Document:

<PAGE>   1
                                                                    EXHIBIT 10.3

                          REGISTRATION RIGHTS AGREEMENT

    This Registration Rights Agreement ("Agreement"), dated as of August 9,
2000, is made by and between ESAT, INC., a Nevada corporation ("Company"), and
WENTWORTH LLC, a Cayman Islands corporation (the "Subscriber").

                                    Recitals

    WHEREAS, upon the terms and subject to the conditions of the Private Equity
Credit Agreement ("Purchase Agreement"), between the Subscriber and the Company,
the Company has agreed to issue and sell to the Subscriber up to seven million
dollars ($7,000,000) of the common stock of the Company ("Subscribed Shares")
par value $.001 per share (the "Common Stock"), and

    WHEREAS, pursuant to the terms of the Purchase Agreement the Company will
issue to the Subscriber warrants to purchase shares of Common Stock ("Warrants")
on a pro rata basis in conjunction with the draw downs, as set forth in the
Purchase Agreement, exercisable at 125% of the closing bid price, at the date of
each draw down.

    WHEREAS, to induce the Subscriber to execute and deliver the Purchase
Agreement, the Company has agreed to provide certain registration rights under
the Securities Act of 1933, as amended, and the rules and regulations
thereunder, or any similar successor statute (collectively, "Securities Act"),
and applicable state securities laws with respect to the Subscribed Shares;

    NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and the Subscriber
hereby agree as follows:

    1.   DEFINITIONS.

    (a)   As used in this Agreement, the following terms shall have the
following meaning:

    (i)   "Effective Date" means the date of this Agreement.

    (ii)  "Potential Material Event" means any of the following: (a) thee
possession by the Company of material information not ripe for disclosure in a
Registration Statement, which shall be evidenced by determinations in good faith
by the Board of Directors of the Company that disclosure of such information in
the Registration Statement would be detrimental to the business and affairs of
the Company, or (b) any material engagement or activity by the Company which
would, in the good faith determination of the Board of Directors of the Company,
be adversely affected by disclosure in a Registration Statement at such time,
which determination shall be accompanied by a good faith determination by the
Board of Directors of the Company that the Registration Statement would be
materially misleading absent the inclusion of such information.

    (iii) "Subscriber", has the meaning set forth in the preamble to this
Agreement.

<PAGE>   2

    (iv) "Register", "registered" and "registration" refer to a registration
effected by preparing and filing a Registration Statement or Statements in
compliance with the Securities Act and pursuant to Rule 415 under the Securities
Act or any successor rule providing for offering securities on a delayed or
continuous basis ("Rule 415"), and the declaration or ordering of effectiveness
of such Registration Statement by the United States Securities and Exchange
Commission (the "SEC").

    (v)   "Registrable Securities" means the Subscribed Shares, the Warrants,
and the Warrants issued to Grayson & Associates.

    (vi)  "Registration Statement" means a registration statement of the Company
under the Securities Act.

    (vii)  "Warrant" means the Initial Warrant, Registration Warrant, and any
Further Warrants.

    (b)    Capitalized terms used herein and not otherwise defined herein shall
have the respective meanings set forth in the Purchase Agreement.

    2.     REGISTRATION.

    (a) MANDATORY REGISTRATION. The Company shall prepare and file with the SEC,
no later than twenty (20) business days after the Effective Date, a Registration
Statement on Form S-1 ("Registration Statement"), covering a sufficient number
of shares of Common Stock for the Subscriber to cover the registration of the
seven million dollars ($7,000,000) of Subscribed Shares and the conversion of
the Warrants based on the closing bid price of the Common Stock as of the most
recent practicable date, and in any event not less than 12,015,000 shares of the
Common Stock. Such Registration Statement shall state that, in accordance with
the Securities Act, it also covers such indeterminate number of additional
shares of Common Stock as may become issuable to prevent dilution resulting from
stock splits, or stock dividends. If at any time (i) the number of Subscribed
Shares and (ii) the number of shares of Common Stock issuable upon exercise of
the Warrants exceeds the aggregate number of shares of Common Stock then
registered, the Company shall, within ten (10) business days after receipt of
written notice from the Subscriber, file with the SEC an additional Registration
Statement on Form S-1 or any other applicable registration statement, to
register (i) Subscribed Shares and (ii) the shares of Common Stock issuable upon
exercise of the Warrants that exceed the aggregate number of shares of Common
Stock already registered.

    (b) PAYMENT BY THE COMPANY. If the Registration Statement covering the
Registrable Securities required to be filed by the Company pursuant to Section
2(a) hereof is not declared effective within one hundred and fifty (150) days
from the Effective Date, then the commitment contained in the Private Equity
Credit Agreement and in this Agreement (the "Commitment") shall terminate and
the Subscriber shall be entitled to the sums set forth in Section 2.1(b) and
2.7 of the Private Equity Credit Agreement.

        The Company acknowledges that its failure to have the Registration
Statement declared effective within one hundred (150) days from the Effective
Date (for any reason other than the

<PAGE>   3

requirement by the SEC of modifications to the structure of the transactions
contemplated hereby that are unacceptable to the Company or the Subscriber)
shall cause the Subscriber to suffer damages in an amount that shall be
difficult to ascertain. Accordingly, the parties agree that it is appropriate to
include in the Private Equity Credit Agreement a provision for liquidated
damages. The parties acknowledge and agree that the liquidated damages provision
set forth in this section represents the parties' good faith effort to quantify
such damages and, as such, agree that the form and amount of such liquidated
damages are reasonable and will not constitute a penalty. The payment of
liquidated damages shall not relieve the Company from its obligations to
register the Common Stock and deliver the Common Stock pursuant to the terms of
this Agreement, the Purchase Agreement and the Subscribed Shares.

        3. OBLIGATION OF THE COMPANY. In connection with the registration of the
Registrable Securities, the Company shall do each of the following:

        (a)Prepare promptly, and file with the SEC within twenty (20) days of
the Effective Date, a Registration Statement with respect to not less than the
number of Registrable Securities provided in Section 2(a) above, and,
thereafter, use all diligent efforts to cause the Registration Statement
relating to the Registrable Securities to become effective the earlier of (a)
five (5) business days after notice from the Securities and Exchange Commission
that the Registration Statement may be declared effective, or (b) one hundred
fifty (150) days after the Effective Date, and keep the Registration Statement
effective at all times until the earliest of (i) the date that is one year after
the completion of the last Closing Date under the Purchase Agreement, (ii) the
date when the Subscriber may sell all Registrable Securities under Rule 144
without volume limitations, or (iii) the date the Subscriber no longer owns any
of the Registrable Securities (collectively, the "Registration Period"), which
Registration Statement (including any amendments or supplements, thereto and
prospectuses contained therein) shall not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading;

        (b)Prepare and file with the SEC such amendments (including
post-effective amendments) and supplements to the Registration Statement and the
prospectus used in connection with the Registration Statement as may be
necessary to keep the Registration Statement effective at all times during the
Registration Period, and, during the Registration Period, and to comply with the
provisions of the Securities Act with respect to the disposition of all
Registrable Securities of the Company covered by the Registration Statement
until the expiration of the Registration Period.

