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Sample Business Contracts

New Jersey-Cranbury-10 Abeel Road Sublease - MarketSource LLC and 360 Youth LLC

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  • Commercial Lease. Start a state-specific lease for the rental of commercial property. Specify the term and rent due, as well as whether the landlord or tenant is responsible for property taxes, insurance, and maintenance and repairs.
  • Commercial Sublease. When a tenant vacates commercial property before the lease term has expired, it may be able to rent the premises to a third party. The tenant would be the sublessor and the third party would be the sublessee. Besides preparing a sublease, both parties will want to review the provisions for assignment or subletting in the original lease agreement between the landlord and the sublessor.
  • Sublease Agreement. Tenants of residential property should prepare a sublease agreement if they are seeking to sublease a room or the entire apartment or house to a third party. All parties should review the original lease agreement to see if there are any restrictions on subletting or assigning the premises.
  • Triple Net Lease. Triple net leases are a type of commercial leases where the tenant has to pay for property taxes, insurance, utilities, and maintenance, in addition to the monthly rent.
  • Office Space Lease. When renting an office space, tenants should understand the amount of the rent and duration of the lease. Other important terms include whether the space can be subleased, which parties are responsible for maintenance, and whether any furniture and furnishings will be provided.

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                       SUBLEASE AGREEMENT - 10 Abeel Road


     This Sublease Agreement (the "Sublease"), made effective as of this 3rd day
of December, 2003 (the "Effective Date"), by and between MarketSource, L.L.C.,
maintaining an office at 2 Commerce Drive, Cranbury, New Jersey 08512
(hereinafter the "Sublessor"), and 360 Youth, LLC, an Alloy company, maintaining
an office at 151 West 26th Street, 11th floor, New York, NY 10001 (hereinafter
the "Sublessee");

     Whereas, Sublessor and Martin D. Levine, by and through his heir and
successor Monica Levine (the "Landlord"), are parties to that certain Lease
Agreement, dated as of August 21, 2003 (the "Lease"), whereby Sublessor rents
the entire office and warehouse space containing approximately 45,000 square
feet of rentable area located in a building at 10 Abeel Road, Cranbury, NJ 08512
(the "Premises"); and

     Whereas, the Sublessor desires to sublease to Sublessee, and the Sublessee
desires to sublease from the Sublessor the Premises.

     NOW, THEREFORE, for good and other valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties agree as follows:


1.   Use of Premises. In consideration of the covenants herein contained on the
part of the Sublessee to be kept and performed, Sublessor does hereby demise and
sublease unto Sublessee the Premises. Sublessee shall use and occupy the
Premises for executive, administrative, warehouse space, promotional activities
and general office use in a manner consistent with its current use. Sublessee
shall be entitled to use the all of the existing Premises' parking spaces.

2.   Consent to Sublease. Sublessor warrants and represents that the Lease is in
full force and effect, and that there exists no event of default on the
Sublessor's part thereunder, nor (to Sublessor's best knowledge) does there
exist any event or circumstance which, with the passage of time or the giving of
notice, or both, would constitute an event of default. By its execution hereof,
Landlord consents to the execution of this Sublease by Sublessor and Sublessee;
provided, however, that such consent shall not be deemed to grant to Sublessee
any rights or privileges greater than or different from those granted to
Sublessor by the Lease, nor shall Landlord be required to deal directly with the
Sublessee. To the best knowledge of Sublessor and Landlord, no other consents
are required to entitle Sublessor to enter into and perform this Sublease.
Except as otherwise specifically set forth herein, the Lease, as amended, is
hereby incorporated herein in its entirety as if fully set forth herein.

3.   Term. The term of this Sublease shall commence on January 1, 2004, and end
on December 31, 2008 (the "Term") unless sooner terminated pursuant to any
provision hereof.

4.   Repair and Maintenance Plan. Prior to January 1, 2004, Sublessor shall
provide to Sublessee a repair and maintenance plan / process wherein Sublessor
shall reasonably respond and resolve Sublessee's requests for Premises' repairs
and maintenance required to be performed by Sublessor hereunder. Additionally,
the parties agree to cooperate in good faith in developing a Premises "fix
list". Sublessor shall provide to Sublessee, within ten (10) days of receipt of
the mutually agreed upon "fix list", a reasonable time schedule for the "fix
list" repairs with the understanding that Sublessor shall use commercially
reasonable efforts to attend to the items on fix list.

