Document:

EXHIBIT 10.1
                                AB WATLEY GROUP INC.
                                --------------------

                        2004 Non-Statutory Stock Option Plan

                           (As Amended on March 15, 2005)

            1. Purpose of the Plan. The AB Watley Group Inc. 2004 Non-Statutory
Stock Option Plan (the "Plan") is intended to advance the interests of AB Watley
Group Inc. (the "Company") by inducing individuals, and eligible entities (as
hereinafter provided) of outstanding ability and potential to join, remain with,
or provide employment, consulting or advisory services to, the Company, by
encouraging and enabling eligible employees, non-employee Directors, consultants
and advisors to acquire proprietary interests in the Company, and by providing
the participating employees, non-employee Directors, consultants and advisors
with an additional incentive to promote the success of the Company. This is
accomplished by providing for the granting of Non-Statutory Stock Options (the
"Options") to employees, non-employee Directors, consultants and advisors.

            2. Administration. The Plan shall be administered by the Board of
Directors of the Company (the "Board of Directors") or by a committee (the
"Committee") chosen by the Board of Directors. Except as herein specifically
provided, the interpretation and construction by the Board of Directors or the
Committee of any provision of the Plan or of any Option granted under it shall
be final and conclusive. The receipt of Options by Directors, or any members of
the Committee, shall not preclude their vote on any matters in connection with
the administration or interpretation of the Plan.

            3. Shares Subject to the Plan. The stock subject to Options granted
under the Plan shall be shares of the Company's Common Stock, par value $.001
per share (the "Common Stock"), whether authorized but unissued or held in the
Company's treasury. The maximum number of shares of Common Stock which may be
issued pursuant to Options granted under the Plan shall not exceed in the
aggregate six hundred thousand (600,000) shares, subject to adjustment in
accordance with the provisions of Section 11 hereof. The Company shall at all
times while the Plan is in force reserve such number of shares of Common Stock
as will be sufficient to satisfy the requirements of all outstanding Options
granted under the Plan. In the event any Option granted under the Plan shall
expire or terminate for any reason without having been exercised in full or
shall cease for any reason to be exercisable in whole or in part, the
un-purchased shares subject thereto shall again be available for Options under
the Plan.

            4. Participation. The class of individual or entity that shall be
eligible to receive Options under the Plan shall be all employees (including
officers) and non-employee Directors of, or consultants and advisors to, either
the Company or any subsidiary corporation of the Company; provided, however,
that Options shall not be granted to any such consultants and advisors unless
(i) bona fide services have been or are to be rendered by such consultant or
advisor and (ii) such services are not in connection with the offer or sale of
securities in a capital raising transaction. The Board of Directors or the
Committee, in its sole discretion, but subject to the provisions of the Plan,
shall determine the employees and non-employee Directors of, and the consultants
and advisors to, the Company and its subsidiary corporations to whom Options
shall be granted, and the number of shares to be covered by each Option, taking
into account the nature of the employment or services rendered by the
individuals or entities being considered, their annual compensation, their
present and potential contributions to the success of the Company, and such
other factors as the Board of Directors or the Committee may deem relevant.

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<PAGE>

            5. Stock Option Agreement. Each Option granted under the Plan shall
be authorized by the Board of Directors or the Committee, and shall be evidenced
by a Stock Option Agreement which shall be executed by the Company and by the
individual or entity to whom such Option is granted. The Stock Option Agreement
shall specify the number of shares of Common Stock as to which any Option is
granted, the period during which the Option is exercisable, the option price per
share thereof, and such other terms and provisions not inconsistent with this
Plan.

            6. Grant of Non-Statutory Stock Options. The Options granted under
the Plan are not intended to meet the requirements of Section 422 of the
Internal Revenue Code of 1986, as amended (the "Code). The Options shall be
subject to the following terms and conditions:

            (1) An Option may be granted to any individual or entity eligible to
receive an Option under the Plan pursuant to Section 4 hereof.

