Document:

Exhibit 10.1

                         DRINKS AMERICAS HOLDINGS, LTD.

                          REGISTRATION RIGHTS AGREEMENT

         This REGISTRATION RIGHTS AGREEMENT (the "Agreement"), dated as of
___________ __, 2005, is made by and between Drinks Americas Holdings, Ltd., a
Delaware corporation (the "Company"), and the individuals and entities set forth
on the signature page hereto (each an "Investor" or "Holder" and collectively,
the "Investors" or the "Holders").

         WHEREAS, in connection with that certain Securities Purchase Agreements
by and among the Company and the Investors, dated March __, 2005 (the
"Securities Purchase Agreement"), the Company sold to the Investors certain 10%
senior convertible promissory notes (each a "Note" and collectively the "Notes")
and warrants (the "Warrants") to purchase shares of the Company's common stock,
$.001 par value per share (the "Common Stock"); and

         WHEREAS, the Company has agreed to execute this Agreement as one of its
obligations under the Securities Purchase Agreement.

         NOW, THEREFORE, the Company and the Investors hereby covenant and agree
as follows:

         1. Certain Definitions. As used in this Agreement, the following terms
shall have the following respective meanings:

         "Commission" shall mean the Securities and Exchange Commission, or any
other federal agency at the time administering the Securities Act.

         "Common Stock" shall mean the common stock, par value $.001 per share,
of the Company.

         "Eligible Securities" shall mean all Registrable Securities other than
Excluded Securities.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission thereunder, all as the
same shall be in effect at the time.

         "Excluded Securities" shall mean Registrable Securities that are free
of restriction on resale under the Securities Act (by removal of all restrictive
legends, instructions to transfer agent or otherwise) pursuant to Rule 144(k).

         "Register," "registered" and "registration" each shall refer to a
registration effected by preparing and filing a Registration Statement or
statements or similar documents in compliance with the Securities Act and the
declaration or ordering of effectiveness of such Registration Statement or
document by the Commission.
<PAGE>

         "Registrable Securities" shall mean (i) the Common Stock issuable upon
conversion of the Note (or that may be issuable upon the conversion of any other
equity security issuable upon conversion of the Note), (ii) the Common stock
issuable upon exercise of the Warrants, and (iii) any other shares of Common
Stock issued as a dividend or other distribution with respect to or in exchange
for or in replacement of such Notes, Warrants or Common Stock, provided,
however, that shares of Common Stock which are Registrable Securities shall
cease to be Registrable Securities (x) upon any sale pursuant to a Registration
Statement or Rule 144 under the Securities Act or (y) at such time, as they
become eligible for sale pursuant to Rule 144(k) under the Securities Act or
another similar exemption under the Securities Act.

         "Securities Act" shall mean the Securities Act of 1933, as amended, and
the rules and regulations of the Commission thereunder, all as the same shall be
in effect at the applicable time.

         Capitalized terms used but not defined herein shall have the meanings
set forth in the Securities Purchase Agreement or the Notes.

      2. Mandatory Registration. The Company shall use best efforts to prepare
and, no later than 180 days after the date of the Closing (as defined in the
Securities Purchase Agreement), file with the Commission a Registration
Statement on Form S-3 covering the resale of all of the Registrable Securities.
In the event that Form S-3 is unavailable for such a registration, the Company
shall use such other form as is available for such a registration. The
Registration Statement prepared pursuant hereto shall register for resale at
least that number of shares of Common Stock equal to the number of Registrable
Securities. The Company shall use its best efforts to have the Registration
Statement declared effective by the Commission by the 270th day following the
date of the Closing.

      3. Piggyback Registration.

                  (a) Except as provided in Section 2, if the Company, at any
time during the two (2) year period commencing after the date hereof, proposes
to register any of its securities under the Securities Act for sale to the
public, whether for its own account or for the account of other security holders
or both (except with respect to registration statements on Forms S-4, S-8 and
any successor forms thereto as well as registrations that do not permit resales)
(a "Piggyback Registration"), each such time it will give written notice to such
effect to all holders of outstanding Registrable Securities at least thirty (30)
days prior to such filing. Upon the written request of any such holder received
by the Company within thirty (30) days after the giving of any such notice by
the Company to register any of its Eligible Securities, the Company will cause
the Eligible Securities as to which registration shall have been so requested to
be included in the securities to be covered by the registration statement
proposed to be filed by the Company, all to the extent required to permit the
sale or other disposition by the holder of such Eligible Securities so
registered.

                  (b) If the registration for which the Company gives notice
pursuant to Section 3(a) is a registered public offering involving an
underwriting, the Company shall so advise the holders as a part of the written
notice given pursuant to Section 3(a). In such event, (i) the right of any
<PAGE>

holder to include its Registrable Shares in such registration pursuant to this
Section 3 shall be conditioned upon such holder's participation in such
underwriting on the terms set forth herein and (ii) all holders including
Registrable Shares in such registration shall enter into an underwriting
agreement with the underwriter or underwriters selected for the underwriting by
the Company. If any holder who has requested inclusion of its Registrable Shares
in such registration as provided above disapproves of the terms of the
underwriting, such holder may elect, by written notice to the Company, to
withdraw its shares from such registration statement and underwriting. If the
managing underwriter advises the Company in writing that in its good faith
determination marketing factors require a limitation on the number of shares to
be underwritten, the shares to be included in the underwriting shall be
allocated, first to the Company, and second, to each of the holders of piggyback
or similar registration rights who request registration including the holders of
the Registrable Securities, in proportion, as nearly as practicable, to the
respective number of shares of Common Stock (on an as-converted basis) held by
them on the date the Company gives notice to such holders of its intent to file
a registration statement. If any such holder entitled to be included in such
registration statement would thus be entitled to include more shares than such
holder requested to be registered, the excess shall be allocated among all other
requesting holders referred to in the above sentence pro rata in the manner
described in the preceding sentence.

         4. Registration Procedures. If and whenever the Company effects the
registration of any Registrable Securities under the Securities Act, the Company
will, as expeditiously as possible:

                  (a) use its best efforts to prepare and file with the
Commission such amendments and supplements to such Registration Statement and
the prospectus used in connection therewith as may be necessary to keep such
Registration Statement continuously effective and comply with the provisions of
the Securities Act with respect to the disposition of all Registrable Securities
covered by such Registration Statement in accordance with the intended method of
disposition set forth in such Registration Statement for such period;

                  (b) furnish to each seller of Registrable Securities and to
each underwriter such number of copies of the Registration Statement and the
prospectus included therein (including each preliminary prospectus) as such
persons reasonably may request in order to facilitate the intended disposition
of the Registrable Securities covered by such Registration Statement;

