<PAGE>

                              EMPLOYMENT AGREEMENT

         EMPLOYMENT AGREEMENT entered into as of September 1, 1999 by and
between A.B. WATLEY GROUP INC., FORMERLY KNOWN AS INTERNET FINANCIAL SERVICES
INC., a Delaware corporation, with principal offices at 40 Wall Street, New
York, New York 10005 ("Employer") and PETER WIGGER, with an address at
245-10 Grand Central Parkway, Bellrose, NY 11426 ("Employee").

A.       Employer, directly and through its subsidiaries, is engaged in the
         business of providing electronic brokerage services and electronic
         trading programs for use by professional and other retail customers
         including allowing such customers to trade through their own home or
         office computers, development of computer software and systems for
         implementing the foregoing, operating a block trading desk for
         institutional and other large accounts, disseminating financial and
         trading information and services incident thereto ("Employer's
         Business"); and

B.       Employer wants to employ Employee, and Employee desires to accept such
         employment, on the terms and conditions set forth in this Agreement, to
         perform certain accounting and/or financial functions for Employer.

         In consideration of the facts mentioned above, and of the covenants and
         conditions set out below, the parties agree as follows:

1.       Employment

         (a) During the Term of Employment as defined in Section 2, Employer
         agrees to employ Employee as Executive Vice President - Operations. In
         the event that Employer deems it feasible, it may conduct Employer's
         back office operations in a separate corporate entity, in which case
         (i) Employee shall become President of such entity; and (ii) the
         benefits of this Agreement may be assigned to such entity provided that
         A.B. Watley Group Inc. remains liable as guarantor of Employer's duties
         and obligations under this Agreement. The duties of Employee shall be
         to increase the scope of Employer's back office operations and
         functions, interact with clearing firms and review and potentially
         implement, subject to the decision and discretion of Employer's
         Chairman, President and/or board of directors, any decision respecting
         clearing or self-clearing potential. Employee agrees to act in the
         foregoing capacity, in accordance with the terms and conditions
         contained in this Agreement.

         (b) Employee shall devote substantially all of Employee's working time
         to Employer's Business as conducted from time to time. Employee shall
         render services, without additional compensation, in connection with
         the operation of Employer's Business, including activities of
         affiliates and subsidiaries of the Employer as may exist from time to
         time. As used in this Agreement, the term "affiliate" shall mean any
         entity or person that, directly or indirectly, is controlled or under
         common control with Employer.


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2.       Term

         (a) The initial term of Employee's employment under this Agreement
         shall commence on September 1, 1999 and end on September 30, 2002 (the
         "Initial Term"). Thereafter, this Agreement shall be automatically
         renewed and extended for consecutive one year renewal terms, unless
         either party sends to the other party a notice of non-renewal at least
         ninety (90) days prior to the expiration of the Initial Term or any
         renewal term (the "Renewal Term"). The Initial Term and Renewal Term
         are subject to earlier termination as set forth in subsection (b) below
         and in Section 5. The actual term of employment is defined as "Term of
         Employment."

         (b) Notwithstanding, anything to the contrary set forth in this
         Agreement:

                  (i) Employer shall have the right to terminate this Agreement
                  and Employee's employment hereunder effective on or after
                  February 1, 2000 if Employer is not fully self-clearing on or
                  prior to such date. While the parties have a present intent to
                  become self-clearing in an effort to achieve increased
                  profitability, the final decision shall be in the sole
                  discretion of Employer's board of directors, giving such
                  weight as the board may deem appropriate to the views of
                  Employee and other members of Employer's management. However,
                  this right of termination shall exist even if Employer
                  determines not to attempt to become a self-clearing firm. Such
                  right of termination may be exercised by Employer's giving ten
                  days prior written notice to Employee (so long as Employer is
                  not then fully self-clearing), following which this Agreement
                  shall terminate and all of Employee's rights hereunder shall
                  cease.