    (c) Permit a single firm of counsel designated by Subscriber to review the
Registration Statement and all amendments and supplements thereto a reasonable
period of time (but not less than three (3) Business Day) prior to their filing
with the SEC, and not file any document in a form to which such counsel
reasonably objects.

    (d) Notify Subscriber and Subscriber's legal counsel identified to the
Company (which, until further notice, shall be deemed to be Krieger & Prager,
LLP, ATTN: Samuel Krieger, Esq.; "Subscriber's Counsel") (and, in the case of
(i)(A) below, not less than one (1) Business Day

<PAGE>   4

prior to such filing) and (if requested by any such person) confirm such notice
in writing no later than one (1) Business Day following the day (i): (A) when a
prospectus or any prospectus supplement or post- effective amendment to the
Registration Statement is proposed to be filed; (B) whenever the SEC notifies
the Company whether there will be a "review" of such Registration Statement; (C)
whenever the Company receives (or a representative of the Company receives on
its behalf) any oral or written comments from the SEC respect of a Registration
Statement (copies or, in the case of oral comments, written or oral summaries of
such comments shall be promptly furnished by the Company to Subscriber's
Counsel); and (D) with respect to the Registration Statement or any
post-effective amendment, when the same has become effective; (ii) of any
request by the SEC or any other Federal or state governmental authority for
amendments or supplements to the Registration Statement or the prospectus or for
additional information; (iii) of the issuance by the SEC of any stop order
suspending the effectiveness of the Registration Statement covering any or all
of the Registrable Securities or the initiation of any proceedings for that
purpose; (iv) if at any time any of the representations or warranties of the
Company contained in any agreement (including any securities purchase agreement)
contemplated hereby ceases to be true and correct in all material respects; (v)
of the receipt by the Company of any notification with respect to the suspension
of the qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction, or the initiation or threatening of any
proceeding for such purpose; and (vi) of the occurrence of any event that to the
knowledge of the Company makes any statement made in the Registration Statement
or the prospectus or any document incorporated or deemed to be incorporated
therein by reference untrue in any material respect or that requires any
revisions to the Registration Statement, the prospectus or other documents so
that, in the case of the Registration Statement or the prospectus, as the case
may be, it will not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading. In addition, the Company shall furnish Subscriber's
Counsel with copies of all intended written responses to the comments
contemplated in clause (C) of this Section not later than one (1) Business Day
in advance of the filing of such responses with the SEC so that Subscriber shall
have the opportunity to comment thereon.

        (e) Furnish to Subscriber, (i) promptly after the same is prepared and
publicly distributed, filed with the SEC, or received by the Company, one (1)
copy of the Registration Statement, each preliminary prospectus and the
prospectus, and each amendment or supplement thereto, and (ii) such number of
copies of a prospectus, including a preliminary prospectus, and all amendments
and supplements thereto and such other documents, as the Subscriber may
reasonably request in order to facilitate the disposition of the Registrable
Securities owned by the Subscriber;

        (f) Use all diligent efforts to (i) register and/or qualify the
Registrable Securities covered by the Registration Statement under such other
securities or blue sky laws of such jurisdictions as the Subscriber may
reasonably request and in which significant volumes of shares of Common Stock
are traded, (ii) prepare and file in those jurisdictions such amendments
(including post-effective amendments) and supplements to such registrations and
qualifications as may be necessary to maintain the effectiveness thereof at all
times during the Registration Period, (iii) take such other actions as may be
necessary to maintain such registrations and qualification in

<PAGE>   5

effect at all times during the Registration Period, and (iv) take all other
actions reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions: provided, however, that the Company shall not be
required in connection therewith or as a condition thereto to (A) qualify to do
business in any jurisdiction where it would not otherwise be required to qualify
but for this Section 3(f), (B) subject itself to general taxation in any such
jurisdiction, (C) file a general consent to service of process in any such
jurisdiction, (D) provide any undertakings that cause more than nominal expense
or burden to the Company or (E) make any change in its charter or by-laws or any
then existing contracts, which in each case the Board of Directors of the
Company determines to be contrary to the best interests of the Company and its
stockholders;

        (g) As promptly as practicable after becoming aware of such event,
notify the Subscriber of the happening of any event of which the Company has
knowledge, as a result of which the prospectus included in the Registration
Statement, as then in effect, includes any untrue statement of a material fact
or omits to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading ("Registration Default"), and uses all diligent
efforts to promptly prepare a supplement or amendment to the Registration
Statement or other appropriate filing with the SEC to correct such untrue
statement or omission, and any other necessary steps to cure the Registration
Default, and deliver a number of copies of such supplement or amendment to the
Subscriber as the Subscriber may reasonably request. Failure to cure the
Registration Default within ten (10) business days shall result in the Company
including liquidated damage penalty of $1,000 per day until Registration Default
is cured or Subscriber holds less than 10,000 shares, whichever occurs first.

        (h) As promptly as practicable after becoming aware of such event,
notify the Subscriber (or, in the event of an underwritten offering, the
managing underwriters) of the issuance by the SEC of any notice of effectiveness
or any stop order or other suspension of the effectiveness of the Registration
Statement at the earliest possible time;

        (i) Notwithstanding the foregoing, if at any time or from time to time
after the date of effectiveness of the Registration Statement, the Company
notifies Investor in writing of the existence of a Potential Material Event
("Blackout Notice"), Investor shall not offer or sell any Registrable
Securities, or engage in any other transaction involving or relating to the
Registrable Securities, from the time of the giving of notice with respect to a
Potential Material Event until Investor receives written notice from the Company
that such Potential Material Event either has been disclosed to the public or no
longer constitutes a Potential Material Event; provided, however, that the
Company may not so suspend the right to such holders of Registrable Securities
for more than two twenty (20) day periods in the aggregate during any 12-month
period ("Blackout Period") with at least a ten (10) Business Day interval
between such periods, during the periods the Registration Statement is required
to be in effect.

        (j) Use its commercially reasonable efforts, if eligible, either to (i)
cause all the Registrable Securities covered by the Registration Statement to be
listed on a national securities exchange and on each additional national
securities exchange on which securities of the same class or series issued by
the Company are then listed, if any, if the listing of such Registrable

<PAGE>   6

Securities is then permitted under the rules of such exchange, or (ii) secure
designation of all the Registrable Securities covered by the Registration
Statement as a National Association of Securities Dealers Automated Quotations
System ("Nasdaq) "Small Capitalization" within the meaning of Rule 11Aa2-1 of
the SEC under the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), and the quotation of the Registrable Securities on the Nasdaq Small Cap
Market; or if, despite the Company's commercially reasonable efforts to satisfy
the preceding clause (i) or (ii), the Company is unsuccessful in doing so, to
secure NASD authorization and quotation for such Registrable Securities on the
over-the-counter bulletin board and, without limiting the generality of the
foregoing, to arrange for at least two market makers to register with the
National Association of Securities Dealers, Inc. ("NASD") as such with respect
to such registrable securities; provided, however, that the Subscriber
acknowledges that the Company does not currently meet the requirements for
listing on a national securities exchange or the Nasdaq Small Cap Market
pursuant to (i) or (ii) and that nothing in this section shall be construed to
require the Company to pursue such qualification until such time as the Company
satisfies such requirements for a period of not less than forty-five (45) days:

        (k) Provide a transfer agent for the Registrable Securities not later
than the effective date of the Registration Statement;

        (l) Cooperate with the Subscriber to facilitate the timely preparation
and delivery of certificates for the Registrable Securities to be offered
pursuant to the Registration Statement and enable such certificates for the
Registrable Securities to be in such denominations or amounts as the case may
be, as the Subscriber may reasonably request and registration in such names as
the Subscriber may request; and, within five (5) business days after a
Registration Statement which includes Registrable Securities is ordered
effective by the SEC, the Company shall deliver, and shall cause legal counsel
selected by the Company to deliver, to the transfer agent for the Registrable
Securities (with copies to the Subscriber) an appropriate instruction and
opinion of such counsel, if so required by the Company's transfer agent; and

        (m) Take all other reasonable actions necessary to expedite and
facilitate distribution to the Subscriber of the Registrable Securities pursuant
to the Registration Statement.

        4. OBLIGATIONS OF THE SUBSCRIBER. In connection with the registration of
the Registrable Securities, the Subscriber shall have the following obligations;

        (a) It shall be a condition precedent to the obligations of the Company
to complete the registration pursuant to this Agreement with respect to the
Registrable Securities of the Subscriber that the Subscriber shall timely
furnish to the Company such information regarding itself, the Registrable
Securities held by it, and the intended method of disposition of the Registrable
Securities held by it, as shall be reasonably required to effect the
registration of such Registrable Securities and shall timely execute such
documents in connection with such registration as the Company may reasonably
request.

        (b) The Subscriber by such Subscriber's acceptance of the Registrable
Securities agrees to cooperate with the Company as reasonably requested by the
Company in connection with the preparation and filing of the Registration
Statement hereunder; and

<PAGE>   7

        (c) The Subscriber agrees that, upon receipt of any notice from the
Company of the happening of any event of the kind described in Section 3(g) or
3(h) above, the Subscriber will immediately discontinue disposition of
Registrable Securities pursuant to the Registration Statement covering such
Registrable Securities until the Subscriber receives the copies of the
supplemented or amended prospectus contemplated by Section 3(g) or 3(h) and, if
so directed by the Company, the Subscriber shall deliver to the Company (at the
expense of the Company) or destroy (and deliver to the Company a certificate of
destruction) all copies in the Subscriber's possession, of the prospectus
covering such Registrable Securities current at the time of receipt of such
notice.

        5. EXPENSES OF REGISTRATION. (a) All reasonable expenses incurred in
connection with Registrations, filings or qualifications pursuant to Section 3,
including, without limitation, all Registration, listing, and qualifications
fees, printers and accounting fees, the fees and disbursements of counsel for
the Company and a fee for a single counsel for Investor of $4,500 for the
initial Registration Statement and $2,000 for each Additional Registration
Statement covering the Registrable Securities shall be borne by the Company; and

               (b) Except as otherwise provided for in Schedule 5(b) attached
hereto, the Company nor any of its subsidiaries has, as of the date hereof, and
the Company shall not on or after the date of this Agreement, enter into any
agreement with respect to its securities that is inconsistent with the rights
granted to Investor in this Agreement or otherwise conflicts with the provisions
hereof. Except as otherwise provided for in Schedule 5(b), the Company has not
previously entered into any agreement granting any registration rights with
respect to any of its securities to any person. Except as otherwise provided for
in this Section 5, and without limiting the generality of the foregoing, without
the written consent of Investor, the Company shall not grant to any person the
right to request the Company to Register any securities of the Company under the
Securities Act unless the rights so granted are subject in all respects to the
prior rights in full of Investor set forth herein, and are not otherwise in
conflict or inconsistent with the provisions of this Agreement and the other
Transaction Documents.

        6.     INDEMNIFICATION. After Registrable Securities are included in a
Registration Statement under this Agreement:

               (a) To the extent permitted by law, the Company will indemnify
and hold harmless, the Subscriber, the directors, if any, of such Subscriber,
the officers, if any, of such Subscriber, each person, if any, who controls the
Subscriber within the meaning of the Securities Act or the Exchange Act (each,
an "Indemnified Person"), against any losses, claims, damages, liabilities or
expenses (joint or several) incurred (collectively, "Claims") to which any of
them may become subject under the Securities Act, the Exchange Act or otherwise,
insofar as such Claims (or actions or proceedings, whether commenced or
threatened, in respect thereof) arise out of or are based upon: (i) any untrue
statement or alleged untrue statement of a material fact contained in the
Registration Statement or any post-effective amendment thereof or the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, (ii) any
untrue statement or alleged untrue statement of a material fact contained in any
preliminary prospectus if used prior to the effective date of

<PAGE>   8

such Registration Statement, or contained in the final prospectus (as amended or
supplemented, if the Company files any amendment thereof or supplement thereto
with the SEC) or the omission or alleged omission to state therein any material
fact necessary to make the statements made therein, in the light of the
circumstances under which the statements therein were made, not misleading or
(iii) any violation or alleged violation by the Company of the Securities Act,
the Exchange Act, any state securities law or any rule or regulation under the
Securities Act, the Exchange Act or any state securities law (the matters in the
foregoing clauses (i) through (iii) being collectively referred to as
"Violations"). The Company shall reimburse the Subscriber, promptly as such
expenses are incurred and are due and payable, for any reasonable legal fees or
other reasonable expenses incurred by them in connection with investigating or
defending any such Claim. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 6(a) shall not
(i) apply to any Claims arising out of or based upon a Violation which occurs in
reliance upon and in conformity with information furnished in writing to the
Company by or on behalf of any Indemnified Person expressly for use in
connection with the preparation of the Registration Statement or any such
amendment thereof or supplement thereto, if such prospectus was timely made
available by the Company pursuant to Section 3(b) hereof; (ii) with respect to
any preliminary prospectus, inure to the benefit of any such person from whom
the person asserting any such Claim purchased the Registrable Securities that
are the subject thereof (or to the benefit of any person controlling such
person) if the untrue statement or omission of material fact contained in the
preliminary prospectus was corrected in the prospectus, as then amended or
supplemented, if such prospectus was timely made available by the Company
pursuant to Section 3(b) hereof; (iii) be available to the extent such Claim is
based on a failure of the Subscriber to deliver or cause to be delivered the
prospectus made available by the Company; or (iv) apply to amounts paid in
settlement of any Claim if such settlement is effected without the prior written
consent of the Company, which consent shall not be unreasonably withheld. The
Subscriber will indemnify the Company, its officers, directors and agents
(including legal counsel) against any claims arising out of or based upon a
Violation which occurs in reliance upon and in conformity with information
furnished in writing to the Company, by or on behalf of such Subscriber,
expressly for use in connection with the preparation of the Registration
Statement, subject to such limitations and conditions set forth in the previous
sentence. Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of the Indemnified Person or Indemnified
Party.

