<PAGE>

                                                                    EXHIBIT 10.3

                                LEASE AGREEMENT

THIS LEASE, made as of the _____ day of October, 1999, by and between THE
CONNECTICUT LIGHT AND POWER COMPANY, a specially chartered Connecticut
corporation having a place of business at 107 Selden Street, Berlin, Connecticut
("Landlord") and LIGHTHOUSE LANDINGS, INC. having a place of business at One
Springfield Avenue, Summit, New Jersey ("Tenant").

                                  WITNESSETH:

WHEREAS,

     Landlord is the owner of the parcel of land located at Atlantic Street and
     Washington Boulevard in Stamford, Connecticut, that is shown on the site
     plan attached hereto as Exhibit A and made a part hereof.

     Tenant wishes to lease from Landlord the area cross-hatched on said Exhibit
     and containing 3.6 acres, more or less, together with the dock located
     thereon (the "Premises") for the purpose of operating a ferry service.

     Landlord is willing to lease the Premises to Tenant on the terms and
     conditions set forth herein.

NOW THEREFORE, in consideration of the rents, covenants and conditions herein
set forth, Landlord and Tenant do hereby covenant, promise and agree as follows:

1.   Term:
     ----
     The initial term of the lease shall be five (5) years, commencing as of
     November 1, 1999 and ending on October 31, 2004 ("Initial Terns"), unless
     sooner terminated in accordance with the terms of this Lease.

     Rental payments shall commence on March 1, 2000. ("Rent Commencement Date")

2.   Renewal Option:
     ---------------
     If immediately prior to the expiration of the Initial Term, this lease
     shall be in full force and effect, and provided Tenant, not less than six
     (6) months prior to the expiration of the Initial Term shall have given
     Landlord written notice to renew, then upon the expiration of the Initial
     Term, the term of the Lease shall be automatically renewed and extended for
     a further term of five (5) years ("Renewal Term").  The terms and
     conditions of this Lease shall remain in full force and effect during the
     Renewal Term; provided, however, that rent for the Renewal Term shall be
     determined in accordance with Section 3 of this Lease.
<PAGE>

3.   Rent:
     ----
     Initial Term:                      Annually
                                        --------
             Rent Commencement
             Date - Sixth Month         $100,000 ($8,333.33/month)
             Seventh - Twelfth Month    $150,000 ($12,500/month)
     Second Year                        $150,000 ($12,500/month)
     Third and Fourth Years             $175,000 ($14,583.33/month)
     Fifth Year                         $200,000 ($16,666.67/month)

     Renewal Term:
             Additional Five (5) Years

     The annual Base Rent during the Renewal Term shall be increased in
     accordance with the U.S. Department of Labor, Bureau of Labor Statistics,
     Consumer Price Index for All Urban Consumers, U.S. City Average - All Items
     - (1982-84 = 100).

     The annual Base Rent for each year of the Renewal Term shall equal the sum
     of the annual Base Rent for the immediately preceding lease year plus the
     product of said annual Base Rent for the immediately preceding lease year
     times any percentage increase in the Consumer Price Index ("CPI") occurring
     between the first day of the immediately preceding lease year and the last
     day of the immediately preceding lease year.  But in no event will that
     amount be less than the amount payable in the immediately preceding lease
     year.  Tenant shall continue to pay monthly Base Rent at the rate
     applicable to the immediately preceding lease year until such time as the
     CPI schedule is published and Landlord notifies Tenant of the adjusted Base
     Rent for the current lease year.  Upon receipt of notification of the Base
     Rent for tile current lease year, Tenant shall remit any additional amounts
     due with the next Base Rent payment.

4.   Taxes:
     -----
     Landlord shall pay all taxes, charges and assessments levied against the
     Premises on or before the due date thereof.  Within thirty (30) days of
     receipt of Landlord's invoice for the same, Tenant shall reimburse Landlord
     for the amount of any increase in taxes assessed against the Premises based
     on Tenant's particular use of the Premises.  Tenant shall not be
     responsible for any other type of tax increase, including without
     limitation, general rate increases or general reassessments, except to the
     extent that such increases are attributable to Tenant's use of the
     Premises.  Tenant shall have the right to appeal any tax increase which it
     is obligated to pay under this Section 4.  Tenant shall be solely
     responsible for all taxes, including but not limited to sales and use
     taxes, attributable to Tenant's business operations.