                  (c) use its best efforts (i) to register or qualify the
Registrable Securities covered by such Registration Statement under the
securities or "blue sky" laws of such jurisdictions as the sellers of
Registrable Securities or, in the case of an underwritten public offering, the
managing underwriter, reasonably shall request, (ii) to prepare and file in
those jurisdictions such amendments (including post-effective amendments) and
supplements, and take such other actions, as may be necessary to maintain such
registration and qualification in effect at all times for the period of
<PAGE>

distribution contemplated thereby and (iii) to take such further action as may
be necessary or advisable to enable the disposition of the Registrable
Securities in such jurisdictions, provided, that the Company shall not for any
such purpose be required to qualify generally to transact business as a foreign
corporation in any jurisdiction where it is not so qualified or to consent to
general service of process in any such jurisdiction;

                  (d) use its best efforts to list the Registrable Securities
covered by such Registration Statement with any securities exchange on which the
Common Stock of the Company is then listed;

                  (e) immediately notify each seller of Registrable Securities
and each underwriter under such Registration Statement, at any time when a
prospectus relating thereto is required to be delivered under the Securities
Act, of the happening of any event of which the Company has knowledge as a
result of which the prospectus contained in such Registration Statement, as then
in effect, includes any untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing and promptly
amend or supplement such Registration Statement to correct any such untrue
statement or omission;

                  (f) promptly notify each seller of Registrable Securities of
the issuance by the Commission of any stop order suspending the effectiveness of
the Registration Statement or the initiation of any proceedings for that purpose
and make every reasonable effort to prevent the issuance of any stop order and,
if any stop order is issued, to obtain the lifting thereof at the earliest
possible time;

                  (g) if the offering is an underwritten offering, enter into a
written agreement with the managing underwriter selected in the manner herein
provided in such form and containing such provisions as are usual and customary
in the securities business for such an arrangement between such underwriter and
companies of the Company's size and investment stature, including, without
limitation, customary indemnification and contribution provisions; and

                  (h) take all actions reasonably necessary to facilitate the
timely preparation and delivery of certificates (not bearing any legend
restricting the sale or transfer of such securities) representing the
Registrable Securities to be sold pursuant to the Registration Statement and to
enable such certificates to be in such denominations and registered in such
names as the Investors or any underwriters may reasonably request.

         5. Obligations of Holders.

                  Each holder of Registrable Securities shall furnish to the
Company such information regarding such holder, the number of Registrable
Securities owned and proposed to be sold by it, the intended method of
disposition of such securities and any other information as shall be required to
effect the registration of the Registrable Securities, and cooperate with the
Company in preparing the Registration Statement and in complying with the
requirements of the Securities Act.

         6. Expenses. All fees and expenses incident to the performance of or
compliance with this Agreement by the Company shall be borne by the Company
whether or not any Registrable Securities are sold pursuant to the Registration
Statement. The fees and expenses referred to in the foregoing sentence shall
include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses (A) with respect to filings required to be
<PAGE>

made with the trading market on which the Common Stock is then listed for
trading, and (B) in compliance with applicable state securities or Blue Sky
laws), (ii) printing expenses, (iii) messenger, telephone and delivery expenses,
(iv) fees and disbursements of counsel and independent public accountants for
the Company and (v) fees and disbursements of one counsel to the Holders not to
exceed $10,000.

         7. Indemnification and Contribution.

                  (a) In the event of a registration of any of the Registrable
Securities under the Securities Act pursuant to the terms of this Agreement, the
Company will indemnify and hold harmless and pay and reimburse, each seller of
such Registrable Securities thereunder, each underwriter of such Registrable
Securities thereunder and each other person, if any, who controls such seller or
underwriter within the meaning of the Securities Act, against any losses,
claims, damages or liabilities, joint or several, to which such seller,
underwriter or controlling person may become subject under the Securities Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in any Registration Statement
under which such Registrable Securities were registered under the Securities Act
pursuant hereto or any preliminary prospectus or final prospectus contained
therein, or any amendment or supplement thereof, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading,
or any violation or alleged violation of the Securities Act or any state
securities or blue sky laws and will reimburse each such seller, each such
underwriter and each such controlling person for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any
such loss, claim, damage, liability or action; provided, that the Company will
not be liable in any such case if and to the extent that any such loss, claim,
damage or liability arises out of or is based upon the Company's reliance on an
untrue statement or alleged untrue statement or omission or alleged omission so
made in conformity with information furnished by any such seller, any such
underwriter or any such controlling person in writing specifically for use in
such Registration Statement or prospectus. Notwithstanding the foregoing, the
indemnity provided in this Section 7(a) shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or expense if such
settlement is effected without the consent of such indemnifying party, which
consent shall not be unreasonably withheld, and provided further, that the
Company shall not be liable in any such case to the extent that any such loss,
claim, damage or liability (or action in respect thereof) arises out of or is
based upon an untrue statement or alleged untrue statement or omission or
alleged omission in such Registration Statement, which untrue statement or
alleged untrue statement or omission or alleged omission is completely corrected
in an amendment or supplement to the Registration Statement and the undersigned
indemnitees thereafter fail to deliver or cause to be delivered such
Registration Statement as so amended or supplemented prior to or concurrently
with the sale of the Registrable Securities to the person asserting such loss,
claim, damage or liability (or actions in respect thereof) or expense after the
Company has furnished the undersigned with the same.
<PAGE>

                  (b) In the event of a registration of any of the Registrable
Securities under the Securities Act pursuant hereto each seller of such
Registrable Securities thereunder, severally and not jointly, will indemnify and
hold harmless the Company, each person, if any, who controls the Company within
the meaning of the Securities Act, each officer of the Company who signs the
Registration Statement, each director of the Company, each underwriter and each
person who controls any underwriter within the meaning of the Securities Act,
against all losses, claims, damages or liabilities, joint or several, to which
the Company or such officer, director, underwriter or controlling person may
become subject under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon reliance on any untrue statement or alleged untrue statement of
any material fact contained in the Registration Statement under which such
Registrable Securities were registered under the Securities Act pursuant hereto
or any preliminary prospectus or final prospectus contained therein, or any
amendment or supplement thereof, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, and will
reimburse the Company and each such officer, director, underwriter and
controlling person for any legal or other expenses reasonably incurred by them
in connection with investigating or defending any such loss, claim, damage,
liability or action, provided, that such seller will be liable hereunder in any
such case if and only to the extent that any such loss, claim, damage or
liability arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission made in reliance upon and in
conformity with information pertaining to such seller, as such, furnished in
writing to the Company by such seller specifically for use in such Registration
Statement or prospectus, and provided, that the liability of each seller
hereunder shall be limited to the proceeds received by such seller from the sale
of Registrable Securities covered by such Registration Statement.