    (b) Promptly after receipt by an Indemnified Person under this Section 6 of
notice of the commencement of any action (including any governmental action),
such Indemnified Person shall, if a Claim in respect thereof is to be made
against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement thereof and the indemnifying party
shall have the right to participate in, and, to the extent the indemnifying
party so desires, jointly with any other indemnifying party similarly noticed,
to assume control of the defense thereof with counsel mutually satisfactory to
the indemnifying party and the Indemnified Person, as the case may be; provided,
however, that an Indemnified Person shall have the right to retain its own
counsel with the reasonable fees and expenses to be paid by the indemnifying
party, if, in the reasonable opinion of counsel retained by the indemnifying
party, the representation by such counsel of the Indemnified Person and the
indemnifying party would be inappropriate due to actual or potential differing
interests between such Indemnified Person and any other party represented by
such counsel in such proceeding. In such event, the Company

<PAGE>   9

shall pay for only one separate legal counsel for the Subscriber selected by the
Subscriber. The failure to deliver written notice to the indemnifying party
within a reasonable time of the commencement of any such action shall not
relieve such indemnifying party of any liability to the Indemnified Person under
this Section 6, except to the extent that the indemnifying party is prejudiced
in its ability to defend such action. The indemnification required by this
Section 6 shall be made by periodic payments of the amount thereof during the
course of the investigation or defense, as such expense, loss, damage or
liability is incurred and is due and payable.

        7. CONTRIBUTION. To the extent any indemnification by an indemnifying
party is prohibited or limited by law, the indemnifying party agrees to make the
maximum contribution with respect to any amounts for which it would otherwise be
liable under Section 6 to the fullest extent permitted by law; provided,
however, that (a) no contribution shall be made under circumstances where the
maker would not have been liable for indemnification under the fault standards
set forth in Section 6; (b) no seller of Registrable Securities guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any seller of Registrable
Securities who was not guilty of such fraudulent misrepresentation; and (c)
contribution by any seller of Registrable Securities shall be limited in amount
to the net amount of proceeds received by such seller from the sale of such
Registrable Securities.

        8. REPORTS UNDER EXCHANGE ACT. With a view to making available to the
Subscriber the benefits of Rule 144 promulgated under the Securities Act or any
other similar rule or regulation of the SEC that may at any time permit the
Subscriber to sell securities of the Company to the public without registration
("Rule 144"), the Company agrees to use its reasonable best efforts to:

               (a) make and keep public information available, as those terms
are understood and defined in Rule 144;

               (b) file with the SEC in a timely manner all reports and other
documents required of the Company under the Exchange Act; and

               (c) furnish to the Subscriber so long as the Subscriber owns
Registrable Securities, promptly upon request, (i) a written statement by the
Company that it has complied with the reporting requirements of Rule 144, the
Securities Act and the Exchange Act, (ii) a copy of the most recent annual or
quarterly report of the Company and such other reports and documents so filed by
the Company and (iii) such other information as may be reasonably requested to
permit the Subscribers to sell such securities pursuant to Rule 144 without
registration.

        9. MISCELLANEOUS.

               (a) REGISTERED OWNERS. A person or entity is deemed to be a
holder of Registrable Securities whenever such person or entity owns of record
such Registrable Securities. If the Company receives conflicting instructions,
notices or elections from two or more persons or entities with respect to the
same Registrable Securities, the Company shall act upon the basis of
instructions, notice or election received from the registered owner of such
Registrable Securities.

<PAGE>   10

        (b) RIGHTS CUMULATIVE; WAIVERS. The rights of each of the parties under
this Agreement are cumulative. The rights of each of the parties hereunder shall
not be capable of being waived or varied other than by an express waiver or
variation in writing. Any failure to exercise or any delay in exercising any of
such rights shall not operate as a waiver or variation of that or any other such
right. Any defective or partial exercise of any of such rights shall not
preclude any other or further exercise of that or any other such right. No act
or course of conduct or negotiation on the part of any party shall in any way
preclude such party from exercising any such right or constitute a suspension or
any variation of any such right.

        (c) BENEFIT; SUCCESSORS BOUND. This Agreement and the terms, covenants,
conditions, provisions, obligations, undertakings, rights, and benefits hereof,
shall be binding upon, and shall inure to the benefit of, the undersigned
parties and their heirs, executors, administrators, representatives, successors,
and permitted assigns.

        (d) ENTIRE AGREEMENT. This Agreement contains the entire agreement
between the parties with respect to the subject matter hereof. There are no
promises, agreements, conditions, undertakings, understandings, warranties,
covenants or representations, oral or written, express or implied, between them
with respect to this Agreement or the matters described in this Agreement,
except as set forth in this Agreement and in the other documentation relating to
the transactions contemplated by this Agreement. Any such negotiations,
promises, or understandings shall not be used to interpret or constitute this
Agreement.

        (e) ASSIGNMENT. The rights to have the Company register Registrable
Securities pursuant to this Agreement may be assigned by the Subscribers to any
transferee, only if: (a) the assignment relates to not less than one million
dollars ($1,000,000) of Registrable Securities and the Transferee is an
Institutional Accredited Investor under Regulation D; (b) the Company receives a
legal opinion in form and substance satisfactory to the Company that the
proposed transfer complies with federal and state securities laws and does not
adversely effect the validity of the transactions executed (or to be executed)
under this Agreement and the Purchase Agreement under federal and state
securities laws; (c) the assignment requires that the Transferee be bound by all
of the provisions contained in this Agreement, and Subscriber, the Company and
the transferee or assignee (the "Transferee") enter into a written agreement,
which shall be enforceable by the Company against the Transferee and by the
Transferee against the Company, to assign such rights; and (d) immediately
following such transfer or assignment the further disposition of such securities
by the transferee or assignee is restricted under the Securities Act and
applicable state securities laws. In the event of any delay in filing or
effectiveness of the Registration Statement as a result of such assignment, the
Company shall not be liable for any damages arising from such delay, or the
payments set forth in Section 2(c) hereof.

        (f) AMENDMENT. Any provision of this Agreement may be amended and the
observance thereof may be waived (either generally or in a particular instance
and either retroactively or prospectively), only with the written consent of the
Company and Subscriber. Any amendment or waiver effected in accordance with this
Section 9 shall be binding upon the Company and any subsequent Transferees.

<PAGE>   11

        (g) SEVERABILITY. Each part of this Agreement is intended to be
severable. In the event that any provision of this Agreement is found by any
court or other authority of competent jurisdiction to be illegal or
unenforceable, such provision shall be severed or modified to the extent
necessary to render it enforceable and as so severed or modified, this Agreement
shall continue in full force and effect.

        (h) NOTICES. Notices required or permitted to be given hereunder shall
be in writing and shall be deemed to be sufficiently given when personally
delivered (by hand, by courier, by telephone line facsimile transmission,
receipt confirmed, or other means) or sent by certified mail, return receipt
requested, properly addressed and with proper postage pre-paid (i) if to the
Company, at its executive office and (ii) if to the Subscriber, at the address
set forth under its name in the Purchase Agreement, with a copy to its
designated attorney, or at such other address as each such party furnishes by
notice given in accordance with this Section 9(a), and shall be effective, when
personally delivered, upon receipt and, when so sent by certified mail, five (5)
business days after deposit with the United States Postal Service.

