Document:

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                                                                    EXHIBIT 10.8

                                      LEASE

                                     Between

                          PINE STREET ASSOCIATES, LLC,

                                                     Landlord

                                       and

                      INTEGRATED ALARM SERVICES GROUP, INC.

                                                     Tenant

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                                      INDEX

<TABLE>
<S>                                                                                                             <C>
ARTICLE I Leased Premises.........................................................................................1

ARTICLE II Term of Lease..........................................................................................2

ARTICLE III Rent..................................................................................................3

ARTICLE IV Use and Care of Leased Premises........................................................................4

ARTICLE V Utilities and Cleaning..................................................................................5

ARTICLE VI Repairs................................................................................................5

ARTICLE VII Alterations...........................................................................................6

ARTICLE VIII Landlord's Right to Access...........................................................................7

ARTICLE IX Signs..................................................................................................7

ARTICLE X Insurance, Indemnity and Waiver of Subrogation..........................................................8

ARTICLE XI Nonliability for Certain Damages......................................................................10

ARTICLE XII Damages by Casualty..................................................................................11

ARTICLE XIII Eminent Domain......................................................................................13

ARTICLE XIV Default..............................................................................................14

ARTICLE XV Security Deposit......................................................................................15

ARTICLE XVI Miscellaneous........................................................................................16

EXHIBIT "A"LEASED PREMISES.......................................................................................22

EXHIBIT "B" Design and Construction StandardsResponsibilities of Landlord........................................24

EXHIBIT "C"TENANT'S WORK.........................................................................................25
</TABLE>

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                                      LEASE

         This Agreement, made on this 15th day of October, 2002, by and between
PINE STREET ASSOCIATES, LLC, a New York limited liability company, having its
main office at Capital Center, 99 Pine Street, Albany, New York 12207,
(hereinafter referred to as "Landlord"), and Integrated Alarm Services Group,
Inc., having an office and place of business at 99 Pine Street, Albany, New York
12207 (hereinafter referred to as the "Tenant").

                              W I T N E S S E T H :

         In consideration of the mutual terms, covenants and conditions set
forth herein, the parties agree as follows:

                                    ARTICLE I

                                 Leased Premises

         Section 1.1 Landlord, in consideration of the rents to be paid and the
covenants and agreements to be performed by Tenant:

         (a) Leases to Tenant, and Tenant leases from Landlord the premises
described on Exhibit "A" attached hereto and made a part hereof ("Leased
Premises"), in the buildings located at 99 Pine Street in the City of Albany,
County of Albany and State of New York (hereinafter referred to as the "Capital
Center"), consisting of approximately 4520 square feet of space.

         (b) During the term of the Lease, Tenant shall have the non-exclusive
right in common with other tenants of the Capital Center (and their respective
employees, licensees, customers and invitees) to use common facilities as may be
designated from time to time by Landlord, subject to the provisions of this
Lease, reserving until Landlord the unrestricted right to construct, operate,
maintain, repair, replace or remove such utility pipes, electrical, telephone,
computer or other lines or other facilities over, upon, under or through the
Leased Premises or common areas as may be reasonably necessary for servicing the
other portions of the Capital Center.

<PAGE>

                                   ARTICLE II

                                  Term of Lease

         Section 2.1 The term of this Lease shall be for a period of one (1)
year and commence on the earlier of October 15, 2002 or the date Tenant occupies
the Leased Premises and commences using the same for business purposes (the
"Lease Commencement Date"), and shall end on October 14, 2003 (the "Expiration
Date").
         Section 2.2 Tenant shall have access to the Leased Premises on or
before the Lease Commencement Date for the purpose of installing Tenant's
leasehold improvements and installing its fixtures and equipment provided that
Tenant furnishes to Landlord satisfactory certificates of insurance from such
companies and in such form and amounts as shall be approved by Landlord, whose
approval will not be unreasonably withheld from Tenant. Such certificates of
insurance shall include, but not be limited to, workers compensation insurance
covering all persons employed by Tenant in and about the Leased Premises; public
liability insurance and property damage insurance; and Tenant shall carry
insurance against fire, theft and such other risks as are from time to time
included in a standard-extended coverage insurance for the full insurable value
of all improvements provided by Tenant.

                                       2
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         Any insurance policies required to be carried by this section shall
name Landlord as an additional insured and shall have provision for at least ten
(10) days' notice to Landlord of cancellation. At least ten (10) days before the
expiration of such policy, Tenant will supply Landlord with a substitute
therefore with evidence of payment of the premiums thereof.

         Landlord shall perform the work required of Landlord as outlined in
Exhibit "B" annexed hereto. All work other than that to be prepared by Landlord
in order to ready the Leased Premises for Tenant's occupancy shall be prepared
by Tenant. Tenant shall perform its work in a manner that does not interfere
with Landlord's construction work and in accordance with the standards set forth
in Exhibit "C".

         Failure of Landlord to deliver actual possession of said Leased
Premises at the time and in the condition herein provided, shall postpone the
Lease Commencement Date of this Lease and extend the date of the expiration
thereof for a period of time equal to that which shall have elapsed between the
Lease Commencement Date and the date on which the Leased Premises are delivered
to Tenant. Landlord shall have no liability for failure to deliver actual
possession on the Lease Commencement Date set forth herein.

                                   ARTICLE III

                                      Rent

         Section 3.1 Tenant agrees to pay Landlord, during each year of the term
aforesaid, Annual Rent of Fifty-One Thousand Nine Hundred Thirty Six Dollars
($51,936.00) per year, payable in equal monthly installments of Four Thousand
Three Hundred Twenty Eight Dollars ($4,328.00) each, on the first day of each
month during that term.

                                       3
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         Section 3.2 Tenant shall pay such Annual Rent without deduction,
set-off, prior notice, or demand, in advance on the first day of each month,
commencing with the Lease Commencement Date, and continuing during the Lease
term. Minimum monthly rent for any partial month shall be prorated. All rent
shall be paid to Landlord at the address to which notices to Landlord are given.

         Section 3.3 Tenant shall pay Landlord a late charge of ten percent
(10%) of any installment of rent or additional rent which is not paid on the due
date thereof. In the event Tenant fails or refuses to pay rent or any additional
charge hereunder and Landlord institutes suit for the collection of same, Tenant
agrees to reimburse Landlord for all reasonable expenses incurred by Landlord in
connection therewith including but not limited to attorneys' fees.

                                   ARTICLE IV

                         Use and Care of Leased Premises

         Section 4.1 Tenant shall use the Leased Premises for the operation of
Tenant's lawful business purposes. No other use or purpose shall be permitted
without Landlord's written consent. Tenant shall not at any time leave the
Leased Premises vacant, but shall in good faith continually throughout the term
of this Lease conduct and carry on in the Leased Premises the type of business
for which the Leased Premises are leased. Tenant shall operate its business in
an efficient, first-class and reputable manner.

         Section 4.2 Tenant shall not occupy or permit or suffer the Leased
Premises to be occupied, for any business or purpose deemed disreputable or
extra-hazardous on account of fire, under penalty of damages and forfeiture, and
in the event of a breach thereof, the term herein shall immediately cease and
terminate at the option of Landlord as if it were the expiration of the original
term.

                                       4
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                                    ARTICLE V

                             Utilities and Cleaning

         Section 5.1 Landlord shall provide and pay for electricity, certain
minimal cleaning services as are provided to all tenants of the Capital Center
and air conditioning and heat for Tenant, without cost to Tenant. Landlord shall
provide and maintain the necessary wiring, ducts and conduits in order to bring
electricity, heat, telephone service and other utilities to the Leased Premises.
Tenant shall pay for its own telephone service hook-ups in the Leased Premises.
Landlord shall not be liable to Tenant for any interruption whatsoever regarding
any utility services for any reason.

                                   ARTICLE VI

                                     Repairs

         Section 6.1 Landlord shall keep and maintain the roof and structural
portions of the Leased Premises except any damage thereto caused by any act or
negligence of Tenant, its employees, agents, invitees, subtenants, licensees,
assignees, or contractors, in which event such damage shall be promptly repaired
by Tenant. Other than as herein provided, Landlord shall not be responsible to
maintain or make any improvements or repairs of any kind, in or upon the Leased
Premises.

         Tenant shall keep and maintain in good order, condition and repair
(which repair shall mean replace if necessary) the Leased Premises and every
part thereof, except as hereinbefore provided, including without limitation, the
exterior and interior portions of all doors, door checks, security gates,
windows, glass, fixtures, floors and ceilings, including compliance with the
applicable building codes relative to fire extinguishers.