                  (c) Promptly after receipt by an indemnified party hereunder
of notice of the commencement of any action, such indemnified party shall, if a
claim in respect thereof is to be made against the indemnifying party hereunder,
notify the indemnifying party in writing thereof, but the omission so to notify
the indemnifying party shall not relieve it from any liability which it may have
to such indemnified party other than under this Section 7 and shall only relieve
it from any liability which it may have to such indemnified party under this
Section 7 if and to the extent the indemnifying party is materially prejudiced
by such omission. In case any such action shall be brought against any
indemnified party and it shall notify the indemnifying party of the commencement
thereof, the indemnifying party shall be entitled to participate in and, to the
extent it shall wish, to assume and undertake the defense thereof with counsel
reasonably satisfactory to such indemnified party, and, after notice from the
indemnifying party to such indemnified party of its election so to assume and
undertake the defense thereof, the indemnifying party shall not be liable to
such indemnified party under this Section 7 for any legal expenses subsequently
incurred by such indemnified party in connection with the defense thereof other
than reasonable costs of investigation and of liaison with counsel so selected,
provided, that if the defendants in any such action include both the indemnified
party and the indemnifying party and the indemnified party shall have reasonably
concluded based upon written advise of its counsel that there may be reasonable
defenses available to it which are different from or additional to those
available to the indemnifying party or if the interests of the indemnified party
reasonably may be deemed to conflict with the interests of the indemnifying
party, the indemnified party shall have the right to select a separate counsel
and to assume such legal defenses and otherwise to participate in the defense of
such action, with the expenses and fees of such separate counsel and other
expenses related to such participation to be reimbursed by the indemnifying
party as incurred.
<PAGE>

                  (d) In order to provide for just and equitable contribution to
joint liability under the Securities Act in any case in which either (i) any
holder of Registrable Securities exercising rights under this Agreement, or any
controlling person of any such holder, makes a claim for indemnification
pursuant to this Section 7 but it is judicially determined (by the entry of a
final judgment or decree by a court of competent jurisdiction and the expiration
of time to appeal or the denial of the last right of appeal) that such
indemnification may not be enforced in such case notwithstanding the fact that
this Section 7 provides for indemnification in such case, or (ii) contribution
under the Securities Act may be required on the part of any such selling holder
or any such controlling person in circumstances for which indemnification is
provided under this Section 7; then, and in each such case, the Company and such
holder will contribute to the aggregate losses, claims, damages or liabilities
to which they may be subject (after contribution from others) in such proportion
so that such holder is responsible for the portion represented by the percentage
that the public offering price of its Registrable Securities offered by the
Registration Statement bears to the public offering price of all securities
offered by such Registration Statement, and the Company is responsible for the
remaining portion; provided, that, in any such case, (A) no such holder will be
required to contribute any amount in excess of the public offering price of all
such Registrable Securities offered by it pursuant to such Registration
Statement and (B) no person or entity guilty of fraudulent misrepresentation
(within the meaning of Section 12(f) of the Securities Act) will be entitled to
contribution from any person or entity who was not guilty of such fraudulent
misrepresentation.

         8. Changes in Capital Stock. If, and as often as, there is any change
in the capital stock of the Company by way of a stock split, stock dividend,
combination or reclassification, or through a merger, consolidation,
reorganization or recapitalization, or by any other means, appropriate
adjustment shall be made in the provisions hereof so that the rights and
privileges granted hereby shall continue as so changed.

         9. Representations and Warranties of the Company. The Company
represents and warrants to the Investor as follows:

                  (a) The execution, delivery and performance of this Agreement
by the Company have been duly authorized by all requisite corporate action and
will not violate any provision of law, any order of any court or other agency of
government, the Charter or By-laws of the Company or any provision of any
indenture, agreement or other instrument to which it or any or its properties or
assets is bound, conflict with, result in a breach of or constitute (with due
notice or lapse of time or both) a default under any such indenture, agreement
or other instrument or result in the creation or imposition of any lien, charge
or encumbrance of any nature whatsoever upon any of the properties or assets of
the Company or its subsidiaries.

                  (b) This Agreement has been duly executed and delivered by the
Company and constitutes the legal, valid and binding obligation of the Company,
enforceable in accordance with its terms, subject to any applicable bankruptcy,
insolvency or other laws affecting the rights of creditors generally and to
general equitable principles and the availability of specific performance.

         10. Assignment of Registration Rights. The rights to have the Company
register Registrable Securities pursuant to this Agreement may be assigned by
the Investor to transferees or assignees of such securities; provided, that the
Company is, within a reasonable time after such transfer, furnished with written
notice of the name and address of such transferee or assignee and the securities
with respect to which such registration rights are being assigned. The term
"Investor" as used in this Agreement shall include such permitted assigns.

         11. Rule 144 Requirements. The Company agrees to:

         (a) use its best efforts to make and keep current public information
about the Company available, as those terms are understood and defined in Rule
144;

         (b) use its best efforts to file with the Commission in a timely manner
all reports and other documents required of the Company under the Securities Act
and the Exchange Act (at any time after it has become subject to such reporting
requirements); and

         (c) furnish to any holder of Registrable Securities upon request (i) a
written statement by the Company as to its compliance with the reporting
requirements of Rule 144 and of the Securities Act and the Exchange Act (at any
time after it has become subject to such reporting requirements), (ii) a copy of
the most recent annual or quarterly report of the Company, and (iii) such other
reports and documents of the Company as such holder may reasonably request to
avail itself of any similar rule or regulation of the Commission allowing it to
sell any such securities without registration.

         12. Termination. All of the Company's obligations to register
Registrable Shares under Sections 2 and 3 hereto shall terminate upon the date
on which no Investor holds any Registrable Securities.

         13. Miscellaneous.

                  (a) All covenants and agreements contained in this Agreement
by or on behalf of any of the parties hereto shall bind and inure to the benefit
of the respective successors and assigns of the parties hereto (including
without limitation transferees of any Registrable Securities), whether so
expressed or not.

                  (b) All notices, requests, consents and other communications
hereunder shall be in writing and shall be delivered in person, mailed by
certified or registered mail, return receipt requested, or sent by telecopier,
addressed (i) if to the Company, at Drinks Americas Holdings, Ltd. 372 Danbury
Road, Wilton, CT 06897, attention: Bruce Klein or (b) if to the Investor, c/o
Sloan Securities Corp., 444 Madison Avenue, 23rd Floor, New York, New York
10022; and (ii) if to any holder of Registrable Securities, to it at such
address as may have been furnished to the Company in writing by such holder; or,
in any case, at such other address or addresses as shall have been furnished in
writing to the Company (in the case of a holder of Registrable Securities) or to
the holders of Registrable Securities (in the case of the Company) in accordance
with the provisions of this paragraph.
<PAGE>

                  (c) This Agreement shall be governed by and construed under
the laws of the State of New York as applied to agreements among New York
residents entered into and to be performed entirely within New York. The Company
(1) agrees that any legal suit, action or proceeding arising out of or relating
to this Agreement shall be instituted exclusively in New York State Supreme
Court, County of New York, or in the United States District Court for the
Southern District of New York, (2) waives any objection which the Company may
have now or hereafter to the venue of any such suit, action or proceeding, and
(3) irrevocably consents to the jurisdiction of the New York State Supreme
Court, County of New York, and the United States District Court for the Southern
District of New York in any such suit, action or proceeding. The Company further
agrees to accept and acknowledge service of any and all process which may be
served in any such suit, action or proceeding in the New York State Supreme
Court, County of New York, or in the United States District Court for the
Southern District of New York and agrees that service of process upon the
Company mailed by certified mail to the Company's address shall be deemed in
every respect effective service of process upon the Company, in any such suit,
action or proceeding. THE PARTIES HERETO AGREE TO WAIVE THEIR RESPECTIVE RIGHTS
TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF
THIS AGREEMENT OR ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY.

