Document:

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                                                                    Exhibit 4.3

                          REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement is made as of this 11th day of February,
2000, by and among 24/7 Media, Inc., a Delaware corporation (the "Company"),
Sabela Media, Inc., a Delaware corporation, and the persons set forth on
Exhibit A hereto (each a "Management Holder," and the Management Holders, the
Other Holders and the Non-Management Holders shall collectively be referred
to as the "Sellers").

                                    RECITALS:

WHEREAS, certain of the parties hereto have entered into an Agreement and Plan
of Merger of even date herewith (the "Merger Agreement"), in connection with
which the Sellers and Erland & Company ("Erland") acquired certain shares of the
Company's common stock, par value $.01 per share (the "Shares");

NOW, THEREFORE, in consideration of the foregoing, the mutual covenants and
agreements contained herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, it is agreed as
follows:

1.       DEFINITIONS.  For purposes of this Agreement:

         (a) "Common Stock" means the common stock, par value $.01 per share, of
the Company.

         (b) "Dispose of" means to (x) offer, sell, pledge, hypothecate or
otherwise dispose of Shares or (y) establish or increase any "put equivalent
position" (as defined in Rule 16a-1(h) under the Exchange Act) with respect to
Shares; PROVIDED, HOWEVER, such term shall not include transfers of Shares due
to (i) the death of a Holder; (ii) the merger, consolidation or sale of the
Company; (iii) the transfer of Shares to any wholly-owned subsidiary or parent
of a Holder; or (iv) any transfer to a trust of which there are no beneficiaries
other than the parents, spouse or children of such Holder.

         (c) "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

         (d) "Form S-3" means such form under the Securities Act as in effect on
the date hereof or any registration form under the Securities Act subsequently
adopted by the SEC, which permits inclusion or incorporation of substantial
information by reference to other documents filed by the Company with the SEC.

         (e) "Holder" means any Person owning or having the right to acquire
Registrable Securities, or any assignee thereof in accordance with Section 8.

         (f) "Other Holders" means the persons set forth on Exhibit A hereto,
or any assignee thereof in accordance with Section 8.

         (g) "Corporate Holders" means MemberWorks and National Discount
Brokers.

         (h) "Person" means any individual, partnership, limited liability
company, joint venture, corporation, association, trust or any other entity or
organization.

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         (i) "Register," "registered" and "registration" refer to a registration
effected by preparing and filing a registration statement or similar document in
compliance with the Securities Act, and the declaration or ordering of
effectiveness of such registration statement or document.

         (j) "Registrable Securities" means any unregistered shares of Common
Stock held by, issuable to, or subsequently acquired by, the Sellers and any
shares of Common Stock issued or issuable with respect to any such shares of
Common Stock by way of stock dividend or stock split, or in connection with a
combination of shares, recapitalization, merger, consolidation, or other
reorganization or otherwise and; PROVIDED, HOWEVER, that any such securities
shall cease to be Registrable Securities when (i) such securities are sold by a
Holder in a transaction in which such Holder's rights under this Agreement are
not assigned pursuant to Section 8 below, or (ii) such lsecurities shall be
salable within a three-month period pursuant to Rule 144 (or any similar
successor rule that may be promulgated by the SEC).

         (k) "SEC" means the Securities and Exchange Commission.

         (l) "Securities Act" means the Securities Act of 1933, as amended.

         (m) "Violation" means any of the following statements, omissions or
violations: (i) any untrue statement or alleged untrue statement of a material
fact contained in a registration statement under this Agreement, including any
preliminary prospectus or final prospectus contained therein or any amendments
or supplements thereto or any documents filed under state securities or "blue
sky" laws in connection therewith, (ii) the omission or alleged omission to
state in any of the foregoing a material fact required to be stated therein, or
necessary to make the statements therein not misleading, or (iii) any violation
or alleged violation by the Company of the Securities Act, the Exchange Act, any
other federal, state or common law or any rule or regulation promulgated under
the Securities Act, the Exchange Act or any state securities law.

2.       REGISTRATION.

         (a) The Company shall use commercial reasonable efforts to prepare,
and, on or prior to June 30, 2000, file with the SEC one or more Registration
Statements on Form S-3 (or, if Form S-3 is not then available, on such form
of Registration Statement as is then available to effect a registration of
the Registrable Securities) pursuant to Rule 415 covering the resale from
time to time of (i) 100% of the Registrable Securities held by the Corporate
Holders and (ii) 33 1/3% of the Registrable Securities held by the Other
Holders.

         (b) Notwithstanding Section 2(a) or 2(e), if the Company shall furnish
to Holders a certificate signed by the Chief Executive Officer of the Company
stating that in the good faith judgment of the Board of Directors of the
Company, it would be seriously detrimental to the Company and its shareholders
for any such registration statement to be filed by reason of a material pending
transaction and it is therefore essential to defer the filing of any such
registration statement, the Company shall have the right to defer such filing
for a period of not more than ninety (90) days; PROVIDED, HOWEVER, that the
Company during such deferment may not file a registration statement for
securities to be issued and sold for its own account or that of other
stockholders and; PROVIDED, FURTHER, the Company may not utilize this right more
than once in any 12-month period.

         (c) If (but without any obligation to do so) at any time the Company
proposes to register (including for this purpose a registration effected by the
Company for shareholders other than the Holders) any of its stock or other
securities under the Securities Act in connection with the public

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offering (whether for the account of the Company or for selling stockholders)
of such securities (other than a registration on Form S-8 relating solely to
the sale of securities to participants in the Company's 1998 Stock Incentive
Plan or other Company stock plan or to other compensatory arrangements to the
extent includible on Form S-8, or a registration on Form S-4), the Company
shall, at such time, promptly give each Holder written notice of such
registration. Upon the written request of each Holder given within ten (10)
days after receipt by such Holder of such notice by the Company in accordance
with Section 15, the Company shall, subject to Section 2(d), use its best
efforts to cause to be registered under the Securities Act all of the
Registrable Securities that are not, on the date of filing by the Company of
such Registration Statement, subject to the Resale Restrictions imposed by
Section 9 hereof, that each such Holder has requested to be registered. The
Company shall have no obligation under this Section 2(c) to make any offering
of its securities, or to complete an offering of its securities that it
proposes to make, and shall incur no liability to any Holder for its failure
to do so. No registration effected under this Section 2(c) shall relieve the
Company of any of its obligations to effect registrations under Section 2(a).

