Document:

STOCK PURCHASE AGREEMENT

      THIS STOCK PURCHASE AGREEMENT (the "Agreement") is dated the 10th day of
March, 2005, by and between Zone4Play Inc., a Nevada company (the "Buyer"), and
Netfun Ltd., an Israeli company, Reg. No. 513039982. (the "Seller").

      WHEREAS, Buyer and Seller, pursuant to a Joint Venture Agreement (the "JV
Agreement") dated June 1, 2004, a copy of which is attached hereto as Exhibit A,
established Mix TV Ltd., an Israeli company (the "Company"), Reg. No. 513552950,
maintaining an office at Atidim Park, Bldg 2, Tel Aviv, Israel;

      WHEREAS, Buyer and Seller have decided to terminate the JV Agreement by
executing the JV Termination Agreement in the form attached hereto as Exhibit B,
immediately prior to the Closing Date (as defined below).

      WHEREAS, Seller desires to exchange with Buyer, and Buyer desires to
exchange with Seller, 499 ordinary shares of the Company, for the consideration
and upon the terms and subject to the conditions hereinafter set forth.

      NOW, THEREFORE, in consideration of the premises, the provisions and the
respective agreements hereinafter set forth, the parties hereto hereby agree as
follows:

1.    Purchase and Sale of Stock.

      1.1 Agreement to Purchase and Sell. Upon the terms and subject to the
conditions set forth in this Agreement and upon the representations and
warranties made herein by each of the parties to the other, on the Closing Date
(as such term is hereinafter defined), Seller shall exchange and deliver to
Buyer, and Buyer shall acquire from Seller, 499 ordinary shares, par value NIS
0.01 per share, of the Company (the "Purchased Shares"), representing 49.9% of
the Company's issued and outstanding shares.

      1.2 Purchase Price. Upon the terms and subject to the conditions set forth
in this Agreement, in reliance upon the representations, warranties, covenants
and agreements of the Seller contained herein, and in exchange for the Purchased
Shares, Buyer agrees to deliver to Seller a total of 625,000 shares of common
stock of Buyer (such number of shares having an aggregate value of $1,000,000
based upon the closing bid price of the share of common stock of the Buyer on
March 4th 2005 on the OTCBB), ("Buyer's Shares or the "Shares") to be issued to
the Seller upon the terms and subject to the conditions herein (the "Purchase
Price").

      If, at any time or from time to time, there is any stock dividend, stock
split, recapitalization, or other similar change or adjustment made with respect
to the outstanding securities of the Buyer, the Shares shall be subject to such
adjustment.

      1.3 Payment of Purchase Price. The Buyer's Shares shall be issued pursuant
to Section 1.5.6.

      1.4 Closing. The closing of the transaction contemplated herein (the
"Closing") will be at the office of Buyer on or before March 24, 2005, or at
such other place or at such other date and time as

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Seller and Buyer may mutually agree. Such date and time of Closing is herein
referred to as the "Closing Date."

      1.5 Transactions at Closing.

            1.5.1 Seller and Buyer shall execute and deliver the JV Termination
Agreement.

            1.5.2 Abramovich Trust Company Ltd. (the "Trustee") shall deliver to
Seller a share transfer deed signed by Trustee affecting the transfer of 299
ordinary shares of the Company to the name of Seller in the form attached hereto
as Exhibit C1, as per the terms of the Trustee Instructions attached hereto as
Exhibit C2.

            1.5.3 Seller shall deliver to Buyer a share transfer deed signed by
the Seller affecting the transfer of the Purchased Shares to the name of the
Buyer in the form attached hereto as Exhibit D.

            1.5.4 Buyer, on behalf of the Company, and Mr. Haim Cario ("Cario")
shall execute an Employment Agreement with the Company in the form attached
hereto as Exhibit E.

            1.5.5 Seller shall deliver to Buyer an Assignment Agreement to the
Company signed by Cario, assigning to the Company all of Carios's rights and
interests in and to Patent No. _________ and all related intellectual property
rights, and releasing the Company and Buyer from all claims in relation to the
Company intellectual property rights, in the form attached hereto as Exhibit F.

            1.5.6 Buyer shall issue Buyer's Shares to Seller and deliver or
cause to be delivered to Seller a share certificate representing such Shares.

            1.5.7 Buyer shall deliver to Seller a certificate of an officer of
the Buyer certifying resolutions of its Board of Directors authorizing execution
of this Agreement and the execution, performance and delivery of all agreements,
documents and transactions contemplated hereby.

            1.5.8 Seller shall deliver to Buyer a certificate of an officer of
the Seller certifying resolutions of its Board of Directors authorizing
execution of this Agreement and the execution, performance and delivery of all
agreements, documents and transactions contemplated hereby

2.    Representations and Warranties of Seller. Seller represents and warrants
      to Buyer as follows:

      2.1 Authorization; Validity and Effect of Agreements. The execution and
delivery of this Agreement and all agreements and documents contemplated hereby
by the Seller, and the consummation by it of the transactions contemplated
hereby, have been duly authorized by all requisite corporate action. This
Agreement constitutes, and all agreements and documents contemplated hereby when
executed and delivered pursuant hereto will constitute, the valid and legally
binding obligations of the Seller enforceable in accordance with their terms.

