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                                                                  Exhibit 10.11

                         WORLDGATE COMMUNICATIONS, INC.

                        2001 EMPLOYEE STOCK PURCHASE PLAN

         1. PURPOSE. The purpose of the Plan is to provide employees of the
Company and its Designated Subsidiaries with an opportunity to purchase Common
Stock of the Company through accumulated payroll deductions. It is the intention
of the Company to have the Plan qualify as an "Employee Stock Purchase Plan"
under Section 423 of the Internal Revenue Code of 1986, as amended. The
provisions of the Plan, accordingly, shall be construed so as to extend and
limit participation in a manner consistent with the requirements of that section
of the Code.

         2. DEFINITIONS.

            a. "BOARD" shall mean the Board of Directors of the Company.

            b. "BUSINESS DAY" shall mean a day on which national stock exchanges
and the Nasdaq System are open for trading.

            c. "CODE" shall mean the Internal Revenue Code of 1986, as amended.

            d. "COMMON STOCK" shall mean the common stock of the Company.

            e. "COMPANY" shall mean WorldGate Communications, Inc. and any
Designated Subsidiary of the Company.

            f. "COMPENSATION" shall mean all base straight time gross earnings
and commissions, payments for overtime, shift premium and cash bonuses.

            g. "DESIGNATED SUBSIDIARY" shall mean any Subsidiary which has been
designated by the Board from time to time in its sole discretion as eligible to
participate in the Plan.

            h. "EMPLOYEE" shall mean any individual who is an Employee of the
Company and for tax purposes whose customary employment with the Company is at
least twenty (20) hours per week and more than five (5) months in any calendar
year. For purposes of the Plan, the employment relationship shall be treated as
continuing intact while the individual is on sick leave or other leave of
absence approved by the Company. Where the period of leave exceeds ninety (90)
days and the individual's right to reemployment is not guaranteed either by
statute or by contract, the individual shall cease to be an Employee for
purposes of this Plan until such time as the individual again meets the forgoing
criteria.

            i. "ENROLLMENT DATE" shall mean the first day of each Offering
Period.

            j. "EXERCISE DATE" shall mean the last day of each Offering Period.

            k. "FAIR MARKET VALUE" shall mean, as of any date, the value of
Common Stock determined as follows:

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                i. If the Common Stock is listed on any established stock
      exchange or a national market system, including without limitation the
      Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock
      Market, its Fair Market Value shall be the closing sales price for such
      stock (or the closing bid, if no sales were reported) as quoted on such
      exchange or system for the last Business Day prior to the date of such
      determination, as reported in THE WALL STREET JOURNAL or such other source
      as the Board deems reliable;

                ii. If the Common Stock is regularly quoted by a recognized
      securities dealer but selling prices are not reported, its Fair Market
      Value shall be the mean of the closing bid and asked prices for the Common
      Stock on the date of such determination, as reported in THE WALL STREET
      JOURNAL or such other source as the Board deems reliable; or

                iii. In the absence of an established market for the Common
      Stock, the Fair Market Value thereof shall be determined in good faith by
      the Board.

            l. "OFFERING PERIOD" shall mean, except as described below with
respect to the first year that the Plan is in effect, a period of approximately
three (3) months during which an Option granted pursuant to the Plan may be
exercised, commencing on: (i) the first Business Day on or after January 1 and
terminating on the last Business Day on or prior to the following March 31; (ii)
the first Business Day on or after April 1 and terminating on the last Business
Day on or prior to the following June 30; (iii) the first Business Day on or
after July 1 and terminating on the last Business Day on or prior to the
following September 30; and (iv) the first Business Day on or after October 1
and terminating on the last Business Day on or prior to the following December
31. Notwithstanding the foregoing, however, the first Offering Period under the
Plan shall commence on March 6, 2001 and terminate on June 29, 2001. The
duration of Offering Periods may be changed pursuant to SECTION 4 of this Plan.

            m. "OPTION" shall mean a right granted to a Participant to acquire
shares of Common Stock of the Company pursuant to the terms and conditions of
the Plan.

            n. "PARTICIPANT" shall mean an eligible Employee who elects, in
accordance with the terms and conditions specified herein, to participate in the
Plan.

            o. "PLAN" shall mean this 2001 Employee Stock Purchase Plan.

            p. "PURCHASE PRICE" shall mean an amount equal to the Fair Market
Value of a share of Common Stock on the Enrollment Date or on the Exercise Date,
whichever is lower, minus fifteen percent of such Fair Market Value.

            q. "RATE CHANGE DAY" shall mean February 1, March 15, May 1, June
15, August 1, September 15, November 1 and December 15, unless otherwise
determined by the Board.

            r. "RESERVES" shall mean the number of shares of Common Stock
covered by each Option under the Plan which have not yet been exercised and the
number of shares of Common Stock which have been authorized for issuance under
the Plan but not yet placed under Option.

            s. "SUBSIDIARY" shall mean a corporation, domestic or foreign, of
which not less than 50% of the voting shares are held by the Company or a
Subsidiary, whether or not such corporation now exists or is hereafter organized
or acquired by the Company or a Subsidiary.

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         3. ELIGIBILITY.

            a. Any employee who shall have completed six months of continuous
employment with the Company on a given Enrollment Day shall be eligible to
participate in the Plan. In the event that the Company acquires a company that
becomes a Designated Subsidiary as a result of such acquisition, the employees
of such Designated Subsidiary shall be regarded as having an employment start
date as of the date when they began continuous employment with the Designated
Subsidiary.

            b. Any provisions of the Plan to the contrary notwithstanding, no
Employee shall be granted an Option under the Plan (i) to the extent that,
immediately after the grant, such Employee (or any other person whose stock
would be attributed to such Employee pursuant to Section 424(d) of the Code)
would own capital stock of the Company and/or hold outstanding options to
purchase such stock possessing five percent (5%) or more of the total combined
voting power or value of all classes of the capital stock of the Company or of
any Subsidiary, or (ii) to the extent that such Employee's rights to purchase
stock under all employee stock purchase plans of the Company and its
Subsidiaries accrues at a rate which exceeds Twenty-Five Thousand Dollars
($25,000) worth of stock (determined at the Fair Market Value of the shares at
the time such Option is granted) for each calendar year in which such Option is
outstanding at any time.

         4. OFFERING PERIODS. The Plan shall be implemented by consecutive
Offering Periods until terminated in accordance with SECTION 20 hereof. The
Board shall have the power to change the duration of Offering Periods (including
the commencement dates thereof) with respect to future offerings without
stockholder approval if such change is announced at least two (2) days prior to
the scheduled beginning of the first Offering Period to be affected thereafter.