                  (d) In the event of a breach by the Company or by a Holder, of
any of their obligations under this Agreement, each Holder or the Company, as
the case may be, in addition to being entitled to exercise all rights granted by
law and under this Agreement, including recovery of damages, will be entitled to
specific performance of its rights under this Agreement. The Company and each
Holder agree that monetary damages would not provide adequate compensation for
any losses incurred by reason of a breach by it of any of the provisions of this
Agreement and hereby further agrees that, in the event of any action for
specific performance in respect of such breach, it shall waive the defense that
a remedy at law would be adequate.

                    (e) This Agreement may not be amended or modified without
the written consent of the Company and the holders of at least a majority of the
Registrable Securities.

                  (f) Failure of any party to exercise any right or remedy under
this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof. No waiver shall be effective
unless and until it is in writing and signed by the party granting the waiver.

                  (g) This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. This Agreement, once
executed by a party, may be delivered to the other party hereto by facsimile
transmission of a copy of this Agreement bearing the signature of the party so
delivering this Agreement.

                  (h) If any provision of this Agreement shall be held to be
illegal, invalid or unenforceable, such illegality, invalidity or
unenforceability shall attach only to such provision and shall not in any manner
affect or render illegal, invalid or unenforceable any other provision of this
Agreement, and this Agreement shall be carried out as if any such illegal,
invalid or unenforceable provision were not contained herein.

                  (i) This Agreement constitutes the entire contract among the
Company and the Investors relative to the subject matter hereof and supersedes
in its entirety any and all prior agreements, understandings and discussions
with respect thereto.

                  (j) The headings of the sections of this Agreement are for
convenience and shall not by themselves determine the interpretation of this
Agreement.

                  (k) The obligations of each Holder hereunder are several and
not joint with the obligations of any other Holder hereunder, and no Holder
shall be responsible in any way for the performance of the obligations of any
other Holder hereunder. Nothing contained herein or in any other agreement or
document delivered at any closing pursuant to the Securities Purchase Agreement,
and no action taken by any Holder pursuant hereto or thereto, shall be deemed to
constitute the Holders as a partnership, an association, a joint venture or any
other kind of entity, or create a presumption that the Holders are in any way
acting in concert with respect to such obligations or the transactions
contemplated by this Agreement.

                                         DRINKS AMERICAS HOLDINGS, INC.

                                         By:________________________________
                                         Name:
                                         Title:

                                         INVESTOR NAME

                                         By:
                                            ------------------------------------
                                         Name:
                                         Title:EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

      THIS EMPLOYMENT  AGREEMENT (the "Agreement") is made as of the 21st day of
March, 2005 (the  "Commencement  Date"), and is by and between A.B. WATLEY GROUP
INC.,  a Delaware  corporation  with an office at 90 Park Avenue,  New York,  NY
10016 (hereinafter  "Company"),  and JOHN G. HEWITT with an address at 945 Fifth
Avenue, New York, New York, 10021 (hereinafter the "Executive").

                              W I T N E S S E T H :

      WHEREAS,  the Company  wishes to retain the services of Executive to serve
as Chief Executive Officer of the Company and its wholly owned subsidiary,  A.B.
Watley  Direct,  Inc. and in such other  capacities as the Company and Executive
shall  mutually  agree in accordance  with the following  terms,  conditions and
provisions; and

      WHEREAS,  Executive  wishes to perform such  services for and on behalf of
Company,  in  accordance  with the  terms,  conditions  and  provisions  of this
Agreement.

      NOW,  THEREFORE,  in  consideration of the mutual covenants and conditions
herein  contained the parties hereto  intending to be legally bound hereby agree
as follows:

      1. EMPLOYMENT. Company hereby employs Executive and Executive accepts such
employment  and shall perform his duties and the  responsibilities  provided for
herein in accordance with the terms and conditions of this Agreement.

      2. EMPLOYMENT  STATUS.  Executive shall at all times be Company's employee
subject to the terms and conditions of this Agreement.

      3. TERM.  Unless  earlier  terminated  pursuant to terms and provisions of
this  Agreement,  this Agreement shall have a term (the "Term") of two (2) years
from the  Commencement  Date.  The Term may be extended for  additional one year
periods, at the mutual discretion of the parties, on terms to be negotiated.

      4. POSITIONS.  During Executive's  employment  hereunder,  Executive shall
serve as Chief Executive Officer of the Company and its wholly owned subsidiary,
A.B.  Watley  Direct,  Inc. and shall work  primarily  for the Company.  In such
position,  Executive  shall  have the  customary  powers,  responsibilities  and
authorities  of such position in  corporations  of the size,  type and nature of
Company.   Executive   shall  perform  such  duties  and  exercise  such  powers
commensurate with his positions and responsibilities as shall be determined from
time to time by the  Board  of  Directors  of  Company  (the  "Board").  Neither
Executive's  title nor any of his  functions  shall be  changed,  diminished  or
adversely  affected  during the Term without  written  direction from the Board.
Executive shall be provided with an office,  staff and other working  facilities
at the  executive  offices  of  Company  consistent  with his  positions  and as
required  for the  performance  of his duties.

<PAGE>

            At such  time,  if any,  that  the  Company  secures  Directors  and
Officers Insurance, and for the balance of the Term, subject to earlier removal,
resignation  or  replacement,  Executive  shall also serve as a Director  of the
Company.

      5. LOCATION.  During Executive's employment hereunder,  Executive shall be
based at the Company's offices in New York, New York.

      6. COMPENSATION.  For the performance of all of Executive's services to be
rendered pursuant to the terms of this Agreement, Company will pay and Executive
will accept the following compensation:

            6.1 Base Salary. During the Term, Company shall pay Executive a base
annual  salary of $250,000  (the "Base  Salary")  payable in equal  semi-monthly
installments.   The  Company   shall  deduct  and  withhold   from   Executive's
compensation  all  necessary  or required  taxes,  including  but not limited to
Executive's   statutory   income  tax  withholding   and  employment   insurance
contributions,  and any other  applicable  amounts required by law or any taxing
authority.  6.2  Stock.  As  soon as  practicable  following  execution  of this
Agreement,  the  Company  will  issue  to  Executive  5,000,000  shares  of  its
restricted common stock (the "Compensation Shares").

