Document:

Unassociated Document

    
      

       

       

       

       

      July 8,
2009

       

      Mototech,
Inc.

      No. 9,
Park, Avenue II

      Science-Based
Industrial Park

      Hsin-Chu,
Taiwan, R.O.C.

      Attention:
K.Y. Chou, General Manager

       

      Dear Mr.
Chou:

       

      The
purpose of this letter (the “Letter”) is to set
out certain agreements between Mototech, Inc. (“Mototech”) and
WorldGate Communications, Inc. (“WGAT”, and together
with Mototech, the “Parties”) to settle
all of the WGAT Persons’ payment obligations to the Mototech Persons under the
Current Agreements.   Certain capitalized terms used in this
Letter but not defined at first use have the meanings ascribed to them in
paragraph 12 of this Letter.

      

      For good
and valuable consideration, receipt of which is hereby acknowledged, and
intending to be legally bound, the Parties hereby agree as follows:

      

      1.      Payments by WGAT to
Mototech.

       

      (a)                 On
or prior to July 20, 2009, WGAT shall pay to Mototech fifty thousand dollars
($50,000), in cash by wire transfer of immediately available funds to the
account or accounts designated by Mototech in accordance with this
Letter.

       

      (b)                 On
or prior to August 30, 2009, WGAT shall pay to Mototech one hundred thousand
dollars ($100,000), in cash by wire transfer of immediately available funds to
the account or accounts designated by Mototech in accordance with this
Letter.

       

      (c)                 On
or prior to September 30, 2009, WGAT shall pay to Mototech one hundred fifty
thousand dollars ($150,000), in cash by wire transfer of immediately available
funds to the account or accounts designated by Mototech in accordance with this
Letter.

       

      (d)                 On
or prior to October 30, 2009, WGAT shall pay to Mototech three hundred thousand
dollars ($300,000), in cash by wire transfer of immediately available funds to
the account or accounts designated by Mototech in accordance with this
Letter.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      July 8, 2009

      Page 2

       

      (e)                 On
or prior to the date seven (7) days after the date of this Letter, WGAT shall
issue to Mototech the Settlement Shares, which shall be subject to the
restrictions contained in paragraph 6 of this Letter.

       

      (f)                 On
or prior to the date seven (7) days after the date of this Letter, WGAT shall
issue to Mototech an unregistered warrant to purchase 1,000,000 shares of common
stock, par value $0.01, of WGAT, in the form attached as Exhibit B to this
Letter (the “Warrant”).

       

      2.      Mototech Wire
Instructions.  For purposes of any payments to be made to
Mototech pursuant to this Letter, unless Mototech otherwise notifies WGAT in
writing seven (7) days in advance of any payment due date, all wire transfers to
Mototech of immediately available funds contemplated by this Letter shall be
made to the following account:

       

      Beneficial’s
Bank: First Commercial Bank H.S.I.P. Branch

      Beneficial’s
Bank Address: No. 273, SEC.1, Guang-Fu Rd., Hsin Chu ,Taiwan R.O.C.

      BENEFICIARY:
Mototech Inc..

      Account
No.: 30340003683

      Swift
Code: FCBKTWTPXXX

       

      3.      Termination of WGAT
Obligations under the Current Agreements.  Immediately upon
execution of this Letter by the Parties, (a) all obligations of the WGAT Persons
to the Mototech Persons under each of the Current Agreements shall be deemed
terminated, void and of no further force and effect, and the WGAT Persons shall
not have any further liabilities or obligations to the Mototech Persons under
the Current Agreements whatsoever and (b) the Mototech Persons shall release the
WGAT Persons from, and shall credit the account of the WGAT Persons with respect
to, all amounts due or owing to the Mototech Persons under the Current
Agreements.  Other than as contemplated by the prior sentence, all
rights and obligations of the WGAT Persons and the Mototech Persons under the
Current Agreements shall remain in full force and effect.

       

      4.      Representations and
Warranties of the Parties.  Each Party represents and warrants
to the other Party that the statements contained in this paragraph 4 of this
Letter are true and correct.

       

      (a)                 Status.  Such
Party is an entity validly existing and in good standing under the laws of the
jurisdiction in which it was formed.

       

      (b)                 Authorization. Such
Party has the requisite power and authority to execute and deliver this Letter
and to perform the transactions to be performed by it hereunder.  Such
execution, delivery and performance shall have been duly authorized by all
necessary action on the part of such Party.  This Letter constitutes
the valid and binding obligation of such Party, enforceable against such Party
in accordance with its terms.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        July 8, 2009

        Page 3

      

       

      (c)                 Consents and
Approvals.  Neither the execution and delivery by such Party of
this Letter, nor the performance of the transactions performed hereunder by such
Party, will require any filing, consent, renegotiation or approval, or conflict
with, result in any breach of or constitute a default under (i) any provision of
any law, statute, rule or regulation, or any ruling, writ, injunction, order,
judgment or decree of any court order or other governmental authority to which
such Party is subject, (ii) the constituent documents of such Party, or (iii)
any contract, governmental permit or other document to which such Party is
subject.

       

      5.      Securities
Representations.  Mototech represents and warrants to the WGAT
Persons that the statements contained in this paragraph 5 of this Letter are
true and correct.

       

      (a)                 Mototech
understands that the Settlement Shares, the Warrant and any shares issued upon
exercise of the Warrant (the “Warrant Shares”) have
not been registered under the Securities Act of 1933, as amended (the “Securities
Act”).  Mototech must bear the economic risk of an investment
in the Settlement Shares, the Warrant and the Warrant Shares indefinitely unless
such securities are registered pursuant to the Securities Act or an exemption
from registration is available.  Mototech understands that WGAT has no
present intention of registering the Settlement Shares, the Warrant or the
Warrant Shares.  Mototech also understands that there is no assurance
that any exemption from registration under the Securities Act will be available
and that, even if available, such exemption may not allow the Mototech to
transfer all or any portion of the Settlement Shares, the Warrant or the Warrant
Shares under the circumstances, in the amounts or at the times the Mototech
might propose.  Mototech has been advised of or is aware of the
provisions of Rule 144 promulgated under the Securities Act as in effect from
time to time, which permits limited resale of securities purchased in a private
placement subject to the satisfaction of certain conditions, including, without
limitation, the availability of certain current public information about WGAT,
the resale occurring following the required holding period under Rule 144 and
the number of securities being sold during any three month period not exceeding
specified limitations.