            (2) The option price of the shares of Common Stock subject to an
Option shall be determined by the Board of Directors or the Committee, in its
sole discretion, at the time of the grant of the Option.

            (3) An Option granted under the Plan may be of such duration as
shall be determined by the Board of Directors or the Committee (subject to
earlier termination as expressly provided in Section 9 hereof).

            7. Rights of Option Holders. The holder of any Option granted under
the Plan shall have none of the rights of a stockholder with respect to the
stock covered by his Option until such stock shall be transferred to him upon
the exercise of his Option.

            8. Transferability. No Option granted under the Plan shall be
transferable by the individual or entity to whom it was granted otherwise than
by will or the laws of descent and distribution, and, during the lifetime of
such individual, shall not be exercisable by any other person, but only by him.

            9.  Termination  of Employment  or Death.

            (a) Except as  otherwise  provided  in the Stock  Option
            Agreement,  if the  employment of an employee by, or the
            services of a  non-employee  Director for, or consultant
            or advisor to, the Company or a  subsidiary  corporation
            of the  Company,  shall be  terminated  for any  reason,
            other  than  cause,  including,   but  not  limited  to,
            voluntary  termination,  or permanent disability,  then,
            subject to subsections  (b), (c) and (d) of this Section
            9, his or its Option  may be  exercised  anytime  within
            five (5) years after such  termination.  For purposes of
            this subsection (a), an employee, non-employee Director,
            consultant  or advisor who leaves the employ or services
            of the  Company to become an  employee  or  non-employee
            Director of, or a consultant or advisor to, a subsidiary
            corporation   of  the  Company  or  a  corporation   (or
            subsidiary  or parent  corporation  of the  corporation)
            which has  assumed the Option of the Company as a result
            of a corporate  reorganization  or the like shall not be
            considered  to  have   terminated   his   employment  or
            services.

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            (b) Subject to the terms of the Stock Option  Agreement,
            if the holder of an Option under the Plan dies (i) while
            employed by, or while serving as a non-employee Director
            for or a  consultant  or advisor  to,  the  Company or a
            subsidiary  corporation  of the Company,  or (ii) within
            five (5) years after the  termination  of his employment
            or services, other than for cause, then such Option may,
            subject  to the  provisions  of  subsection  (d) of this
            Section 9, be exercised by the estate of the employee or
            non-employee  Director,  consultant or advisor,  or by a
            person who acquired the right to exercise such Option by
            bequest or inheritance or by reason of the death of such
            employee or non-employee Director, consultant or advisor
            at any time within one (1) year after such death.

            (c) If the employment of an employee by, or the services
            of a non-employee Director for, or consultant or advisor
            to,  the  Company  or a  subsidiary  corporation  of the
            Company,  shall be terminated  for cause then his or its
            option shall expire and be forfeited effective as at the
            date of termination.

            (d) An  Option  may not be  exercised  pursuant  to this
            Section  9 except  to the  extent  that the  holder  was
            entitled  to   exercise   the  Option  at  the  time  of
            termination of employment,  termination of directorship,
            termination  of  consulting  or  advisory  services,  or
            death,  and in any event may not be exercised  after the
            expiration of the Option.

            10. Exercise of Options.

            (a) Unless otherwise provided in the Stock Option Agreement, any
Option granted under the Plan shall be exercisable in whole at any time, or in
part from time to time, prior to expiration. The Board of Directors or the
Committee, in its absolute discretion, may provide in any Stock Option Agreement
that the exercise of any Options granted under the Plan shall be subject (i) to
such condition or conditions as it may impose, including, but not limited to, a
condition that the holder thereof remain in the employ or service of, or
continue to provide consulting or advisory services to, the Company or a
subsidiary corporation of the Company for such period or periods from the date
of grant of the Option as the Board of Directors or the Committee, in its
absolute discretion, shall determine; and (ii) to such limitations as it may
impose.

