Document:

Alternative Form of Executive Restricted Stock Award Agreement

    EXHIBIT
      10.3

    
 

    RESTRICTED
      STOCK AWARD AGREEMENT UNDER THE

    MPOWER
      HOLDING CORPORATION 2005 LONG-TERM INCENTIVE PLAN

    

    THIS
      AWARD AGREEMENT (the “Award
      Agreement”),
      is
      made effective as of [date] (the “Date
      of Grant”)
      between Mpower Holding Corporation, a Delaware corporation (the “Company”),
      and
      [Name] (the “Participant”).
      Capitalized terms not otherwise defined herein shall have the same meanings
      as
      in the Mpower Holding Corporation 2005 Long-Term Incentive Plan (the
“Plan”).

     

    WHEREAS,
      the Company desires to grant the Restricted Stock provided for herein to the
      Participant pursuant to the Plan and the terms and conditions set forth
      herein;

    

    NOW
      THEREFORE, in consideration of the mutual covenants hereinafter set forth,
      the
      parties agree as follows:

    

    1.  Grant
      of
      the
      Award. 
      Subject to the provisions of this Award Agreement and the Plan, the Company
      hereby grants to the Participant, an aggregate of [#
      of
      Shares Granted]
      shares
      of restricted stock (the “Restricted
      Stock”),
      subject to adjustment as set forth in the Plan.

    

    2.  Incorporation
      of Plan. 
      The
      Participant acknowledges receipt of the Plan, a copy of which is attached hereto
      and represents that he is familiar with its terms and provisions. This Award
      Agreement and the Restricted Stock shall be subject to the Plan, the terms
      of
      which are incorporated herein by reference, and in the event of any conflict
      or
      inconsistency between the Plan and this Award Agreement, the Plan shall
      govern.

    

    3.  Vesting
      Schedule. 
      Unless
      previously vested or cancelled in accordance with the provisions of the Plan
      or
      this Award Agreement, 25% of the Restricted Stock shall vest and all
      restrictions shall lapse on each of the first, second, third and fourth
      anniversaries of the Date of Grant. 

    

    4.  Termination
      of Employment. 
      Except as otherwise provided for in Section 5 of this Award Agreement,
in
      the
      event of the Participant’s termination of employment with the Company for any
      reason, all unvested Restricted Stock will be canceled and forfeited without
      consideration as of the date of such termination.

     

    5.  Change
      in Control and Other Acceleration. 
      In the event you are terminated without cause or resign with good reason at
      any
      time after a Change of Control, all unvested shares of Restricted Stock shall
      immediately and fully vest and all restrictions shall lapse. For purposes of
      this Agreement, “Change of Control” shall have the same meaning as in the Plan.
      Termination without cause and resignation for good reason are defined in Section
      14. Further, the Company in its absolute discretion at any time may accelerate
      the vesting of any portion of the shares of Restricted Stock awarded pursuant
      to
      this Award Agreement. 

     

    6.      
Transfer
      of Shares. 
As soon as practicable after the Award Date, the Company will record the
      Restricted Stock in book form with the Company’s stock transfer agent subject to
      the terms and conditions set forth in the Plan and this Award Agreement. As
      soon
      as practicable after the shares of Restricted Stock shall have vested in the
      manner set forth in Paragraphs 3 or 5, the Company will have the shares listed
      in street name with a brokerage company of the Company’s choice, free of any
      restrictions imposed pursuant to this Agreement. In no event shall the shares
      be
      so listed unless and until the shares have vested and all other terms and
      conditions in this Agreement have been satisfied. By accepting the Restricted
      Stock, the Employee irrevocably nominates and appoints the Secretary of the
      Company as agent (the “Agent”)
      for
      purposes of surrendering or transferring the Restricted Stock to the Company
      upon any forfeiture or transfer required or authorized by this Agreement. This
      power is intended as a power coupled with an interest and will survive the
      Employee’s death. In addition, it is intended as a durable power and will
      survive the Employee’s disability.

     

    7.      
Nontransferability
      of
      Restricted Stock.  Unless the Company determines otherwise on or after
      the Date of Grant, Restricted Stock shall not be transferable other than by
      last
      will and testament or by the laws of descent and distribution or pursuant to
      a
      domestic relations order, as the case may be; provided,
      however,
      that
      the Company may, in its discretion and subject to such terms and conditions
      as
      it shall specify, permit the transfer of Restricted Stock for no consideration
      (i) to the Participant’s family member, (ii) to one or more trusts established
      in whole or in part for the benefit of one or more of such family members,
      (iii)
      to one or more entities which are beneficially owned in whole or in part by
      one
      or more such family members or (iv) to any other individual or entity permitted
      under law and the rules of the American Stock Exchange or any other exchange
      that lists the Common Stock (collectively, “Permitted
      Transferees”).
      Any
      Restricted Stock transferred to a Permitted Transferee shall be further
      transferable only by last will and testament or the laws of descent and
      distribution or, for no consideration, to another Permitted Transferee of the
      Participant.