       

      (b)                 Mototech
has substantial experience in evaluating and investing in private placement
transactions of securities similar to WGAT so that Mototech is capable of
evaluating the merits and risks of its investment in WGAT and has the capacity
to protect its own interests.  Mototech understands and agrees that
the Settlement Shares and the Warrant are being offered and will be sold in
transactions in compliance with or exempt from the registration requirements of
the Securities Act based in part upon Mototech’s representations contained in
this Letter and, as a result, that the Settlement Shares, the Warrant and the
Warrant Shares may only be transferred if such securities are registered under
the Securities Act or if the transfer is exempt from registration.

       

      (c)                 The
Settlement Shares and the Warrant are being acquired for Mototech’s own account
and not with the view to, or for resale in connection with, any distribution
other than resales made in compliance with the Securities
Act.  Mototech is an “accredited investor” within the meaning of
Regulation D, Rule 501(a), promulgated by the Securities and Exchange
Commission.  Mototech represents that by reason of its or its
management’s business or financial experience, Mototech has the capacity to
protect its own interests in connection with the transactions contemplated in
this Letter. Further, Mototech is aware of no publication of any advertisement
in connection with the transactions contemplated in this
Letter.    Mototech acknowledges that its investment in WGAT
is highly speculative and entails a substantial degree of risk and Mototech is
in a position to lose the entire amount of such investment.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        July 8, 2009

        Page 4

      

       

      (d)                 Mototech
acknowledges that it has received any information that it has requested for
Mototech to make an investment decision. Mototech has had an opportunity to
discuss WGAT’s business, management and financial affairs with WGAT and their
respective representatives and has had the opportunity to review WGAT’s
operations and facilities.  Mototech has also had the opportunity to
ask questions of and receive answers from WGAT and its management regarding the
terms and conditions of this investment.  Except as expressly set
forth in this Letter, Mototech acknowledges and agrees that no WGAT Person has
made any other representation or warranty regarding the operations, business,
prospects or condition (financial or otherwise) of any WGAT Person.

       

      (e)                 Mototech
has had full opportunity to seek the advice of independent counsel respecting
the transactions contemplated by this Letter and the tax risks and implications
thereof.  Mototech maintains its domicile (and is not a transient or
temporary resident) at the address shown in paragraph 11 of Exhibit C to this
Letter.  There are no claims for brokerage commission, finders’ fees
or similar compensation in connection with the transactions contemplated by this
Letter or related documents based on any arrangement or agreement binding upon
any Mototech Person.

       

      6.      Restrictions on Settlement
Shares.

       

      (a)                 Mototech
acknowledges and agrees that the Settlement Shares shall not be offered for
sale, sold, transferred, pledged or hypothecated by any Mototech Person prior to
the date that is nine (9) months after the issuance of the Settlement
Shares.  When and if Mototech is permitted to offer for sale, sell,
transfer, pledge or hypothecate any WGAT Shares, Mototech acknowledges and
agrees that Mototech will not offer for sale, sell, transfer, pledge or
hypothecate more than 25,000 WGAT Shares in any single day.

       

      (b)                 Mototech
acknowledges and agrees (i) that neither the Warrant nor any WGAT Shares shall
be offered for sale, sold, transferred, pledged or hypothecated by any Mototech
Person at any time that any Mototech Person is in possession of material
non-public information regarding any WGAT Person and (ii) that the Settlement
Shares, the Warrant and the Warrant Shares may only be offered for sale, sold,
transferred, pledged or hypothecated in accordance with any restrictive legends
applicable to such securities.

       

      (c)                 Mototech
acknowledges and agrees that the certificates representing the Settlement
Shares, the Warrant and the Warrant Shares shall be issued in the name of
Mototech and, unless Mototech otherwise notifies WGAT in writing seven (7) days
in advance of any delivery date, such certificates shall be delivered to
Mototech at its address provided in this Letter.  Mototech
acknowledges and agrees that WGAT shall effect delivery of the Settlement Shares
and the Warrant Shares by delivering to Mototech or its nominee a physical
certificate representing such Settlement Shares or Warrant Shares, as
applicable, and that such certificate representing such Settlement Shares or
Warrant Shares shall contain the following restrictive legend:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        July 8, 2009

        Page 5

      

       

       

      THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN AND WILL NOT BE REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY
STATE SECURITIES LAW, AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED,
PLEDGED OR HYPOTHECATED UNLESS A REGISTRATION STATEMENT UNDER THE SECURITIES ACT
AND APPLICABLE STATE SECURITIES LAWS SHALL BE EFFECTIVE WITH RESPECT THERETO, OR
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS IS AVAILABLE IN CONNECTION WITH SUCH OFFER, SALE, TRANSFER,
PLEDGE OR HYPOTHECATION AND THE CORPORATION RECEIVES AN OPINION OF COUNSEL (BOTH
SUCH OPINION AND SUCH COUSEL BEING REASONABLY ACCEPTABLE TO THE CORPORATION) TO
SUCH EFFECT.

       

      7.      Certification of Review and
Drafting.  Each Party certifies that it has read the terms of
this Letter, that it understands the terms of this Letter, and that it is
entering into this Letter of its own volition.  Each Party warrants
and represents that it has received independent legal advice from its attorney
regarding its decision with respect to the advisability of making and entering
into this Letter.  Each Party and its counsel has reviewed this Letter
and has participated in its drafting and, accordingly, no Party shall attempt to
invoke the normal rule of construction to the effect that ambiguities are to be
resolved against the drafting party in any interpretation of this
Letter.

       

      8.      Expenses.  Except
as otherwise explicitly provided in this Letter (including the Exhibits), each
of the Parties shall bear all of their own expenses in connection with the
negotiation and closing of this Letter and the transactions contemplated
hereby.

       

      9.      Cooperation.  Each
Party agrees to execute any and all documents reasonably requested by the other
Party in order to give effect to the agreements concluded or contained in this
Letter (including the Exhibits).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        July 8, 2009

        Page 6

      

       

       

      10.                 Non-Disclosure,
Confidentiality and Other Provisions.  The Parties agree that
the provisions attached to this Letter as Exhibit C are hereby
incorporated by reference and made a part of this Letter.

       

      11.                 Release.

       

      (a)                 Mototech,
for itself and for each Mototech Person, hereby forever fully, irrevocably and
unconditionally releases and discharges the WGAT Persons from any and all Claims
which any Mototech Person can, shall or may have against any WGAT Person
(collectively, the “Mototech Released
Claims”), except that the Mototech Released Claims shall not include the
obligations of WGAT under this Letter.  Mototech, for itself and for
each Mototech Person, hereby irrevocably agrees to refrain from directly or
indirectly asserting any claim or demand or commencing (or causing to be
commenced) any suit, action, or proceeding of any kind, in any court or before
any tribunal, against any WGAT Person based upon any Mototech Released
Claim.  It is understood and agreed by the Parties that the release in
this paragraph 11(a) of this Letter is a general release of the WGAT Persons,
and it is to be construed in the broadest possible manner consistent with
applicable law.   Mototech shall take all such actions as will
ensure that each Mototech Person complies with the terms of this
Letter.  Mototech will be responsible for any breach of this Letter by
any Mototech Person.