            (b) An Option granted under the Plan shall be exercised by the
delivery by the holder thereof to the Company at its principal office (attention
of the Secretary) of written notice of the number of shares with respect to
which the Option is being exercised. The notice shall be given pursuant to the
Notice of Exercise form attached to the Stock Option Agreement. Such notice
shall be accompanied by payment of the full option price of such shares, and
payment of such option price shall be made by the holder's delivery of (i) his
check payable to the order of the Company, (ii) previously acquired Common
Stock, the fair market value of which shall be determined as of the date of
exercise, if this method of payment is otherwise permitted by the Stock Option
Agreement, (iii) by "cash-less" exercise, if cash-less exercise is otherwise
permitted by the Stock Option Agreement, or (iv) by the holder's delivery of any
combination of the foregoing (i), (ii) and (iii) to the extend permitted by the
Stock Option Agreement.

            11. Adjustment Upon Change in Capitalization.

            (a) In the event that the outstanding Common Stock is hereafter
changed by reason of reorganization, merger, consolidation, recapitalization,
reclassification, stock split-up, combination of shares, reverse split, stock
dividend or the like, an appropriate adjustment shall be made by the Board of
Directors or the Committee in the aggregate number of shares available under the
Plan, and in the number of shares and option price per share subject to
outstanding Options. If the Company shall be reorganized, consolidated, or
merged with another corporation, the holder of an Option shall be entitled to
receive upon the exercise of his Option the same number and kind of shares of
stock or the same amount of property, cash or securities as he would have been
entitled to receive upon the happening of any such corporate event as if he had
been, immediately prior to such event, the holder of the number of shares
covered by his Option.

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<PAGE>

            (b) Any adjustment in the number of shares shall apply
proportionately to only the unexercised portion of the Option granted hereunder.
If fractions of a share would result from any such adjustment, the adjustment
shall be revised to the next lower whole number of shares.

            10. Further Conditions of Exercise.

            (a) Unless prior to the exercise of the Option, the shares issuable
upon such exercise have been registered with the Securities and Exchange
Commission pursuant to the Act, the notice of exercise shall be accompanied by a
representation or agreement of the person or estate exercising the Option to the
Company to the effect that such shares are being acquired for investment
purposes and not with a view to the distribution thereof, and such other
documentation as may be required by the Company, unless in the opinion of
counsel to the Company such representation, agreement or documentation is not
necessary to comply with such Act.

            (b) The Company shall not be obligated to deliver any Common Stock
until there has been qualification under or compliance with such federal or
state laws, rules or regulations as the Company may deem applicable.

            11. Effectiveness of the Plan. The Plan shall become operative and
in effect on such date as shall be fixed by the Board of Directors of the
Company in its sole discretion.

            12. Termination, Modification and Amendment.

            (a) The Plan (but not the Options) shall terminate on a date within
ten (10) years from the date of its adoption by the Board of Directors of the
Company, or sooner as hereinafter provided, and no Option shall be granted after
termination of the Plan.

            (b) The Board of Directors may at any time, on or before the
termination date referred to in Section 14(a) hereof, terminate the Plan, or
from time to time make such modifications or amendments to the Plan as it may
deem advisable; provided, however, that the Board of Directors shall not
increase (except as otherwise provided by Section 11 hereof) the maximum number
of Options which may be granted hereunder.

            (c) No termination, modification, or amendment of the Plan may,
without the consent of the individual or entity to whom any Option shall have
been granted, adversely affect the rights conferred by such Option.

            13. Not a Contract of Employment. Nothing contained in the Plan or
in any Stock Option Agreement executed pursuant hereto shall be deemed to confer
upon any individual or entity to whom an Option is or may be granted hereunder
any right to remain in the employ or service of the Company or a subsidiary
corporation of the Company or any entitlement to any remuneration or other
benefit pursuant to any consulting or advisory arrangement.

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<PAGE>

            14. Use of Proceeds.  The proceeds from the sale of shares  pursuant
to Options granted under the Plan shall constitute general funds of the Company.