     

     

     

    8.      
Rights
      as a
      Stockholder.  The Participant shall have, with respect to the
      Restricted Stock, all the rights of a stockholder of the Company, including,
      if
      applicable, the right to vote the Restricted Stock and to receive any cash
      dividends, subject to the restrictions set forth in the Plan and this Award
      Agreement.

     

    9.      
Dividends
      and
      Distributions.  Any Common Stock or other securities of the Company
      received by the Participant as a result of a distribution to holders of
      Restricted Stock or as a dividend on the Restricted Stock shall be subject
      to
      the same restrictions as such Restricted Stock, and all references to Restricted
      Stock hereunder shall be deemed to include such Common Stock or other
      securities.

     

    10.     
Legend
      on Certificates. 
The Company may cause a legend or legends to be put on certificates representing
      the Common Stock covered by the award of Restricted Stock to make appropriate
      reference to such restrictions as the Company may deem advisable under the
      Plan
      or as may be required by the rules, regulations, and other requirements of
      the
      Securities and Exchange Commission, any exchange that lists such Common Stock,
      and any applicable federal or state laws.

     

    11.     
No
      Entitlements.

    

    (a) No
      Right to Continued Employment. 
      This
      award is not an employment agreement, and nothing in this Award Agreement or
      the
      Plan shall (i) alter the Participant’s status as an “at-will” employee of the
      Company, (ii) be construed as guaranteeing the Participant’s employment by the
      Company or as giving the Participant any right to continue in the employ of
      the
      Company during any period (including without limitation the period between
      the
      Date Of Grant and the applicable vesting date in accordance with Section 3)
      or
      (iii) be construed as giving the Participant any right to be reemployed by
      the
      Company following any termination of Employment.

     

    (b)
No
      Right to Future Awards.  This award
      of Restricted Stock and all other equity-based awards, are discretionary. This
      award does not confer on the Participant any right or entitlement to receive
      another award of Restricted Stock or any other equity-based award at any time
      in
      the future or in respect of any future period.

     

    (c)
No
      Effect on Future Employment
      Compensation.  The Company has made this award of Restricted Stock to
      the Participant in its sole discretion. This award does not confer on the
      Participant any right or entitlement to receive compensation in any specific
      amount for any future fiscal year, and does not diminish in any way the
      Company’s discretion to determine the amount, if any, of the Participant’s
      compensation. In addition, this award of Restricted Stock is not part of the
      Participant’s base salary or wages and will not be taken into account in
      determining any other employment-related rights the Participant may have, such
      as rights to pension or severance pay.

     

    12.     
Taxes
      and
      Withholding.  No later than the date as of which an amount first
      becomes includable in the gross income of the Participant for applicable income
      tax purposes with respect to the Restricted Stock, the Participant shall pay
      to
      the Company or make arrangements satisfactory to the Company regarding payment
      of any federal, state, local or foreign taxes of any kind required by law to
      be
      withheld with respect to such amount. Unless otherwise determined by the
      Company, in accordance with rules and procedures established by the Company,
      the
      minimum required withholding obligations may be settled in Common Stock,
      including Common Stock that is part of the award that gives rise to the
      withholding requirement. The obligation of the Company under this Award
      Agreement shall be conditional upon such payment or arrangements and the Company
      shall, to the extent permitted by law, have the right to deduct any such taxes
      from any payment of any kind otherwise due to the Participant (including with
      respect to the Restricted Stock).

     

    13.     
Securities
      Laws.  In connection with the grant or vesting of the Restricted Stock
      the Participant will make or enter into such written representations, warranties
      and agreements as the Company may reasonably request in order to comply with
      applicable securities laws or with this Award Agreement.

     

    14.     
      Definitions.

     

    (a) “Cause”
      shall mean the occurrence of any of the following events: (i) Participant’s
      willful material violation of any law or regulation applicable to the business
      of the Company; (ii) Participant’s conviction of, or plea of “no contest” to, a
      felony; (iii) any willful perpetration by Participant of an act of moral
      turpitude or common law fraud whether or not related to Participant’s activities
      on behalf of the Company; (iv) any act of gross negligence by Participant in
      the
      performance of Participant’s duties as an employee; (v) any violation of the
“Standards of Conduct” set forth in the Company’s employee manual, as in effect
      from time to time; or (vi) any willful misconduct by Participant that is
      materially injurious to the financial condition or business reputation of,
      or is
      otherwise materially injurious to, the Company.