         If Tenant refuses or neglects to repair property as required above,
Landlord may make such repairs without liability to Tenant for any loss or
damage to any of Tenant's property by reason thereof, and upon completion
thereof, Tenant shall pay Landlord, as additional rent, the cost of such repairs
plus fifteen percent (15%) for overhead and supervision upon presentation of a
bill therefore.

                                       5
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                                   ARTICLE VII

                                   Alterations

         Section 7.1 Tenant shall not make any alterations, additions or
improvements to the Leased Premises and fixtures without the prior written
consent of Landlord. All permitted alterations, additions and improvements which
may be made and fixtures which may be installed by either party upon the Leased
Premises shall remain upon and be surrendered with the Leased Premises and
become the property of Landlord at the termination of this Lease, unless
Landlord requests their removal in which event Tenant shall remove the same and
restore the Leased Premises to its original condition at Tenant's expense.

         Section 7.2 All construction work done by Tenant within the Leased
Premises shall be performed in a good and workmanlike manner, in compliance with
all governmental requirements, and in such manner as to cause a minimum of
interference with other construction in progress and with the transaction of
business by other tenants leasing any portion of the Building. Tenant agrees to
indemnify Landlord, and hold Landlord harmless against any loss, liability or
damage resulting from such work, and Tenant shall, if requested by Landlord,
furnish performance and payment bonds or other security satisfactory to Landlord
against any such loss, liability or damage.

                                  ARTICLE VIII

                           Landlord's Right to Access

         Section 8.1 Landlord shall have the right to enter upon the Leased
Premises at any time for the purpose of inspecting the same, or of making
repairs, alterations, or additions to adjacent premises, or of showing the
Leased Premises to prospective purchasers, lessees or lenders.

                                       6
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                                   ARTICLE IX

                                      Signs

         Section 9.1 Tenant shall not, without Landlord's prior written consent,
erect or install any signs, window or door letterings, placards, decorations or
advertising media of any type which can be viewed from the exterior of the
Leased Premises or within the Leased Premises. All signs, lettering, placards,
decorations and advertising media shall conform in all respects to the sign
criteria established by Landlord from time to time in the exercise of its sole
discretion, and shall be subject to the prior written approval of Landlord as to
construction, method of attachment, size, shape, height, lighting, color and
general appearance. All signs shall be kept in good condition and in proper
operating order at all times.

         Section 9.2 Tenant acknowledges that the Capital Center of which the
Leased Premises are a part are situated within a Registered Historic District.
Any signs allowed under this Article shall in all respects comply with all local
laws and shall not be erected until such time as Tenant has also obtained all
local approval as well as approval of the New York State Historical Preservation
Office.

                                       7
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                                    ARTICLE X

                 Insurance, Indemnity and Waiver of Subrogation

         Section 10.1 Tenant at its own expense shall maintain public liability
insurance insuring Tenant and Landlord with minimum coverage as follows:

         Property and Liability Damage:            $1,000,000.00 per occurrence

         Tenant, at its own expense, shall maintain plate glass insurance.

         Tenant shall provide Landlord with a certificate of insurance from an
insurance company qualified to do business in the State of New York which is
reasonably acceptable to Landlord as evidencing the existence of the foregoing
insurance.

         Landlord shall have the right from time to time (but not more often
than annually) to require that Tenant increase or otherwise modify the insurance
coverage referred to above so as to cause said coverage to be consistent with
the then current real estate industry standards in the City of Albany, New York.

         Landlord shall require all other tenants in the Capital Center of which
the Leased Premises are a part to maintain coverage in amounts similar to
Tenant's.

         Notwithstanding any terms of this Lease to the contrary, Tenant shall
pay the cost of any increase in Landlord's insurance costs that the insurance
carrier of Landlord attributes to the presence of Tenant upon the Leased
Premises or to the transaction of Tenant's business activities thereon.

         Tenant agrees throughout the term of the Lease to maintain insurance
against loss or damages by fire, theft and such other risks and hazards as are
insurable under present and future standard forms of fire and extended coverage
insurance policies, to the personal property, furniture, furnishings and
fixtures belonging to Tenant located in the Leased Premises, for the actual cash
value thereof less depreciation, with the New York standard co-insurance clauses
for not less than eighty percent (80%) of such actual cash value. Upon the
occurrence of any casualty insured against, Tenant shall have full authority to,
and shall take all necessary measures to negotiate, compromise or adjust any
loss under Tenant's policy.

                                       8
<PAGE>

         All fire, theft and extended coverage insurance maintained by Landlord
and Tenant on the Capital Center and the Leased Premises, the property therein,
and the building and its appurtenances shall include a waiver by the insurer of
all right of recovery against Landlord or Tenant in connection with any loss or
damage by theft, fire, or peril included within fire and extended coverage
insurance and neither party shall be liable to the other for loss or damage
resulting from such included claims with respect to any such loss to the extent
of the insurance proceeds paid with respect thereto.

         Section 10.2 The Landlord shall not be liable for any damages to or
loss of, including loss due to theft, any property, occurring in the Leased
Premises or any part thereof, and Tenant agrees to hold Landlord harmless from
any claims for damages, except where such damage or injury is the result of the
gross negligence or willful misconduct of Landlord or its employees. Tenant
shall, at Tenant's sole expense, insure Tenant's property against theft and such
policy shall include a waiver by the insurer of all right of recovery against
Landlord in connection with any loss or damage by such theft. Landlord, assumes
no responsibility or liability for theft of Tenant's property caused by a
failure or breach of any security system either currently installed or installed
during the term of the Lease.

         Section 10.3 Any insurance policies required to be carried by this
section shall name Landlord as an additional insured and shall have provision
for at least ten (10) days' notice to Landlord of cancellation. At least ten
(10) days before the expiration of such policy, Tenant will supply Landlord with
a substitute therefore with evidence of payment of the premiums thereof.

                                       9
<PAGE>

                                   ARTICLE XI

                        Nonliability for Certain Damages

         Section 11.1 Landlord and Landlord's agents and employees shall not be
liable to Tenant for any injury to person or damage to property caused by the
Leased Premises, or other portions of the Capital Center owned by Landlord of
which the Leased Premises is a part, becoming out of repair or by the defect or
failure of any structural element of the Capital Center or of any equipment,
pipes, wiring, or broken glass, or by the backing up of drains, or by gas,
water, steam, electricity, or oil leaking, escaping, or flowing into the Leased
Premises except where due to Landlord's willful failure to make repairs required
to be made hereunder, after the expiration of a reasonable time after written
notice to Landlord of the need for such repairs, nor shall Landlord be liable to
Tenant for any loss or damage that may be occasioned by or through the acts or
omissions of other tenants of Landlord or of any other persons whomsoever,
excepting only duly authorized employees and agents of Landlord.

         Section 11.2 Tenant shall indemnify, defend and hold harmless Landlord,
its agents and employees from and against any and all liability (statutory or
otherwise), damages, claims, suits, demands, judgments, costs, interest and
expense (including but not limited to, attorneys' fees and disbursements both at
trial and appellate levels) arising, directly or indirectly, from any injury to,
or death of, any person or persons or damage to property (including loss of use
thereof) related to (a) Tenant's use of the Leased Premises or conduct of
business therein, (b) any work or thing whatsoever done, or any condition
created (other than by Landlord, its employees, agents or contractors) by or on
behalf of Tenant in or about the Leased Premises, including during the period of
time, if any, prior to the Lease Commencement Date, that Tenant may have been
given access to the Leased Premises for the purposes of doing any work or making
any installations, (c) any condition of the Leased Premises due to or resulting
from any default by Tenant in the performance of Tenant's obligations under this
Lease or (d) any act, omission or negligence of Tenant or its agents,
contractors, employees, subtenants, licensees or invitees. In case any action or
proceeding is brought against Landlord by reason of any one or more thereof,
Tenant shall pay all costs, attorneys' fees, expenses and liabilities resulting
therefrom and shall defend such action or proceeding if Landlord shall so
request, at Tenant's expense, by counsel reasonably satisfactory to Landlord.

                                       10
<PAGE>

                                   ARTICLE XII

                               Damages by Casualty

         Section 12.1 Tenant shall give immediate written notice to Landlord of
any damage caused by the Leased Premises by fire or other casualty.