5.   Use:
     ---
     The Premises will be used as a ferry service terminal including, without
     limitation, a parking lot, ticket office, terminal and dock for Tenant's
     vessels.

                                       2
<PAGE>

6.   Approvals:
     ---------

     After the execution of this Lease, Tenant shall diligently proceed to
     obtain all governmental permits, approvals, licenses and/or certificates
     required in connection with Tenant's use of the Premises, Tenant's
     alterations or improvements to the Premises, and Tenant's operation of
     passenger ferry services between the Premises and destinations selected by
     Tenant (collectively called herein the "Permits").  Tenant shall not be
     deemed to have obtained the Permits unless (a) all of the Permits contain
     terms and conditions acceptable to Tenant in its sole discretion, and (b)
     all of the Permits are final and unappealable (it being understood that all
     appeal periods applicable to the Permits shall have expired with no appeal
     having been filed, or if an appeal should be filed, it having been finally
     and conclusively resolved, without right of further appeal, in favor of the
     Permit).

     If Tenant has not obtained all such Permits within one hundred eighty days
     (180) days after the date of this Lease, then Tenant shall have the right
     to either (i) terminate this Lease or (ii) extend the contingency period
     for another sixty (60) days by notice given to Landlord within ten (10)
     days after the expiration of said one hundred eighty (180) day period; if
     Tenant exercises its right to extend the contingency period for an
     additional sixty (60) days, and if Tenant has not obtained all such Permits
     within the additional sixty (60) days, then Landlord and Tenant shall each
     have the right to terminate the lease by notice given to the other party
     within ton (10) days after the expiration of said sixty (60) day period.
     In the event that either party elects to terminate this Lease in accordance
     with this Paragraph 6, the Lease shall terminate as of the date of such
     notice of termination and thereafter neither party shall have any
     obligations or liability hereunder, except those which arose prior to the
     termination date.  Landlord agrees to cooperate with Tenant in connection
     with the Permits; Tenant agrees to reimburse Landlord for its out of pocket
     costs incurred at Tenant's request in connection with obtaining the
     Permits.

7.   Insurance:
     ---------

     For so long as this Lease is in effect, and as a condition to entering the
     Premises, the Tenant must provide evidence of at least the following
     insurance coverages:

     (a)  Workers' Compensation at statutory limits with Employer's Liability of
          at least $500,000 limits.

     (b)  Comprehensive General Liability insurance, including broad form
          property damage liability, with a combined single limit of at least
          $2,000,000 per occurrence for bodily injury and property damage per
          occurrence.

                                       3
<PAGE>

     All policies shall be endorsed to:

     (a)  Name the Landlord, its directors, officers, agents, employees, assigns
          and affiliates as additional insureds with respect to any and all
          third party bodily injury and/or property damage; and

     (b)  Require that thirty (30) days written notice be given to the landlord
          prior to any cancellation or material change in the policy.

     Additionally: All insurance certificates must identify the location of the
     Premises.

8.   Indemnification:
     ---------------

     Tenant shall indemnify and hold the Landlord, its directors, officers,
     agents, employees, assigns and affiliates harmless from any and all claims,
     costs (including ally attorneys' fees), loss or liability whatsoever,
     including but not limited to injury to persons (including death) or damage
     to the Premises (including environmental damage to the Premises) caused by
     or resulting from (a) the negligence or willful misconduct of Tenant or its
     agents, employees, contractors or invitees, or (b) any breach by Tenant of
     the terms of this Lease.

     Landlord shall indemnify and hold the Tenant, its directors, officers,
     agents, employees, assigns and affiliates harmless from any and all claims,
     costs (including any attorneys' fees), loss or liability whatsoever,
     including but not limited to injury to persons (including death) or damage
     to the Premises (including environmental damage to the Premises) caused by
     or resulting from (a) the negligence or willful misconduct of Landlord or
     its agents, employees, contractors or invitees, or (b) any breach by
     Landlord of the terms of this Lease.  The provisions of this Section 8
     should survive the termination of this Lease.