            15. Indemnification of Board of Directors or Committee. In addition
to such other rights of indemnification as they may have, the members of the
Board of Directors or the Committee, as the case may be, shall be indemnified by
the Company to the extent permitted under applicable law against all costs and
expenses reasonably incurred by them in connection with any action, suit, or
proceeding to which they or any of them may be a party by reason of any action
taken or failure to act under or in connection with the Plan or any rights
granted thereunder and against all amounts paid by them in settlement thereof or
paid by them in satisfaction of a judgment of any such action, suit or
proceeding, except a judgment based upon a finding of bad faith. Upon the
institution of any such action, suit, or proceeding, the member or members of
the Board of Directors or the Committee, as the case may be, shall notify the
Company in writing, giving the Company an opportunity at its own cost to defend
the same before such member or members undertake to defend the same on his or
their own behalf.

            16. Governing Law. The Plan shall be governed by, and all questions
arising hereunder shall be determined in accordance with, the laws of the State
of New York.

                                       5EXHIBIT 10.2

                          SETTLEMENT AGREEMENT AND RELEASE
                          --------------------------------

AGREEMENT made this 28th day of April 2005 by and between Singer Frumento LLP
("Singer Frumento"), by and through its attorneys Liam O'Brien & Associates
P.C., and A.B. Watley Group, Inc., A.B. Watley Direct, Inc., and Robert F. Malin
(hereinafter "A.B. Watley");

WHEREAS, A.B. Watley acknowledges that it has not honored the terms of
Settlement Agreements between the Parties dated July 22, 2004; September 9,
2004; and November 1, 2004; and,

WHEREAS, A.B. Watley owes Singer Frumento $80,667.66 for legal services
provided; and,

WHEREAS, the Parties to this Settlement Agreement wish to settle all claims or
potential claims between them, to avoid the expense of litigation, and

WHEREAS, the Parties wish to maintain the confidentiality of the terms of this
settlement; and

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth
herein, the Parties hereto agree as follows:

1. A.B. Watley will pay to Singer Frumento settlement funds in the amount of
$56,000 (the "Settlement Amount").

2. A.B. Watley will make eight monthly payments of $2,000 from March 2005
through October 2005 to Singer Frumento;

3. A.B. Watley authorizes Singer Frumento's legal counsel to negotiate the March
2005 payment currently in its possession and will immediately forward to Singer
Frumento the payment due for April 2005;

4. A.B. Watley will make a final balloon payment of $40,000 to Singer Frumento
by December 10, 2005. This amount is comprised of the original final payment
agreed by the Parties in the amount of $22,000, legal fees incurred to date by
Singer Frumento in the amount of $8,000 plus a default penalty of $10,000;

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<PAGE>

5. The settlement drafts shall be made payable to "Liam O'Brien & Associates
P.C. as attorneys for Singer Frumento LLP". Delivery of all payments shall be
made either in person or by mail addressed to Liam O'Brien & Associates P.C.,
420 Lexington Avenue, Suite 244, New York, New York 10170.

6. In the event that A.B. Watley fails to timely make any payment due and owing
as described above, then Singer Frumento, or its counsel, shall give notice of
default to A.B. Watley by facsimile and regular mail to Robert Malin, A.B.
Watley Group, Inc., 90 Park Avenue, New York, New York 10016 at (212) 682-4372.
Thereafter, A.B. Watley shall have seven (7) business days to cure said default
and, in the event A.B. Watley fails to cure said default; Singer Frumento shall
be authorized and permitted to pursue whatever remedy it deems appropriate to
procure payment. The cure provisions of this paragraph do not apply to the
initial payment and, thereafter, A.B. Watley will only be permitted to take
advantage of the cure provisions set forth in this paragraph on six separate
occasions.

7. A.B. Watley agrees to deliver a duly executed copy of this Agreement together
with a duly executed copy of the Confession of Judgment as attached hereto which
shall be held in escrow unless A.B.Watley fails to make the payments as set
forth above.

