AUTHENTIDATE HOLDING CORP
FORM OF STOCK OPTION AWARD
<DOCUMENT>
<TYPE>EX-10.31.1
<SEQUENCE>5
<FILENAME>b400831ex10_31-1.htm
<DESCRIPTION>FORM OF STOCK OPTION AWARD
<TEXT>
<HTML>
<HEAD>
   <title>Prepared and filed by St Ives Burrups</title>

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<p align="right"><font size="2" face="Times New Roman,Times,serif"><B>Exhibit
  10.31.1</B></font></P>
<p align="center"><B><FONT size="2" face="Times New Roman,Times,serif">AUTHENTIDATE
  HOLDING CORP.</FONT></B></P>
<P align="center"> <font size="2" face="Times New Roman,Times,serif"><B>NON-QUALIFIED
  STOCK OPTION AGREEMENT</B> </font></P>
<P> <FONT size="2" face="Times New Roman,Times,serif">Name:<br>
  Date of Grant:<br>
  Option No.:</FONT></P>
<hr width="150" size="1" noshade>
<div style="text-indent:3%">
  <P> <font size="2" face="Times New Roman,Times,serif">We are pleased
    to notify you that in accordance with the terms of the Non-Executive Director
    Stock Option Plan (the &#147;Plan&#148;;) of Authentidate Holding Corp. (the
    &#147;;Company&#148;;) a stock option to purchase ____ shares of the Common
    Stock $.001 par value per share of the Company at a price of $____ per share
    this __ day of ______ , _____ has been granted to you under the Plan. This
    option may be exercised only upon the terms and conditions set forth below.
    The following is a summary of the Plan and is subject to all of the terms
    and conditions of the Plan. </font></P>
</div>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><b><font size="2" face="Times New Roman,Times,serif">
      1.</font></b></td>
    <td><b><font size="2" face="Times New Roman,Times,serif"><U>Purpose
      of Option</U></font> </b></td>
  </tr>
</table>
<div style="text-indent:3%">
  <p><font size="2" face="Times New Roman,Times,serif">The purpose
    of the Plan under which this stock option has been granted is to </font><FONT size="2" face="Times New Roman,Times,serif">enable
    the Company to attract and retain the services of qualified independent person
    to serve on the Company&#146;s Board of Directors by affording such person
    the opportunity to acquire a proprietary interest in the Company. </FONT></P>
</div>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><b><font size="2" face="Times New Roman,Times,serif">
      2.</font></b></td>
    <td><b><font size="2" face="Times New Roman,Times,serif"><U>Acceptance
      of Option Agreement</U></font></b></td>
  </tr>
</table>
<div style="text-indent:3%">
  <p><font size="2" face="Times New Roman,Times,serif">Your acceptance
    of this stock option agreement will indicate your acceptance of </font><FONT size="2" face="Times New Roman,Times,serif">and
    your willingness to be bound by its terms; it imposes no obligation upon you
    to purchase any of the shares subject to the option. Your obligation to purchase
    shares can arise only upon your exercise of the option in the manner set forth
    in paragraph 4 hereof. </FONT></P>
</div>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><b><font size="2" face="Times New Roman,Times,serif">
      3.</font></b></td>
    <td><b><font size="2" face="Times New Roman,Times,serif"><U>When
      Option May Be Exercised</U></font></b></td>
  </tr>
</table>
<div style="text-indent:3%">
  <p><font size="2" face="Times New Roman,Times,serif">Except as
    otherwise provided herein, this option shall be exercisable at any time </font><FONT size="2" face="Times New Roman,Times,serif">prior
    to the Expiration Date, as hereafter defined. This option may not be exercised
    for less than ten shares at any one time (or the remaining shares then purchasable
    if less than ten) and expires _____ , ____ (the &#147;;Expiration Date&#148;;)
    whether or not it has been duly exercised, unless sooner terminated as provided
    in paragraphs 5, 6 and 7 hereof. </FONT></P>
</div>
<hr noshade align="center" width="100%" size="2">

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<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><font size="2" face="Times New Roman,Times,serif">
      <b>4.</b></font></td>
    <td><b><font size="2" face="Times New Roman,Times,serif"><U>How
      Option May Be Exercised</U></font></b></td>
  </tr>
</table>
<div style="text-indent:3%">
  <p><font size="2" face="Times New Roman,Times,serif">This option
    is exercisable by a written notice signed by you and delivered to the </font><FONT size="2" face="Times New Roman,Times,serif">Company
    at its executive offices, signifying your election to exercise the option.