     (a) Upon signature of this Sublease, Sublessor shall begin the process of
moving from the space it currently occupies at the Premises and agrees to
complete its move no later than January 31, 2004.

5.   Payment of Rent.

     (a) The Sublessee covenants and agrees to pay to the Sublessor, as rent for
the Premises and during the Term hereof, the sum of $450,000 gross per year for
each year of the Term ("Rent"). Sublessee shall be solely responsible for
contracting for all utilities, janitorial services and snow removal with third
parties and Sublessee shall be solely liable for all payments to such third
parties. Sublessor shall be responsible for providing structural repairs and
HVAC maintenance, payment of taxes of any nature or kind and landscaping
services.

     (b) Rent shall be paid in the following manner: Sublessee will pay
Sublessor THIRTY SEVEN THOUSAND FIVE HUNDRED DOLLARS ($37,500.00) per month in
advance, without notice or demand, on the first day of each month during the
Term. Rent will be paid at Sublessor's address by check drawn on immediately
available funds or wire transfer according to instructions provided by
Sublessor. Sublessee agrees that if Rent or any other payment due hereunder from
Sublessee to Sublessor remains unpaid ten (10) days after said amount is due,
the amount of such unpaid Rent or other payment shall be increased by a late
charge to be paid to Sublessor by Sublessee in an amount equal to 5% per month
of the amount of the delinquent Rent or other payment.

6.   Sublessor Rental Obligation to Landlord. Sublessor shall be solely
responsible for all payments or other obligations owed to the Landlord pursuant
to the Lease, as amended.


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7.   Repairs and Care.

     (a) Subject to Section 4, the Sublessee has examined the Premises and has
entered into this Sublease without any representation on the part of the
Sublessor as to the condition thereof. Sublessee accepts the Premises in their
present condition, as-is and with all faults. The Sublessee shall take good care
of the Premises and shall at the Sublessee's own cost and expense, make all
repairs (except structural 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 excepted.. The Sublessee 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. 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, excluding ordinary and wear tear from a reasonable use
thereof, caused by the carelessness, negligence or improper conduct on the part
of the Sublessee or the Sublessee's agents, employees, guests, licensees,
invitees, assignees or successors, the Sublessee shall repair the said damage or
replace or restore any destroyed parts of the Premises, as speedily as possible,
at the Sublessee's own cost and expense.

     (b) Sublessor will provide an allowance to Sublessee of $25,000 to be used
by Sublessee during calendar year 2004 for decorative improvements to the
Premises (paint, wallpaper, carpet, and tiles only). The allowance may be used
for buildouts that are pre-approved in writing by the Sublessor and Landlord,
which approval may not be unreasonably withheld, delayed or conditioned. Should
Sublessee desire to use the allowances set forth herein, Sublessee shall notify
Sublessor of the desired work and the Sublessor shall be responsible for
contracting and paying for such services in consultation with Sublessee (except,
however, Sublessee shall be solely responsible for contracting with architects
(if necessary) and applying for / obtaining permits). If Sublessee does not use
all or any part of the allowance within the specified time periods, Sublessee
shall not be entitled to carryover the remaining allowance.

8.   Signs. The Sublessee may place interior signs in the Premises. The
Sublessee may place exterior signs only with the approval of the Sublessor,
which approval shall not be unreasonably withheld, delayed or conditioned. Any
signs permitted by the Sublessor shall at all times conform with all ordinances,
laws and regulations applicable thereto. Sublessor agrees, at is sole cost, to
remove the existing MarketSource signage from the existing roadway sign and
install new AMP signage similar in kind to the existing 360 Youth signage within
a reasonable time period (weather permitting) after January 1, 2004, with the
understanding that both the AMP and 360 Youth signage will remain.

9.   Compliance with Laws. The Sublessee 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, its 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 fire department 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 Sublessee's own
cost and expense.