        (i) GOVERNING LAW. This Agreement shall be governed by and interpreted
in accordance with the laws of the State of California without reference to its
conflicts of laws rules or principles. Each of the parties consents to the
exclusive jurisdiction of the federal courts of the State of California in
connection with any dispute arising under this Agreement and hereby waives, to
the maximum extent permitted by law, any objection, including any objection
based on forum non coveniens, to the bringing of any such proceeding in such
jurisdictions.

        (j) CONSENTS. The person signing this Agreement on behalf of each party
hereby represents and warrants that he has the necessary power, consent and
authority to execute and deliver this Agreement on behalf of that party.

        (k) FURTHER ASSURANCES. In addition to the instruments and documents to
be made, executed and delivered pursuant to this Agreement, the parties hereto
agree to make, execute and deliver or cause to be made, executed and delivered,
to the requesting party such other instruments and to take such other actions as
the requesting party may reasonably require to carry out the terms of this
Agreement and the transactions contemplated hereby.

        (l) SECTION HEADINGS. The Section headings in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

        (m) CONSTRUCTION. Unless the context otherwise requires, when used
herein, the singular shall be deemed to include the plural, the plural shall be
deemed to include each of the singular, and pronouns of one or no gender shall
be deemed to include the equivalent pronoun of the other or no gender.

        (n) EXECUTION IN COUNTERPARTS. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original but all of which
shall constitute one and the same agreement. This Agreement, once executed by a
party, may be delivered to the other party hereto by telephone line facsimile
transmission of a copy of this Agreement bearing the

<PAGE>   12

signature of the party so delivering this Agreement. A facsimile transmission of
this signed Agreement shall be legal and binding on all parties hereto.

<PAGE>   13

    IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed by their respective officers thereunto duly authorized as of the day
and year first above written.

                                          COMPANY:

                                          ESAT, INC.

                                   By:_________________________________
                                                 Name:
                                                 Title:
                                          By: ________________________________
                                               Name:
                                               Title:

                                          SUBSCRIBER:

                                          WENTWORTH LLC

                                   By:_________________________________

                                      Name:____________________________

                                      Title:___________________________<PAGE>   1

                                                                   Exhibit 10.23

                                OPTION AGREEMENT

         This Option Agreement (the "Agreement") is entered into as of May 31,
2000, between Villanova Global Asset Management Trust, a Delaware business trust
("VGAMT") and Villanova Capital, Inc., a Delaware corporation ("VCI").

         WHEREAS, Nationwide Mutual Insurance Company ("Nationwide Mutual")
indirectly holds the outstanding capital stock of Nationwide Global Holdings,
Inc. ("Nationwide Global"), a Delaware corporation, which is the Managing
Unitholder of VGAMT and currently holds 6,667 trust units issued by VGAMT (the
"Trust Units"), which constitutes all of the currently issued and outstanding
Trust Units;

         WHEREAS, VGAMT indirectly holds the outstanding share capital of Asset
Management Holdings plc ("Gartmore");

         WHEREAS, the vesting schedule for this Option, set forth on Exhibit A
hereto, is based on target revenue amounts to be generated by VCI for the
Gartmore Group (as defined below), and includes key assumptions that VCI and
VGAMT believe make such revenue amounts indicative of the synergies and value to
be delivered to the Gartmore Group by VCI; and

         WHEREAS, the Managing Unitholder of VGAMT has determined that it is in
the best interests of VGAMT to issue an option to VCI providing for the purchase
of up to a 33 1/3% interest in the Trust Units and VCI has determined it is its
best interest to deliver certain synergies to Gartmore in consideration of the
issuance of such option,

         NOW, THEREFORE, for good and valuable consideration, receipt of which
is hereby acknowledged, VGAMT and VCI hereby agree as follows:

                            ARTICLE I - DEFINITIONS

         Capitalized words in this Agreement shall have the respective meanings
ascribed to them below.

                  "Accountant" has the meaning set forth in Section 4.1 hereof.

                  "Aggregate Amount" has the meaning set forth in Section 2.4(a)
hereof.

                  "Business Day" means any day other than a Saturday, a Sunday
  or a day on which banks in New York, New York are required to be closed for
  regular banking business.

                  "EQPP" means the Equity Participation Plan to be adopted by
  Gartmore pursuant to which the management of Gartmore will be eligible to
  obtain ownership of up to 10% of the share capital of Nationwide UK Holding
  Company Limited.

<PAGE>   2

                  "Exercise Date" means the date on which VCI provides a Notice
  of Exercise and related Exercise Price to VGAMT.

                  "Exercise Price" has the meaning set forth in Section 2.3(a)
hereof.

                  "Final Exercise Date" means 12:00 a.m., Eastern Standard Time,
  on the first anniversary of the Final Vesting Date.

                  "Final Vesting Date" has the meaning set forth in Section
2.2(e) hereof.

                  "Gartmore Group" means Gartmore, its subsidiaries and U.K.
affiliates, and VGAMT.

                  "Liquidity Event" means a transaction the result of which is
  that Nationwide Mutual does not directly or indirectly own 50% or more of the
  issued voting share capital of Gartmore, whether as a result of (i) a sale of
  Trust Units or shares, as the case may be, of VGAMT, Nationwide Asset
  Management Holdings Ltd., Nationwide UK Asset Management Holdings Ltd.,
  Nationwide UK Holding Company Ltd., or Gartmore or any intermediate holding
  company between Gartmore and Nationwide Global, (ii) a merger, consolidation,
  reorganization, share exchange or other business combination transaction
  involving VGAMT, Nationwide Asset Management Holdings Ltd., Nationwide UK
  Asset Management Holdings Ltd., Nationwide UK Holding Company Ltd., or
  Gartmore or any intermediate holding company between Gartmore and Nationwide
  Global, (iii) a public offering of equity securities of VGAMT, Nationwide
  Asset Management Holdings Ltd., Nationwide UK Asset Management Holdings Ltd.,
  Nationwide UK Holding Company Ltd., or Gartmore or any intermediate holding
  company between Gartmore and Nationwide Global and/or (iv) otherwise.

                  "Notice of Exercise" has the meaning set forth in Section
2.3(b) hereof.

                  "Option" has the meaning set forth in Section 2.1(a) hereof.

                  "Option Term" means the five-year term during which a Vesting
  Date may occur, which term commences on 12:01 a.m., Eastern Standard Time on
  July 1, 2000 and expires at 12:00 a.m., Eastern Standard Time on June 30,
  2005. Year 1 of the Option Term shall be July 1, 2000 to June 30, 2001; Year 2
  of the Option Term shall be July 1, 2001 to June 30, 2002, Year 3 of the
  Option Term shall be July 1, 2002 to June 30, 2003, Year 4 of the Option Term
  shall be July 1, 2003 to June 30, 2004; and Year 5 of the Option Term shall be
  July 1, 2004 to June 30, 2005.

                  "Option Units" has the meaning set forth in Section 2.4(b)
hereof.

                  "Preliminary Synergy Report" has the meaning set forth in
Section 2.2(a) hereof.

                  "Securities Act" means the Securities Act of 1933, as amended.

