Document:

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                                                                    Exhibit 10.7

                              OPERATING AGREEMENT

                                    BETWEEN

                        PITNEY BOWES CREDIT CORPORATION

                                      AND

                          PITNEY BOWES OFFICE SYSTEMS

                              DATED AND EFFECTIVE

                            AS OF SEPTEMBER 4, 2001
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                              OPERATING AGREEMENT

THIS OPERATING AGREEMENT dated and effective as of September 4, 2001  is made by
and between PITNEY BOWES CREDIT CORPORATION, a Delaware corporation ("PBCC"),
and PITNEY BOWES OFFICE SYSTEMS, INC. a Delaware corporation ("Office Systems").

WHEREAS, Office Systems is in the business, inter alia, of marketing certain
equipment, products or services  to creditworthy entities; and

WHEREAS, PBCC is in the business, inter alia, of providing financing to third
parties for the acquisition of equipment by rental, lease or lease-purchase, and
PBCC and Office Systems have agreed to enter into a business relationship
pursuant to which PBCC will provide financing to selected customers of Office
Systems to facilitate each such customer's acquisition of  Equipment by Lease;
and

WHEREAS, the parties desire to set forth in this Agreement the definitive terms
and conditions on which PBCC will provide financing to Lessees through Office
Systems' account executives, customer service representatives and other
employees or agents ("Marketers").

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are acknowledged, and intending legally to be bound, Office Systems and
PBCC hereby agree as follows:

1.  CERTAIN DEFINITIONS; INTERPRETATION.  (a) Unless the context otherwise
clearly requires, the following terms have the respective meanings set forth
below for all purposes of this Agreement:

"Acceptance Certificate" shall have the meaning assigned to such term in Section
7(c) hereof.

"Aggrieved Party" shall have the meaning assigned to such term in Section 23
hereof.

"Agreement" means this Operating Agreement between PBCC and Office Systems,
together with all exhibits and attachments hereto, as each may be supplemented
and amended from time to time in accordance with the terms hereof.

"Business Day" means any day of the week except Saturday, Sunday or any
statutory or civic holiday on which banks in New York, New York or Stamford,
Connecticut are permitted or required to close.

"Credit Request" means a fully completed request for financing under the
Financing Program, made by Office Systems on behalf of a customer of Office
Systems, and containing information relating to such customer's financial
status, credit history, form of organization and such other matters as may be
deemed necessary by PBCC to evaluate such customer's participation in the
Financing Program.

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"Defaulting Party" shall have the meaning assigned to such term in Section 23
hereof.

"EMA Contract" shall have the meaning assigned to such term in Section 12(a)
hereof.

"Effective Date" means the later of the date set forth above and the date on
which all of the legal and regulatory conditions precedent to the separation of
Office Systems from Pitney Bowes Inc. have been satisfied.

"Equipment" means all of the items of equipment, firmware and software leased to
a customer of Office Systems pursuant to a Lease, as more fully described in
such Lease.

"Fair Market Value" shall have the meaning assigned to such term in Section 16
hereof.

"Financing Program" means the business relationship established by this
Agreement, whereby PBCC will be the  primary exclusive provider of financing
for the acquisition by Lessees of Equipment, pursuant to the leasing programs
set forth in Exhibit B, which may be modified from time to time by mutual
agreement of the parties.

"LCR Purchase Price" shall have the meaning assigned to such term in Section 11
hereof.

"Lease" means each of the rental, lease or lease-purchase contracts, together
with all schedules, exhibits and attachments thereto, entered into from time to
time by PBCC, as lessor, and a customer of Office Systems, as lessee.

"Lessee" means each customer of Office Systems who obtains financing from PBCC
for its acquisition of Equipment pursuant to a Credit Request provided to PBCC
by Office Systems.

"Marketers" shall have the meaning assigned to such term in the recitals hereof.

"Responsible Officer" means an individual employee of a party who is
specifically authorized by such party to enter into agreements and make
decisions on behalf of such party.  The parties acknowledge and agree that a
Responsible Officer may be authorized only to the extent that an agreement or
decision relates to a particular subject matter or for a limited dollar amount.
Each party shall designate in writing to the other the name of the designating
party's Responsible Officer(s).

"Standard of Conduct" shall have the meaning assigned to such term in Section 22
hereof.

"Targeted Service Levels" shall have the meaning assigned to such term in
Section 19 hereof.

"Technical Services" shall have the meaning assigned to such term in Section 9
hereof.

"Termination Event" shall have the meaning assigned to such term in Section 23
hereof.

"Transition Period" means, with respect to the performance of any of the
obligations of a party hereunder, the period from the Effective Date through
December 31, 2001 or such later date as the parties may agree is applicable to a
specific obligation.

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     (b)  The following rules of interpretation apply:  (i) the term "including"
and its derivatives mean "including, without limitation" unless the context
clearly states otherwise; (ii) words importing the singular include the plural
and vice versa; (iii) words of the masculine gender shall be deemed to include
the correlative words of the feminine gender; (iv) words importing persons
include firms, associations, limited liability companies, partnerships, trusts,
corporations and other legal entities, including public bodies, as well as
natural persons; and (v) all references to a number of days mean calendar days,
unless expressly indicated otherwise.

2.  TERM; RELATIONSHIP.  (a)  This Agreement will begin on the date set forth
above and will continue for a period of   five years from the Effective Date,
unless earlier terminated in accordance with the terms hereof or extended by
mutual agreement of the parties.  Except as may be provided in Exhibit A hereto,
the terms of this Agreement will only apply to Leases entered into after the
Effective Date hereof.

      (b)  Either party may terminate this Agreement, effective as of any date
which falls not less than twelve months after the Effective Date, by giving not
less than three months prior written notice to the other of its election to so
terminate this Agreement.

     (c)  It is understood and agreed that at no time will this Agreement be
deemed to create a partnership, joint venture, syndication, employment contract
or any other relationship between the parties other than that of independent
contractors.  Neither party shall have the power to obligate or bind the other
party.  The parties agree that it is their intention that PBCC be the  primary
exclusive provider of financing to customers of Office Systems during the term
of this Agreement, it being understood and agreed that PBCC shall have a right
of first refusal to offer financing to customers of Office Systems for all
Leases of Equipment, as well as for all other programs and services from time to
time offered by Office Systems; provided, however, that PBCC shall have no right
of first refusal with respect to financing extended to a customer who has an
alternative financing source other than PBCC and has requested  that it receive
financing from such alternative source.  Further, it is the intention of the
parties that the terms on which PBCC offers lease financing to prospective
Lessees, including, without limitation, the pricing, service standards, advances
with respect to charges for equipment maintenance, fees, charges, residual
values and credit approvals and rates, will, taken as a whole, be competitive
with those offered by other lessors financing similar equipment under similar
circumstances; provided, however, that anything to the contrary contained herein
notwithstanding, the failure of PBCC to offer competitive pricing as aforesaid
shall not constitute a Termination Event: (i) during the Transition Period; (ii)
unless the same is material with respect to the Financing Program; and (iii)
until such time as the Chief Executive Officers of Pitney Bowes Inc. and Office
Systems shall have conferred and been unable to reach a satisfactory resolution
with respect to the relevant issues.

     (d)  Each of the parties acknowledges and agrees that:  (i) it will use
commercially reasonable efforts to cause the Financing Program established by
this Agreement to be successful and mutually beneficial to both parties; (ii) it
will deal openly and fairly with the other party in good faith; and (iii) it
will cause its Responsible Officers to establish clear objectives and
responsibilities with respect to the Financing Program.

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3.  EQUIPMENT.  (a)  The Equipment to be financed by PBCC pursuant to the terms
of this Agreement consists of copiers, multifunctional copiers and facsimile
machines, including those offered or sold by or through Office Systems, together
with related software, peripherals and system configurations, including trade-
ins, upgrades and other enhancements thereto or thereof, and such other products
and services as may from time to time be agreed in writing by PBCC and Office
Systems. Any such other products and services offered or sold by or through
Office Systems will be subject to the general terms and conditions of this
Agreement, but separate provisions relating to credit criteria, Lease terms and
pricing will be established by the parties with respect to the financing thereof
within sixty (60) days after Office Systems gives PBCC notice of its decision to
offer such other products and services.

     (b)  Upon request, PBCC may, in its sole discretion, extend the Financing
Program to include other vendors' equipment, products or services not otherwise
constituting "Equipment" but being acquired or refinanced simultaneously with
the Equipment.  If Office Systems, through acquisition, expansion or otherwise,
engages in different or additional Equipment, service or product areas, PBCC
shall have the right, but not the obligation, to be the primary exclusive
provider of financing for all such activities pursuant to the terms of this
Agreement, unless PBCC elects in writing not to do so.

     (c)  Prior to their execution and delivery of this Agreement, the parties
had conducted business together pursuant to various programs that are superseded
by this Agreement.  Annexed to this Agreement as Exhibit A are certain
provisions setting forth the agreement of the parties as to how they will
conduct their business during the Transition Period.

4.  MARKETING; LEASE TRAINING. Office Systems will, from time to time, solicit
the interest of prospective Lessees in the Equipment.  Office Systems' means of
solicitation may include, by way of example and not as limitation, the use of
mass mailing, direct marketing by its Marketers, web-enabled marketing, and the
use of third-party alliances.  PBCC shall have no obligation to solicit Lessees.
Upon the request of Office Systems, PBCC will provide training in leasing and
financing alternatives to Office Systems' Marketers, on such terms and
conditions as may be determined by mutual agreement of the parties.  All
marketing and promotional materials developed by the marketing group of Office
Systems and distributed to its sales force for use in connection with the
Financing Program, including  sales materials provided to its Marketers, and
inserts to be included in Lessees' invoices, must be approved in advance by
PBCC.  PBCC will have no liability with respect to the use by any Marketer of
any materials not approved by PBCC, nor any obligation to honor any commitments
purportedly incurred as a result of the use of such materials.