9.   Damage to or destruction of the Premises:
     ----------------------------------------

          (a)  Lease Termination.
          ---  -----------------

     If the Premises: (a) by reason of fire or casualty are rendered unsuitable,
     in Tenant's judgment, for Tenant's business purposes and Tenant elects not
     to repair; or (b) are damaged as a result of a risk which is not covered by
     Tenant's insurance and Tenant elects not to repair; Tenant may terminate
     this Lease by written notice given to Landlord within sixty (60) days after
     such event.  In the event of termination, this Lease shall expire thirty
     (30) days after the date on which such notice of termination is given and
     Tenant shall vacate and surrender the Premises to the Landlord.  In the
     event that this Lease is not terminated, Tenant shall commence repairs and
     restoration as soon as is reasonably possible and prosecute the same to
     completion with all due diligence.

                                       4
<PAGE>

          (b)  Rent Abatement.
          ---  --------------

     The Base Rent shall be abated proportionately if Tenant's use of the
     Premises is impaired during the period of any damage, repair or restoration
     provided for in this Section 9, provided, however, any such abatement of
     rent shall end five (5) days after the repair of the Premises has been
     substantially completed and Tenant has obtained any certificate or approval
     necessary to re-occupy or use the Premises.  Tenant shall continue the
     operation of its business at the Leased Premises during any such period to
     the extent reasonably practicable from the standpoint of prudent business
     management, and any other obligations of Tenant under the Lease shall
     remain in full force.  Except for the abatement of Rent herein provided,
     Tenant shall not be entitled to any compensation or damage for loss in the
     use of the whole or any part of the Premises and/or any inconvenience or
     annoyance occasioned by any damage, destruction, repair or restoration.  In
     the event the cause of the damage was due to the negligence or willful
     misconduct of the Tenant or its agents, employees, contractors or invitees,
     there shall be no abatement of rent.

10.  Condemnation of the Premises:
     ----------------------------

     If all or substantially all of the Premises shall be condemned or taken in
     any manner for any public or quasi-public use, this Lease shall cease and
     terminate as of the date of actual taking and Base Pent and additional rent
     payable hereunder shall be prorated to the date of such taking.  For the
     purposes of this Paragraph 10 "substantially all" of the Premises shall be
     deemed to have been taken if such condemnation or taking shall, in the
     reasonable deternnination of Tenant, render the Premises unusable for the
     Purposes set forth in Section 5 of this Lease.

11.  Leasehold Improvements:
     ----------------------

     Tenant shall have the right to install a ticket office, restripe the
     parking lots, relocate existing fence, make lighting improvements,
     landscape the Premises and construct a pedestrian ramp.  Tenant shall also
     have the right to make other alterations and improvements to the Premises,
     consistent with Paragraph 5, subject to Landlord's prior written approval
     which shall not be unreasonably withheld or delayed.  Upon receipt of an
     itemized invoice, Landlord shall reimburse Tenant for the costs and
     expenses incurred by Tenant in connection with the alterations and
     improvements described in this Section 11 up to but not exceeding $15,000.

     On the expiration or earlier termination of the Lease, tenant shall have
     the right, but not the obligation, to remove all improvements made by
     Tenant.  All trade fixtures and personal property installed at the Premises
     shall remain Tenant's property and will be removed by Tenant within sixty
     (60) days of termination.

                                       5
<PAGE>

12.  Estoppel Certificate:
     --------------------

     Tenant shall, at any tune and from a time to time, upon not less than ten
     (10) days prior notice by Landlord, execute, acknowledge and deliver to
     Landlord a statement in writing certifying that this Lease is unmodified
     and in full force and effect (or if there have been modifications, that the
     same is in full force and effect as modified and stating such
     modifications), and the dates to which the Base Rent and other payments
     have been paid in advance, if any, and stating whether or not Landlord is
     in default in performance of the terms of this Lease and, if so, specifying
     each such default of which the signer may have knowledge, it being intended
     that any such statement delivered pursuant to this Paragraph may be relied
     upon by any prospective purchaser of the fee of the Demised Premises or any
     mortgagees thereof or any assignee of any mortgage upon said fee.

