Document:

AMENDMENT
NO. 1 TO WARRANT AND EXERCISE AGREEMENT

    

    THIS AMENDMENT NO. 1 TO WARRANT AND
EXERCISE AGREEMENT, dated as of the date provided on the signature page
hereto (this “Agreement”), is
entered into by and between WorldGate Communications, Inc., a Delaware
corporation (the “Company”), and the
person or entity under the heading “Holder” provided on the signature page
hereto (the “Holder”, and together
with the Company, the “Parties”). All
capitalized terms used but not defined in this Agreement shall have the meanings
ascribed to them by that certain warrant to purchase common stock of the Company
issued June 23, 2004 by the Company and attached hereto as Exhibit A (the “Warrant”).

    

    RECITALS

    

    A.           WHEREAS, the Warrant entitles
the Holder, subject to the provisions of the Warrant, to purchase the Warrant
Shares (as defined on the signature page hereto) at an exercise price as
provided in, and as adjusted from time to time per the terms of, the Warrant
(the “Exercise Price”);
and

    

    B.           WHEREAS, in consideration for
the Holder’s immediate exercise of the right to purchase all of the Warrant
Shares contemplated by the Warrant simultaneously with the execution of this
Agreement, the Company has agreed to amend the Warrant such that the Exercise
Price of the Warrant shall be equal to the New Exercise Price (as defined on the
signature page hereto); and

    

    C.           WHEREAS, each of the Parties
desires to enter into this Agreement in order to amend the Warrant as set forth
herein.

    

    NOW, THEREFORE, in
consideration of the premises and the mutual covenants hereinafter contained,
the Parties agree as follows:

    

    1.           Amendment to Exercise Price
and Extension of Expiration Date. The Exercise Price set forth in the
second sentence of Section 1(a) of the Warrant is hereby amended as of the date
hereof to be the New Exercise Price (as defined on the signature page hereto)
per share of Common Stock. The definition of Expiration Date set forth in the
Warrant is hereby amended and restated to mean “August 7, 2009”.

    

    2.           Removal of Cashless Exercise
Provisions. The Warrant is hereby amended in its entirety to remove all
references to a Cashless Exercise and all such references shall no longer have
any force or effect such that the Holder may only exercise the Warrant and
receive the Warrant Shares upon the exercise of the Warrant by delivering
immediately available funds to the Company.

    

    3.           Consent to Amendment.
In accordance with Section 13 of the Warrant, (a) Holder hereby irrevocably
consents to the amendments to the Warrant contemplated by this Agreement and (b)
Holder agrees and acknowledges that the amendments to the Warrant contemplated
by this Agreement shall not be effective until holders of at least two-thirds
(2/3) of the number of shares into which all warrants to purchase common stock
of the Company issued June 23, 2004 by the Company are exercisable (without
regard to any limitation contained in the 2004 Warrants on such exercise) have
agreed to such amendments.

    

    4.           Termination of Certain
Agreements. Each of the Current Agreements, with respect to any rights or
obligations between the Parties, shall be deemed terminated, void and of no
further force and effect, and none of the Parties shall have any further
liabilities or obligations under the Current Agreements whatsoever. For purposes
of this Agreement, “Current
Agreements” means the Securities Purchase Agreement, dated June 23, 2004,
by and between the Company and the other signatories thereto, the Registration
Rights Agreement, dated June 23, 2004, by and between the Company and the other
signatories thereto, and any other agreements entered into in connection with,
in any way related to or arising from the Warrant, such Securities Purchase
Agreement or such Registration Rights Agreement, other than the Warrant itself
and this Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.           Exercise of Warrant.
Holder hereby irrevocably exercises the right to purchase all of the Warrant
Shares evidenced by the Warrant. Holder intends that payment of the Exercise
Price shall be made as a Cash Exercise with respect to all of the Warrant Shares
to be issued by this exercise of the Warrant. No later than one (1) business day
after the execution of this Agreement, Holder shall pay the sum equal to the
Exercise Cash Proceeds (as defined on the signature page hereto) to the Company
by wire transfer to the following account of the Company:

    

    Wachovia
Bank

    Philadelphia,
Pennsylvania 19107 USA

    ABA/Sort
Code no. 031 201 467

    Swift
Code/BIC no. PNBPUS33

    For
credit to account no. 200 0003 326307 WorldGate Service, Inc. Operating
Account

    

    Holder
directs that the certificates representing the Warrant Shares shall be issued in
the name of the Holder at the address provided on the signature page hereto.
Holder acknowledges and agrees that the Company shall effect delivery of the
Warrant Shares by delivering to the Holder or its nominee a physical certificate
representing such Warrant Shares and that such certificate representing the
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 OR TRANSFERRED
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 OR TRANSFER AND THE CORPORATION
RECEIVES AN OPINION OF COUNSEL (BOTH SUCH OPINION AND SUCH COUSEL BEING
REASONABLY ACCEPTABLE TO THE CORPORATION) TO SUCH EFFECT. SUBJECT TO COMPLIANCE
WITH THE REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
LAWS, THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE PLEDGED OR HYPOTHECATED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY THE
SHARES REPRESENTED BY THIS CERTIFICATE.

    

    6.           Representations and
Warranties. By executing this Agreement, Holder represents and warrants
to the Company as follows:

    

    
      	
               
      

            	
              a.

            	
              The
      Holder hereby acknowledges and agrees that attached hereto as Exhibit A is
      a true, complete and valid copy of the Warrant as currently in effect
      prior to the amendment contemplated by this
  Agreement.

            

    

    

    
      	
               
      

            	
              b.

            	
              Holder
      has all necessary power and authority under all applicable provisions of
      law to execute and deliver this Agreement and to carry out its provisions.
      All action on Holder’s part required for the lawful execution and delivery
      of this Agreement has been or will be effectively taken prior to the
      delivery of this Agreement by
Holder.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              c.

            	
              Neither
      the execution and delivery by the Holder of this Agreement, nor the
      performance of the transactions performed hereunder by the Holder, will
      require any filing, consent, renegotiation or approval that has not
      previously been obtained 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 the Holder is
      subject, (ii) the organizational documents (if any) of the Holder, or
      (iii) any contract, governmental permit or other document to which the
      Holder is subject.

            

    

    

    
      	
               
      

            	
              d.

            	
              The
      Holder is the sole record and beneficial owner of the Warrant and the
      Holder has good title to the Warrant free and clear of any mortgage, lien,
      pledge, charge, security interest, encumbrance, conditional sales
      contract, transfer restriction, right of first refusal, voting trust
      agreement, preemptive right, power of attorney or other adverse claim,
      defect of title, limitation or restriction of any type or nature
      whatsoever. No other person, firm, corporation or other entity has any
      right, title, claim, or interest in, to, or respecting any of the
      Warrant.

            

    

    

    
      	
               
      

            	
              e.

            	
              Holder
      understands that the Warrant Shares have not been registered under the
      Securities Act of 1933, as amended (the “Securities Act”). The Warrant
      Shares are being acquired for Holder’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. Holder has substantial
      experience in evaluating and investing in private placement transactions
      of securities similar to the Company so that Holder is capable of
      evaluating the merits and risks of its investment in the Company and has
      the capacity to protect its own interests. Holder understands and agrees
      that the Warrant Shares 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 Holder’s representations contained in
      this Agreement and, as a result, the Warrant Shares may only be
      transferred if such securities are registered under the Securities Act or
      if the transfer is exempt from registration. Holder must bear the economic
      risk of this investment indefinitely unless the Warrant Shares are
      registered pursuant to the Securities Act or an exemption from
      registration is available. Holder understands that the Company has no
      present intention of registering the Warrant Shares. Holder 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 Holder to transfer all or any
      portion of the Warrant Shares under the circumstances, in the amounts or
      at the times the Holder might propose. Holder 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, among other things: the availability of certain
      current public information about the Company, 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.