         Section 12.2 In the event that the Leased Premises shall be damaged or
destroyed by fire or other casualty insurable under standard fire and extended
coverage insurance and Landlord does not elect to terminate this Lease (as
hereinafter provided), Landlord shall proceed with reasonable diligence and at
its sole cost and expense to rebuild and repair the Leased Premises, to the
extent of the insurance proceeds available therefore. In the event (a) the
Capital Center in which the Leased Premises are located shall be destroyed or
substantially damaged by a casualty not covered by Landlord's insurance, or (b)
such Capital Center shall be destroyed or rendered untenantable to an extent in
excess of fifty percent (50%) of the first floor area by a casualty covered by
Landlord's insurance, or (c) the holder of a mortgage, deed of trust or other
lien on the Capital Center at the time of the casualty elects, pursuant to such
mortgage, deed of trust, or other lien, to require the use of all or part of
Landlord's insurance proceeds in satisfaction of all or part of the indebtedness
secured by the mortgage, deed of trust, or other lien, then Landlord may elect
either to terminate this Lease or to proceed to rebuild and repair the Leased
Premises. Landlord shall give written notice to Tenant of such election within
sixty (60) days after the occurrence of such casualty and if it elects to
rebuild and repair the Leased Premises, shall proceed to do so with reasonable
diligence and at its sole cost and expense.

                                       11
<PAGE>

         Section 12.3 Landlord's obligations to rebuild and repair under this
Article XII shall in any event be limited to restoring the Leased Premises to
substantially the condition in which the same existed prior to such casualty,
exclusive of any alterations, additions, improvements, fixtures, and equipment
installed by Tenant, or Landlord's Work, if any, to substantially the same
condition in which the same existed prior to the casualty, as the case may be.
Landlord further agrees that promptly after completion of such work by it,
Landlord will proceed or Landlord will, at its option, cause Tenant to proceed
with reasonable diligence and at Tenant's sole cost and expense to restore,
repair and replace all alterations, additions, improvements, fixtures, signs and
equipment installed by Tenant.

         Section 12.4 Tenant agrees that during any period of reconstruction or
repair of the Leased Premises it will continue the operation of its business
within the Leased Premises to the extent practicable. During the period from the
occurrence of the casualty until Landlord's repairs are completed, the Minimum
Annual Rental shall be reduced to such extent as may be fair and reasonable
under the circumstances; however, there shall be no abatement of additional rent
or other charges provided for herein.

                                       12
<PAGE>

         In the event that Landlord is required to make structural repairs to
the Leased Premises for damages to the Leased Premises not caused by Tenant's
actions and such repairs result in a reduction of the amount of space available
to Tenant under this Lease, then the rent for the Leased Premises will abate by
an amount equal to the percentage of area which is unavailable for use by Tenant
for any day in which the Leased Premises are not available.

                                  ARTICLE XIII

                                 Eminent Domain

         Section 13.1 Should the Capital Center of which the Leased Premises
forms a part, or any part thereof, be condemned for public or quasi-public use
or purpose, then in that event, upon the taking of the same for such public or
quasi-public use or purpose, this Lease, at the option of Landlord, shall
terminate on the date when the same shall be taken and the rent shall be
apportioned as of said date. No part of any award shall belong to Tenant. In the
event that Landlord does not terminate this Lease following a condemnation, then
Landlord shall make all necessary repairs or alterations to the Capital Center
so as to constitute the remaining premises a complete architectural unit to the
extent practicable under the circumstances; provided, that Landlord shall not be
obligated to undertake any such repairs or alterations if the estimated cost
thereof will exceed the amount of the award.

                                       13
<PAGE>

                                   ARTICLE XIV

                                     Default

         Section 14.1 The occurrence of any of the following shall constitute
default by Tenant:

         (a) Failure to pay rent when due.

         (b) Abandonment, desertion or vacation of the Leased Premises.

         (c) Failure to perform other provisions of this Lease, if the failure
to perform is not cured within fifteen (15) days after written notice has been
given to Tenant. If the default cannot reasonably be cured within fifteen (15)
days, Tenant shall not be in default of this Lease if Tenant commences to cure
the default within the fifteen (15) day period and diligently and in good faith
continues to cure the default.

         (d) If proceedings are commenced by or against Tenant in any Court
under a Bankruptcy Act or for the appointment of a trustee or receiver either
before or after the Commencement Date.

         Section 14.2 If any default be made by Tenant, Landlord may, at its
option, (a) declare the entire sum of this Lease due and payable; (b) terminate
this Lease without further notice to Tenant, and upon such termination Tenant
shall quit and surrender the Leased Premises to Landlord, but such termination
shall not affect Landlord's right to recover damages or exercise any other right
herein provided; or (c) re-enter the Leased Premises by force, summary
proceedings or otherwise, and remove all persons therefrom, without being liable
to prosecution therefor, and Landlord will provide Tenant with two (2) days'
written notice of Landlord's intention to re-enter excepting cases of
abandonment of the Leased Premises, and Tenant shall pay at the same time as the
rent becomes payable under the terms hereof a sum equivalent to the rent
reserved herein, and Landlord may rent the Leased Premises on behalf of Tenant,
reserving the right to rent the Leased Premises for a longer period of time than
fixed in the original Lease without releasing the original Tenant from any
liability, applying any moneys collected, first to the expense of resuming or
obtaining possession, second to restoring the Leased Premises to a rentable
condition, and then to the payment of the rent and all other charges due and to
grow due to Landlord, any surplus to be paid to Tenant, who shall remain liable
for any deficiency.

                                       14
<PAGE>

         Landlord will provide Tenant with two (2) days' written notice of
intention to re-enter or of instituting legal proceedings to that end. Tenant
waives and will waive all right to trial by jury in any summary proceeding
instituted by Landlord against Tenant with respect to the leased property.
Tenant waives all rights to redeem under Section 761 of the New York Real
Property Actions and Proceedings Law. Tenant waives all rights to assert any
set-offs or counterclaims in any summary proceeding instituted by Landlord
against Tenant with respect to the leased property, it being the intention of
the parties that any such set-offs or counterclaims be adjudicated in a separate
action.

         Landlord shall be entitled to reasonable attorneys' fees in the event
Landlord shall retain an attorney to enforce the provisions of this Lease, and
if suit be brought to enforce the provisions of this Lease or to recover
possession of the Leased Premises or for recovery of rent or additional rent,
Landlord shall be entitled to reasonable attorneys' fees at both the trial and
appellate levels.

                                   ARTICLE XV

                                Security Deposit

         Section 15.1 There shall be no security deposit required.

                                       15
<PAGE>

                                   ARTICLE XVI

                                  Miscellaneous

         Section 16.1 At the expiration of this Lease, Tenant shall surrender
the Leased Premises in the same condition as it was in upon delivery of
possession thereto under this Lease, reasonable wear and tear excepted, and
shall deliver all keys and combinations to locks to Landlord. Before
surrendering said Leased Premises, Tenant shall remove all its personal
property, and if requested to do so by Landlord, remove all trade fixtures,
alterations, additions and decorations and shall repair any damage caused
thereby. Tenant's obligations to perform this provision shall survive the end of
the term of this Lease. If Tenant fails to remove its property upon the
expiration of this Lease, the said property shall be deemed abandoned and shall
become the property of Landlord.

         Section 16.2 Any holding over after the expiration of the term shall be
construed to be a tenancy from month to month at the Annual Rent specified by
Sections 3.1 (prorated on a monthly basis) and shall otherwise be on the terms
herein specified so far as applicable.

         Section 16.3 Failure of Landlord to insist upon the strict performance
of any provision or to exercise any option shall not be construed as a waiver
for the future of any such provision or option. The receipt by Landlord of rent
with knowledge of the breach of any provision of this Lease shall not be deemed
a waiver of such breach. No provision of this Lease shall be deemed to have been
waived unless such waiver be in writing signed by Landlord. No payment by Tenant
or receipt by Landlord of a lesser amount than the monthly rent shall be deemed
to be other than on account of the earliest rent then unpaid nor shall any
endorsement or statement on any check or any letter accompanying any such check
or payment as rent be deemed an accord and satisfaction. Landlord may accept
such check or payment as rent without prejudice to Landlord's right to recover
the balance of such rent or pursue any other remedy provided in this Lease.

                                       16
<PAGE>

         Section 16.4 Any notice, demand, request or other instrument which may
be or is required to be given under this Lease, shall be delivered in person or
sent by United States certified or registered mail, postage prepaid, and shall
be addressed (a) if to Landlord, at the address as hereinabove given; and (b) if
to Tenant, at the Leased Premises. Either party may designate such other address
as shall be given by written notice. In the case of notices sent through the
United States mails pursuant to this Section, each such notice shall be deemed
as given on the day that it is placed in the mail.

         Section 16.5 (a) This Lease is and shall be subordinate to any mortgage
now of record or hereafter recorded affecting the Leased Premises or the Capital
Center, other improvements and land of which the Leased Premises are a part,
including but not limited to any construction loan mortgage and any advances
made thereunder and any and all documents required as additional security for
said loan to be executed in connection therewith. Such subordination is
effective without any further act of Tenant. Tenant shall from time to time on
request from Landlord execute and deliver any documents or instruments that may
be required by a lender to effectuate any subordination as required in
connection with said mortgage loan including, but not limited to, any assignment
of rents and/or this Lease as may be required by any mortgagee.