         (d) In connection with any offering involving an underwriting of shares
being issued by the Company, the Company shall not be required under Section
2(c) to include any Holder's securities in such underwriting unless such Holder
accepts the terms of the underwriting as agreed upon between the Company and the
underwriters selected by the Company, and then only in such quantity as will
not, in the opinion of the underwriters, jeopardize the success of the offering
by the Company; provided, however, that (i) no Holder participating in such
underwriting shall be required to make any representations, warranties or
indemnities except as they relate to such Holder's ownership of shares and
authority to enter into the underwriting agreement and such Holder's intended
method of distribution, and (ii) the liability of such Holder shall be limited
to an amount equal to the net proceeds from the offering received by such
Holder. If the total amount of securities, including Registrable Securities,
requested by shareholders to be included in any offering referred to in Section
2(c) exceeds the amount of securities sold other than by the Company that the
underwriters reasonably believe compatible with the success of the offering,
then the Company shall be required to include in the offering only that number
of such securities, including Registrable Securities, which the underwriters
believe will not jeopardize the success of the offering. The securities so
included shall be apportioned pro rata among the selling shareholders subject to
any priority of registration rights heretofore granted to existing stockholders
under the April 9 Agreement (as hereinafter defined). The Sellers acknowledge
that existing shareholders of the Company owning a substantial number of
unregistered shares have registration rights that are senior to those being
granted hereunder and that such rights will not impact the Sellers' rights under
Section 2(a) hereof.

3. OBLIGATIONS OF THE COMPANY. Whenever required under this Agreement to effect
the registration of any Registrable Securities, the Company shall at its sole
cost:

         (a) Promptly prepare and file with the SEC a registration statement
with respect to such Registrable Securities and use its best efforts to cause
such registration statement to become effective expeditiously, and, upon the
request of the Holders of a majority of the Registrable Securities being
registered thereunder, keep such registration statement effective for at least
12 months or until the Holders have completed the distribution referred to in
such registration statement, whichever occurs first (but in any event for at
least any period required under the Securities Act); provided that before filing
such registration statement or any amendments thereto, the Company will furnish
to the Holders copies of all such documents proposed to be filed.

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         (b) Prepare and file with the SEC such amendments and supplements to
such registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
registration statement.

         (c) Furnish (at no cost) to the Holders such number of copies of such
registration statement and of each amendment and supplement thereto (in each
case including all exhibits), such number of copies of the prospectus contained
in such registration statement (including each preliminary prospectus and any
summary prospectus) and, one copy of the signed registration statement and any
post-effective amendment thereto, any other prospectus filed under Rule 424
under the Securities Act, in conformity with the requirements of the Securities
Act, and such other documents incorporated by reference in the registration
statement and such other documents as Holders may reasonably request in order to
facilitate the disposition of Registrable Securities owned by them.

         (d) Use its best efforts to register and qualify the securities covered
by such registration statement under such other securities or "blue sky" laws of
such states or U.S. jurisdictions as shall be reasonably requested by the
Holders and do any and all other acts and things which may be reasonably
necessary to enable each participating Holder to consummate the disposition of
the Registrable Securities owned by it in such jurisdiction; provided that the
Company shall not be required in connection therewith or as a condition thereto
(i) to qualify to do business in any state or jurisdiction where it would not
otherwise be required to qualify but for the requirements of this clause (d), or
(ii) to file a general consent to service of process in any such state or
jurisdiction.

         (e) Use its best efforts to cause all Registrable Securities covered by
such registration statement to be, and remain during the period provided in
Section 3(a), registered with or approved by such other governmental agencies or
authorities as may be necessary by virtue of the Company's business or
operations to enable the seller or sellers thereof to consummate the disposition
of such Registrable Securities.

         (f) Immediately notify each Holder of Registrable Securities covered by
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
as a result of which the prospectus included in such registration statement, as
then in effect, includes an 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 the light of the circumstances then
existing and if it is necessary to amend or supplement such prospectus to comply
with law, and at the request of any other Holder, prepare and furnish, at no
cost, to such Holder a reasonable number of copies of a supplement to or an
amendment of such prospectus as may be necessary so that, as thereafter
delivered to the purchasers of Shares of Common Stock, such prospectus shall not
include any 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,
in the light of the circumstances then existing, not misleading and so that such
prospectus, as amended or supplemented, will comply with law.

         (g) Immediately notify each Holder of Registrable Securities covered by
such registration statement and confirm such advice in writing: (i) when the
registration statement has become effective, (ii) when any post-effective
amendment to the registration statement becomes effective and (iii) of any
request by the SEC for any amendment or supplement to the registration statement
or prospectus or for additional information.

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         (h) Notify each Holder of Registrable Securities if at any time the SEC
or any state securities commission or other regulatory authority should
institute or threaten to institute any proceedings for the purpose of issuing,
or should issue, a stop order suspending the effectiveness of the Registration
Statement. Upon the occurrence of any of the events mentioned in the preceding
sentence, the Company will use its best efforts to prevent the issuance of any
such stop order or to obtain the withdrawal thereof as soon as possible. The
Company will advise each Holder of Registrable Securities promptly of any order
or communication of any public board or body addressed to the Company suspending
or threatening to suspend the qualification of any Registrable Securities for
sale in any jurisdiction.

         (i) As soon as practicable after the effective date of the registration
statement, and in any event within sixteen (16) months thereafter, have "made
generally available to its security holders" (within the meaning of Rule 158
under the Securities Act) an earning statement (which need not be audited)
covering a period of at least twelve (12) months beginning after the effective
date of the registration statement and otherwise complying with Section 11(a) of
the Securities Act.

         (j) Cause all Registrable Securities registered pursuant hereto on a
Registration Statement for resale by a Holder to be listed on each securities
exchange or included for trading in such automated quotation system on or in
which the Shares of Common Stock of the Company are then listed or included.

         (k) Provide a transfer agent and registrar for all Registrable
Securities registered pursuant hereto on a Registration Statement for resale by
a Holder, and a CUSIP number for the Shares of Common Stock, in each case not
later than the effective date of such Registration Statement.

         (l) Otherwise use its best efforts in its performance of its
obligations hereunder to comply with all applicable rules and regulations of the
SEC and of state securities commissions and any stock exchange or automated
quotation system.

         (m) Deliver promptly, upon request, to any Holder participating in the
offering copies of all correspondence between the SEC and the Company, its
counsel or independent public accountants and all memoranda relating to
discussions with the SEC or its staff with respect to the registration
statement; permit each Holder, counsel and independent public accountants for
each Holder, to participate in the preparation of such registration statement,
each prospectus included therein or filed with the SEC, and each amendment
thereof or supplement thereto; and give each Holder, and counsel and independent
public accountants for each Holder, access to the Company's books, records,
documents and properties and such opportunities to discuss the business of the
Company with its officers or directors and independent public accountants as
shall be necessary, in the opinion of each Holder and their respective counsel
and independent public accountants, to conduct a reasonable investigation within
the meaning of the Securities Act.