       

      (b)                 Mototech
represents and warrants that the Mototech Persons are the exclusive owners of
the WGAT Released Claims and that, as of the date of its full execution of this
Letter, none of the Mototech Persons have assigned, sold, transferred or
otherwise conveyed those claims to any other persons or
entities.  Mototech represents and warrants that, as of the date of
their execution of this Letter, none of the Mototech Persons have filed with any
court, tribunal or alternative dispute resolution organization any claim,
demand, action, joinder or cause of action against any WGAT
Person.  If this warranty and representation should later be found to
be untrue, then, in addition to any other relief or damages to which any WGAT
Person may be entitled, Mototech shall, at no cost or expense to any WGAT
Person, immediately file all documents and take all action necessary to have the
claim, action or cause of action dismissed or discontinued with
prejudice.

       

      
        	
                 
      

              	
                12.

              	
                Definitions.  For
      purposes of this Letter,

              

      

       

      (a)                 “Claims” mean actions,
suits, claims, demands, debts, dues, complaints, sums of money, accounts,
reckonings, bonds, bills, specialities, covenants, contracts (whether oral or
written, express or implied from any source), agreements, warranties,
controversies, promises, judgments, extents, executions, variances, trespasses,
liabilities or obligations of any kind whatsoever, in law or equity, and causes
of action of every kind and nature, or otherwise (including, without limitation,
claims for damages, costs, expenses, and attorneys’, brokers’ and accountants’
fees and expenses) arising out of or related, directly or indirectly, to events,
facts, conditions or circumstances existing or arising from the beginning of the
world, through and until the day of date of this Letter, whether arising in law,
admiralty, or equity or by statute, by regulation, or otherwise, whether known
or unknown, suspected or unsuspected, unanticipated as well as anticipated,
groundless or otherwise, and that now exist or may hereafter accrue based on
matters now unknown as well as known, including, without limitation, any and all
claims and demands under, related to, arising from, or in any way connected with
any payment obligations of the WGAT Persons under the Current
Agreements.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        July 8, 2009

        Page 7

      

       

       

      (b)                 “Current Agreements”
mean all agreements, contracts, licenses, leases, commitments, arrangements or
understandings, written or oral, including, without limitation, any sales orders
or purchase orders, to which any WGAT Person and any Mototech Person is a party,
dated prior to the date of this Letter, including, without limitation, the
agreements listed on Exhibit A of this
Letter.

       

      (c)                 “Mototech Persons”
mean, collectively, jointly and severally, Mototech and its Related
Persons.

       

      (d)                 “Related Persons”
means, collectively, jointly and severally, a Party’s predecessors, successors,
affiliates, subsidiaries (direct and indirect), successors-in-interest,
executors, heirs, administrators, receivers, trustees, assigns, assignees and
its and their insurers, officers, directors, members (direct and indirect),
partners (direct and indirect), owners, past and present shareholders, past and
present stockholders, direct or indirect subsidiaries, employees, agents,
attorneys, lenders (and agents related thereto), financial and other advisors,
accountants, consultants and/or representatives.

       

      (e)                 “Settlement Shares”
means 3,200,000 unregistered WGAT Shares.

       

      (f)                 “WGAT Persons” mean,
collectively, jointly and severally, WGAT and its Related Persons.

       

      (g)                 “WGAT Shares” means
shares of common stock, par value $0.01, of WGAT.

       

       

       [Signature Page
Follows]

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

       

      Please
indicate your agreement to the terms of this Letter by executing the enclosed
copy of this Letter.  This Letter will be null and void if it has not
been executed by Mototech and returned to WGAT before 5:00 p.m., New York time,
on July 9, 2009.

       

      

       

      
        
          
            
              	 
      	
                      WorldGate
      Communications, Inc.

                    
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                      By:

                    	      
                      /s/
      Christopher V.
      Vitale                                  
      

                    
	 
      	 
      	
                      Name:

                    	
                      Christopher
      V. Vitale

                    
	 
      	 
      	
                      Title:

                    	
                      Senior
      Vice President, Legal and

                      Regulatory,
      General Counsel and

                      Secretary

                    

            

          

        

      

      

       

      
        
          
            
              	
                      Acknowledged
      and agreed to as of

                    
	
                      this
      8th day of July, 2009:

                       

                    
	
                      Mototech,
      Inc.

                    
	 
      	 
      
	 
      	 
      
	
                      By:

                    	/s/ K.Y.
      Chou                               
      
	 
      	
                      Name:
      K.Y. Chou

                    
	 
      	
                      Title:
      General Manager

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
 

       

      EXHIBIT A OF
LETTER

       

      
        	
                 
      

              	
                1.

              	
                Reseller
      Agreement, dated as of March 6, 2006, between Ojo Service, LLC and
      Mototech, Inc.

              

      

       

      
        	
                 
      

              	
                2.

              	
                Ojo
      Service Affiliation Agreement, dated November 24, 2005, between WorldGate
      Service, Inc. and Mototech, Inc.

              

      

       

      
        	
                 
      

              	
                3.

              	
                Manufacturing
      Services Agreement, dated as of July 28, 2004, between WorldGate Service,
      Inc. and Mototech, Inc.

              

      

       

      
        	
                 
      

              	
                4.

              	
                Manufacturing
      Agreement, dated September 11, 2003, between WorldGate Communications,
      Inc. and Mototech, Inc.

              

      

       

      
        	
                 
      

              	
                5.

              	
                Non-Disclosure
      Agreement, dated April 9, 2003, between WorldGate Communications, Inc. and
      Mototech, Inc.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      EXHIBIT B OF
LETTER

       

      [Form of
Warrant]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      EXHIBIT C OF
LETTER

       

      1.      Definitions.  For
purposes of this Letter, “Confidential
Information” means (i) any and all information concerning either Party or
its Related Persons which has been or is, in the future, furnished by such Party
(the “Provider”) or any of
its Related Persons to the other Party (the “Recipient”) or any of
its Related Persons, orally or in writing (whatever the form or storage medium),
including, without limitation, information concerning its Related Persons,
businesses, operations, markets, products, product specifications, designs,
documentation, technical data, trade secrets, processes, computer programs (in
object or source code form), know-how, research and development, financial
condition, results of operations, projections, strategies, marketing
information, contracts, customers, employees and prospects, and (ii) any and all
notes, analyses, compilations, studies or other documents prepared by the
Recipient or any of its Related Persons containing or reflecting any
Confidential Information described in clause (i). The term “Confidential
Information” does not include information which the Recipient demonstrates: (A)
was or becomes generally available to or known by the public (other than as a
result of a disclosure directly or indirectly by the Recipient or any of its
Related Persons who received such information pursuant hereto); or (B) was or
becomes available to the Recipient or any of its Related Persons on a
non-confidential basis, prior to its disclosure to the Recipient by the Provider
or its Related Persons; provided that the source of
such information is not otherwise known by the Recipient after reasonable
investigation to be bound by a confidentiality agreement with the Provider or
any of its Related Persons, or to be under a contractual, legal, fiduciary or
other obligation to the Provider or any of its Related Persons not to transmit
the information to the Recipient.