         (b) Tenant agrees from time to time, but no more than two times
annually, upon not less than fifteen (15) days prior written request by
Landlord, to execute, acknowledge and deliver to Landlord a statement in writing
certifying that this Lease is unmodified and in full force and effect and that
Tenant has no defenses, offsets or counterclaims against its obligations to pay
the Rent provided for in Article III and any other rent and charges and to
perform its other covenants under this Lease (or, if there have been any
modifications, that the same is in full force and effect as modified and stating
the modifications and, if there are any defenses, offsets, or counterclaims,
setting them forth in reasonable detail), and the dates to which the rent
provided for in Article III and any other rent and charges have been paid. Any
such statement delivered pursuant to this Section may be relied upon by any
prospective purchaser or mortgagee of the Leased Premises or of the Capital
Center or any prospective assignee of any such mortgage.

                                       17
<PAGE>

         (c) No holder of a mortgage shall be liable either as mortgagee or as
assignee, to perform, or be liable in damages for failure to perform, any of the
obligations of Landlord unless and until such holder shall have acquired
indefeasible title to the Capital Center and the Leased Premises.

         (d) No assignment or sublease by Tenant of this Lease and no agreement
to make or accept any surrender, termination or cancellation of this Lease and
no agreement to modify so as to reduce the rent, change the Lease Term, or
otherwise materially change the rights of Landlord under this Lease or to
relieve Tenant of any obligations or liability under this Lease, shall be valid
unless consented to by Landlord's mortgagees of record, if any. No rent provided
for in Article III, additional rent, profit rent or any other charge shall be
paid more than ten (10) days prior to the due date thereof and payments made in
violation of this provision shall (except to the extent that such payments are
actually received by a mortgagee) be a nullity as against such mortgagee and
Tenant shall be liable for the amount of such payments to such mortgagee. No act
or failure to act on the part of Landlord which would entitle Tenant under the
terms of this Lease, or by Law, to be relieved of Tenant's obligations hereunder
or to terminate this Lease, shall result in a release or termination of such
obligations or a termination of this Lease unless (i) Tenant shall have first
given written notice of Landlord's act or failure to act to Landlord's
mortgagees of record, if any, specifying the act or failure to act on the part
of Landlord which could or would give basis to Tenant's rights; and (ii) such
mortgagees, after receipt of such notice, have failed or refused to correct or
cure the condition complained in this Section shall be deemed to impose any
obligation on any such mortgagees to correct or cure any such condition.
"Reasonable Time" as used above means and includes a reasonable time to obtain
possession of the mortgaged property if the mortgagee elects to do so and a
reasonable time to correct or cure the condition if such condition is determined
to exist.

                                       18
<PAGE>

         Section 16.6 Tenant shall promptly execute and comply with all
statutes, ordinances, rules, orders, regulations, requirements and assessments
of the Federal, State and Local Governments and of any and all of their
Departments and Bureaus applicable to the Leased Premises, for the correction,
prevention, and abatement of nuisances or other grievances, in, upon or
connected with the Leased Premises during said term; and shall also promptly
comply with and execute all rules, orders and regulations of the New York Board
of Fire Underwriters or any other similar body, at Tenant's own cost and
expense.

         Section 16.7 Tenant shall comply with all reasonable "Rules and
Regulations" as the same shall be promulgated by Landlord from time to time as
Landlord deems necessary to safeguard the Capital Center, its tenants, the
reputation of the Capital Center as a first class office building, or for any
other reasonable purpose.

         Section 16.8 Tenant shall not assign or sublet this Lease without
Landlord's prior written consent.

                                       19
<PAGE>

         Section 16.9 Tenant shall not permit to be created nor to remain
undischarged any lien, encumbrance, or charge arising out of any work of any
contractor, mechanic, laborer, or materialman which might be or become a lien or
encumbrance or charge upon the Leased Premises and Tenant shall not suffer any
other matter or thing whereby the estate, right and interest of Landlord in the
Leased Premises might be impaired. If any lien or notice of lien on account of
an alleged debt of Tenant or any notice of contract by a party engaged by Tenant
or Tenant's contractor to work in the Leased Premises shall be filed against the
Leased Premises, Tenant shall, within twenty (20) days after notice of filing
thereof, cause the same to be discharged of record by payment, deposit, bond,
order of a court of competent jurisdiction or otherwise. If Tenant shall fail to
cause such lien or notice of lien to be discharged within the period provided,
then Landlord, in addition to any other rights or remedies, may, but shall not
be obligated to, discharge the same by either paying the amounts claimed to be
due or by procuring the discharge of such lien by deposit or by bonding
proceedings; and in any such event, Landlord shall be entitled, if Landlord so
elects, to defend any prosecution of an action for foreclosure of such lien by
the lienor or to compel the prosecution of any action for the foreclosure of
such lien by the lienor and to pay the amount of the judgment in favor of the
lienor with interest, costs, and allowances. Any amount paid by Landlord and all
costs and expenses, including attorney fees, incurred by Landlord in connection
therewith, together with interest thereon at the maximum legal rate from the
respective dates of Landlord's making of the payment or incurring of the cost
and expense shall be paid by Tenant to Landlord as additional rent.

         Section 16.10 If any provision of this Lease or application thereof to
any person or circumstance shall to any extent be invalid, the remainder of this
Lease or the application of such provision to persons or circumstances other
than those as to which it is held invalid shall not be affected thereby and each
provision of this Lease shall be valid and enforced to the fullest extent
permitted by law.

                                       20
<PAGE>

         Section 16.11 All provisions herein shall be binding upon and shall
inure to the benefit of the parties, their legal representatives, successors and
assigns. In the event of any sale of the land, building or this Lease, or of a
lease of the Capital Center, Landlord shall be entirely relieved of all
obligations hereunder.

         Section 16.12 This Lease and the exhibits attached set forth the entire
agreement between the parties. Any prior conversations or writings are merged
herein and extinguished. No subsequent amendment to this Lease shall be binding
upon Landlord or Tenant unless reduced to writing and signed.

         Section 16.13 This Agreement shall be governed by the laws of the State
of New York.

Landlord:                         PINE STREET ASSOCIATES, LLC

Dated:  1/16/03                   By:  /s/ David L. Smith
       -----------                    -----------------------------------------
                                         David L. Smith, Member

Tenant:                           INTEGRATED ALARM SERVICES GROUP, INC.

Dated:  1/16/03                   By:  /s/ Timothy M. McGinn
       -----------                    -----------------------------------------
                                         Timothy M. McGinn, Chairman

                                       21
<PAGE>

                                   EXHIBIT "A"

                                 LEASED PREMISES

         See floor plan, and highlighted portion thereon, attached hereto.

                                       22

<PAGE>

                                       23

<PAGE>

                                   EXHIBIT "B"

                        Design and Construction Standards
                          Responsibilities of Landlord

                                       24
<PAGE>

                                   EXHIBIT "C"
                                  TENANT'S WORK

A. GENERAL PROVISIONS: All work required to complete and place the Leased
Premises in finished condition for opening for business, except that work to be
performed by Landlord as set forth in Exhibit B is to be performed by Tenant as
set forth in this Exhibit C and is to be paid for by Tenant.

B. TENANT'S WORK DEFINED: Tenant's Work is all work, other than Landlord's Work,
required to be done in preparing the Leased Premises so that it may be operated
for business with the public.

All Tenant's Work is to be designed by Tenant and performed at Tenant's cost and
expense, subject to the prior approval (in accordance with Landlord's procedures
in effect from time to time) of the plans and specifications therefor by
Landlord.

C. APPROVAL OF TENANT'S WORK: Prior to the commencement of any of Tenant's Work,
said work shall receive the written approval of Landlord or Landlord's Architect
and/or General Contractor. Tenant shall submit Preliminary Plans and
Specifications and Complete Plans and Specifications for Landlord's approval.

In order to obtain the approval of Landlord or Landlord's Architect and/or
General Contractor for Tenant's Work, all plans and specifications submitted to
Landlord must satisfy each of the following requirements:

         1. Comply with all applicable statutes, ordinances, regulations and
codes and the requirements of any governmental regulatory body.

         2. Comply with the general character of the Capital Center on which the
Leased Premises are located.

         3. Comply with the standards of the National Board of Fire Underwriters
(NBFU), the National Electric Code (NEC), and the American Society of Heating
and Air Conditioning Engineers (ASHAE), if applicable.