      2.2 Title to Purchased Shares. The Purchased Shares are duly authorized,
validly issued, fully paid and nonassessable and are owned by Seller free and
clear of all liens, encumbrances, charges, assessments and adverse claims. The
Purchased Shares are subject to no restrictions with respect to transferability
to Buyer in accordance with the terms of this Agreement. Upon transfer of the
Purchased Shares by Seller, Buyer will, as a result, receive good and marketable
title to all of the Purchased Shares, free and clear of all security interests,
liens, encumbrances, charges, assessments, restrictions and adverse claims.

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      2.3 No Other Rights or Claims. Upon transfer of the Purchased Shares by
Seller, Seller will have no further rights with respect to the Company or any
claims against the Company except for the right to enforce the terms and
conditions of this Agreement. Upon the transfer of the Purchased Shares by
Seller, Seller hereby releases the Buyer and its, directors, officer, agents and
employees from all claims of any kind whatsoever that in any way relate directly
or indirectly to the Company, including any claims for the distribution of
capital accounts or profits.

      2.4 Securities Act Matters.

      2.4.1 The Seller acknowledges and agrees that the Shares have not been
registered under the U.S. Securities Act of 1933, as amended, and the rules and
regulations of the Securities and Exchange Commission thereunder (collectively,
the "Securities Act") or under the securities laws of any state in the United
States, in reliance upon certain exemptive provisions of such statutes. The
Seller further recognizes and acknowledges that, because the said Shares have
not been registered, they may only be resold, assigned, transferred, pledged or
otherwise disposed of pursuant to an effective registration statement under the
Securities Act, or pursuant to a valid exemption from such registration
requirements. The Seller recognizes and acknowledges that Rule 144 promulgated
under the Securities Act ("Rule 144") (which facilitates routine sales of
securities in accordance with the terms and conditions of that Rule, including a
holding period requirement) is not now available for resale of the Shares, and
the Seller recognizes and acknowledges that, in the absence of the availability
of Rule 144, a sale pursuant to a claim of exemption from registration under the
Securities Act would require compliance with some other exemption under the
Securities Act, none of which are currently available.

            2.4.2 The Seller further acknowledges and agrees as follows:

            (i) The Seller understands that an investment in the Shares involves
a high degree of risk.

            (ii) The Seller is acquiring the Shares solely for the Seller's
account and not with a present view toward resale or other distribution thereof,
though the Seller shall be permitted to dispose of the Shares in any lawful way
including the distribution of the Shares as a dividend to its shareholders, if
permitted under Section 6.3 of this Agreement.

            (iii) The Buyer has made available to the Seller the opportunity to
ask questions of and receive complete and correct answers from representatives
of the Buyer concerning the business and financial condition of the Buyer and to
obtain any additional information relating thereto, all questions have been
answered to the Seller's satisfaction and the Seller has obtained such
information relating to the Buyer as deemed necessary to make an investment
decision regarding the Shares. The Seller has reviewed the Buyer's filings with
the U.S. Securities and Exchange Commission available at www.sec.gov.

            (iv) The Seller understands that the Seller must bear the economic
risk of its investment in the Shares for an indefinite period of time.

            (v) All aspects of the transactions contemplated by this Agreement
and all discussions related thereto took place in Israel.

            (vi) The Seller has not been formed by a U.S. person principally for
the purpose of investing in securities not registered under the Securities Act.

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3.    Representations and Warranties of Buyer. Buyer represents and warrants to
      Seller as follows:

      3.1 Authorization; Validity and Effect of Agreements. The execution and
delivery of this Agreement and all agreements and documents contemplated hereby
by Buyer, and the consummation by it of the transactions contemplated hereby,
have been duly authorized by all requisite corporate action. This Agreement
constitutes, and all agreements and documents contemplated hereby when executed
and delivered pursuant hereto will constitute, the valid and legally binding
obligations of Buyer enforceable in accordance with their terms.

      3.2 The execution, delivery and performance by it of this Agreement will
at all times comply with all applicable laws and regulations including those of
applicable regulatory and self-regulatory organizations

      3.3 The Buyer's Shares, when issued at the Closing, will be validly
issued, fully paid, non-assessable, free and clear of any leans, encumbrances or
third party rights.

      3.4 The authorized capital stock of the Buyer and the shares thereof
currently issued and outstanding are as set out in Exhibit H hereto. All of the
Buyer's outstanding shares have been duly and validly authorized.