8. Notwithstanding any other provision of this Agreement, in the event that A.B.
Watley breaches this Agreement, and after A.B. Watley's notice and opportunity
to cure has elapsed, Singer Frumento shall be entitled to pursue any remedy
available to it at law and equity and shall not be restricted to utilizing the
Confession of Judgment.

9. A.B. Watley will issue 500,000 shares (the "Stock") of A.B. Watley Group,
Inc. restricted stock to Bill Singer, Esq. with piggyback registration rights.
Subject to the terms of this Section 9, the Stock shall not be sold or
transferred by Mr. Singer, and, following payment in full of the Settlement
Amount by A.B. Watley, the Stock shall be returned to A.B. Watley within ten
(10) business days. Notwithstanding the foregoing, in the event of a default
that is not cured in accordance with the provisions of Paragraph 6, the 500,000
shares will no longer be subject to the contractual sale and transfer
restriction provided above and will no longer be subject to return to A.B.
Watley. A.B. Watley Group, Inc. shall file a registration statement under the
Securities Act with respect to an offering of its equity securities which shall
include the registration of the resale of the shares of Stock issued to Bill
Singer by November 1, 2005. Failure to file the registration statement by
November 1, 2005 will be deemed a default. All parties hereto acknowledge that
the provisions of this Paragraph are material terms to this Settlement
Agreement.

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<PAGE>

10. Upon receipt of the 500,000 shares, Singer Frumento will return the 200,000
restricted shares of A. B. Watley Group, Inc. that it currently holds.

11. A. B. Watley shall file the registration statement respecting the
sale of the Stock no later than November 1, 2005 and in connection therewith
shall:

(a) prepare and file with the Securities and Exchange Commission a registration
statement on any form for which A.B. Watley Group, Inc. then qualifies; provided
that, (i) before filing a registration statement or prospectus or any amendments
or supplements thereto, A.B. Watley will furnish to Liam O'Brien & Associates
P.C. copies of all such documents proposed to be filed, which documents will be
subject to the review and reasonable comment of such counsel and (ii) after the
filing of the registration statement, A.B. Watley shall promptly notify Liam
O'Brien & Associates P.C. of any stop order issued or, to the knowledge of A.B.
Watley, threatened by the Securities and Exchange Commission and take all
reasonable actions to prevent the entry of such stop order or to remove it if
entered;

(b) prepare and file with the Securities and Exchange 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
effective for a period of not less than ninety (90) days or such shorter period
as shall terminate when the sale of the Stock covered by such registration
statement shall have been completed (but not before the expiration of the ninety
day (90) period referred to in Section 4(3) of the Securities Act and Rule 174
thereunder, if applicable) and comply with the provisions of the Securities Act
with respect to the disposition of all securities covered by such registration
statement during such period in accordance with the intended methods of
disposition by Bill Singer set forth in such registration statement;

                                       3
<PAGE>

(c) as soon as reasonably practicable, furnish to Liam O'Brien & Associates,
P.C., prior to filing a registration statement, copies of such registration
statement as proposed to be filed and thereafter furnish to such Liam O'Brien &
Associates P.C. such number of copies of such registration statement, each
amendment and supplement thereto, the prospectus included in such registration
Statement (including each preliminary prospectus) and such other documents as
Liam O'Brien & Associates P.C. may reasonably request in order to facilitate the
disposition of the Stock owned by Bill Singer;

(d) Register or qualify such Stock under such other securities or blue sky laws
of such jurisdictions within the United States and Canada as Liam O'Brien &
Associates reasonably requests and do any and all other acts and things which
may be reasonably necessary or advisable to enable Bill Singer to consummate the
disposition in such jurisdictions of the Stock owned by Bill Singer; provided
that A.B. Watley Group, Inc. shall not be required to (i) qualify generally to
do business or file a general consent to service of process in any jurisdiction
or (ii) take any action that would subject itself to taxation in any such
jurisdiction;