     Landlord shall, at any time and from time to time, upon not less than ten
     (10) days prior notice by Tenant, execute, acknowledge and deliver to
     Tenant a statement in writing certifying that this Lease is unmodified and
     in full force and effect (or if there have been modifications, that the
     same is in full force and effect as modified and stating such
     modifications), and the dates to which the Base Rent and other payments
     have been paid in advance, if any, and stating whether or not Tenant is in
     default in performance of the terms of this Lease and, if so, specifying
     each such default of which the signer may have knowledge, it being intended
     that any such statement delivered pursuant to this Paragraph may be relied
     upon by any prospective assignee of the Tenant's interest hereunder or any
     mortgagees thereof or any assignee of any mortgage upon said interest or
     any permitted subtenant.

13.  Compliance With Laws:
     --------------------

     Tenant shall comply with ail laws, statutes, ordinances, regulations and
     other requirements of any governmental authority ("Legal Requirements") to
     the extent such compliance is required as a result of (a) Tenant's specific
     use of the premises, and/or (b) Tenant's acts.

     Landlord shall comply with all Legal Requirements applicable to the
     Premises, except to the extent set forth above.

14.  Maintenance/Repairs:
     -------------------

     During the entire Lease Term, Tenant shall be responsible for ongoing
     maintenance and repairs of the Premises.

15.  Signage:
     -------

     Tenant shall have the right to install one or more signs on the Premises
     provided all applicable laws and ordinances are complied with.

                                       6
<PAGE>

16.  Services:
     --------

     Tenant is responsible for the collection of all garbage on the Premises,
     for the removal of all ice and snow, and for the maintenance of the
     landscaped areas; Landlord does not have any obligation with respect to
     said services.

     Additionally, Tenant shall pay for all electrical services related to
     Tenant's use of leased Premises, as monitored through a separate meter.

17.  Assignment/Sublease:
     -------------------

     Tenant shall have the right to assign the Lease or to sublet all or any
     portion of the Premises without Landlord's prior consent, (i) to any
     parent, affiliate or subsidiary of Tenant, (ii) to any purchaser of all or
     substantially all of Tenant's assets, (iii) to any purchaser of all or
     substantially all of Tenant's outstanding stock, and (iv) to any entity
     into which Tenant is merged or consolidated provided, however, that the use
     of the Premises by any such assignee or subtenant is consistent with, and
     expressly limited to, the use described in Paragraph 5, above.  In the
     event of any such assignment or sublease, Tenant shall promptly notify
     Landlord.

     With respect to any other assignment or sublease to another ferry service
     operator, Landlord agrees not to unreasonably withhold or condition its
     consent; if Landlord fails to respond to Tenant's written request within
     thirty (30) days after its receipt by certified mail, then Landlord shall
     be deemed to have consented.

18.  Environmental Indemnification:
     -----------------------------

     (a)  As a supplement to, and not a limitation of, the provisions of Section
          13 hereof, Landlord shall, at its sole cost and expense, comply with
          all laws, statutes, ordinances, regulations and other requirements of
          any governmental authority relating to the environmental condition of
          the Premises ("Environmental Requirements"), including, without
          limitation, performing any testing, investigations, removal and
          remediation required by such Environmental Requirements, except that
          tenant shall be responsible for compliance with Environmental
          Requirements in connection with any release or discharge of a
          hazardous substance or hazardous waste occurring after the date hereof
          which is caused by Tenant or its agents, employees, contractors or
          invitees.

     (b)  Landlord shall indemnify, defend and hold Tenant harmless from and
          against any and all claims, costs (including attorneys' fees),
          actions, loss, judgments, fines and liability whatsoever (including,
          without limitation, actions brought by any governmental authority or
          third party) arising out of or in connection with the environmental
          condition of the Premises or any other property owned or operated by
          Landlord, except for any environmental condition arising out of any
          release or discharge of a hazardous waste or hazardous substance at
          the Premises after the

                                       7
<PAGE>

          date hereof which is caused by Tenant or its agents, employees,
          contractors or invitees.

