Document:

<PAGE>   1
                                                                   EXHIBIT 10.1

                                 LEASE AGREEMENT

                                 BY AND BETWEEN

                        GLENDALE INVESTMENTS, LLC, LESSOR

                                       AND

                    CONTINENTAL TRADE EXCHANGE, LTD., LESSEE

                                       FOR

                            16901 WEST GLENDALE DRIVE
                           NEW BERLIN, WISCONSIN 53151

<PAGE>   2

                                    INDEX TO
             GLENDALE INVESTMENTS, LLC / CONTINENTAL TRADE EXCHANGE
                                 LEASE AGREEMENT
<TABLE>
<CAPTION>

TITLE                                                                                                      PAGE
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<S>                                                                                                        <C>
1.       PARTIES TO AGREEMENT AND MAILING ADDRESSES                                                           1

2.       DESCRIPTION OF PREMISES LEASED                                                                       1

3.       CONVEYANCE OF PREMISES FOR THE TERM                                                                  1

4.       TERM OF LEASE                                                                                        1

5.       RENT                                                                                                 1

6.       SECURITY DEPOSIT                                                                                     2

7.       MAINTENANCE AND REPAIR                                                                               2

8.       UTILITIES                                                                                            3

9.       USE OF PREMISES, COMPLIANCE WITH LAW AND SIGNS                                                       3

10.      ASSIGNMENT AND SUBLETTING                                                                            3

11.      TRADE FIXTURES AND REMODELING OF PREMISES                                                            4

12.      INDEMNITY AND LIABILITY INSURANCE                                                                    4

13.      FIRST PARTY PERSONAL PROPERTY DAMAGE,
         INSURANCE, SUBROGATION AND NONLIABILITY
         FOR CONSEQUENTIAL DAMAGES                                                                            5

14.      REAL ESTATE TAXES, SPECIAL ASSESSMENTS,
         INSURANCE PREMIUMS, UTILITIES, AND
         MAINTENANCE COSTS                                                                                    5

15.      DAMAGE OR INJURY AND CONDITION OF PREMISES                                                           6

16.      SURRENDER AT END OF TERM                                                                             6

17.      LATE PAYMENT FEE AND RE-ENTRY UPON
         DEFAULT OF LESSEE                                                                                    6

18.      OPTION TO EXTEND INITIAL TERM                                                                        7

19.      EFFECT OF BANKRUPTCY OR INSOLVENCY                                                                   7

20.      LESSOR'S ENTRY FOR INSPECTION, MAINTENANCE
         AND REPAIR; FOR RENT SIGN                                                                            8

</TABLE>

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<TABLE>
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TITLE                                                                                                      PAGE
-----                                                                                                      ----
<S>                                                                                                        <C>
21.      DAMAGE OR DESTRUCTION OF PREMISES                                                                    8

22.      CONSENT NOT TO BE UNREASONABLY WITHHELD                                                              8

23.      WAIVER OF BREACH NOT WAIVER OF SUBSEQUENT BREACH                                                     9

24.      NOTICES IN WRITING                                                                                   9

25.      ESTOPPEL CERTIFICATES                                                                                9

26.      SUBORDINATE TO MORTGAGE AND ATTORNMENT                                                               9

27.      COVENANTS BINDING UPON ASSIGNS                                                                       9

28.      LAW OF FORUM; PROVISIONS SEVERABLE                                                                   9

29.      ENTIRE AGREEMENT AND MODIFICATION                                                                   10
</TABLE>

<PAGE>   4

                                 LEASE AGREEMENT

         THIS INDENTURE, made and entered into at New Berlin, Wisconsin, on the
28th day of September, 1999, but as of the 1st day of October, 1999, by and
between GLENDALE INVESTMENTS, LLC as Lessor and CONTINENTAL TRADE EXCHANGE, LTD.
as Lessee.

                                   WITNESSETH:

         1. PARTIES TO AGREEMENT AND MAILING ADDRESSES. Lessor is Glendale
Investments, LLC, a limited liability corporation whose mailing address is 16901
West Glendale Drive, New Berlin, WI, 53151. Lessee is Continental Trade
Exchange, Ltd. a Wisconsin business corporation, with its designated mailing
address at P.O. Box 510305, New Berlin, WI 53151-0305.
         2. DESCRIPTION OF PREMISES LEASED. The premises leased under this lease
agreement consist of the exclusive use of the northerly part of the one-story
office and warehouse building located at 16901 West Glendale Drive, New Berlin,
Wisconsin, 53151, separated from the balance of the commercial building by an
irregular east to west dividing wall as generally illustrated in the sketch
attached hereto, together with the non-exclusive use in common with Lessor and
with other occupants of the commercial building of the open areas designated by
Lessor for common use, altogether referenced herein as the premises.
         3. CONVEYANCE OF PREMISES FOR THE TERM. Lessor, for and in
consideration of the covenants hereinafter recited, does hereby lease, demise
and let the premises unto Lessee which Lessee shall have and hold and have the
quiet enjoyment thereof for the duration of the term of this lease agreement.
         4. TERM OF LEASE. The term of this lease is three years commencing on
the 1st day of October, 1999, and ending on the 30th day of September, 2002.
Lessee has inspected the property and accepts the premises in their present
condition.
         5. RENT. Lessee shall have, hold and peaceably enjoy the use of the
premises for the term and shall pay therefor the base rent of $180,000.00,
adjusted and supplemented as herein provided, payable at the rate of $5,000.00
($4,000.00 U. S. currency and $1,000.00 CTE Trade Dollars) on the first day of
October, 1999, through the end of the term, together with adjustments to base
rent and the other obligations particularized hereinbelow, and together with any
sales, use, occupancy or similar taxes, if any, attributable thereto.