(e) promptly notify Liam O'Brien & Associates P.C., at any time when a
prospectus relating thereto is required to be delivered under the Securities
Act, of the occurrence of any event known to A.B. Watley requiring the
preparation of a supplement or amendment to such prospectus so that, as
thereafter delivered to the purchasers or recipients of such Stock, such
prospectus will not contain an untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein not misleading and promptly make available to Bill Singer any
such supplement or amendment;

                                       4
<PAGE>

(f) make available for reasonable inspection by Bill Singer, any underwriter
participating in any sale or distribution pursuant to such registration
statement, and any attorney, accountant or other agent retained by Bill Singer
(collectively, the "Inspectors") all financial and other records, pertinent
corporate documents and properties of A.B. Watley (collectively, the "Records")
as shall be reasonably necessary to enable them to exercise their due diligence
responsibility, and cause A.B. Watley Group, Inc.'s officers and employees to
supply all information reasonably requested for such purpose by any such
Inspector in connection with such registration statement; provided that A.B.
Watley Group, Inc. shall have no obligation to permit such access to the Records
or its officers or employees in a manner that would unreasonably disrupt the
normal conduct of its business operations. Bill Singer and/or each Inspector
that actually reviews Records supplied by A.B. Watley Group, Inc. that include
information that A.B. Watley Group, Inc. identifies, in good faith, as being
confidential or proprietary ("Confidential Information") shall be required at
A.B. Watley Group, Inc.'s option, prior to any such review, to execute an
agreement with A.B. Watley Group, Inc. providing that Bill Singer and/or such
Inspector shall not publicly disclose any Confidential Information unless such
disclosure is required by applicable law or legal process and shall not use such
information for any purpose other than the limited purpose contemplated by this
subsection (f). Bill Singer and/or each Inspector shall be required further to
agree that it shall, upon learning that disclosure of Confidential Information
is sought in a court of competent jurisdiction, give notice to A.B.Watley Group,
Inc. and allow A.B. Watley Group, Inc., at its expense, to undertake appropriate
action to prevent disclosure of the Confidential Information;

(g) in the event such sale is pursuant to an underwritten offering, use its
reasonable best efforts to obtain a comfort letter or letters from A.B. Watley
Group, Inc.'s independent public accountants in customary form and covering such
matters of the type customarily covered by comfort letters as the managing
underwriter reasonably requests; and

(h) otherwise use its reasonable efforts to comply with all applicable rules and
regulations of the Securities and Exchange Commission and make available to its
security holders, as soon as reasonably practicable, an earnings statement
complying with the provisions of Section 11(a) of the Securities Act (including,
at the option of A.B. Watley Group, Inc., pursuant to Rule 158, or any successor
provision, under the Securities Act).

                                       5
<PAGE>

Upon receipt of any notice from A.B. Watley Group, Inc. of the occurrence of any
event of the kind described in subsection (e) hereof, Bill Singer shall
forthwith discontinue all offerings, sales and other dispositions of Stock
pursuant to the registration statement covering such Stock until Bill Singer's
receipt of the copies of the supplemented or amended prospectus contemplated by
subsection (e) hereof. In the event A.B. Watley Group, Inc. shall give any such
notice, A.B. Watley Group, Inc. shall extend the period during which such
registration statement shall be maintained effective pursuant to this Agreement,
including the period referred to in subsection (b) hereof, by the number of days
during the period from and including the date of the giving of such notice
pursuant to subsection (b) hereof to and including the first date on which Bill
Singer shall have received the copies of the supplemented or amended prospectus
contemplated by subsection (e) hereof. Bill Singer shall notify A.B. Watley if
any event relating to him occurs which would require the preparation of a
supplement or amendment to the prospectus so that such prospectus will not
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading.

12. Simultaneous with payment in full of the Settlement Amount, the Parties
shall release and forever discharge each other, their predecessors and
successors, affiliates, subsidiaries and affiliates and subsidiaries hereafter
created or acquired, their present and former officers, directors, successors,
assigns, attorneys, trustees, representatives, employees and agents, present and
former, from any and all manner of action and actions, causes and causes of
action, suits, debts, sums of money due, controversies, promises, damages,
judgments, executions, claims and demands of any nature whatsoever which the
Parties, or their predecessors, successors or assigns ever had, or now have
against each other for upon or reason of any matter, cause or thing whatsoever,
known or unknown, from the beginning of the world to the date of this Settlement
Agreement.