         Tenant agrees to make all revisions required by Landlord to any plans
and specifications furnished by Tenant in order that the same shall conform to
the requirements set forth above or any other requirements established by
Landlord from time to time. When so revised and approved by Landlord, Landlord
shall acknowledge its approval and grant Tenant the right to proceed with the
construction of Tenant's Work. Tenant agrees to perform Tenant's Work in
accordance with final plans and specifications approved by Landlord.

                                       25
<PAGE>

D. CONTRACTORS, CONTRACTS AND PROCEDURES:

         1. Skill and Efficiency. Tenant shall exercise and cause to be
exercised the best skill, efficiency and judgment in connection with the design
and performance of all of Tenant's Work to the end that it be done promptly and
properly.

         2. Contractors. Tenant's Work may be performed only by contractors or
subcontractors approved in advance by Landlord. Tenant agrees that it shall hire
only contractors and subcontractors who employ workers who are covered by a
collective bargaining agreement (union workers).

         3. Insurance. Tenant and its contractors shall in addition provide such
insurance for the benefit and protection of Landlord, its general contractors
and its or their subcontractors, as to the extent and in the amounts deemed
appropriate by Landlord. All certificates of such insurance and all performance
bonds required by the subparagraph shall be delivered to Landlord by Tenant
prior to the commencement of any of Tenant's Work.

         4. Construction Procedures. Tenant shall file all applications, obtain
and pay for all necessary permits and approvals, and secure certificates of
occupancy which may be required by and duly constituted governmental body or
agency.

         5. Quality Standards. All Tenant's Work shall be performed in a
thoroughly first class, workmanlike manner; shall be in good and usable
condition at the date of completion thereof; and shall be guaranteed by the
person performing the same to be free from any and all defects in workmanship
and materials for the period of time which customarily applies under good
contracting practice with respect to the work in question, but in no event for
less than one (1) year after completion thereof.

27034

                                       26<PAGE>

                                                                    EXHIBIT 10.9

This Lease Agreement, made the         day of                 ,2000

         Between
         ROBERT F. GALLO & W. CARY EDWARDS, Partners

         Residing or located at 169 Ramapo Valley Road In the Borough of Oakland
in the County of Bergen and State of New Jersey, herein designated as the
Landlord,

         And
         MORLYN FINANCIAL GROUP, LLC

about to be located at 3 Post Road in the Borough of Oakland in the County of
Bergen and State of New Jersey , herein designated as the Tenant;

         Witnesseth that, the Landlord does hereby lease to the Tenant and the
Tenant does hereby rent from the Landlord, the following described premises:

Approximately 4,705 rentable sq. ft. on the third floor, as more particularly
shown on Appendix "A" annexed hereto,

for a term of five and one-half (5 1/2) years commencing on November 1 2000,
and ending on April 30, 2006 to be used and occupied only and for no other
purpose than an office facility.

         Upon the following Conditions and Covenants:

         1st: The Tenant covenants and agrees to pay to the Landlord, as rent
for and during the term hereof, the sum of $430,069.00 (Four hundred thirty
thousand sixty-nine and no/100 in the following manner:

         See Appendix "B" annexed hereto.

         Landlord represents that there is ample parking available for Tenant's
use. Landlord will upon Tenant's request reserve up to 4 spaces for Tenant's
exclusive use and will so mark these spaces.

         2nd: The Tenant has examined the premises and has entered into this
lease without any representation on the part of the Landlord as to the condition
thereof. The Tenant shall take good care of the premises and shall at the
Tenant's own cost and expense, make all repairs, including painting and
decorating, and shall maintain the premises in good condition and state of
repair, and at the end or other expiration of the term hereof, shall deliver up
the rented premises in good order and condition, wear and tear from a reasonable
use thereof, and damage by the elements not resulting from the neglect or fault
of the Tenant, excepted. The Tenant shall neither encumber nor obstruct the
sidewalks, driveways, yards, entrances, hallways and stairs, but shall keep and
maintain the same in a clean condition, free from debris, trash, refuse, snow
and ice See Rider #2.
*Except as otherwise provided herein,

         3rd: In case of the destruction of or any damage to the glass in the
leased premises, or the destruction of or damage of any kind whatsoever to the
said premises, caused by the carelessness, negligence or improper conduct on the
part of the Tenant or the Tenant's agents, employees, guests, licensees,
invitees, subtenants, assignees or successors, the Tenant shall repair the said
damage or replace or restore any destroyed parts of the premises, as speedily as
possible, at the Tenant's own cost and expense.

         4th: No alterations, additions or improvements shall be made, and no
climate regulating, air conditioning, cooling, heating or sprinkler systems,
television or radio antennas, heavy equipment apparatus and fixtures, shall be
installed in or attached to the leased premises, without the written consent of
the Landlord. Unless otherwise provided herein, all such alterations, additions
or improvements and systems, when made, installed in or attached to the said
premises, shall belong to and become the property of the Landlord and shall be
surrendered with the premises and as part thereof upon the expiration or sooner
termination of this lease, without hindrance, molestation or injury.
*which consent shall not be unreasonably withheld or delayed.

         5th: The Tenant shall not place nor allow to be placed any signs of any
kind whatsoever, upon, in or about the said premises or any part thereof, except
of a design and structure and in or at such places as may be indicated and
consented to by the Landlord in writing. In case the Landlord or the Landlord's
agents, employees or representatives shall deem it necessary to remove any such
signs in order to paint or make any repairs, alterations or improvements in or
upon said premises or any part thereof, they may be so removed, but shall be
replaced at the Landlord's expense when the said repairs, alterations or
improvements shall have been completed. Any signs permitted by the Landlord
shall at all times conform with all municipal ordinances or other laws and
regulations applicable thereto. *which consent shall not be unreasonably
withheld or delayed
Signs permitted by Landlord.

         6th: The Tenant shall pay when due all the rents or charges for gas and
electricity used by the Tenant winch are or may be assessed or imposed upon the
leased premises or which are or may be charged to the Landlord by (the suppliers
thereof (during the term hereof, and if not paid, such rents or charges shall be
added to and become payable as additional rent with the installment of rent next
due or within 30 days of demand therefor, whichever occurs sooner. See Rider #2

         7th: The Tenant shall promptly comply with all laws, ordinances, rules,
regulations, requirements and directives of the Federal, State and Municipal
Governments or Public Authorities and of all their departments, bureaus and
subdivisions, applicable to and affecting the said premises, their use and
occupancy, for the correction, prevention and abatement of nuisances, violations
or other grievances in, upon or connected with the said premises, during the
term hereof; and shall promptly comply with all orders, regulations,
requirements and directives of the Board of Fire Underwriters or similar
authority and of any insurance companies which have issued or are about to issue
policies of insurance covering the said premises and its contents, for the
prevention of fire or other casualty, damage or injury, at the Tenant's own cost
and expense. See Rider 2#

         8th: The Tenant, at Tenant's own cost and expense, shall obtain or
provide and keep in full force for the benefit of the Landlord, during the term
hereof, general public liability insurance, insuring the Landlord against any
and all liability or claims of liability arising out of, occasioned by or
resulting from any accident or otherwise in or about the leased premises, for
injuries to any person or persons, for limits of not less than $ 300,000.00 for
injuries to one person and $ 500,000.00 for injuries to more than one person, in
any one accident or occurrence, and for loss or damage to the property of any
person or persons, for not less than $ 100,000.00. The policy or policies of
insurance shall be of a company or companies authorized to do business in this
State and shall be delivered to the Landlord, together with evidence of the
payment of the premiums therefor, not less than fifteen days prior to the
commencement of the term hereof or of the date when the Tenant shall enter into
possession, whichever occurs sooner. At least fifteen days prior to the
expiration or termination date of any policy, the Tenant shall deliver a renewal
or replacement policy with proof of the payment of the premium therefor. The
Tenant also agrees to and shall save, hold and keep harmless and indemnify the
Landlord from and for any and all payments, expenses, costs, attorney fees and
from and for any and all claims and liability for losses or damage to property
or injuries to persons occasioned wholly or in part by or resulting from any
acts or omissions by the Tenant or the Tenant's agents, employees, guests,
licensees, invitees, subtenants, assignees or successors, or for any cause

<PAGE>

         9th: The Tenant shall not, without the written consent of the
Landlord*, assign, mortgage or hypothecate this lease, nor sublet or sublease
the premises or any part thereof. *which will not be unreasonably withheld or
delayed

         10th: The Tenant shall not occupy or use the leased premises or any
part thereof, nor permit or suffer the same to be occupied or used for any
purposes other than as herein limited, nor for any purpose deemed unlawful,
disreputable, or extra hazardous, on account of fire or other casualty.

