EMPLOYMENT AGREEMENT





            THIS AGREEMENT (the "Agreement"), made in New York, New York as

of September 27, 2005, between Greg Manning Auctions, Inc., a Delaware

corporation (the "Company"), and Jose Miguel Herrero ("Executive").



            WHEREAS, the Company desires to employ Executive as its President

and Chief Executive Officer, and Executive desires to accept such employment

on the terms and conditions hereinafter set forth;



            NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and

agreements hereinafter set forth, the Company and Executive agree as follows:



            1. Term.



                  Unless earlier terminated in accordance with Section 4

hereof, the term of this Agreement shall be the period commencing as of the

date hereof and ending on June 30, 2008 (the "Term").



            2. Employment.



               (a) Employment by the Company; Director. Executive agrees to be

employed by the Company during the Term upon the terms and subject to the

conditions set forth in this Agreement. Executive shall serve as the President

and Chief Executive Officer of the Company and shall report to the Board of

Directors of the Company (the "Board of Directors"). Executive agrees to serve

as a member of the Board of Directors, without additional remuneration (except

as set forth in Section 3(n), if appointed or elected to such position.



               (b) Performance of Duties. Throughout the Term, Executive shall

faithfully and diligently perform Executive's duties in conformity with the

directions of the Company and serve the Company to the best of Executive's

ability. Executive shall devote his full business time and best efforts to the

business and affairs of the Company. In his capacity as the President and Chief

Executive Officer of the Company, Executive shall have such duties and

responsibilities as are customary for Executive's position and any other duties

or responsibilities he may be assigned by the Board of Directors.



               (c) Place of Performance. Executive shall be based at the

Company's offices in New York, New York. Executive recognizes that his duties

will require, at the Company's expense, travel to domestic and international

locations.



               (d) Position of Chairman of the Board of Directors.



                   (i) In the event the position of Chairman of the Board of

Directors becomes available during the Term, the Board of Directors may, in its

sole discretion,



<PAGE>



appoint Executive to such role. If Executive is appointed to such role, he shall

(A) continue to also serve as the Company's President and Chief Executive

Officer at the Company's offices in New York, New York, and (B) continue to

receive the compensation and benefits provided for under Section 3 of this

Agreement, except to the extent the terms of this Agreement are amended by the

parties.



                   (ii) In the event the position of Chairman of the Board of

Directors is offered to Executive during or at the end of the Term, the parties

shall negotiate in good faith to determine an appropriate compensation package

based on, among other things, the responsibilities, scope and expected time

commitment of the position at such time.



                   (iii) In the event Executive is Chairman of the Board of

Directors following the end of the Term, (A) Executive may perform the duties of

such position either in New York, New York, or Madrid, Spain, and (B) such

position may be either full-time or part-time (each of (A) and (B), at

Executive's option).



            3. Compensation and Benefits.



               (a) Base Salary. The Company agrees to pay to Executive a base

salary ("Base Salary") at the annual rate of $500,000 commencing as of July 1,

2005 and continuing through June 30, 2006. On each of July 1, 2006 and July 1,

2007, Executive's Base Salary shall be increased by an amount equal to the Base

Salary in effect on June 30 of the applicable year multiplied by the percentage

increase, if any, in the CPI as of June 30 for the fiscal year then ended as

compared to the CPI as of June 30 for the fiscal year prior to the year then

ended. For purposes of this Section 3(a), "CPI" means the "Consumer Price Index:

New York, New York, All Items - Urban Wage Earners and Clerical Workers,"

published by the United States Bureau of Labor Statistics of the United States

Department of Labor. Payments of the Base Salary shall be payable in equal

installments in accordance with the Company's standard payroll practices,

provided that the Base Salary payments for the period between July 1, 2005 and

the date hereof shall be included in the Base Salary payments for the initial

payroll period of the Term.



               (b) Signing Bonus. Subject to the following sentence of this

Section 3(b), the Company shall pay a signing bonus of $690,000, payable in

three installments as follows: (i) $200,000 shall be paid within ten days after

the parties' execution of this Agreement, (ii) $245,000 shall be paid on June

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