5.  CREDIT REQUESTS; CRITERIA AND PRICING.  (a)  Upon Office Systems'
identification of a prospective Lessee, Office Systems will provide PBCC with a
Credit Request with respect to such Lessee, in form and substance satisfactory
to PBCC, containing all requested information relating to the prospective Lessee
and detailing the specific Equipment in which such Lessee has an interest.  All
non-public information contained in any Credit Request will be held in
confidence by Office Systems and PBCC and will not be disclosed to any party
other than for the specific purpose of evaluating a prospective Lessee's
suitability for participation in the Financing Program.  Except as otherwise
permitted by the terms of this Agreement, neither

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Office Systems nor PBCC will share any lists of unique prospective or actual
Lessees with any unrelated third party, or with any affiliate that competes
directly with the products or services offered by the other party, without the
prior written consent of the other.

     (b)  PBCC will, in its sole discretion, establish credit criteria for
evaluating the Lessees seeking financing under the Financing Program.  All
Lessee Credit Requests will be reviewed promptly upon PBCC's receipt of all
requested information (which may include information concerning company
ownership, corporate structure and the like, in addition to credit information).
PBCC may from time to time enter into strategic alliances with other financing
sources that provide financing for lessees such as the Lessees, and PBCC may, at
its option, refer any Credit Request to such a financing source, it being
understood, however, that the referral of such Credit Request to such a
financing source shall not release PBCC from its obligations hereunder with
respect to such Credit Request and any financing furnished with respect thereto
nor shall it alter the rights and obligations of Office Systems with respect
thereto; provided, further, that PBCC may not refer any Credit Request to a
financing source that is a captive finance company of a competitor of Offices
Systems.  Unless otherwise specifically agreed in writing by PBCC, all credit
approvals will expire sixty (60) days following the date of approval.  Credit
Requests formally rejected by a Responsible Officer of PBCC in writing may be
restructured by Office Systems for resubmission to PBCC or may be submitted by
Office Systems, at its option, to a third party financing source.

     (c)  PBCC reserves the right, in its sole and absolute discretion, to
decline to provide financing to any prospective Lessee.  By way of example and
not as limitation, PBCC may decline to provide financing to any Lessee (i) whose
Credit Request is incomplete in any respect, (ii) whose credit does not meet the
established criteria for the applicable level of financial exposure, (iii) that
fails or refuses to execute and deliver all required Lease or credit
documentation, or (iv) the financing of which may expose PBCC to additional
licensing or other regulatory requirements in any jurisdiction.  Except for any
liabilities arising pursuant to Section 13 hereof, PBCC will have no liability
whatsoever for any loss, costs or expenses incurred or sustained by Office
Systems, any Marketer or any Lessee arising as a result of PBCC's denial of
financing to any Lessee.

     (d)  The pricing of each Lease will be determined by PBCC in its sole
discretion and may vary from time to time based on the term of the Lease or
other financing arrangement, the creditworthiness of the Lessee, the then-
prevailing interest rate environment, the estimated useful life and residual
value of the Equipment, transaction size and such other criteria as PBCC may
select.  PBCC will provide Office Systems from time to time with a schedule
setting forth the current pricing criteria and Lease rates.  PBCC may change its
pricing criteria and Lease rates at any time in its sole discretion, upon not
less than forty-five (45) days' prior written notice to Office Systems of any
such changes.  PBCC will not knowingly structure the pricing of any Lease so
that the implicit rate thereunder would constitute a rate in excess of that
permitted by applicable law.

     (e)  PBCC covenants and agrees that, provided (i) no event of default
exists under any Lease between PBCC and a Lessee and (ii) such Lessee meets
PBCC's then applicable credit criteria for the applicable level of financial
exposure, PBCC will provide additional financing to

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such Lessee throughout the term of this Agreement, whether for new Equipment,
upgrades and/or replacements, all on terms acceptable to PBCC in its sole
discretion.

6.  TRANSACTION FEES.  PBCC may elect to impose on prospective Lessees certain
fees, as determined from time to time, including such items as credit review,
documentation, filing fees, loss waiver, and third party financing, which fees
must be commensurate with standard industry practices.  All such fees will be
solely for the account of PBCC.  PBCC will provide Office Systems with a
schedule detailing all such fees, which may be changed at any time in PBCC's
sole discretion upon not less than seventy-five (75) days' prior written notice
to Office Systems.

7.  DOCUMENTATION.  (a)  All documentation to be used by Office Systems in
connection with the Financing Program will be provided by PBCC. Each Lease
shall: (i) except as otherwise prohibited by law, contain an evergreen clause
pursuant to which the term of the Lease shall automatically be extended from
time to time for additional one year periods unless the Lessee or PBCC gives
written notice to the other that the term will not be so extended not less than
sixty (60) days prior to the date as of which the Lease term is then scheduled
to expire; and (ii) make the Lessee responsible for any loss, damage or
destruction of the Equipment occurring after the delivery of the same to the
Lessee's site. Annexed to this Agreement as Exhibit C is a list of current
Financing Program documents.  Unless specifically agreed in writing by PBCC, all
Leases will be documented as noncancellable ("hell-or-high-water") net leases,
with fixed terms of a length to be determined by PBCC and Office Systems for
each Equipment or product line, containing industry-standard terms and
conditions.  The documentation will be in the name of PBCC as owner and lessor.
When Office Systems ceases to use the "Pitney Bowes" name, PBCC will modify the
form of Lease, the form of Acceptance Certificate and any other Financing
Program documents the preparation of which is its responsibility, at its
expense, as necessary to reflect a "private label" name selected by Office
Systems to be used exclusively by Office Systems and PBCC in connection with the
financing program, it being understood and agreed that PBCC's agreement to
modify such documentation will only apply to documentation relating to Leases
which are entered into after Office Systems gives PBCC notice of the "private
label" name so selected by Office Systems.

     (b)  Office Systems will prepare the Lease documents for execution by the
Lessee, using the forms provided by PBCC.  In addition to the Lease, each Lessee
will be required to provide evidence of its authority to enter into the Lease,
evidence of the authority of the person signing on its behalf and, if requested
by PBCC, UCC-1 financing statements in favor of PBCC (or written consent to
PBCC's execution of such financing statements on the Lessee's behalf) and
evidence of acceptable insurance coverage naming PBCC as an additional insured
and loss payee, and PBCC shall be solely responsible, and shall use commercially
reasonable efforts, to obtain such documents.  Office Systems shall have no
authority to make any substantive changes to the forms of Lease documents, and
PBCC will use commercially reasonable efforts to assist Office Systems in those
circumstances in which a Lessee seeks to negotiate any substantive terms and
conditions of the Lease.  Only the forms of documentation provided by PBCC will
be accepted by PBCC for financing, and, unless specifically approved in advance
in writing by a Responsible Officer of PBCC, no agreement, document,
certificate, side letter or other communication (whether written or oral) that
alters in any way the standard terms and conditions

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of the Lease in any respect will constitute a part of the Lease, nor will PBCC
honor, or have any obligation whatsoever to honor, any such terms or conditions,
as so altered, and Office Systems will be solely responsible for any loss, cost
or expense that PBCC suffers or incurs as a result of the alteration of any such
terms or conditions not so specifically approved by PBCC.

     (c)  PBCC will prepare an acceptance certificate (the "Acceptance
Certificate") for execution by the Lessee upon satisfactory installation of the
Equipment by Office Systems or another authorized Equipment installer.  The
Acceptance Certificate will evidence the Lessee's irrevocable acceptance of the
Equipment being financed.  The term of the Lease will begin on the date set
forth as the "Lease Commencement Date" in such Acceptance Certificate.  It is
the responsibility of PBCC to obtain the executed Acceptance Certificate from
the Lessee, and PBCC shall use commercially reasonable efforts to obtain the
same, but Office Systems agrees that, upon request, it will use commercially
reasonable efforts to assist PBCC in obtaining such Acceptance Certificate.

8.  PURCHASE DOCUMENTS; OWNERSHIP.  (a)  Upon the Lessee's execution of the
Lease and related documentation, PBCC may, at its option, enter directly into a
purchase agreement with the vendor of the Equipment (which may be Office Systems
or a third party vendor) or accept an assignment of an existing purchase
agreement between such vendor and either Office Systems or the Lessee.  Each
such agreement will provide that title to the Equipment will pass from the
vendor directly to PBCC, free and clear of all liens, claims and encumbrances
whatsoever, that the vendor will be relieved of all risk of loss, damage or
destruction of the Equipment once the Equipment has been installed and that PBCC
will be the beneficiary of all warranties made by the vendor of the Equipment.

     (b)  All right, title and interest in and to the Equipment financed by PBCC
shall be vested solely in PBCC as owner, free and clear of all liens, claims and
encumbrances whatsoever, and to the extent, if any, that any tax benefits may
accrue to an owner of equipment such as the Equipment, all of such benefits
shall be for the account of PBCC.  In filing its tax returns and maintaining its
books and records, Office Systems shall take no position that is contrary to the
foregoing, nor shall it take or omit to take any action, which act or omission
results in the disqualification of any Equipment from, or the recapture of, or a
change in the time at which PBCC may claim, all or any portion of such tax
benefits.  PBCC does not make, nor shall it be deemed to have made, any
representation or warranty to Office Systems with respect to the tax or
accounting treatment of any transaction contemplated by this Agreement.