     (c)  Tenant shall indemnify, defend and hold Landlord harmless from and
          against any and all claims, costs (including attorneys' fees),
          actions, loss judgments, fines and liability whatsoever (including,
          without limitation, actions brought by any governmental authority or
          third party) arising out of or in connection with any release or
          discharge of a hazardous waste or hazardous substance at the Premises
          after the date hereof which is caused by Tenant or its agents,
          employees, contractors or invitees.

     (d)  Notwithstanding anything to the contrary contained in this Lease,
          Tenant shall have the right during the Investigation Period (as
          hereinafter defined) to conduct such investigations and analyses of
          the environmental condition of the Premises and its environs as it
          deems prudent. Landlord shall cooperate with Tenant, at no cost to
          Landlord, in connection with such investigations and analyses. In the
          event that Tenant, in its sole discretion, is not satisfied with the
          results of any such investigation or analysis, it shall have the
          right, by notice given to Landlord prior to the expiration of the
          Investigation Period, to terminate this Lease. As of the date of any
          such notice, this lease shall terminate and neither party shall have
          any further liability hereunder. The term "Investigation Period" as
          used herein shall mean the period commencing on the date of this Lease
          and ending on the thirtieth (30) day thereafter.

     (e)  The indemnification provisions of this Section 18 shall survive the
          termination of this Lease.

19.  Pollutants/Permits:
     ------------------

     Tenant shall not at any time use or store any pollutant or hazardous
                  ---
     material on the Premises, and shall at all times maintain the Premises in a
     safe and lawful condition. Upon Landlord's request, Tenant shall provide
     evidence reasonably satisfactory to Landlord that all required consents or
     permits are in force for Tenant's use of the Premises.

20.  Cancellation:
     ------------

     Tenant recognizes that the Premises is a component of the entire twenty-
     five (25) acre parcel (the "Property") being marketed for redevelopment in
     conjunction with the City of Stamford's redevelopment efforts for the
     entire Southend.

     In the event of any sale of the Prep rises by Connecticut Light and Power
     Company, Landlord shall have the right to require Tenant to relocate to new
     premises owned by Landlord, subject, however, to the following:

                                       8
<PAGE>

     (a)  Landlord shall give Tenant not less than one (1) year's prior written
          notice of the relocation (the date which is one (1) year after the
          date of such notice being hereinafter called the "Relocation Date"),
          which notice shall include a plan identifying the New Premises (as
          hereinafter defined);

     (b)  the Premises shall be relocated to another portion of the Property
          (the "New Premises") which (i) shall be suitable to Tenant for the
          operation of its ferry service terminal, (ii) shall be in good and
          safe condition and in compliance with all applicable laws, statutes,
          ordinances and other requirements of any governmental authority, and
          (iii) shall include, without limitation, an on site dock, on site
          parking with at least as many spaces as the original Premises,
          vehicular access directly to a main public road, and location for
          signage to adequately identify to the public the location of Tenant's
          operation;

     (c)  commencing not less than ninety (90) days prior to the Relocation
          Date, Tenant shall have the right to access the New Premises and to
          construct and install such alterations, improvements and facilities as
          Tenant deems necessary, provided such alterations, improvements and
          facilities are consistent with the use permitted under Paragraph 5
          hereof (such alterations, improvements and facilities being called
          herein the "Relocation Work") and to otherwise prepare the New
          Premises for Tenant's use and occupancy; and

     (d)  Landlord shall cooperate with Tenant, at Tenant's cost, in connection
          with all governmental permits, approvals, licenses and/or
          certifications required in connection with Tenant's use of the New
          Premises, the Relocation Work, and Tenant's operation of passenger
          ferry services between the New Premises and destinations selected by
          Tenant (the permits, approvals, licenses and/or certifications
          referred to herein being called collectively, the "New Permits").