13. The Parties and their counsel will not, except as required by law, (1)
disclose to anyone the settlement terms as set forth herein or as previously
negotiated except as necessary to their accountants, and/or (2) deliver to any
third parties any materials obtained by the Parties. This paragraph is not
intended to prohibit the Parties from responding to requests made by, or
providing information to, a self-regulatory organization or the Securities and
Exchange Commission that identifies itself to the Parties as an organization of
which either of the Parties is a member and which has authority to request such
information. All parties hereto acknowledge that the provisions of this
Paragraph are material terms to this Settlement Agreement.

                                       6
<PAGE>

14. This Settlement Agreement is the complete and integrated understanding of
the Parties with respect to all matters addressed herein and supersedes all
prior understandings and agreements, if any, among the Parties with respect to
the subject matter hereof. The terms of this Settlement Agreement may be
modified only by the written agreement of the Parties.

15. This Settlement Agreement is executed solely for the consideration above
explained and the Parties acknowledge and agree that they have not entered into
this Settlement Agreement in reliance on any other statement or representations
by the Parties hereto or by any other person not a party hereto. Each party has
carefully read this Settlement Agreement, has had an opportunity to discuss it
with counsel, fully understands its contents and, understanding such, sign it as
his or her own free act.

16. The Parties covenant and warrant that no claim released herein has
previously been conveyed, assigned or in any manner transferred in whole or in
part, to any third party, and the Parties have full authority to release any and
all claims released pursuant to this Settlement Agreement.

17. This Settlement Agreement and the terms, covenants, conditions, provisions,
obligations, undertakings, rights and benefits hereof shall be binding upon and
shall inure to the benefit of the undersigned Parties and their respective
heirs, executors, administrators, legal representatives, successors,
predecessors and assigns.

18. The Parties acknowledge, understand and represent that this Settlement
Agreement is entered into only for the purpose of the settlement and compromise
of disputed claims and that any action taken pursuant to this Settlement
Agreement is not to be construed or considered as an admission of liability or
fault on the part of any party.

19. This Settlement Agreement shall in all respects be governed by and construed
in accordance with the laws of the State of New York, including all matters of
construction, validity and performance, without regard to conflicts of law
principles. Any provision of this Settlement Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
only to the extent of such prohibition or unenforceability without invalidating
the remaining provisions hereof, and any such prohibition or unenforceability in
any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.

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<PAGE>

20. This Settlement Agreement may be executed in facsimile counterparts, and the
separate executed copies taken together shall constitute a whole.

Dated: New York, New York
       April 28, 2005

Robert F. Malin, in his individual capacity and for A.B. Watley Group, Inc., and
A.B. Watley Direct, Inc.

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

STATE OF NEW YORK       )
                        )  ss.
COUNTY OF NEW YORK      )

On the 28th day of April 2005, before the undersigned, a Notary Public in and
for said County and State, personally appeared Robert F. Malin and known to me
to be the person whose name is subscribed to the within instrument, and
acknowledged that he has read and executed the same.

                                          /s/ William G. Goodenough
                                          -------------------------
                                          Notary Public
                                          My Commission Expires
Singer Frumento, LLP

By:/s/ Bill Singer
   ------------------

STATE OF NEW YORK       )
                        )  ss.
COUNTY OF NEW YORK      )

On the 2nd day of May 2005, before the undersigned, a Notary Public in and for
said County and State, personally appeared Bill Singer and known to me to be the
person whose name is subscribed to the within instrument, and acknowledged that
he has read and executed the same.

                                          /s/ Felicia Hernandez
                                          ---------------------
                                          Notary Public
                                          My Commission Expires

                                       8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]