         (n) In the event of an underwritten offering (or a shelf offering in
which the items listed in clauses (i) and (ii) below are delivered to any
other selling stockholder), furnish (at no cost), at the request of any
Holder requesting registration of Registrable Securities pursuant to this
Agreement, to each Holder participating in the offering and to each
underwriter, (i) on the date that such Registrable Securities are delivered
to the underwriters for sale in connection with a registration pursuant to
this Agreement, an opinion, dated such date, of the counsel representing the
Company for the purposes of such registration, in form and substance as is
customarily given to underwriters in an underwritten public offering,
addressed to the underwriters and to the Holders participating in such
offering and (ii) on the date that the registration statement with respect to
such securities

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becomes effective, a "comfort" letter dated such date, from the independent
certified public accountants of the Company, in form and substance as is
customarily given by independent certified public accountants to underwriters
in an underwritten public offering, addressed to the underwriters and to the
Holders participating in such offering, and a reaffirmation of such letter on
the date that such Registrable Securities are delivered to the underwriters
for sale.

         (o) Solely in the event of any underwritten public offering, enter into
and perform its obligations under an underwriting agreement, in usual and
customary form, with the managing underwriter of such offering.

4. HOLDER SHALL FURNISH INFORMATION. It shall be a condition precedent to the
obligations of the Company to take any action pursuant to this Agreement with
respect to the Registrable Securities of any selling Holder that such Holder
shall furnish to the Company such information regarding itself, the Registrable
Securities held by it, and the intended method of disposition of such securities
as shall be required to effect the registration of such Holder's Registrable
Securities.

5. EXPENSES OF REGISTRATION. The Company shall bear and pay all expenses
incurred in connection with any registration, filing or qualification of
Registrable Securities with respect to the registration of Registrable
Securities, including without limitation all registration, filing and
qualification fees, printers' and accounting fees relating or apportionable
thereto, and reasonable fees and expenses of one counsel to the selling
stockholders (selected by the Holders of a majority of the Registrable
Securities being registered), but excluding underwriting discounts and
commissions relating to Registrable Securities.

6. INDEMNIFICATION. In the event any Registrable Securities are included in a
registration statement under this Agreement:

         (a) The Company will indemnify and hold harmless each Holder, its
heirs, personal representatives and assigns, and each of such Holder's
partners, members, stockholders, managers, agents, officers, directors,
employees, affiliates, any underwriter (as defined in the Securities Act) for
such Holder and each Person, if any, who controls such Holder or underwriter
within the meaning of the Securities Act or the Exchange Act against any
losses, claims, damages or liabilities (joint or several) to which any of the
foregoing persons may become subject under the Securities Act, the Exchange
Act or other federal or state law, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon a
Violation; and the Company will pay to each such indemnified party, as
incurred, any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage or
liability; provided, however, that the indemnity agreement contained in this
Section 6(a) shall not apply to amounts paid in settlement of any such loss,
claim, damage or liability if such settlement is effected without the consent
of the Company (which consent shall not be unreasonably withheld or delayed),
nor shall the Company be liable in any such case to a particular indemnified
party for any such loss, claim, damage or liability to the extent that it
arises out of or is based upon a Violation which occurs in reliance upon and
in conformity with written information furnished expressly for use in
connection with such registration by such indemnified party.

         (b) Each selling Holder will indemnify and hold harmless the Company,
each of its directors, each of its officers who has signed the registration
statement, each Person, if any, who controls the Company within the meaning of
the Securities Act, any underwriter, any other Holder selling securities in such
registration statement and any controlling Person of any such underwriter or
other Holder, against any losses, claims, damages or liabilities (joint or
several) to which any of the

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foregoing Persons may become subject under the Securities Act, the Exchange
Act or other federal or state law, insofar as such losses, claims, damages or
liabilities (or actions in respect thereto) arise out of or are based upon
any Violation, in each case to the extent (and only to the extent) that such
Violation occurs in reliance upon and in conformity with written information
furnished by or on behalf of such Holder expressly for use in connection with
such registration; and each such Holder will pay to each such indemnified
party, as incurred, any legal or other expenses reasonably incurred by them,
in connection with investigating or defending any such loss, claim, damage or
liability; PROVIDED, HOWEVER, that the indemnity agreement contained in this
Section 6(b) shall not apply to amounts paid in settlement of any such loss,
claim, damage or liability if such settlement is effected without the consent
of the Holder (which consent shall not be unreasonably withheld or delayed);
and PROVIDED, FURTHER, that, in no event shall the liability of any Holder
under this Section 6(b) exceed the net proceeds from the offering received by
such Holder; and PROVIDED, FURTHER, that the indemnity agreement contained in
this paragraph shall not apply in the case of a sale directly by the Company
of its securities (including a sale of such securities through any lead
institution or underwriter retained by the Company to engage in a
distribution solely on behalf of the Company) in which an untrue statement or
omission or alleged untrue state or omission was contained in a preliminary
prospectus and corrected in a final or amended prospectus, and the Company or
such lead institution or underwriter failed to deliver a copy of the final or
amended prospectus at or prior to the sale of the Registrable Securities.

         (c) Each Holder shall severally, and not jointly, indemnify, defend and
hold harmless the Company and its affiliates, promptly upon demand at any time
and from time to time, against any and all losses, liabilities, claims, actions,
damages and expenses (including, without limitation, reasonable attorneys' fees
and disbursements), arising out of or in connection with any misrepresentation
or breach of any warranty made by such Holder herein.

         (d) Promptly after receipt by an indemnified party under this
Section 6 of written notice of the commencement of any action (including any
governmental action) involving a claim referred to in Section 6(a), 6(b) or
6(c) of this Agreement, such indemnified party will, if a claim in respect
thereof is to be made against any indemnifying party under this Section 6,
deliver to the indemnifying party a written notice of the commencement
thereof and the indemnifying party shall have the right to participate in,
and, to the extent the indemnifying party so desires, jointly with any other
indemnifying party similarly noticed, to assume the defense thereof with
counsel mutually satisfactory to the parties; provided, however, that an
indemnified party shall have the right to retain its own counsel, with the
fees and expenses to be paid by the indemnifying party, if representation of
such indemnified party by the counsel retained by the indemnifying party
would be inappropriate due to actual or potential differing interests between
such indemnified party and any other party represented by such counsel in
such proceeding. The failure to deliver written notice to the indemnifying
party within a reasonable time of the commencement of any such action shall
not relieve such indemnifying party of any liability to the indemnified party
under this Section 6 except if, and only to the extent that, the indemnifying
party is actually prejudiced thereby; and such failure to deliver written
notice to the indemnifying party will not relieve it of any liability that it
may have to any indemnified party otherwise than under this Section 6. The
indemnifying party will not, without the prior written consent of each
indemnified party, settle or compromise or consent to the entry of any
judgment in any pending or threatened claim, action, suit or proceeding in
respect of which indemnification may be sought hereunder (whether or not such
indemnified party or any Person who controls such indemnified party is a
party to such claim, action, suit or proceeding), unless such settlement,
compromise or consent includes an unconditional release of such indemnified
party from all liability arising out of such claim, action suit, or
proceeding and such settlement, compromise or consent involves only the
payment of money and such money is actually paid by the indemnifying party.