     Subject to the foregoing provisions, on or before the Relocation Date (or
     such later date as shall be reasonably necessary for Tenant to complete the
     Relocation Work and to commence its operations from the New Premises,
     provided Tenant shall have diligently pursued the New Permits and after
     obtaining the New Permits shall have diligently pursued the Relocation
     Work), Tenant shall surrender the original Premises to Landlord and from
     and after the date of such surrender, the New Premises shall be deemed to
     be the Premises under this Lease and all other terms and conditions of this
     Lease shall remain unmodified and in full force and effect.

     Notwithstanding anything to the contrary contained herein, in the event
     that Tenant has not obtained all of the New Permits on or before the
     Relocation Date, Tenant shall have the right to terminate this Lease by
     notice given to Landlord within ten (10) days after the Relocation Date.
     In the event that Tenant gives such termination notice, this Lease shall
     terminate as of the date of the notice.  Tenant shall not be deemed to have
     obtained the New Permits unless (a) all of the New Permits contain terms
     and conditions acceptable to Tenant in its sole discretion, and (b) all of
     the New Permits are final and unappealable (it

                                       9
<PAGE>

     being understood that all appeal periods applicable to the New Permits
     shall have expired with no appeal having been filed, or if an appeal should
     be filed, it having been finally and conclusively resolved, without right
     of further appeal, in favor of the New Permit).

21.  Quiet Enjoyment:
     ---------------

     Landlord represents and warrants that (a) it is the owner of the Premises,
     and (b) there are no covenants, easements, restrictions, agreements or
     other encumbrances affecting the Premises which would interfere with
     Tenant's use of the Premises as contemplated hereby.  Landlord covenants
     that if, and so long as, Tenant performs its obligations hereunder, Tenant
     shall have the right to peaceably and quietly have, hold and enjoy the
     Premises for the term herein mentioned, subject to the provisions of this
     Lease.

22.  Notices:
     -------

     All Notices permitted or required to be made by the Tenant or the Landlord
     shall be made in writing and will be considered to be received upon
     personal delivery or three (3) business days following mailing of a Notice
     by certified mail, postage prepaid, return receipt requested to:

            Landlord:    The Connecticut Light and Power Company
                         Real Estate Department
                         Box 270
                         Hartford, CT 06141-0270
                         Attention: Manager - Real Estate and Land Planning

            Tenant:      Lighthouse Landings, Inc.
                         One Springfield Avenue
                         Summit, NJ 07901
                         Attention: Raymond F. Wright,
                         Executive Vice President and Chief Financial Officer

23.  Entire Agreement:
     ----------------

     This Lease constitutes the entire agreement between the Landlord and the
     Tenant with respect to the Premises and no oral statements, promises,
     express or implied warranties, or other understandings except those
     expressly set forth in this Lease shall be valid unless reduced to writing
     and signed by both parties on or after the date of this Lease.

24.  No Broker:
     ---------

     Tenant represents that no broker or agent brought the Premises to the
     Tenant's attention or was the procuring cause of this Lease transaction.
     Landlord enters into this Lease in reliance on Tenant's representation that
     no broker or agent, in any way, brought the Premises to the Tenant's
     attention or was the procuring cause of this Lease transaction.

                                       10
<PAGE>

     Landlord represents that no broker or agent was the procuring cause of this
     Lease transaction.  Tenant enters into this Lease in reliance on Landlord's
     representation, that no broker or agent was, in any way, the procuring
     cause of this Lease transaction.

25.  Binding Effect:
     --------------

     This Lease is binding upon and shall inure to the benefit of the respective
     successors and permitted assigns of the parties hereto.

                    LANDLORD:  THE CONNECTICUT (LIGHT AND
                                            POWER COMPANY

                                 By: /s/Salvatore Giuliano
                                    --------------------------------------------
                                     Salvatore Giuliano
                                     Manager - Real Estate and Land Planning

                    TENANT:  LIGHTHOUSE LANDINGS, INC.


                                 By: /s/Raymond F. Wright
                                    --------------------------------------------
                                     Raymond F. Wright
                                     Executive Vice President and
                                     Chief Financial Officer

                                       11