9.  INSTALLATION; MAINTENANCE AND REPAIR.  Office Systems will be solely
responsible for the timely and satisfactory delivery and installation of the
Equipment at the Lessee's site.  From and after the delivery of the Equipment to
the Lessee's site and throughout the term of the Lease, any requests from the
Lessee for additional services to correct any installation or operating problems
and any requests for maintenance and/or repairs to the Equipment or any other
equipment leased in connection therewith (together, such installation,
operations, maintenance and/or repair, the "Technical Services") shall be the
sole responsibility of Office Systems, and PBCC shall have no liability
whatsoever to provide, or cause to be provided, nor shall it have any liability
in any way relating to the provision or performance of, any Technical Services
relating to the Equipment or to any other equipment leased in connection

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therewith.  Office Systems agrees to provide, or cause its Marketers or other
authorized Technical Services providers to provide, any and all such Technical
Services to each Lessee upon request or in accordance with any Technical
Services contract entered into with respect to the Equipment.  No failure of
Office Systems or any other party to provide Technical Services to any Lessee
shall entitle such Lessee to delay, withhold or otherwise offset or modify the
fixed payments of rent due under its Lease with PBCC.

10.  INVOICES AND FUNDING  Office Systems will provide, or if it is not the
vendor of the Equipment, will cause the vendor to provide, a detailed invoice in
PBCC's name describing the Equipment and the purchase price therefor (including
applicable taxes, if any) and certifying that all such Equipment has been
delivered to the Lessee, was inspected and installed to the Lessee's
satisfaction and is functioning in accordance with its published specifications,
as the same may be modified by specific agreement between the Lessee and Office
Systems.  Upon receipt of the Equipment invoice, PBCC will remit the purchase
price of the Equipment directly to Office Systems or, if the Equipment is being
furnished by a vendor other than Office Systems, such other vendor, as directed
by Office Systems to an account established by Office Systems or such other
vendor, which account of Office Systems may be changed from time to time by
written notice from Office System's Responsible Officer to PBCC.  The parties
will agree from time to time as to any additional compensation arrangements.

11.  LEASE CANCELLATION REQUESTS.  If, within thirty (30) days following the
payment by PBCC of the purchase price of any Equipment, the Lessee requests a
lease cancellation alleging missing, malfunctioning, nonconforming or
nonfunctioning Equipment, PBCC will give Office Systems written notice of such
fact containing: (i)  such information with respect to the problem(s) raised by
the Lessee of which PBCC has received notice from the Lessee; and (ii) the LCR
Purchase Price, which  shall be the amount that Office Systems will be required
to remit to PBCC should such the Lease be cancelled.  Office Systems will have
twenty (20) Business Days from its receipt of such notice to correct such
Equipment deficiency to Lessee's satisfaction at Office Systems' own cost and
expense.  If Office Systems fails or refuses to do so within such timeframe,
Office Systems will purchase the Equipment from PBCC for a purchase price (the
"LCR Purchase Price") equal to (i) the sum of (x) the amount paid by PBCC in
respect of the purchase price of the Equipment, (y) any additional compensation
paid by PBCC to Office Systems in respect of such Lease and (z) any EMA Contract
advances or other amounts paid by PBCC to Office Systems in respect of such
Lease, plus (ii) interest on such total amount for the number of days elapsed
       ----
between the date of funding and the date of such purchase, calculated at a rate
per annumagreed to from time to time by the parties, less (iii) any Lease
                                                     ----
payments actually received by PBCC from the Lessee and permitted to be retained
by PBCC (i.e., not paid back, or required to be paid back, to the Lessee or paid
over to Office Systems), such amount to be paid no later than the tenth day
after the expiry of such twenty (20) Business Day period.  Upon receipt of such
amount, PBCC will convey the Equipment to Office Systems on an "as is, where is"
basis, without recourse or warranty, other than as to the absence of liens
created by PBCC (other than the Lease, if Office Systems and the Lessee elect to
continue the Lease).  Notwithstanding anything contained herein to the contrary,
if, within thirty (30) days following the payment by PBCC of the purchase price
of any Equipment, a Lessee

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requests the cancellation of a Lease for any reason, PBCC shall notify Office
Systems of such request and shall, upon the request of Office Systems, agree to
the cancellation of the Lease, whereupon Office Systems shall be required to pay
to PBCC the LCR Purchase Price within ten days after such cancellation, and
receipt of said payment shall be PBCC's sole and exclusive remedy for such
cancellation.

12.  EMA CONTRACTS; ADVANCES BY PBCC.  (a)  If Office Systems and the Lessee
enter into a maintenance, service and supply contract (an "EMA Contract"),
Office Systems will, in the event that Office Systems requests PBCC to pay to
Office Systems the amount of EMA Contract charges payable under a Lease before
it actually receives the payment of EMA Contract charges from the Lessee, assign
to PBCC all of Office Systems' rights under the EMA Contract, but none of its
obligations.  The Lease shall contain a provision which states that Lessee
acknowledges  that PBCC is entitled to collect from the Lessee all amounts
payable by the Lessee under such EMA Contract.  Each EMA Contract will set forth
in detail the nature and amount of any charges thereunder to be included on the
Lessee's invoice.  All EMA Contract base charges will be invoiced together with
the Lessee's regularly scheduled Lease payments, either separately stated or
included as a component of the rent payment due.  The failure of a Lessee to
make timely payment of any such EMA Contract charges will constitute a default
under both the EMA Contract and the Lease, as to which PBCC will have all of the
same rights and remedies that it has with respect to any other Lease default.
PBCC may charge the Lessee for late fees or interest on any unpaid EMA Contract
charges in accordance with the terms of the applicable EMA Contract or the
Lease, as applicable. Office Systems covenants and agrees that it will fully
perform all of its obligations under each EMA Contract.

  (b)  As an administrative convenience to Office Systems, PBCC agrees that,
during the term of this Agreement, Office Systems may invoice PBCC quarterly in
advance for an amount equal to the aggregate amount of EMA Contract charges
scheduled to be paid by a Lessee during such quarter, and PBCC will pay Office
Systems an amount equal to such aggregate EMA Contract charges.  PBCC shall have
no obligation to pay Office Systems any such amounts with respect to any  Lease
the rent payments or EMA Contract charges under which are 60 days in arrears at
the time such advance is scheduled to be made to Office Systems until such rent
payments or EMA Contract charges are brought current by the Lessee. Office
Systems shall, upon demand by PBCC, reimburse PBCC for any advances of EMA
Contract charges made to Office Systems by PBCC and not collected by PBCC from a
Lessee, and PBCC shall be entitled to set off the obligation of Office Systems
to reimburse PBCC for such advances against PBCC's obligation to make further
advances of EMA Contract charges hereunder, it being understood and agreed that
the provisions of this sentence shall survive the termination or expiration of
this Agreement.   Following its  advance to Office Systems of EMA Contract
charges under a Lease, PBCC will be entitled to retain all EMA Contract charges
received from a Lessee during the applicable quarter, together with any late
fees or interest thereon.

     (c)  The parties acknowledge and agree that the provisions of this Section
12 are subject to periodic review by PBCC and Office Systems as payment trends
and credit risks are identified in the portfolio of Leases originated and
financed hereunder.

13.  INDEMNIFICATION.  Office Systems shall indemnify and hold harmless PBCC,
its

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stockholders, officers, directors, representatives, and employees (each, an
"Indemnitee") from and against any and all claims, actions, suits, proceedings,
costs, expenses, damages and liabilities, including reasonable fees and expenses
of counsel, arising out of, connected with, or resulting from: (i) the breach by
Office Systems of any representation, warranty, covenant or agreement made by it
or binding on it hereunder; (ii) the failure by Office Systems to perform its
obligations hereunder; (iii) the Equipment or any other equipment leased under
any Lease, including without limitation the manufacture, delivery, installation
or return to Office Systems of the Equipment or said equipment or otherwise on
account of any personal injury or death or damage to property occasioned by the
Equipment or said equipment;  (iv) the negligence or misconduct of employees,
servants or agents of Office Systems, including any Marketer; (v)  the provision
of, or failure of Office Systems, any Marketer or any other Technical Services
provider to provide, Technical Services with respect to the Equipment or said
equipment, as required by and in accordance with the terms of an EMA Contract;
or (vi) any infringement or alleged infringement of the intellectual property
rights of any third party occasioned by the operation of the Equipment or any of
said equipment ("Infringement"). Notwithstanding the foregoing, the obligation
of Office Systems to indemnify PBCC for claims based on misrepresentation(s) by
an Office Systems' sales representative in the procurement of a Lease shall only
arise if: (i) a lawsuit based on such misrepresentation(s) is filed by a Lessee
against PBCC; or (ii) a defense based on such misrepresentation(s) is asserted
by a Lessee in a lawsuit brought by PBCC against such Lessee to enforce the
terms of the Lease.  PBCC agrees to promptly notify Office Systems in writing of
any matters in respect to which the foregoing indemnity may apply, and Office
Systems shall be relieved of its obligations under this Section 13 to the extent
it is prejudiced by PBCC's failure to timely notify it of such matter.  Office
Systems shall have the exclusive right to control and conduct the defense and
settlement of all such claims or actions.  PBCC agrees to provide such
assistance, at Office Systems' expense, as may be reasonably required by Office
Systems in connection with such settlement or defense.  If final judgment shall
be obtained enjoining PBCC's use or operation of the Equipment or equipment, as
the case may be, or any part thereof, by reason of such Infringement or, if in
Office Systems' opinion, the Equipment or equipment, as the case may be, is
likely to become subject to a claim of Infringement, Office Systems shall, at
its sole expense and option: (a) modify the Equipment or equipment, as the case
may be, so that it becomes non-infringing without materially altering its
capacity or performance; (b) procure for PBCC the right to continue to use the
Equipment or equipment, as the case may be: or (c) substitute for the infringing
Equipment or equipment, as the case may be, other equipment having a capability
equivalent to such Equipment or equipment.  If Office Systems is unable to take
any of the measures specified in  (a) through (c) above, then Office Systems
will remove the infringing Equipment or equipment, at its sole cost and expense,
and shall pay to PBCC the Fair Market Value thereof plus any applicable taxes.
Office Systems shall have no liability with respect to any such claim or action
to the extent caused by the combination, operation or use of the Equipment with
any equipment, device, or alteration to the Equipment not made or authorized in
writing by Office Systems. PBCC shall indemnify and hold harmless Office
Systems, its stockholders, officers, directors, representatives, and employees
from and against any and all claims, actions, suits, proceedings, costs,
expenses, damages and liabilities, including reasonable fees and expenses of
counsel, arising out of, connected with, or resulting from:  (i) the breach by
PBCC of any representation, warranty, covenant or agreement made by it or
binding on it hereunder; (ii) the failure by PBCC to perform its obligations
hereunder; or (iii)

                                       10
<PAGE>

any denial of financing to an applicant where such denial violates applicable
law. The provisions of this Section 13 shall survive the termination or
expiration of this Agreement.