    

    (b)
       “Good
      Reason” shall mean the occurrence of any of the following events: (i) a material
      reduction in your Fixed Salary or Annual Bonus opportunity in effect on the
      effective date of the Change of Control; or (ii) the relocation of the
      Participant’s principal place of business to a location that is more than 35
      miles from the Participant’s principal place of business on the effective date
      of the Change of Control.

     

     

    15.     
Miscellaneous
      Provisions.

     

    (a)
Notices. 
Any
      notice necessary under
      this Award Agreement shall be addressed to the Company in care of its Secretary
      at the principal executive office of the Company and to the Participant at
      the
      address appearing in the records of the Company for the Participant or to either
      party at such other address as either party hereto may hereafter designate
      in
      writing to the other. Any such notice shall be deemed effective upon receipt
      thereof by the addressee.

     

    (b)
Headings. 
The
      headings of sections and
      subsections are included solely for convenience of reference and shall not
      affect the meaning of the provisions of this Award Agreement.

     

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

     

    (d)
Entire
      Agreement.  This Award Agreement
      and the Plan constitute the entire agreement between the parties hereto with
      regard to the subject matter hereof. They supersede all other agreements,
      representations or understandings (whether oral or written and whether express
      or implied) that relate to the subject matter hereof.

     

    (e)
Amendments. 
The
      Board or the Company
      shall have the power to alter or amend the terms of the Restricted Stock as
      set
      forth herein from time to time, in any manner consistent with the provisions
      of
      Section 15 of the Plan, and any alteration or amendment of the terms of the
      Restricted Stock by the Company shall, upon adoption, become and be binding
      on
      all persons affected thereby without requirement for consent or other action
      with respect thereto by any such person. The Company shall give written notice
      to the Participant of any such alteration or amendment as promptly as
      practicable after the adoption thereof. The foregoing shall not restrict the
      ability of the Participant and the Company by mutual consent to alter or amend
      the terms of the Restricted Stock in any manner that is consistent with the
      Plan
      and approved by the Company.

     

    (f)
Successor. 
Except
      as otherwise provided
      herein, this Award Agreement shall be binding upon and shall inure to the
      benefit of any successor or successors of the Company, and to any Permitted
      Transferee pursuant to Section 7.

     

    (g)
Choice
      of Law.  Except as to matters of
      federal law, this Award Agreement and all actions taken thereunder shall be
      governed by and construed in accordance with the laws of the State of New York
      (other than its conflict of law rules).

     

     

    

    
      	15.  	
              Miscellaneous
                Provisions.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement.

    

    MPOWER
      HOLDING CORPORATION

    

    

    By:
      ___________________________________

    Name:
      _________________________________

    Title:
      __________________________________

    

    Agreed
      and acknowledged as

    of
      the
      date first above written:

    

    

    _____________________

    [Name]Prepared and filed by St Ives Financial

Exhibit 10.1

AGREEMENT AND RELEASE

     CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS AGREEMENT AND RELEASE.

     BY SIGNING THIS AGREEMENT AND RELEASE, YOU GIVE UP AND WAIVE IMPORTANT LEGAL RIGHTS.

     This is an agreement and release (the “Agreement”) between Authentidate Holding Corp., its stockholders (solely in their capacity as stockholders of Authentidate Holding Corp.), subsidiaries, affiliates, divisions, successors and assigns, their respective past and present officers, directors, employees, agents, attorneys, whether as individuals or in their official capacity, and each of their respective successors and assigns (hereinafter collectively referred to as “AHC” or the “Company”) and by his own free will, Dennis   H. Bunt (“Bunt” or “Employee”).  As used herein, the term “Execution Date” shall mean the later of the two dates on which
this agreement has been executed by Employee and AHC, as specified on the signature page of this agreement.  

     WHEREAS, Bunt has been an employee of AHC, and

     WHEREAS, Bunt has been employed pursuant to a written employment agreement dated as of October 31, 2001 (the “Employment Agreement”); and 

     WHEREAS, Employee and AHC each desire an amicable cessation of the employment relationship,

     NOW, THEREFORE, in consideration of the covenants and promises contained herein and for other good and valuable consideration, receipt of which is hereby acknowledged, Employee and AHC (who hereinafter collectively may be referred to as the “Parties”) hereby agree as follows:

     1. Employee acknowledges and agrees that effective the close of business March 31, 2006, Employee’s employment is terminated (the “Termination Date”). Employee agrees that in the event the Company requests, on or before January 31, 2006, that Employee remain as an employee for up to an additional thirty (30) days from the initial Termination Date, Employee will continue in such capacity at his then-current base salary. The Termination Date shall be either the initial Termination Date or the extension period, whichever is later.

