary”).
      On each of the first two anniversary dates of this Agreement, the Base
      Salary shall be automatically increased by an amount equal to l0% of the
      Base Salary for the previous l2 month period. 

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  4.2   Employee
      shall be eligible to receive a bonus (the “Bonus”) in the discretion of
      the Board of Directors, or if the Board so designates, the Compensation
      Committee of the Board of Directors based on the annual performance of
      the Company. Employee will have an opportunity to earn a Bonus of up to
      50% of Employee’s
      Base Salary for each fiscal year of employment. The Bonus will be based
      on Employee’s achievement of revenue and income targets and other
      key objectives established by the Board of Directors or if the Board so
      designates, the Compensation Committee
      of the Board of Directors, at the commencement of each fiscal year.

  4.3   The
      Company shall deduct from Employee’s
        compensation all federal, state, and local taxes
        which it may now or may hereafter be required to deduct.

  4.4   Employee
      may receive such other additional compensation as may be determined from
      time to time by the Board of Directors including bonuses and other long
      term compensation plans. Nothing in thus subparagraph 4.4 shall be deemed
      or construed to require the Board to award any bonus or additional compensation. 

 ARTICLE
      V

 BENEFITS

   5.1   During
      the term hereof, the Company shall provide Employee with the following
      benefits (the “Benefits”): (i) group health care and insurance
      benefits as generally made available to the Company’s senior management;
      and (ii) such other insurance benefits obtained by the Company and made
      generally available to the Company’s senior management. 

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  5.2   The
      Company shall provide an automobile for the use of the Employee not to
      exceed a lease payment of $1,000 per month plus pay Employee such amount
      of cash as is necessary to enable the Employee to pay all income taxes
      associated with such automobile allowance. The Company shall reimburse
      Employee, upon presentation of appropriate vouchers, for all reasonable
      business expenses incurred by Employee on behalf of the Company upon presentation
      of suitable documentation. 

  5.3   In
      the event the Company wishes to obtain Key Man life insurance on the life
      of Employee, Employee agrees to cooperate with the Company in completing
      any applications 7 necessary to obtain such insurance and promptly submit
      to such physical examinations and furnish such information as any proposed
      insurance carrier may request.

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

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 ARTICLE
      VI

 NON-DISCLOSURE

  6.1   The
      Employee shall not, at any time during or after the termination of his
      employment hereunder, except when acting on behalf of and with the authorization
      of the Company, make use of or disclose to any person, corporation, or
      other entity, for any purpose whatsoever, any trade secret or other confidential
      information concerning the Company’s
      business, finances, marketing, computerized payroll, accounting and information
      business, personnel and/or employee leasing business of the Company and
      its subsidiaries, including information relating to any customer of the
      Company or pool of temporary employees, or any other nonpublic business
      information of the Company and/or its subsidiaries learned as a consequence
      of Employee’s
      employment with the Company (collectively referred to as the “Proprietary
      Information”).
      For the purposes of this Agreement, trade secrets and confidential information
      shall mean information disclosed to the Employee or known by him as a consequence
      of his employment by the Company, whether or not pursuant to this Agreement,
      and not generally known in the industry. The Employee acknowledges that
      trade secrets and other items of confidential information, as they may
      exist from time to time, are valuable and unique assets of the Company,
      and that disclosure of any such information would cause substantial injury
      to the Company. Trade secrets and confidential information shall cease
      to be trade secrets or confidential information, as applicable, at such
      time as such information becomes public other than through disclosure,
      directly or indirectly, by Employee in violation of this Agreement.

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

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 ARTICLE
      VII

 RESTRICTIVE
      COVENANT

  7.1   In
      the event of the voluntary termination of employment with the Company prior
      to the expiration of the term hereof, or Employee’s
      discharge in accordance with Article IX, or the expiration of the term
      hereof without renewal, Employee agrees that he will not, for a period
      of one (1) year following such termination, directly or indirectly, enter
      into or become associated with or engage in any other business (whether
      as a partner, officer, director, shareholder, employee, consultant, or
      otherwise), which business is primarily involved in the manufacture, development
      and/or distribution of computers and/or document imaging systems, or digital
      image authentication or is otherwise engaged in the same or similar business
      as the Company in direct competition with the Company, or which the Company
      was in the process of developing, during the tenure of Employee’s
      employment by the Company. Notwithstanding the foregoing, the ownership
      by Employee of less than five percent of the shares of any publicly held
      corporation shall not violate the provisions of this Article VII. 