Notwithstanding the foregoing and except as provided in Section 12(b) of this
Agreement, PBCC will have no recourse to Office Systems for any payment default
under any Lease; provided, however, that, with respect to all Lessees other than
Lessees under a Trade-Up Lease (as described below), Office Systems agrees to
indemnify PBCC for any loss (such loss to be the  LCR Purchase Price) resulting
from a Lessee's failure to pay the first scheduled rent payment under its Lease
within sixty (60) days from the due date for such payment.

14.  TRADE-UPS, SUBSTITUTIONS AND COMPETITIVE BUY-OUTS.  (a)  So long as no
event of default exists under an existing Lease (including a default under any
lease financed by PBCC on behalf of Office Systems prior to the Effective Date),
PBCC, at the request of a Lessee or Office Systems, may agree to certain
modifications to a Lease and the Equipment subject thereto.  Such modifications
may involve (i) an addition to and/or modification of such Equipment,
accomplished by a change in size, capacity, utility, speed or power that shall
not require the removal of the original Equipment from Lessee's premises (a
"retained base in-place" or "RBI" trade-up; for purposes of this Agreement, a
"Trade-Up"), (ii) a deletion from or replacement of all or any portion of said
Equipment (a "pick-up" trade-up; for purposes of this Agreement, an "Equipment
Substitution"), or (iii) a purchase or substitution of equipment offered by a
competitive vendor in order to lease Equipment to the Lessee (a "Competitive
Buy-Out").

     (b)  Provided (i) no event of default exists under any Lease or other
agreement between the Lessee and PBCC and (ii) the Lessee meets the then
applicable credit criteria for the applicable level of financial exposure, PBCC
will enter into a new or amended Lease with such Lessee, on such terms and
conditions as may then be customary for financings under this Agreement.  In the
case of Trade-Ups, any new Lease will include both the existing Equipment and
the Equipment provided pursuant to the Trade-Up.  Should an existing lease cover
more than a single unit of equipment, the lessee shall have the option of adding
the equipment not provided pursuant to the  Trade-Up or Equipment Substitution,
as the case may be, to the new Lease, or keeping it under the existing lease.

     (c)  Office Systems and PBCC will from time to time establish mutually
agreeable pricing criteria for Trade-Up Leases and Equipment Substitution Leases
to account for the inclusion in the new Lease of the remaining payments due
under the existing Lease and any EMA Contract charges, as well as the payments
due with respect to such Trade-Up or Equipment Substitution, as the case may
be.  If a Lessee requests a Lease buy-out quotation from PBCC in order to
replace Equipment with equipment offered by a competitive vendor, PBCC will
notify Office Systems in writing via e-mail or facsimile within one (1) Business
Day of such request in order to enable Office Systems to take appropriate
marketing steps, and PBCC shall mail such buy-out quotation to Lessee five (5)
Business Days after Office Systems has received such notice from PBCC.

15.  LEASE ADMINISTRATION.  (a)  As owner and lessor, PBCC will administer all
Leases financed pursuant to this Financing Program, including booking the Leases
on PBCC's lease

                                       11
<PAGE>

administration system, billing and collecting rents, monitoring collections and,
to the extent permitted by applicable law, reporting and remitting applicable
sales or use taxes (if any). PBCC will provide Office Systems with periodic
reports with respect to the Leases and the Lessees; attached as Exhibit D is a
list of such reports. Office Systems will provide PBCC with any information or
technical assistance reasonably deemed necessary by PBCC to effect the Lease
transactions contemplated by this Agreement or to enable PBCC to administer the
Lease portfolio.

     (b)  Office Systems will have no right or obligation to administer any
Lease, to accept payments thereunder, to monitor collections or to exercise any
remedies upon a default. Office Systems will not purport to amend, alter,
modify, release, waive or discharge any term or condition of the Lease without
the prior written consent of a Responsible Officer of PBCC, which may be given
or withheld in PBCC's sole discretion, and any such action by Office Systems in
the absence of such consent shall be void and of no effect. During the term of
this Agreement, Office Systems will retain "query" and "view only" access to
PBCC's lease administration systems.

     (c)  PBCC may sell its portfolio of Leases to a third party provided: (i)
such third party is not a competitor or a captive finance company of a
competitor of Offices Systems; and (ii) the third party agrees to be bound by
the terms and conditions of this Agreement as they pertain to the Leases, which
terms and conditions shall remain in full force and effect as set forth herein;
provided, however,  that if the Agreement is terminated by PBCC pursuant to
Section 2(b) hereof or by Office Systems pursuant to Section 24 hereof, PBCC
will give notice in writing to Office Systems of any definitive offer made by a
third party to purchase the portfolio during the six-month period following such
termination, such notice to be given within ten days after receipt by PBCC of
such definitive offer,  and Office Systems or its designee shall have the right
to match the terms of the offer made by any such third party during the sixty-
day period following the receipt by Office Systems of such notice from PBCC by
submitting a definitive offer to purchase on the same terms as that previously
submitted by such third party during such sixty-day period.  In the event Office
Systems or such designee, as the case may be, elects to match such definitive
offer, PBCC will sell the portfolio to Office Systems or such designee, as the
case may be, on the terms  offered by such third party to PBCC.  The terms of
clause (i) above shall survive the termination or expiration of this Agreement
unless this Agreement is terminated by PBCC pursuant to Section 24 hereof.

16.  RIGHTS ON LESSEE DEFAULT.  (a)  Upon the occurrence of an event of default
under any Lease or any separate EMA Contract, PBCC shall have all of the rights
and remedies available to it as lessor or otherwise thereunder and under any
applicable law.  PBCC will give Office Systems notice of any Lease as to which
PBCC intends to exercise its right to repossess the Equipment, and Office
Systems will have the right, but not the obligation, to purchase the Equipment
at the Fair Market Value thereof upon such repossession or the surrender thereof
by the Lessee plus any applicable taxes.  The term "Fair Market Value" as used
in this Agreement means, as of the date on which the same is being calculated,
the greater of: (i) the book value of the Equipment; and (ii) the cash purchase
price (exclusive of any taxes) that would be obtained in an arms' length
transaction between a knowledgeable seller under no compulsion to sell and a
knowledgeable buyer (other than a used equipment dealer or a lessee in
possession) under no

                                       12
<PAGE>

compulsion to purchase.

  (b)  Following any such event of default, Office Systems will, at PBCC's
request and expense, arrange to deinstall, pack, insure and transport such
Equipment to Office Systems' facilities or such other location as PBCC shall
designate.  Upon PBCC's request, Office Systems will store the Equipment at its
facilities, in the condition in which it was received from the Lessee's site,
without charge for a period ending on the day which falls thirty (30) days after
the later of: (i) the day on which PBCC has received written notice from Office
System that Office Systems will not purchase the Equipment; and (ii) the day on
which Office systems has received the Equipment at its facilities, and
thereafter PBCC shall pay to Office Systems storage charges at the rate of $2.50
per day per unit of Equipment.  Office Systems will give written notice to PBCC
as to whether or not it will purchase the Equipment  within twenty (20) Business
Days following its receipt of such Equipment at its facilities or its inspection
of the Equipment at such other location, whichever is earlier.  The failure to
give such notice within such period shall be deemed to be an election to not
purchase the Equipment.  If Office Systems elects to purchase the Equipment, it
will pay PBCC the Fair Market Value thereof  (plus applicable taxes, if any)
within five (5) Business Days following its notice to PBCC of its election to
purchase the Equipment.   If Office Systems does not exercise its right to
purchase the Equipment, it will continue to store such Equipment at the rate set
forth above for a period of  180 days.

17.  END OF LEASE TERM.  (a)  PBCC will give Office Systems written notice of
the impending termination of each Lease not less than nine (9) months prior to
its scheduled termination date (the "EOL Date").  In addition to its customary
Lease administration duties, PBCC will initiate Lessee retention efforts no
earlier than thirty (30) days prior to the EOL Date and will advise Office
Systems of the results of such efforts.  If prior to the EOL Date, the Lessee
does not elect to acquire the Equipment, extend the Lease or exercise such other
options as may be available to it under the terms of the Lease, PBCC will give
Office Systems notice of the availability of the Equipment for purchase, and
Office Systems will have the right, but not the obligation, to purchase the
Equipment on or after such EOL Date at the Fair Market Value thereof plus any
applicable taxes.