         5. PARTICIPATION.

            a. An eligible Employee may become a Participant in the Plan by
completing an Enrollment / Change Form authorizing payroll deductions in the
form of EXHIBIT A to this Plan and filing it with the Company's Human Resources
Department no later than the fifteenth day of the month immediately proceeding
the applicable Enrollment Date.

            b. Payroll deductions for a Participant shall commence on the first
pay day following the first Enrollment Date after the Company's receipt of an
Enrollment / Change Form pursuant to SECTION 5(A) and shall continue until
terminated pursuant to SECTION 10 or modified pursuant to SECTION 6(C).

         6. PAYROLL DEDUCTIONS.

            a. At the time a Participant files such Participant's an Enrollment
/ Change Form, such Participant shall elect to have payroll deductions made on
each pay day during the Offering Period in an amount not exceeding fifteen
percent (15%) of the Compensation which such Participant receives on each pay
day during the Offering Period.

            b. All payroll deductions made for a Participant shall be credited
to such Participant's account under the Plan and shall be withheld in whole
percentages only. A Participant may not make any additional payments into such
account.

            c. A Participant may discontinue participation in the Plan as
provided in SECTION 10 hereof, or may increase or decrease such Participant's
payroll deduction rate during the Offering Period

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by completing and filing with the Company a new Enrollment / Change Form
authorizing a change in payroll deduction rate. The change in such Participant's
payroll deduction rate shall be effective on the first pay day which is at least
three (3) business days after a Rate Change Day. Notwithstanding the foregoing
sentence, however, if the proposed change in payroll deduction rate is a
reduction of such Participant's payroll deduction rate to zero percent (0%),
then the change in payroll deduction rate shall be effective on the first pay
day which is at least three (3) business days after receipt by the Company of
such Participant's new Enrollment / Change Form. A Participant's Enrollment /
Change Form shall remain in effect for successive Offering Periods unless
terminated as provided in SECTION 10 hereof.

            d. Notwithstanding the foregoing, to the extent necessary to comply
with Section 423(b)(8) of the Code and SECTION 3(B) hereof, a the Company may
decrease such Participant's payroll deduction at any time during a Offering
Period. Payroll deductions shall recommence at the rate provided in such
Participant's Enrollment / Change Form at the beginning of the first Offering
Period which is scheduled to end in the following calendar year, unless
terminated by the Participant as provided in SECTION 10 hereof. e. At any time,
the Company may, but shall not be obligated to, withhold from the Participant's
compensation the amount necessary for the Company to meet applicable federal,
state or other tax withholding obligations. Upon request of the Company, a
Participant shall promptly remit to the Company the full amount required to
satisfy any applicable tax withholding obligations to which the Company is
subject

         7. GRANT OF OPTION. On the Enrollment Date of each Offering Period,
each eligible Employee participating in such Offering Period shall be granted an
Option to purchase on the Exercise Date of such Offering Period (at the
applicable Purchase Price) up to a number of shares of Common Stock determined
by dividing such Employee's Compensation deductions accumulated prior to such
Exercise Date and retained in the Participant's account as of the Exercise Date
by the applicable Purchase Price; provided that in no event shall an Employee be
permitted to purchase during each Offering Period more than five thousand
(5,000) shares of Common Stock (subject to any adjustment pursuant to SECTION 19
hereof), and provided further that such purchase shall be subject to the
limitations set forth in SECTIONS 3(B) AND 11 hereof. The Board may, for future
Offering Periods, increase or decrease, in its absolute discretion, the maximum
number of shares of Common Stock an Employee may purchase during each Purchase
Period of such Offering Period. Exercise of the Option shall occur as provided
in SECTION 8 hereof, unless the Participant has withdrawn pursuant to SECTION 10
hereof. The Option shall expire on the last day of the Offering Period.

         8. EXERCISE OF OPTION. Unless a Participant withdraws from the Plan as
provided in SECTION 10 hereof, such Participant's Option for the purchase of
shares shall be exercised automatically on the Exercise Date, and the maximum
number of full shares subject to Option shall be purchased for such Participant
at the applicable Purchase Price with the accumulated payroll deductions in such
Participant's account, subject to the limitations set forth in SECTIONS 3(B) AND
7. No fractional shares shall be purchased; any payroll deductions accumulated
in a Participant's account which are not sufficient to purchase a full share
shall be retained in the Participant's account for the subsequent Offering
Period, subject to earlier withdrawal by the Participant as provided in SECTION
10 hereof. Any other monies left over in a Participant's account after the
Exercise Date shall be returned to the Participant. During a Participant's
lifetime, a Participant's Option to purchase shares hereunder is exercisable
only by such Participant.

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         9. DELIVERY. As promptly as practicable after each Exercise Date on
which a purchase of shares occurs, the Company shall arrange for the Company's
transfer agent to credit to the account of the Plan Administrator (designated in
Section 16(d) hereof), the shares purchased upon exercise of the Participants'
Options, for the benefit of the individual Participants.

         10. WITHDRAWAL.

            a. A Participant may withdraw all but not less than all the payroll
deductions credited to such Participant's account and not yet used to exercise
such Participant's Option under the Plan at any time by giving written notice to
the Company in the form of EXHIBIT B to this Plan. All of the Participant's
payroll deductions credited to such Participant's account shall be paid to such
Participant promptly after receipt of notice of withdrawal and such
Participant's Option for the Offering Period shall be automatically terminated,
and no further payroll deductions for the purchase of shares shall be made for
such Offering Period. If a Participant withdraws from an Offering Period,
payroll deductions shall not resume at the beginning of the succeeding Offering
Period unless such Participant delivers to the Company a new Enrollment / Change
Form.

            b. A Participant's withdrawal from an Offering Period shall not have
any effect upon such Participant's eligibility to participate in any similar
plan which may hereafter be adopted by the Company or in succeeding Offering
Periods which commence after the termination of the Offering Period from which
the Participant withdraws.

         11. TERMINATION OF EMPLOYMENT.

            a. Upon a Participant's ceasing to be an Employee, for any reason,
such Participant shall be deemed to have elected to withdraw from the Plan and
the payroll deductions credited to such Participant's account during the
Offering Period but not yet used to exercise the Option shall be returned to
such Participant or, in the case of a Participant's death, to the person or
persons entitled thereto under SECTION 15 hereof, and such Participant's Option
shall be automatically terminated.

            b. The Plan does not, directly or indirectly, create in any Employee
or class of Employees any right with respect to continuation of employment by
the Company or any Subsidiary and it shall not be deemed to interfere in any way
with the Company's or any Subsidiary's right to terminate, or otherwise modify,
an Employee's employment at any time.

         12. INTEREST. No interest shall accrue on the payroll deductions of a
Participant in the Plan.

         13. STOCK.

            a. Subject to adjustment upon changes in capitalization of the
Company as provided in SECTION 19 hereof, the maximum number of shares of Common
Stock which shall be made available for sale under the Plan shall be seven
hundred and fifty thousand (750,000) shares plus an annual increase to be added
on the first day of the Company's fiscal year beginning in 2002 equal to the
lesser of (i) three hundred and seventy-five thousand (375,000) shares of Common
Stock or (ii) a lesser amount determined by the Board. If, on a given Exercise
Date, the number of shares with respect to which Options are to be exercised
exceeds the number of shares then available under the Plan, the Company shall
make a pro rata allocation of the shares remaining available for purchase in as
uniform a manner as shall be practicable and as it shall determine to be
equitable.