            6.3  Warrants.  The Company  hereby  grants  Executive  common stock
purchase  warrants (the  "Warrants") to acquire an aggregate of 7,500,000 common
shares of Company stock,  the vesting of which is subject to the Company meeting
certain net profit levels. The terms of such Warrants are as follows:

            (i) 2,000,000  Warrants,  each to acquire one share of the Company's
common  stock  at a price of $.05 per  share at any time  during a period  of 10
years from  issuance.  These  Warrants  are only  exercisable  in the event that
Company's  cumulative  net profit during the Term,  as such may be extended,  as
calculated on a quarterly  basis,  commencing with the quarter starting April 1,
2005 (net of amounts, if any,  distributed from the Company's Bonus Pool) equals
or exceeds $1,500,000;

            (ii) an additional 2,000,000 Warrants,  each to acquire one share of
the  Company's  common  stock at a price of $.20 per share at any time  during a
period of 10 years from  issuance.  These  Warrants are only  exercisable in the
event  that  Company's  cumulative  net profit  during the Term,  as such may be
extended,  as  calculated  on a  quarterly  basis,  commencing  with the quarter
starting April 1, 2005 (net of amounts,  if any,  distributed from the Company's
Bonus Pool) equals or exceeds $4,500,000;

            (iii) an additional 2,000,000 Warrants, each to acquire one share of
the  Company's  common  stock at a price of $.40 per share at any time  during a
period of 10 years from  issuance.  These  Warrants are only  exercisable in the
event  that  Company's  cumulative  net profit  during the Term,  as such may be
extended,  as  calculated  on a  quarterly  basis,  commencing  with the quarter
starting April 1, 2005 (net of amounts,  if any,  distributed from the Company's
Bonus Pool) equals or exceeds $7,500,000;

                                       2
<PAGE>

            (iv) an additional 1,500,000 Warrants,  each to acquire one share of
the  Company's  common  stock at a price of $.40 per share at any time  during a
period of 10 years from  issuance.  These  Warrants are only  exercisable in the
event  that  Company's  cumulative  net profit  during the Term,  as such may be
extended,  as  calculated  on a  quarterly  basis,  commencing  with the quarter
starting April 1, 2005 (net of amounts,  if any,  distributed from the Company's
Bonus Pool) equals or exceeds $10,500,000; and

      Subject to earlier forfeiture, as provided in this Agreement, in the event
the cumulative  net profit target of  $10,500,000  set forth in (v) above is not
achieved on or before March 31, 2009, all non-vested Warrants will be forfeited.

      If the Company at any time while any  Warrants are  outstanding  shall (i)
pay a stock dividend or otherwise  make a  distribution  of shares of its common
stock  payable in shares of its  common  stock,  (ii)  subdivide  or  reclassify
outstanding  shares of common  stock into a larger  number of  shares,  or (iii)
combine  outstanding  shares of common  stock  into a smaller  number of shares,
there shall be a corresponding  adjustment in the Warrant exercise price and the
number of Warrants issuable upon exercise thereof.

            6.4. Bonus Pool  Participation.  During the Term,  Executive will be
eligible to participate in the Company's  bonus pool for Company  employees (the
"Bonus  Pool").  The Bonus Pool,  which is not presently in  existence,  will be
funded with up to 25% of the Company's annual net profit, if any, for the twelve
month periods  commencing April 1, 2005.  Funding of the Bonus Pool and payments
from the Bonus Pool to eligible participants will be made at the sole discretion
of the Board.  Eligible  participants that are members of the Board will abstain
from  voting  on their  own  participation  in the  Bonus  Pool.  A  maximum  of
$1,000,000 of the first $2,000,000 paid from the Bonus Pool for a given year may
be paid to Executive.

      7. EXECUTIVE BENEFITS.

            7.1 Executive shall be entitled to receive 4 weeks paid vacation per
year.

            1.1 Reasonable  travel and other business expenses actually incurred
by Executive in the  performance of his duties  hereunder shall be reimbursed by
Company in accordance with Company policies as in effect from time to time.

            7.3  Executive  shall  be  eligible  to  participate  in all  health
insurance  and other  Company  benefit  plans  maintained by the Company for the
benefit of its employees.

      8. TERMINATION.

            8.1  Termination by Company  Without  Cause.  Subject to Section 8.6
hereof,  the Company  shall have the right to terminate  Executive's  employment
hereunder without cause by giving Executive  written notice to that effect.  Any
such  termination of employment shall be effective on the date specified in such
notice.

                                       3
<PAGE>

            8.2 Termination by Company for Cause. Subject to Section 8.6 hereof,
the Company shall have the right to terminate  this  Agreement  and  Executive's
employment  hereunder  "for cause" by giving  Executive  written  notice to that
effect.  Any such  termination  of  employment  shall be  effective  on the date
specified in such notice.  For the purpose of this Agreement,  "for cause" shall
mean (i)  commission of a willful act of dishonesty in the course of Executive's
duties  hereunder,  (ii)  conviction by a court of competent  jurisdiction  of a
criminal  offense or a crime  constituting  a felony or conviction in respect of
any act involving  fraud,  dishonesty or moral turpitude  resulting in Company's
detriment or reflecting upon Company's integrity (other than traffic infractions
or similar minor offenses), (iii) a material breach by Executive of the terms of
this  Agreement  and failure to cure such breach within 30 days after receipt of
written  notice  from  Company  specifying  the nature of such  breach or to pay
compensation  to Company  deemed  reasonable  by Company if the breach cannot be
cured, or (iv) the discovery by the Company in the course of a background  check
on the  Executive  to be  completed  by the  Company  within 60 days of the date
hereof that  Executive has  previously  been  convicted of a felony,  a criminal
offense involving fraud, dishonesty,  or moral turpitude or has engaged in other
activities  which in the  Company's  reasonable  judgment  brings into  question
Executive's  ability to properly perform the duties and  responsibilities  being
undertaken by him hereunder or which could reasonably be deemed to be materially
damaging or detrimental to the Company.

            8.3 Death, Incapacitation or Disability.

                  (a) Subject to Section 8.6 hereof,  if  Executive  dies during
his  employment  hereunder,  this  Agreement  shall  terminate  upon the date of
Executive's death.

                  (b)  Subject to Section  8.6  hereof,  in the event  Executive
suffers  Total and  Permanent  Disability,  Company  may  terminate  Executive's
employment.  "Total and  Permanent  Disability"  means any  condition  affecting
Executive that prevents the performance of the essential job functions and which
is expected to be of a long,  continued and indefinite duration which has caused
Executive's  absence from  service,  after  providing  to  Executive  reasonable
accommodation to perform the requirements of the job if required by law, for not
less than 20 consecutive  days or for such shorter  periods  aggregating 30 days
during any 6 month period. In such instance, a determination of the existence of
Executive's  disability  and of the  duration of the  disability  may be made by
written  agreement  between  Company  and  Executive,   or  Executive's  legally
appointed  guardian  if  Executive  then is  incompetent.  If the parties do not
agree, such determination shall be made, and certified in writing, by a licensed
physician and not an employee of Company,  and such  physician's  determination,
after the proper medical  examination,  shall be binding and conclusive upon the
parties  to this  Agreement.  If  Executive  is  found to be  totally  disabled,
Executive  shall be deemed to  remain  disabled  until  found  otherwise  by the
examining physician.