            

    

    

    
      	
               
      

            	
              f.

            	
              Holder
      is an “accredited investor” within the meaning of Regulation D, Rule
      501(a), promulgated by the Securities and Exchange Commission. Holder
      represents that by reason of its or its management’s business or financial
      experience, Holder has the capacity to protect its own interests in
      connection with the transactions contemplated in this Agreement. Further,
      Holder is aware of no publication of any advertisement in connection with
      the transactions contemplated in this Agreement. Holder acknowledges that
      its investment in the Company is highly speculative and entails a
      substantial degree of risk and Holder is in a position to lose the entire
      amount of such investment.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              g.

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

            

    

    

    
      	
               
      

            	
              h.

            	
              Holder
      has had full opportunity to seek the advice of independent counsel
      respecting the transactions contemplated by this Agreement and exercise of
      the Warrant and the tax risks and implications thereof. Holder maintains
      such Holder’s domicile (and is not a transient or temporary resident) at
      the address shown on the signature page of this Agreement. There are no
      claims for brokerage commission, finders’ fees or similar compensation in
      connection with the transactions contemplated by this Agreement or related
      documents based on any arrangement or agreement binding upon
      Holder.

            

    

    

    7.           Non-Public
Information. Holder acknowledges that Holder and its representatives may
receive information concerning the Company, some of which may be deemed material
non-public information, pursuant to the Confidentiality Agreement (as defined on
the signature page hereto). Holder acknowledges that with respect to Holder and
its representatives: (a) such persons and entities are aware (and, if
applicable, that its representatives and affiliates who are apprised of this
matter have been advised) 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 (b) the Company
is a publicly traded company listed on the OTC Bulletin Board and that some of
the information received by Holder and its representatives may be material
non-public information that would prohibit (i) such persons and entities from
entering into transactions with respect to the Company’s securities until such
material non-public information is fully disseminated in the public domain and
(ii) from communicating such information to any other person or entity under
circumstances in which it is reasonably foreseeable that such person is likely
to purchase or sell such securities.

    

    8.           Release.

    

    
      	
               
      

            	
              a.

            	
              In
      consideration of the foregoing, Holder hereby irrevocably and
      unconditionally REMISES, RELEASES AND FOREVER DISCHARGES the Company and
      its Related Persons from and against any and all Claims which the Holder can, shall or may have against
      the Company and its Related Persons (the “Company Released
      Claims”), except with respect to the issuance of the Warrant Shares
      pursuant to the terms of this
Agreement.

            

    

    

    
      	
               
      

            	
              b.

            	
              Holder
      hereby covenants not to commence or prosecute against the Company or its
      Related Persons, or to cause or assist any other person or entity in
      commencing or prosecuting against the Company or its Related Persons, any
      action or proceeding arising out of or in any way connected with Company
      Released Claims, except with respect to the issuance of the Warrant Shares
      pursuant to the terms of this
Agreement.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              c.

            	
              Holder
      represents and warrants to the Company that it has not assigned or
      transferred, or purported to assign or transfer, voluntarily,
      involuntarily, or by operation of law, any Company Released Claims, or any
      part or portion thereof.

            

    

    

    
      	
               
      

            	
              d.

            	
              For
      purposes of this Agreement,

            

    

    

    
      	
               
      

            	
              i.

            	
              “Related
      Persons” means predecessors, successors, affiliates,
      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) and/or
  representatives.

            

    

    

    
      	
               
      

            	
              ii.

            	
              “Claims” means
      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, 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 Agreement, 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 this Agreement, the Warrant or any of the Current
      Agreements.

            

    

    

    9.           Remedies. Holder
agrees to defend, indemnify and hold the Company and its Related Persons
harmless from any damages, loss, liabilities, diminution in value of property,
costs and expenses (including attorney fees and expenses) arising out of any
breach of this Agreement by Holder. All representations, warranties, covenants
or other agreements contained in this Agreement shall survive the execution and
delivery of this Agreement and the exercise of the Warrant.