      3.5 Based on Seller's representation hereof, the offer and/or issuance of
the Shares to the Seller comply with all Federal securities Laws and no holder
of shares of Buyer has a right of recession or claim against the Buyer in this
respect.

      3.6 The Buyer's shares of Common Stock are registered pursuant to section
12 (g) to the Securities Exchange Act of 1934 ("Securities Exchange Act") and
are traded on the OTC Bulletin Board market and the Buyer is not aware of any
reason or attempt for the delisting of the Buyer shares. The Buyer has timely
filed all report, schedules, forms, statements and other documents required to
be filed by it with the Securities and Exchange Commission pursuant to the
reporting requirements of the Exchange Act (hereinbefore referred to as
"Commission Documents") and if so failed to file such Commission Documents, the
failure shall not cause a material adverse effect upon the condition (financial
or otherwise), earnings, business or business prospects, properties or
operations of the Buyer and its subsidiaries (taken as a whole). The Commission
Documents do not contain any untrue or misleading statement of a material fact.

      3.7 Since the last filing of the Commission Documents, to the Buyer's
knowledge, there has been no material adverse effect to the Buyer or its
business.

4.    Registration of Shares. The Seller hereby declares its intent to sell the
Shares pursuant to the exclusions as per Rule 144 to the Act, and subject to the
required holding period. The Buyer undertakes to assist the Seller as shall be
required in order to facilitate the sale of the Shares by the Seller under Rule
144. Without limiting the generality of the above, the Buyer undertakes as
follows:

      (a) Subject to compliance with the requirements of Rule 144, when the
Seller wishes to sell Shares, to provide the transfer agent of the Buyer, within
3 business days upon demand by the Seller, of an opinion or opinions, as the
case may be, of the Buyer counsel, consenting to the removal of the legend set
out in section 6.3 below from the Shares, and other issues which may be required
in order to facilitate the sale of the Shares to the public.

      (b) The Buyer shall use its best efforts to maintain adequate current
information of the Buyer and fully comply with all Securities Exchange Act
reporting requirements in order to render Rule 144 exemption available for the
sale of the Shares.

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<PAGE>

5.    Conditions of Closing.

      5.1 Buyer's Conditions of Closing. The obligation of Buyer to purchase and
pay for the Purchased Shares shall be subject to and conditioned upon the
satisfaction (or waiver by Buyer) at the Closing of each of the following
conditions:

            (A) All representations and warranties of the Seller contained in
this Agreement shall be true and correct at and as of the Closing Date.

            (B) Seller shall have delivered to Buyer certificates and other
instruments representing the Purchased Shares, together with all other documents
necessary or appropriate to validly transfer the Purchased Shares to Buyer free
and clear of all security interests, liens, encumbrances and adverse claims.

            (C) Seller shall have delivered to Buyer a certificate of an officer
of the Seller certifying resolutions of its Board of Directors authorizing
execution of this Agreement and the execution, performance and delivery of all
agreements, documents and transactions contemplated hereby:

      5.2 Seller's Conditions of Closing. The obligation of Seller to sell the
Company Shares shall be subject to and conditioned upon the satisfaction (or
waiver by Seller) at the Closing of each of the following conditions:

            (A) All representations and warranties of Buyer contained in this
Agreement shall be true and correct at and as of the Closing Date.

            (B) Buyer shall have effected payment of the Purchase Price in
accordance with Section 1.3 of this Agreement by delivering to Seller
certificates and other instruments representing Buyer's Shares.

            (C) Buyer shall have delivered to Seller a certificate of an officer
of the Buyer certifying resolutions of its Board of Directors authorizing
execution of this Agreement and the execution, performance and delivery of all
agreements, documents and transactions contemplated hereby:

6.    Affirmative Covenants.

      6.1 Non-Competition. Seller will undertake, and will cause the current
individual and beneficial shareholders of Seller to undertake not to, directly
or indirectly, either as an employee, employer, consultant, agent, principal,
partner, stockholder, corporate officer, director or in any other individual or
representative capacity, engage or participate or invest in, or become employed
by or render service or advice to, any business that is in direct competition
with the business of the Company for a period of three years from the date of
this Agreement, except upon express written consent of Company. For avoidance of
doubt and for the purposes of this agreement, direct competition shall be
considered as all SMSTV and/or Mobile Messaging TV applications incorporating
the use of mobile/handheld and/or linear telephones in the creation and
production of Enhanced and/or single-screen TV applications for broadcast TV as
well as any interactive game technology.

      6.2 Non-Solicitation. Seller will undertake and will cause the current
individual and beneficial shareholders of Seller to undertake not to, for a
period of three years from the date of this Agreement, directly or indirectly:

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            6.2.1 Influence or attempt to influence customers or suppliers of
Company, or any of its subsidiaries or affiliates, to divert their business to
any competitor of Company, and

            6.2.2 solicit or recruit any employee of Company for the purpose of
being employed by him or by a competitor of Company and that he will not convey
any confidential information about other employees of Company to any other
person.