10.  Liability Insurance; Indemnification.

     (a) The Sublessee, at the Sublessee's own cost and expense, shall obtain or
provide and keep in full force for the benefit of the Sublessor and Landlord,
during the Term hereof, general commercial liability insurance, insuring the
Sublessee 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
Premises, for injuries to any person or persons, or damage (including damage
caused by fire) to the furniture and equipment loaned to Sublessee hereunder,
for limits of not less than $1,000,000 per occurrence / $5,000,000 aggregate,
Additionally, Sublessee shall, at its own cost and expense, maintain Worker's
Compensation- in accordance with applicable statutory limits; and Umbrella
Coverage - $5,000,000. Monica Levine and MarketSource, L.L.C. shall be named as
additional insured on all insurance policies. The policy(ies) of insurance shall
also include a clause wherein Sublessor will be immediately notified by the
insurance company of any failure of Sublessee to pay premiums, or advising
Sublessor of a lapse in Sublessee's coverage or termination of the Sublessee's
insurance policy(ies). The policy or policies of insurance shall be of a company
or companies authorized to do business in the State of New Jersey. Certificates
of Insurance evidencing such coverage and additional insured, shall be delivered
to Sublessor not less than fifteen (15) days prior to the commencement of the
Term hereof or the date when the Sublessee shall enter into possession,
whichever occurs sooner. Within five (5) days of the expiration or termination
date of any policy, the Sublessee shall deliver to Sublessor an updated
certificate of insurance. Sublessee shall also obtain a waiver of subrogation
for the benefit of the Sublessor from any company issuing any policy of
insurance obtained by Sublessee for or in connection with its use or occupancy
of the Premises or which may be obtained in accordance with the provisions of
this Sublease.

     (b) This Sublease is made upon the express covenant and condition that the
Sublessee, except as otherwise set forth herein, shall keep, save and hold the
Sublessor and Landlord harmless and free from all liability, penalties, losses,
damages, costs, expenses, causes of action, claims and/or judgments arising by
reason of Sublessee's gross negligence or willful misconduct.

     (c) Sublessee shall indemnify and hold harmless Sublessor and Landlord from
and against all liability, claims or costs, including reasonable legal fees,
arising from (i) Sublessee's use of the Premises; (ii) any breach of this
Sublease by Sublessee; (iii) any breach by Sublessee of its obligations to
perform the obligations of the Sublessee; or (iv) any injury to person or damage
to property occurring on or about the Premises except to the extent that such
injury or damage arose from the gross negligence or willful misconduct of the
Sublessor, Landlord or their invitees.

     (d) Sublessor agrees to indemnify and hold harmless Sublessee from and
against all liability, claims or costs, including reasonable legal fees, arising
from (i) any breach of this Sublease by Sublessor; (iii) any breach by Sublessor
of its obligations to perform its



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obligations under this Sublease; or (iv) any injury to person or damage to
property occurring on or about the Premises to except the extent that such
injury or damage arose from the gross negligence of Sublessee or its invitees.

11.  Assignment. This Sublease may not be assigned by Sublessee, in whole or in
part, without the prior written consent of Sublessor and Landlord, which consent
will not be unreasonably withheld, conditioned or delayed. This Sublease shall
be binding upon and inure to the benefit of the parties and their respective
successor and assigns.

12.  Restriction of use. The Sublessee 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.

13.  Reimbursement of Sublessor. If the Sublessee shall fail or refuse to comply
with and perform any conditions and covenants of the within Sublease, the
Sublessor may, if the Sublessor so elects, carry out and perform such conditions
and covenants, at the cost and expense of the Sublessee, and the said cost and
expense shall be payable on demand, or at the option of the Sublessor shall be
added to the installment of rent due immediately thereafter but in no case later
than one (1) month after such demand, whichever occurs sooner, and shall be due
and payable as such. If the Sublessor shall fail or refuse to comply with and
perform any conditions and covenants of the within Sublease, the Sublessee may,
if the Sublessee so elects, carry out and perform such conditions and covenants,
at the cost and expense of the Sublessor, and the said cost and expense shall be
payable on demand, or at the option of the Sublessee shall be deducted from the
Rent due immediately thereafter but in no case later than one (1) month after
such demand, whichever occurs sooner. This remedy shall be in addition to such
other remedies as the Sublessor or Sublessee may have hereunder by reason of the
breach by the other of any of the covenants and conditions in this Sublease
contained.

14.  Inspection and Repair. The Sublessee agrees that the Sublessor and the
Sublessor'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
alternation therein as may be necessary for the safety and preservation thereof,
provided that Sublessor has provided Sublessee with at least forty-eight (48)
hours advance notice in writing with it being expressly understood by the
parties that no such advance notice shall be required in the event that
Sublessee requested such repairs or requires immediate attention . This clause
shall not be deemed to be a covenant by the Sublessor nor be construed to create
an obligation on the part of the Sublessor to make such inspection or repairs.

15.  Right to Exhibit. The Sublessee agrees to permit the Landlord and the
Landlord's agents, employees or other representatives to show the Premises upon
providing forty-eight hours advance notice to Sublessee and without interruption
of Sublessee's business to persons wishing to rent or purchase the same, and
Sublessee agrees that the Sublessor or the Sublessor'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 Sublessee hereby agrees to permit the same to remain thereon without
hindrance or molestation.