            8.4 Termination by Executive for Good Reason.

                  (a) Subject to Section 8.6  hereof,  Executive  shall have the
right to terminate this Agreement and his employment hereunder for "good reason"
if (A) Executive  shall have given  Company  prior written  notice of the reason
therefor,  (B) such notice shall have been given to Company  within fifteen (15)
days  after  Executive  is  notified  or  otherwise  first  learns  of the event
constituting  "good  reason,"  and (C) a period of fifteen  (15) days  following
receipt by Company  of such  notice  shall  have  lapsed and the  matters  which
constitute  or give rise to such  "good  reason"  shall  not have been  cured or
eliminated by Company;  provided,  however, that if such matters are of a nature
that same cannot be cured or  eliminated  within such  fifteen  (15) day period,
such period shall be extended up to forty five (45) days,  provided that Company
shall take and  diligently  pursue  during such period such action  necessary to
cure or eliminate such matters.  In the event Company shall not take such action
within such period,  Executive  may send another  notice to Company  electing to
terminate his employment  hereunder and, in such event,  Executive's  employment
hereunder  shall terminate and the effective date of such  termination  shall be
the third business day after Company shall have received such notice.

                                       4
<PAGE>

                  (b) For the purpose of this  Agreement,  "good  reason"  shall
mean the occurrence of any of the following  without  Executive `s prior written
consent:

                        (A) Requiring  Executive to engage in (x) an illegal act
      or (y) an act which is  inconsistent  with prior  practices of Company and
      which could reasonably be deemed to be materially  damaging or detrimental
      to Executive;

                        (B) A default by Company in the payment of any  material
      sum or the provision of any material benefit due to Executive  pursuant to
      this Agreement;

                        (C) The failure of Company to obtain the  assumption  of
      this  Agreement  by any  successor to  substantially  all of the assets or
      business of Company; or

                        (D) Any material  breach by Company of any  provision of
      this Agreement  which is not corrected by Company or, if the breach cannot
      be corrected,  as to which  Company  fails to pay to Executive  reasonable
      compensation for such breach,  within 60 days following receipt by Company
      of written notice from Executive specifying the nature of such breach.

            8.5 Termination by Executive Without Good Reason. Subject to Section
8.6 hereof,  Executive  shall have the right to terminate this Agreement and his
employment hereunder without good reason by giving Company 60 days prior written
notice to that effect.  The termination of employment  shall be effective on the
date specified in such notice, or earlier,  at the determination of Company,  in
which  event such  termination  shall  remain  classified  as a  termination  by
Executive without good reason.

            8.6 Consideration.

                  (a) If Company terminates this Agreement "without cause" under
Section 8.1 or if Executive  terminates  this  Agreement for "good reason" under
Section 8.4, then Executive shall be entitled to receive,  and Company shall pay
to Executive:

                        (i) 100% of the total Base Salary remaining for the Term
without  reduction  for  present  valuation  not later  than the next  regularly
scheduled payment date in accordance with Section 6.1;

                                       5
<PAGE>

                        (ii) any  business  expenses  to be  reimbursed  but not
reimbursed under Section 7 not later than the next regularly  scheduled  payment
date in accordance with Section 7;

                  (b) If Company  terminates  this Agreement  "with cause" under
Section  8.2, or if Executive  terminates  this  Agreement  for other than "good
reason" under Section 8.5, or if this Agreement is terminated as a result of the
death of  Executive  under  Section  8.3,  then  Executive  shall be entitled to
receive,  and  Company  shall  pay to  Executive,  or,  in the  case  of  death,
Executive's administrator:

                        (i) all of the accrued  but unpaid  Base Salary  through
the date of  termination  or death not later than the next  regularly  scheduled
payment date in accordance with Section 6.1;

                        (ii) any  business  expenses  to be  reimbursed  but not
reimbursed under Section 6 not later than the next regularly  scheduled  payment
date in accordance with Section 6;

                  (c) If at any time  during the initial  year of the Term,  the
Company terminates this Agreement "with cause" under Section 8.2 or if Executive
terminates  this  Agreement  for other  than "good  reason"  under  Section  8.5
Executive  shall  promptly  return the  Compensation  Shares to the  Company for
cancellation.

                  (d)  If  this  Agreement  is  terminated  as a  result  of the
disability  of  Executive  under  Section  8.3,  Executive  shall be entitled to
receive, and Company shall pay to Executive:

                        (iii) the accrued  but unpaid  Base  Salary  through the
date of termination not later than the next regularly  scheduled payment date in
accordance with Section 6.1;

                        (iv) any  business  expenses  to be  reimbursed  but not
reimbursed under Section 7 not later than the next regularly  scheduled  payment
date in accordance with Section 7;

                  (e) If the Company  terminates this Agreement  "without cause"
under  Section 8.1; if Executive  terminates  this  Agreement  for "good reason"
under  Section 8.4; or if this  Agreement is terminated as a result of the death
or disability of Executive  under Section 8.3, the Warrants shall continue to be
given the  opportunity  to vest for the remainder of the then existing  Term. At
the end of such existing Term all non-vested Warrants shall be cancelled.

                  (f) If the Company terminates this Agreement "for cause" under
Section 8.2; or if Executive  terminates  this  Agreement  "without good reason"
under  Section 8.5, all Warrants  received by Executive  under Section 6.2 shall
become immediately void and of no further effect.

                                       6
<PAGE>

      9.  INTELLECTUAL  PROPERTY.  During the term of this Agreement,  Executive
shall disclose  immediately  to Company all ideas and inventions  that he makes,
conceives,  discovers or develops  during the course of employment with Company,
including  but  not  limited  to  any  inventions,  modifications,  discoveries,
developments,  improvements,  trademarks, computer programs, processes, products
or procedures (collectively "Work Product") that: (i) relates to the business of
Company;  or (ii) results from tasks assigned to Executive by Company;  or (iii)
results  from  the  use  of  the  premises  or  property  (whether  tangible  or
intangible) owned, leased or contracted for or by Company. Executive agrees that
any Work Product shall be the sole and exclusive property of Company without the
payment of any royalty or other  consideration  except for the compensation paid
to Executive hereunder.  Executive agrees that during the term of this Agreement
and  thereafter,  upon the  request of  Company  and at its  expense,  she shall
execute and deliver any and all applications,  assignments and other instruments
which  Company  shall deem  necessary  or  advisable  to transfer to and vest in
Company  Executive's  entire right, title and interest in and to all such ideas,
inventions,  trademarks  or other  developments  and to apply  for and to obtain
patents  or  copyrights  for  any  such  patentable  or   copyrightable   ideas,
inventions, trademarks and other developments.