     2. In consideration for Employee’s execution of this Agreement, and in consideration for the release of claims against AHC, the Company will pay or provide to Employee the following:

          a.      An aggregate amount of Three Hundred Fifteen Thousand Three Hundred Seventy-Two and 00/100 ($315,372.00) Dollars (“Severance Payment”), payable  in equal and consecutive installments over a period of twenty-four months on each of the Company’s regular pay dates for executives, commencing on the first regular executive pay date following the Termination Date.  

          b.      Cash payments to be made by Company check as follows: (i) Twenty-Five Thousand and 00/100 ($25,000.00) Dollars within ten (10) days of the Termination Date and (ii) payment of Eight Thousand and 00/100 ($8,000.00) Dollars within ten (10) days of the Execution Date for attorney’s fees incurred by Employee in connection with (A) the negotiation and execution of this Agreement and Release and (B) the events associated with and arising out of that certain letter dated April 15, 2005 from Employee to certain members of the Board of Directors of the Company.  

          c.      The conditions to the vesting of any unvested and outstanding stock options granted to the Employee under any of the Company’s stock option plans, shall be deemed void and all such incentive awards shall be immediately and fully vested as of the Termination Date. In addition, the terms of all outstanding stock options held by Employee as of the Termination Date shall be deemed amended to provide that the awards shall remain exercisable for a period of two years following the Termination Date except for that certain option certificate granted on February 5, 2004 representing the right to acquire an aggregate of 80,000 shares of the Company’s
Common Stock, which option certificate shall remain exercisable for the duration  of its original term, as indicated on Exhibit “A.”  The Company will issue revised Stock Option Certificates reflecting the new termination dates and vesting within ten (10) days of the Termination Date.  Such new Stock Option Certificates will be in substantially the same form as the Stock Option Certificates currently in Employee’s possession, except as is necessary to reflect the modifications described in this paragraph.  Employee will return the previously issued Employee Stock Options to the Company at the same time as the Company tenders delivery of the new Stock Option Certificates.  

          d.      Attached as Exhibit “A” is a list of options to be amended and issued to Employee within ten (10) days of the Termination Date.

          e.      Employee agrees and acknowledges that the Company’s payment of the compensation described in Sections 2(a) – 2(c) of this Agreement is in lieu of all other compensation to which Employee may have been entitled pursuant to the Employment Agreement.

     3.
    Benefits:

          a.      The Company agrees that it shall reimburse Employee for expenses actually incurred by Employee in securing medical benefit continuation coverage on a self-pay basis under federal law (COBRA) for a maximum period of eighteen (18) months from the Termination Date.

          b.      Employee shall be paid for unused vacation time for 2005 and 2006 in accordance with the Company’s current policy, based on the hourly rate of Seventy-Five and 81/100 ($75.81) Dollars per   hour.   Final reconciliation of monies due based on actual time taken and payment of such amount will be made within two (2) weeks of the Termination Date.  As of December 31, 2005, Employee has one hundred (100) hours of unused vacation time available for carryover into 2006 and will earn up to a maximum of forty-one (41) additional hours of vacation time through March 31, 2006.  In the event the Company determines to retain Employee beyond March 31, 2006, then
Employee shall be paid three (3) additional hours of accrued vacation at the Hourly Rate for each additional week worked beyond March 31, 2006, up to a maximum of 13 additional hours for the entire thirty day extension period.  

          c.      Except as otherwise expressly provided in this Agreement, Employee will not be entitled to receive any other benefits after the Termination Date.

     4.
    To the extent Employee has unreimbursed business expenses, incurred through
    the Termination Date, Employee must promptly submit the expenses with all
    appropriate documentation; those expenses which meet the Company’s
    guidelines will be reimbursed. Any expense account that Employee has with
    the Company terminates effective on the Termination Date, and any expenses
    already incurred will be reviewed and processed in accordance with the policies
    and procedures of the Company. No new expenses may be incurred after the
    Termination Date. Employee agrees to promptly pay any outstanding balance
    on these accounts that represent non-reimbursable expenses. Company will
    pay accepted expenses within twenty (20) business days from the Termination
    Date, in accordance with the Company’s expense reimbursement guidelines
    existing as of the date that this Agreement is executed by both the Company
    and Employee. 

2

     5. Employee understands that this Agreement does not constitute an admission by the Company of any liability, error or omission, including without limitation, any: (a) violation of any statute, law, or regulation; (b) breach of contract, actual or implied; or (c) commission of any tort.

     6. Employee acknowledges that the consideration provided in this Agreement exceed that to which Employee would otherwise be entitled under the normal operation of any benefit plan, policy or procedure of the Company or under any previous agreement (written or oral) between Employee and the Company.  Employee further acknowledges that the agreement by AHC to provide consideration pursuant to this Agreement beyond Employee’s entitlement is conditioned upon Employee’s release of all claims against AHC and Employee’s compliance with all the terms and conditions of this Agreement.