      6.3 Transfer Restrictions. Seller undertakes and agrees that, Seller will
retain its entire interest in, and will not dispose or agree to dispose of any
interest in the Shares, unless pursuant to an effective registration statement
under the Securities Act covering the shares, or pursuant to a valid exemption
from such registration requirements. In addition, Seller agrees not to engage,
directly or indirectly, in any hedging transaction with respect to the Shares.
Any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of the
Buyer's Shares in contravention of the terms set out in this Agreement is void.

      Seller agrees to the imprinting, so long as is required by applicable law
and the terms of this Agreement, of legends on the Shares in the following form:

      THESE SHARES HAVE NOT BEEN REGISTERED WITH THE U.S. SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN THE UNITED
STATES IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED
OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION
OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE
REASONABLY ACCEPTABLE TO THE COMPANY.

      Seller hereby acknowledges that the Buyer's Shares may only be disposed of
in compliance with U.S. state and federal securities laws. In connection with
any transfer of Buyer's Shares, Buyer may require the transferor thereof to
provide to Buyer an opinion of counsel selected by the transferor and reasonably
acceptable to Buyer, the form and substance of such opinion shall be reasonably
satisfactory to Buyer, to the effect that such transfer does not require
registration of such transferred shares under the U.S. Securities Act of 1933,
as amended.

      6.4   Taxes and Expenses.

            6.4.1 Seller hereby covenants and agrees to assume and pay all taxes
imposed on Seller arising from or relating to the transactions as contemplated
by this Agreement. Except as otherwise specifically provided for in this
Agreement, Seller shall be responsible for and shall pay all costs, liabilities
and other obligations incurred by Seller in connection with the performance of
and compliance with all transactions, agreements and conditions contained in
this Agreement to be performed or complied with by Seller, including legal and
accounting fees. In no event shall any of such taxes, costs, liabilities or
other obligations be paid by or incurred on behalf of the Buyer or the Company.

            6.4.2 Except as otherwise specifically provided for in this
Agreement, Buyer will assume and pay all costs, liabilities and other
obligations incurred by Buyer and/or the Company in

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connection with the performance of and compliance with all transactions,
agreements and conditions contained in this Agreement to be performed or
complied with by Buyer, including legal and accounting fees.

7.    Miscellaneous.

      7.1 Notice. Any notice required or permitted hereunder shall be in writing
and shall be sufficiently given if personally delivered or mailed by certified
or registered mail, return receipt requested, addressed as follows:

            If to Buyer:

            If to  Seller:  Shai  Granot,  7  Menachem  Begin St.  Ramat  Gan,
Israel 52521, fax no. 972-3 5755527

(or to such other address as any party shall specify by written notice so
given), and shall be deemed to have been delivered as of the date so personally
delivered or mailed.

      7.2 Binding Effect; Benefits. This Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective heirs,
successors, executors, administrators and assigns. Neither this Agreement nor
any of the parties' rights hereunder shall be assignable by any party hereto
without the prior written consent of the other parties hereto.

      7.3 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Israel exclusive of the conflict of law
provisions thereof.

      7.4 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same instrument.

      7.5 Incorporation of Exhibits and Schedules. All Exhibits and Schedules
attached hereto are by this reference incorporated herein and made a part hereof
for all purposes as if fully set forth herein.

      IN WITNESS WHEREOF, the parties have executed this Agreement and caused
the same to be duly delivered on their behalf on the day and year first above
written.

SELLER:

NetFun Ltd.

By:        /s/ Shai Granot
          -------------------------
Name:     Shai Granot
          -------------------------
Title     Director
          -------------------------

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BUYER:

Zone4Play Inc.

By:        /s/ Shimon Citron
          -------------------------
Name:     Shimon Citron
          -------------------------
Title     CEO
          -------------------------

                                    EXHIBITS

The following exhibits have been omitted and will be supplementally furnished to
the Securities and Exchange Commission upon request:

Exhibit A - Joint Venture Agreement
Exhibit B - JV Termination Agreement
Exhibit C1 - share transfer deed signed by Trustee
Exhibit C2 - Trustee Instructions
Exhibit D - share transfer deed signed by the Seller
Exhibit E -Employment Agreement
Exhibit F - Assignment Agreement
Exhibit G - Intentionally Deleted
Exhibit H - The issued and outstanding authorized capital stock of the Buyer

                                        8
<PAGE>EXHIBIT 4.1

NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT")
OR ANY OTHER APPLICABLE STATE SECURITIES LAWS IN RELIANCE UPON AN EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT PURSUANT TO SECTION 4(2)
THEREOF AND SUCH OTHER SECURITIES LAWS. NEITHER THIS WARRANT NOR THE SHARES
ISSUABLE UPON EXERCISE HEREOF MAY BE SOLD, PLEDGED, TRANSFERRED, ENCUMBERED OR
OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION
UNDER THE PROVISIONS OF THE SECURITIES ACT OR ANY APPLICABLE STATE LAWS. THIS
WARRANT MAY NOT BE EXERCISED BY OR ON BEHALF OF A UNITED STATES PERSON UNLESS
REGISTERED UNDER THE SECURITIES ACT OR AN EXEMPTION FROM SUCH REGISTRATION IS
AVAILABLE.