16.  Removal of Sublessee's Property. Upon expiration , Sublessee shall
surrender the Premises to Sublessor in the same condition that it was provided
to Sublessee excepting reasonable wear and tear and improvements approved by
Sublessor or otherwise allowed under this Sublease. Any equipment, fixtures,
goods or other property of the Sublessee, not removed by the Sublessee upon the
termination of this Sublease, or upon any quitting, vacating or abandonment of
the Premises by the Sublessee, or upon the Sublessee's eviction, shall be
considered as abandoned and the Sublessor shall have the right, without any
notice to the Sublessee, to sell or otherwise dispose of the same, at the
expense of the Sublessee, and shall not be accountable to the Sublessee for any
part of the proceeds of such sale, if any. If Sublessee shall fail to surrender
the Premises upon expiration of this Sublease, Sublessee shall pay to Sublessor,
an amount equal to 150% of the daily rental amount otherwise payable under this
Sublease for each day beyond the expiration date until Sublessee surrenders the
Premises to Sublessor.

17.  Remedies Upon Sublessee's Default. If there should occur any default on the
part of the Sublessee 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 Sublessee
be evicted by summary proceedings or otherwise, the Sublessor, in addition to
any other remedies herein contained or as may be permitted by law, may either by
force or otherwise, without being liable for prosecution therefore, or for
damages, re-enter the said Premises and the same have and again possess and
enjoy; and as agent for the Sublessee or otherwise, re-let the Premises and
receive the rents therefore and apply the same, first to the payment of such
expenses, reasonable attorney fees and costs, as the Sublessor may have been put
to in re-entering, repossessing, and re-letting the same; and second to the
payment of the rents due hereunder. The Sublessee 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 Sublessor, to the extent of the difference between the rents
reserved hereunder and the rents, if any, received by the Sublessor 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. Notwithstanding anything contained herein to the
contrary, Sublessor agrees to use its best efforts to mitigate any and all
damages.

18.  Termination on Default. Upon the occurrence of any of the contingencies set
forth in the preceding clause, or should the Sublessee be adjudicated a
bankrupt, insolvent or placed in receivership, or should proceedings be
instituted by or against the Sublessee for bankruptcy, insolvency, receivership,
agreement of composition or assignment for the benefit of creditors, or if this
Sublease or the estate of the Sublessee hereunder shall pass to another by
virtue of any court proceedings, writ of execution, levy, sale, or by operation
of law, the Sublessor may, if the Sublessor so elects, at any time thereafter,
terminate this Sublease and the Term hereof, upon giving to the Sublessee or to
any trustee, receiver, assignee or other person in charge of or acting as
custodian of the assets or property of the Sublessee, five (5) days notice in
writing, of the Sublessor's intention so to do. Upon the giving of such notice,
this Sublease 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 Sublease for the
expiration hereof; and the Sublessor shall have the right to remove all persons,
goods, fixtures and chattels therefrom, by force or otherwise, without liability
for damages.






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<PAGE>

19.  Non-liability of Sublessor/Landlord. The Sublessor/Landlord shall not be
liable for any damage or injury which may be sustained by the Sublessee 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 Sublessee or its
agents, employees, guests, licensees, invitees, assignees, or successors; or
attributable to any interference with, interruption of or failure, beyond the
control of the Sublessor, of any services to be furnished or supplied by the
Sublessor.

20.  Non-Performance by Sublessor. This Sublease and the obligation of the
Sublessee 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 Sublessor'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 Sublessor.

21.  Validity of Sublease. The terms, conditions, covenants and provisions of
this Sublease 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.

22.  Notices. All correspondence and notices hereunder shall be in writing and
will be deemed to be given if delivered by (i) facsimile transmission (and
confirmed by overnight courier), (ii) registered or certified mail, or (iii)
overnight courier to the following addresses, or at such other address as may
hereafter be furnished in writing to the notifying party:

   Notice to Sublessor:       MarketSource, L.L.C.
                              2 Commerce Drive
                              Cranbury, NJ  08512
                              Attn: Frank P. Morelli, President & CEO
                              Fax: 609-395-0076

                              W/copy   to:     Lori Vilary, Esq.
                                               MarketSource, L.L.C.
                                               2 Commerce Drive
                                               Cranbury, NJ 08512
                                               Fax: 609-655-9101

   Notice to Sublessee:       Alloy, Inc.
                              151 West 26th Street, 11th floor
                              New York, NY 10001
                              Attn: CEO
                              Fax 212-244-4311

                              With copy to:    Alloy, Inc.
                                               151 W. 26th Street, 11th Floor
                                               New York, NY 10001
                                               Attn: General Counsel
                                               Fax: 212-244-4311

23.  Entire Contract. This Sublease supersedes all prior agreements and
understandings hereof regarding the subject matter hereof and contains the
entire contract between the parties. No representative, agent or employee of the
Sublessor has be 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 Sublessor and the Sublessee.