         11th: This lease shall not be a lien against the said premises in
respect to any mortgages that may hereafter be placed upon said premises. The
recording of such mortgage or mortgages shall have preference and precedence and
be superior and prior en lien to this lease, irrespective of the date of
recording and the Tenant agrees to execute any instruments, without cost, which
may be deemed necessary or desirable, to further effect the subordination of
this lease to any such mortgage or mortgages. A refusal by the Tenant to
execute such instruments shall entitle the Landlord to the option of canceling
this lease, and the term hereof is hereby expressly limited accordingly.

         12th: If the land and premises leased herein, or of which the leased
premises are a part, or any portion thereof, shall be taken under eminent domain
or condemnation proceedings, or if suit or other action shall be instituted for
the taking or condemnation thereof, or if in lieu of any formal condemnation
proceedings or actions, thee Landlord shall grant an option to purchase anti or
shall sell and convey thee said premises or any portion thereof, to thee
governmental or other public authority, agency, body or public utility, seeking
to take said land and premises or any portion thereof, then this lease, at the
option of the Landlord, shall terminate, and the term hereof shall end as of
such date as the Landlord shall fix by notice in writing; and the Tenant shall
have no claim or right to claim or be entitled to any portion of any amount
which may be awarded as damages or paid as the result of such condemnation
proceedings or paid as the purchase price for such option, sale or conveyance in
lieu of formal condemnation proceedings; and all rights of the Tenant to
damages, if any, are hereby assigned to the Landlord. The Tenant agrees to
execute and deliver any instruments, at the expense of the Landlord, as may be
deemed necessary or required to expedite any condemnation proceedings or to
effectuate a proper transfer of title to such governmental or other public
authority, agency, body or public utility seeking to take or acquire the said
lands and premises or any portion thereof. The Tenant covenants and agrees to
vacate the said premises, remove all the Tenant's personal property therefrom
and deliver up peaceable possession thereof to the Landlord or to such other
party designated by the Landlord in the aforementioned notice. Failure by the
Tenant to comply with any provisions in this clause shall subject the Tenant to
such costs, expenses, damages and losses as the Landlord may incur by reason of
the Tenant's breach hereof. See Rider #2.

         13th: In case of fire or other casualty, the Tenant shall give
immediate notice to the Landlord. If the premises shall be partially damaged by
fire, the elements or other casualty, the Landlord shall repair the same as
speedily as practicable, but the Tenant's obligation to pay the rent hereunder
shall not cease. If, in the opinion of the Landlord, the premises be so
extensively and substantially damaged as to render them untenantable, then the
rent shall cease until such time as thee premises shall be made tenantable by
the Landlord. However, if, in the opinion of the Landlord, premises be totally
destroyed or so extensively and substantially damaged as to require practically
a rebuilding thereof, then the rent shall be paid up to the time of such
destruction and then and from thenceforth this lease shall come to an end. In no
event however, shall the provisions of this clause become effective or be
applicable, if the fire or other casualty and damage shall be the result of the
carelessness, negligence or improper conduct of the Tenant or the Tenant's
agents, employees, guests, licensees, invitees, subtenants, assignees or
successors. In such case, the Tenant's liability for the payment of the rent and
the performance of all the covenants, conditions and terms hereof on the
Tenant's part to be performed shall continue and the Tenant shall be liable to
the Landlord for the damage and loss suffered by the Landlord. If the Tenant
shall have been insured against any of the risks herein covered, then the
proceeds of such insurance shall be paid over to the Landlord to the extent of
the Landlord's costs and expenses to make the repairs hereunder, and such
insurance carriers shall have no recourse against the Landlord for
reimbursement. See Rider #2.

         14th: If the Tenant shall fail or refuse to comply with and perform any
conditions and covenants of the within lease, the Landlord may, if the Landlord
so elects, carry out and perform such conditions and covenants, at the cost and
expense of the Tenant, and the said cost and expense shall be payable on demand,
or at the option of the Landlord shall be added to the installment of rent due
immediately thereafter but in no case later than one month after such demand,
whichever occurs sooner, and shall be due and payable as such. This remedy shall
be in addition to such other remedies as the Landlord may have hereunder by
reason of the breach by the Tenant of any of the covenants and conditions in
this lease contained.

         15th: The Tenant agrees that the Landlord and the Landlord's agents,
employees or other representatives, shall have the right to enter into and upon
the said premises or any part thereof, at all reasonable hours, for the purpose
of examining the same or making such repairs or alterations therein as may be
necessary for the safety and preservation thereof. This clause shall not be
deemed to be a covenant by the Landlord nor be construed to create an obligation
on the part of the Landlord to make such inspection or repairs.

         16th: The Tenant agrees to permit the Landlord and the Landlord's
agents, employees or other representatives to show the premises to persons
wishing to rent or purchase the same, and Tenant agrees that on and after six
(6) months next preceding the expiration of the term hereof, the Landlord or the
Landlord's agents, employees or other representatives shall have the right to
place notices on the front of said premises or any part thereof, offering the
premises for rent or for sale; and the Tenant hereby agrees to permit the same
to remain thereon without hindrance or molestation.

         17th: If for any reason it shall be impossible to obtain fire and other
hazard insurance on the buildings and improvements on the leased premises, in an
amount and in the form and in insurance companies acceptable to the Landlord,
the Landlord may if the Landlord so elects at any time thereafter, terminate
this lease and the term hereof, upon giving to the Tenant * days notice in
writing of the Landlord's intention so to do, and upon the giving of such
notice, this lease and the term thereof shall terminate. If by reason of the use
to which the premises are put by the Tenant or character of or the manner in
which the Tenant's business is carried on, the insurance rates for fire and
other hazards shall be increased, the Tenant shall upon demand, pay to the
Landlord, as rent, the amounts by which the premiums for such insurance are
increased. Such payment shall be paid with the next installment of rent but in
no case later than one month after such demand, whichever occurs sooner. *thirty
(30)

         18th: Any equipment, fixtures, goods or other property of the Tenant,
not removed by the Tenant upon the termination of this lease, or upon any
quitting, vacating or abandonment of the premises by the Tenant, or upon the
Tenant's eviction, shall be considered as abandoned and the Landlord shall have
the right, without any notice to the Tenant, to sell or otherwise dispose of the
same, at the expense of the Tenant, and shall not be accountable to the Tenant
for any part of the proceeds of such sale, if any.

         19th: if there should occur any default on the part of the Tenant in
the performance of any conditions and covenants herein contained, or if during
the term hereof the premises or any part thereof shall be or become abandoned or
deserted, vacated or vacant, or should the Tenant be evicted by summary
proceedings or otherwise, the Landlord, in addition to any of other remedies
herein contained or as may be permitted by law, may either by force or
otherwise, without being liable for prosecution therefor, or for damages,
re-enter the said premises and the same have and again possess and enjoy; and as
agent for the Tenant or otherwise, re-let thee premises and receive the rents
therefor and apply the same, first to the payment of such expenses, reasonable
attorney fees and costs, as the Landlord may have been put to in re-entering
and repossessing the same and in making such repairs and alterations as may be
necessary; and second to the payment of the rents due hereunder. The Tenant
shall remain liable for such rents as may be in arrears and also the rents as
may accrue subsequent to the re-entry by the Landlord, to the extent of the
difference between the rents reserved hereunder and the rents, if any, received
by the Landlord during the remainder of the unexpired term hereof, after
deducting the aforementioned expenses, fees and costs; the same to be paid as
such deficiencies arise and are ascertained each month. See Rider #2.

         20th: Upon the occurrence of any of the contingencies set forth in the
preceding clause, or should the Tenant be adjudicated a bankrupt, insolvent or
placed in receivership, or should proceedings be instituted by or against the
Tenant for bankruptcy, insolvency, receivership, agreement of composition or
assignment for the benefit of creditors*, or if this lease or the estate of the
Tenant hereunder shall pass to another by virtue of any court proceedings, writ
of execution, levy, sale, or by operation of law, the Landlord may, if the
Landlord so elects, at any time thereafter, terminate this lease and the term
hereof, upon giving to the Tenant or to any trustee, receiver, assignee or other
person in charge of or acting as custodian of the assets or property of the
Tenant, five days notice in writing, of the Landlord's intention so to do. Upon
the giving of such notice, this lease and the term hereof shall end on the date
fixed in such notice as if the said date was the date originally fixed in this
lease for the expiration hereof; and the Landlord shall have the right to remove
all persons, goods, fixtures and chattels therefrom, by force or otherwise,
without liability for damages.
*which action is not dismissed or stayed within sixty (60) days.