  (b) At the end of the Lease term, Office Systems will, at PBCC's request and
expense, arrange to deinstall, pack, insure and transport such Equipment to
Office Systems' facilities or such other location as PBCC shall designate.  Upon
PBCC's request, Office Systems will store the Equipment at its facilities, in
the condition in which it was received from the Lessee's site, without charge
for a period ending on the day which falls thirty (30) days after the later of:
(i) the day on which PBCC has received written notice from Office Systems that
Office Systems will not purchase the Equipment; and (ii) the day on which Office
Systems has received the Equipment at its facilities, and thereafter PBCC shall
pay to Office Systems storage charges at the rate of $2.50 per day per unit of
Equipment.  Office Systems will give written notice to PBCC as to whether or not
it will purchase the Equipment within twenty (20) Business Days following its
receipt of such Equipment at its facilities or its inspection of the Equipment
at such other location , whichever is earlier.  The failure to give such notice
within such period shall be deemed to be an election to not purchase the
Equipment.  If Office Systems elects to purchase the Equipment, it will pay PBCC
the Fair Market Value thereof (plus applicable taxes, if any) within five (5)
Business Days following its  notice to PBCC of its election to purchase the
Equipment.

                                       13
<PAGE>

If Office Systems does not exercise its right to purchase the Equipment, it will
continue to store such Equipment at the rate set forth above for a period of 180
days.

18.  RENEWALS AND EXTENSIONS; REMARKETING. Following the Transition Period, all
Equipment remarketing  will be the responsibility of PBCC, unless otherwise
agreed by the parties.  To facilitate the development by PBCC of its remarketing
capabilities, the parties have agreed to provide for Office Systems to engage in
certain remarketing efforts with respect to any Leases whose terms are scheduled
to expire on or before December 31, 2001, all as more fully described in Exhibit
A hereto.

19.  TARGETED SERVICE LEVELS.  Each of the parties will use its commercially
reasonable efforts to ensure that the Financing Program contemplated by this
Agreement meets objective criteria established by the parties from time to time.
The Financing Program objectives and performance standards (the "Targeted
Service Levels") will be established by PBCC and Office Systems quarterly.

20.  REPRESENTATIONS AND WARRANTIES OF PBCC.  PBCC represents and warrants to
Office Systems as follows:

     (a)  Due Organization.  PBCC is a corporation duly organized and validly
          ----------------
existing in good standing under the laws of the State of Delaware, is and will
remain duly qualified to do business as a foreign corporation in each other
jurisdiction in which the conduct of its business or the ownership of its
property requires it to be so qualified, and has the corporate power and
authority to carry on its business as currently conducted, to execute, deliver
and perform this Agreement and to consummate the transactions contemplated
hereby.

     (b)  Authorized and Binding Obligations.  This Agreement constitutes the
          ----------------------------------
duly authorized, legal, valid and binding obligation of PBCC, enforceable
against PBCC in accordance with its terms, except as such enforceability may be
limited by bankruptcy, insolvency, moratorium and other laws affecting
creditors' rights and remedies and by the application of equitable principles
and remedies.

     (c)  Litigation. There is no action, suit, investigation or proceeding by
          ----------
or before any court, arbitrator, administrative agency or other governmental
authority pending or, to the knowledge of PBCC, threatened against or affecting
PBCC which, if adversely determined, could have a material adverse effect on the
financial condition, business or operations of PBCC or its ability to perform
under this Agreement.

     (d)  No Breach or Violations.  The execution and delivery of this Agreement
          -----------------------
do not, and the performance of and compliance with the terms and provisions
hereof will not, (i) constitute a breach or violation of the terms, conditions
or provisions of, nor constitute a default under or conflict with, the
certificate of incorporation or bylaws of PBCC or any terms, conditions or
provisions of any promissory note, lease, indenture or other agreement or
instrument, stay, injunction, award or decree of any governmental body,
administrative agency or court to which PBCC is a party or by which PBCC or its
property may be bound or (ii) violate any provision of any law or administrative
regulation applicable to, or any court decree issued with respect to,

                                       14
<PAGE>

PBCC. Neither PBCC nor any of its employees or agents has taken any action or
omitted to take any action, the taking or omission of which would constitute
fraud or a violation of the Foreign Corrupt Practices Act or any similar law in
any applicable jurisdiction.

21.  REPRESENTATIONS AND WARRANTIES OF OFFICE SYSTEMS.  Office Systems
represents and warrants to PBCC as follows:

     (a)  Due Organization.  Office Systems is a corporation duly organized and
          ----------------
validly existing in good standing under the laws of the State of Delaware, is
and will remain qualified to do business as a foreign corporation in each other
jurisdiction in which the conduct of its business or the ownership of its
property requires it to be so qualified, and has the corporate power and
authority to carry on its business as currently conducted, to execute, deliver
and perform this Agreement and to consummate the transactions contemplated
hereby.

     (b)  Authorized and Binding Obligations.  This Agreement constitutes the
          ----------------------------------
duly authorized, legal, valid and binding obligation of Office Systems,
enforceable against Office Systems in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, moratorium and other
laws affecting creditors' rights and remedies and by the application of
equitable principles and remedies.

     (c)  Litigation. There is no action, suit, investigation or proceeding by
          ----------
or before any court, arbitrator, administrative agency or other governmental
authority pending or, to the knowledge of Office Systems, threatened against or
affecting Office Systems which, if adversely determined, could have a material
adverse effect on the financial condition, business or operations of Office
Systems or its ability to perform under this Agreement.

     (d)  No Breach or Violations.  The execution and delivery of this Agreement
          -----------------------
do not, and the performance of and compliance with the terms and provisions
hereof will not, (i) constitute a breach or violation of the terms, conditions
or provisions of, nor constitute a default under or conflict with, the
certificate of incorporation or bylaws of Office Systems or any terms,
conditions or provisions of any promissory note, lease, indenture or other
agreement or instrument, stay, injunction, award or decree of any governmental
body, administrative agency or court to which Office Systems is a party or by
which Office Systems or its property may be bound or (ii) violate any provision
of any law or administrative regulation applicable to, or any court decree
issued with respect to, Office Systems.

     (e)  Lessee Documents.  As a continuing representation throughout the term
          ----------------
of this Agreement, with respect to each transaction from time to time proposed
by Office Systems hereunder, (i) all EMA Contract documents are accurate and
complete, and all modifications, waivers, releases, special terms,
understandings, amendments and/or agreements (written or oral) between Office
Systems and the Lessee, or made by Office Systems to the Lessee, or in any way
whatsoever relating to the Lease, the Lessee, the EMA Contract, the Credit
Request or the Equipment, have been fully disclosed and provided to PBCC; (ii)
as of the date set forth in the Office Systems invoice to PBCC, the Equipment
described in the Lease has been delivered to the Lessee and has been installed;
(iii) neither Office Systems nor any of its employees or agents has taken any
action or omitted to take any action, the taking or omission of which would
constitute

                                       15
<PAGE>

fraud or a violation of the Foreign Corrupt Practices Act or any similar law in
any applicable jurisdiction; (iv) upon payment in full of the purchase price of
the Equipment to Office Systems or its designee, PBCC shall have full legal and
beneficial title to such Equipment, free and clear of all liens, claims and
encumbrances, other than the leasehold interest of the Lessee under the Lease;
(v) Office Systems has performed and, provided that a Lessee is not in default
under any Lease or any EMA Contract, will continue to perform, in all material
respects, its obligations under each EMA Contract except to the extent that
Office Systems' failure to perform is not material and would not adversely
affect PBCC's rights and interests under any Lease, and no event of default by
Office Systems exists under any EMA Contract which would adversely affect PBCC's
rights and interests under any Lease; and (vi) to the best knowledge of Office
Systems, no Credit Request contains an untrue statement of a material fact or
omits to state any material fact necessary in order to make the statements
therein not misleading.

22.  STANDARD OF CONDUCT.  PBCC shall perform its obligations hereunder in
accordance with applicable law and with standards and procedures customarily
used by other prudent persons in the business of originating, servicing and
administering assets similar to the Leases and, to the extent consistent with
such terms, in the same manner in which, and with the same care, skill, prudence
and diligence with which, it originates, services and administers leases of
similar credit quality for itself or others, if any, but in any event, with no
less care, skill, prudence and diligence than the customary and usual standards
of practice of prudent institutional small and middle ticket equipment finance
lease companies and, in each case, taking into account its other obligations
hereunder (the "PBCC Standard of Conduct").  Office Systems shall perform its
obligations hereunder in accordance with applicable law and with standards and
procedures customarily used by other prudent persons in the business of selling
and servicing Equipment and, to the extent consistent with such terms, in the
same manner in which, and with the same care, skill, prudence and diligence with
which, it sells and services Equipment for itself or others, if any, but in any
event, with no less care, skill, prudence and diligence than the customary and
usual standards of practice of prudent institutional small and middle ticket
equipment sales companies and, in each case, taking into account its other
obligations hereunder (the "PBOS Standard of Conduct").  (the PBOS Standard of
Conduct and the PBCC Standard of Conduct are collectively referred to herein as
the "Standard of Conduct")

23.  TERMINATION EVENTS.  Upon the occurrence of any of the following events
(each,  a "Termination Event") and whether any such Termination Event shall be
voluntary or involuntary or come about or be effected by operation of law or
pursuant to or in compliance with any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body, the
non-defaulting party (as the case may be, the "Aggrieved Party") may elect to
terminate this Agreement in accordance with Section 24 hereof:

     (a)  a party (the "Defaulting Party") fails to comply with the applicable
Standard of Conduct and such failure continues unremedied for a period of twenty
(20) days (or such longer period as determined by the Aggrieved Party) after the
date on which written notice of such failure describing the nature of such
failure and requesting the same to be remedied shall have been given to the
Defaulting Party by the Aggrieved Party; or