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            b. The Participant shall have no interest or voting right in shares
covered by such Participant's Option until such Option has been exercised.

            c. Shares to be delivered to a Participant under the Plan shall be
registered in the name of the Participant or in the name of the Participant and
such Participant's spouse.

         14. ADMINISTRATION. The Plan shall be administered by the Board or a
committee of members of the Board appointed by the Board. The Board or its
committee shall have full and exclusive discretionary authority to construe,
interpret and apply the terms of the Plan, to determine eligibility and to
adjudicate all disputed claims filed under the Plan. Every finding, decision and
determination made by the Board or its committee shall, to the full extent
permitted by law, be final and binding upon all parties.

         15. DESIGNATION OF BENEFICIARY.

            a. A Participant may file a written designation of a beneficiary who
is to receive any shares and cash, if any, from the Participant's account under
the Plan in the event of such Participant's death subsequent to an Exercise Date
on which the Option is exercised but prior to delivery to such Participant of
such shares and cash. In addition, a Participant may file a written designation
of a beneficiary who is to receive any cash from the Participant's account under
the Plan in the event of such Participant's death prior to exercise of the
Option. If a Participant is married and the designated beneficiary is not the
spouse, spousal consent shall be required for such designation to be effective.

            b. Such designation of beneficiary may be changed by the Participant
at any time by written notice. In the event of the death of a Participant and in
the absence of a beneficiary validly designated under the Plan who is living at
the time of such Participant's death, the Company shall deliver such shares
and/or cash to the executor or administrator of the estate of the Participant,
or if no such executor, personal representative or administrator has been
appointed (to the knowledge of the Company), the Company, in its discretion, may
deliver such shares and/or cash to the spouse or to any one or more dependents
or relatives of the Participant, or if no spouse, dependent or relative is known
to the Company, then to such other person as the Company may designate.

         16. TRANSFERABILITY.

            a. PROHIBITION ON TRANSFERABILITY OF PLAN INTERESTS. Neither payroll
deductions credited to a Participant's account nor any rights with regard to the
exercise of an Option or to receive shares under the Plan may be assigned,
transferred, pledged or otherwise disposed of in any way (other than by will,
the laws of descent and distribution or as provided in SECTION 15 hereof) by the
Participant. Any such attempt at assignment, transfer, pledge or other
disposition shall be without effect, except that the Company may treat such act
as an election to withdraw funds from an Offering Period in accordance with
SECTION 10 hereof.

            b. HOLDING PERIOD FOR SHARES. After a Participant acquires shares
pursuant to the Plan, the Participant shall not assign, transfer, pledge or
otherwise dispose of such shares for a period of one year from the Enrollment
Date. Shares purchased by a Participant under the Plan shall be fully vested
and, subject to the foregoing restriction on transfer, the Participant shall
have all incidents of ownership with respect to such shares, including the right
to vote and the right to receive distributions and dividends.

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            c. TAX TREATMENT. The Plan is intended to satisfy the requirements
of Section 423 of the Code. A Participant will not obtain the benefits of this
provision if such Participant disposes of shares of Common Stock acquired
pursuant to the Plan within two (2) years from the Enrollment Date of the
Offering Period during which the Participant purchased such shares.

            d. BROKER. Each Participant must use the securities broker
designated by the Board, or the committee of members of the Board appointed by
the Board as the Plan Administrator, for all transactions involving securities
acquired by such Participant under the Plan. The initial Plan Administrator
shall be Deutsche Banc Alex.Brown.

         17. USE OF FUNDS. All payroll deductions received or held by the
Company under the Plan may be used by the Company for any corporate purpose, and
the Company shall not be obligated to segregate such payroll deductions.

         18. REPORTS. Individual accounts shall be maintained for each
Participant in the Plan. Statements of account shall be given to participating
Employees at least annually, which statements shall set forth the amounts of
payroll deductions, the Purchase Price, the number of shares purchased and the
remaining cash balance, if any.

         19. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, DISSOLUTION,
LIQUIDATION, MERGER OR ASSET SALE.

            a. CHANGES IN CAPITALIZATION. Subject to any required action by the
stockholders of the Company, the Reserves, the maximum number of shares each
Participant may purchase each Offering Period (pursuant to SECTION 7), as well
as the price per share and the number of shares of Common Stock covered by each
Option under the Plan which has not yet been exercised shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration". Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of shares of Common Stock subject to an Option.

            b. DISSOLUTION OR LIQUIDATION. In the event of the proposed
dissolution or liquidation of the Company, the Offering Period then in progress
shall be shortened by setting a new Exercise Date (the "Liquidation Exercise
Date"), and shall terminate immediately prior to the consummation of such
proposed dissolution or liquidation, unless provided otherwise by the Board. The
Liquidation Exercise Date shall be before the date of the Company's proposed
dissolution or liquidation. The Board shall notify each Participant in writing,
at least ten (10) business days prior to the Liquidation Exercise Date, that the
Exercise Date for the Participant's Option has been changed to the Liquidation
Exercise Date and that the Participant's Option shall be exercised automatically
on the Liquidation Exercise Date, unless prior to such date the Participant has
withdrawn from the Offering Period as provided in SECTION 10 hereof.

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            c. MERGER OR ASSET SALE. In the event of a proposed sale of all or
substantially all of the assets of the Company, or the merger of the Company
with or into another corporation, each outstanding Option shall be assumed, or
an equivalent Option substituted, by the successor corporation or a Parent or
Subsidiary of the successor corporation. In the event that the successor
corporation refuses to assume or substitute for the Option, the Offering Period
then in progress shall be shortened by setting a new Exercise Date (the "Merger
Exercise Date"). The Merger Exercise Date shall be before the date of the
Company's proposed sale or merger. The Board shall notify each Participant in
writing, at least ten (10) business days prior to the Merger Exercise Date, that
the Exercise Date for the Participant's Option has been changed to the Merger
Exercise Date and that the Participant's Option shall be exercised automatically
on the Merger Exercise Date, unless prior to such date the Participant has
withdrawn from the Offering Period as provided in SECTION 10 hereof.