    The notice must state the number of shares of Common Stock as to which your
    option is being exercised, must contain a statement by you (in a form acceptable
    to the Company) that such shares are being acquired by you for investment
    and not with a view to their distribution or resale (unless a Registration
    Statement covering the shares purchasable has been declared effective by the
    Securities and Exchange Commission) and must be accompanied by cash or certified
    check to the order of the Company for the full purchase price of the shares
    being purchased. Payment shall be in cash, or by certified or bank cashier&#146;s
    check payable to the order of the Company, free from all collection charges.</FONT></P>
</div>
<div style="text-indent:3%">
  <P><font size="2" face="Times New Roman,Times,serif">If notice
    of the exercise of this option is given by the person or persons other than
    you, the Company may require, as a condition to the exercise of this option,
    the submission to the Company of appropriate proof of the right of such person
    or person to exercise this option. </font></P>
</div>
<div style="text-indent:3%">
  <P><font size="2" face="Times New Roman,Times,serif">Certificate
    for shares of the Common Stock so purchased will be issued as soon as practicable.
    The Company, however, shall not be required to issue or deliver a certificate
    for any shares until it has complied with all requirements of the Securities
    Act of 1933, the Securities Exchange Act of 1934, any stock exchange on which
    the Company&#146;s common Stock may then be listed and all applicable state
    laws in connection with the issuance or sale of such shares or the listing
    of such shares on said exchange. Until the issuance of the certificate for
    such shares, you or such other person as may be entitled to exercise this
    option, shall have none of the rights of a stockholder with respect to shares
    subject to this option. </FONT></P>
</div>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><b><font size="2" face="Times New Roman,Times,serif">
      5.</font></b></td>
    <td><b><font size="2" face="Times New Roman,Times,serif"><U>Termination
      of Directorship</U></font></b></td>
  </tr>
</table>
<div style="text-indent:3%">
  <p><font size="2" face="Times New Roman,Times,serif">Nothing in
    this option agreement shall entitle you to continue to serve as a </font><FONT size="2" face="Times New Roman,Times,serif">director.
    If your service as a member of the Board of Directors of the Company is terminated
    for any reason other than by death or disability, this option shall lapse
    and expire on the effective date of termination of service as a director.
    </FONT></P>
</div>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><b><font size="2" face="Times New Roman,Times,serif">
      6.</font></b></td>
    <td><b><font size="2" face="Times New Roman,Times,serif"><U>No
      Rights as Shareholder</U></font></b></td>
  </tr>
</table>
<div style="text-indent:3%">
  <p><font size="2" face="Times New Roman,Times,serif">Until the
    date that the conditions to exercise are, in the Company&#146;s sole </font><FONT size="2" face="Times New Roman,Times,serif">determination,
    satisfied, you (or such other person as may be entitled to exercise this option)
    shall have none of the rights of a shareholder with respect to Common Stock
    upon exercise of this option. </FONT></P>
</div>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><b><font size="2" face="Times New Roman,Times,serif">
      7.</font></b></td>
    <td><b><font size="2" face="Times New Roman,Times,serif"><U>Disability</U></font></b></td>
  </tr>
</table>
<div style="text-indent:3%">
  <p><font size="2" face="Times New Roman,Times,serif">If your service
    as a member of the Board of Directors of the Company is </font><FONT size="2" face="Times New Roman,Times,serif">terminated
    by reason of your permanent disability you may exercise this option within
    one year from the date of such termination, provided, that such exercise occurs
    prior to the Expiration Date. </FONT></P>
</div>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<page>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><b><font size="2" face="Times New Roman,Times,serif">
      8.</font></b></td>
    <td><b><font size="2" face="Times New Roman,Times,serif"><U>Death</U></font></b></td>
  </tr>
</table>
<div style="text-indent:3%">
  <p><font size="2" face="Times New Roman,Times,serif">If you die
    while serving as a member of the Board of Directors of the Company, </font><FONT size="2" face="Times New Roman,Times,serif">any
    option which was exercisable by you at the date of your death may be exercised
    by your legatee or legatees under your Will, or by your personal representatives
    or distributees, within one year from the date of your death, but in no event
    after the Expiration Date. </FONT></P>
</div>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><b><font size="2" face="Times New Roman,Times,serif">
      9.</font></b></td>
    <td><b><font size="2" face="Times New Roman,Times,serif"><U>Non-Transferability
      of Option</U></font></b></td>
  </tr>
</table>
<div style="text-indent:3%">
  <p><font size="2" face="Times New Roman,Times,serif">This option