  7.2   In
      furtherance of the foregoing, Employee shall not during the aforesaid period
      of non-competition, directly or indirectly, in connection with any business
      primarily involved in the manufacture, development and/or distribution
      of computers and/or document imaging systems, or digital image authentication
      services, or any business similar to the business in which the Company
      was engaged, or in the process of developing during Employee’s
      tenure with the Company, solicit any customer or employee of the Company
      who was a customer or employee of the Company during the tenure of his
      employment.

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

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

 ARTICLE
  VIII  

 TERM

 8.1   This
  Agreement shall be for a term (the “Initial
  Term”)
  commencing on July 1, 2003 (the “Commencement Date”) and terminating on June
  30, 2006 (the “Expiration
  Date”),
  unless sooner terminated upon the death of the Employee, or as otherwise provided
  herein. 

 8.2   Unless
  this Agreement is earlier terminated pursuant to the terms hereof, the Company
  agrees to use its best efforts to notify Employee in writing whether it intends
  to negotiate a renewal of this Agreement six (6) months prior to the Expiration
  Date.

 8.3   Upon
  termination of the Employee’s employment on or after the Expiration Date
  for any reason except Cause, the Company shall pay Employee, in addition to
  any other payments due hereunder, the Severance Payment.

 ARTICLE
  IX  

 TERMINATION

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

	  	 	a.	For Disability;
	 	 	 	 
	 	 	b. 	For Cause.
	 	 	 	 
	 	 	c.	Without
      Cause.  

 
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   9.2   Employee
    may terminate this Agreement by giving a Notice of Termination to the
    Company in
    accordance with this Agreement, at any time, with or without Good Reason.
    

   9.3   If
    the Employee’s employment with the Company shall be terminated, the Company
    shall pay and/or provide to the Employee the following compensation and benefits
    in lieu of any other compensation or benefits arising under this Agreement
    or otherwise: 

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

      Compensation, the
      Severance Payment and the Continuation Benefits; or
	 	 	 	 
	 	 	c.	 if termination
      was due to the Employee’s death, the Accrued Compensation; 
	 	 	 	 
	 	 	 	or
	 	 	 	 
	 	 	d.	if the
      Employee was terminated by the Company prior to the Expiration Date without
      cause, (i) the Accrued Compensation; (ii) the greater of (A) the Base Salary
      to the Expiration Date, or (B) the Severance Payment; and (iii) the Continuation
      Benefits.
	 	 	 	 
	 	9.4	The
      amounts payable under this Section 9, shall be paid as follows:
	 	 	 	 
	 	 	a. 	   Accrued
      Compensation shall be paid within five (5) business days after the Employee’s Termination Date (or earlier, if required by applicable law).  
	 	 	 	 
	 	 	b.	If the
      Continuation Benefits are paid in cash, the payments shall be made on the
      first day of each month during the Continuation Period (or earlier, if required
      by applicable law). 
	 	 	 	 
	 	 	c.	 The
        Severance Payments shall be paid in accordance with the Company’s
      regular pay periods (or earlier, if required by applicable law).  
	 	 	 	 

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

 9.6   Employee
  agrees that as long as Employee is entitled to receive any payments under this
  Agreement, Employee will not make any negative or derogatory statements in verbal,
  written, electronic or any other form about the Company, including, but not
  limited to, a negative or derogatory statement made in, or in connection with,
  any article or book, on a website, in a chat room or via the internet.

 ARTICLE
  X  

 TERMINATION
  OF PRIOR AGREEMENTS

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

 
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ARTICLE XI 

 STOCK
  OPTIONS

 11.1   As
  an inducement to Employee to enter into this Agreement the Company hereby grants
  as of September 5, 2003, to Employee options to purchase shares of the Company’s
  Common Stock, $.001 par value, as follows: 