    

    10.         Miscellaneous.

    

    
      	
               
      

            	
              a.

            	
              This
      Agreement shall amend and is incorporated into and made part of the
      Warrant. To the extent any term or provision of this Agreement may be
      deemed expressly inconsistent with any term or provision in the Warrant,
      the terms and provisions of this Agreement shall control. Except as
      expressly amended by this Agreement, all of the terms, conditions and
      provisions of the Warrant are hereby ratified and continue unchanged and
      remain in full force and effect.

            

    

    

    
      	
               
      

            	
              b.

            	
              This
      Agreement shall be governed by, and interpreted in accordance with, the
      laws of the State of Delaware, 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. Holder
      hereby irrevocably and unconditionally consents to submit to the exclusive
      jurisdiction of the federal and state courts located in the city of
      Wilmington, Delaware for any actions, suits or proceedings arising out of
      or relating to this Agreement. Holder hereby irrevocably and
      unconditionally waives any objection to the laying of venue of any action,
      suit or proceeding arising out of this Agreement, in the federal and state
      courts located in the city of Wilmington, Delaware 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.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              c.

            	
              This
      Agreement 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 Agreement, 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.

            

    

    

    
      	
               
      

            	
              d.

            	
              Notices
      given hereunder 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, 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 on the signature page hereto or such other address as the
      addressee may subsequently notify the other party of in
      writing.

            

    

    

    
      	
               
      

            	
              e.

            	
              This
      Agreement may be amended, and any provisions hereof may be waived, only by
      a writing signed by Holder and the Company. Holder may not assign this
      Agreement or any of its rights hereunder without the written consent of
      the Company. This Agreement shall be binding upon and inure to the benefit
      of Holder and the Company and their respective successors and assigns. If
      any portion or provision of this Agreement shall to any extent be declared
      illegal or unenforceable by a court of competent jurisdiction, then the
      remainder of this Agreement, 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 Agreement shall be valid and enforceable to the
      fullest extent permitted by applicable law. No failure or delay by the
      Company 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. This Agreement embodies the
      entire agreement and understanding of the Company and Holder with respect
      to the subject matter hereof and supersedes all prior discussions,
      negotiations, agreements and understandings among Holder and the Company
      with respect to the subject matter hereof. Holder shall not issue any
      press release, make any other public statement or otherwise disclose to
      any person the existence of this Agreement or any of the terms and
      conditions hereof, without the prior written consent of the Company,
      except to the extent legally required to make such disclosure upon the
      advice of outside legal counsel.

            

    

    

    
      	
               
      

            	
              f.

            	
              If
      the Warrant was transferred from a third party to Holder in contemplation
      of entering this Agreement, the Company agrees to reimburse Holder for the
      transfer fee paid by Holder to such third
party.

            

    

    

    [Signature
Page Follows]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
Parties hereto have caused this Agreement to be executed and delivered as of
June __, 2009 by persons thereunto duly authorized.

     

    
      
        
          
            	
                    COMPANY:

                  	
                    HOLDER:

                  
	
                    WorldGate
      Communications, Inc.

                  	 
      
	 
      	 
      
	
                    By:_______________________

                  	
                    __________________________

                  
	
                    Name:   Christopher
      V. Vitale

                  	 
      
	
                    Title:     General
      Counsel and Secretary

                  	 
      
	 
      	 
      
	
                    Address:  
      3190 Tremont Avenue

                  	
                    Address: 
       __________________

                  
	
                                     Trevose,
      Pennsylvania 19053

                  	
                                    
      __________________

                  
	
                    Fax:         
      215-354-5199

                  	
                    Fax:          __________________

                  
	 
      	 
      
	 
      	
                    Social
      Security Number/Federal Tax ID number:

                  
	 
      	
                                    
      __________________

                  
	 
      	 
      

          

        

      

    

     

    
      
        
          	
                  Provisions Referenced in
      Agreement:

                
	 
      
	
                  “Warrant Shares” means
      _____________ shares of Common Stock.