                                        1

<PAGE>   5

         The base rent shall be paid together with any sales, use, occupancy or
similar taxes, if any, attributable thereto, absolutely without any claim of
setoff for any reason whatever against Lessor; the obligation to pay rent being
a covenant independent of the covenants herein to be performed by Lessor. No
payment by Lessee or receipt by Lessor of a lesser amount than the monthly
installments of rent herein provided shall be other than on account of the
earliest unpaid rent obligation, nor shall any endorsement or statement on or
accompanying any remittance be deemed an accord or satisfaction, and lessor
shall accept such remittance without prejudice to Lessor's right to recover
unpaid rent or to pursue any other remedy in this lease agreement.
         6. SECURITY DEPOSIT. Contemporaneously with the execution and delivery
of this lease agreement, lessee has paid Lessor the sum of Eight Thousand
Dollars ($8,000.00), which shall be retained by Lessor as security for the full
and faithful performance by Lessee of its obligations under this lease
agreement, which security deposit may be used by Lessor for its own purposes,
and which shall be returned to Lessee promptly upon the expiration of the term
of this lease agreement, or any extension thereof, provided Lessee has
faithfully performed its obligations under the terms hereof and has surrendered
the premises to Lessor, otherwise to be applied to the damages sustained by
Lessor under this lease agreement.
         7. MAINTENANCE AND REPAIR. Lessor shall, as required and at its cost,
perform repairs, maintenance or replacement to the structure and to the roof of
the building of the premises, except for repairs, maintenance or replacement to
the structure or to the roof which become necessary through the fault or neglect
of Lessee, its agents, employees or other persons, other than Lessor, in privity
with Lessee, in which event Lessee shall pay the cost thereof. Lessor shall
exercise reasonable effort to maintain the roof of the building of the premises
free from water leaks, but the parties recognize the roof of the building is
flat and will be susceptible to damage by the elements which may result in such
water leaks. In no event, however, shall Lessor be liable to Lessee for water
damage resulting from water leaks in the roof or from water seepage.
         Lessor shall maintain the exterior common areas of the commercial
building and shall perform maintenance and repaving of the parking lot and the
driveway access thereto, including snow and ice removal and landscape
maintenance, and Lessee shall contribute to the cost thereof as provided herein.
         Lessee shall give prompt notice to Lessor of any condition of the
premises requiring maintenance by Lessor.

                                        2

<PAGE>   6

         Lessee shall, at its cost, maintain the premises in good repair,
reasonable wear and tear excepted, including, but not limited to snow and ice
removal adjacent to the pedestrian and vehicular entranceways to the building of
the premises where not normally removed by plowing, and shall perform
maintenance and repair as necessary of the heating, air conditioning, hot water
and plumbing systems and window glass replacement and all other maintenance,
excepting only the said structural repairs and exterior maintenance of the roof
and of the common areas to be performed by Lessor.
         In the event either party fails to timely perform the maintenance
obligations required of it, the other party may perform such obligations, and
the defaulting party shall pay the performing party the costs incurred promptly
upon receipt of the invoice therefor.
         8. UTILITIES. Lessee shall directly pay for costs of gas, heat,
electricity and other utilities separately metered to the premises, and shall
contribute to the costs of water and sewer and other utilities which are not
separately metered to the premises on the pro rata basis provided herein,
altogether with any taxes or use assessments attributable thereto.
         9. USE OF PREMISES, COMPLIANCE WITH LAW AND SIGNS. Lessee shall use the
premises for offices, showroom, warehousing and distribution incident to the
barter business of Lessee, and for no other purpose without the prior written
consent of Lessor, and shall comply with all requirements of law and rules and
regulations and orders of supervising governmental authorities, and shall not,
in any event, put the premises to noxious or illegal uses, or uses that may
constitute a nuisance or an irritant to the use, occupancy and unimpeded
driveway access of other tenants of the commercial building or of adjacent
properties as applicable, nor shall Lessee store vehicles not in regular use nor
equipment nor boxes nor other materials exterior to the building nor cause the
premises to become unsightly, nor paint or deface masonry or metal trim, nor
erect or display any signs visible outside of the premises without the prior
written consent of Lessor, and Lessor may remove any unauthorized signs at the
cost of Lessee. Lessee shall pay all fees for signs imposed by supervising
governmental authority.
         10. ASSIGNMENT AND SUBLETTING. Lessee shall not assign this lease nor
sublet all or any portion of the premises without first obtaining the written
consent of Lessor. Such assignment or subletting shall not relieve Lessor from
liability for payment of rent and the performance of all other obligations
hereunder, unless otherwise agreed in writing by both parties.

                                        3

<PAGE>   7

         11. TRADE FIXTURES AND REMODELING OF PREMISES. All trade fixtures and
equipment and personal property installed by or for Lessee incident to its
business, except leasehold improvements installed by Lessor at the commencement
of the term as provided herein or otherwise at its cost, shall remain the
property of Lessee and shall be removed by Lessee during or at the expiration or
sooner termination of the term of this lease agreement, and Lessee shall repair
and restore the premises to its initial condition, reasonable wear and tear
excepted. If Lessee shall fail to make such removal and repair, Lessor shall
make or cause the same to be made, and Lessee shall pay Lessor the cost thereof
promptly upon receipt of the invoice therefor. No remodeling of, or alteration
to, the premises shall be made by Lessee without the prior written consent of
Lessor.
         Any personal property belonging to Lessee left on the premises when
Lessee shall surrender the premises to Lessor shall be deemed abandoned and may
be disposed of and the premises restored in the discretion of Lessor, and Lessee
shall reimburse Lessor for the cost of such disposal and restoration promptly
upon receipt of the invoice therefor.

         12. INDEMNITY AND LIABILITY INSURANCE. In consideration for
commensurate reduction in rent, Lessee shall indemnify, hold harmless, and
defend Lessor from and against any and all claims, demands, damages, suits,
actions, judgments, decrees, orders and expenses including attorney fees in
favor of anyone arising out of or on account of this lease agreement or the use,
occupancy or condition of the premises for incidents occurring during the term
of this lease agreement including any extension thereof, or while holding over,
caused by any person whatever, whether the claim therefor is made during or
after the expiration of the term of this lease agreement. To additionally secure
Lessor against such claims, lessee shall, during the term of this lease
agreement, or any extension thereof, and while holding over, maintain in full
force and effect a policy or policies of comprehensive general liability
insurance against loss, liability or claims made by any person, including Lessee
and third parties, on an occurrence basis with a combined single limit of not
less than $2,000,000.00 for any one person, or for any one occurrence, naming
lessor as an additional insured. Lessee shall furnish Lessor with a certificate
of insurance showing such policy or policies to be in full force and effect
during the term of this lease agreement, or any extension thereof, or while
holding over, which shall contain a provision that the said policy or policies
are not to be cancelled except upon 30 days prior written notice of cancellation
to Lessor.