                             STOCK PURCHASE WARRANT

                 To Purchase 3,000,000 Shares of Common Stock of

                             A.B. WATLEY GROUP INC.

      THIS CERTIFIES that, for value received, Blue Marble Investments Ltd. (the
      "Holder"), is entitled, upon the terms and subject to the limitations on
      exercise and the conditions hereinafter set forth, at any time on or after
      March 8, 2006 (the "Initial Exercise Date") and on or prior to the close
      of business on March 8, 2016 (the "Termination Date") but not thereafter,
      to subscribe for and purchase from A.B. Watley Group Inc., a corporation
      incorporated in the State of Delaware (the "Company"), up to 3,000,000
      shares (the "Warrant Shares") of Common Stock, $0.001 par value, of the
      Company (the "Common Stock"). The purchase price of one share of Common
      Stock (the "Exercise Price") under this Warrant shall be $0.01. The
      Exercise Price and the number of shares for which the Warrant is
      exercisable shall be subject to adjustment as provided herein.

      Title to Warrant. Prior to the Termination Date and subject to compliance
      with applicable laws, this Warrant and all rights hereunder are
      transferable, in whole or in part, at the office or agency of the Company
      by the Holder hereof in person or by duly authorized attorney, upon
      surrender of this Warrant together with the Assignment Form annexed hereto
      properly endorsed.

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      1. Authorization of Shares. The Company covenants that all shares of
Common Stock which may be issued upon the exercise of the purchase rights
represented by this Warrant will, upon exercise of the purchase rights
represented by this Warrant, be duly authorized, validly issued, fully paid and
nonassessable and free from all taxes, liens and charges in respect of the issue
thereof (other than taxes in respect of any transfer occurring contemporaneously
with such issue).

      2. Exercise of Warrant.

            (a) Exercise of the purchase rights represented by this Warrant may
be made at any time or times on or after the Initial Exercise Date, and before
the close of business on the Termination Date by the surrender of this Warrant
and the Notice of Exercise annexed hereto duly executed, at the office of the
Company (or such other office or agency of the Company as it may designate by
notice in writing to the registered Holder hereof at the address of such Holder
appearing on the books of the Company) and upon payment of the Exercise Price of
the shares thereby purchased by wire transfer or cashier's check drawn on a
United States bank, the Holder of this Warrant shall be entitled to receive a
certificate for the number of shares of Common Stock so purchased. Certificates
for shares purchased hereunder shall be delivered to the Holder hereof within
three (3) Trading Days after the date on which this Warrant shall have been
exercised as aforesaid. This Warrant shall be deemed to have been exercised and
such certificate or certificates shall be deemed to have been issued, and Holder
or any other person so designated to be named therein shall be deemed to have
become a Holder of record of such shares for all purposes, as of the date the
Warrant has been exercised by payment to the Company of the Exercise Price and
all taxes required to be paid by Holder, if any, pursuant to Section 5 prior to
the issuance of such shares, have been paid.

            (b) If this Warrant shall have been exercised in part, the Company
shall, at the time of delivery of the certificate or certificates representing
Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder
to purchase the unpurchased shares of Common Stock called for by this Warrant,
which new Warrant shall in all other respects be identical with this Warrant.

      3. No Fractional Shares or Scrip. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this
Warrant. As to any fraction of a share which Holder would otherwise be entitled
to purchase upon such exercise, the Company shall pay a cash adjustment in
respect of such final fraction in an amount equal to the Exercise Price.

      4. Charges, Taxes and Expenses. Issuance of certificates for shares of
Common Stock upon the exercise of this Warrant shall be made without charge to
the Holder hereof for any issue or transfer tax or other incidental expense in
respect of the issuance of such certificates, all of which taxes and expenses
shall be paid by the Company, and such certificates shall be issued in the name
of the Holder of this Warrant or in such name or names as may be directed by the
Holder of this Warrant; provided, however, that in the event certificates for
shares of Common Stock are to be issued in a name other than the name of the
Holder of this Warrant, this Warrant when surrendered for exercise shall be
accompanied by the Assignment Form attached hereto duly executed by the Holder
hereof; and the Company may require, as a condition thereto, the payment of a
sum sufficient to reimburse it for any transfer tax incidental thereto.

                                       2
<PAGE>

      5. Closing of Books. The Company will not close its stockholder books or
records in any manner which prevents the timely exercise of this Warrant.