                
	 
      
	
                  “New Exercise Price”
      means $0.25 per share of Common Stock.

                
	 
      
	
                  “Exercise Cash Proceeds”
      means ________________ dollars
($______________).

                
	 
      
	
                  “Confidentiality Agreement”
      means the Confidentiality Agreement, dated June __, 2009, between
      the Company and
Holder.

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
A

    

    WarrantAMENDMENT
NO. 1 TO WARRANT AGREEMENT

      

      THIS AMENDMENT NO. 1 TO WARRANT
AGREEMENT, dated as of the date provided on the signature page hereto
(this “Agreement”), is
entered into by and between WorldGate Communications, Inc., a Delaware
corporation (the “Company”), and the
person or entity under the heading “Holder” provided on
the signature page hereto (the “Holder”, and together
with the Company, the “Parties”). All
capitalized terms used but not defined in this Agreement shall have the meanings
ascribed to them by that certain warrant to purchase common stock of the Company
issued June 23, 2004 by the Company and attached hereto as Exhibit A (the “Warrant”).

      

      RECITALS

      

      A.           WHEREAS, the Warrant entitles
the Holder, subject to the provisions of the Warrant, to purchase the Warrant
Shares (as defined on the signature page hereto) at an exercise price as
provided in, and as adjusted from time to time per the terms of, the Warrant
(the “Exercise
Price”);

      

      B.           WHEREAS, in consideration for
the Holder’s immediate exercise of the right to purchase shares of Common Stock
underlying certain other warrants issued by the Company simultaneously with the
execution of this Agreement, the Company has agreed to amend the Warrant such
that the Exercise Price of the Warrant shall be equal to the New Exercise Price
(as defined on the signature page hereto); and

      

      C.           WHEREAS, each of the Parties
desires to enter into this Agreement in order to amend the Warrant as set forth
herein.

      

      NOW, THEREFORE, in
consideration of the premises and the mutual covenants hereinafter contained,
the Parties agree as follows:

      

      1.           Amendment to Exercise
Price. The Exercise Price set forth in the second sentence of Section
1(a) of the Warrant is hereby amended as of the date hereof to be the New
Exercise Price (as defined on the signature page hereto) per share of Common
Stock. The definition of Expiration Date set forth in the Warrant is hereby
amended and restated to mean “August 7, 2009”.

      

      2.           Removal of Cashless Exercise
Provisions. The Warrant is hereby amended in its entirety to remove all
references to a Cashless Exercise and all such references shall no longer have
any force or effect such that the Holder may only exercise the Warrant and
receive the Warrant Shares upon the exercise of the Warrant by delivering
immediately available funds to the Company.

      

      3.           Consent to Amendment.
In accordance with Section 13 of the Warrant, (a) Holder hereby irrevocably
consents to the amendments to the Warrant contemplated by this Agreement and (b)
Holder agrees and acknowledges that the amendments to the Warrant contemplated
by this Agreement shall not be effective until holders of at least two-thirds
(2/3) of the number of shares into which all warrants to purchase common stock
of the Company issued June 23, 2004 by the Company are exercisable (without
regard to any limitation contained in the 2004 Warrants on such exercise) have
agreed to such amendments.

      

      4.           Termination of Certain
Agreements. Each of the Current Agreements, with respect to any rights or
obligations between the Parties, shall be deemed terminated, void and of no
further force and effect, and none of the Parties shall have any further
liabilities or obligations under the Current Agreements whatsoever. For purposes
of this Agreement, “Current Agreements”
means the Securities Purchase Agreement, dated June 23, 2004, by and between the
Company and the other signatories thereto, the Registration Rights Agreement,
dated June 23, 2004, by and between the Company and the other signatories
thereto, and any other agreements entered into in connection with, in any way
related to or arising from the Warrant, such Securities Purchase Agreement or
such Registration Rights Agreement, other than the Warrant itself and this
Agreement.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      5.           Exercise of Warrant.
Upon any exercise of the Warrant, Holder acknowledges and agrees that the
Company shall effect delivery of the Warrant Shares by delivering to the Holder
or its nominee a physical certificate representing such Warrant Shares and that
such certificate representing the 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 OR TRANSFERRED
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 OR TRANSFER AND THE CORPORATION
RECEIVES AN OPINION OF COUNSEL (BOTH SUCH OPINION AND SUCH COUSEL BEING
REASONABLY ACCEPTABLE TO THE CORPORATION) TO SUCH EFFECT. SUBJECT TO COMPLIANCE
WITH THE REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
LAWS, THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE PLEDGED OR HYPOTHECATED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY THE
SHARES REPRESENTED BY THIS CERTIFICATE.