                                        4

<PAGE>   8

         13. FIRST PARTY PERSONAL PROPERTY DAMAGE, INSURANCE, SUBROGATION AND
NONLIABILITY FOR CONSEQUENTIAL DAMAGES. Neither of the parties hereto shall be
liable nor responsible to the other party for personal property damage or for
consequential damages sustained whether or not occasioned by negligence. Each of
the parties shall insure against damage by casualty or negligence to its
personal property and be limited to first party recovery from its respective
insurance carriers without subrogating the claim of either against the other to
the benefit of the insurance carriers making payment under insurance contracts.
Each party shall name the other party as an additional insured or shall take
such other action as will effectively prevent the insured party's insurance
carrier from subrogating a claim against the other party. Each party shall
furnish the other party with a certificate of insurance showing such policy or
policies to be in full force and effect during the term of this lease agreement,
or any extension thereof, and while holding over which shall contain a provision
that the said policy or policies are not to be cancelled except upon 30 days
prior written notice of cancellation to the named insureds or certificate
holders.
         Lessor shall not be responsible nor liable to Lessee for any loss,
damage, injury, consequential damages or for any matter whatever that may result
through the acts or omissions of Lessor, other than for its intentional acts, or
through the acts or commissions of any other party, it being the contemplation
of the parties that Lessee may, at its election, insure against such losses or
make other provision for such loss, damage or injury.
         14. REAL ESTATE TAXES, SPECIAL ASSESSMENTS, INSURANCE PREMIUMS,
UTILITIES, AND MAINTENANCE COSTS. Lessee shall pay as additional rent 50% of the
net increase in annual real estate taxes over and above the amount billed for
the 1999 real estate taxes on the property, and 50% of the following other
costs: special assessments capitalized and amortized over the useful life of
such special assessment at the rate and interest charged by the assessing
governmental authority, premiums for fire and extended coverage insurance and
owners, landlord's and tenant's liability insurance carried by Lessor upon the
entire commercial building and land in and on which the premises are situated,
costs of Lessor for utilities not separately metered to the premises and for
maintenance and repair of the premises which are to be performed by Lessor,
other than for structural and roof repair, which additional rent determined on a
calendar year or other basis shall be prorated to conform to the lease term
year, and any extension thereof, or while holding over. Lessee shall prepay

                                        5

<PAGE>   9

one-twelfth (1/12) of the anticipated additional rent independently for the
first 3 months of the term and thereafter with each monthly payment of base
rent, and upon determination of the actual sum required, any excess payment
shall be promptly refunded by Lessor to Lessee, and any insufficient payment
shall be promptly paid by Lessee to Lessor upon receipt of the invoice and
supporting documents therefor, even if delivered after the expiration of the
lease term.
         15. DAMAGE OR INJURY AND CONDITION OF PREMISES. Lessee shall use and
occupy the premises in a careful, safe and lawful manner, without waste, and
shall keep the premises and all parts thereof in good order, and will so deliver
up the same at the expiration or sooner termination of this lease agreement,
reasonable use and ordinary wear and tear thereof and damage by unavoidable
casualty to personal property against which Lessor is obligated to insure and is
or would be covered and fully compensable to lessor by such insurance excepted.
Lessee, at its sole cost and expense, shall make good any damage to the premises
or any part thereof caused by the act of Lessee or its agents and employees, or
by persons, other than Lessor, in privity with Lessee, and shall prior to the
expiration or sooner termination of the lease term repair any damage to said
premises which may be caused by its removal therefrom.
         16. SURRENDER AT END OF TERM. Lessee covenants that on the last day of
the term of this lease agreement, including any extension or earlier termination
thereof, to peaceably and quietly surrender and yield up to Lessor the entire
premises, including all leasehold and other improvements and additions to the
freehold not required to be removed, broom clean and in good order and
condition, reasonable wear and tear excepted. Should lessee hold over after the
expiration of the term of this lease agreement, or any extension thereof, this
lease shall then continue on a month to month term only, subject to all of the
conditions, provisions and obligations of this lease agreement insofar as the
same are applicable to the month to month term.
         17. LATE PAYMENT FEE AND RE-ENTRY UPON DEFAULT OF LESSEE.  If Lessee
shall default in the payment of rent for fifteen (15) days after the due date
thereof, then Lessee shall, in addition to the payment of rent in default, pay
Lessor five percent (5%) of the payment in default as a late payment fee.
         In the event Lessee does not or shall neglect or fail to perform and
observe any of the covenants or conditions herein contained which on its part
are to be performed, including the independent covenant for payment of rent,
Lessor may lawfully, immediately, or at any time thereafter, and while