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Whether or not the defense of any claim or action is assumed by the
indemnifying party, such indemnifying party will not be subject to any
liability for any settlement made without its consent, which consent will not
be unreasonably withheld or delayed.

         (d) The obligations of the Company and Holders under this Section 6
shall survive the completion of any offering of Registrable Securities in a
registration statement under this Agreement, and otherwise.

         (e) Any indemnity agreements contained herein shall be in addition to
any other rights to indemnification or contribution which any indemnified party
may have pursuant to law or contract and shall remain operative and in full
force and effect regardless of any investigation made or omitted by or on behalf
of any indemnified party.

         (f) With respect to the indemnity in Section 6(a) and 6(b), if for any
reason such indemnity is unavailable, then the indemnifying party shall
contribute to the amount paid or payable by the indemnified party as a result of
such losses, claims, damages, liabilities or expenses (i) in such proportion as
is appropriate to reflect the relative benefits received by the indemnifying
party on the one hand and the indemnified party on the other or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law or
provides a lesser sum to the indemnified party than the amount hereinafter
calculated, in such proportion as is appropriate to reflect not only the
relative benefits received by the indemnifying party on the one hand and the
indemnified party on the other but also the relative fault of the indemnifying
party and the indemnified party as well as any other relevant equitable
considerations. The relative fault shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to
information supplied by or on behalf of the indemnifying party or the
indemnified party and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such untrue statement or
omission. No Person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from
any Person who was not guilty of such fraudulent misrepresentation.
Notwithstanding anything to the contrary in this Section 6, no Holder shall be
required, pursuant to this Section 6, to contribute any amount in excess of the
net proceeds received by such indemnifying party from the sale of Shares of
Common Stock in the offering to which the losses, claims, damages, liabilities
or expenses of the indemnified party relate, nor shall any Holder be required to
contribute any amounts in excess of the amount such Holder would have been
required to pay to an indemnified party if the indemnity under Section 6(b) of
this Agreement were available.

7. REPORTS UNDER THE EXCHANGE ACT. With a view to making available to the
Holders the benefits of Rule 144 under the Securities Act, as such rule may from
time to time be amended, and any other rule or regulation now or hereafter
adopted by the SEC that may at any time permit a Holder to sell securities of
the Company to the public without registration or pursuant to a registration
statement, the Company agrees at its sole cost to:

         (a) make and keep public information available, as those terms are
understood and defined in Rule 144 under the Securities Act, at all times after
the effective date of the first registration statement filed by the Company for
the offering of its securities to the general public;

         (b) take such action as is necessary to enable the Holders to utilize a
registration statement for the resale of their Registrable Securities;

         (c) file with the SEC in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act;
and

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         (d) furnish to any Holder, so long as the Holder owns any Registrable
Securities, forthwith upon request (i) a written statement by the Company that
it has complied with the reporting requirements of Rule 144 under the Securities
Act (at any time after the effective date of the first registration statement
filed by the Company) and the Securities Act and Exchange Act (at any time after
it has become subject to such reporting requirements) or that it qualifies as a
registrant whose securities may be resold pursuant to Form S-3 (at any time it
so qualifies), (ii) a copy of the most recent annual or quarterly report of the
Company and such other reports and documents so filed by the Company and (iii)
such other information as may be reasonably requested in availing any Holder of
any rule or regulation of the SEC which permits the selling of any such
securities without registration or pursuant to such form.

8. ASSIGNMENT OF REGISTRATION RIGHTS. The rights contained herein may be
assigned in whole or in part by a Holder to one or more of its partners,
employees or affiliates or to one or more transferees or assignees of
Registrable Securities (or securities exchangeable into Registrable Securities)
acquired by the Holder, provided that such transferee or assignee delivers to
the Company a written instrument by which such transferee or assignee agrees to
be bound by the obligations imposed on Holders under this Agreement to the same
extent as if such transferee or assignee was a party hereto.

9. RESALE RESTRICTIONS.

         (a) During the period of twelve (12) months from the date of this
Agreement, each Management Holder severally agrees that it will not Dispose of
any Shares (whether registered or unregistered), commencing on any date
specified by the Company (the "Commencement Date") following the filing by the
Company of a preliminary registration statement for a registered public offering
managed by nationally recognized underwriters and ending (x) 30 days after the
Commencement Date if the registration statement is not declared effective by the
SEC on or prior to such 30th day, or (y) if the registration statement is
declared effective by the SEC on, or within thirty days after the Commencement
Date, a period not to exceed 90 days following the effective date of the
registration statement, if required by the underwriters of the public offering
and all directors and executive officers of the Company have been prohibited
from Disposing the Company's common stock held by them for a period of at least
90 days following the effective date of the registration statement and provided
that the restriction set forth in this Section 9(a) shall not apply to any
Disposition of Shares pursuant to the subject registered public offering if such
shares are registered pursuant to Section 2(c) hereof.

         (b) In addition to the restriction in Section 9(a), each Management
Holder agrees not to Dispose of any Shares except in accordance with the
following schedule:

<TABLE>
<CAPTION>

          ------------------------------------------ --------------------------------------------
                                                     Max.  % of  original  number  of  Shares of
          # of Months After the Date Hereof          each  Holder  that may be Disposed of Prior
                                                     to End of Month
          ------------------------------------------ --------------------------------------------
<S>       <C>                                        <C>
          Before 12 months                            33 1/3%
          ------------------------------------------ --------------------------------------------
          At and after 12 months                      66 2/3%
          ------------------------------------------ --------------------------------------------
          After 18 months                            100%
          ------------------------------------------ --------------------------------------------

</TABLE>

         (c) In addition to the restriction in Section 9(a), the Corporate
Holders agree not to Dispose of more than 50,000 Shares in any week and not
to Dispose of more than 150,000 Shares in any four-week period.

                                       9
<PAGE>

10. AMENDMENT; WAIVER. Any provision of this Agreement may be amended only with
the written consent of the Company and each of the Holders and the observance of
any provision of this Agreement may be waived (either generally or in a
particular instance and either retroactively or prospectively) only with the
written consent of the party to be charged, provided that the Holders of 60% of
the Registrable Securities then outstanding may act on behalf of all such
Holders of Registrable Securities; PROVIDED, HOWEVER, that no amendment or
waiver shall affect the rights of a Holder under Section 2 or the obligations of
a Holder under Section 6(c) or Section 9 or the representations or warranties of
a Holder under Section 26 without the consent of such Holder. Any amendment or
waiver effected in accordance with this Section 10 shall be binding upon each
Holder of Registrable Securities at the time outstanding, each future Holder of
all such securities, and the Company.