      

      6.           Representations and
Warranties. By executing this Agreement, Holder represents and warrants
to the Company as follows:

      

      
        	
                 
      

              	
                a.

              	
                The
      Holder hereby acknowledges and agrees that attached hereto as Exhibit A is
      a true, complete and valid copy of the Warrant as currently in effect
      prior to the amendment contemplated by this
  Agreement.

              

      

      

      
        	
                 
      

              	
                b.

              	
                Holder
      has all necessary power and authority under all applicable provisions of
      law to execute and deliver this Agreement and to carry out its provisions.
      All action on Holder’s part required for the lawful execution and delivery
      of this Agreement has been or will be effectively taken prior to the
      delivery of this Agreement by
Holder.

              

      

      

      
        	
                 
      

              	
                c.

              	
                Neither
      the execution and delivery by the Holder of this Agreement, nor the
      performance of the transactions performed hereunder by the Holder, will
      require any filing, consent, renegotiation or approval that has not
      previously been obtained 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 the Holder is
      subject, (ii) the organizational documents (if any) of the Holder, or
      (iii) any contract, governmental permit or other document to which the
      Holder is subject.

              

      

      

      
        	
                 
      

              	
                d.

              	
                The
      Holder is the sole record and beneficial owner of the Warrant and the
      Holder has good title to the Warrant free and clear of any mortgage, lien,
      pledge, charge, security interest, encumbrance, conditional sales
      contract, transfer restriction, right of first refusal, voting trust
      agreement, preemptive right, power of attorney or other adverse claim,
      defect of title, limitation or restriction of any type or nature
      whatsoever. No other person, firm, corporation or other entity has any
      right, title, claim, or interest in, to, or respecting any of the
      Warrant.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                 
      

              	
                e.

              	
                Holder
      understands that the Warrant Shares have not been registered under the
      Securities Act of 1933, as amended (the “Securities
      Act”). The Warrant Shares are being acquired for Holder’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. Holder has substantial experience in evaluating and investing in
      private placement transactions of securities similar to the Company so
      that Holder is capable of evaluating the merits and risks of its
      investment in the Company and has the capacity to protect its own
      interests. Holder understands and agrees that the Warrant Shares 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
      Holder’s representations contained in this Agreement and, as a result, the
      Warrant Shares may only be transferred if such securities are registered
      under the Securities Act or if the transfer is exempt from registration.
      Holder must bear the economic risk of this investment indefinitely unless
      the Warrant Shares are registered pursuant to the Securities Act or an
      exemption from registration is available. Holder understands that the
      Company has no present intention of registering the Warrant Shares. Holder
      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 Holder to transfer all or any
      portion of the Warrant Shares under the circumstances, in the amounts or
      at the times the Holder might propose. Holder 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, among other things: the availability of certain
      current public information about the Company, 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.

              

      

      

      
        	
                 
      

              	
                f.

              	
                Holder
      is an “accredited investor” within the meaning of Regulation D, Rule
      501(a), promulgated by the Securities and Exchange Commission. Holder
      represents that by reason of its or its management’s business or financial
      experience, Holder has the capacity to protect its own interests in
      connection with the transactions contemplated in this Agreement. Further,
      Holder is aware of no publication of any advertisement in connection with
      the transactions contemplated in this Agreement. Holder acknowledges that
      its investment in the Company is highly speculative and entails a
      substantial degree of risk and Holder is in a position to lose the entire
      amount of such investment.