                  (ii) In the event that Employer is not fully self-clearing but
                  Employer's Board of Directors has both (A) made the final
                  decision to attempt to become self-clearing and (B) following
                  a change in constitution of the majority of Employer's Board
                  of Directors which is incident to a sale of at least 20% of
                  Employer's shares, the sale of a major portion of Employer's
                  assets or a corporate transaction with another entity,
                  Employer has decided to cease attempting to become
                  self-clearing, then Employer shall have the right to terminate
                  this Agreement and Employee's employment hereunder effective
                  at any time prior to October 1, 2000.

                  In the event of termination of this Agreement by Employer
pursuant to this Section 2(b) hereof, then:

                  (I)      Annual base compensation shall be paid to Employee to
                           date of termination;

                  (II)     The bonus payment under Section 3(b) shall be pro
                           rated for the number of months (or part thereof) that
                           the Agreement has been in existence; and



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                  (III)    Employee's uninvested stock options shall terminate
                           except to the extent of (I) options to acquire 13,900
                           of the 50,000 shares scheduled to vest on October 1,
                           2000 if such termination of employment pursuant to
                           section 2(b) occurs on or prior to February 1, 2000
                           and (II) options to acquire 41,700 of the 50,000
                           shares scheduled to vest on October 1, 2000 if such
                           termination of employment pursuant to section 2(b)
                           occurs after February 1, 2000. In the event of such
                           termination, Employee shall have the right to
                           exercise options to acquire such 13,900 shares or
                           41,700 shares, as the case may be for a period of
                           sixty days following date of termination of
                           employment (despite the fact that such exercise
                           occurs prior to October 1, 2000); notwithstanding the
                           foregoing, in the event that Employee delivers a
                           customary New York form of general release to
                           Employer within ten (10) business days of termination
                           of employment pursuant hereto, Employee's right to
                           exercise such options to acquire 13,900 shares or
                           41,700 shares, as the case may be, shall be extended
                           from sixty (60) days following termination of
                           employment to one (1) year following termination of
                           employment.

                  (IV)     In addition, so long as Employee covenants and agrees
                           in writing that he shall not compete with Employer's
                           Business through the close of business on October 1,
                           2000, and abides by such covenant and agreement,
                           Employee shall be entitled to payment of his annual
                           base compensation under Section 3(a) and bonus
                           payment under Section 3(b) calculated on a pro rata
                           basis through October 1, 2000.

3.       Compensation

         (a) Employer shall pay Employee as a base salary the aggregate sum of
         $175,000 for the thirteen month period from September 1, 1999 through
         September 30, 2000 and shall thereafter pay Employee an annual base
         salary of $175,000 per annum for each twelve month period thereafter.
         All such payments shall be made in equal monthly installments, in
         arrears, or such other installments as may be consistent with the
         payroll practices of Employer for its employees. After the Initial
         Term, the amount of Employee's annual base salary shall be subject to
         annual review by the Board of Directors of Employer; provided, however,
         that in no event shall such base salary be less than $175,000 per
         annum.

         (b) Employee shall also receive a minimum bonus of $50,000 for the
         thirteen month period of the Term of Employment and a minimum bonus of
         $50,000 for each twelve month period thereafter, with such bonus
         payable within thirty days following the expiration of each such period
         or within ten business days of termination of employment, if sooner.


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         (c) Employer's Compensation Committee shall review Employee's
         performance on at least an annual basis to determine Employee's
         eligibility for increases in base salary or bonus payments, as the case
         may be.