     7. Intentionally Omitted. 

     8. The Parties agree that, except as provided for herein, there shall be no other payments or benefits payable to Employee, including but not limited to, salary, bonuses, commissions, finder’s fees and/or other payments.  

     9. Arbitration:

          a.      The Parties specifically and knowingly and voluntarily agree to arbitrate any controversy, dispute or claim which has arisen or should arise in connection with Employee’s employment, the cessation of Employee’s employment, or in any way related to the terms of this Agreement.  The Parties agree to arbitrate any and all such controversies, disputes, and claims 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 and admitted to practice in the State of
New York. In the course of any arbitration pursuant to this Agreement, Employee and the Company agree (i) to request that a written award be issued by the arbitrator and (ii) that each side is entitled to receive any and all relief it would be entitled to receive in a court proceeding. The Parties knowingly and voluntarily agree to enter into this arbitration clause and, except for claims contemplated in Section 9(c) below, waive any rights that might otherwise exist to request a jury trial or other court proceeding.  This paragraph is intended to be both a post-dispute and pre-dispute arbitration clause.  Any judgment upon any arbitration award may be entered in any court, federal or state, having competent jurisdiction of the parties.

          b.       The Parties’ agreement to arbitrate disputes includes, but is not limited to, any claims of unlawful discrimination and/or unlawful harassment under Title VII of the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment Act 1967, as amended, the Americans with Disabilities Act, the New Jersey and New York Civil Rights Laws, the New Jersey Law Against Discrimination, the New York Executive Law, the New York City Human Rights Law, the New Jersey Conscientious Employee Protection Act, the New Jersey Family Leave Act, or any other federal, state or local law relating to discrimination in employment and any claims relating to wage
and hour claims and any other statutory or common law claims.

          c.      Notwithstanding the foregoing, Employee acknowledges and agrees that the breach by Employee of the non-disparagement, confidentiality, non-competition, or cooperation obligations (as provided by Paragraphs 10 – 15 and 21 of this Agreement) will cause the Company irreparable injury not compensable by money damages and therefore, the Company will not have an adequate remedy at law.  Accordingly, if the Company institutes an action or proceeding to enforce such obligations, it shall be entitled to injunctive or other equitable relief to prevent or curtail any such breach, threatened or actual.  

3

     10.
    Employee and AHC agree that the terms and existence of this Agreement are
    and shall remain confidential and agrees not to disclose any terms or provisions
    of this Agreement, or to talk or write about the negotiation, execution or
    implementation of this Agreement, without the prior written consent of the
    other, except (a) as required by law; (b) as required by regulatory authorities,
    including as may be required under the Securities Exchange Act of 1934, as
    amended, and the rules and regulations of the U.S. Securities and Exchange
    Commission promulgated thereunder; (c) as required within AHC to process
    this Agreement; or (d) in connection with any arbitration or litigation arising
    out of this Agreement. Anything herein to the contrary notwithstanding, Employee
    may disclose the terms of this Agreement to Employee’s immediate family,
    accountant or attorney, provided they are made aware of and agree to the
    confidentiality provisions.

     11. Employee further acknowledges and agrees that any non-public and/or proprietary  information of the Company and/or its customers disclosed to or prepared by Employee during Employee’s employment remains confidential and may not be used and/or disclosed by Employee hereafter without the prior written consent of AHC.  Employee further agrees that the provisions of Article V of the Employment Agreement (“Non-Disclosure”) shall remain in full force and effect.

     12. Solely for the purpose of determining the applicability of the Restrictive Covenants in Article VI of the Employment Agreement, Employee shall be deemed to have voluntarily terminated his employment as of the Termination Date, and Employee hereby agrees that all of the provisions of Article VI, as modified by this paragraph, shall remain in full force and effect for a period of twelve months commencing on the Termination Date. Further, in addition to the provisions of Article VI, Employee also agrees that in consideration for the payments and other consideration provided in this Agreement, Employee will not, during the period commencing on the Execution Date and for as long as Employee is receiving payments under
this Agreement, either directly or indirectly, (a) solicit any person who is employed by AHC (or who was employed by AHC within ninety (90) days of the termination of  the Termination  Date) to: (i) terminate his employment with AHC; (ii) accept employment with anyone other than AHC, or (iii) in any manner interfere with the business of AHC.

     13. In consideration of the foregoing, Employee agrees to irrevocably assign to the Company  any and all inventions, software (including source code and source code documentation for all computer programs developed or modified), 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 have been developed by Employee during the course of his 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 (all of the
foregoing “Intellectual Property”).  Employee agrees that all such Intellectual Property, including without limitation all copyrights, trademarks, trade secrets and patent rights therein, is irrevocably assigned to and shall be and remain the sole and exclusive property of the Company and shall be deemed the product of work for hire.  Employee further 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 appoint the Company your 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.