     (b)  the Defaulting Party fails to meet the Targeted Service Levels for two
(2) consecutive

                                       16
<PAGE>

fiscal quarters; or

     (c)  the Defaulting Party fails to observe or to perform in any material
respect any of its other covenants or agreements set forth herein, which failure
shall (i) materially and adversely, in the reasonable judgment of the Aggrieved
Party, affect the rights of the Aggrieved Party hereunder or under any Lease and
(ii) continue unremedied for a period of thirty (30) days (or such longer period
as determined by the Aggrieved Party) after the date on which written notice of
such failure requesting the same to be remedied shall have been given to the
Defaulting Party by the Aggrieved Party; or

     (d)  the Defaulting Party fails generally to pay its debts as they become
due; or its dissolution, termination of existence, or discontinuance of
business; or the insolvency, business failure or appointment of a receiver of
any part of such party's property, or an assignment by such party for the
benefit of creditors, or the commencement by or against it of any proceedings
under any bankruptcy, reorganization or arrangement laws and, in the case of any
involuntary proceedings, the continuance of such proceedings unstayed and in
effect for sixty (60) days, or the assumption of custody or control by any court
of competent jurisdiction over any substantial portion of the Defaulting Party's
property, and the same remaining in force unstayed or unterminated for sixty
(60) days; or

     (e)  the Defaulting Party (i) enters into any transaction of merger or
consolidation or any commitment with respect thereto, unless it is the surviving
corporation, after giving effect to such merger or consolidation, its tangible
net worth is equal to or greater than that which existed immediately prior to
the merger or consolidation and the ratio of its debt to tangible net worth is
not greater than that which existed immediately prior to the merger or
consolidation and the person with whom it merges or consolidates is not a
competitor of the other party; (ii) sells, transfers, or otherwise disposes of
all or substantially all of its assets; (iii) permits any substantial change in
the ownership or control of its capital stock; or (iv) changes the form of
organization of its business.

24.  REMEDIES; WAIVERS.  (a)  Upon the occurrence of a Termination Event (and
following any grace period applicable thereto), the Aggrieved Party may
terminate this Agreement by giving the Defaulting Party not less than thirty
(30) days' written notice, whereupon all rights of such Defaulting Party under
this Agreement (other than such rights as shall have already vested hereunder),
whether with respect to the Leases, the Equipment or otherwise, shall terminate
without further action.  Notwithstanding the foregoing, each party shall be
entitled to all amounts payable to it under this Agreement accruing prior to the
date of termination of this Agreement and Office Systems shall be entitled to
receive EMA Contract charges accruing after the date of termination of this
Agreement with respect to Leases entered into during the period commencing on
the Effective Date and ending on the date of termination of this Agreement at
any time thereafter, the Aggrieved Party may proceed by appropriate court
action, either at law or in equity, to enforce performance by the Defaulting
Party of the applicable covenants of this Agreement or to recover damages for
the breach thereof and may exercise any and all other rights accruing to it
under any applicable law upon a default by a contracting party.

     (b)  Either party may waive in writing any default by the other in the
performance of its

                                       17
<PAGE>

obligations hereunder and its consequences. Upon any such waiver of a past
default, such default shall cease to exist, and any Termination Event arising
therefrom shall be deemed to have been remedied for every purpose of this
Agreement. No such waiver shall extend to any subsequent or other default or
impair any right consequent thereon.

     (c) Neither party shall be liable one to the other, for any special,
indirect, incidental, punitive, exemplary or consequential damages (including
without limitation loss of profits) arising out of or in connection with this
Agreement, the Equipment and servicing thereof.

25.  NOTICES; RESPONSIBLE OFFICERS.  (a)  Any demand, notice or instruction to
be given hereunder shall be in writing and addressed to the applicable party at
the address stated on the signature page of this Agreement, or at such other
address as such party may designate from time to time by written notice given in
accordance with this Section 25.  Except as otherwise expressly provided in this
Agreement, notices hereunder shall be deemed given and effective (i) if
personally delivered, upon delivery, (ii) if sent by overnight rapid-delivery
service with tracking capabilities, upon receipt; (iii) if sent by facsimile,
telex, telecopier, or electronic mail, at such time as the party that sent the
notice receives confirmation of receipt by the applicable method of transmittal,
or (iv) if sent by certified or registered mail, within five (5) days of deposit
in the mail.

  (b)  Each of the parties will designate to the other in writing the names of
one or more Responsible Officers who have authority to act on its behalf,
specifying the extent of such authority and any restrictions thereon.

26.  GOVERNING LAW; SERVICE OF PROCESS; WAIVER OF JURY TRIAL.  (a)  THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS, WITHOUT REGARD TO
THE CONFLICT OF LAW PROVISIONS OF ANY STATE.

     (b)  THE PARTIES HERETO HEREBY AGREE THAT ALL SERVICE OF PROCESS MAY BE
MADE BY REGISTERED MAIL DIRECTED TO THE ADDRESSES SET FORTH ON THE SIGNATURE
PAGE HEREOF AND THAT SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETE UPON RECEIPT
THEREOF.  EACH PARTY HERETO HEREBY WAIVES ANY OBJECTION IT MAY HAVE BASED ON

FORUM NON CONVENIENS AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED
--------------------
HEREUNDER AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF DEEMED
APPROPRIATE BY A COURT.  NOTHING IN THIS SECTION 26 SHALL AFFECT THE RIGHTS OF
THE PARTIES HERETO TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW
OR AFFECT ANY PARTY'S RIGHT TO BRING ANY ACTION OR PROCEEDING IN THE COURTS OF
ANY OTHER JURISDICTION.

     (c)  EACH OF THE PARTIES HERETO HEREBY WAIVES ANY RIGHTS IT MAY HAVE TO A
TRIAL BY JURY IN RESOLVING ANY DISPUTE, WHETHER

                                       18
<PAGE>

SOUNDING IN CONTRACT OR TORT, OR OTHERWISE ARISING OUT OF, CONNECTED WITH,
RELATED TO, OR IN CONNECTION WITH THIS AGREEMENT. INSTEAD, ANY DISPUTE INVOLVING
THIS AGREEMENT RESOLVED IN COURT SHALL BE RESOLVED IN A BENCH TRIAL WITHOUT A
JURY.

27.  COUNTERPARTS.  This Agreement may be executed in one or more counterparts
and by the parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, taken together,
shall constitute one and the same instrument.

28.  SEVERABILITY.  Any provision of this Agreement that is determined by
competent authority to be prohibited or unenforceable in any jurisdiction will,
as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction will not invalidate or
render unenforceable such provision in any other jurisdiction.  To the extent
permitted by applicable law, each of the parties hereto hereby waives any
provision of law which renders any provision hereof prohibited or unenforceable
in any respect.

29.  ASSIGNMENT; NO THIRD PARTY BENEFICIARIES.  This Agreement shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and permitted assigns, and no other party shall be entitled to rely
on this Agreement as a third party beneficiary hereof; provided, that this
Agreement and the rights and obligations hereunder are not assignable by Office
Systems without the prior written consent of PBCC, which may be given or
withheld in PBCC's sole discretion.  This Agreement shall not create in favor
of, nor give to, any third party, any claim or right of action against Office
Systems or PBCC.  PBCC may sell, assign, encumber, securitize or otherwise
transfer to any party who is not a competitor of Office Systems any or all of
its interest in the Equipment, any Lease, any EMA Contract, and the payments due
thereunder, subject to the rights of Office Systems pursuant to this Agreement.

30.  SURVIVAL.  All representations and warranties contained in this Agreement
or any document or certificate delivered pursuant hereto or thereto or in
connection herewith or therewith will survive the execution and delivery of this
Agreement, and any terms or conditions of this Agreement which by their express
terms extend beyond the termination or expiration of this  Agreement or which by
their nature shall so extend shall survive and continue in full force and effect
after any termination or expiration of this Agreement, including, but not
limited to, Sections 12(b), 13, 15(c) and 36  Without limiting the generality of
the foregoing, each party shall be entitled to all amounts payable to it under
this Agreement accruing prior to the date of termination or expiration of this
Agreement, as the case may be and Office Systems shall be entitled to receive
EMA Contract charges accruing after the date of termination or expiration of
this Agreement, as the case may be, with respect to Leases entered into during
the period commencing on the Effective Date and ending on such date of
termination or expiration.

31.  NO WAIVER.  No delay or failure by either party to exercise or enforce at
any time any right or provision of this Agreement shall be considered a waiver
thereof or of such party's right thereafter to exercise or enforce each and
every right and provision of this Agreement.  Any waiver of any right hereunder
in a specific circumstance shall not be deemed a waiver of that

                                       19
<PAGE>

right in any other circumstances or a waiver of any other right. A waiver to be
valid shall be in writing but need not be supported by consideration.

32.  ENTIRE AGREEMENT; AMENDMENTS.  This Agreement constitutes the entire, full
and complete agreement between the parties hereto concerning the subject matter
hereof, and supersedes all prior agreements and negotiations.  The terms of this
Agreement shall not be waived, altered, modified, amended, supplemented or
terminated in any manner whatsoever except by a written instrument signed by
PBCC and Office Systems.

33.  ATTORNEYS' FEES.  If either party hereto institutes an action or other
proceeding to enforce any rights arising under this Agreement, the party
prevailing in such action or other proceeding shall be paid all reasonable costs
and attorneys' fees by the opposing party, such fees to be set by court and not
by jury.

34.  FURTHER ASSURANCES.  The parties shall execute any further or additional
instruments and they will perform any acts that may become necessary in order to
effectuate and carry out the purposes of this Agreement.