4.       Additional Employee Benefits

         (a)      (i) Employee shall, on September 20, 1999 and priced at the
                  closing price at that date, receive a grant of options under
                  Employer's 1998 Restated and Amended Stock Option Plan (the
                  "Plan") covering 150,000 shares of Employer's common stock at
                  an exercise price equal to the fair market value thereof under
                  said Plan as determined in good faith by Employer's board of
                  directors. The right to exercise such option shall vest, on a
                  cumulative basis, to the extent of 50,000 shares on October 1,
                  2000; an additional 50,000 shares on October 1, 2001; and the
                  balance of 50,000 shares on October 1, 2002. The terms of such
                  option grant shall be in accordance with the Plan and the
                  grant letter to be issued to Employee thereunder.
                  Notwithstanding the foregoing, in the event that for any
                  reason, Watley is not fully self-clearing while this Agreement
                  is in effect, or if Watley is self-clearing and the net
                  clearing cost to Watley of its ticket charges over any
                  consecutive six month period is not equal to or less than
                  $3.50 per ticket, then options to purchase 25,000 of the
                  shares under the Plan shall not be exercisable by Employee,
                  notwithstanding anything to the contrary contained in this
                  Agreement. Such 25,000 options shall be comprised of options
                  vesting October 1, 2000 to acquire 8,300 shares, options
                  vesting October 1, 2001 to acquire 8,300 shares, and options
                  vesting October 1, 2002 to acquire 8,400 shares, respectively.
                  For purposes hereof, net ticket charges shall be finally
                  calculated in good faith by Employer's senior management and
                  shall be comprised of all of the gross amounts and costs of
                  clearing including service bureau charges, fees, labor, error
                  account charges and employee costs but without taking into
                  account revenues or costs relating to margin or available
                  funds in a client's account, including, without limitation,
                  Loanet, NSCC Stock Loan Expense, DTC - Stock Pledges, banking
                  line items, interest and bank loan expense.

                  (ii) In the event that the net clearing cost to Watley of its
                  ticket charges over any consecutive six month period during
                  the term of this Agreement shall be equal to or less than
                  $3.00 per ticket, then Employee shall be granted, on and as of
                  the expiration of such six month period, options under the
                  Plan covering an additional 25,000 shares of Employer's common
                  stock, which options shall immediately be vested. The exercise
                  price thereof shall be the fair market value of such common
                  stock on the date of grant, as established by the Employer's
                  Board of Directors, and such options shall first become
                  exercisable, on a cumulative basis, to the extent of 50% on
                  the first anniversary of the date of grant and the remaining
                  50% on the second anniversary of the date of grant.

         (b) Employer shall reimburse Employee for all expenses reasonably
         incurred by


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         Employee in connection with the performance of Employee's duties under
         this Agreement against Employee's documented vouchers for such
         expenses, which must be approved in writing prior to the incurrence of
         such expense for any item over $1,000.

         (c) Employee shall be entitled to not less than five (5) weeks vacation
         each year no more than three (3) weeks of which shall be taken in any
         consecutive six month period and other general medical and employee
         benefit plans (including profit sharing or pension plans) as shall have
         been established and are continuing for employees of Employer.

         (d) Employer shall pay directly or reimburse Employee for lease
         payments on the existing Lexus automobile leased by Employee (or any
         substitute vehicle reasonably agreed to by Employer) and monthly garage
         space in New York City for such vehicle throughout the term of this
         Agreement.

5.       Termination

         (a) Employer may terminate this Agreement only for cause. In the event
         of termination, Employee shall be paid salary to termination and upon
         termination, a pro rated bonus amount. In addition, no vested options
         shall be forfeited.

         (b) "Cause" within the meaning of this Agreement shall mean:

                  (i)      (intentionally omitted)

                  (ii)     (intentionally omitted)

                  (iii)    (intentionally omitted)

                  (iv)     Failure by Employee to comply in any material respect
                           with the terms of this Agreement, if any, or any
                           written policies or directives of the Board as
                           determined by the Board in good faith in its sole
                           discretion, which has not been corrected by Employee
                           within 10 days after written notice from the Employer
                           of such failure.