      6. Transfer, Division and Combination. (a) Subject to compliance with any
applicable securities laws, transfer of this Warrant and all rights hereunder,
in whole or in part, shall be registered on the books of the Company to be
maintained for such purpose, upon surrender of this Warrant at the principal
office of the Company, together with a written assignment of this Warrant
substantially in the form attached hereto duly executed by Holder or its agent
or attorney and funds sufficient to pay any transfer taxes payable upon the
making of such transfer. Upon such surrender and, if required, such payment, the
Company shall execute and deliver a new Warrant or Warrants in the name of the
assignee or assignees and in the denomination or denominations specified in such
instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall
promptly be cancelled. A Warrant, if properly assigned, may be exercised by a
new holder for the purchase of shares of Common Stock without having a new
Warrant issued.

            (b) This Warrant may be divided or combined with other Warrants upon
presentation hereof at the aforesaid office of the Company, together with a
written notice specifying the names and denominations in which new Warrants are
to be issued, signed by Holder or its agent or attorney. Subject to compliance
with Section 7(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice.

            (c) The Company shall prepare, issue and deliver at its own expense
(other than transfer taxes) the new Warrant or Warrants under this Section 7.

            (d) The Company agrees to maintain, at its aforesaid office, books
for the registration and the registration of transfer of the Warrants.

      7. No Rights as Stockholder until Exercise. This Warrant does not entitle
the Holder hereof to any voting rights or other rights as a stockholder of the
Company prior to the exercise hereof. Upon the surrender of this Warrant and the
payment of the aggregate Exercise Price, the Warrant Shares so purchased shall
be and be deemed to be issued to such Holder as the record owner of such shares
as of the close of business on the later of the date of such surrender or
payment.

      8. Loss, Theft, Destruction or Mutilation of Warrant. The Company
covenants that upon receipt by the Company of evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant certificate
or any stock certificate relating to the Warrant Shares, and in case of loss,
theft or destruction, of indemnity or security reasonably satisfactory to it
(which shall not include the posting of any bond), and upon surrender and
cancellation of such Warrant or stock certificate, if mutilated, the Company
will make and deliver a new Warrant or stock certificate of like tenor and dated
as of such cancellation, in lieu of such Warrant or stock certificate.

                                       3
<PAGE>

      9. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the
taking of any action or the expiration of any right required or granted herein
shall be a Saturday, Sunday or a legal holiday, then such action may be taken or
such right may be exercised on the next succeeding day not a Saturday, Sunday or
legal holiday.

      10. Adjustments of Exercise Price and Number of Warrant Shares.

            (a) Stock Splits, etc. The number and kind of securities purchasable
upon the exercise of this Warrant and the Exercise Price shall be subject to
adjustment from time to time upon the happening of any of the following. In case
the Company shall (i) pay a dividend in shares of Common Stock or make a
distribution in shares of Common Stock to holders of its outstanding Common
Stock, (ii) subdivide its outstanding shares of Common Stock into a greater
number of shares of Common Stock, (iii) combine its outstanding shares of Common
Stock into a smaller number of shares of Common Stock or (iv) issue any shares
of its capital stock in a reclassification of the Common Stock, then the number
of Warrant Shares purchasable upon exercise of this Warrant immediately prior
thereto shall be adjusted so that the Holder of this Warrant shall be entitled
to receive the kind and number of Warrant Shares or other securities of the
Company which he would have owned or have been entitled to receive had such
Warrant been exercised in advance thereof. Upon each such adjustment of the kind
and number of Warrant Shares or other securities of the Company which are
purchasable hereunder, the Holder of this Warrant shall thereafter be entitled
to purchase the number of Warrant Shares or other securities resulting from such
adjustment at an Exercise Price per Warrant Share or other security obtained by
multiplying the Exercise Price in effect immediately prior to such adjustment by
the number of Warrant Shares purchasable pursuant hereto immediately prior to
such adjustment and dividing by the number of Warrant Shares or other securities
of the Company resulting from such adjustment. An adjustment made pursuant to
this paragraph shall become effective immediately after the effective date of
such event retroactive to the record date, if any, for such event.

            (b) Reorganization, Merger, Consolidation or Disposition of Assets.
In case the Company shall reorganize its capital, consolidate or merge with or
into another corporation (where the Company is not the surviving corporation or
where there is a change in or distribution with respect to the Common Stock of
the Company), or sell, transfer or otherwise dispose of all or substantially all
its property, assets or business to another corporation and, pursuant to the
terms of such reorganization, merger, consolidation or sale, transfer or
disposition of assets, shares of common stock of the successor or acquiring
corporation, or any cash, shares of stock or other securities or property of any
nature whatsoever (including warrants or other subscription or purchase rights)
in addition to or in lieu of common stock of the successor or acquiring
corporation ("Other Property"), are to be received by or distributed to the
holders of Common Stock of the Company, then Holder shall have the right
thereafter to receive, upon exercise of this Warrant, the number of shares of
common stock of the successor or acquiring corporation or of the Company, if it
is the surviving corporation, and Other Property receivable upon or as a result
of such reorganization, merger, consolidation or disposition of assets by a
Holder of the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to such event. In case of any such reorganization,
merger, consolidation or disposition of assets, the successor or acquiring
corporation (if other than the Company) shall expressly assume the due and
punctual observance and performance of each and every covenant and condition of
this Warrant to be performed and observed by the Company and all the obligations