         21st: The Landlord shall not be liable for any damage or injury which
may be sustained by the Tenant or any other person, as a consequence of the
failure, breakage, leakage or obstruction of the water, plumbing, steam, sewer,
waste or soil pipes, roof, drains, leaders, gutters, valleys, downspouts or the
like or of the electrical, gas, power, conveyor, refrigeration, sprinkler, air
conditioning or heating systems, elevators or hoisting equipment; or by reason
of the elements; or resulting from the carelessness, negligence or improper
conduct on the part of any other Tenant or of the Landlord or the Landlord's or
this or any other Tenant's agents, employees, guests, licensees, invitees,
subtenants, assignees or successors; or attributable to any interference with,
interruption of or failure, beyond the control of the landlord, of any services
to be furnished or supplied by the Landlord.

         22nd: The various rights, remedies, options and elections of the
Landlord, expressed herein, are cumulative, and the failure of the Landlord to
enforce strict performance by the Tenant of the conditions and covenants of this
lease or to exercise any election or option or to resort or leave recourse to
any remedy herein conferred or the acceptance by the Landlord of any installment
of rent after any breach by the Tenant, in any one or more instances, shall not
be construed or deemed to be a waiver or a relinquishment for the future by the
Landlord of any such conditions and covenants, options, elections

<PAGE>

         23rd: This lease and the obligation of the Tenant to pay the rent
hereunder and to comply with the covenants and conditions hereof, shall not be
affected, curtailed, impaired or excused because of the Landlord's inability to
supply any service or material called for herein, by reason of any rule, order,
regulation or preemption by any governmental entity, authority, department,
agency or subdivision or for any delay which may arise by reason of negotiations
for the adjustment of any fire or other casualty loss or because of strikes or
other labor trouble or for any cause beyond the control of the Landlord.

         24th: The terms, conditions, covenants and provisions of this lease
shall be deemed to be severable. If any clause or provision herein contained
shall be adjudged to be invalid or unenforceable by a court of competent
jurisdiction or by operation of any applicable law, it shall not affect the
validity of any other clause or provision herein, but such other clauses or
provisions shall remain in full force and effect.

         25th: All notices required under the terms of thus lease shall be given
and shall be complete by mailing such notices by certified or registered mail,
return receipt requested, to the address of the parties as shown at the head of
this lease, or to such other address as may be designated in writing, which
notice of change of address shall be given in the same manner.

         26th: The Landlord covenants and represents that the Landlord is the
owner of the premises herein leased and has the right and authority to enter
into, execute and deliver this lease; and does further covenant that the Tenant
on paying the rent and performing the conditions and covenants herein contained,
shall and may peaceably and quietly have, hold and enjoy the leased premises for
the term aforementioned.

         27th: This lease contains the entire contract between the parties. No
representative, agent or employee of the Landlord has been authorized to make
any representations or promises with reference to the within letting or to vary,
alter or modify the terms hereof. No additions, changes or modifications,
renewals or extensions hereof, shall be binding unless reduced to writing and
signed by the Landlord and the Tenant.

         29th: If in any calendar year during the term and of any renewal or
extension of the term hereof, thee annual municipal taxes assessed against the
land and improvements leased hereunder or of which the premises herein leased
are a part, shall be greater than the municipal taxes assessed against the said
lands and improvements for the calendar year 2000, which is hereby designated as
the base year, then, in addition to the rent herein fixed, the Tenant agrees to
pay a sum equal to thirty-three and one-third (33 1/3%) percent of the amount by
which said tax exceeds the annual tax for the base year, inclusive of any
increase during any such calendar year. The said sum shall be considered as
additional rent and shall be paid in as many equal installments as there are
months remaining in the calendar year in which said taxes exceed the taxes for
the base year, on the first day of each month in advance, during the remaining
months of that year. If the term hereof shall commence after the first day of
January or shall terminate prior to the last day of December in any year, then
such additional rent resulting from a tax increase shall be proportionately
adjusted for the fraction of the calendar year involved. See Rider #2.

         30th: If any mechanics' or other liens shall be created or filed
against the leased premises by reason of labor performed or materials furnished
for the Tenant in the erection, construction, completion, alteration, repair or
addition to any building or improvement, the Tenant shall within 10 days
thereafter, at the Tenant's own cost and expense, cause such lien or liens to be
satisfied and discharged of record together with any Notices of intention that
may have been filed. Failure so to do, shall entitle the Landlord to resort to
such remedies as are provided herein in the case of any default of this lease,
in addition to such as are permitted by law.

         32nd: The Tenant has this day deposited with the Landlord the sum of
$10,439.22 as security for the payment of the rent hereunder and the full and
faithful performance by the Tenant of the covenants and conditions on the part
of the Tenant to be performed. Said sum shall be returned to the Tenant,
without interest, after the expiration of the term hereof, provided that the
Tenant has fully and faithfully performed all such covenants and conditions and
is not in arrears in rent. During the term hereof, the Landlord may, if the
Landlord so elects, have recourse to such security, to make good any default by
the Tenant, in which event the Tenant shall, on demand, promptly restore said
security to its original amount. Liability to repay said security to the Tenant
shall run with the reversion and title to said premises, whether any change in
ownership thereof be by voluntary alienation or as the result of judicial sale,
foreclosure or other proceedings, or the exercise of a right of taking or entry
by any mortgagee. The Landlord shall assign or transfer said security, for the
benefit of the Tenant, to any subsequent owner or holder of the reversion or
title to said premises, in which case the assignee shall become liable for the
repayment thereof as herein provided, and the assignor shall be deemed to be
released by the Tenant from all liability to return such security. This
provision shall be applicable to every alienation or change in title and shall
in no wise be deemed to permit the Landlord to retain the security after
termination of the Landlord's ownership of the reversion or title. The Tenant
shall not mortgage, encumber or assign said security without the written consent
of the Landlord.

         See Rider and Appendix attached hereto and made a part hereof.

         Subject to Rider #2 which is incorporated herein.

         The Landlord may pursue the relief or remedy sought in any invalid
clause, by conforming the said clause with the provisions of the statutes or the
regulations of any governmental agency in such case made and provided as if the
particular provisions of the applicable statutes or regulations were set forth
herein at length.

         In all references herein to any parties, persons, entities or
corporations the use of any particular gender or the plural or singular number
is intended to include the appropriate gender or number as the text of the
within instrument may require. All the terms, covenants and conditions herein
contained shall be for and shall inure to the benefit of and shall bind the
respective parties hereto, and their heirs, executors, administrators, personal
or legal representatives, successors and assigns.

         In Witness Whereof, the parties hereto have hereunto set their hands
and seals, or caused these presents to be signed by their proper corporate
officers and their proper corporate seal to be hereto affixed, the day and year
first above written

       Signed, Sealed and Delivered
            in the presence of
              or Attested by

                                              /s/ Robert F. Gallo
                                            -----------------------------
                                                Robert F. Gallo
                                                                       Landlord

                                             MORLYN FINANCIAL GROUP, LLC

                                            By   /s/ Suzanne Sweeney
                                            ------------------------------
                                                Suzanne Sweeney, President
                                                                         Tenant

<PAGE>

                              )
State of New Jersey           ) ss.: Be it Remembered,
                              )

that on                          19         , before me, the subscriber,
personally appeared

who, I am satisfied,          the person        named in and who executed the
within Instrument, and thereupon      acknowledged that        signed, sealed
and delivered the same as
                act and deed, for the uses and purposes therein expressed.

                                         )
State of New Jersey                      )ss.: Be it Remembered,
                                         )
that on  19       , before me, the subscriber,

personally appeared
who, being by me duly sworn on h       oath, deposes and makes proof to my
satisfaction, that he is the Secretary of
                                the Corporation named in the within Instrument;

that                 is the President of said Corporation; that the execution,
as well as the making of this Instrument, has been duly authorized by a proper
resolution of the Board of Directors of the said Corporation; that deponent well
knows the corporate seal of said Corporation; and that the seal affixed to said
Instrument is the proper corporate seal and was thereto affixed and said
Instrument signed and delivered by said                  President as and for
the voluntary act and deed of said Corporation, in presence of deponent, who
thereupon subscribed h   name thereto as attesting witness.

Sworn to and subscribed before me, the date aforesaid.

--------------------------------------------------------------------------------

                                     LEASE

                                       TO

                   -------------------------------------------
                   Dated,                     ,19
                   -------------------------------------------

                   Expires,

                   Rent, $

                   Prepared by:

--------------------------------------------------------------------------------

                               ASSIGNMENT OF LEASE

         For one dollar and other good and valuable consideration, the Tenant as
Assignor, assigns this Lease and all the Assignor's rights and privileges
therein, including any and all monies deposited with the Landlord as security,
subject to all the terms, covenants and conditions contained therein; and the
Assignee accepts this Assignment of Lease and assumes and agrees to comply with
and be bound by the terms, covenants and conditions in said Lease contained. The
signature of the Landlord hereto is evidence of the Landlord's consent to and
acceptance of this Assignment of Lease.