                  (v)      Physical incapacity or disability of Employee to
                           perform the services required to be performed under
                           this Agreement. For purposes of this Section 5(b)(v),
                           Employee's incapacity or disability to perform such
                           services for any cumulative period of one hundred
                           twenty (120) days during any twelve-month period, or
                           for any consecutive period of ninety (90) days, shall
                           be deemed "cause" hereunder.

                  (vi)     Employee is convicted of, pleads guilty to, confesses
                           to any felony or any act of fraud, misappropriation
                           or embezzlement.


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                  (vii)    Employee engages in a fraudulent act or dishonest act
                           to the damage or prejudice of Employer and its
                           affiliates or in conduct or activities damaging to
                           the property, business or reputation of Employer and
                           its affiliates.

                  (viii)   If Employee is registered or licensed with the
                           National Association of Securities Dealers, Inc. or
                           any other regulatory authority, federal or state, and
                           has violated any material applicable rule of any such
                           regulatory authority.

         (c) If Employer notifies Employee of its election to terminate this
         Agreement for cause, this termination shall become effective at the
         time notice is deemed to have been given in accordance with Section 9.

         (d) This Agreement shall automatically terminate upon the death of
         Employee.

6.       Non-Solicitation, Non-Disclosure,
         Shop Rights and Insider Trading

         (a).     (Intentionally omitted)

         (b).     Non-Solicitation.

         For one year following termination of employment (unless termination is
         due to breach by Employer), Employee covenants and agrees that Employee
         will not, directly or indirectly, either for itself or for any other
         person or business entity, (i) solicit any employee of Employer to
         terminate his employment with Employer or employ such individual during
         his employment with Employer and for a period of one (1) year after
         such individual terminates his employment with Employer, or (ii) make
         any disparaging statements concerning Employer, Employer's business or
         its officers, directors, or employees, that could injure, impair or
         damage the relationships between Employer or Employer's business on the
         one hand and any of the employees, customers or suppliers of Employer's
         business, or any lessor, lessee, vendor, supplier, customer,
         distributor, employee or other business associate of Employer's
         business; provided, however, that nothing herein shall restrict
         Employee from responding truthfully to inquiries regarding such matters
         pursuant to lawful court order provided that Employer has prompt prior
         written notice of any such request.

         (c).     Non-Disclosure and Non-Use.

                  (i) Description of Confidential Information. For purposes of
         this Section (c), Confidential Information means any information
         disclosed during the Employee's employment, which is clearly either
         marked or reasonably understood as being confidential or proprietary
         including, but not limited to, information disclosed in discussions
         between the parties in connection with technical information, data,

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         proposals and other documents of Employer pertaining to its business,
         products, services, finances, product designs, plans, customer lists,
         public relations and other marketing information and other unpublished
         information. Confidential Information shall include all tangible
         materials containing Confidential Information including, but not
         limited to, written or printed documents and computer disks and tapes,
         whether machine or user readable.

                  (ii) Standard of Care. Employee shall protect the Confidential
         Information from disclosure to any person other than other employees of
         Employer who have a need to know, by using a reasonable degree of care,
         to prevent the unauthorized use, dissemination, or publication of the
         Confidential Information.

                  (iii) Exclusion. This Section (c) imposes no obligation upon
         Employee with respect to information that: (a) was in Employee's
         possession before receipt from Employer; (b) is or becomes a matter of
         public knowledge through no fault of Employee; (c) is rightfully
         received by Employee from a third party who does not have a duty of
         confidentiality; (d) is disclosed under operation of law, except that
         Employee will disclose only such information as is legally required and
         give Employer prompt prior notice; or (e) is disclosed by Employee with
         Employer's prior written consent.

                  (iv) Stock Trading. If the information disclosed or of which
         Employee becomes aware is material non-public information about the
         Employer, then Employee agrees not to trade in the securities of A.B.
         Watley Group Inc., or in the securities of or any appropriate and
         relevant third party until such time as no violation of the applicable
         federal and state securities laws would result from such securities
         trading.