    shall not be transferable except by will or the laws of descent and </font><FONT size="2" face="Times New Roman,Times,serif">distribution,
    and may be exercised during your lifetime only by you. Notwithstanding the
    foregoing, any proposed transfer shall be subject to the Internal Revenue
    Code, the rules and regulations promulgated thereunder and the federal securities
    laws and regulations.</FONT></P>
</div>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><b><font size="2" face="Times New Roman,Times,serif">
      10.</font></b></td>
    <td><b><font size="2" face="Times New Roman,Times,serif"><U>Adjustments
      Upon Changes in Capitalization</U></font></b></td>
  </tr>
</table>
<div style="text-indent:3%">
  <p><font size="2" face="Times New Roman,Times,serif">If at any
    time after the date of grant of this option, the Company shall, by stock </font><FONT size="2" face="Times New Roman,Times,serif">dividend,
    split-up, combination, reclassification or exchange, or through merger or
    consolidation, or otherwise, change its shares of Common Stock into a different
    number or kind or class of shares or other securities or property, then the
    number of shares covered by this option and the price of each such share shall
    be proportionately adjusted for any such change by the Board of Directors
    whose determination shall be conclusive. Any fraction of a share resulting
    from any adjustment shall be eliminated through the payment of cash based
    upon the fair market value of the Common Stock. </FONT></P>
</div>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><b><font size="2" face="Times New Roman,Times,serif">
      11.</font></b></td>
    <td><b><font size="2" face="Times New Roman,Times,serif"><U>Subject
      to Terms of the Plan</U></font></b></td>
  </tr>
</table>
<div style="text-indent:3%">
  <p><font size="2" face="Times New Roman,Times,serif">This stock
    option agreement shall be subject in all respects to the terms and </font><FONT size="2" face="Times New Roman,Times,serif">conditions
    of the Plan and in the event of any question or controversy relating to the
    terms of the Plan, the decision of the Board of Directors shall be conclusive.
    </FONT></P>
</div><hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<page>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="3%"><b><font size="2" face="Times New Roman,Times,serif">
      12.</font></b></td>
    <td><b><font size="2" face="Times New Roman,Times,serif"><U>Withholding</U></font></b></td>
  </tr>
</table>
<div style="text-indent:3%">
  <p><font size="2" face="Times New Roman,Times,serif">The Company
    shall have the power and the right to deduct or withhold, or require </font><FONT size="2" face="Times New Roman,Times,serif">an
    Optionee to remit to the Company as a condition precedent for the fulfillment
    of any Option Exercise, an amount sufficient to satisfy Federal, state, and
    local taxes, domestic or foreign, required by law or regulation to be withheld
    with respect to any taxable event arising as a result of the exercise of Options.
    Whenever Shares are to be issued or cash paid to a Optionee upon exercise
    of an Option, the Company shall have the right to require the Optionee to
    remit to the Company, as a condition of exercise of the Option, an amount
    sufficient to satisfy federal, state and local withholding tax requirements
    at the time of exercise.</FONT></P>
</div>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="3%"><b><font size="2" face="Times New Roman,Times,serif">
      13.</font></b></td>
    <td><b><font size="2" face="Times New Roman,Times,serif"><U>Tax
      Treatment</U></font> </b></td>
  </tr>
</table>
<div style="text-indent:3%"> <p><font size="2">&nbsp;<FONT face="Times New Roman,Times,serif">This
  option is not intended to qualify for &#147;;incentive stock option&#148;; treatment
  under the provisions of Section 422 of the Internal Revenue Code of 1986, as
  amended. You are urged to consult with your individual tax advisor prior to
  exercising this option. As a condition to the exercise of this option, you agree
  to notify the Company promptly upon the sale or other disposition of the shares
  of Common Stock you received upon exercise of this option. </FONT></font></P></div>



<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="40%"><FONT size="2" face="Times New Roman,Times,serif">Sincerely
      yours, </FONT></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td> <FONT size="2" face="Times New Roman,Times,serif">AUTHENTIDATE
      HOLDING CORP. </FONT> </td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2"> &nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td valign="top"><font size="2" face="Times New Roman,Times,serif">By:</font></td>
    <td valign="bottom"> <hr width="100%" size="1" noshade></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2" face="Times New Roman,Times,serif">Chairman
      of the Board</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="center"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman,Times,serif">Corporate
      Seal </font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="center"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="center"><font size="2">&nbsp;</font></td>
  </tr>