----------------------------------------    ----------------------------------
                               Assignee                               Assignor

                                            ----------------------------------
                                                                      Landlord

<PAGE>

                   RIDER TO BE ATTACHED TO AND MADE A PART OF
                            LEASE AGREEMENT BETWEEN
                       ROBERT F. GALLO, as Landlord, and
                     MORLYN FINANCIAL GROUP, LLC, as Tenant

         33rd: TENANT shall reimburse LANDLORD, as additional rent, for TENANT'S
share of the increase in LANDLORD'S gross cost of operation of the Building,
over those for the 2000 calendar year, in accordance with the following:

                   (a) Common facilities shall mean common hallways, stairways,
elevator, parking area, driveways, sidewalks and all other areas in the Building
now or hereafter constructed and intended to be used in common by or for the
tenants in the Building.

                   (b) TENANT'S share of the increase of LANDLORD'S gross cost
for the operation of the property shall be determined for each year by
subtracting the cost for the 2000 year from the costs for the year in question
and multiplying the difference by the same ratio as is used to determine
TENANT'S share of real estate taxes in accordance with paragraph 29th.

                   (c) LANDLORD'S gross cost shall include:

                           (i) Electricity for lighting of common facilities,
                               elevator usage.

                           (ii) Repairs and maintenance to the common
                                facilities (including landscaping, snow removal
                                and trash removal) not properly chargeable to
                                capital account under generally accepted
                                accounting principles.

                          (iii) Fuel for hot water.

                           (iv) Water.

                            (v) Insurance.

                           (vi) Management fees which shall not exceed 10% of
                                rents collected.

                         (vii)  Other similar direct costs, exclusive of real
                                estate taxes and excluding any and all capital
                                improvements.

                   (d) If the expiration date of the Lease does not coincide
with the calendar year, then TENANT'S share of the increase of operating expense
for the calendar year in which the Lease terminates shall be proportionately
reduced according to the portion of the year which will elapse prior to the
termination date. See Rider #2.

         34th: TENANT shall pay all charges for gas, electricity, light, heat,
power and telephone or other communication service used, rendered or supplied
upon or in connection with leased property, and shall indemnify LANDLORD against
any liability or damages on such account. See Rider #2.

         35th: The parties agree that Ann Bernhard, ReMax Real Estate
Enterprises is the broker who negotiated and who brought about this transaction.
All Broker fees and/or commissions shall be paid by LANDLORD. Broker commissions
shall be payable at 5% of total base rent and shall be earned upon payment of
security, first month's rent and occupancy of the premises. The terms of payment
are one-half at occupancy and the remaining one-half six months later.
Commissions shall be payable at the same 5% rate for any extensions or renewals
of this Lease.

<PAGE>

         36th: LANDLORD shall have the right from time to time during the term
of this Lease to make reasonable rules and regulations for the orderly and
lawful use of the Building by its Tenants and their guests. TENANT, its
servants, employees, agents, visitors and licensees shall observe and comply
with these rules and regulations. Any failure by LANDLORD to enforce any rules
and regulations now or hereafter in effect, either against TENANT or any other
Tenant in the Building, shall not constitute a breach hereunder or waiver of any
such rules or regulations, but any rule or regulation not generally enforced
against other Tenants in the Building will not be discriminatorily enforced
against TENANT.

         37th: TENANT shall pay a late fee of five (5%) percent of the amount
due for any payment that remains unpaid for a period of more than five (5) days
from the date due.

         38th: Options to Renew Lease. TENANT may, providing he is not in
default of the terms of this Lease, extend the Lease upon the same terms and
conditions as provided herein for a period of five (5) years. The base rent for
the first year (1st payment period) shall be based on $18.00 per square foot of
rentable space. The base rental for each remaining two (2) year period of the
option (2nd and 3rd payment periods) shall be based on the increase in the CPI
Index for the month of September in the year in which the last payment period
terminates as compared to the CPI Index in the month of September in the year in
which the prior payment period terminated, but in no event shall the increase be
less than five (5%) percent of the prior base rental nor greater than eight (8%)
percent thereof. Subject to Rider # 2 which is incorporated herein.

                                       /s/ Robert F. Gallo
                                       ---------------------------------
                                       ROBERT F. GALLO, Landlord

                                       MORLYN FINANCIAL GROUP, LLC

                                   By   /s/ Suzanne Sweeney
                                       ---------------------------------
                                       Suzanne Sweeney President, Tenant

The payment obligations of the within Lease are personally guaranteed by the
undersigned during the initial term only. This Guaranty shall terminate as of
the end of the initial term

                                       /s/ Thomas Few
                                       ---------------------------------
                                       THOMAS FEW

on April 30, 2006, and shall not apply during any renewal or extension beyond
that date.

<PAGE>

                                  [FLOOR PLAN]

                                  APPENDIX "A"

<PAGE>

                                  APPENDIX "B"

$430,069.00 (Four hundred thirty thousand sixty-nine and No/100) payable in the
following manner:

1.       1st 6 months: 2,941 sq. ft. @ 16.50 = $24,263 or $4,043.83/mo. per
         month in advance commencing on November 1, 2000.

2.       2nd 6 months: 4,705 sq. ft @ $16.50 = $38,816 or $6,469.33 per month in
         advance commencing May 1, 2001.

3.       Next 2 1/2 years: 4,705 sq. ft. @ $17 = $79,985 per year or $6,665.42
         per month in advance commencing November 1, 2001.

4.       Last 2 years: 4,705 sq. ft. @ $17.75 = $83,513.75 per year or $6,959.48
         per month in advance commencing May 1, 2004.

<PAGE>

                                RIDER #2 TO LEASE
                                    BETWEEN
                Robert F. Gallo and W. Cary Edwards Partnership,
                                  as Landlord
                                      and
                          Morlyn Financial Group, LLC,
                                   as Tenant
                             dated August 15, 2000

The Lease to which this Rider is appended is amended by the following additional
provisions relating to the articles in the main lease as numbered here:

Article 2nd: Landlord shall make all structural repairs to the premises and any
major repairs or replacements to the HVAC equipment, roof, any all building
systems and equipment without reimbursement from Tenant, directly or indirectly.
Landlord represents that the HVAC and other building systems are in good
working order.

Article 5th: Landlord shall add Tenant's name to any directory of building
occupants.

Article 6th and 34th): Landlord represents that the leased premises are
separately metered.

Article 7th: Landlord represents that the Tenant's proposed use of the premises
is permissible under applicable zoning laws, and if a C.O. and/or any other
governmental approval or use permit is required by Tenant, the effectiveness of
this Lease is conditioned on Tenant obtaining such C.O. and approvals/permits.

Article 12th: Upon any taking which materially impacts upon Tenant's use of its
leased space herein, Tenant shall also have the option to terminate the Lease,
or, upon a partial taking, rent shall be proportionately reduced for the part of
the leased premises taken.

Article 13th: Landlord shall make any decision to repair or terminate and shall
notify Tenant of its intentions in this regard within fourteen (14) days of any
casualty loss. In addition, if there is partial damage to the premises, rent
will abate proportionally to the portion of the premises so affected and during
the period in which Tenant shall not have the use of same.

Article l9th: Tenant shall be given certain grace periods for an opportunity to
cure before Landlord can declare a default. Tenant shall have a ten (10) day
grace period for monetary defaults and a thirty (30) day grace period for
non-monetary defaults (or such longer period of time if such default cannot be
cured within 30 days, provided Tenant immediately takes steps to diligently cure
such default), all following written notice of such claimed default.

Article 29th: Landlord represents that the Tenant's percentage share as set
forth herein is equal to the proportion by which the Tenant's leased premises
bears to the total rentable space in the building.

                                   Page 1 of 2

<PAGE>

Article 33rd: Such increased costs are due from Tenant within thirty (30) days
from the year end, but in no event earlier than thirty (30) days from when
invoiced to Tenant. Tenant and/or Tenant's representatives shall be given full
access to the Landlord's records relating to all such operating cost
calculations and documents relating thereto.

EFFECT OF RIDER #2. This Rider #2 shall supplement the provisions in the
parties' main agreement and Rider. If any terms or provisions in this Rider #2
conflict with or are more comprehensive than the main agreement and Rider, the
terms in this Rider #2 shall control and supersede same.

Morlyn Financial Group, LLC, Tenant          Robert F. Gallo and W. Cary
                                             Edwards, Partnership, Landlord

BY  /s/ Suzanne Sweeney                      BY  /s/ Robert F. Gallo
   ------------------------------------         ------------------------------
   Suzanne Sweeney, President                   Robert F. Gallo, Partner

                                   Page 2 of 2

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