                  (v) Return of Confidential Information. The Employee will
         immediately destroy or return all tangible material embodying
         Confidential Information (in any form and including, without
         limitation, all summaries, copies and excerpts of Confidential
         Information) upon the earlier of (i) the completion or termination of
         the dealings between the Employer and Employee under the Agreement or
         (ii) at such time that Employer may so request provided that such
         return does not interfere with Employee's performance of his duties
         hereunder.

                  (vi) Notice of Breach. Employee shall notify Employer
         immediately upon discovery of any unauthorized use or disclosure of
         Confidential Information, or any other breach of the Agreement by
         Employee, and will cooperate with Employer in every reasonable way to
         help Employer regain possession of Confidential Information and
         prevents its further unauthorized use.

                  (vii) Injunctive Relief. The Employee acknowledges that
         disclosure or use of Confidential Information in violation of the
         Agreement could cause irreparable harm to the Employer for which
         monetary damages may be difficult to ascertain or an inadequate remedy.
         The Employee therefore agrees that the Employer will have the

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         rights in addition to its other rights and remedies, to seek and obtain
         injunctive relief from any violation of the Agreement.

         (d).     Shop Rights and Inventions, Patents, and Technology.

         Employee shall promptly disclose to Employer any developments, designs,
         patents, inventions, improvements, trade secrets, discoveries,
         copyrightable subject matter or other intellectual property conceived,
         either solely or jointly with others, developed, or reduced to practice
         by Employee during Employee's Term of Employment in connection with the
         services performed for Employer (the "Company Developments") and shall
         treat such information as proprietary to Employer. Employee agrees to
         assign to Employer any and all of Employee's right, title and interest
         in the Company Developments and Employee hereby agrees that Employee
         shall have no rights in the Company Developments. Any and all Company
         Developments in connection with the services performed for Employer
         pursuant to the Agreement are "works for hire" created for and owed
         exclusively by Employer.

7.       Representation and Indemnification

         Employee hereby represents and warrants that Employee is not a party to
any agreement, whether oral or written, which would prohibit Employee from being
employed by Employer, and Employee further agrees to indemnify and hold
Employer, its directors, officers, shareholders and agents, harmless from and
against any and all losses, cost or expense of every kind, nature and
description (including, without limitation, whether or not suit be brought, all
reasonable costs, expenses and fees of legal counsel), based upon, arising out
of or otherwise in respect of any breach of such representation and warranty.

8.       Injunctive Relief

         The parties acknowledge that the provisions of paragraph 6 hereof are
of great value to the Employer, are special, unique and of extraordinary
character, and that in the event of a breach or a threatened breach of Employee
of any of Employee's obligations under paragraph 6 of this Agreement, Employer
will not have an adequate remedy at law. Accordingly, in the event of any breach
or threatened breach by Employee of the provisions of paragraph 6 hereof,
Employer shall be entitled to such equitable and injunctive relief as may be
available to restrain Employee and any business, firm, partnership, individual,
corporation or entity participating in such a breach of this Agreement. Nothing
in this Agreement shall be construed as prohibiting Employer from pursing any
other remedies available at law or in equity for such breach or threatened
breach, including the recovery of damages and the immediate termination of the
employment of Employee under this Agreement.

9.       Notices

         All notices shall be in writing and shall be delivered personally
(including by courier), sent by facsimile transmission (with appropriate
documented receipt thereof), by overnight



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receipted courier service (such as UPS or Federal Express) or sent by certified,
registered or express mail, postage prepaid, to the parties at their address set
forth at the beginning of this Agreement with Employer's copy being sent to
Employer at its then principal office. Any such notice shall be deemed given
when so delivered personally, or if sent by facsimile transmission, when
transmitted, or, if mailed, forty-eight (48) hours after the date of deposit in
the mail. Any party may, by notice given in accordance with this Section to the
other party, designate another address or person for receipt of notices
hereunder. Copies of any notices to be given to Employer shall be given
simultaneously to: Hartman & Craven LLP, 460 Park Avenue, New York, New York
10022, Attention: Edward I. Tishelman, Esq..