11. CHANGES IN REGISTRABLE SECURITIES. If, and as often as, there are any
changes in the Registrable Securities, by way of stock split, stock dividend,
combination or reclassification, or through merger, consolidation,
reorganization or recapitalization, or by any other means, appropriate
adjustment shall be made in the provisions of this Agreement, as may be
required, so that the rights and privileges granted hereby shall continue with
respect to the Registrable Securities as so changed. Without limiting the
generality of the foregoing, the Company will require any successor by merger or
consolidation to assume and agree to be bound by the terms of this Agreement, as
a condition to any such merger or consolidation, provided, however, that the
restrictions in Section 9 hereof shall no longer be applicable upon such a
merger or consolidation of the Company.

12. ENTIRE AGREEMENT EFFECTIVENESS OF AGREEMENT. This Agreement (together with
the Merger Agreement) constitutes the full and entire understanding and
agreement among the parties with regard to the subject matter hereof. Nothing in
this Agreement, express or implied, is intended to confer upon any Person, other
than the parties hereto and their respective successors and assigns, any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided herein.

13. GOVERNING LAW. This Agreement shall be governed in all respects by the laws
of the State of New York as such laws are applied to agreements between New York
residents entered into and to be performed entirely within New York, whether or
not all parties hereto are residents of New York.

14. SUCCESSORS AND ASSIGNS. The provisions hereof shall inure to the benefit of,
and be binding upon, the successors, permitted assigns (as provided in Section
8), heirs, executors and administrators of the parties hereto.

15. NOTICES. All notices and other communications provided for herein shall be
dated and in writing and shall be deemed to have been duly given (i) on the date
of delivery, if delivered personally or by telecopier, receipt confirmed; (ii)
on the second following business day, if delivered by a recognized overnight
courier service; or (iii) seven days after mailing, if sent by registered or
certified mail, return receipt requested, postage prepaid, in each case, to the
party to whom it is directed at the following address (or at such other address
as any party hereto shall hereafter specify by notice in writing to the other
parties hereto):

         (i) If to the Company, to it at the following address:

         24/7 Media, Inc.

                                       10
<PAGE>

         1250 Broadway, 28th fl
         New York, NY 10001
         Attn: General Counsel
         Fax: (212) 760-2811

         (ii) If to a Seller, to it at the address for such Seller set forth on
the signature pages hereto.

16. SEVERABILITY. Any invalidity, illegality or limitation on the enforceability
of this Agreement or any part thereof, by any party, whether arising by reason
of the law of the respective party's domicile or otherwise, shall in no way
affect or impair the validity, legality or enforceability of this Agreement with
respect to the other party. If any provision of this Agreement shall be
judicially determined to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

17. TITLES AND SUBTITLES. The titles of the Sections of this Agreement are for
convenience of reference only and are not to be considered in construing this
Agreement.

18. DELAYS OR OMISSIONS; REMEDIES CUMULATIVE. It is agreed that no delay or
omission to exercise any right, power or remedy accruing to the parties, upon
any breach or default of the Company under this Agreement, shall impair any such
right, power or remedy, nor shall it be construed to be a waiver of any such
breach or default, or any acquiescence therein, or of any similar breach or
default thereafter occurring; nor shall any waiver of any single breach or
default be deemed a waiver of any other breach or default theretofore or
thereafter occurring. It is further agreed that any waiver, permit, consent or
approval of any kind or character by a party of any breach or default under this
Agreement, or any waiver by a party of any provisions or conditions of this
Agreement must be in writing and shall be effective only to the extent
specifically set forth in writing and that all remedies, either under this
Agreement, or by law or otherwise afforded to a party, shall be cumulative and
not alternative.

19. ATTORNEYS' FEES. If any action at law or in equity is necessary to enforce
or interpret the terms of this Agreement, the prevailing party shall be entitled
to reasonable attorney's fees, costs and necessary disbursements in addition to
any other relief to which such party may be entitled.

20. COUNTERPARTS. This Agreement may be executed in any number of counterparts,
each of which shall be an original, but all of which together shall constitute
one instrument.

21. FURTHER ASSURANCES. Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all
such other agreements, certificates, instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

22. REMEDIES. In the event of a breach by any party to this Agreement of its
obligations under this Agreement, any party injured by such breach, in addition
to being entitled to exercise all rights granted by law, including recovery of
damages and costs (including reasonable attorneys' fees), will be entitled to
specific performance of its rights under this Agreement. The parties agree that
the provisions of this Agreement shall be specifically enforceable without the
posting of a bond or other security and without proof of actual damages, it
being agreed by the parties that the remedy at law, including monetary damages,
for breach of any such provision will be inadequate compensation for

                                       11
<PAGE>

any loss and that any defense in any action for specific performance that a
remedy at law would be adequate is waived.

23. RECAPITALIZATIONS, EXCHANGES, ETC. The provisions of this Agreement shall
apply, to the full extent set forth herein, to any and all shares of the Company
capital stock or any successor or assign of the Company (whether by merger,
consolidation, sale of assets, or otherwise, including shares issued by a parent
corporation in connection with a triangular merger) which may be issued in
respect of, in exchange for or in substitution of, shares of Common Stock, and
shall be appropriately adjusted for any stock dividends, splits, reverse splits,
combinations, reclassifications and the like occurring after the date hereof.

24. NO INCONSISTENT AGREEMENTS. The Company will not on or after the date of
this Agreement enter into any (i) agreement with respect to its securities which
is inconsistent with the rights granted to the Holders of Registrable Securities
in this Agreement or which otherwise conflicts with the provisions hereof or
(ii) agreement with respect to the registration and right to resell its
securities which is superior to the terms of this Agreement. It is acknowledged
and understood that the Company has granted demand registration rights and
piggyback registration rights to holders of a substantial number of shares of
Common Stock, pursuant to a registration rights agreement dated April 9, 1998
(the "April 9 Agreement") which has been publicly filed with the SEC, that the
Company is actively discussing other acquisitions and that in connection with
the Registration Statement to be filed pursuant to Section 2(a) hereof, the
Company may register the resale of its securities by a substantial number of
holders other than the Sellers.

25. EXPENSES AND TAXES. The Company will pay, and save each Holder harmless from
any and all liabilities (including interest and penalties) with respect to, or
resulting from, any delay or failure in paying, stamp and other taxes (other
than income taxes), if any, which may be payable or determined to be payable
upon the execution and delivery of this Agreement.

26. REPRESENTATIONS AND WARRANTIES OF HOLDERS. Each of the Holders severally,
and not jointly, represents and warrants to the Company as follows:

                  1.       LEGENDS.

                           (i) Such Holder understands that the certificates
evidencing the Shares will bear the following legend:

                           "THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
                  "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND NEITHER
                  SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE TRANSFERRED IN
                  THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM
                  UNDER THE SECURITIES ACT OR SUCH LAWS AND THE RULES AND
                  REGULATIONS THEREUNDER."