24.  Waiver of Subrogation Rights. The Sublessee waives all rights of recovery
against the Landlord, Sublessor or Landlord's / Sublessor's agents, employees or
other representatives, for any loss, damages or injury of any nature whatsoever
to property or persons for which the Sublessee is insured. The Sublessee shall
obtain from the Sublessee's insurance carriers and will deliver to the
Sublessor, waivers of the subrogation rights under the respective policies.

25.  Force Majeure. Neither Sublessee nor Sublessor shall be liable to the other
for any failure or delay in performing any of its obligations under this
Sublease if such failure or delay is caused by Force Majeure. "Force Majeure"
means any act of God or the public enemy, and accident, explosion, fire, storm,
earthquake, flood, terrorist act or any other circumstance or event beyond its
reasonable control.

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<PAGE>


26.  Security Deposit. Upon execution of this Sublease, Sublessee shall deposit
with Sublessor as a security deposit FIFTY THOUSAND Dollars ($50,000.00) (the
Security Deposit). Sublessor shall hold the Security Deposit as security for the
performance by Sublessee of all obligations imposed under this Sublease which
Sublessee is required to perform. Upon termination of this Sublease, the
Security Deposit shall be returned to Sublessee less all sums then due by
Sublessee to Sublessor pursuant to any provisions of this Sublease or as damages
for any breach or default by Sublessee of this Sublease. Sublessor shall be
entitled to apply the Security Deposit against any damages which it may sustain
by reason of Sublessee's failure to perform any of Sublessee's obligations under
this Sublease but such application shall not preclude Sublessor from recovering
greater damages if the same can be established. Notwithstanding anything
contained herein to the contrary, Sublessor shall use its best efforts to
mitigate its damages. Liability to repay said security to the Sublessee 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 and mortgagee. The Sublessor shall assign or transfer said security, for the
benefit of the Sublessee, 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 Sublessee form all liability to return such security. This
provision shall be applicable to every alienation or change in the title and
shall in no way be deemed to permit the Sublessor to retain the security after
Termination of the Sublessor's ownership of the reversion or title. The
Sublessee shall not mortgage, encumber or assign said security without the
written consent of the Sublessor. Sublessor shall not be obligated to keep the
Security Deposit as a separate fund, but may mix the Security Deposit with
Sublessor's own funds.

27.  Furniture Use. During the Term of this Sublease, Sublessor shall provide
for Sublessee's use at the Premises, the items of furniture and equipment
currently used by Alloy employees at the Premises (the "Loaned Items").All other
items of furniture and equipment not currently used by Alloy employees at the
Premises (including all lobby and executive area artwork) shall be removed by
Sublessor, at its option, prior to January 1, 2004. Sublessee shall not remove
the Loaned Items from the Premises at any time during the Term. Sublessor makes
no warranty as to the quality or condition of the Loaned Items or the fitness of
the Loaned Items for Sublessee's use; except, however, Sublessor represents and
warrants that Sublessor has and will maintain good, clean and transferable
title, free and clear of debts and liens, on such Loaned Items. It is
Sublessee's responsibility to maintain and repair, as needed, the Loaned Items.
Provided that Sublessee does not breach the terms of this Sublease or otherwise
be in default, Sublessor agrees to transfer title and deliver to Sublessee the
Loaned Items at the end of the Term.