              

      

      

      
        	
                 
      

              	
                g.

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

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                 
      

              	
                h.

              	
                Holder
      has had full opportunity to seek the advice of independent counsel
      respecting the transactions contemplated by this Agreement and exercise of
      the Warrant and the tax risks and implications thereof. Holder maintains
      such Holder’s domicile (and is not a transient or temporary resident) at
      the address shown on the signature page of this Agreement. There are no
      claims for brokerage commission, finders’ fees or similar compensation in
      connection with the transactions contemplated by this Agreement or related
      documents based on any arrangement or agreement binding upon
      Holder.

              

      

      

      7.           Non-Public
Information. Holder acknowledges that Holder and its representatives may
receive information concerning the Company, some of which may be deemed material
non-public information, pursuant to the Confidentiality Agreement (as defined on
the signature page hereto). Holder acknowledges that with respect to Holder and
its representatives: (a) such persons and entities are aware (and, if
applicable, that its representatives and affiliates who are apprised of this
matter have been advised) 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 (b) the Company
is a publicly traded company listed on the OTC Bulletin Board and that some of
the information received by Holder and its representatives may be material
non-public information that would prohibit (i) such persons and entities from
entering into transactions with respect to the Company’s securities until such
material non-public information is fully disseminated in the public domain and
(ii) from communicating such information to any other person or entity under
circumstances in which it is reasonably foreseeable that such person is likely
to purchase or sell such securities.

      

      8.           Release.

      

      
        	
                 
      

              	
                a.

              	
                In
      consideration of the foregoing, Holder hereby irrevocably and
      unconditionally REMISES, RELEASES AND FOREVER DISCHARGES the Company and
      its Related Persons from and against any and all Claims which the Holder can, shall or may have against
      the Company and its Related Persons (the “Company Released
      Claims”), except with respect to the issuance of the Warrant Shares
      upon exercise of, and pursuant to the terms of the Warrant, as amended by
      this Agreement.

              

      

      

      
        	
                 
      

              	
                b.

              	
                Holder
      hereby covenants not to commence or prosecute against the Company or its
      Related Persons, or to cause or assist any other person or entity in
      commencing or prosecuting against the Company or its Related Persons, any
      action or proceeding arising out of or in any way connected with Company
      Released Claims, except with respect to the issuance of the Warrant Shares
      upon exercise of, and pursuant to the terms of the Warrant, as amended by
      this Agreement.

              

      

      

      
        	
                 
      

              	
                c.

              	
                Holder
      represents and warrants to the Company that it has not assigned or
      transferred, or purported to assign or transfer, voluntarily,
      involuntarily, or by operation of law, any Company Released Claims, or any
      part or portion thereof.

              

      

      

      
        	
                 
      

              	
                d.

              	
                For
      purposes of this Agreement,

              

      

      

      
        	
                 
      

              	
                i.

              	
                “Related
      Persons” means predecessors, successors, affiliates,
      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) and/or
  representatives.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                 
      

              	
                ii.

              	
                “Claims” means
      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, 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 Agreement, 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 this Agreement, the Warrant or any of the Current
      Agreements.

              

      

      

      9.           Remedies. Holder
agrees to defend, indemnify and hold the Company and its Related Persons
harmless from any damages, loss, liabilities, diminution in value of property,
costs and expenses (including attorney fees and expenses) arising out of any
breach of this Agreement by Holder. All representations, warranties, covenants
or other agreements contained in this Agreement shall survive the execution and
delivery of this Agreement and any exercise of the Warrant.

      

      10.           Miscellaneous.

      

      
        	
                 
      

              	
                a.

              	
                This
      Agreement shall amend and is incorporated into and made part of the
      Warrant. To the extent any term or provision of this Agreement may be
      deemed expressly inconsistent with any term or provision in the Warrant,
      the terms and provisions of this Agreement shall control. Except as
      expressly amended by this Agreement, all of the terms, conditions and
      provisions of the Warrant are hereby ratified and continue unchanged and
      remain in full force and effect.