                           (ii) The certificates evidencing the Shares shall not
be required to bear such legend if an opinion of counsel reasonably satisfactory
to the Company is delivered to the Company to the effect that neither the legend
nor the restrictions on transfer contained in this Agreement or the Merger
Agreement are required to insure compliance with the Securities Act. The Company
will bear the reasonable costs and expenses in connection with such opinion
where such opinion relates to compliance with Rule 144 under the Securities Act.
Whenever, pursuant to the

                                       12
<PAGE>

preceding sentence, any certificate is no longer required to bear the
foregoing legend, the Company may, and if requested by the Holder thereof,
shall, issue to the Holder, at the Company's expense, a new certificate not
bearing the foregoing legend; provided, however, a new certificate not
bearing the foregoing legend shall be issued to the Holders upon the
effectiveness of a registration statement covering the resale of the Shares.

                                  [END OF TEXT]

                                       13
<PAGE>

                [SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
the date and year first above written.

24/7 MEDIA, INC.

By:      /s/ DAVID E. MOORE
   -----------------------------------
       Name: David E. Moore
       Title: President and Chief Executive Officer

HOLDERS:

MEMBERWORKS INCORPORATED                  NATIONAL DISCOUNT BROKERS GROUP, INC.

                                          By:  Frank E. Lawatsch, Jr.
By:  /s/ James B. Duffy                      ----------------------------------
   --------------------------------           Name: Frank E. Lawatsch, Jr.
    Name: James B. Duffy                      Title: EVP
    Title: EVP and CPO

     /s/ Brian Anderson                        /s/ Jeffrey Newhouse
   --------------------------------          ----------------------------------
   Brian Anderson                            Jeffrey Newhouse

     /s/ John Watson                           /s/ Gregory Hassett
   --------------------------------          ----------------------------------
   John Watson                               Gregory Hassett

     /s/ Randy Moore                           /s/ Jack Daley
   --------------------------------          ----------------------------------
   Randy Moore                               Jack Daley
<PAGE>

EXHIBIT A    Management Holders

James Green
FRESHWATER CONSULTING LTD.
GALMOS HOLDINGS LTD.

                                       15
<PAGE>

EXHIBIT B - Non-Management Holders

TOCAD SUNPAK (Hong Kong) Ltd. (Tocad)
Ramport Trading Ltd. (original shares)
SABELA MEDIA KAI. (Tocad)
Steve Blume
Nicole Blume (Irrevocable Trust)
Jenna Blume (Irrevocable Trust)
Andrew Blume (Irrevocable Trust)
TOCAD Co., Ltd.
Livewire Labs LLC
Distribution Finance, Ltd.
Quinag Consulting Ltd (Bruce Edminston)
International Electronics Co., Ltd. (Tocad)
Erland & Company
Ramport Trading Ltd. (2nd)
Inanda Associates Pty Limited
Takeshi Fujikawa (Tocad)
Masaru Fujikawa (Tocad)
David Spence
Golden Words Pty Limited
TOCAD Co., Ltd. (Bridge)
Wilcrow Pty Ltd
Taro Fujikawa (Tocad)
TOCAD NETWORKS Co., Ltd.
Arton No. 0001 Pty Ltd
Richard d'Abo

                                       16
<PAGE>

EXHIBIT C -- Other Holders

Abhay Puri
Chafey Ltd (Hoo Lam Woon)
Harry Weber-Brown
Simon Johnson
Matthew Tombers
Birathon Kasemsri
Andrew Fawcett
Birathon Kasemsri (new)
Quinag Consulting Ltd (Bruce Edminston)

                                       17EMPLOYMENT AGREEMENT
                              --------------------

     THIS  EMPLOYMENT  AGREEMENT,  is made as of June 23,  1999,  by and between
COLONIAL DOWNS HOLDINGS,  INC., a Virginia corporation (the "Company"),  and IAN
M. STEWART ("Executive") and recites and provides as follows:

     WHEREAS, the Company is engaged in the business of seeking opportunities or
horse racing and  pari-mutuel  wagering in Virginia,  and its  subsidiaries  are
currently the holders of the only unlimited  licenses to own and operate a horse
racetrack  with  pari-mutuel  wagering in Virginia  (the  "Track")  and the only
entities  authorized to apply for licenses to own and operate satellite wagering
facilities ("SWF") in Virginia;

     WHEREAS, the Company desires to employ Executive as President and Chief
Financial Officer of the Company; and

     WHEREAS, Executive desires to be so employed by Company on the terms and
conditions hereinafter set forth;

     WHEREAS,  through his  relationship  with the Company,  the Executive  will
become  acquainted  with  certain  confidential  or  proprietary  aspects of the
Company's business,  including without limitation,  operating methods, marketing
strategy, sponsorship and advertising agreements, design and layout of the Track
facilities,  potential  new  business  opportunities,  and  potential  sites for
additional  SWFs,  and  other  confidential  and  proprietary  information  that
constitute  valuable  assets of the  Company  and which the  Company  desires to
protect.

     NOW,  THEREFORE,  for and in  consideration  of the  mutual  covenants  and
agreements  herein  contained  and other good and  valuable  consideration,  the
receipt and  sufficiency  of which are hereby  acknowledged,  the parties hereto
agree as follows:

     1.     EMPLOYMENT.  The Company hereby employs the Executive, and the
            ----------
Executive  hereby  accepts  employment  with the Company as President  and Chief
Financial Officer.

     2.     DUTIES OF THE EXECUTIVE.  As the President and Chief Financial
            -----------------------
Officer of the Company,  the Executive  shall  faithfully  serve the Company and
shall at all times devote his full time, best efforts,  skills,  attention,  and
energies to the  development,  organization,  management,  and  expansion of the
Company's  business to the utmost of the Executive's  ability,  and shall do and
perform  all  such  services,  acts,  and  things  connected  therewith  as  are
reasonably  required  and as the  Company  shall from time to time  direct.  The
Executive  shall not become  engaged or  involved in any  activities  or matters
which may adversely affect or reflect  discredit on the Company or its business,
or conflict with his services to the Company.  This Agreement shall not prohibit
the Executive from  investing  personal  assets in other  businesses or entities
that do not  compete  with  the  Company  (as  described  in  Section  9 of this
Agreement).

<PAGE>   2

     3.     TERM.  Subject to the provisions of Section 8 regarding
            ----
termination,  this Agreement  shall remain in effect for a term of two (2) years
beginning  on the date  hereof.  This  Agreement  may be renewed and extended on
terms and conditions mutually agreeable to the parties hereto.

     4.     COMPENSATION.  For all services rendered by the Executive pursuant
            ------------
to this Agreement, the Company shall pay the Executive a base salary of $150,000
per annum, payable in equal semi-monthly installments, or at such other times as
may be mutually agreed upon by the parties.

     5.     DEDUCTIONS.  The Company is authorized to deduct from the actual
            ----------
compensation  of the  Executive  such sums as may be  required to be deducted or
withheld under the provisions of any federal,  state, or local law or regulation
now in effect or hereafter  put into effect  during the term of this  Agreement,
including  without  limitation,  social  security,   unemployment,   and  income
withholding taxes.