35.  HEADINGS.  The descriptive headings of the several sections of this
Agreement are inserted for convenience only and do not constitute a part of this
Agreement.  The terms and conditions hereof have been negotiated by the parties
hereto, and in interpreting this Agreement, no rule of construction that any
ambiguity shall be resolved against a drafting party shall apply.

36.  PUBLICITY; CONFIDENTIALITY.  (a)  Each of the parties agrees that any press
release or other public announcements regarding this Agreement shall not be made
without the prior written consent of the other (which consent shall not be
unreasonably withheld or delayed), except as required by law, in which case the
other party shall be consulted, to the extent reasonably practicable, as to the
content and timing of such release, announcement or statement to be issued.

     (b)  In the performance of this Agreement, the parties may disclose to the
other non-public, confidential and proprietary information ("Protected
Information") relating to PBCC's or Office Systems' credit criteria, marketing
strategy, transaction structuring, pricing guidelines, financial information,
internal costs and expenses or similar non-technical information considered by
PBCC or Office Systems, respectively, to be of significant commercial value to
it.  To maximize the benefit derived by the parties through sharing in one
another's Protected Information, each of the parties agrees that at all times,
both during the term of this Agreement and thereafter, it will protect the
other's Protected Information from unauthorized dissemination (which shall
include dissemination to a party's parent, subsidiary or affiliate) and use with
the same degree of care that it uses to protect its own like information, and
with not less care than is required by the applicable Standard of Conduct.  Each
of the parties shall be responsible for compliance by its directors, officers,
employees and agents with the provisions of this Section 36(b).  Each of PBCC
and Office Systems may use the other's Protected Information solely for the
purpose of effecting the Financing Program as set forth in this Agreement and
for no other purpose.  "Protected Information" includes confidential or
proprietary information developed, created or discovered by, for or on behalf of
a party, or which became or becomes known by or is conveyed

                                       20
<PAGE>

to such party, which has or may have commercial value to such party in the
conduct of its leasing business.

     (c)  The provisions of this Section 36 shall survive the termination or
expiration of this Agreement.

     [Remainder of Page Intentionally Left Blank; Signature Page Follows.]

                                       21
<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused the execution of this
Operating Agreement by their respective duly authorized representatives as of
the date set forth above.

PITNEY BOWES CREDIT CORPORATION

By: __________________________________________
Name:  Bret Thomas
Title: President - Global Credit Services
       Address and Fax No. for Notices:

       27 Waterview Drive
       Shelton, CT  06484

           Attn:  ____________________

           Fax:  _____________________

PITNEY BOWES OFFICE SYSTEMS

By: ____________________

Name: __________________

Title: _________________

Address and Fax No. for Notices:

  100 Oakview Drive
  Trumbull, CT  06611

      Attn:  ___________________

      Fax:  ____________________

Exhibit A - Transition Period Agreement
Exhibit B - Current Leasing Programs
Exhibit C - List of Financing Program Documents
Exhibit D - Required Reports

                                       22
<PAGE>

                                   EXHIBIT A

                         [TRANSITION PERIOD AGREEMENT]

Except as otherwise provided in the Agreement, the terms of the Agreement will
take effect on 9/4/01, with the following exceptions:

 .  All leases in PBCC's existing portfolio for Office Systems equipment which
   expire on or prior to December 31, 2001 will be subject to the existing "buy-
   back" arrangement in order to give PBCC an opportunity to develop its
   remarketing capabilities. All such leases expiring thereafter will be subject
   to the terms of Section 17 of this Agreement.

 .  Advance funding of EMA Contract charges will commence as systems issues with
   both parties are resolved, such resolution to occur no later than November 1,
   2001. PBCC's IT Department anticipates that the programming will be completed
   within sixty days after the date Office Systems provides a complete test
   file.

 .  PBCC will provide a phase-in schedule for continuous improvement of credit
   application response time by 9/30/01.

                                       23
<PAGE>

                                   EXHIBIT B

                           [CURRENT LEASING PROGRAMS]

 .  Programs
      .  90 Day cash conversion
      .  Cancel/Supercede - 90 days maximum
      .  Competitive trade-in
      .  Cost per copy lease

 .  Marketing Opportunities such as participation in sales incentive trips will
   continue to be provided to Office Systems personnel.

                                       24
<PAGE>

                                      25
<PAGE>

                                      26
<PAGE>

                                   EXHIBIT C

                     [LIST OF FINANCING PROGRAM DOCUMENTS]

 .  Required in connection with all Leases
   .  Credit Application
   .  Lease Agreement
 .  Required for Leases in excess of $100,000
   .  Lessee financial statements
 .  Required on an as-needed basis
   .  Competitive Buy-Out Addendum
   .  "Water" letter
   .  UCC-1 Financing Statement

                                       27
<PAGE>

                                   EXHIBIT D

                               [REQUIRED REPORTS]

   .
 .  Reports to Office Systems
   .  18 months or less, by District
   .  Monthly Reports
      .  Statistical Overview
      .  Marketing Programs
      .  Adds/Terms
      .  Trade Up Success Tracking
   .  Special report requests agreed to by both parties
   .  Cycle time reports for lease acceptance turnaround

 .  Reports to PBCC
   .  Leasable Sales
   .  Special report requests agreed to by both parties

                                       28<PAGE>

                                                   [Sublease of Entire Premises]
                                                   -----------------------------

                                                                    Exhibit 10.8

                               SUBLEASE AGREEMENT

     THIS SUBLEASE AGREEMENT (this "Sublease") is made and entered into this __
                                    --------
day of _________, 2001, by and between PITNEY BOWES INC., a Delaware corporation
("Sublandlord") and PITNEY BOWES OFFICE SYSTEMS, INC., a Delaware corporation
  -----------
("Subtenant").
-----------

1.  BASIC SUBLEASE PROVISIONS.
    -------------------------
      A.    Property Address:  See Exhibit A, line 1(A).
                          --- ---------

      B.    Prime Landlord:  See Exhibit A, line 1(B).
                       --- ---------
      C.    Prime Landlord's Address (for notices):  See Exhibit A, line 1(C).
                                                     --- ---------
      D.    Identification of Prime Lease and all amendments thereto:  See
                                                                       ---
            Exhibit A, line 1(D).
            ---------

      E.    Estimated Minimum Rent:  See Exhibit A, line 1(E).
                                     --- ---------

      F.    Expiration Date of Prime Lease:  See Exhibit A, line 1(F).
                                             --- ---------

      G.    Description of the Premises:  See Exhibit A, line 1(G).
                                          --- ---------

      H.    Subtenant's Address for notices:

                 Pitney Bowes Office Systems, Inc.
                 Attn:  Lease Administration
                 100 Oakview Drive
                 Trumbull, CT  06611-4724

            with a copy to:

                 Pitney Bowes Office Systems, Inc.
                 Attn: Mark S. Flynn, Esq.
                 General Counsel
                 100 Oakview Drive
                 Trumbull, CT 06611-4724

      I.    Sublandlord's Address for notices:

                 MSC 5105
                 Attn:  Manager, National Leasing & Asset Management
                 Pitney Bowes Inc.
                 1 Elmcroft Road
                 Stamford, CT 06926-0700

            with a copy to:

                 Trammell Crow Company
                 Attn:  Pitney Bowes Lease Administration
                 1687 114th Avenue, S.E.
                 Bellevue, WA 98004-6921

<PAGE>

                                                   [Sublease of Entire Premises]
                                                   -----------------------------

     J.    Sublandlord's Address for Payment of Estimated Minimum Rent:

           Chase Manhattan Bank
           ABA #:021000021
           Account Name:  Pitney Bowes Inc.
           Account #:  9104010567
           Reference:  5301400-1404199

      K.    Commencement Date:  The date of the distribution of 100% of the
issued and outstanding shares of Subtenant's common stock to Sublandlord's
shareholders.

2.    PRIME LEASE.  Sublandlord is the tenant under that certain Lease Agreement
      -----------
referenced in Line 1(D) of Exhibit A attached hereto (as same may be amended,
                           ---------
the "Prime Lease") with Prime Landlord for the lease of that certain premises
     -----------
described therein (the "Premises").  Sublandlord represents and warrants that
                        --------
the Prime Lease delivered to Subtenant is a true and correct copy of the Prime
Lease;  Subtenant acknowledges receipt thereof.

3.    SUBLEASE.  Sublandlord, for and in consideration of the rents hereunder
      --------
and of the covenants and agreements herein contained on the part of Subtenant to
be performed, hereby subleases to Subtenant, and Subtenant accepts from
Sublandlord, all of the Premises, which subleased space is also more
particularly described in Section 1(G).
                          ------------

4.  TERM.  The term of this Sublease (the "Term") shall commence on the
    ----                                   ----
Commencement Date and shall expire on the earlier of: (i) the date (the

"Expiration Date") that is five (5) business days prior to the Expiration Date
----------------
of the Prime Lease as specified in Section 1(F); or (ii) the expiration or
                                   ------------
sooner termination of the Prime Lease, unless sooner terminated as otherwise
provided elsewhere in this Sublease.  Subtenant shall have no obligation to pay
Rent (as defined in Section 7) with respect to any period not within the Term.
                    ---------

5.    POSSESSION.  Subtenant has inspected the Premises and the building of
      ----------
which the Premises are a part (the "Building") and hereby accepts the same "as
                                    --------
is," without any warranties, representations or obligations (either express or
implied) on the part of Sublandlord or Prime Landlord to perform any fit-ups,
maintenance, alterations, improvements, replacements, repairs, work or other
services thereto, except as specifically set forth in Section 15.  Subtenant's
                                                      ----------
initial occupancy of the Premises shall be deemed  acknowledgments by Subtenant
that the  Premises are in good and tenantable order and that Subtenant accepts
the Premises.