       

      2.      Use of Confidential
Information.

       

      (a)                 Any
Confidential Information provided to the Recipient hereunder will be used by
such Party and its Related Persons solely for the purpose of performing
their responsibilities under this Letter and to provide service and support to
the WGAT Persons as requested and shall not be used by such Party for any other
purpose, including, without limitation, use in any way detrimental to the other
Party. The Recipient shall maintain the strict confidentiality of any
Confidential Information provided to it or any of its Related Persons by
the other Party or any of its Related Persons and shall not disclose any
part of it to any other person; provided that (i) it may disclose any such
Confidential Information or portions thereof to its Related Persons subject
at all times to paragraph 3 of this Exhibit C, and (ii) it may disclose any such
Confidential Information in accordance with paragraph 4 of this Exhibit
C.  The Recipient shall treat the Confidential Information with the
same degree of care as it would its own, but in no event with less than
reasonable care.

       

      (b)                 The
Provider shall retain the entire right, interest and title to its Confidential
Information.  No license under any patent, copyright, trademark, other
intellectual property right or any application therefor, is hereby granted or
implied by the provision of Confidential Information to the
Recipient.  The Recipient shall not alter or obliterate any trademark
or any other proprietary mark or notice thereof of the Provider on any copy of
the Confidential Information, and shall reproduce any such mark or notice on all
copies of the Confidential Information.  In the event product samples
are furnished hereunder, such samples shall only be use as reasonably required
in accordance with this Letter, and the Recipient shall not de-compile,
disassemble or otherwise attempt to reverse engineer the samples.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      3.      Related Persons. Each
Party may disclose Confidential Information to those of its Related
Persons who have a reasonable need to know such information in order to
assist the Recipient in performing their responsibilities under this Letter;
provided that, prior to any such disclosure, (a) the Recipient informs any such
Related Person of the terms of this Letter and (b) such Related
Person agrees to preserve the confidentiality of the Confidential
Information.  Each Party shall take all such actions as will ensure
that its Related Persons comply with the terms of this Letter. Each Party will
be responsible for any breach of this Letter by any of its Related
Persons.

       

      4.      Subpoenas,
etc.  If the Recipient or any of its Related Persons becomes
required by law or applicable legal process to disclose any Confidential
Information furnished by the Provider, the Recipient shall provide the Provider
with prompt prior written notice of such requirement and the terms of and
circumstances surrounding such requirement so that such Provider may seek an
appropriate protective order or other remedy, or waive compliance with the terms
of this Letter, and the Recipient shall provide such cooperation with respect to
obtaining a protective order or other remedy as the Provider shall reasonably
request.  If, in the absence of protective order or other remedy or
the receipt of a waiver by Provider, the Recipient or any of its Related Persons
are nonetheless, in the written opinion of its counsel, reasonably acceptable to
the Provider, legally compelled to disclose Confidential Information to any
tribunal or else stand liable for contempt or suffer other censure or penalty,
the Recipient or its Related Persons may, without liability hereunder, disclose
to such tribunal only that portion of the Confidential Information which such
counsel advises the Recipient is legally required to be disclosed; provided that, the Recipient
exercises its best efforts to obtain an appropriate protective order or other
reasonable assurance that confidential treatment will be accorded such
Confidential Information by such tribunal.

       

      5.      Effect of Termination on
Confidential Information.  At the request of either Party, the
Recipient shall immediately (a) cease using the Confidential Information, (b)
return to the Provider any Confidential Information furnished by the Provider or
any of its Related Persons and (c) destroy any and all copies of such
Confidential Information and any and all notes, analyses, compilations, studies
or other documents prepared by the Recipient or any of its Related Persons
containing or reflecting any Confidential Information.  Any
destruction required pursuant to this paragraph 5 of this Exhibit C shall, upon
request of the Provider, be certified in writing to the Provider by an
authorized officer supervising such destruction.  Notwithstanding the
return or destruction of the Confidential Information, each Party and its
Related Persons will continue to be bound by its obligations of confidentiality
and other obligations hereunder.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      6.      Non-Disclosure.  Without
the prior written consent of the other Party, each Party will not, and will
cause its Related Persons not to, disclose to any person (a) that any Party has
requested or received Confidential Information from the other Party or (b) the
terms, conditions or other facts concerning this Letter or the rights and
obligations of the Parties under this Letter, including, without limitation, the
status thereof; provided that, either Party
may make such disclosure if required by law, accounting rule or the rules of any
securities exchange or market. The term “person” as used in this Letter shall be
broadly interpreted to include, without limitation, the media and any
corporation, partnership, group, individual or other entity.

       

      7.      Accuracy of
Materials. Neither Party makes any representation or warranty, express or
implied, as to the accuracy or completeness of the Confidential Information
provided or to be provided by it or any of its Related Persons.  No
Party nor any of its Related Persons will have any liability to the other Party
or any other person resulting from any action taken or any inaction occurring in
reliance on any Confidential Information provided by the other Party or any of
its Related Persons or the contents thereof.

       

      8.      Remedies. Each Party
agrees to indemnify and hold the other Party and its stockholders harmless from
any damages, loss, liabilities, diminution in value of property, costs and
expenses (including, without limitation, attorney fees and expenses) arising out
of any breach of this Letter by such Party or its Related
Persons.   Each Party acknowledges that money damages are an
inadequate remedy for breach of the confidentiality and nonsolicitation
provisions of this Letter because of the difficulty of ascertaining the amount
of damage that will be suffered in the event that this Letter is
breached.  Therefore, each Party shall be entitled to equitable
relief, including, without limitation, an injunction and specific performance,
in the event of any breach of the confidentiality and nonsolicitation provisions
of this Letter by the other Party or any of its Related Persons, in addition to
all other remedies available to such Party at law or in equity.