28.  Sale / Transfer of Title - Phones and Phone Switch.

     (a) Phones and Phone Switch. In consideration of Sublessee entering into
this Sublease, and upon receipt of final approval from Avaya, Sublessor agrees
to transfer title and deliver to Sublessee one Definity Telephone Switch
currently installed at the Premises, all phones currently used by an employee of
Alloy or an Alloy affiliate working at the Premises, and all software associated
with the Definity Telephone Switch. Sublessor makes no warranty as to the
quality or condition of the Definity Telephone Switch, phones and software or
the fitness of same for Sublessee's use. Should Sublessee be in default of the
terms of this Sublease and such default is not cured in accordance with the
terms of this Sublease, Sublessee agrees to pay to Sublessor the sum of $10,000
for the transfer of the Definity Telephone Switch. This shall be the exclusive
remedy available to Sublessor regarding the transfer of the Definity Telephone
Switch. Notwithstanding the foregoing, this remedy is in addition to any and all
other remedies available to Sublessor in the event of Sublessee's default of the
terms of this Sublease. Sublessor will begin coordinating with service providers
to move its lines off the Definity Telephone Switch upon signature of this
Sublease. Once Sublessor has coordinated with its service providers, Sublessor
will contact Sublessee to arrange a mutually agreeable date wherein Sublessor
will move its lines. Sublessor agrees to use its best efforts to complete this
by January 31, 2004.

     (b) Voicemail System. Sublessor agrees to remove its voicemail system on
the date that Sublessor's lines have been moved off of the Definity Telephone
Switch in accordance with the terms set forth in Paragraph 28 (a) above.

29.  Security System. The Premises is fully equipped with an alarm and card key
security system. It is Sublessee's option as to whether it wishes to utilize
these systems; however, Sublessee may not remove the existing system or install
a new system. Sublessor shall not be liable to Sublessee for any damages
whatsoever related to these systems or the operation/inoperation thereof.

30.  Default Under Lease. So long as Sublessee shall timely make the payment
required of it hereunder, Sublessor agrees to make timely all payments required
to be made under the Lease, as amended. Each party hereto agrees to refrain from
doing or causing to be done, or suffering or permitting to be done, any thing or
act which consul constitute a default under the Lease, as amended, or the rights
granted under the Lease, as amended, to be canceled or terminated, forfeited or
surrendered. Each party agrees that it will indemnify the other against any
direct loss, liability, and expense (including, without limitation, reasonable
attorney's fees and costs) arising out of any default under the Lease, as
amended, caused by the indemnifying party. Sublessor hereby irrevocably
authorizes and directs Sublessee, upon receipt of any written notice form the
landlord stating that a default exists in the performance of Sublessor's
obligations under the Lease, to pay to Landlord the rents due and to become due
under the Sublease. Tenant agrees that Sublessee shall have the right to rely
upon any such statement and request from Landlord, and the Sublessee shall pay
such rents to Landlord without any obligation or right to inquire as to whether
such default exists and notwithstanding any notice from or claim from Tenant to
the contrary and Tenant shall have no right or claim against Sublessee for any
such rents so paid by Sublessee. Within three (3) days after receipt by
Sublessor, Sublessor shall deliver to Sublessee any notices of default,
statements, bills and/or invoices Sublessor receives from Landlord under the
Lease to the extent Sublessee is responsible therefore or such notices,
statements, etc. reasonably could affect Sublessee.

31.  No Brokers. Both parties acknowledge that no real estate brokers and/or
agents are involved in this transaction.

32.  Non-waiver. The failure of either party hereto to enforce any provision of
this Sublease, or to restrict its performance hereunder to its obligations
stated herein shall not be construed as a waiver or modification of any
provision hereof nor shall it constitute a forfeiture by that party of any
rights to future enforcement of, or performance in accordance with any
provisions of this Sublease.



                                                                               5

<PAGE>

33.  Gender References. 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.

34.  Counterparts. This Sublease may be executed in counterparts, each of which
shall be considered an original, but all of which together shall constitute one
instrument. It shall only be necessary to account for one fully executed copy of
this Sublease to prove its contents.

35.  Choice of Law / Venue. This Sublease and the transactions herein
contemplated shall be construed in accordance with and governed by the laws of
the State of New Jersey, without reference to its conflicts of laws provisions.
Any and all causes of action arising out of this Sublease shall be brought in
the Superior Court of Middlesex County, New Jersey. The parties hereto have
participated fully in the negotiation and preparation of this Sublease and,
accordingly, this Sublease shall not be more strictly construed against one
party.

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

MarketSource, L.L.C. ("Sublessor")                360 Youth, LLC. ("Sublessee")

By: /s/ Frank Morelli                             By: /s/ Gina R. DiGioia
    -------------------                               ---------------------

Print Name: Frank Morelli                         Print Name: Gina R. DiGioia
            ----------------                                  ------------------

Title: President and CEO                          Title: Secretary
       -----------------                                 ----------



Approved:         Monica Levine ("Landlord")


                       /s/ Monica Levine
                       -----------------

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