                                       2
<PAGE>   3

                  "Specified Tranche Percentage" has the meaning set forth in
Section 2.1(b) hereof.

                  "Synergy Payments" means the payment by VCI to VGAMT for the
  Option, which payment consists of revenues that VCI will generate for the
  Gartmore Group, as described in the Vesting Schedule.

                  "Synergy Report" has the meaning set forth in Section 2.2(a)
hereof.

                  "Target Synergy Payment Adjustment" has the meaning set forth
  in Section 3.1 hereof.

                  "Tranche" has the meaning set forth in Section 2.1(b) hereof.

                  "Trust Units" has the meaning set forth in the second recital
hereof.

                  "Vesting Date" has the meaning set forth in Section 2.2(b)
hereof.

                  "Vesting Schedule" means the target dates for the vesting of
  this Option and/or each Tranche or portion hereof following delivery of the
  target Synergy Payment, as detailed on Exhibit A hereto.

                   ARTICLE II - OPTION ISSUANCE AND EXERCISE

         2.1      OPTION.

                  (a) In consideration for the right to receive the Synergy
Payments, VGAMT hereby grants an option (the "Option") to VCI to purchase up to
a 33 1/3% interest in the Trust Units of VGAMT. The Option will vest upon the
delivery of the Synergy Payments as provided below.

                  (b) The Option will consist of four tranches (each a
"Tranche") with each Tranche representing a specified percentage interest (the
"Specified Tranche Percentage") in VGAMT. The Specified Tranche Percentage for
the first Tranche is 11.11%; the Specified Tranche Percentage for the second
Tranche is 11.11%; the Specified Tranche Percentage for the third Tranche is
5.56%; and the Specified Tranche Percentage for the fourth Tranche is 5.55%.
Each Tranche will vest on a Vesting Date and all or a portion of each Tranche
will vest on the Final Vesting Date.

                  (c) In the event of any change in the outstanding share
capital of Nationwide UK Holding Company Limited, by reason of a dividend,
split-up, recapitalization, combination, exchange of shares or similar
transaction, or if on the Final Vesting Date, less than 10% of the equity of
Gartmore has been issued and is outstanding (or likely to be outstanding) under
the EQPP for the management employees of Gartmore, the Specified Tranche
Percentage for any unexercised Tranche shall be adjusted appropriately so that
VCI shall thereafter receive upon exercise of this Option in its entirety or any
Tranche thereof the number of Trust Units representing the same percentage
interest in Nationwide UK Holding

                                       3
<PAGE>   4

Company Limited that it would have received if such exercise had occurred
immediately prior to such event or the record date thereof, as applicable.

         2.2      VESTING OF OPTION.

                  (a) Within 60 days after June 30 of each year during the
Option Term, VCI shall deliver a report (the "Preliminary Synergy Report") to
VGAMT and Nationwide Global setting forth the amount of Synergy Payments
delivered to VGAMT during the one year period from July 1 of the previous year
to June 30 of such year. Within 15 days after receipt of such Preliminary
Synergy Report, Nationwide Global (i) shall verify that the amount of Synergy
Payments set forth in the Preliminary Synergy Report for such one year period
have been delivered by VCI and the key assumptions associated with the revenues
generated for such one year period have been met by providing VCI written notice
of verification or, (ii) provide VCI with written notice if it disputes anything
contained in the Preliminary Synergy Report. Any dispute that the parties are
unable to resolve regarding the amount of delivered Synergy Payments set forth
in a Preliminary Synergy Report shall be submitted for resolution pursuant to
Article IV hereof. The Preliminary Synergy Report, once verified by Nationwide
Global, is referred to herein as a "Synergy Report".

                  (b) Except as otherwise set forth in subsection (e) hereto, if
the Synergy Report for any given one year period reflects a Synergy Payment that
equals or exceeds the cumulative target revenue amount set forth on the Vesting
Schedule for such one year period for one or more Tranche(s), then the Specified
Tranche Percentage for such Tranche that will vest with respect to such one year
period on the June 30 of such year preceding the date of such Synergy Report
(the "Vesting Date") shall be calculated as follows:

                  Specified Tranche Percentage vested on any Vesting Date equals
                  (A) the product of (i) 33 1/3% and (ii) a fraction, the
                  numerator of which is the cumulative target revenue amount set
                  forth on the Vesting Schedule for such Tranche for such one
                  year period and the denominator of which is the cumulative
                  target revenue amount set forth on the Vesting Schedule for
                  the fourth Tranche for such one year period, less (B) the
                  percentage of the Option that vested previously.

                  (c) Any or all Tranches may vest for a given period.

                  (d) No Synergy Payment relating to a previous one year period
shall be counted for purposes of vesting a Tranche for a given one year period.
If a Tranche has vested for any given one year period, then the Synergy Payment
necessary to vest one or more additional Tranches for subsequent one year
periods shall be based on the cumulative target revenue amount set forth on the
Vesting Schedule for such subsequent one year period.

                  (e) With respect to any portion of this Option that has not
fully vested prior to June 30, 2005, if the Synergy Report for the last one year
period of the Option Term reflects Synergy Payments that equal or exceed the
cumulative target revenue amount set forth on the Vesting Schedule for such one
year period for the first Tranche, then the Specified

                                       4
<PAGE>   5

Tranche Percentage of the Option that will vest on June 30 of such year
preceding the date of such report (the "Final Vesting Date") shall be calculated
as follows:

                  Specified Tranche Percentage vested on the Final Vesting Date
                  equals (A) the product of (i) 33 1/3% and (ii) a fraction, the
                  numerator of which is amount of Synergy Payments for the last
                  one year period of the Option Term and the denominator of
                  which is 34,890,000, less (B) the percentage of the Option
                  that vested previously.

                  (f) Upon the occurrence of a Liquidity Event, any unvested
portion of this Option shall immediately vest and become exercisable.

         2.3       EXERCISE OF OPTION.

                  (a) EXERCISE PRICE. The exercise price (the "Exercise Price")
to be paid to VGAMT by VCI for the purchase of Trust Units upon the exercise of
any vested Tranche (or portion thereof) shall be an amount which is the sum of
(A) the product of (i) the difference between the Specified Tranche Percentage
for such Tranche and (ii) the amount which is 90% of the purchase price (not
including any payments for net assets) paid to National Westminster Bank plc by
Nationwide Mutual or one of its affiliates to acquire Gartmore and (B) the
product of (i) the Specified Tranche Percentage for such Tranche and (ii) the
amount which represents the U.S. GAAP-basis consolidated balance sheet tangible
net asset value (excluding goodwill and all other intangible assets) of VGAMT as
of the last day of the one year period for which such Tranche vested.

                  (b) METHOD. In the event that VCI wishes to exercise any
vested portion of this Option, VCI shall deliver to VGAMT written notice (the
"Notice of Exercise") stating that it is electing to exercise the Option or a
Tranche or portion thereof that has vested, together with cash or a certified
check or such other consideration acceptable to VGAMT and Nationwide Global for
the appropriate Exercise Price. The Option for each Tranche must be exercised in
whole, and not in part, provided however, that any Tranche that vests in part on
the Final Vesting Date may be exercised to the extent it vests.