                                       4
<PAGE>

and liabilities hereunder, subject to such modifications as may be deemed
appropriate (as determined in good faith by resolution of the Board of Directors
of the Company) in order to provide for adjustments of shares of Common Stock
for which this Warrant is exercisable which shall be as nearly equivalent as
practicable to the adjustments provided for in this Section 11. For purposes of
this Section 11, "common stock of the successor or acquiring corporation" shall
include stock of such corporation of any class which is not preferred as to
dividends or assets over any other class of stock of such corporation and which
is not subject to redemption and shall also include any evidences of
indebtedness, shares of stock or other securities which are convertible into or
exchangeable for any such stock, either immediately or upon the arrival of a
specified date or the happening of a specified event, and any warrants or other
rights to subscribe for or purchase any such stock. The foregoing provisions of
this Section 11 shall similarly apply to successive reorganizations,
reclassifications, mergers, consolidations or disposition of assets.

      11. Notice of Adjustment. Whenever the number of Warrant Shares or number
or kind of securities or other property purchasable upon the exercise of this
Warrant or the Exercise Price is adjusted, as herein provided, the Company shall
promptly mail by registered or certified mail, return receipt requested, to the
Holder of this Warrant notice of such adjustment or adjustments setting forth
the number of Warrant Shares (and other securities or property) purchasable upon
the exercise of this Warrant and the Exercise Price of such Warrant Shares (and
other securities or property) after such adjustment, setting forth a brief
statement of the facts requiring such adjustment and setting forth the
computation by which such adjustment was made. Such notice, in the absence of
manifest error, shall be conclusive evidence of the correctness of such
adjustment.

      12. Notice of Corporate Action. If at any time:

            (a) the Company shall take a record of the holders of its Common
Stock for the purpose of entitling them to receive a dividend or other
distribution, or any right to subscribe for or purchase any evidences of its
indebtedness, any shares of stock of any class or any other securities or
property, or to receive any other right, or

            (b) there shall be any capital reorganization of the Company, any
reclassification or recapitalization of the capital stock of the Company or any
consolidation or merger of the Company with, or any sale, transfer or other
disposition of all or substantially all the property, assets or business of the
Company to, another corporation or,

            (c) there shall be a voluntary or involuntary dissolution,
liquidation or winding up of the Company;

      then, in any one or more of such cases, the Company shall give to Holder
(i) at least 30 days' prior written notice of the date on which a record date
shall be selected for such dividend, distribution, right to subscribe or right
or for determining rights to vote in respect of any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up, and (ii) in the case of any such
reorganization, reclassification, recapitalization, merger, consolidation, sale,
transfer, disposition, dissolution, liquidation or winding up, at least 30 days'
prior written notice of the date when the same shall take place. Such notice in
accordance with the foregoing clause also shall specify (i) the date on which

                                       5
<PAGE>

any such record is to be taken for the purpose of such dividend, distribution or
right, the date on which the holders of Common Stock shall be entitled to any
such dividend, distribution or right, and the amount and character thereof, and
(ii) the date on which any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding
up is to take place and the time, if any such time is to be fixed, as of which
the holders of Common Stock shall be entitled to exchange their shares of Common
Stock for securities or other property deliverable upon such disposition,
dissolution, liquidation or winding up. Each such written notice shall be
sufficiently given if addressed to Holder at the last address of Holder
appearing on the books of the Company and delivered in accordance with Section
16(d).

      13. Authorized Shares. The Company covenants that during the period the
Warrant is outstanding, it will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Warrant
Shares upon the exercise of any purchase rights under this Warrant. The Company
further covenants that its issuance of this Warrant shall constitute full
authority to its officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for the Warrant
Shares upon the exercise of the purchase rights under this Warrant. The Company
will take all such reasonable action as may be necessary to assure that such
Warrant Shares may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of the Principal Market
upon which the Common Stock may be listed.

                  The Company shall not by any action, including, without
limitation, amending its certificate of incorporation or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, but will at all
times in good faith assist in the carrying out of all such terms and in the
taking of all such actions as may be necessary or appropriate to protect the
rights of Holder against impairment. Without limiting the generality of the
foregoing, the Company will (a) not increase the par value of any shares of
Common Stock receivable upon the exercise of this Warrant above the amount
payable therefor upon such exercise immediately prior to such increase in par
value, (b) take all such action as may be necessary or appropriate in order that
the Company may validly and legally issue fully paid and nonassessable shares of
Common Stock upon the exercise of this Warrant, and (c) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof as may be necessary
to enable the Company to perform its obligations under this Warrant.