Subject to
  the terms and conditions of the Company’s
  2000 Employees’ Stock Option Plan (the “Plan”),
  and the terms and conditions set forth in the Stock Option Certificate which
  are incorporated herein by reference, the Employee is hereby granted options
  to purchase 450,000 shares of the Company’s
  Common Stock, of which options to purchase 150,000 shares shall vest on September
  5, 2003; 100,000 shall vest on September 5, 2004; 100,000 shall vest on September
  5, 2005; and 100,000 shall vest on September 5, 2006 (the “Options”).
  The exercise price of the Options shall be $3.15 per share and shall contain
  such other terms and conditions as set forth in the stock option agreement.
  The foregoing Options shall be qualified as incentive stock options to the maximum
  as allowed by law. The Options provided for herein are not transferable by Employee
  and shall be exercised only by Employee, or by his legal representative or executor,
  as provided in the Plan. Such Options shall terminate as provided in the Plan,
  except as otherwise modified by this Agreement. 

   11.2   In
    the event the Employee’s employment is terminated for any reason other
    than death, Disability, Cause or Employee’s voluntary resignation without
    Good Reason, the conditions to the vesting of any outstanding incentive awards
    (including restricted stock, stock options and granted performance shares
    or units) granted to the Employee under any of the Company’s plans, or
    under any other incentive plan or arrangement, shall be deemed void and all
    such incentive awards shall be immediately and fully vested and the terms
    of the awards shall be deemed amended to provide that the awards shall remain
    exercisable for the duration of their original term. 

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ARTICLE XII 

  EXTRAORDINARY
      TRANSACTIONS

12.1   The Company’s Board
of Directors has determined that it is appropriate to reinforce and encourage
the continued attention and dedication of members of the Company’s management,
including the Employee, to their assigned duties without distraction in potentially
disturbing circumstances arising from the possibility of a change in control
of the Company.

12.2   Changes in
Control. For
purposes of this Agreement, a “Change in Control” shall mean
any of the following events:

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

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	 	 	 	(ii)
        Notwithstanding the foregoing, a Change in Control shall not be deemed
        to occur solely because a Person (the “Subject Person”) gained Beneficial
        Ownership of more than the permitted amount of the outstanding Voting
        Securities as a result of the acquisition of Voting Securities by the
        Company which, by reducing the number of Voting Securities outstanding,
        increases the proportional number of shares Beneficially Owned by the
        Subject Person, provided that if a Change in Control would occur (but
        for the operation of this sentence) as a result of the acquisition of
        Voting Securities by the Company, and after such share acquisition by
        the Company, the Subject Person becomes the Beneficial Owner of any additional
        Voting Securities which increases the percentage of the then outstanding
        Voting Securities Beneficially Owned by the Subject Person, then a Change
    in Control shall occur. 
	 	  	 	 
	 	 	(b)	The
        individuals who, as of the date this Agreement is approved by the Board,
        are members
        of the Board (the “Incumbent Board”), cease for any reason to constitute
        at least two-thirds of the Board; provided, however, that if the election,
        or nomination for election by the Company’s stockholders, of any new
        director was approved by a vote of at least two-thirds of the Incumbent
        Board, such new director shall, for purposes of this Agreement, be considered
        and defined as a member of the Incumbent Board; and provided, further,
        that no individual shall be considered a member of the Incumbent Board
        if such individual initially assumed office as a result of either an
        actual or threatened “Election Contest" (as described in Rule 14a-11
    promulgated under the 1934  Act)
    or other actual or threatened solicitation of proxies or consents by or on
    behalf of a Person other than the Board (a “Proxy Contest”), including by
    reason of any agreement intended to avoid or settle any Election Contest
    or Proxy Contest; or 
	 	 	 	 

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

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	 	 	 	(ii)	An agreement
        for the sale or other disposition of all or substantially all of the
        assets of the Company, to any Person, other than a transfer to a Subsidiary,
        in one transaction or a series of related transactions; or
	  	 	 	 	 
	 	 	 	(iii) 	The stockholders
        of the Company approve any plan or proposal for the liquidation or dissolution
        of the Company.   
	 	 	 	 	 