         20. AMENDMENT OR TERMINATION.

            a. The Board of Directors of the Company may at any time and for any
reason terminate or amend the Plan. Except as provided in SECTION 19 hereof, no
such termination can affect Options previously granted. Except as provided in
SECTION 19 and this SECTION 20 hereof, no amendment may make any change in any
Option theretofore granted which adversely affects the rights of any
Participant. To the extent necessary to comply with Section 423 of the Code (or
any other applicable law, regulation or stock exchange rule), the Company shall
obtain stockholder approval in such a manner and to such a degree as required.

            b. Without stockholder consent and without regard to whether any
Participant rights may be considered to have been "adversely affected," the
Board (or its committee) shall be entitled to change the Offering Periods, limit
the frequency and/or number of changes in the amount withheld during an Offering
Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the
amount designated by a Participant in order to adjust for delays or mistakes in
the Company's processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting
procedures to ensure that amounts applied toward the purchase of Common Stock
for each Participant properly correspond with amounts withheld from the
Participant's Compensation, and establish such other limitations or procedures
as the Board (or its committee) determines in its sole discretion advisable
which are consistent with the Plan.

            c. The Board may, in its discretion, modify or amend the Plan to
adjust the percentage discount referenced in SECTION 1(P). Notwithstanding the
foregoing, however, such any such adjustment shall only be applied on a
prospective basis for Offering Periods beginning at least two (2) days after the
Board has announced such adjustment to the percentage discount. Such
modifications or amendments shall not require stockholder approval or the
consent of any Plan Participants.

         21. NOTICES. All notices or other communications by a Participant to
the Company under or in connection with the Plan shall be deemed to have been
duly given when received in the form specified by the Company at the location,
or by the person, designated by the Company for the receipt thereof.

         22. CONDITIONS UPON ISSUANCE OF SHARES.

            a. Shares shall not be issued with respect to an Option unless the
exercise of such Option and the issuance and delivery of such shares pursuant
thereto shall comply with all applicable provisions of law, domestic or foreign,
including, without limitation, the Securities Act of 1933, as

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amended, the Securities Exchange Act of 1934, as amended, state securities laws,
the rules and regulations promulgated thereunder, and the requirements of any
stock exchange upon which the shares may then be listed, and shall be further
subject to the approval of counsel for the Company with respect to such
compliance.

            b. As a condition to the exercise of an Option, the Company may
require the person exercising such Option to represent and warrant at the time
of any such exercise that the shares are being purchased only for investment and
without any present intention to sell or distribute such shares if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned applicable provisions of law.

         23. TERM OF PLAN. The Plan shall become effective upon the adoption of
the Plan by the Board, subject to approval by the holders of a majority of the
shares of Common Stock present and represented at any special or annual meeting
of the stockholders of the Company duly held within twelve (12) months after
such adoption of the Plan. The Plan shall continue in effect for a term of ten
(10) years from the date of adoption by the Board unless sooner terminated under
SECTION 20 hereof.

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                                    EXHIBIT A

                         WORLDGATE COMMUNICATIONS, INC.

                        2001 EMPLOYEE STOCK PURCHASE PLAN

                      ENROLLMENT / CHANGE FORM

     x
     o
     B   |_| Original Application Enrollment Date: _____/_____/_____

     e   |_| Change in Payroll Deduction Rate
     n
     O   |_| Hold Contributions - Stop Deductions and Hold Cash Balances

     k   |_| Cancel Enrollment - Stop Deductions and Refund Cash Balances
     c
     e   |_| Change of Beneficiary(ies)
     h
     C

         1. I hereby elect to participate in the WorldGate Communications, Inc.
2001 Employee Stock Purchase Plan (the "Employee Stock Purchase Plan") and
subscribe to purchase shares of Common Stock in accordance with this Enrollment
/ Change Form and the Employee Stock Purchase Plan.

         2. I hereby authorize payroll deductions from each paycheck in the
amount of ____% OF MY SALARY on each payday (from 0 to 15%), and ___% OF MY CASH
BONUS (from 0 to 15%), if I receive a bonus, during the Offering Period in
accordance with the Employee Stock Purchase Plan. (Please note that no
fractional percentages are permitted.)

         3. I understand that said payroll deductions shall be accumulated for
the purchase of shares of Common Stock at the applicable Purchase Price
determined in accordance with the Employee Stock Purchase Plan. I understand
that if I do not withdraw from an Offering Period, any accumulated payroll
deductions will be used to automatically exercise my Option.

         4. I have received a copy of the complete Employee Stock Purchase Plan.
I understand that my participation in the Employee Stock Purchase Plan is in all
respects subject to the terms of the Plan.

         5. Shares purchased for me under the Employee Stock Purchase Plan
should be issued in the name(s) of (circle one--Employee or Employee and Spouse
only).

         6. I understand that I cannot assign, transfer, sell or otherwise
dispose of shares of Common Stock purchased under the Plan until one year from
the beginning date of the period in which I acquired such shares. I also
understand that I must use Deutsche Banc Alex.Brown, the Plan Administrator, as
the broker for all transactions regarding shares acquired pursuant to the Plan.
I authorize Deutsche Banc Alex.Brown to disclose my name, address and securities
positions to corporations and other issuers in which I own securities, under a
U.S. Securities and Exchange

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Commission Rule designed to permit companies to communicate directly with the
non-objecting beneficial owners.

      7. I understand that if I dispose of any shares received by me pursuant to
the Plan within two (2) years after the Enrollment Date (the first day of the
Offering Period during which I purchased such shares), I will be treated for
federal income tax purposes as having received ordinary income at the time of
such disposition in an amount equal to the lesser of (i) the gain realized from
such sale or (ii) the excess of the fair market value of the shares at the time
such shares were purchased by me over the price which I paid for the shares. The
Company may, but will not be obligated to, withhold from my compensation the
amount necessary to meet any applicable tax withholding obligation resulting
from the sale or early disposition of Common Stock by me. If the compensation
remaining payable to me is insufficient to satisfy the tax withholding
obligations imposed upon the Company I will, upon request of the Company,
promptly pay any additional funds required by the Company to satisfy its tax
withholding obligations resulting from my disposition of Common Stock. I
understand that if I dispose of my shares of Common Stock more than two years
after the Enrollment Date I will be treated for federal income tax purposes as
recognizing ordinary income equal to the lesser of (i) the gain realized from
such sale or (ii) 15% of the fair market value of the shares on the Enrollment
Date. Any gain in excess of this amount will be treated as capital gain. I
UNDERSTAND THAT THE ABOVE FAVORABLE TAX PROVISIONS WILL NOT APPLY UNLESS THE
COMPANY'S STOCKHOLDERS APPROVE THE PLAN AT THE 2001 ANNUAL STOCKHOLDERS MEETING.
IF THE STOCKHOLDERS DO NOT APPROVE THE PLAN, I WILL BE TREATED FOR FEDERAL TAX
PURPOSES AS RECOGNIZING ORDINARY INCOME FOR THE 2001 TAX YEAR ON THE DIFFERENCE
BETWEEN THE FAIR MARKET VALUE ON THE EXERCISE DATE AND THE PURCHASE PRICE, EVEN
THOUGH I DO NOT SELL THE SHARES DURING THIS PERIOD.