                                        6

<PAGE>   10

such neglect or default continues, and upon 30 days prior written notice of
default which remains uncorrected, except in those cases where it is not
feasible for Lessee to correct the default within 30 days, and Lessee has
commenced correction within 30 days of the notice or demand and is diligently
pursuing the correction to completion, then without further notice or demand,
enter into or upon said premises and repossess the same as if its former estate,
and expel Lessee and those claiming under it, and remove its effects, forcibly
if necessary, without prejudice to any remedies which might otherwise be used
for arrears of rent or preceding breach of covenant; and such expulsion and
removal, whether by the direct act of Lessor or its assigns, or through the
medium of legal proceedings for that purpose instituted, shall not affect the
liability of Lessee or its representatives for the past rent due or future rent
to accrue under this lease, but the same shall continue as set forth herein as
if such removal or expulsion had not taken place. Lessee further covenants and
agrees to pay and discharge all reasonable costs, attorneys' fees and expenses
that shall be paid and incurred by Lessor in enforcing or defending the
covenants and agreements of this lease. The remedies of Lessor shall be
cumulative.
         Accelerated base rent and other obligations of Lessee to Lessor shall
bear interest on the unpaid balance thereof from time to time until paid at the
rate of one percent (1%) applied monthly to the total amount of principal and
accumulated interest accrued.
         18. OPTION TO EXTEND INITIAL TERM. Provided Lessee shall in all
respects be current in the performance of its obligations under this lease
agreement, and not otherwise, and not while holding over, and it shall desire to
extend the initial term of this lease agreement, it shall have the option to do
so for one additional three (3) year term, which options shall be exercised by
giving notice to Lessor of its election to extend the initial term not less than
six (6) months prior to the commencement of the extended term, whereupon this
lease agreement shall be extended for such additional term without the necessity
for any extension agreement, and all of the terms and conditions of this lease
agreement shall continue as though the initial term included the extended term
with annual modifications to base rent.
         19. EFFECT OF BANKRUPTCY OR INSOLVENCY. The interest of Lessee under
this agreement shall not be subject to involuntary assignment, transfer or sale
by operation of law or in any manner whatsoever, and any such attempt at
involuntary assignment, transfer or sale shall be void and of no effect.

                                        7

<PAGE>   11

         In the event any proceedings under the Bankruptcy Act or similar laws
are commenced by or against Lessee which are not dismissed before an
adjudication in bankruptcy or the confirmation of a composition, arrangement or
plan of reorganization, or in the event Lessee is adjudged insolvent or makes an
assignment for the benefits of its creditors, or if a receiver is appointed for
Lessee in any proceedings or action, then at the election of Lessor, the Lessor
may accelerate the unpaid rent as provided herein and all obligations of Lessee
to Lessor hereunder including all such obligations of any and all persons
claiming under Lessee as upon default by Lessee.
         20. LESSOR'S ENTRY FOR INSPECTION, MAINTENANCE AND REPAIR; FOR RENT
SIGN. Lessor shall have the right, at reasonable times during the business hours
of Lessee with reasonable advance verbal notice, except in the case of an
emergency when entry may be made at any time by key and alarm disarmament code
provided by Lessee, to enter upon the premises for the purposes of inspecting
the same and of showing the said premises to prospective tenants or to
purchasers or to lenders or to maintain or to make repairs or modifications to
the improvements thereon. Lessee will permit the usual "For Rent" or similar
signs to be placed upon the premises at any time within six (6) months prior to
he expiration of the term of this lease agreement.
         21. DAMAGE OR DESTRUCTION OF PREMISES. In the event the premises shall
be damaged or destroyed during the term of this lease agreement by fire, other
casualty or the elements, it shall be promptly repaired by Lessor, at his
expense. Lessor shall undertake the necessary work within a reasonable period of
time after such damage or destruction and shall pursue the same with due
diligence, in a manner consistent with sound construction methods; but Lessor
shall not be liable for any delays in or interruptions to such construction or
repair occasioned by strikes, acts of God, national emergency, governmental
regulations, inability to procure labor or materials or any other causes,
whether of similar or dissimilar nature, beyond its control. Rent shall be
abated during the period when the premises are unable to be occupied. In the
case where the premises may be partially occupied, rent shall be prorated to the
proportion of the premises which may be occupied.
         22. CONSENT NOT TO BE UNREASONABLY WITHHELD.  Wherever in this
agreement the consent of Lessor is a prerequisite condition to any act or
omission by Lessee, such consent shall not be unreasonably withheld.

                                        8
<PAGE>   12

         23. WAIVER OF BREACH NOT WAIVER OF SUBSEQUENT BREACH.  The declination
of Lessor to insist on strict performance of any of the terms and conditions of
this agreement and the obligations of Lessee hereunder shall not be deemed a
waiver of any subsequent breach or default on the part of Lessee.
         24. NOTICES IN WRITING. Unless otherwise specifically provided herein,
all notices by either party to the other shall be in writing and given by
receipted personal delivery or sent by certified mail with sender's and return
receipts to the other party at the address set forth hereinabove, or to such
other address as either party shall hereafter designate to the other by notice,
and shall be effective upon receipted personal delivery or mailing as
applicable.
         25. ESTOPPEL CERTIFICATES. At any time, and from time to time, Lessee
agrees, upon request in writing from Lessor, to execute, acknowledge and deliver
to Lessor a statement in writing certifying that its lease agreement is
unmodified, or if modified, stating the modifications, and in full force and
effect and the date to and for which the rent and other amounts and charges
hereunder have been paid substantially in the form attached hereto.
         26. SUBORDINATE TO MORTGAGE AND ATTORNMENT. This lease agreement shall
at all times be subordinate to any mortgage or security agreement placed by
Lessor upon the premises, provided, so long as Lessee is not in default under
the terms of this lease agreement, the rights of Lessee hereunder shall not be
prejudiced nor its occupancy of the premises be disturbed by any action taken by
the mortgagee under terms of its mortgage, and in consideration thereof, Lessee
agrees to attorn to the mortgagee or any successor in interest to Lessor as its
successor Lessor, and this lease agreement shall continue in full force and
effect between Lessee and the successor Lessor. The parties hereto agree to
execute such documents as may be necessary to give effect to this provision.
         27. COVENANTS BINDING UPON ASSIGNS. The covenants, conditions and terms
of this lease agreement shall be binding upon the parties hereto and upon their
successors, assigns, trustees, receivers, heirs and personal representatives, as
the case may be.
         28. LAW OF FORUM; PROVISIONS SEVERABLE. This lease agreement shall be
governed by the laws of the State of Wisconsin. If any provision of this lease
agreement shall be declared by a court of competent jurisdiction to be invalid,
illegal or unenforceable under any law applicable thereto, such provision shall
be deemed deleted from this lease agreement without impairing or prejudicing the
validity, legality and enforceability of the remaining provisions hereof.

                                        9

<PAGE>   13

         29. ENTIRE AGREEMENT AND MODIFICATION. This instrument is the entire
lease agreement between the parties hereto, and there are no other promises,
conditions or understandings, oral or written, between the parties. This
agreement shall not be modified nor amended unless reduced to writing and
executed as this agreement is executed.