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

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12.3   In the event that
    within ninety (90) days of a Change of Control as described in Section
    12.2, (i) Employee is terminated, or (ii) Employee=s
    status, title, position or responsibilities are materially reduced
and Employee terminates his Employment for Good Reason, the Company shall
pay and/or provide
to the Employee, the following compensation and benefits:

	 	 	a. 	The Company shall
        pay the Employee, in lieu of any other payments due hereunder, (i) the
        Accrued Compensation; (ii) the Continuation Benefits; (iii) and (iii)
        as additional severance, in a single payment, an amount in cash equal
        to three times the amount of the five year average of the gross income
        of the Employee, as reported by the Company for federal income tax purposes;
    and
	  	 	 	 
	 	 	b.	The conditions
        to the vesting of any outstanding Options or other incentive awards (including
        restricted stock, stock options and granted performance shares or units
        (collectively, the “Awards”)) granted to the Employee under
        any of the Company=s
        benefit plans, or under any other incentive plan or arrangement, shall
        be deemed void and all such Awards shall be immediately and fully vested
        and exercisable. Further, the Options shall be deemed amended to provide
        that in the event of termination after an event enumerated in this Article
        XII, the options shall remain exercisable for the duration of their original
    term.

20

 12.4   (a)   Notwithstanding
    the foregoing, if the payment under this Article XII, either alone or together
    with other payments which the Employee has the right to
    receive from the Company, would constitute an “excess parachute payment" as
    defined in Section 280G of the Internal Revenue Code of 1986, as amended
    (the  “Code”),
    subject to the excise tax imposed by Section 4999 of the Code (the “Excise
    Tax”), and if the event which constitutes the Change of Control is a
    sale or merger of the Company for a valuation of at least $100,000,000, in
    addition to the payments due to Employee
    as set forth in Section 12.2 of this Agreement, the Company shall also pay
    to the Employee within five (5) business days of making any payment subject
    to the Excise Tax, a gross up payment (the “Gross Up Payment”)
    equal to the amount which, after the deduction of any applicable Federal,
    State and Local income taxes attributable to the Gross Up Payment, is equal
    to the Excise Tax including the Excise Tax attributable to the Gross Up Payment.

         
 (b)   The Company shall pay to the applicable government taxing authorities, as Excise Tax withholding, the amount of the Excise Tax that the Company has actually withheld from the Payment or Payments. 

          (c)   The Company shall give notice to the Employee as soon as practicable after its determination that Change of Control payments and benefits are subject to the Excise Tax, but no later than ten (10) days in advance of the due date of such Change of Control payments and benefits, specifying the proposed date of payment and the Change of Control benefits and payments subject to the Excise Tax.

21

         (d)   If it is established pursuant to a determination of a court, or an Internal Revenue Service (the “IRS”) decision, action or proceeding, that there has been an underpayment of the Excise Tax (an “Underpayment”), the Company shall pay to the Employee within thirty (30) days of such determination or resolution, the amount which, after the deduction of any applicable federal, state and local income taxes, including the Excise Tax, is equal to the Underpayment, plus applicable interest and penalties until the date of payment.

         
(e)   The
Company hereby agrees to indemnify, defend, and hold harmless the Employee for
any and all claims arising from or related to non-payment of Excise Tax, including
the amount of such
tax and any and all costs, interest, expenses, penalties associated with the
non-payment of such
tax to the fullest extent
permitted by law. 

ARTICLE
      XIII  

 ARBITRATION
      AND INDEMNIFICATION

 13.1   
    Any dispute arising out of the interpretation, application, and/or performance
    of this Agreement with the sole exception of any claim, breach, or violation
    arising under Articles VI or VII hereof shall be settled through final and
    binding arbitration before a single arbitrator in the State of New York in
    accordance with the Rules of the American Arbitration Association. The arbitrator
    shall be selected by the Association and shall be an attorney-at-law experienced
    in the field of corporate law. Any judgment upon any arbitration award may
    be entered in any court, federal or state, having competent jurisdiction
    of the parties. 

 

 22

 13.2   The Company hereby agrees to indemnify, defend, and hold harmless the Employee for any and all claims arising from or related to his employment by the Company at any time asserted, at any place asserted, to the fullest extent permitted by law. The Company shall maintain such insurance as is necessary and reasonable to protect the Employee from any and all claims arising from or in connection with his employment by the Company during the term of Employee’s employment with the Company and for a period of six (6) years after the date of termination of employment for any reason. The provisions of this Section 13.2 are in addition to and not in lieu of any indemnification, defense or other benefit to which Employee may be entitled by statute, regulation, common law or otherwise. 