       

      9.      Nonsolicitation. In
consideration of Confidential Information being furnished to Mototech by WGAT,
Mototech hereby agrees that, from the date of the Letter until two years after
the date of termination of all agreements to which any WGAT Person and any
Mototech Person is a party, without obtaining the prior written consent of WGAT,
Mototech will not, nor will any of its Related Persons, employ or solicit for
employment any employee of any WGAT Person, or induce any employee of any WGAT
Person to terminate such employee’s employment with such WGAT Person; provided that, advertisements
by way of newspapers, magazines, trade publications, internet or general media
or non-directed executive search shall not constitute a violation of this
provision.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      10.                 Compliance with
Law.  Recipient agrees that it will not indirectly (a) export
any technical Confidential Information acquired under this Letter or any
commodities using such Confidential Information to any country to which the
United States government forbids export or, at the time of export, requires an
export license or approval, without first obtaining such license or approval, or
(b) use any such Confidential Information to engage in or facilitate the trading
of any securities, in either case, in violation of any prevailing laws and
regulations in any applicable jurisdiction.  Each Party acknowledges
that such Party and its Related Persons are aware (i) that the United States
securities laws prohibit any person who has material non-public information
about a company from purchasing or selling securities of such company, or from
communicating such information to any other person under circumstances, which it
is reasonably foreseeable that such person is likely to purchase or sell such
securities, and (ii) that each of WGAT and the Accton Group (the parent company
of Mototech) is a publicly traded company and that some of the information
received by Recipient and its Related Persons may be material non-public
information that would prohibit such Recipient and its Related Persons (A) from
entering into transactions with respect to the securities of WGAT or the Accton
Group, as applicable, until such material non-public information is fully
disseminated in the public domain and (B) from communicating such information to
any other person under circumstances in which it is reasonably foreseeable that
such person is likely to purchase or sell such securities

       

      11.                 Notices.  Notices
given pursuant to this Letter shall be in writing and shall be deemed to have
been duly given on the date established by the sender as having been delivered
personally, upon confirmation of receipt if sent by facsimile, on the date
delivered by a private courier as established by the sender by evidence obtained
from the courier, or on the third day after the date mailed, if mailed by
certified or registered mail, return receipt requested, postage prepaid, to the
Party being notified at its address or facsimile number set forth below or such
other address as the addressee may subsequently notify the other Party of in
writing:

       

      
        	 
      	
                If
      to Mototech:

              	
                    
      

                 

              
	 
      	 
      	
                No.9,
      Park, Avenue II

              
	 
      	 
      	
                Science-Based
      Industrial Park

              
	 
      	 
      	
                Hsin-Chu,
      Taiwan, R.O.C.

              
	 
      	 
      	
                Attention:  General
      Manager

              
	 
      	 
      	
                Facsimile:
      00886-3-577-0978

              
	 
      	 
      	 
      
	 
      	
                If
      to WGAT:

              	
                    
      

                 

              
	 
      	 
      	
                3190
      Tremont Avenue

              
	 
      	 
      	
                Trevose,
      Pennsylvania 19053

              
	 
      	 
      	
                Attn:
      General Counsel

              
	 
      	 
      	
                Facsimile:
      215-354-1049

              

      

      

      12.                 Miscellaneous.

       

      (a)                 No
failure or delay by any Party in exercising any right, power or privilege
hereunder will operate as a waiver thereof, nor will any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege hereunder.  Each representation
or warranty of the Parties shall survive the closing of the transactions
contemplated by this Letter.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      (b)                 This
Letter embodies the entire agreement and understanding of the Parties with
respect to the subject matter hereof and supersedes all prior discussions,
negotiations, agreements and understandings among the Parties with respect to
the subject matter hereof.  This Letter may be amended, and any
provisions hereof may be waived, only by a writing signed by the
Parties.

       

      (c)                 This
Letter shall be governed by and construed in accordance with the laws of the
Commonwealth of Pennsylvania, without giving effect to any choice of law or
conflicts of laws provisions or rule of any jurisdiction that would cause the
substantive laws of any other jurisdiction to apply. Mototech hereby irrevocably
and unconditionally consents to submit to the exclusive jurisdiction of the
courts of either the Court of Common Pleas of Bucks County, Pennsylvania or of
the United States of America located in the Eastern District of Pennsylvania for
any actions, suits or proceedings arising out of or relating to this Letter.
Mototech hereby irrevocably and unconditionally waives any objection to the
laying of venue of any action, suit or proceeding arising out of this Letter, in
the courts of either the Court of Common Pleas of Bucks County, Pennsylvania or
of the United States of America located in the Eastern District of Pennsylvania
and hereby further irrevocably and unconditionally waives and agrees not to
plead or claim in any such court that any such action, suit or proceeding
brought in any such court has been brought in an inconvenient
forum.

       

      (d)                 Neither
Party may assign this Letter or any of its rights hereunder without the written
consent of the other Party.  This Letter shall be binding upon and
inure to the benefit of the Parties and their respective successors and
assigns.

       

      (e)                 If
any portion or provision of this Letter shall to any extent be declared illegal
or unenforceable by a court of competent jurisdiction, then the remainder of
this Letter, or the application of such portion or provision in circumstances
other than those as to which it is so declared illegal or unenforceable, shall
not be affected thereby, and each portion and provision of this Letter shall be
valid and enforceable to the fullest extent permitted by applicable
law.

       

      (f)                 This
Letter may be executed in multiple counterparts, each of which shall be deemed
an original but all of which together shall constitute one and the same
instrument.  This Letter, any and all agreements and instruments
executed and delivered in accordance herewith, along with any amendments hereto
or thereto, to the extent signed and delivered by means of E-mail, a facsimile
machine or other means of electronic transmission, shall be treated in all
manner and respects and for all purposes as an original signature, agreement or
instrument and shall be considered to have the same binding legal effect as if
it were the original signed version thereof delivered in person.

       

      

      [End of Exhibit
C]Unassociated Document

    
      

      THIS
WARRANT HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAW, AND MAY
NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
LAWS SHALL BE EFFECTIVE WITH RESPECT THERETO, OR AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS IS AVAILABLE IN
CONNECTION WITH SUCH OFFER, SALE, TRANSFER, PLEDGE OR HYPOTHECATION AND THE
CORPORATION RECEIVES AN OPINION OF COUNSEL (BOTH SUCH OPINION AND SUCH COUSEL
BEING REASONABLY ACCEPTABLE TO THE CORPORATION) TO SUCH EFFECT.

      

      

      

      
        	
                Warrant
      No. 2009-01

              	
                Date:
      July 8, 2009

              

      

      

      

      WARRANT
TO PURCHASE COMMON STOCK

      OF

      WORLDGATE
COMMMUNICATIONS, INC.