              

      

      

      
        	
                 
      

              	
                b.

              	
                This
      Agreement shall be governed by, and interpreted in accordance with, the
      laws of the State of Delaware, 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. Holder
      hereby irrevocably and unconditionally consents to submit to the exclusive
      jurisdiction of the federal and state courts located in the city of
      Wilmington, Delaware for any actions, suits or proceedings arising out of
      or relating to this Agreement. Holder hereby irrevocably and
      unconditionally waives any objection to the laying of venue of any action,
      suit or proceeding arising out of this Agreement, in the federal and state
      courts located in the city of Wilmington, Delaware 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.

              

      

      

      
        	
                 
      

              	
                c.

              	
                This
      Agreement 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 Agreement, 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.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                 
      

              	
                d.

              	
                Notices
      given hereunder 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, 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 on the signature page hereto or such other address as the
      addressee may subsequently notify the other party of in
      writing.

              

      

      

      
        	
                 
      

              	
                e.

              	
                This
      Agreement may be amended, and any provisions hereof may be waived, only by
      a writing signed by Holder and the Company. Holder may not assign this
      Agreement or any of its rights hereunder without the written consent of
      the Company. This Agreement shall be binding upon and inure to the benefit
      of Holder and the Company and their respective successors and assigns. If
      any portion or provision of this Agreement shall to any extent be declared
      illegal or unenforceable by a court of competent jurisdiction, then the
      remainder of this Agreement, 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 Agreement shall be valid and enforceable to the
      fullest extent permitted by applicable law. No failure or delay by the
      Company 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. This Agreement embodies the
      entire agreement and understanding of the Company and Holder with respect
      to the subject matter hereof and supersedes all prior discussions,
      negotiations, agreements and understandings among Holder and the Company
      with respect to the subject matter hereof. Holder shall not issue any
      press release, make any other public statement or otherwise disclose to
      any person the existence of this Agreement or any of the terms and
      conditions hereof, without the prior written consent of the Company,
      except to the extent legally required to make such disclosure upon the
      advice of outside legal counsel.

              

      

      

      
        	
                 
      

              	
                f.

              	
                If
      the Warrant was transferred from a third party to Holder in contemplation
      of entering this Agreement, the Company agrees to reimburse Holder for the
      transfer fee paid by Holder to such third
party.

              

      

      

      [Signature
Page Follows]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      IN WITNESS WHEREOF, the
Parties hereto have caused this Agreement to be executed and delivered
as of June __, 2009 by persons thereunto duly authorized.

       

      
        	
                COMPANY:

              	
                HOLDER:

              
	
                WorldGate
      Communications, Inc.

              	 
      
	 
      	 
      
	
                By:_______________________

              	
                __________________________

              
	
                Name:   Christopher
      V. Vitale

              	 
      
	
                Title:     General
      Counsel and Secretary

              	 
      
	 
      	 
      
	
                Address:  
      3190 Tremont Avenue

              	
                Address: 
       __________________

              
	
                                 Trevose,
      Pennsylvania 19053

              	
                                
      __________________

              
	
                Fax:         
      215-354-5199

              	
                Fax:          __________________

              
	 
      	 
      
	 
      	
                Social
      Security Number/Federal Tax ID number:

              
	 
      	
                                
      __________________

              
	 
      	 
      

      

       

      
        
          
            	
                    Provisions Referenced
      in Agreement:

                  
	 
      
	
                    “Warrant Shares” means
      _______________shares of
      Common Stock.

                  
	 
      
	
                    “New Exercise Price”
      means $0.25 per share of Common Stock.

                  
	 
      
	
                    “Confidentiality Agreement”
      means the Confidentiality Agreement, dated June __, 2009, between
      the Company and Holder.

                  

          

        

        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Exhibit
A

      

      Warrant

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"}]]