ARTICLE
XIV 

 SEVERABILITY

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

23

ARTICLE XV 

NOTICE

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

  
The current addresses of the parties are as follows: 

	  	IF
    TO THE COMPANY:	 	AuthentiDate
    Holding Corp. 

    2165
    Technology Drive 

    Schenectady, NY 12308 	 
	 	 	 	 	 
	 	IF TO THE EMPLOYEE:	 	John
          T. Botti

    	 
	 	 	 	 	 

 24

ARTICLE XVI 

BENEFIT

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

ARTICLE XVII 

WAIVER 

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

ARTICLE XVIII 

GOVERNING LAW 

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

ARTICLE XIX 

JURISDICTION 

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

 

25

ARTICLE
      XX 

 ENTIRE
      AGREEMENT

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

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

	 	AuthentiDate
    Holding Corp.
	 	 
	 	By:	/s/ J.
    Edward Sheridan
	 	  	

	 	 	J. Edward
        Sheridan 

Chairman of the Compensation Committee 
	 	 	 
	 	 	 
	 	Employee 
	 	 	 
	 	 	/s/ John
    T. Botti 
	 	 	

	 	 	John
        T. Botti 

EmployeePrepared and filed by St Ives Burrups

Exhibit 10.33

November 4, 2003 

Peter Smith

Dear Peter, 

We are pleased to offer you the position, contingent upon positive background and reference checks, of Chief Operating Officer of the Authentidate Group. You will report directly to me. All Authentidate, Inc., Authentidate AG and Trac Medical personnel will report to you.

Base Salary:   Salary
to be paid at an annualized rate of $250,000 on a bi-weekly basis in accordance
with regular company payroll cycle. 

Stock Options:   You
will be eligible for 300,000 employee stock options, contingent upon Board approval,
issued on your date of employment at the closing bid. 75,000 will vest on date
of issuance and 225,000 will vest after 4 years. These options may vest sooner
based on achievement of mutually agreeable milestones agreed to by the Compensation
Committees, management and yourself. 

Bonus Plan:   You
have a quarterly bonus potential of $12,500 per quarter. Plus you have an additional
annual bonus potential of $25,000 per year (the total bonus potential is $75,000
per annum). For the first 3 months of your employment we will guarantee a bonus
payment of $12,500 payable according to the Company’s regular payroll cycle.
Prior to the end of the first 3 months we will decide on mutually agreeable milestones
which will need to be achieved in order to earn the $12,500 quarterly bonus after
the first 3 months and the annual bonus potential of $25,000. Such milestones
will be decided by the Compensation Committee, management and yourself. 

Severance:   If you’re
terminated by the Company for any reason other than “for cause” you will receive
six months of regular salary over a six month period, unless termination is “for
cause” then severance will not be paid. See below for a definition of “for cause". 

Benefits:   Benefits
are consistent with those defined in the Company’s Employee Handbook. 

Relocation fee:   Mutually
reasonable and acceptable at a capped amount. 

Company Provided
Housing:   For the first 6 months of your employment the Company will provide housing
for you in the NYC area on mutually acceptable terms. 

Company Provided Travel to the West Coast:   The Company will reimburse you for airfare to the west coast to visit your family twice a month for the first 6 months of your employment. 

Peter Smith

November 4, 2003

Page 2

We look forward to working with you and believe your skills and history of success will help us to achieve our Company goals. As you know we are a public company and therefore request that you read the Employee Manual, specifically as it relates to confidentiality and public company issues and agree to such requirements. I understand Lisa has already sent you the manual. Please return a signed photocopy of this letter should you accept.

Sincerely, 

John Botti,

Chairman and Chief Executive Officer 

This letter in not to be construed as an employment agreement/contract. 

Definitions:

“For Cause” shall
mean: (i) willful disobedience by the Employee of a material and lawful instruction
of the Board of Directors or senior officer of the Company; (ii) formal charge,
indictment or conviction of the Employee of any misdemeanor involving fraud or
embezzlement or similar crime, or any felony; (iii) breach by the Employee of
any material provision of the Company’s Employee Manual and/or Code of Ethics
and Business Conduct; (iv) conduct amounting to fraud, dishonesty, gross negligence,
willful misconduct or recurring insubordination; (v) excessive absences from
work, other than for illness or disability; or (vi) unsatisfactory performance
of duties.

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