      

      

      This
certifies that, for value received, receipt and sufficiency of which are hereby
acknowledged, Mototech, Inc. (the “Holder”), is entitled, subject
to the terms and conditions set forth below, to purchase from WorldGate
Communications, Inc., a Delaware corporation (the “Company”), 1,000,000 validly
issued, fully paid and nonassessable shares (the “Warrant Shares”) of common
stock of the Company, par value $0.01 per share (the “Common Stock”), subject to
adjustment as provided herein, at a purchase price equal to $0.35 per share (the
“Exercise
Price”).

      

      The term
“Warrant” as used herein
shall mean this Warrant, and any warrants delivered in substitution or exchange
therefor as provided herein.

      

      1.      Term of
Warrant.  Subject to the terms and conditions set forth herein,
this Warrant shall be exercisable, in whole or in part, during the term
commencing on July 8, 2009 and ending at 5:00 P.M. (Philadelphia, Pennsylvania
local time) on the Expiration Date.

       

      The term
“Business Day” shall
mean any day except a Saturday, Sunday or any day on which banking institutions
are authorized or required to close in the city of New York, New
York.

       

      The term
“Expiration Date” shall
mean the earlier of (a) July 8, 2014; provided, however, that in the
event that July 8, 2014 is not a Business Day, the Expiration Date for this
Warrant shall be extended to 5:00 P.M. (Philadelphia, Pennsylvania local time)
on the Business Day following such date, (b) a Change of Control (as defined
below); or (c) the twentieth (20th) day following the Company’s delivery of
notice to the Holder of a Trading Price Termination Event (as defined below);
provided, however, that in the
event that such twentieth (20th) day shall fall on a day that is not a Business
Day (defined below), the Expiration Date for this Warrant shall be extended to
5:00 P.M. (Philadelphia, Pennsylvania local time) on the Business Day following
such date.

       

      
        
          
          

        

        
          -1-

          
            

          

        

        
          
          

        

      

       

       

      The term
“Trading Price Termination
Event” shall mean at any time that the Common Stock is listed for trading
on a national securities exchange, other nationally recognized trading system,
or is quoted on the Pink Sheets LLC or similar over-the-counter service
(including, without limitation, the OTC Bulletin Board), the occurrence of a
period of ten (10) consecutive trading days during which the quoted bid price of
the Common Stock has been greater than a price equal to one hundred fifty
percent (150%) of the Exercise Price.

      

      The term
“Change of Control”
shall mean (i) the acquisition of the Company by another entity by means of any
transaction or series of related transactions (including, without limitation,
any merger, consolidation or other form of reorganization in which outstanding
shares of the Company are exchanged for securities or other consideration
issued, or caused to be issued, by the acquiring entity or its subsidiary, but
excluding any transaction effected primarily for the purpose of changing the
Company’s jurisdiction of incorporation), unless the Company’s stockholders of
record as constituted immediately prior to such transaction or series of related
transactions will, immediately after such transaction or series of related
transactions hold at least a majority of the voting power of the surviving or
acquiring entity; or (ii) a sale of all or substantially all of the assets of
the Company.  In the event of a proposed Change of Control, the
Company shall use its commercially reasonable efforts to give the Holder ten
(10) days prior notice of the proposed closing date of the Change of Control
and, to the extent the Warrant has not been exercised by the closing date of the
Change of Control, then this Warrant shall terminate.

      

      2.      Exercise of
Warrant.

       

      (a)           This
Warrant may be exercised by the Holder, in whole or in part, by (i) the
surrender of this Warrant to the Company, with the Notice of Exercise annexed
hereto duly completed and executed on behalf of the Holder and delivered to the
Company prior to the Expiration Date and (ii) the delivery of payment to the
Company of the Exercise Price for the number of Warrant Shares specified in the
Notice of Exercise.  The Exercise Price shall be payable in cash or
its equivalent, payable by wire transfer of immediately available funds to a
bank account specified by the Company or by certified or bank cashiers’ check in
lawful money of the United States of America.

       

      (b)           The
Company agrees that such Warrant Shares shall be deemed to be issued to the
Holder as the record holder of such Warrant Shares as of the close of business
on the date on which this Warrant shall have been surrendered and payment made
for the Warrant Shares as aforesaid.  A stock certificate or
certificates for the Warrant Shares specified in the Notice of Exercise shall be
delivered to the Holder as promptly as practicable, and in any event within five
days thereafter.  If this Warrant shall have been exercised only in
part, the Company shall, at the time of delivery of the stock certificate or
certificates, deliver to the Holder a new Warrant evidencing the rights to
purchase the remaining Warrant Shares, which new Warrant shall in all other
respects be identical with this Warrant.

       

      3.      No Fractional Shares or
Scrip.  No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant.  In lieu of
any fractional share to which the Holder would otherwise be entitled, the
Company shall make a cash payment equal to the fair market value multiplied by
such fraction or, at the Company’s option, round such fractional share to the
nearest whole share.  The fair market value shall be determined by the
Company’s Board of Directors.

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

       

      4.      Replacement of
Warrant.  On receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in
the case of loss, theft or destruction, on delivery of an indemnity agreement
reasonably satisfactory in form and substance to the Company or, in the case of
mutilation, on surrender and cancellation of this Warrant, the Company at its
expense shall execute and deliver, in lieu of this Warrant, a new warrant of
like tenor and amount.

       

      5.      Rights of
Stockholders.  Subject to the provisions of Sections 6 and 8
hereof, the Holder shall not be entitled to vote or receive dividends or be
deemed the holder of Common Stock or any other securities of the Company that
may at any time be issuable on the exercise hereof for any purpose, nor shall
anything contained herein be construed to confer upon the Holder, as such, any
of the rights of a stockholder of the Company or any right to vote for the
election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any corporate action (whether
upon any recapitalization, issuance of stock, reclassification of stock, change
of par value, or change of stock to no par value, consolidation, merger,
conveyance or otherwise) or to receive notice of meetings, or to receive
dividends or subscription rights or otherwise until the Warrant shall have been
exercised as provided herein.

       

      6.      Adjustments.

       

      (a)           Adjustment for Stock Splits
and Combinations.  If the Company shall effect a subdivision of
the outstanding shares of the Common Stock, then the Exercise Price then in
effect immediately before that subdivision shall be proportionately decreased
and the number of shares of Common Stock issuable upon any exercise of such
warrant shall be proportionally increased, and conversely, if the Company
combines the outstanding shares of the Common Stock into a smaller number of
shares, the Exercise Price then in effect immediately before the combination
shall be proportionately increased and the number of shares of Common Stock
issuable upon any exercise of such warrant shall be proportionally
decreased.