10.      Miscellaneous

         (a) This Agreement shall be governed in all respects, including
         validity, construction, interpretation and effect, by New York law,
         without giving effect to conflicts of laws. The parties hereby agree
         that any action, proceeding or claim arising out of, or relating in any
         way to, this Agreement shall be brought and enforced in the courts of
         the State of New York or of the United States of America for the
         Southern District of New York, and irrevocably submit to such
         jurisdiction, and waive any claim that such courts represent an
         inconvenient forum.

         (b) This Agreement may be amended, superseded, canceled, renewed or
         extended, and the terms hereof may be waived, only by a written
         instrument signed by authorized representatives of the parties or, in
         the case of a waiver, by an authorized representative of the party
         waiving compliance. No such written instrument shall be effective
         unless it expressly recites that it is intended to amend, supersede,
         cancel, renew or extend this Agreement or to waive compliance with one
         or more of the terms hereof, as the case may be. No delay on the part
         of any party in exercising any right, power or privilege hereunder
         shall operate as a waiver thereof, nor shall any waiver on the part of
         any party of any such right, power or privilege, or any single or
         partial exercise of any such right, power or privilege, preclude any
         further exercise thereof or the exercise of any other such right, power
         or privilege. The rights and remedies herein provided are cumulative
         and are not exclusive of any rights or remedies that any party may
         otherwise have at law or in equity.

         (c) In view of Employer's need and desire to maintain a proper working
         environment with suitable demeanor of its employees and in light of
         Employer's sensitivity to the views of its customers and potential
         customers and to regulatory bodies having jurisdiction over Employer's
         business activities, Employer has instituted a policy of requiring
         employees to be subject to, at Employer's reasonable discretion,
         alcohol and drug testing procedures and requirements. Employee
         specifically consents to the same, agrees to be subject to whatever
         procedures may now or hereinafter be put in place covering such testing
         and understands and agrees that Employee's consent to this is a
         material inducement to Employer to enter into this Agreement and to
         provide for the employment of Employee hereunder.


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         (d) If any provision or any portion of any provision of this Agreement
         or the application of any such provision or any portion thereof to any
         person or circumstance, shall be held invalid or unenforceable, the
         remaining portion of such provision and the remaining provisions of
         this Agreement, or the application of such provision or portion of such
         provision as is held invalid or unenforceable to persons or
         circumstances other than those as to which it is held invalid or
         unenforceable, shall not be affected thereby and such provision or
         portion of any provision as shall have been held invalid or
         unenforceable shall be deemed limited or modified to the extent
         necessary to make it valid and enforceable; in no event shall this
         Agreement be rendered void or unenforceable.

         (e) The headings to the Sections of this Agreement are for convenience
         of reference only and shall not be given any effect in the construction
         or enforcement of this Agreement.

         (f) This Agreement shall inure to the benefit of and be binding upon
         the successor and assigns of Employer, but no interest in this
         Agreement shall be transferable in any manner by Employee.

         (g) This Agreement constitutes the entire agreement and understanding
         between the parties and supersedes all prior discussions, agreements
         and undertakings, written or oral, of any and every nature with respect
         thereto.

         (h) This Agreement may be executed by the parties hereto in separate
         counterparts which together shall constitute one and the same
         instrument.

         (i) In the event of the termination or expiration of this Agreement,
         the provisions of Sections 6, 7, 8 and 10 hereof shall remain in full
         force and effect, in accordance with their respective terms.

         IN WITNESS WHEREOF, this Agreement has been executed as of the date
stated at the beginning of this Agreement.


                                             A.B. WATLEY GROUP INC.


                                         By: /s/ Harry Simpson
                                             -----------------


                                             /s/ Peter Wigger
                                             ----------------
                                          Peter Wigger - Employee



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