      10. NON-DISCLOSURE OF INFORMATION.

            10.1 Executive  acknowledges  that by virtue of his position he will
be privy to Company's  confidential  information and trade secrets,  as they may
exist  from  time to time,  and that  such  confidential  information  and trade
secrets  may  constitute  valuable,   special,  and  unique  assets  of  Company
(hereinafter collectively "Confidential  Information").  Accordingly,  Executive
shall  not,  during  the  Term and for a period  of five (5)  years  thereafter,
intentionally  disclose all or any part of the  Confidential  Information to any
person,  firm,  corporation,  association  or any other entity for any reason or
purpose whatsoever, nor shall Executive and any other person by, through or with
Executive,  during  the  term and for a period  of five  (5)  years  thereafter,
intentionally make use of any of the Confidential Information for any purpose or
for the benefit of any other  person or entity,  other than  Company,  under any
circumstances.

            10.2 Company and  Executive  agree that a violation of the foregoing
covenants will cause irreparable  injury to Company,  and that in the event of a
breach or threatened  breach by Executive of the  provisions of this Section 10,
Company  shall  be  entitled  to  an  injunction   restraining   Executive  from
disclosing, in whole or in part, any Confidential Information, or from rendering
any services to any person,  firm,  corporation,  association or other entity to
whom  any such  information,  in whole  or in  part,  has been  disclosed  or is
threatened to be disclosed in violation of this Agreement. Nothing herein stated
shall be construed  as  prohibiting  Company from  pursuing any other rights and
remedies,  at  law or in  equity,  available  to  Company  for  such  breach  or
threatened breach, including the recovery of damages from Executive.

            10.3  Notwithstanding  anything  contained in this Section 10 to the
contrary,  "Confidential  Information"  shall not include (i) information in the
public domain as of the date hereof,  (ii)  information  which enters the public
domain  hereafter  through no fault of  Executive,  (iii)  information  created,
discovered  or  developed  by  Executive  independent  of his  association  with
Company,   provided  that  such   information   is  supported  by   accompanying
documentation of such independent development. Nothing contained in this Section
10 shall be deemed to  preclude  the proper  use by  Executive  of  Confidential
Information  in the  exercise  of his  duties  hereunder  or the  disclosure  of
Confidential Information required by law

                                       7
<PAGE>

      11.  ARBITRATION.  Other than with respect to a proceeding  for injunctive
relief  referred to herein,  any controversy or claim arising out of or relating
to this Agreement,  the performance  thereof or its breach or threatened  breach
shall be  settled  by  arbitration  in New  York,  New  York or  other  mutually
acceptable  place in accordance  with the then  governing  rules of the American
Arbitration  Association.  The finding of the  arbitration  panel or  arbitrator
shall be final and binding upon the parties with the costs of  arbitration to be
equally  borne by the  plaintiffs  and the  defendants,  i.e. the costs borne by
defendant side in the arbitration,  whether single or multiple,  shall equal the
costs  borne  by the  plaintiff  side  in the  arbitration,  whether  single  or
multiple.  Judgement  upon any  arbitration  award  rendered  may be entered and
enforced in any court of competent jurisdiction. In no event may the arbitration
determination    change    Executive's    compensation,    title,    duties   or
responsibilities,  the entity to whom Executive  reports or the principal  place
where Executive is to render his services.

      12. INDEMNIFICATION.

            12.1 (a) Indemnification of Expenses.  Except as provided in Section
12(b) hereof, the Company shall indemnify to the fullest extent permitted by law
if Executive was or is or becomes a party to or witness or other participant in,
or is threatened to be made a party to or witness or other  participant  in, any
threatened, pending or completed action, suit, proceeding or alternative dispute
resolution mechanism, or any hearing, inquiry or investigation that Executive in
good faith  believes  might lead to the  institution  of any such action,  suit,
proceeding or alternative dispute resolution mechanism, whether civil, criminal,
administrative,  investigative or other (hereinafter a "Claim") by reason of (or
arising  in part  out of) any  event or  occurrence  related  to the  fact  that
Executive  is or was a  director,  officer,  employee,  agent  or  fiduciary  of
Company,  or any  subsidiary of Company,  or is or was serving at the request of
Company  as a  director,  officer,  employee,  agent  or  fiduciary  of  another
corporation,  partnership,  joint venture,  limited liability company,  trust or
other  enterprise,  or by  reason  of any  action  or  inaction  on the  part of
Executive while serving in such capacity (hereinafter an "Indemnifiable  Event")
against any and all  expenses  (including  attorneys'  fees and all other costs,
expenses and obligations  incurred in connection with investigating,  defending,
being a witness in or  participating  in (including on appeal),  or preparing to
defend,  be a witness in or participate in, any such action,  suit,  proceeding,
alternative dispute resolution  mechanism,  hearing,  inquiry or investigation),
judgments,  fines,  penalties and amounts paid in settlement (if such settlement
is approved  in advance by Company,  which  approval  shall not be  unreasonably
withheld) of such Claim and any federal,  state,  local or foreign taxes imposed
on Executive as a result of the actual or deemed  receipt of any payments  under
this Agreement (collectively,  hereinafter "Expenses"),  including all interest,
assessments  and other charges paid or payable in connection  with or in respect
of such  Expenses.  Such payment of Expenses shall be made by Company as soon as
practicable but in any event no later than twenty days after Executive  presents
written demand therefor to Company.

                  (b) Limitation on Indemnification. The Company's obligation to
indemnify  Executive  pursuant  to this  Agreement  shall not  extend to acts of
Executive constituting gross negligence or other acts of malfeasance.

                                       8
<PAGE>

            12.2 Expenses; Indemnification Procedure.

                  (a)  Subject  to  the  other  terms  and  conditions  of  this
Agreement,  Company  shall  advance  all  Expenses  incurred by  Executive.  The
advances to be made  hereunder  shall be paid by Company to Executive as soon as
practicable  but in any event no later than twenty days after written  demand by
Executive therefor to Company.

                  (b) Executive  shall, as a condition  precedent to Executive's
right to be indemnified under this Agreement,  give Company notice in writing as
soon  as   practicable   of  any  Claim  made   against   Executive   for  which
indemnification will or could be sought under this Agreement.  Notice to Company
shall be directed to the Board of Directors  of Company at the address  shown on
the  signature  page of this  Agreement  and to the address of each Director (or
such other  address as Company  shall  designate  in writing to  Executive).  In
addition,  Executive  shall give Company such  information and cooperation as it
may reasonably require and as shall be within Executive's power.

                  (c) For purposes of this Agreement,  the  determination of any
Claim by judgment, order, settlement (whether with or without court approval) or
conviction,  or upon a plea of nolo  contendere,  or its  equivalent,  shall not
create a  presumption  that  Executive did not meet any  particular  standard of
conduct  or have any  particular  belief  or that a court  has  determined  that
indemnification is not permitted by applicable law.