                  (c) EXERCISE DEADLINES. The Option for any Tranche or portion
thereof that has vested may be exercised at any time after such Tranche or
portion thereof has vested. The right to exercise the Option for each Tranche or
portion thereof shall expire at 12 Midnight Eastern Time on the date that is one
year following the Final Vesting Date.

         2.4      ISSUANCE OF TRUST UNITS.

                  (a) The number of Trust Units to be issued by VGAMT upon the
exercise of any Tranche (or portion thereof if applicable) that has vested
equals an amount which is the sum of (A) the product of (i) 6,667 and (ii) a
fraction, the numerator of which is the sum of (a) the Specified Tranche
Percentage for such Tranche expressed as a decimal and (b) the aggregate
Specified Tranche Percentage for all of the Tranches for which Trust Units have
been previously issued by VGAMT pursuant to the Option expressed as a decimal
(the sum of

                                       5
<PAGE>   6

(a) and (b) being hereinafter referred to as the "Aggregate Amount") and the
denominator of which is 1 minus the Aggregate Amount less (B) the number of
Trust Units previously issued by VGAMT pursuant to the Option.

                  (b) Subject to the provisions of Sections 2.5(d) and 4.1(b)
hereof, VGAMT shall issue Trust Units subject to any exercise of this Option
(the "Option Units") to VCI within five (5) Business Days of the Exercise Date.

                  (c) Unless certificates are specifically requested in the
Notice of Exercise, the Option Units will be issued as book-entry securities.
Any certificate that is issued to represent Option Units, unless at the time of
such exercise such Option Units are registered under the Securities Act, shall
bear a legend substantially in the following form:

                  THE SECURITY REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
                  "SECURITIES ACT") OR ANY APPLICABLE STATE SECURITIES LAW. NO
                  TRANSFER, SALE, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF
                  THE SECURITY REPRESENTED BY THIS CERTIFICATE MAY BE MADE
                  EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
                  UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES
                  LAWS OR (B) IF VILLANOVA GLOBAL ASSET MANAGEMENT TRUST
                  ("VGAMT") HAS BEEN FURNISHED WITH AN OPINION OF COUNSEL FOR
                  THE HOLDER HEREOF, WHICH OPINION OF COUNSEL SHALL BE
                  REASONABLY SATISFACTORY TO VGAMT, OR NO-ACTION LETTERS FROM
                  THE SECURITIES AND EXCHANGE COMMISSION AND ANY RELEVANT STATE
                  SECURITIES COMMISSION, OR OTHER EVIDENCE REASONABLY
                  SATISFACTORY TO VGAMT, TO THE EFFECT THAT SUCH TRANSFER, SALE,
                  ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION IS
                  EXEMPT FROM THE REGISTRATION PROVISIONS OF THE SECURITIES ACT
                  AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER, AND ANY
                  APPLICABLE SECURITIES LAWS. IN ADDITION THE SECURITY
                  REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO CERTAIN
                  PROVISIONS OF THE OPTION AGREEMENT DATED MAY 31, 2000 WHICH
                  MAY RESTRICT THE ABILITY OF THE HOLDER HEREOF TO TRANSFER IT.

         2.5    TERMINATION OF OPTION. Any portion of this Option that remains
unexercised as of the Final Exercise Date shall automatically terminate on the
Final Exercise Date.

                                       6
<PAGE>   7

                         ARTICLE III - OTHER AGREEMENTS

         3.1   TARGET SYNERGY PAYMENT ADJUSTMENT. In the event that one or more
key assumptions (as an example, the key assumption relating to profit margins
associated with revenues generated for any given one year period) used to
establish the target revenue amounts set forth in the Vesting Schedule have not
been met, then the target revenue amounts set forth in the Vesting Schedule
shall be adjusted to reflect such revised assumptions as mutually agreed by the
parties hereto (a "Target Synergy Payment Adjustment").

         3.2   INVESTMENT REPRESENTATION; TRANSFER RESTRICTIONS.

               (a) VCI, by acceptance hereof and of the Option Units to be
issued from time to time hereunder, represents and warrants that this Agreement
and the Option Units issuable upon exercise of this Option or any portion
thereof are being acquired by it for its own account for investment, and not
with a view to, or for the sale in connection with, any public distribution
thereof within the meaning of the Securities Act.

               (b) VCI, by acceptance hereof and of the Option Units to be
issued from time to time hereunder, agrees (i) that such Option Units will be
subject to the restrictions set forth on the legend contained in Section 2.5(b)
hereto and (ii) until the occurrence of a Liquidity Event or as otherwise agreed
to by the parties, that such Option Units may not be transferred to any party
without the prior written consent of VGAMT (which may be given or withheld in
its sole discretion).

         3.3   COVENANTS REGARDING VGAMT.

               (a) VGAMT shall take all reasonable actions necessary to reserve
and keep available out of its authorized but unissued Trust Units the full
number of Trust Units that may be issued pursuant to this Option.

               (b) VGAMT shall take all corporate action and other actions as
shall from time to time be necessary to insure that all of its Trust Units to be
issued hereunder will, upon issue, be duly and validly authorized and issued,
fully paid and nonassessable and free of any preemptive or similar rights.

               (c) VGAMT shall not, by amendment of its Certificate of Trust or
Declaration of Trust and Trust Agreement or through any reorganization, transfer
of assets, consolidation or merger, dissolution, issuance or sale of securities
or otherwise, to avoid or take action which would have the effect of avoiding
the observation or performance of any of the terms to be observed or performed
hereunder, but will at all times assist in the carrying out of the provisions of
this Agreement; provided that nothing contained herein shall prevent VGAMT from
entering into an agreement or taking other action in connection with a Liquidity
Event and provided further that nothing contained herein shall prevent Gartmore
or VGAMT from paying dividends to its shareholders or unitholders, as the case
may be, at any time from the date hereof, provided, solely with respect to the
payment of dividends, all outstanding obligations of VGAMT under the cooperation
agreement or similar agreement, if any, between VCI and VGAMT, have been
discharged or VCI has otherwise agreed in writing.

                                       7
<PAGE>   8

         3.4   NO RIGHTS AS UNITHOLDER. Nothing contained in this Agreement
shall be construed as conferring upon VCI any rights as a unitholder of VGAMT,
and nothing shall be construed as imposing any liabilities of VCI as a
unitholder of VGAMT. It is understood that following exercise of any vested
portion of this Option and receipt of any related Trust Units, VCI will have the
rights and liabilities of a unitholder of VGAMT with respect to such Trust
Units.