       

      (b)           Adjustment for Certain
Dividends and Distributions.  If the Company makes or fixes a
record date for the determination of holders of Common Stock entitled to
receive, a dividend or other distribution payable in additional shares of Common
Stock, then and in each such event (i) the Exercise Price then in effect shall
be decreased as of the time of such issuance or, in the event such record date
is fixed, as of the close of business on such record date, by multiplying the
Exercise Price then in effect by a fraction (1) the numerator of which is the
total number of shares of Common Stock issued and outstanding immediately prior
to the time of such issuance or the close of business on such record date, and
(2) the denominator of which shall be the total number of shares of Common Stock
issued and outstanding immediately prior to the time of such issuance or the
close of business on such record date plus the number of shares of Common Stock
issuable in payment of such dividend or distribution, and (ii) the number of
shares of Common Stock issuable upon exercise of this Warrant at such time shall
be increased as of the time of such issuance, or in the event such record date
is fixed, as of the close of business on such record date, by multiplying the
number of shares issuable upon any exercise of this Warrant by a fraction (1)
the numerator of which shall be the total number of shares of Common Stock
issued and outstanding immediately prior to the time of such issuance or the
close of business on such record date plus the number of shares of Common Stock
issuable in payment of such dividend or distribution, and (2) the denominator of
which shall be the total number of shares of Common Stock issued and outstanding
immediately prior to the time of such issuance or the close of business on such
record date; provided, however, that if such record date is fixed and such
dividend is not fully paid or if such distribution is not fully made on the date
fixed therefor, the Exercise Price and the number of shares of Common Stock
issuable upon any exercise of this Warrant shall be recomputed accordingly as of
the close of business on such record date and thereafter the Exercise Price
shall be adjusted pursuant to this section as of the time of actual payment of
such dividends or distributions.

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

       

       

      (c)           Adjustments for Other
Dividends and Distributions.  In the event the Company at any
time prior to exercise of this Warrant shall make or issue, or fix a record date
for the determination of holders of Common Stock entitled to receive, a dividend
or other distribution payable in securities of the Company (other than Common
Stock for which an adjustment is made pursuant to Section 6(a), Section 6(b) or
Section 6(d) hereof) or in cash or other property, then and in each such event
provision shall be made so that the Holder shall receive upon exercise hereof,
in addition to the number of shares of Common Stock issuable hereunder, the kind
and amount of securities of the Company and/or cash and other property which the
Holder would have been entitled to receive had this Warrant been exercised into
Common Stock on the date of such event and had the Holder thereafter, during the
period from the date of such event to and including the Exercise Date, retained
any such securities receivable, giving application to all adjustments called for
during such period under this Section 6 with respect to the rights of the
Holder.

       

      (d)           Reorganizations, Mergers,
Consolidations or Transfers of Assets.  Subject to the
provisions regarding the Expiration Date in Section 1 hereof, if at any time or
from time to time there is a capital reorganization of the Common Stock or other
securities that will be issuable upon exercise of this Warrant, or a merger,
consolidation or binding share exchange of the Company with or into another
entity, or the transfer of all or substantially all of the Company’s properties
and assets to any other entity, then, as a part of such capital reorganization,
merger, consolidation, exchange or transfer, provision shall be made so that
Holder shall thereafter be entitled to receive upon exercise of this Warrant the
number of shares of stock or other securities, cash or property to which a
holder of the number of shares of Common Stock or other securities otherwise
deliverable upon exercise of this Warrant would have been entitled on such
capital reorganization, merger, consolidation, exchange or transfer in respect
of such Common Stock or other securities.  In any such case and
subject to the provisions regarding the Expiration Date in Section 1 hereof,
appropriate adjustment shall be made in the application of the provisions of
this Section 6 to the end that the provisions of this Section 6 (including
adjustment of the then in effect Exercise Price and the number of shares
purchasable upon exercise of this Warrant) shall be applicable after that event
and be as nearly equivalent as may be practicable.  Subject to the
provisions regarding the Expiration Date in Section 1 hereof, upon the
consummation of such capital reorganization, merger, consolidation, exchange or
transfer, the successor (if other than the Company) resulting from such
transaction or the entity acquiring such assets or other appropriate entity
shall assume, by written instrument, the obligation to deliver to Holder such
securities, cash or other property as, in accordance with the foregoing
provisions, Holder may be entitled to purchase pursuant to this
Warrant.

       

      (e)           Certificate of
Adjustment.  Upon the occurrence of each adjustment or
readjustment pursuant to this Section 6 of the Exercise Price, the number of
Warrant Shares or other securities issuable upon exercise of this Warrant, the
Company shall promptly compute such adjustment or readjustment in accordance
with the terms hereof and furnish to the Holder a certificate setting forth such
adjustment or readjustment (including the kind and amount of securities, cash or
other property for which this Warrant shall be exercisable and the Exercise
Price) and showing in detail the facts upon which such adjustment or
readjustment is based.  The Company shall, upon the written request at
any time of the Holder, furnish or cause to be furnished to the Holder a
certificate setting forth (i) the Exercise Price then in effect and
(ii) the number of Warrant Shares and the amount, if any, of other
securities, cash or property which then would be received upon the exercise of
this Warrant.

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

       

       

      7.      Transfers.

       

      (a)           The
Warrant Shares shall not be offered for sale, sold, transferred, pledged or
hypothecated unless either (i) they first shall have been registered under
the Act and any other applicable securities laws, or (ii) the Company first
shall have been furnished with an opinion of legal counsel, reasonably
satisfactory to the Company, to the effect that such offer for sale, sale,
transfer, pledge or hypothecation is exempt from the registration requirements
of the Act and any other applicable securities laws.

       

      (b)           In
addition, (i) the Holder shall not transfer all or any portion of the Warrant
Shares issued upon exercise of this Warrant to any person or entity (other than
to an affiliate of the Holder) on or before the thirty-fifth (35th) day
following the exercise of this Warrant and (ii) the Holder shall not assign,
pledge, hypothecate, sell or otherwise transfer this Warrant without the prior
written consent of the Company.  The Company may deem and treat the
person in whose name this Warrant is registered as the Holder and owner hereof
(notwithstanding any notations of ownership or writing hereon made by anyone
other than the Company) for all purposes and shall not be affected by any notice
to the contrary until presentation of this Warrant for registration of transfer
as provided below.

       

      (c)           The
Company agrees to maintain, at its then principal place of business, books for
the registration of the Warrant and transfers thereof, and, subject to the other
provisions of this Warrant, this Warrant and all rights hereunder are
transferable, in whole or in part, on said books at said office, upon surrender
of this Warrant at said office, together with a written assignment of this
Warrant, in the form attached hereto, duly executed by the Holder hereof or his
duly authorized agent or attorney and funds sufficient to pay any transfer taxes
payable upon the making of such transfer. Upon such surrender and payment, the
Company shall execute and deliver a new Warrant or Warrants in the name of the
assignee or assignees and in the denominations specified in such instrument of
assignment, and this Warrant shall promptly be canceled.