      8. I hereby agree to be bound by the terms of the Employee Stock Purchase
Plan. The effectiveness of this Enrollment / Change Form is dependent upon my
eligibility to participate in the Employee Stock Purchase Plan. I understand
that all capitalized terms contained in this Enrollment / Change Form, but not
defined herein have the meanings set forth in the Employee Stock Purchase Plan.

                                     Page 2
<Page>

      9. In the event of my death, I hereby designate the following as my
beneficiary(ies) to receive all payments and shares due me under the Employee
Stock Purchase Plan:

                        Name:
                                      ---------------------------------------

                                     (First)         (Middle)          (Last)

                        Relationship:
                                      ---------------------------------------

                        Address:
                                      ---------------------------------------

      I UNDERSTAND THAT THIS ENROLLMENT / CHANGE FORM SHALL REMAIN IN EFFECT
THROUGHOUT SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME.

                  Name of Employee:
                                                     ------------------------
                                                          (Please Print)

                  Signature of Employee:
                                                     ------------------------

                  Date:
                                                     ------------------------

                  Employee's Social Security Number:
                                                     ------------------------

                  Employee's Address:
                                                     ------------------------

                                                     ------------------------

                                                     ------------------------
                  Spouse's Signature:
                                                     ------------------------
                                                     (Only required if
                                                     beneficiary other than
                                                     spouse)

                                     Page 3
<Page>

                                    EXHIBIT B

                         WORLDGATE COMMUNICATIONS, INC.

                        2001 EMPLOYEE STOCK PURCHASE PLAN

                              NOTICE OF WITHDRAWAL

      The undersigned Participant in the Offering Period of the WorldGate
Communications, Inc. 2001 Employee Stock Purchase Plan which began on
____________, 2001 (the "Enrollment Date") hereby notifies the Company that such
Participant hereby withdraws from the Offering Period. The undersigned
Participant hereby directs the Company to pay to the undersigned as promptly as
practicable all the payroll deductions credited to such Participant's account
with respect to such Offering Period. The undersigned Participant understands
and agrees that such Participant's Option for such Offering Period will be
automatically terminated. The undersigned Participant understands further that
no further payroll deductions will be made for the purchase of shares in the
current Offering Period and the undersigned shall be eligible to participate in
succeeding Offering Periods only by delivering to the Company a new Enrollment /
Change Form.

                  Name of Employee:
                                                     ------------------------
                                                          (Please Print)

                  Signature of Employee:
                                                     ------------------------

                  Date:
                                                     ------------------------

                  Employee's Social Security Number:
                                                     ------------------------

                  Employee's Address:
                                                     ------------------------

                                                     ------------------------

                                                     ------------------------<Page>

                                                                   Exhibit 10.12

                         TVGATEWAY MANAGEMENT AGREEMENT

      THIS TVGATEWAY MANAGEMENT AGREEMENT (this "Agreement") is made effective
as of July 24, 2000, by and between TVGATEWAY, LLC, a Delaware limited liability
company (the "Company"), and WORLDGATE SERVICE, INC., a Delaware corporation
("Manager").

      WHEREAS, Manager has licensed to the Company certain technology (the
"Licensed Technology") pursuant to that certain Service and License Agreement
between Manager and the Company dated the date hereof (the "License Agreement");

      WHEREAS, the Company plans to develop, for use by operators of
multi-channel video programming distribution systems ("MSOs"), server based
electronic television program guides, with the ability to link MSOs' customers
to the Internet, video on demand services and other products and such other
lines of business as the Company may engage in (the "Company Business") based
upon the Licensed Technology; and

      WHEREAS, the Company and Manager desire that Manager provide certain
management services to the Company in accordance with the terms and provisions
of this Agreement;

      THEREFORE, it is agreed as follows:

1.    APPOINTMENT. The Company hereby appoints Manager to supervise, manage and
conduct the day-to-day operations of the Company Business (the "Services") on
the terms and conditions set forth herein. Manager agrees to use its reasonable
best efforts to perform the Services in a businesslike manner in accordance, in
all material respects, with all policies and procedures concerning the Company
Business as may be established by the Company from time to time and in
accordance with customary professional standards.

2.    TERM. The initial term of this Agreement shall be effective as of the
date hereof (the "Effective Date") and shall expire on December 31, 2001,
unless extended, terminated or amended as hereinafter provided (the "Initial
Term"). This Agreement shall automatically be renewed for up to two (2)
successive additional terms of one (1) year upon the same terms and
conditions set forth herein, unless the Company provides written notice to
Manager at least 90 days prior to the expiration of the then-current term of
its election not to renew this Agreement.

3.    DUTIES OF MANAGER.

      3.1 During the term of this Agreement, Manager agrees, and is expressly
authorized on behalf of the Company, subject to the terms and conditions of this
Agreement and subject to further direction from the Board of Directors of the
Company, to take all steps reasonably necessary to perform the Budget (as
defined in Section 5), including, but not limited to, the following:

<Page>

          (a) to provide engineering and technical services to develop the
TVGateway Product and the Services Technology and to perform the porting
services, each as defined or as provided in the License Agreement;

          (b) to provide access to and use of its network operating center for
monitoring and otherwise administering the deployment and use of the TVGateway
Product, the Services Technology and for the Company Business;

          (c) to provide marketing, sales, customer service and administrative
services and support for the Company Business;

          (d) to provide access to and use of its office space for the conduct
of the Company Business;

          (e) to supervise the collection of income and other amounts due to the
Company;

          (f) to pay, in conformity with the Budget or otherwise in accordance
with Section 5, all expenditures incurred by Manager or the Company in the
ordinary course of operating the Company Business (including, without
limitation, payments with respect to revenue sharing, as set forth in Sections
I.B.6 and I(F) of the License Agreement); and to make all capital expenditures
in conformity with the Budget or otherwise in accordance with Section 5;

          (g) to implement and maintain such accounting and administrative
records, procedures and reports as is reasonable and customary and to keep, in
the name and for the account of the Company, full and adequate books of account
and other records (the "Records") reflecting the results of the operation of the
Company Business in accordance with generally accepted accounting principles and
procedures consistently applied;

          (h) to prepare, as necessary, any reports and other documents required
to be filed with governmental and regulatory agencies (other than with respect
to income or property tax matters), and act as liaison with federal, state and
local governmental and regulatory officials with respect thereto, and to provide
the Company on a timely basis all information necessary to prepare its federal,
state and local income tax and property tax returns;

          (i) to manage and operate the Company Business in compliance with
applicable law, in all material respects, including, but not limited to, the
Communications Act of 1934, as amended, and all rules and regulations
promulgated by the Federal Communications Commission thereunder; and

          (j) to employ, at its own discretion and as its employees or its
independent contractors (subject to budgeted expenses in accordance with Section
5), such persons ("Agents") as Manager should determine may be required in order
for Manager to efficiently perform its obligations under this Agreement;
provided, however, that the Company's Board of Directors may determine that any
prospective new Agent should be retained as an employee or independent
contractor of the Company in which case Manager shall use reasonable efforts to
retain such Agent as a Company employee or independent contractor.