         IN WITNESS WHEREOF, Glendale Investments, LLC, as Lessor, has caused
this lease agreement to be executed by its three partners: Donald F. Mardak,
John E. Strabley and Dale L. Mardak, and Continental Trade Exchange, Ltd., as
Lessee, has caused this lease agreement to be executed by its duly authorized
officers, and their respective seals to be hereunto affixed, in multiple
original, at the place and on the date first above written.

LESSOR:                                   LESSEE:
GLENDALE INVESTMENTS, LLC.                CONTINENTAL TRADE EXCHANGE, LTD.

         /s/ DONALD F. MARDAK                /s/ DONALD F. MARDAK
      By:-------------------------        By:---------------------------
         Donald F. Mardak, Partner           Donald F. Mardak, President

         /s/ JOHN E. STRABLEY                /s/ JUDY E. MARDAK
      By:-------------------------        By:---------------------------
         John E. Strabley, Partner           Judy E. Mardak, Secretary

         /s/ DALE L. MARDAK
      By:-----------------------
         Dale L. Mardak, Partner

                                       10<PAGE>   1
                                                                    EXHIBIT 10.2

                                ESCROW AGREEMENT

         ESCROW AGREEMENT, made and entered into as of the   day of      , 2000,
by and among Grafton State Bank, a Wisconsin banking corporation ("Escrow
Agent"), International Monetary Systems, Ltd., a Wisconsin corporation
("Company"), and J.E. Liss & Company, Inc., a Wisconsin corporation registered
as a broker-dealer under the Securities Exchange Act of 1934, as amended
("Managing Placement Agent").

                                   WITNESSETH:

         WHEREAS, the Company proposes to offer, offer for sale and sell to the
public up to 1,000,000 shares of its common stock, par value $0.0001 per share
("Common Stock"), at an initial offering price of $ per share ("Offering");

         WHEREAS, a registration statement on Form SB-2 with respect to the
Common Stock, including a form of prospectus, has been filed by the Company with
the Securities and Exchange Commission ("Commission") under the Securities Act
of 1933, as amended ("Securities Act"). One or more amendments to or changes in
such registration statement have been or may be so filed, and a final form of
prospectus will be filed with the Commission upon the effectiveness of such
registration statement. Such registration statement (including all exhibits
thereto), as amended at the time it becomes effective and at the time each
post-effective amendment thereto becomes effective, and the final prospectus
filed upon the effectiveness of such registration statement or post-effective
amendment (including any supplements to such final prospectus filed following
such effectiveness) are referred to herein, respectively, as the "Registration
Statement" and the "Prospectus";

         WHEREAS, the Managing Placement Agent and such other member firms of
the National Association of Securities Dealers, Inc. ("NASD") as may be
designated by the Managing Placement Agent, in its discretion, to participate in
the distribution of the Common Stock (the Managing Placement Agent and such
additional broker-dealers, if any, being hereinafter collectively referred to as
the "Selected Placement Agents") are entitled to receive selling commissions and
expense allowances in connection with the distribution of the Common Stock, as
set forth in a certain selling agreement between the Managing Placement Agent
and the Company, dated April , 2000 ("Managing Placement Agent Agreement"), a
copy of which is attached hereto as Exhibit A; and

         WHEREAS, the Managing Placement Agent Agreement, the Registration
Statement and the Prospectus provide that amounts tendered by investors in
payment of the subscription price for Common Stock, including checks, cash and
cash equivalents ("Subscription Proceeds"), shall be deposited and held in
escrow in a segregated account until such Subscription Proceeds are disbursed by
the Escrow Agent pursuant to this Agreement.

         WHEREAS, there is no minimum aggregate amount required to be sold in
the Offering, and all funds received from accepted subscribers may be disbursed
by the Escrow Agent and become immediately available to the Company for the
purposes described in the Prospectus under the caption "Use of Proceeds";
however, the parties hereto have agreed that, if subscriptions for at least
1,000 shares of Common Stock (or such lesser amount as may be agreed to in
writing by the parties hereto, in their discretion) are not accepted by the
Company and fully paid for on or before the Termination Date, the Offering will
terminate, and no Common Stock will be sold. "Termination Date" means November
30, 2000; and

         NOW, THEREFORE, in consideration of the mutual covenants set forth
herein and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto agree as follows:

         1. Escrow. From the date hereof through and including (i) the date of
the final disbursement of funds pursuant to this Agreement or (ii) termination
of the Offering pursuant to Section 12 of the Managing Placement Agent
Agreement, whichever later occurs, the Escrow Agent shall act as escrow agent
and shall receive and disburse all Subscription Proceeds and earnings, if any,
thereon in accordance with the terms of this Agreement. The Escrow Agent hereby
represents to the Company and to each Selected Placement Agent that it is a
"bank" as such term is defined by Section 3(a)(6) of the Securities Exchange Act
of 1934, as amended ("Exchange Act").

<PAGE>   2

         2.   Deposit Procedure.

         (a) The Escrow Agent shall establish an appropriate segregated account
("Escrow Account") designated as the "International Monetary Systems, Ltd.
Escrow Account," or with such other appropriate designation as shall be assigned
by the Escrow Agent and communicated to the Company and the Managing Placement
Agent. The Escrow Agent shall cause all Subscription Proceeds transmitted to it
by the Selected Placement Agents to be held in the Escrow Account. All checks
received by the Escrow Agent are to be held uncashed until required to be
submitted for collection pursuant to paragraph 2(b) of this Agreement.

         (b) All Subscription Proceeds received by the Selected Placement Agents
shall be delivered to the Escrow Agent, at 101 Falls Road, Grafton, Wisconsin
53024, by 12:00, noon, on the business day following receipt thereof by a
Selected Placement Agent, together with a schedule of such payments and the
subscriptions represented thereby. Provided that the Escrow Agent shall have
received with respect to each subscription for Common Stock (i) Facsimile Notice
(as defined herein) from the Company that a subscription has been received by
the Company and (ii) Subscription Proceeds in the amount required to pay in full
for such subscription, delivered by a Selected Placement Agent as aforesaid, the
Escrow Agent shall immediately commence the collection process (as applicable)
with respect to such Subscription Proceeds. Any payment item which is returned
to the Escrow Agent on its initial presentation for payment need not again be
presented for collection. The Facsimile Notice provided for in this paragraph
shall be given by the Company not more than five (5) days following receipt by
the Escrow Agent of such Subscription Proceeds and not less than two (2)
business days prior to any disbursement of Subscription Proceeds by the Escrow
Agent pursuant to this Agreement.