     14. Employee agrees that commencing on the Execution Date and for as long as Employee is entitled to receive any payments under this Agreement, Employee shall not make any negative or derogatory statements in verbal, written, electronic or any other form about the Company, or its officers, employees and directors 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.  The Company agrees not to issue, and will advise its executive officers and directors not to make, any negative or derogatory statements in verbal, written, electronic or any other form about Employee.

4

     15. Litigation

          a.      Employee shall cooperate fully with the Company in the prosecution or defense, as the case may be, of any and all actions, governmental inquiries or other legal or regulatory proceedings in which Employee’s assistance may be reasonably requested by the Company. Reasonable expenses arising from the cooperation will be advanced or reimbursed within the Company’s guidelines. Consistent with the  “Certificate of Incorporation of Authentidate Holding Corp.,”  and the Company’s Amended and Restated By-Laws, AHC will hold harmless and indemnify Employee from and against any expenses (including attorneys’ fees), judgments,
fines and amounts paid in settlement arising from any claim, suit or other action against Employee by any third party, on account of any action or inaction by Employee taken or omitted to be taken  by Employee on behalf of AHC during the course of his employment, up to his date of termination, provided that such action or inaction by Employee was within the scope of Employee’s employment and consistent with the Company’s policies and procedures.  Notwithstanding anything to the contrary contained herein, the obligations of the Company pursuant to Section 10.2 of the Employment Agreement shall survive the termination of the Employment Agreement and are specifically incorporated herein as if fully set forth herein.  In accordance with Section 10.2 of the Employment Agreement, the
Company further agrees to maintain such insurance, including, but not limited to, directors’ and officers’ liability insurance, and liability 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 for a period of six (6) years after the Termination Date.  In the event any action is commenced or claim made against the Employee that is covered by Section 10.2 of the Employment Agreement and Employee reasonably requires his own counsel due to the Company’s failure to provide Employee with representation, the Company agrees to advance reasonable expenses to Employee to provide for the cost of such representation.

          b.      Employee agrees that he will not provide support or assistance, directly or indirectly, to any individual, corporation, or other non-governmental entity in connection with any claim, action, suit or proceeding involving the Company or any of its affiliates unless required to do so by law (in which case Employee agrees to promptly notify the Company of such legal requirement).

          c.      Employee acknowledges that he has advised the Company completely and candidly of all facts of which he is aware that may give rise to legal matters.   

     16. Employee shall direct all requests for references to be forwarded in writing to the Company, attention: Office of the President. The Company will state in response to such inquiries your dates of employment and positions held. The Company shall not be responsible for responses to reference requests sought or obtained other than under the procedures set forth in this paragraph.  The Company shall direct employees authorized to make communications concerning Employee not to convey negative or derogatory statements regarding Employee if contacted for a reference.

     17. Employee realizes there are many laws and regulations prohibiting employment discrimination, or otherwise regulating employment or claims related to employment pursuant to which Employee may have rights or claims. These include but are not limited to Title VII of the Civil Rights Act of 1964, as amended; the Americans with Disabilities Act of 1990; the Pregnancy Discrimination Act; the National Labor Relations Act, as amended; 42 U.S.C 1981; the Employee Retirement Income Security Act of 1974, as amended; the Age Discrimination in Employment Act of 1967, as amended; the Civil Rights Act of 1991; the Worker Adjustment and Retraining Notification Act; the New York State and City Human Rights Laws; the New Jersey Law
Against Discrimination; the New Jersey Conscientious Employee Protection Act, the New Jersey Family Leave Act, and other Federal, State and local human rights, fair employment and  other laws.  Employee also understands there are other statutes and contract and tort laws which relate to Employee’s employment and/or the termination of Employee’s employment. Employee hereby knowingly and voluntarily agrees to waive and release any rights or claims Employee may have under these and other laws, but does not intend to, nor is Employee waiving any rights or claims that may arise after the date that this Agreement is signed by Employee. Notwithstanding the foregoing sentence, Employee’s waiver and release shall not extend to (i) any rights, remedies, or claims Employee may have
in enforcing the terms of  the Agreement; and (ii) any rights Employee may have to receive vested amounts under AHC’s stock option plans, 401(k) or pension plans.

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     18. This Agreement shall be deemed to have been made within the County of New York, State of New York, and shall be interpreted and construed and enforced in accordance with the laws of the State of New York without regard to its conflicts of law provision.

     19. Employee is hereby advised of Employee’s rights to review this Agreement with counsel of Employee’s choice.  Employee has had the opportunity to consult with an attorney and/or other advisor of Employee’s choosing before signing the Agreement, and was given a period of twenty-one (21) days to consider the Agreement. Employee is permitted, at his discretion, to return the Agreement prior to the expiration of this twenty-one (21) day period.  Employee acknowledges that in signing this Agreement, Employee has relied only on the promises written in this Agreement, and not on any other promise made by the Company or any other entity or person.