<Page>

4.    LIMITATIONS ON THE POWER OF MANAGER.

      4.1 The Company will continue to own (subject to the intellectual property
licensed to the Company under the License Agreement) the Company Business and to
exercise ultimate control of the operation thereof.

      4.2 Manager shall not, without prior written authorization of the Company,
take any action that is not in the ordinary course of business (except as
contemplated in the Budget) for the Company Business. Without limiting the
foregoing, Manager agrees that it will not, without prior written authorization
from the Company:

          (a) cause the Company to institute, defend or settle litigation
involving the Company or apply for injunctive relief or give releases and
discharges with respect to any of the foregoing;

          (b) cause the Company to enter into any contract with Manager or any
affiliate of Manager;

          (c) incur indebtedness for borrowed money on behalf of or for which
the Company is liable;

          (d) sell or pledge any of the assets of the Company, other than the
sale of inventory in the ordinary course of business or the sale of worn out or
obsolete materials;

          (e) enter into (1) any affiliation agreement providing for operations
by the Company outside of the United States, (2) any affiliation agreement on
behalf of the Company with any of the companies (or their respective affiliates
or successors) listed on EXHIBIT A attached hereto, or (3) any other affiliation
agreement which is not substantially in a form which has already been approved
by the Company or at rates less favorable to the Company than rates which have
already been approved by the Company; or

          (f) subject to Section 5.2, incur any expenditure on the Company's
behalf not authorized in the Budget.

5.    BUDGET; REPORTS; RECORDS.

      5.1 Manager agrees to operate the Company Business in the ordinary course
of business consistent with the monthly operating budget (the "Budget") setting
forth the proposed expenditures for the development and operation of the Company
Business. The Budget through December 31, 2000 is set forth as EXHIBIT B
attached hereto. The Board of Directors, in its discretion and in consultation
with Manager, may determine to accelerate or decelerate the implementation of
its business plan or otherwise make additions or modifications to the Company's
business plan (collectively, "Business Plan Modifications"). Upon reasonable
notice to Manager that the Board of Directors has adopted a Business Plan
Modification, Manager shall revise the Budget (if applicable) commensurate with
any changes thereto, which changes shall be made in a manner consistent with the
methodology and assumptions used in the existing Budget. The revised Budget
shall then be presented to the Board of Directors for approval. If so approved,
Manager agrees to use its reasonable best efforts to implement the revised
Budget.

                                      -3-
<Page>

Manager shall not be obligated or authorized to take any action or incur any
expenses not contemplated in the Budget.

      5.2 To the extent that Manager reasonably believes that aggregate actual
expenditures for the fiscal year will exceed the aggregate budgeted amount or
the legal expenses will exceed the budgeted amount by 15% or more or capital
expenditures will exceed the budgeted amount by 5% or more, Manager shall submit
a written notice to the Company. Such written notice will state the reasons why
such excess expenditures are believed to be necessary, the amount by which the
expenditures are expected to exceed the budgeted amounts and the time frame
within which the excess expenditures are reasonably expected to become
necessary. The Company may reject or accept Manager's recommendations in whole
or in part by written notice to Manager. If the Company does not respond to
Manager's request within 20 days, the recommendations shall be deemed rejected.
To the extent that the Company accepts Manager's recommended changes, the Budget
then in effect will be deemed to be amended to reflect such changes. To the
extent that the Company rejects Manager's recommended changes, Manager shall not
be obligated or authorized to make such additional expenditures.

      5.3 By October 15, 2000, and by October 15th of each calendar year
thereafter during the term of this Agreement, Manager shall prepare and present
to the Board of Directors of the Company for its approval a Budget for the next
calendar year. The Budget shall describe how the Budget for the next calendar
year relates to the Company's rolling three-year business plan. In the event
that the Board of Directors of the Company cannot agree on an approved Budget
for the coming year, Manager shall operate the Company Business with respect to
the coming year under the last approved annual Budget, as adjusted to reflect
any commitments made with the approval of the Board of Directors of the Company
with respect to the coming calendar year.

      5.4 During the term of this Agreement, Manager shall prepare and deliver
to the Company, on a monthly basis, management and financial reports describing
the status of the operation of the Company Business, including compliance with
the Budget, and such other reports as may be reasonably requested by the
Company.

      5.5 Manager shall (a) make the Records available to the Company, its
agents, accountants and attorneys, during normal business hours, (b) promptly
respond to any questions of the Company with respect thereto and (c) assist and
cooperate with the Company's auditors in the conduct of any audit of the
Company.

      5.6 The Company may cause an audit to be made of the Records. At the
Company's option, any such audit may be conducted by a certified public
accountant of the Company's choice. Any such audit shall be conducted during
regular business hours at Manager's offices, upon the provision of notice of not
less than five business days to Manager, and in such manner so as not to
interfere with Manager's normal business activities. The Company shall bear the
cost of any such audit.

6.    COMPANY ACCOUNT. Persons designated by Manager (and approved by the
Company's Board of Directors) shall be authorized to draw checks or drafts upon
and make withdrawals from a bank account in the name of the Company for Company
expenditures up to such amount and according to procedures as may be determined
by the Board of Directors of the Company.

                                      -4-
<Page>

7.    INSURANCE. Manager shall maintain and manage on behalf of the Company,
during the term of this Agreement, general commercial liability insurance,
workers' compensation coverage (to the extent the Company has employees),
professional liability, errors and omissions and such other insurance coverages,
including insurance coverage for the protection of the Company's assets, as are
reasonably prudent and customary in light of the scope of its responsibilities
hereunder. This insurance shall be maintained at the cost and expense of the
Company and in accordance with the Budget.

8.    COMPENSATION OF MANAGER. In consideration for the performance of the
Services and the other agreements and covenants contained herein, the Company
shall pay Manager the fees set forth on EXHIBIT C attached hereto and
incorporated herein by this reference (the "Management Fee"). The Management Fee
shall be paid as set forth on EXHIBIT C.

9.    WORK MADE FOR HIRE. The "work made for hire" provisions in Section I.D of
the License Agreement shall be deemed to apply to the Services provided
hereunder.

10.   INDEMNIFICATION.

      10.1 BY THE COMPANY. The Company shall indemnify, defend and hold harmless
Manager and its owners, officers, directors, agents and employees from and
against any claims, losses, liabilities and demands of every kind and nature
whatsoever, including, without limitation, the costs of defending any such
claims, liabilities and demands, including, without limitation, attorneys' and
accountants' fees therefor, arising in connection with (a) a breach of this
Agreement by the Company or (b) Manager's authorized activities set forth
herein; provided, however, that the Company shall not be required to indemnify
or hold harmless Manager from any claims, losses, liabilities or demands which
arise from actions (or failures to act) which are performed in bad faith or
which arise out of willful misconduct, negligence or fraud by Manager, or any of
its owners, agents or employees.