         (c) If a subscription is not accepted by the Company, the Company
shall, within five (5) days following its receipt from a Selected Placement
Agent of such subscription, provide the Escrow Agent with Facsimile Notice (as
defined herein) of the name of the rejected subscriber, the address of the
rejected subscriber, and the amount of Subscription Proceeds received from such
rejected subscriber and delivered to the Escrow Agent by a Selected Placement
Agent, as reported to the Company pursuant to the Managing Placement Agent
Agreement.
         (d) If the Escrow Agent is holding collected funds with respect to a
rejected subscription, the Escrow Agent shall promptly remit the full amount of
Subscription Proceeds received by a Selected Placement Agent and delivered to
the Escrow Agent, with interest thereon at its passbook rate for the period held
in escrow, to the rejected subscriber at the address provided by the Company. If
the Escrow Agent has presented the Subscription Proceeds of a rejected
subscriber for collection but has not yet collected funds, the Escrow Agent
shall, promptly upon collection of such funds, remit the full amount of
Subscription Proceeds received by a Selected Placement Agent and delivered to
the Escrow Agent, with interest thereon at its passbook rate for the period held
in escrow, to the rejected subscriber at the address provided by the Company. If
the Escrow Agent has not yet presented the Subscription Proceeds of a rejected
subscriber for collection, the Escrow Agent shall promptly return in full the
Subscription Proceeds received by a Selected Placement Agent and delivered to
the Escrow Agent in the form so received and delivered, with interest thereon at
its passbook rate for the period held in escrow, to the rejected subscriber at
the address provided by the Company.

         3. Investment of Escrow Funds. The Escrow Agent shall invest all funds
held in the Escrow Account (including earnings, if any, thereon) in United
States government securities or securities guaranteed by the United States,
certificates of deposit of banks located in the United States or any other
investment, provided, in each case, that such investment is permitted by Rule
15c2-4, promulgated by the Securities and Exchange Commission under the Exchange
Act ("Rule 15c2-4"), and NASD Notice to Members 84-7. Such investments shall be
made in a manner consistent with the requirement that the Subscription Proceeds
be available for delivery by the Escrow Agent at the times described herein. The
parties hereto recognize that there may be a forfeiture of interest in the event
of early withdrawal from an interest-bearing account of investment.

         4.   Initial Closing.

         (a) If the Escrow Agent shall (i) be holding in escrow collected funds
representing Subscription Proceeds in an amount equal to the full purchase price
of 1,000 shares of Common Stock (or such lesser amount as may be agreed to in
writing by the parties hereto) and (ii) have received from the Company and the
Managing

                                        2

<PAGE>   3

Placement Agent, on or before the Termination Date and the Initial Closing Date,
respectively, the Facsimile Notice (as defined herein) and Confirmation (as
defined herein) described in paragraph 4(b) hereof, then the Escrow Agent shall
disburse the collected funds then held in the Escrow Account (less fees of the
Escrow Agent as provided herein) to the Company and to the Managing Placement
Agent, as provided herein and subject to the provisions hereof, at the Initial
Closing. As used in this Agreement, the terms "Initial Closing" and "Initial
Closing Date" shall have the meanings ascribed to such terms in Section 4(g) of
the Managing Placement Agent Agreement; the Initial Closing shall be scheduled
as provided therein.

         (b) On or before the Termination Date, the Escrow Agent shall have
received Facsimile Notice (as defined herein) from the Company and the Managing
Placement Agent that all conditions precedent to the disbursement of
Subscription Proceeds on the Initial Closing Date (including without limitation
all of the conditions set forth in Section 9 of the Managing Placement Agent
Agreement) have been fully satisfied as required under the Prospectus, the
Managing Placement Agent Agreement, Rule 15c2-4 and/or NASD Notices to Members
84-64 and 84-7, specifically certifying that subscriptions for not less than
1,000 shares of Common Stock have been received and accepted by the Company on
or before the Termination Date; Confirmation (as defined herein) of such
Facsimile Notice shall be delivered to the Escrow Agent on or before the Initial
Closing Date, dated as of the Initial Closing Date.

         (c) Provided that the Escrow Agent shall have (i) received and be
holding in escrow collected Subscription Proceeds as required under paragraph
4(a) hereof, (ii) received the Facsimile Notice (as defined herein) required
under paragraph 4(b) hereof on or before the Termination Date and (ii) received
Confirmation (as defined herein) of the Facsimile Notice required under
paragraph 4(b) hereof on or before the Initial Closing Date, the Escrow Agent
shall, on the Initial Closing Date, disburse the collected funds then held in
the Escrow Account as follows: First, to the Escrow Agent in the amount of any
fees then due and payable to such Agent (which shall not exceed on the Initial
Closing Date the aggregate earnings, if any, on funds held in the Escrow
Account, determined as of the business day immediately preceding such Closing
Date); Second, to the Managing Placement Agent in an amount equal to the
aggregate selling commissions and expense allowances then due and payable to the
Selected Placement Agents pursuant to the Managing Placement Agent Agreement;
and Third, to the Company in the amount of any balance then remaining in the
Escrow Account.

         (d) If any of the conditions described in paragraphs 4(a) and 4(b)
hereof shall not have been fully satisfied at the close of business on the date
(Termination Date or Initial Closing Date) specified herein for such compliance,
the Escrow Agent shall promptly return all Subscription Proceeds directly to
subscribers, with interest thereon at its passbook rate for the period held in
escrow, and the escrow provided for herein shall thereupon terminate.