     6.     BENEFITS.
            --------
            (a) The Executive  shall be entitled to a paid vacation each year of
three (3)  weeks,  the  timing of which  shall be  subject  to mutual  agreement
between the Company  and the  Executive.  The  Executive's  attendance  at trade
shows, training,  educational,  and professional programs and meetings shall not
be charged against Executive's  vacation allowance.  The Executive shall also be
entitled to paid sick leave of five (5) days each year.
            (b) The Executive shall be entitled to the use of an automobile, the
make  and  model of  which  shall  be  mutually  agreeable  to the  Company  and
Executive, leased by the Company at its expense.
            (c) The Company  shall  reimburse  the  Executive  for all  expenses
reasonably  and  necessarily  incurred by him in the  performance  of his duties
hereunder. To be reimbursed,  the Executive must submit written evidence of such
expenses to the Company within thirty (30) days after incurring such expense.
            (d) The Executive shall receive such other benefits,  if any, as the
Company generally provides to all other Executives involved in the operations of
the  Company,  whether  now in  effect or  hereafter  adopted,  including  group
hospital  and  accidental  insurance  benefits  and group  disability  insurance
coverage.

     7.     STOCK OPTIONS.  Subject to approval by the Board of Directors, the
            -------------
Company  shall  grant  Executive  an option for 10,000  shares of Class A Common
Stock of the Company at an exercise price equal to the reported closing price of
the stock on the  NASDAQ  Small Cap  Market  as of the date  this  Agreement  is
executed by all  parties.  Such  option  shall vest pro rata on each of June 23,
2000 and June 23, 2001,  subject to the terms of the Company's 1997 Stock Option
Plan.

<PAGE>   3

     8.     TERMINATION OF EMPLOYMENT.
            -------------------------
            (a) Upon  the  occurrence  of any of the  following  events  and the
expiration of any required notice, this Agreement and the Executive's employment
hereunder automatically shall terminate:
                 (1)  The death or bankruptcy of the Executive;
                 (2)  The Board of Director's termination of the Executive's
                      employment at any time, "for cause" or not "for cause" (as
                      defined   below).   This  Agreement  and  the  Executive's
                      employment  hereunder  shall terminate upon the expiration
                      of a period of  thirty  (30) days  after  delivery  by the
                      Company  of  written   notice  to  the  Executive  of  his
                      termination.   The  phrase  "for  cause"   shall   include
                      termination   because   of   the   Executive's    personal
                      dishonesty,  incompetence,  willful misconduct, censure or
                      reprimand by any regulatory  body  (including the Virginia
                      Racing  Commission),  breach of fiduciary  duty  involving
                      personal  profit,  intentional  failure to perform  stated
                      duties,  willful violation of any law, rule, or regulation
                      (other  than  traffic  violations  or  similar  offenses),
                      failure  to  perform   assigned  duties  in  a  reasonably
                      satisfactory  manner,  or material breach of any provision
                      of this Agreement;
                 (3)  The  expiration  of a period  of thirty  (30)  days  after
                      delivery by the Executive of written notice to the Company
                      of his resignation as an Executive of the Company; or
                 (4)  The disability of the Executive. "Disability" shall mean a
                      physical   or  mental   disability   that   prevents   the
                      substantial  performance  by the  Executive  of his duties
                      hereunder  lasting  for a  continuous  period  of six  (6)
                      months or longer.  The reasoned and good faith judgment of
                      the  Company's  Board of Directors  as to the  Executive's
                      disability  shall  be  final  and  shall  be based on such
                      competent  medical  evidence as shall be  presented to the
                      Company's  Board of Directors  by the  Executive or by any
                      physician  or  group  of  physicians  or  other  competent
                      medical experts on behalf of the Executive  engaged by the
                      Company.
            (b) In the event the Executive voluntarily terminates his employment
or has his employment  terminated "for cause" under this Agreement,  he shall be
entitled to receive  from the Company  only the base salary and  benefits as set
forth herein that have accrued to the date of termination in full  settlement of
all of the Company's obligations hereunder.
            (c) In the event the Company  terminates the employment of Executive
by reason of his disability, the Executive shall be entitled to receive from the
Company  only the base salary and benefits set forth herein that have accrued to
the date of  disability in full  settlement of all of the Company's  obligations
hereunder.
            (d) In the  event  the  Company  terminates  the  employment  of the
Executive  not "for cause",  the  Executive  shall be entitled to six (6) months
base salary as set forth  herein and the  benefits as set forth herein that have
accrued to the date of  termination  in full  settlement of all of the Company's
obligations hereunder.

<PAGE>   4

     9.     FIDUCIARY RELATIONSHIP.
            ----------------------
            (a)  The Executive as a Fiduciary.  It is understood and agreed
                 ----------------------------
that the  Executive  will serve in a fiduciary  capacity to the Company  and, as
such,  will  comply  with the  standards  applicable  to  fiduciaries  and other
Executives of the Company.
            (b)  Confidential Information and Trade Secrets.  All information
                 ------------------------------------------
relating to or used in the business and  operations  of the Company  (including,
but not  limited  to,  marketing  plans,  business  procedures,  trade  secrets,
patents,  sources  of  supplies  and  materials,   reports,   memoranda,  plans,
documents, and the like), whether conceived, prepared, originated,  developed or
compiled by the  Executive or by the Company prior to or during the term of this
Agreement  and  the  employment  of  the  Executive  (hereinafter  "Confidential
Information and Trade Secrets"),  are and shall be confidential  information and
trade  secrets which are the  exclusive  property of the Company,  provided such
information is not generally known in the horse racing industry.
            (c)  Property of the Company.  All Confidential Information and
                 -----------------------
Trade Secrets as defined in Section 8(b) are and shall be the exclusive property
of the Company.
            (d)  Nondisclosure of Confidential Information and Trade Secrets.
                 -----------------------------------------------------------
Except in the regular  course of his  employment by the Company  hereunder or as
the Company may expressly  authorize or direct in writing,  the Executive  shall
not,  during or after the  termination  or expiration of this  Agreement,  copy,
reproduce,  disclose  or  divulge  to  others,  use or permit  others to use any
Confidential Information and Trade Secrets, or any records or materials relating
to any such  Confidential  Information or Trade Secrets.  The Executive  further
covenants and agrees that during the term of this  Agreement he shall not remove
from the custody and control of the Company any records of or materials relating
to such Confidential Information and Trade Secrets and that upon the termination
or expiration of his employment he shall deliver the same to the Company.