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    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="center"><font size="2">&nbsp;</font></td>
  </tr>
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    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="center"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr align="left" width="200" size="1" noshade></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="center"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><FONT size="2" face="Times New Roman,Times,serif">Chief
      Financial Officer </FONT> </td>
    <td><font size="2">&nbsp;</font></td>
    <td align="center"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="center"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<b><page> </b>
<P> <b><FONT size="2" face="Times New Roman,Times,serif">OPTION
  EXERCISE FORM</FONT></b></P>
  <table width="100%" border="0" cellspacing="0" cellpadding="0">
    <tr>
      <td width="3%"><FONT size="2" face="Times New Roman,Times,serif">TO:</FONT></td>
      <td><FONT size="2" face="Times New Roman,Times,serif"> Authentidate
        Holding Corp.</FONT> </td>
    </tr>
    <tr>
      <td><font size="2"> &nbsp;</font></td>
      <td><FONT size="2" face="Times New Roman,Times,serif">2165
        Technology Drive</FONT></td>
    </tr>
    <tr>
      <td><font size="2">&nbsp;</font></td>
      <td> <FONT size="2" face="Times New Roman,Times,serif"> Schenectady,
        NY 12308 </FONT> </td>
    </tr>
  </table>

<div style="text-indent:3%">
  <P><font size="2" face="Times New Roman,Times,serif">The undersigned
    holder hereby irrevocably elects to exercise the right to purchase _________
    shares of Common Stock covered by this Option Agreement according to the conditions
    hereof and herewith makes full payment of the Exercise Price of such shares.
    </font></P>
</div>
<div style="text-indent:3%"><P>
<FONT size="2" face="Times New Roman,Times,serif">Kindly deliver to the undersigned a certificate representing the Shares.</FONT></P></div>

<P align="left"> <FONT size="2" face="Times New Roman,Times,serif"><b>INSTRUCTIONS
  FOR DELIVERY</b></FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="8%" valign="top"><FONT size="2" face="Times New Roman,Times,serif">Name:
      </FONT></td>
    <td valign="bottom">
<hr align="left" width="300" size="1" noshade></td>
  </tr>
  <tr>
    <td valign="top"><font size="2"> &nbsp;</font></td>
    <td><FONT size="2" face="Times New Roman,Times,serif">(please
      typewrite or print in block letters)</FONT> </td>
  </tr>
  <tr>
    <td valign="top"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"><FONT size="2" face="Times New Roman,Times,serif">Address:
      </FONT></td>
    <td valign="bottom">
<hr align="left" width="300" size="1" noshade></td>
  </tr>
  <tr>
    <td valign="top"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
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    <td valign="top"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
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    <td valign="top"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"><FONT size="2" face="Times New Roman,Times,serif">Dated:
      </FONT></td>
    <td valign="bottom">
<hr align="left" width="300" size="1" noshade></td>
  </tr>
  <tr>
    <td valign="top"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
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    <td valign="top"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
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    <td valign="top"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"><FONT size="2" face="Times New Roman,Times,serif">Signature</FONT></td>
    <td valign="bottom">
<hr align="left" width="300" size="1" noshade></td>
  </tr>
  <tr>
    <td valign="top"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"><FONT size="2" face="Times New Roman,Times,serif">STATE
      OF</FONT></td>
    <td><FONT size="2" face="Times New Roman,Times,serif">_________&nbsp;)</FONT></td>
  </tr>
  <tr>
    <td valign="top"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"><FONT size="2" face="Times New Roman,Times,serif">COUNTY
      OF</FONT></td>
    <td><FONT size="2" face="Times New Roman,Times,serif">_________&nbsp;)</FONT><font size="2">
      <FONT face="Times New Roman,Times,serif">ss.</FONT>
    </font></td>
  </tr>
  <tr>
    <td valign="top"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<div style="text-indent:3%">
  <P><font size="2" face="Times New Roman,Times,serif">On this &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;day
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    ____ before me personally came _______________ to me known and known to me
    to be the individual described in and who executed the foregoing instrument
    and (s)he acknowledged to me that (s)he executed the same. </font></P>
</div>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><font size="2"> &nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
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    <td><font size="2">&nbsp;</font></td>
    <td width="48%"><hr width="100%" size="1" noshade></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman,Times,serif">Notary
      Public </font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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