      10.2 BY MANAGER. Manager shall indemnify, defend and hold harmless the
Company and its owners, officers, directors, agents and employees from and
against any claims, losses, liabilities and demands of every kind and nature
whatsoever, including, without limitation, the costs of defending any such
claims, liabilities and demands, including, without limitation, attorneys' and
accountants' fees therefor, arising in connection with (a) a breach of this
Agreement by Manager or (b) Manager's actions (or failure to act) which are
performed in bad faith or which arise out of gross negligence, willful
misconduct or fraud by Manager, or any of its owners, agents or employees.

      10.3 LIMITATION OF LIABILITY. THE COMPANY WILL NOT ASSERT ANY CLAIM
WHATSOEVER AGAINST MANAGER FOR LOSS OF ANTICIPATORY PROFITS OR ANY OTHER SPECIAL
OR CONSEQUENTIAL DAMAGES, UNLESS ANY SUCH CLAIM IS CAUSED BY THE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OF MANAGER. MANAGER WILL NOT ASSERT ANY CLAIM
WHATSOEVER AGAINST THE COMPANY FOR LOSS OF ANTICIPATORY PROFITS OR ANY OTHER
SPECIAL OR CONSEQUENTIAL DAMAGES, UNLESS ANY SUCH CLAIM IS CAUSED BY THE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OF THE COMPANY.

                                      -5-
<Page>

11.   TERMINATION.

      11.1 This Agreement may be terminated by the Company upon the occurrence
of any of the following events:

           (a) Manager breaches any of the terms of this Agreement (subject to
the right of Manager to cure within 30 days after written notice of such breach
is received by Manager from the Company);

           (b) Manager commits any act constituting bad faith, fraud, gross
negligence or willful misconduct or makes a material misrepresentation to the
Company;

           (c) the bankruptcy or dissolution of Manager;

           (d) the expiration of the Transition Period (as defined in Section
12);

           (e) upon 30 days' written notice, in the event that the Board of
Directors of the Company has resolved to dissolve the Company; or

           (f) upon 60 days' written notice, in the event that the Board of
Directors determines to sell the Company or substantially all of its assets.

      11.2 This Agreement may be terminated by Manager upon the occurrence of
any of the following events:

           (a) the Company breaches any of the terms of this Agreement (subject
to the right of the Company to cure within 30 days (10 days for payment
defaults) after written notice of such breach is received by the Company from
Manager);

           (b) the Company commits any act constituting bad faith, fraud, gross
negligence or willful misconduct or makes a material misrepresentation to
Manager;

           (c) the expiration of the Transition Period (as defined in Section
12);

           (d) upon 30 days written notice, in the event that the Board of
Directors of the Company has resolved to dissolve the Company; or

           (e) the bankruptcy or dissolution of the Company.

      11.3 Subject to any special instructions by the Company, upon termination
of this Agreement, Manager shall immediately relinquish to the Company, or its
designee, possession and control of all property of the Company, including, but
not limited to, (a) the physical plant and equipment and (b) all documents,
records and data pertaining to the Company Business. With respect to any
property jointly owned by the Company and Manager, the parties shall make
reasonable arrangements such that both parties receive the benefits of such
jointly-owned property.

                                      -6-
<Page>

12.   TRANSITION. Upon the receipt of notice after [information redacted] ##
from the Company's Board of Directors from time to time or at any time, Manager
agrees that it will take all reasonably necessary steps to provide for a
transition (a "Transition") of some or all of the Services provided hereunder
from Manager and its Agents to the Company and its Agents within 120 days from
the receipt of such notice (the "Transition Period"); provided, however, that
the Transition Period may be extended (subject to Section 2) as reasonably
determined by the Company in consultation with the Manager. The Company agrees
to cooperate with Manager in implementing each Transition. As part of the
Transition, Manager and the Company shall determine which employees of Manager
shall be transferred to the Company, and Manager shall recruit (in accordance
with the Budget) any additional employees required by the Company. As part of
each Transition, Manager shall establish, in consultation with the Company,
payroll and accounting systems, employee benefit plans and other required
administrative and technical systems. Except for those services for which the
Company determines shall continue after a Transition Period (the "Retained
Services") (which shall include, but may not be limited to, the Services set
forth in Section 3.1(b)), this Agreement shall expire and be of no further force
and effect at the end of the Transition Period. After the Transition Period,
Manager shall receive a reasonable Management Fee to be agreed to by the parties
in good faith, commensurate with the level of Retained Services and consistent
with the methodology of determining the Management Fee for the Services under
this Agreement. In addition to the foregoing, the Company shall have the right
to have Manager continue to provide the Services set forth in Section 3.1(b) for
a period of five (5) years from the Effective Date at a reasonable Management
Fee to be agreed to by the parties in good faith, commensurate with the level of
3.1(b) Services being provided and consistent with the methodology of
determining the Management Fee for the Services provided under this Agreement.

13.   CONFIDENTIALITY.

      13.1 The recipient of any information of the other party hereunder that is
marked or otherwise indicated in advance of the receipt thereof as being
confidential, including for purposes hereof the terms of this Agreement (the
"confidential information"), agrees to safeguard the confidentiality of such
confidential information by applying policies and procedures adequate for that
purpose, including, without limitation, restricting the disclosure of this
confidential information to employees and consultants needing to know the same
for the purpose of this Agreement, who have agreed in writing to safeguard such
confidential information in a manner consistent with the provisions of this
Section 13. The recipient shall not disclose any such confidential information
to any other person, firm or corporation, or use the same except for the purpose
stated hereinabove, and shall exercise at least the same degree of care to guard
against disclosure or unauthorized use of such confidential information, as the
recipient employs with respect to its own confidential information, but in no
event less than reasonable care.

      13.2 The recipient shall have no obligation of confidentiality hereunder
with respect to any information which:

----------------------
## The information contained in this portion of the Management Agreement has
been omitted and filed separately with the Securities and Exchange Commission
pursuant to a request for confidential treatment.

                                      -7-
<Page>

           (a) is already properly known to the recipient other than as a result
of a prior confidential disclosure by the disclosing party;

           (b) is or becomes publicly known otherwise than by the recipient's
(or someone receiving the information from the recipient) fault or breach of
this Agreement;

           (c) is rightfully received by the recipient without restriction from
a third party who is not under an obligation of confidentiality, directly or
indirectly, to the disclosing party;

           (d) is independently developed by the recipient without benefit of
the confidential information received hereunder;

           (e) is approved for release in writing by the disclosing party; or

           (f) is required to be disclosed by the recipient pursuant to law or
judicial or regulatory action; provided that the disclosing party is promptly
notified at the time such action is initiated and the recipient fully cooperates
with the disclosing party in seeking continued confidential treatment of such
information to the extent possible.