     10.    COVENANT NOT TO COMPETE; NON-SOLICITATION.
            -----------------------------------------
            (a) In  consideration  of the fees  and  benefits  that he  receives
pursuant to this  Agreement,  during the term of this  Agreement and for one (1)
year  thereafter,  the Executive  hereby  covenants and agrees that he will not,
without the prior written consent of the Company, either alone or in partnership
with or in conjunction with any other person,  firm, or corporation,  whether as
principal,  agent, or shareholder (other than an entity in which Executive holds
less  than a  five  percent  (5%)  equity  interest),  directly  or  indirectly,
participate,  carry on, conduct, or be engaged in, or advise, any person,  firm,
corporation,  or other legal entity  carrying on or engaging in the horse racing
business in Virginia,  Maryland,  West Virginia or North  Carolina that competes
with the business conducted by the Company on the date hereof.
            (b) In addition,  for one (1) year after the Executive  ceases to be
employed  by the  Company,  the  Executive  shall not seek to induce  any of the
Company's employees to leave the Company' employment to work for any entity with
which he is affiliated. In addition, during such one (1) year period, the

<PAGE>   5

Executive  shall not solicit any sponsors or  advertisers of the Company for the
purpose of inducing,  directly or indirectly, the termination of any sponsorship
or advertising agreements.
            (c) The Executive  recognizes that the Company's remedies at law may
be  inadequate  to  protect  itself  against  a breach  of this  provision,  and
therefore  agrees  that  injunctive  or  other  equitable  relief  shall  be  an
appropriate  remedy for breach of this  covenant not to compete,  and shall be a
remedy in addition to any and all other remedies available to the Company.
            (d) The parties agree that if the restrictions of this Section 9 are
determined by any court of competent  jurisdiction,  at the time of enforcement,
to be unreasonable as to the duration,  scope or area of restriction,  then such
restrictions  should be applied only to such  activities  and territory and only
for such period of time as the court determines to be reasonable in light of all
circumstances then existing.

     11.    REMEDIES.  The Executive hereby represents that the services to be
            --------
performed by the Executive  under the terms of this  Agreement are of a special,
unique, extraordinary, and intellectual character, which gives them a particular
value,  the breach of which cannot be reasonably or  adequately  compensated  in
damages in an action at law. The  Executive  expressly  acknowledges  and agrees
that the Company shall be entitled to obtain, in addition to any other rights or
remedies  the Company  may  possess,  injunctive  or other  equitable  relief to
prevent a prospective or continuing breach of any provision of this Agreement by
the Executive.

     12.    NOTICES.  All notices or other communications required or
            -------
permitted  by and among the  parties  shall be in writing and shall be deemed to
have been given, delivered or made when delivered by hand or mailed by certified
or registered mail,  postage prepaid,  return receipt  requested,  and addressed
either as follows or in such other manner as a party may subsequently  designate
to the other party in writing:

            If to the Company, at:
            ---------------------
            Colonial Downs Holdings, Inc.
            10515 Colonial Downs Parkway
            New Kent, Virginia  23124

            If to the Executive, at:
            -----------------------
            The  Executive's  address as shown on the  personnel  records of the
Company.

     13.    SEVERABILITY.  In the event any one or more of the provisions
            ------------
contained in this Agreement  shall for any reason be held invalid,  illegal,  or
unenforceable in any respect, such invalidity,  illegality,  or unenforceability
shall not  affect  any  other  provision  hereof,  and this  Agreement  shall be
construed as if such invalid, illegal, or unenforceable provision had never been
contained herein.

<PAGE>   6

     14.    ENTIRE AGREEMENT.  This Agreement supersedes any other agreement,
            ----------------
whether  written  or oral,  that  may  have  been  made or  entered  into by the
Executive  and the Company  relating to the matters  contemplated  hereby.  This
Agreement   constitutes   the  entire   agreement   concerning  the  transaction
contemplated  herein and there are no agreements or  commitments  in relation to
the subject matter hereof except as set forth herein.

     15.    AMENDMENTS.  This Agreement may be amended or supplemented at any
            ----------
time only in writing as agreed by the parties.

     16.    APPLICABLE LAW.  This Agreement and the legal relations among the
            --------------
parties  hereto  shall be  governed  by and  construed  in  accordance  with the
substantive  laws of the  Commonwealth  of Virginia,  without  giving  effect to
conflict of law provisions and principles thereof.

     17.    INTERPRETATION.  When the context in which words are used in this
            --------------
Agreement indicates that such is the intent,  words in the singular number shall
include the plural,  and vice versa,  and words in the  masculine  gender  shall
include the feminine and neuter genders, and vice versa.

     18.    TITLES AND HEADINGS.  Titles and headings to sections and
            -------------------
paragraphs  herein are inserted for  convenience of reference  only, and are not
intended  to be a part of or to affect  the  meaning or  interpretation  of this
Agreement.

     19.    BINDING EFFECT.  This Agreement shall be binding upon and
            --------------
enforceable against the Company and its successors and assigns.

     20.    NO ATTACHMENT.  Except as required by law, no right to receive
            -------------
payments  under this  Agreement  shall be subject to  anticipation,  alienation,
sale,  assignment,   encumbrance,   charge,  pledge,  or  hypothecation,  or  to
execution,  attachment,  levy or similar  process or  assignment by operation of
law, and any attempt,  voluntary or  involuntary to affect any such action shall
be null, void and of no effect.

     21.    SURVIVAL OF CERTAIN PROVISIONS.  The obligations of the parties
            ------------------------------
pursuant  to  Sections  9,  10,  and 22 of  this  Agreement  shall  survive  the
termination of this Agreement.

     22.    CONSENT TO SERVICE AND JURISDICTION.  Executive consents and
            -----------------------------------
agrees that the Circuit  Court of the City of Richmond,  Virginia and the United
States District Court for the Eastern District of Virginia,  or at the option of
the Company, any other court located in the Commonwealth of Virginia in which it
shall  initiate  legal or  equitable  proceedings  and which shall have  subject
matter  jurisdiction  over the  matter  in  controversy,  shall  have  exclusive
jurisdiction  to hear and determine  any claims or disputes  between the Company
<PAGE> 7

and the Executive  pertaining directly or indirectly to this Agreement or to any
matter  arising  therefrom.  The  Executive  expressly  submits and  consents in
advance to such  jurisdiction in any action or proceeding  commenced in any such
court, hereby waiving personal service or process or other papers issued therein
and  agreeing  that  service  of such  process  or other  papers  may be made by
registered or certified mail to the Executive.

     23.    ACKNOWLEDGMENTS.  Executive acknowledges that he has read this
            ---------------
Agreement in its entirety and  understands  each of the provisions  contained in
this Agreement. Executive acknowledges that the provisions of this Agreement are
reasonable and represents that he will be able to engage in other activities for
the purpose of earning a livelihood  should the  provisions  of the Agreement be
enforced.

     IN WITNESS  WHEREOF the parties  hereto have executed this Agreement on the
date first above written.

     COMPANY:                       COLONIAL DOWNS HOLDINGS, INC.,
     -------
                                    a Virginia corporation

                                    By:      /s/ Jeffrey P. Jacobs
                                          ----------------------------
                                          Jeffrey P. Jacobs, CEO

     EXECUTIVE:                              /s/ Ian M. Stewart
     ---------                            ----------------------------
                                          Ian M. Stewart

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