       

      (d)           Holder
acknowledges and agrees that the certificates representing the Warrant Shares
shall be issued in the name of Holder.  Holder acknowledges and agrees
that the Company shall effect delivery of the Warrant Shares by delivering to
Holder or its nominee a physical certificate representing such Warrant Shares,
as applicable, and that such certificate representing such Warrant Shares shall
contain the following restrictive legend:

       

       

      THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN AND WILL NOT BE REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY
STATE SECURITIES LAW, AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED,
PLEDGED OR HYPOTHECATED UNLESS A REGISTRATION STATEMENT UNDER THE SECURITIES ACT
AND APPLICABLE STATE SECURITIES LAWS SHALL BE EFFECTIVE WITH RESPECT THERETO, OR
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS IS AVAILABLE IN CONNECTION WITH SUCH OFFER, SALE, TRANSFER,
PLEDGE OR HYPOTHECATION AND THE CORPORATION RECEIVES AN OPINION OF COUNSEL (BOTH
SUCH OPINION AND SUCH COUSEL BEING REASONABLY ACCEPTABLE TO THE CORPORATION) TO
SUCH EFFECT.

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

       

      8.      Covenants of the
Company.  The Company hereby covenants and agrees
that:

       

      (a)           during
the term of this Warrant, the Company will reserve a sufficient number of shares
of authorized and unissued Common Stock to provide for the issuance of Common
Stock, which shares shall be duly authorized, fully paid and non-assessable,
upon the exercise of this Warrant and, from time to time, will use its
commercially reasonable efforts to take all steps necessary to amend its
Certificate of Incorporation to provide sufficient reserves of shares of Common
Stock issuable upon exercise of the Warrant;

       

      (b)           the
Company will not, by amendment of its Certificate of Incorporation or through
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, but will at all
times in good faith assist in the carrying out of all such terms.

       

      (c)           all
shares that may be issued upon the exercise of this Warrant, upon exercise of
this Warrant and payment of the Exercise Price, all as set forth herein, will be
free from all taxes, liens and charges in respect of the issue thereof (other
than taxes in respect of any transfer occurring contemporaneously or otherwise
specified herein); and

       

      (d)           issuance
of this Warrant by the Company shall constitute full authority to its officers
who are charged with the duty of executing stock certificates to execute and
issue the necessary certificates for shares of Common Stock upon the exercise of
this Warrant

       

      9.      Notices.  Any
notice or other communication to the Company or to Holder regarding the Warrant
shall be in writing and shall be deemed duly given or made when hand delivered,
when delivered by overnight courier or three business days after mailed by
registered or certified mail, return receipt requested, postage prepaid and, if
to the Company, to the Company’s office at 3190 Tremont Avenue, Trevose,
Pennsylvania 19053, USA, or such other address as the Company may designate by
notice to Holder and, if to Holder, to the Holder’s office at No. 9, Park,
Avenue II, Science-Based Industrial Park, Hsin-Chu, Taiwan, R.O.C. or such other
address as Holder may designate by prior written notice to the
Company.

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

       

       

      10.           Amendments.  Neither
this Warrant nor any term hereof may be amended, waived, discharged or
terminated other than by a written instrument signed by the Company and the
Holder.  This Warrant shall be binding upon and shall inure to the
benefit of the Company’s and the Holder’s successors and assigns.

       

      11.           Governing
Law.  This Warrant shall be governed in all respects by the
internal laws of the State of Delaware as applied to contracts entered into
solely between residents of, and to be performed entirely within, such state,
and without reference to principles of conflicts of laws or choice of
laws.

       

      12.           Headings. The
headings in this Warrant are for purposes of reference only and shall not limit
or otherwise affect the meaning hereof.

       

      

      [Signature Page
Follows]

       

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

       

       

      IN
WITNESS WHEREOF, WORLDGATE COMMUNICATIONS, INC. has caused this Warrant to be
executed by its authorized officer.

      

      

      

      
        
          
            
              	 
      	

                      WORLDGATE
      COMMMUNICATIONS, INC.

                    
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	

                      By:

                    	__________________________________
	 
      	 
      	
                      Name:

                    	
                      Christopher
      V. Vitale

                    
	 
      	 
      	
                      Title:

                    	
                      Senior
      Vice President, Legal and

                      Regulatory,
      General Counsel and

                      Secretary

                    

            

          

        

      

       

       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

       

      
 

      NOTICE
OF EXERCISE

      

      

      To:  WORLDGATE
COMMMUNICATIONS, INC.

      

      

      (1)           The
undersigned hereby elects to purchase _______________ shares of Common Stock of
WorldGate Communications, Inc., pursuant to the terms of the attached Warrant,
and tenders herewith payment of the purchase price for such shares in
full.

       

      (2)           Please
issue a certificate or certificates representing said shares of Common Stock in
the name of the undersigned or in such other name as is specified
below:

       

      

      

      

      
        
          
            
              
                	
                             
      

                      
	
                        (Name)

                      
	 
      
	 
      
	
                            
      

                      
	
                        (Name)

                      

              

            

          

        

      

      

      

       

      (3)           Please
issue a new Warrant for the unexercised portion of the attached Warrant in the
name of the undersigned or in such other name as is specified
below:

       

      

      

      

      
        
          
            
              
                
                  	
                           

                        	 	    
      
	 
      	 	
                          (Name)

                        
	 
      	 	 
      
	 
      	 	 
      
	
                           

                        	 	
                              
      

                        
	
                          (Date)

                        	 	
                          (Signature)

                        

                

              

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
 

      

      ASSIGNMENT
FORM

      

      

      FOR VALUE
RECEIVED, the undersigned registered owner of this Warrant hereby sells, assigns
and transfers unto the Assignee named below all of the rights of the undersigned
under the within Warrant, with respect to the number of shares of Common Stock
set forth below:

      

      

      
        
          
            	 
      	
                     

                  	

                    No
      of

                  
	
                    Name of Assignee

                  	
                    Address

                  	
                    Shares

                  

          

        

      

      

      

      

      

      

      

      

      

      

      and does
hereby irrevocably constitute and appoint as Attorney-in-Fact the Secretary of
WorldGate Communications, Inc. to make such transfer on the books of WORLDGATE
COMMUNICATIONS, INC., maintained for the purpose, with full power of
substitution in the premises.

      

      

      

      Dated:
_____________________________

      

       

       

      
 

      
        
          
            
              
                
                  	
                               
      

                        
	
                          

                            Signature
      of Holder

                          

                        
	 
      
	 
      
	
                              
      

                        
	
                          

                            Signature
      of
Assignee

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]