     20. Employee represents that Employee has not filed any complaints, charges or claims against AHC with any local, State, or Federal agency or court, or with any other forum.

     21. By the Termination Date employee shall return any AHC property in his possession or custody or under his control, no matter where located including, but not limited to, AHC I.D. or security cards, corporate credit card, keys, computer disks, equipment, furniture, computers (except for the laptop computer discussed below), peripherals and other electronic devices, and any written or electronic material prepared or received in the course of his employment at AHC, including without limitation, memoranda, reports, files, correspondence, manuals, notes, specifications, data, whether existing in hard copy or other media.  Employee is currently using a Company provided Dell laptop computer (serial no. 687955659).
Company will allow Employee to retain the laptop after the Termination Date under such reasonable assurances as to vest title to such laptop computer to Employee.  Employee agrees to delete and permanently purge all Company related files and data from the laptop computer and Company's personnel reserves the right to inspect such laptop computer on or prior to the Termination Date.

     22. In the event Employee materially breaches this Agreement, Employee agrees to forfeit the entire consideration given for this release and to pay the Company any actual damages caused by Employee’s breach.  In the event the Company materially breaches this Agreement, all amounts due hereunder will be accelerated and become due immediately.

     23. If any provision of this Agreement, or any part thereof, is held to be invalid or unenforceable because of the scope or duration of or the area covered by such provision, Employee and AHC agree that the court or other appropriate decision-making authority making such determination shall reduce the scope, duration and/or area of such provision (and shall substitute appropriate provisions for any such invalid or unenforceable provisions) in order to make such provision enforceable to the fullest extent permitted by law and/or shall delete specific words and phrases, and such modified provision shall then be enforceable and shall be enforced. In the event that any court or other
appropriate decision-making authority determines that the time period or the area, or both, are unreasonable and that any of the covenants is to that extent invalid or unenforceable, the parties hereto agree that such covenants will remain in full force and effect, first, for the greatest time period, and second, in the greatest geographical area that would not render them unenforceable.  If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions of this Agreement shall nonetheless survive and be enforced to the fullest extent permitted by law.

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     24. Except as otherwise expressly provided herein, this Agreement and Release, together with the General Release constitute the entire agreement between the Parties and supersede any and all prior agreements, whether written or oral.  This Agreement may not be modified or changed, except in a written agreement signed by both Parties.  The failure of either party at any time to require performance by the other party of any provision hereof shall in no way affect the full right to require such performance at any time thereafter.  Nor shall the waiver by either party of a breach of any provision hereof constitute a waiver of any succeeding breach of the same or any other such provision nor
constitute a waiver of the provision itself.  The Agreement may be executed in multiple counterparts, each of which shall be considered an original but all of which shall constitute one agreement.

     25. In the event of Employee’s death prior to the payment of all amounts due hereunder, all amounts owed and rights to exercise stock options hereunder will be delivered to Employee’s heirs and successors in accordance with the Company’s 2000 Employees Stock Option Plan, as amended.

[Remainder of Page Intentionally Left Blank]

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     IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates set forth below.

     I have read this Agreement, and I understand all of its terms. I enter into and sign this Agreement knowingly and voluntarily with full knowledge of what it means. I understand that I have twenty-one (21) days to consider this Agreement and return it to AHC. I also understand that I have seven (7) days to revoke this Agreement in writing after I sign it. I understand that a revocation will become effective only if I furnish AHC with written notice, within such seven (7) day period. This Agreement will not become effective or enforceable until AHC’s receipt back of Employee’s executed Agreement and the expiration of the seven day revocation
period.               
  	Employee:
 /s/ Dennis H. Bunt
___________________________
Dennis H. Bunt 	 	AuthentiDate Holding Corp.:
By:    /s/ Surendra Pai
Name:________________________
Title: Chief Executive Officer 
	 	 	 
	Date: January 26, 2006	 	Date: January 26, 2006

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CONSULT WITH AN ATTORNEY BEFORE SIGNING GENERAL RELEASE. BY SIGNING THIS GENERAL RELEASE, YOU GIVE UP AND WAIVE IMPORTANT LEGAL RIGHTS.

     GENERAL RELEASE

     I, Dennis H. Bunt, understand and, of my own free will, enter into this General Release.