         5.   Additional Closings.

         (a) Subsequent to the Initial Closing Date, the collected funds then
held in the Escrow Account shall be disbursed by the Escrow Agent from time to
time, as provided in Section 4(g) of the Managing Placement Agent Agreement, at
one or more Additional Closings. As used herein, the terms "Additional Closing"
and "Additional Closing Date" shall have the meanings ascribed to such terms in
Section 4(g) of the Managing Placement Agent Agreement; Additional Closings
shall be scheduled as provided in such Agreement; provided, however, that no
Additional Closing shall occur less than seven (7) days nor more than thirty
(30) days following the immediately preceding Closing.

         (b) Prior to the disbursement of collected funds held in the Escrow
Account at any Additional Closing, the Escrow Agent shall have received
Facsimile Notice (as defined herein) from the Company and the Managing Placement
Agent that all conditions precedent to such disbursement by the Escrow Agent
(including without limitation all of the conditions set forth in Section 9 of
the Managing Placement Agent Agreement) have been fully satisfied as required
under the Prospectus, the Managing Placement Agent Agreement, Rule 15c2-4 and
NASD Notices to Members 84-64 and 84-7. The Facsimile Notice from the Company
and the Managing Placement Agent provided for in this paragraph 5(b) must be
received by the Escrow Agent not less than two (2) business days prior to such
Additional Closing Date; Confirmation (as defined herein) of such Facsimile
Notice shall be delivered to the Escrow Agent by the Company and the Managing
Placement Agent on or before such Additional Closing Date, dated as of such
Additional Closing Date.

                                        3

<PAGE>   4

         (c) Provided that the Facsimile Notice (as defined herein) required
under paragraph 5(b) hereof shall have been received by Escrow Agent not less
than two (2) business days prior to, and confirmed in writing on or before, each
Additional Closing Date, the Escrow Agent shall, on such Additional Closing
Date, disburse the collected funds then held in the Escrow Account as follows:
First, to the Escrow Agent in the amount of any fees then due and payable to
such Agent (which shall not exceed on any Additional Closing Date the aggregate
earnings, if any, on funds held in the Escrow Account, determined as of the
business day immediately preceding such Closing Date); Second, to the Managing
Placement Agent in an amount equal to the aggregate selling commissions and
expense allowances then due and payable to the Selected Placement Agents
pursuant to the Managing Placement Agent Agreement; and Third, to the Company in
the amount of any balance then remaining in the Escrow Account.

         6. Books and Records. The Escrow Agent shall maintain accurate records
of all transactions hereunder. Promptly upon the termination of escrow, or as
may reasonably be requested by the Company or the Managing Placement Agent prior
thereto, the Escrow Agent shall provide the Company and the Managing Placement
Agent with a complete copy of such records, certified by the Escrow Agent to be
a complete and accurate account of all such transactions. The authorized
representatives of the Company and the Managing Placement Agent shall also have
access to such books and records at all reasonable times during normal business
hours upon reasonable notice to the Escrow Agent.

         7. Escrow Agent Fees. As compensation for services performed by it
pursuant to this Agreement, the Escrow Agent shall be entitled to receive from
the Company the fees set forth on Schedule A hereto; such fees shall be deducted
from Escrow Income (as defined in such Schedule A), and the Company shall pay to
the Escrow Agent on demand any portion of such fees which remains unpaid
following the final Closing.

         8. Termination. This Agreement shall terminate on the final disposition
of the moneys and property held in escrow under and pursuant to the terms
hereof, provided that the rights of the Escrow Agent and the obligations of the
Company under paragraphs 7 and 9 shall survive the termination hereof.

         9.   General Provisions.

         (a) This Agreement expressly sets forth all the duties of the Escrow
Agent with respect to any and all matters pertinent hereto.

         (b) The Escrow Agent shall not be liable, except for its own negligence
or willful misconduct and, except with respect to claims based upon such
negligence or willful misconduct that are successfully asserted against the
Escrow Agent. The Company shall indemnify and hold harmless the Escrow Agent
(and any successor Escrow Agent) from and against any and all losses,
liabilities, claims, actions, damages and expenses, including reasonable
attorneys' fees and disbursements, arising out of and in connection with this
Agreement.

         (c) The Escrow Agent shall be entitled to rely upon any order,
judgment, certification, demand, notice, instrument or other writing delivered
to it hereunder without being required to determine the authenticity or the
correctness of any fact stated therein or the propriety or validity of the
service thereof. The Escrow Agent may act in reliance upon any instrument or
signature believed by it to be genuine and may assume that any person purporting
to give notice or advice, or to accept and acknowledge receipt, or to make any
statement or execute any documents in connection with the provisions of this
Agreement has been duly authorized to do so.

         (d) In the event that the Escrow Agent (i) shall be uncertain as to its
duties arising under this Agreement or (ii) shall receive instructions from the
Company or the Managing Placement Agent as to the funds held in the Escrow
Account which, in its opinion, are inconsistent with each other or are in any
conflict with any of the provisions of this Agreement, the Escrow Agent shall be
authorized to hold any and all Subscription Proceeds received by it, together
with any other amounts which shall accrue to or be deposited in the Escrow
Account, pending the settlement of any such controversy by final adjudication of
a court of competent jurisdiction, or the Escrow Agent may, at its option,
deposit such funds with the clerk of a court of competent jurisdiction, in an
appropriate proceeding to which all parties in interest are duly joined.

                                        4

<PAGE>   5

         (e) The Escrow Agent (and any successor escrow agent) may at any time
resign as such by delivering all amounts held in the Escrow Account to any
successor escrow agent designated by the Company in writing, or to any court of
competent jurisdiction, whereupon the Escrow Agent shall be discharged of and
from any and all further obligations arising in connection with this Agreement.
The resignation of the Escrow Agent will take effect (i) upon the appointment of
a successor (including a court of competent jurisdiction) or (ii) thirty (30)
days after the date of delivery of its written notice of resignation to the
Company and the Managing Placement Agent, whichever first occurs. If at such
time the Escrow Agent has not received a written designation of a successor
escrow agent, the Escrow Agent's sole responsibility thereafter shall be to
safekeep the funds held in the Escrow Account until receipt by the Escrow Agent
of a written designation by the Company of a successor escrow agent or a final
order of a court of competent jurisdiction.