                  Before taking any action which would result in an adjustment
in the number of shares of Common Stock for which this Warrant is exercisable or
in the Exercise Price, the Company shall obtain all such authorizations or
exemptions thereof, or consents thereto, as may be necessary from any public
regulatory body or bodies having jurisdiction thereof.

      14. Miscellaneous.

            (a) Jurisdiction. This Warrant shall be binding upon any successors
or assigns of the Company. This Warrant shall constitute a contract under the
laws of New York, without regard to its conflict of law principles or rules, and
be subject to arbitration pursuant to the terms set forth in the Purchase
Agreement.

                                       6
<PAGE>

            (b) Restrictions. The Holder hereof acknowledges that the Warrant
Shares acquired upon the exercise of this Warrant, if not registered, will have
restrictions upon resale imposed by state and federal securities laws.

            (c) Nonwaiver and Expenses. No course of dealing or any delay or
failure to exercise any right hereunder on the part of Holder shall operate as a
waiver of such right or otherwise prejudice Holder's rights, powers or remedies,
notwithstanding all rights hereunder terminate on the Termination Date. If the
Company willfully fails to comply with any provision of this Warrant, the
Company shall pay to Holder such amounts as shall be sufficient to cover any
costs and expenses including, but not limited to, reasonable attorneys' fees,
including those of appellate proceedings, incurred by Holder in collecting any
amounts due pursuant hereto or in otherwise enforcing any of its rights, powers
or remedies hereunder.

            (d) Notices. Any notice, request or other document required or
permitted to be given or delivered to the Holder hereof by the Company shall be
delivered in accordance with the notice provisions of the Purchase Agreement.

            (e) Limitation of Liability. No provision hereof, in the absence of
affirmative action by Holder to purchase shares of Common Stock, and no
enumeration herein of the rights or privileges of Holder hereof, shall give rise
to any liability of Holder for the purchase price of any Common Stock or as a
stockholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

            (f) Remedies. Holder, in addition to being entitled to exercise all
rights granted by law, including recovery of damages, will be entitled to
specific performance of its rights under this Warrant. The Company agrees that
monetary damages would not be adequate compensation for any loss incurred by
reason of a breach by it of the provisions of this Warrant and hereby agrees to
waive the defense in any action for specific performance that a remedy at law
would be adequate.

            (g) Successors and Assigns. Subject to applicable securities laws,
this Warrant and the rights and obligations evidenced hereby shall inure to the
benefit of and be binding upon the successors of the Company and the successors
and permitted assigns of Holder. The provisions of this Warrant are intended to
be for the benefit of all Holders from time to time of this Warrant and shall be
enforceable by any such Holder or holder of Warrant Shares.

            (h) Indemnification. The Company agrees to indemnify and hold
harmless Holder from and against any liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, claims, costs, reasonable attorneys' fees,
expenses and disbursements of any kind which may be imposed upon, incurred by or
asserted against Holder in any manner relating to or arising out of any failure
by the Company to perform or observe in any material respect any of its
covenants, agreements, undertakings or obligations set forth in this Warrant;
provided, however, that the Company will not be liable hereunder to the extent
that any liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, claims, costs, attorneys' fees, expenses or disbursements are

                                       7
<PAGE>

found in a final non-appealable judgment by a court to have resulted from
Holder's negligence, bad faith or willful misconduct in its capacity as a
stockholder or warrantholder of the Company.

            (i) Amendment. This Warrant may be modified or amended or the
provisions hereof waived with the written consent of the Company and the Holder.

            (j) Severability. Wherever possible, each provision of this Warrant
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provisions or the remaining provisions of this Warrant.

            (k) Headings. The headings used in this Warrant are for the
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

                                       8
<PAGE>

      IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by
its officer thereunto duly authorized.

Dated: March 8, 2005

                                          A.B. WATLEY GROUP INC.

                                          By:  /s/ Robert Malin
                                               ---------------------------------
                                               Robert Malin
                                               President

                                       9
<PAGE>

                               NOTICE OF EXERCISE

To: A.B. Watley Group Inc.

            (1)______The undersigned hereby elects to purchase ________________
shares of Common Stock (the "Common Stock"), of A.B. Watley Group Inc. pursuant
to the terms of the attached Warrant, and tenders herewith payment of the
exercise price in full, together with all applicable transfer taxes, if any.

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

                  -------------------------------
                  (Name)

                  -------------------------------
                  (Address)

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

Dated:

                                               ---------------------------------
                                               Signature

<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

      FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby
are hereby assigned to

_______________________________________________ whose address is

__________________________________________________________________.

__________________________________________________________________

                                            Dated:  ______________, _______

                    Holder's Signature:___________________________

                    Holder's Address:_____________________________

Signature Guaranteed:  ___________________________________________

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in an fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing
Warrant.

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