                         ARTICLE IV - DISPUTE RESOLUTION

         4.1   ALTERNATIVE DISPUTE RESOLUTION.

               (a) In the event that the parties are unable to resolve any
dispute regarding the amount of the Exercise Price or with respect to the amount
of delivered Synergy Payments set forth in a Preliminary Synergy Report, such
dispute shall be referred to the accounting firm providing annual audit services
to Nationwide Mutual for the most recently completed accounting period (or, if
such accounting firm is unable to provide services with respect to a dispute,
another mutually agreed accounting firm) (the "Accountant"). If the dispute is
referred to the Accountant, on the fifth Business Day after the such referral,
each party shall submit its position regarding the dispute to the Accountant by
making a written submission to the Accountant and to the other party, which
written submission shall include the submitting party's position regarding such
dispute, including supporting documentation. Each party shall then have two (2)
Business Days following the date of the initial submissions to submit to the
Accountant and to the other party further documentation of its position on the
issues(s); provided, however, that if a party fails to make a timely and
complete submission to the Accountant, such party shall be deemed to have
conceded the dispute. Upon receipt of final submissions from both parties with
respect to a given dispute, the Accountant shall have seven (7) Business Days in
which to resolve the dispute. The decision of the Accountant shall be final and
binding upon the parties, and each party shall bear its own costs plus one-half
(1/2) of the costs of the Accountant.

               (b) VGAMT shall not be obligated to issue any Option Units to VCI
pursuant to a Notice of Exercise if the Exercise Price for such Option Units or
vested status of the related portion of the Option is being determined in
accordance with this Article IV. VGAMT shall issue such Option Units within five
(5) Business Days of the date of the decision of the Accountant.

                                       8
<PAGE>   9

                           ARTICLE V - MISCELLANEOUS

         5.1 NOTICES. Where this Agreement provides for notice of any event,
such notice shall be given, unless otherwise herein expressly provided, in
writing and may be personally served, telecopied or sent by nationally
recognized overnight courier service and shall be deemed to have been given when
delivered in person or otherwise upon receipt. For purposes hereof, the address
of the parties hereto (until delivery of a notice of change thereof delivered in
accordance herewith) shall be as set forth below:

              If to VGAMT, to:

                    Villanova Global Asset Management Trust
                    1200 River Road
                    Conshohocken, PA  19428
                    Attention: Paul J. Hondros
                               President and Chief Executive Officer

              with a copy to its Managing Unitholder:

                    Nationwide Global Holdings, Inc.
                    One Nationwide Plaza
                    Columbus, OH  43215
                    Attention: Milton E. Fullen
                               Associate Vice President and Director-Finance

              If to VCI, to:

                    Villanova Capital, Inc.
                    1200 River Road
                    Conshohocken, PA  19428
                    Attention: Gregory J. Nowak
                               Executive Vice President - Mergers & Acquisitions

         5.2 GOVERNING LAW. This Agreement shall governed by and construed in
accordance with the internal laws of the State of Delaware without giving effect
to conflicts of laws principles.

         5.3 AMENDMENTS AND MODIFICATIONS. This Agreement may be amended and
modified only by written agreement of the parties hereto.

         5.4 BINDING EFFECT; SUCCESSORS AND ASSIGNS. This Agreement shall be
binding upon and inure to the benefit of the parties and their respective
successors, permitted assigns and legal representatives. This Agreement may not
be assigned or otherwise transferred, in whole or in part, by either party
hereto without the prior written consent of the other party.

                                       9
<PAGE>   10

         5.5 COUNTERPARTS. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one and the same agreement, it being understood that
all parties need not sign the same counterpart.

         5.6 HEADINGS. The headings in this Agreement are for reference only,
and shall not affect the interpretation of this Agreement.

         5.7 ENTIRE AGREEMENT. This Agreement and its exhibits constitute the
entire agreement among the parties hereto relating to the subject matter hereof
and supercede all prior agreements, understandings, negotiations and
discussions, whether oral or written of the parties.

         5.8 SEVERABILITY. If any term, provision, covenant or restriction of
this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the parties hereto direct that such court interpret and apply
the remainder of this Agreement in the manner that it determines most closely
effectuates their intent in entering into this Agreement, and in doing so
particularly take into account the relative importance of the term, provision,
covenant or restriction being held invalid, void or unenforceable.

                                       10
<PAGE>   11

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date first set forth above.

                                 VILLANOVA GLOBAL ASSET MANAGEMENT TRUST

                                 By:      NATIONWIDE GLOBAL HOLDINGS, INC.,
                                          its Managing Unitholder

                                          By:  ________________________________
                                               Name:
                                               Title:

                                 VILLANOVA CAPITAL, INC.

                                 By:      _____________________________________
                                          Name:
                                          Title:

                                       11
<PAGE>   12

<TABLE>
<CAPTION>

                                                                                         EXHIBIT A

                                       OPTION VESTING SCHEDULE

--------------------------------------------------------------------------------------------------------------------
PRESENT      OPTION          SPECIFIED     YEAR 1        YEAR 1       YEAR 2      YEAR 2      YEAR 3     YEAR 3
VESTED       TRANCHE         TRANCHE       TARGET        CUMULATIVE   TARGET      CUMULATIVE  TARGET     CUMULATIVE
OF TRUST                     PERCENTAGE    REVENUES      TARGET       REVENUES    TARGET      REVENUES   TARGET
UNITS OF                     OF TRANCHE    BY OPTION     REVENUES*    BY OPTION   REVENUES    BY OPTION  REVENUES*
VGAMT                                      TRANCHE*                   TRANCHE*                TRANCHE*
--------------------------------------------------------------------------------------------------------------------

<S>          <C>             <C>            <C>           <C>          <C>         <C>        <C>         <C>
   11.11%    1st Tranche     11.11%         $6,886        $6,886       $7,850      $7,850     $8,949      $8,949
--------------------------------------------------------------------------------------------------------------------

   22.22%    2nd Tranche     11.11%         $6,886       $13,772       $7,850     $15,700     $8,949     $17,898
--------------------------------------------------------------------------------------------------------------------

   27.78%    3rd Tranche      5.56%         $3,443       $17,215       $3,925     $19,625     $4,474     $22,372
--------------------------------------------------------------------------------------------------------------------

   33.33%    4th Tranche      5.55%         $3,443       $20,658       $3,925     $23,550     $4,474     $25,846
--------------------------------------------------------------------------------------------------------------------
<CAPTION>
-------------------------------------------------------------------------------------------
PRESENT      OPTION          SPECIFIED       YEAR 4     YEAR 4      YEAR 5      YEAR 5
VESTED       TRANCHE         TRANCHE         TARGET     CUMULATIVE  TARGET      CUMULATIVE
OF TRUST                     PERCENTAGE      REVENUES   TARGET      REVENUES    TARGET
UNITS OF                     OF TRANCHE      BY OPTION  REVENUES*   BY OPTION   REVENUES*
VGAMT                                        TRANCHE*               TRANCHE*
-------------------------------------------------------------------------------------------

<S>          <C>             <C>             <C>         <C>         <C>         <C>
   11.11%    1st Tranche     11.11%          $10,202     $10,202     $11,630     $11,630
-------------------------------------------------------------------------------------------

   22.22%    2nd Tranche     11.11%          $10,202     $20,404     $11,630     $23,260
-------------------------------------------------------------------------------------------

   27.78%    3rd Tranche      5.56%           $5,101     $25,505      $5,815     $29,075
-------------------------------------------------------------------------------------------

   33.33%    4th Tranche      5.55%           $5,101     $30,606      $5,815     $34,890
-------------------------------------------------------------------------------------------
</TABLE>

    * U.S. Dollars in thousands

                                       12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}]]