         (f) The parties hereto hereby irrevocably submit to the jurisdiction of
any Wisconsin state court or federal court sitting in Wisconsin in any action or
proceeding arising out of or relating to this Agreement, and the parties hereby
irrevocably agree that all claims in respect of such action or proceeding shall
be heard and determined in such state or federal court. The parties to this
Agreement hereby consent to and grant to any such court jurisdiction over the
persons of such parties and over the subject matter of any such dispute and
agree that delivery or mailing of any process, instrument or other paper in
connection with any such action or proceeding in the manner provided in this
Agreement, or in such other manner as may be permitted by law, shall be valid
and sufficient service of such process, instrument or other paper.

         (g) This Agreement shall be binding upon and inure solely to the
benefit of the parties hereto and their respective successors and assigns, and
shall not be enforceable by or inure to the benefit of any third party. Except
as provided herein with respect to a resignation by the Escrow Agent, no party
hereto may assign any of its rights or obligations under this Agreement without
the prior written consent of the other parties hereto.

         (h) This Agreement may only be modified by a written instrument signed
by the parties hereto, and no waiver hereunder shall be effective unless in
writing signed by the party to be charged.

         (i) The Escrow Agent makes no representation as to the validity, value,
genuineness or the collectibility of any security or other document or
instrument held by or delivered to such Escrow Agent pursuant to the terms of
this Agreement.

         (j) For purposes hereof, "Facsimile Notice" shall mean the delivery by
telephone facsimile (FAX) of a notice, request, demand or other communication
provided for herein, and "Confirmation" shall mean the delivery by hand (via
commercial courier service or otherwise) or by first class mail, if and to the
extent required hereunder, of a manually-signed (if applicable) counterpart of
any such notice, demand or other communication. All Facsimile Notices and
Confirmations shall be deemed given when received and shall be telecopied and
delivered by hand, respectively, to the parties at the facsimile (FAX) telephone
numbers and addresses listed below, or to such other persons or facsimile
telephone numbers/addresses as the relevant party shall designate from time to
time in writing delivered by hand as aforesaid:

<TABLE>

<S>                                              <C>
     If to the Company:                          International Monetary Systems, Ltd.
                                                 Attention:  Donald F. Mardak
                                                 Facsimile Notice (FAX) Telephone Number: (262) 780-3655
                                                 Confirmation Address:   16901 West Glendale Drive
                                                                         New Berlin, Wisconsin  53151

     If to the Escrow Agent:                     Grafton State Bank
                                                 Escrow Department
                                                 Attention:  Dorothy Jochims
                                                 Facsimile Notice (FAX) Telephone Number: (414) 377-6697
                                                 Confirmation Address:   101 Falls Road
                                                                         Grafton, Wisconsin  53024
</TABLE>

                                        5
<PAGE>   6

<TABLE>

<S>                                              <C>
     If to the Managing Placement Agent:         J.E. Liss & Company, Inc.
                                                 Attention:  Jerome E. Liss
                                                 Facsimile Notice (FAX) Telephone Number: (414) 225-3168
                                                 Confirmation Address:  424 East Wisconsin Avenue
                                                                        Milwaukee, Wisconsin  53202

</TABLE>

         (k) This Agreement shall be construed in accordance with and governed
by the internal law of the State of Wisconsin.

         (l) This Agreement may be executed in several counterparts, each of
which shall be deemed an original, and all of which together shall constitute
one and the same instrument.

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

                                       International Monetary Systems, Ltd.

                                  By:
                                     ----------------------------------------
                                           Donald F. Mardak, President

                                           J.E. Liss & Company, Inc.

                                  By:
                                      ----------------------------------------
                                             Jerome E. Liss, President

                                                Grafton State Bank

                                  By:
                                      ----------------------------------------
                                            Thomas J. Sheehan, President

                                        6

<PAGE>   7

                                ESCROW AGREEMENT

                                   Schedule A

     This Schedule A to the Escrow Agreement, dated as of             , 2000, by
and among Grafton State Bank ("Escrow Agent"), International Monetary Systems,
Ltd. ("Company") and J.E. Liss & Company, Inc. ("Managing Placement Agent"),
sets forth the compensation arrangements referred to in paragraph 7 of such
Agreement, as follows:

     For services performed by it pursuant to the Escrow Agreement, the Escrow
Agent shall be entitled to receive from the Company fees in the amounts of
$2,500, payable upon the execution hereof, plus $250 per Closing and $10 per
subscriber (whether accepted or rejected); provided, however, that the Escrow
Agent shall receive, in the aggregate, not less than $3,000 in consideration of
its services rendered pursuant to the terms of the Escrow Agreement. Except for
the initial payment due upon the execution of this Agreement, such fees shall be
(a) due and payable on the Initial Closing Date and each Additional Closing Date
until paid in full and (b) payable, through the final Closing, only from and to
the extent of available Escrow Income; provided that, if payments made from
available Escrow Income, made at the Initial Closing and one or more Additional
Closings are not, in the aggregate, sufficient to pay such fees in full, the
Company shall pay on demand any such fees which remain unpaid following the
final Closing. "Escrow Income" is the amount of interest and/or dividends, if
any, which shall have been (x) paid on or in respect of the Escrow Account
(representing earnings on funds held therein) and (y) deposited in such Account
as collected funds on or prior to the business day immediately preceding such
Initial Closing Date or Additional Closing Date, as the case may be. If and to
the extent that Escrow Income exceeds the aggregate fees payable to the Escrow
Agent hereunder, such excess shall be paid to the Company at the Initial Closing
or Additional Closing(s), as the case may be. The foregoing notwithstanding, if
the Offering is terminated prior to the Initial Closing, pursuant to the
provisions of Section 12 of the Managing Placement Agent Agreement or otherwise,
the Escrow Agent shall be entitled to receive fees in the aggregate amount of
$3,500, and no more, payable by the Company on demand. All terms used herein
shall have the same meanings ascribed to them in the Escrow Agreement of which
this Schedule is a part.

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