     In consideration of the payments, benefits, agreements, and other consideration to be provided by Authentidate Holding Corp. (“AHC”) as described in the agreement of which this General Release is a part (such agreement, this General Release, together, the “Agreement”),  Dennis H. Bunt, for himself or herself and for his heirs, executors, administrators, and their respective successors and assigns (collectively, “Employee”), HEREBY RELEASES AND FOREVER DISCHARGES, to the maximum extent permitted by law, Authentidate Holding Corp., its stockholders (solely in their capacity as stockholders of AHC), subsidiaries, affiliates, divisions, successors and assigns, their respective
current and former officers, directors, employees, agents, attorneys, whether as individuals or in their official capacity, and each of their respective successors and assigns (hereinafter collectively referred to as “AHC”) of and from all or any manner of actions, causes and causes of action, suits, debts, obligations, damages, complaints, liabilities, losses, covenants, contracts, controversies, agreements, promises, variances, trespasses, judgments and expenses (including attorneys’ fees and costs), extents, executions, claims and demands whatsoever at law or in equity (“claims”), specifically including by way of example but not limitation, Title VII of the Civil Rights Acts of 1964 and 1991, as amended; the Civil Rights Act of 1866; the Employee Retirement
Income Security Act of 1974, as amended; the National Labor Relations Act, as amended; the Americans with Disabilities Act of 1990; the Age Discrimination in Employment Act of 1967, as amended; the Worker Adjustment and Retraining Notification Act; the Pregnancy Discrimination Act; and all Federal, State and local statutes, regulations, decisional law and ordinances and all human rights, fair employment, contract and tort laws relating to Employee’s employment with AHC and/or the termination thereof including, again by way of example but without limitation, the New Jersey and New York Civil Rights Laws, the New Jersey Law Against Discrimination, the New York Executive Law, the New York City Human Rights Law, the New Jersey Conscientious Employee Protection Act, the New Jersey Family
Leave Act, any civil rights or human rights law, as well as all claims for wrongful discharge, breach of contract, personal injury, defamation, mental anguish, injury to health and reputation, and sexual harassment, which  Employee ever had, now has, or which Employee hereafter can, shall or may have for, upon or by reason of any matter, cause or thing whatsoever arising out of Employee’s employment by AHC or the termination thereof, provided that this General Release shall not extend to (i) any rights, remedies, or claims Employee may have in enforcing the terms of this Agreement; (ii) any rights Employee may have to receive vested amounts under AHC’s stock option plan, 401-K or pension plans; (iii) Employee’s rights to medical benefit continuation coverage, on a
self-pay basis, pursuant to federal law (COBRA); and (iv) claims for indemnification (whether under state law, the Company's by-laws or otherwise) for acts performed as an officer or director of the Company or any of its affiliates. Employee takes this action fully aware of Employee’s rights arising under the laws of the United States (and any State or local governmental entity thereof) and voluntarily waives and releases all such rights or claims under these or other laws, but does not intend to, nor is Employee waiving any rights or claims that may arise after the date that this Agreement is signed by Employee. The provisions of any laws providing in substance that releases shall not extend to claims which are at the time unknown to or unsuspected by the person executing such
release, are hereby waived.

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     Employee represents that Employee has been advised to and has had an opportunity to consult with an attorney and/or any other advisors of Employee’s choosing before signing this Agreement, and was given a period of twenty-one (21) days to consider this Agreement. Employee is permitted, at his discretion, to return the Agreement prior to the expiration of this 21-day period. Employee has relied only on the promises written in the Agreement, and not on any other promise made by AHC or any other entity or person.

     Employee has seven (7) days to revoke the Agreement after Employee signs it. The Agreement will not become effective or enforceable until AHC’s receipt back of Employee’s executed Agreement and the expiration of the seven day revocation period.

     Employee has read and understood the Agreement and enters into it knowingly and voluntarily.

     IN
    WITNESS WHEREOF, Dennis H. Bunt has set his hand this 26 day of January,
    2006 having had the opportunity to review this with counsel of his or her
    choice.

	 /s/ Dennis H. Bunt

___________________________

Dennis H. Bunt 
	 
	Date: January 26, 2006

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Exhibit A

	Original Issuance Date:	 	 	 	 	 	Number:	 	 	 	 	 	Exercise Price:	 	 	 	 	 	Expiration Date:	 
	March 21, 2001	 	 	 	 	 	86,849	 	 	 	 	 	 $4.625	 	 	 	 	 	2 Yrs From Termination Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	July 24, 2002	 	 	 	 	 	25,000	 	 	 	 	 	 $2.75	 	 	 	 	 	2 Yrs From Termination Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	October 1, 2002	 	 	 	 	 	40,000	 	 	 	 	 	 $2.50	 	 	 	 	 	2 Yrs From Termination Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	February 5, 2004	 	 	 	 	 	80,000	 	 	 	 	 	 $15.33	 	 	 	 	 	February 5, 2009	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL OPTIONS	 	 	 	 	 	231,849	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Vesting:  All of the above options will become fully vested on the Termination Date	 

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