                  (d) If, at the time of the receipt by Company of a notice of a
Claim pursuant to Section  12.2(b)  hereof,  Company has liability  insurance in
effect  which may cover such  Claim,  Company  shall give  prompt  notice of the
commencement of such Claim to the insurers in accordance with the procedures set
forth in the respective policies. Company shall thereafter take all necessary or
desirable  action to cause such  insurers  to pay, on behalf of  Executive,  all
amounts  payable  as a result  of such  action,  suit,  proceeding,  inquiry  or
investigation in accordance with the terms of such policies.

                  (e) In the event Company  shall be obligated  hereunder to pay
the  Expenses of any Claim,  Company  shall be entitled to assume the defense of
such Claim with  counsel  approved by  Executive,  which  approval  shall not be
unreasonably  withheld,  upon the delivery to Executive of written notice of its
election so to do. After  delivery of such  notice,  approval of such counsel by
Executive  and the  retention  of such  counsel by Company,  Company will not be
liable to Executive  under this  Agreement for any fees of counsel  subsequently
incurred  by  Executive  with  respect to the same  Claim;  provided  that,  (i)
Executive shall have the right to employ  Executive's  counsel in any such Claim
at  Executive's  expense and (ii) if (A) the  employment of counsel by Executive
has been previously  authorized by Company,  (B) Executive shall have reasonably
concluded that there is a conflict of interest  between Company and Executive in
the conduct of any such  defense,  or (C) Company  shall not  continue to retain
such  counsel to defend such Claim,  then the fees and  expenses of  Executive's
counsel  shall be at the  expense of  Company.  Company  shall have the right to
conduct such defense as it sees fit in its sole discretion,  including the right
to settle any claim against  Executive  without the consent of Executive so long
as in the case of the  settlement  (i)  Company  has the  financial  ability  to
satisfy any monetary  obligation  involving  Executive under such settlement and
(ii) the settlement does not impose  injunctive type relief on the activities of
Executive.  In all events,  Executive will not unreasonably withhold its consent
to any settlement.

                                       9
<PAGE>

            12.3 Additional Indemnification Rights; Nonexclusivity.

                  (a) Except as provided in Section  12(b)  hereof,  the Company
hereby  agrees to indemnify  Executive to the fullest  extent  permitted by law,
notwithstanding that such indemnification is not specifically  authorized by the
other  provisions of this  Agreement,  Company's  Certificate of  Incorporation,
Company's  Bylaws or by  statute.  In the event of any change  after the date of
this Agreement in any applicable law, statute or rule which expands the right of
a Delaware  corporation  to  indemnify a member of its Board of  Directors or an
officer,  employee,  agent or  fiduciary,  it is the intent and agreement of the
parties hereto that Executive shall enjoy by this Agreement the greater benefits
afforded  by such  change.  In the event of any  change in any  applicable  law,
statute or rule which narrows the right of a Delaware corporation to indemnify a
member of its Board of Directors or an officer,  employee,  agent or  fiduciary,
such change,  to the extent not otherwise  required by such law, statute or rule
to be applied to this  Agreement,  shall have no effect on this Agreement or the
parties' rights and obligations hereunder.

                  (b) The indemnification provided by this Agreement shall be in
addition  to any  rights to which  Executive  may be  entitled  under  Company's
Certificate  of  Incorporation,   its  Bylaws,   any  agreement,   any  vote  of
stockholders or disinterested  directors,  the Delaware General Corporation Law,
or otherwise.  The indemnification  provided under this Agreement shall continue
as to Executive for any action  Executive  took or did not take while serving in
an indemnified  capacity even though  Executive may have ceased to serve in such
capacity.

                  (c) Company  shall not be liable under this  Agreement to make
any payment in  connection  with any Claim made against  Executive to the extent
Executive has otherwise  actually  received payment (under any insurance policy,
Certificate  of  Incorporation,  Bylaw or  otherwise)  of the amounts  otherwise
indemnifiable hereunder.

                  (d) If  Executive  is  entitled  under any  provision  of this
Agreement  to  indemnification  by  Company  for some or a portion  of  Expenses
incurred in connection with any Claim,  but not,  however,  for all of the total
amount thereof,  Company shall nevertheless  indemnify Executive for the portion
of such Expenses to which Executive is entitled.

      13. NOTICES.  Any notice required,  permitted or desired to be given under
this  Agreement  shall be  sufficient  if it is in  writing  and (a)  personally
delivered to Executive or an authorized member of Company, (b) sent by overnight
delivery or (c) sent by registered or certified mail, return receipt  requested,
to  Company's  or  Executive's  address as  provided in this  Agreement  or to a
different address designated in writing by either party.  Notice is deemed given
on the day it is  delivered  personally  or by overnight  delivery,  or five (5)
business days after it is sent by registered or certified mail.

      14.  ASSIGNMENT.  Executive  acknowledges that his services are unique and
personal.  Accordingly,  Executive  may not assign his  rights or  delegate  his
duties or obligations  under this  Agreement.  Company's  rights and obligations
under this  Agreement  shall inure to the  benefit of and shall be binding  upon
Company's  successors and assigns.  15. WAIVER OF BREACH. Any waiver of a breach
of a provision  of this  Agreement,  or any delay or failure to exercise a right
under a provision of this  Agreement,  by either party,  shall not operate or be
construed as a waiver of that or any other subsequent breach or right.

                                       10
<PAGE>

      16. ENTIRE AGREEMENT.  This Agreement contains the entire agreement of the
parties.  It may not be changed orally but only by an agreement in writing which
is signed by the parties.  The parties hereto agree that any existing employment
agreement between them shall terminate as of the date of this Agreement.

      17. GOVERNING LAW; VENUE.  This Agreement shall be construed in accordance
with and governed by the laws of the New York as applied to  agreements  entered
into and to be  performed  entirely  in New York.  Any  dispute  or  controversy
concerning or relating to this Agreement  shall be  exclusively  resolved in the
courts located in the City of New York and the State of New York.

      18. SEVERABILITY. The invalidity or non-enforceability of any provision of
this Agreement or application  thereof shall not affect the remaining  valid and
enforceable provisions of this Agreement or application thereof.

      19. CAPTIONS.  Captions in this Agreement are inserted only as a matter of
convenience  and  reference  and shall not be used to  interpret or construe any
provisions of this Agreement.

      20.  COUNTERPARTS.   This  Agreement  may  be  executed  in  two  or  more
counterparts,  each of which shall be deemed to be an original, but all of which
together  shall  constitute  one and the  same  Agreement.  Delivery  of  signed
counterparts  via facsimile  transmission  shall be effective as manual delivery
thereof.

                            [SIGNATURE PAGE FOLLOWS]

                                       11
<PAGE>

      IN  WITNESS  WHEREOF,  each  of the  parties  hereto  has  executed  their
Agreement as of the date first herein above written.

COMPANY:

A.B. WATLEY GROUP, INC.

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

EXECUTIVE:

/s/ John G. Hewitt
-----------------------
John G. Hewitt

                                       12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]