      13.3 Except as may be reasonably required by applicable law, regulation or
court order, the parties agree that neither of them shall publicly divulge or
announce, or in any manner disclose to any third party, other than its attorneys
and accountants and other than in connection with a proposed business
combination or other proposed sale of a party or all or substantially all the
assets of a party, the existence of this Agreement or any of the specific terms
and conditions of this Agreement, including, without limitation, the fees
payable hereunder, and the parties further warrant and agree that none of their
officers, directors or employees will do so without the prior written consent of
the other party.

14.   MISCELLANEOUS.

      14.1 All notices and communications hereunder shall be in writing and
shall be deemed to have been duly given to a party hereunder when delivered in
person, via messenger service or by telecopy to such party, or three (3)
business days after being deposited in the U.S. Mail, registered or certified,
with postage prepaid, addressed as follows (or such other address as the parties
may designate in writing):

      If to Manager:          WorldGate Service, Inc.
                              3190 Tremont Avenue, Suite 100
                              Trevose, PA 19053
                              Attn:  General Counsel
                              Facsimile:  215-354-1049

                                      -8-
<Page>

      with a copy to (which shall not constitute notice):

                              Drinker Biddle & Reath LLP
                              1000 Westlakes Drive, Suite 300
                              Berwyn, PA 19312-2409
                              Attn:  Walter J. Mostek, Jr., Esq.
                              Facsimile:  610-993-8585

      If to the Company:      TVGateway, LLC
                              3190 Tremont Avenue, Suite 100
                              Trevose, PA 19053
                              Attn:  General Manager
                              Facsimile:  215-354-1049

      with a copy to counsel as designated by the Company from time to time
      (which shall not constitute notice).

      14.2 Any consent or approval of the Company required pursuant to the terms
of this Agreement shall be in writing.

      14.3 No party hereto shall have the right to assign this Agreement without
the written consent of the other party, except that either party shall have a
right to assign this Agreement to any Affiliate of or successor entity to such
party or, in the case of the Company, to the Company Business.

      14.4 This Agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective successors and assigns.

      14.5 This Agreement may not be modified, altered or amended in any manner
except by an agreement in writing, duly executed by all parties hereto.

      14.6 The relationship of Manager and the Company established by this
Agreement is one of independent contractors. Manager and the Company shall not
by virtue of this Agreement, be deemed partners, joint venturers or
co-employers, nor shall Manager be deemed to be the agent or employee of the
Company. Manager shall not, by entering into and performing this Agreement,
incur any liability for any of the existing obligations, liabilities or debts of
the Company, and Manager shall not, by acting hereunder, assume or become liable
for any of the future obligations, liabilities or debts of the Company. It is
understood and agreed that all Agents employed by Manager pursuant to Section
3.1(j) shall be Agents of and under the sole supervision, direction and control
of Manager. Manager further agrees (a) to comply, as an employer, with all of
the applicable requirements of federal, state and local laws, rules and
regulations, including, without limitation, all applicable social security,
unemployment compensation and workers' compensation laws, and (b) to collect,
report and pay all taxes required to be paid pursuant to such laws by reason of
the employment of such Agents.

                                      -9-
<Page>

      14.7 All matters affecting the interpretation of this Agreement and the
rights of the parties hereto shall be governed by the laws of the State of
Delaware, without regard to its conflict of law principles.

      14.8 Each of the respective rights and obligations of the parties
hereunder shall be deemed independent and may be enforced independently
irrespective of any of the other rights and obligations set forth herein. No
waivers, express or implied, by either party of any breach of any of the
covenants, agreements or duties hereunder of the other party shall be deemed to
be a waiver of any other breach thereof or the waiver of any other covenant,
agreement or duty.

      14.9 This Agreement contains the entire understanding of the parties with
respect to the subject matter hereof, and the parties hereto hereby acknowledge
that there have not been, and are no, representations, warranties, covenants or
understandings other than those expressly set forth herein and therein which
relate to the subject matter hereof.

                      [Signatures Appear on Following Page]

                                      -10-
<Page>

      IN WITNESS WHEREOF, the parties hereto have executed this TVGateway
Management Agreement as of the date first written above.

                                    TVGATEWAY, LLC

                                    By:  /s/ Randall J. Gort
                                        -------------------------------
                                    Name:    Randall J. Gort
                                          -----------------------------
                                    Title:   Agent
                                          -----------------------------

                                    WORLDGATE SERVICE, INC.

                                    By:  /s/ Peter Mondics
                                        -------------------------------
                                    Name:    Peter Mondics
                                          -----------------------------
                                    Title:   Vice President
                                          -----------------------------

                                      -11-
<Page>

                                    EXHIBIT A
                                    ---------

                           [Information redacted] # #

--------------------
## The information contained in this portion of the Exhibit has been omitted and
filed separately with the Securities and Exchange Commission pursuant to a
request for confidential treatment.

<Page>

                                    EXHIBIT B
                                    ---------

                                 Initial Budget

                           [Information redacted] # #

---------------------
## The information contained in this portion of the Exhibit has been omitted and
filed separately with the Securities and Exchange Commission pursuant to a
request for confidential treatment.

<Page>

                                    EXHIBIT C
                                    ---------

                         TVGATEWAY MANAGEMENT AGREEMENT

1.    MANAGEMENT FEE. In accordance with the initial Budget, the Company shall
pay Manager a monthly management fee (the "Management Fee") equal to the amount
of the management fee provided for in the initial Budget divided by the number
of months contemplated by such budget. On a quarterly basis, the Manager will
receive (to the extent applicable) an adjustment of the year-to-date Management
Fees paid pursuant to the initial Budget computation. The adjustment will be
paid in an amount calculated as [information redacted] ## of the increase in the
variable costs of [information redacted] ## plus [information redacted] ## of
any budget increases to the initial Budget amounts for other "Applicable
Component" expense categories. As part of the annual Budget process set forth in
Section 5.3 of this Agreement, the parties shall in good faith negotiate any
increase or decrease in the Management Fee for the next year to reflect any
increase or decrease in the level of Services to be provided by Manager. In the
event that the parties cannot reach agreement in any year, the Management Fee
for such year shall be equal to [information redacted] ## of the aggregate
amount of the "Applicable Components" in the Budget. "Applicable Components"
shall mean the components or categories of the Budget listed on Annex 1 to this
Exhibit C.

2.    The Management Fee shall be paid on the 15th day of each month. Manager
may pay itself the Management Fee from the Company's bank account; provided,
however, that such payment shall not preclude further review by the Board of
Directors of the Management Fees paid hereunder.

-------------------------
## The information contained in this portion of the Exhibit has been omitted and
filed separately with the Securities and Exchange Commission pursuant to a
request for confidential treatment.

<Page>

                              ANNEX 1 TO EXHIBIT C
                              --------------------

                              APPLICABLE COMPONENTS

                           [Information redacted] # #

-------------------------
## The information contained in this portion of the Annex to the Exhibit has
been omitted and filed separately with the Securities and Exchange Commission
pursuant to a request for confidential treatment.

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