6.    SUBTENANT'S USE.  Subject to the limitations on use set forth in the Prime
      ---------------
Lease and Legal Requirements (as defined below), the Premises shall be used and
occupied only for the uses permitted under the Prime Lease, and for no other
uses.  As used herein, "Legal Requirements" shall mean every statute, law
                        ------------------
(including, without limitation, the Americans with Disabilities Act of 1990,
ordinance, code, regulation, order, permit, approval, license, judgment,
restriction or rule of any federal, state, county, municipal or local government
and all departments, commissions, boards, bureaus and offices thereof having or
claiming jurisdiction over the Property (a "Governmental Authority") or other
                                            ----------------------
public or quasi-public body, agency, court, department, bureau or authority
having jurisdiction over the subject matter.

7.    RENT.
      ----

      A. ESTIMATED MINIMUM RENT. Beginning on the Commencement Date, Subtenant
         ----------------------
shall pay Estimated Minimum Rent to Sublandlord via electronic funds transfer at
the address specified in

                                      -2-
<PAGE>

                                                   [Sublease of Entire Premises]
                                                   -----------------------------

Section 1(K), or to such other payee or at such other address as may be
------------
designated by notice in writing from Sublandlord to Subtenant, without prior
demand therefor and without any deduction or offset whatsoever. Estimated
Minimum Rent for each calendar month shall be paid in equal monthly installments
in advance on the day that is three (3) business days prior to the first day of
each calendar month of the Term, except that the first installment of Estimated
Minimum Rent shall be paid by Subtenant to Sublandlord on or prior to the
Commencement Date.

     B.    ADDITIONAL RENT.
           ---------------

       (i) Operating Expenses.  If and to the extent that Sublandlord is
           ------------------
obligated to pay additional rent under the Prime Lease, whether such additional
rent is to reimburse Prime Landlord for taxes, operating expenses, common area
maintenance charges, insurance or other expenses incurred by Prime Landlord in
connection with the Premises, the Building or the property or project of which
the Building is a part (the "Property"), Subtenant shall pay to Sublandlord one
                             --------
hundred percent (100%) of such additional rent (to the extent such additional
rent is attributable to events occurring during the Term) (collectively,

"Operating Expenses"), payable in accordance with this Section.  Prior to the
-------------------
Commencement Date, Sublandlord shall send to Subtenant a statement showing the
estimated Operating Expenses for the current period for which Operating Expenses
are due under the Prime Lease.  At the same time and in the same manner as
monthly installments of Estimated Minimum Rent are due, Subtenant shall pay to
Sublandlord 100% of the monthly installments of estimated Operating Expenses as
shown on such statement.  Promptly after receipt of a new bill from Prime
Landlord for estimated Operating Expenses, if any, Sublandlord shall provide to
Subtenant a copy of such bill showing revised amounts for estimated Operating
Expenses, which new bill may cover periods prior to the date of the new bill to
the extent Sublandlord is responsible for the payment thereof under the terms of
the Prime Lease; from and after receipt of such new bill, Subtenant shall pay to
Sublandlord 100% of the estimated monthly installments of Operating Expenses and
retroactive payments, if any, as shown thereon.  Unless and until Subtenant
receives a new bill for estimated Operating Expenses, Subtenant shall continue
to pay each month the monthly installments of estimated Operating Expenses as
shown on the most recent bill.  Promptly after receipt of a reconciliation
statement from Prime Landlord with respect to Operating Expenses, Sublandlord
shall provide Subtenant with a copy of such statement.  If the reconciliation
statement shows that Subtenant overpaid Operating Expenses, then upon receipt by
Sublandlord from Prime Landlord of such overpayment amount or a credit therefor,
Subtenant shall receive payment of such overpayment amount or, if Sublandlord
receives a credit, then a credit against the next installment of Estimated
Minimum Rent in the amount of the overpayment; if the statement shows an
underpayment of Operating Expenses, Subtenant shall pay to Sublandlord the full
amount of the underpayment within five (5) business days.  If Sublandlord audits
Operating Expenses and such audit results in a cash payment or credit from Prime
Landlord, Subtenant shall receive from Sublandlord a cash payment or credit,
respectively, in the same amount less any administrative fee or charge incurred
by Sublandlord in connection with the audit.

       (ii) Extraordinary Expenses.  Subtenant shall reimburse Sublandlord for
            ----------------------
any and all other reasonable expenses incurred or payable by Sublandlord in
connection with the leasing of the Premises, regardless of the payee for such
expenses, and Subtenant shall pay such expenses as additional rent hereunder.
Any expense incurred by Sublandlord pursuant to the Prime Lease shall be deemed
a reasonable expense.  Sublandlord shall send a bill to Subtenant for such
additional rent, which bill shall be accompanied by a copy of the invoice from
the payee if readily available.  Such payment shall be due from Subtenant to
Sublandlord no fewer than three (3) business days prior to the date upon which
Sublandlord's payment of such additional rent is due from Sublandlord, provided
Subtenant shall have been billed therefor at least five (5) business days prior
to such due date, or, if Subtenant shall have been billed less than five (5)
business days prior to such due date, such payment shall be due within three (3)
business days.

                                      -3-
<PAGE>

                                                   [Sublease of Entire Premises]
                                                   -----------------------------

       (iii)  Administrative Fee.  At the same time and in the same manner as
              ------------------
Estimated Minimum Rent is payable hereunder, Subtenant shall pay Sublandlord as
additional rent a monthly administrative fee equal to one percent (1%) of the
total Rent payable for such month.

       (iv) Interest.  All Rent payments not received by Sublandlord when due
            --------
shall bear interest at the rate equal to the lesser of: the prime rate as
announced from time to time by Chase Manhattan Bank or its successor plus (x)
with respect to Rent payments made within five (5) business days after the date
due, 2% per annum and (y) with respect to Rent payments made over five (5)
business days after the date due, 4% per annum; or (ii) the highest rate
permitted under applicable law, until payment is received by Sublandlord.

C.    RENT; DIRECT PASS-THROUGH.  All charges, costs and sums required to be
      -------------------------
paid by Subtenant to Sublandlord under this Sublease, including without
limitation all payments due from Subtenant under Section 7(B), shall be deemed
                                                 ------------
"Additional Rent."  Estimated Minimum Rent and Additional Rent shall
----------------
collectively be referred to herein as "Rent."  All Rent payable by Subtenant
                                       ----
hereunder shall be made without any deduction or offset whatsoever and shall be
made to Sublandlord via electronic funds transfer.  Subtenant's covenant to pay
Rent shall be independent of every other covenant in this Sublease.  It is the
intent of the parties hereto that this Sublease shall provide for a direct pass-
through to Subtenant of all rents payable by Sublandlord under the Prime Lease.
Notwithstanding anything to the contrary herein, if there is a discrepancy
between Estimated Minimum Rent as shown on Exhibit A and the actual base or
                                           ---------
minimum rent payable by Sublandlord under the Prime Lease, either party, upon
presentation to the other of reasonable supporting documentation, shall have the
right to revise the Estimated Minimum Rent amounts listed on Exhibit A to
                                                             ---------
reflect the actual amounts due and Subtenant shall pay to Sublandlord, as
Additional Rent, any deficiency resulting from the discrepancy and, as
applicable, Sublandlord shall refund to Subtenant any overpayment, less any
administrative fees incurred by Sublandlord in connection therewith.

8.    SUBTENANT'S OBLIGATIONS.  Subtenant shall be responsible for, and shall
      -----------------------
pay the following prior to the due date:

      A. Except to the extent Prime Landlord provides utilities to the Premises
pursuant to the Prime Lease, all utility consumption costs, including without
limitation, electric, water, sewer, telephone and other charges incurred in
connection with providing utility services to the Premises. As of the
Commencement Date, Subtenant shall cause all such utilities to be billed
directly to and in Subtenant's name. Subtenant shall hold Sublandlord harmless
from all costs or expenses Sublandlord may incur from Subtenant's failure to pay
utility bills or to perform any of its obligations with respect to the purchase
of utilities.

      B.    All maintenance, repairs and replacements as to the Premises and its
equipment, to the extent Sublandlord is obligated to perform the same under the
Prime Lease.

9.    QUIET ENJOYMENT.  Sublandlord represents that it has full power and
      ---------------
authority to enter into this Sublease, subject to the consent of Prime Landlord,
if required under the Prime Lease.  So long as Subtenant is not in default in
the performance of its covenants and agreements in this Sublease beyond the
expiration of any applicable notice and cure period, Subtenant's quiet and
peaceable enjoyment of the Premises shall not be disturbed or interfered with by
Sublandlord, or by any person claiming by, through, or under Sublandlord, but
subject to the terms of the Prime Lease and this Sublease, and to Sublandlord's
rights thereunder and hereunder.

10.    SUBTENANT'S INSURANCE.  Subtenant shall procure and maintain, at its own
       ---------------------
cost and expense, such liability insurance as is required to be carried by
Sublandlord under the Prime Lease,

                                      -4-
<PAGE>

                                                   [Sublease of Entire Premises]
                                                   -----------------------------

naming as additional insureds Sublandlord, Prime Landlord and any others
required by Prime Landlord, and such property insurance as is required to be
carried by Sublandlord under the Prime Lease to the extent such property
insurance pertains to the Premises. If the Prime Lease requires Sublandlord to
insure leasehold improvements or alterations, then Subtenant shall insure such
leasehold improvements that are located in the Premises, as well as alterations
in the Premises made by Subtenant. Subtenant shall furnish to Sublandlord a
certificate of Subtenant's insurance required hereunder not later than ten (10)
days prior to the Commencement Date and new certificates annually thereafter,
but in no event less than thirty (30) days prior to the expiration of the
current certificate. Each party hereby waives claims against the other for
property damage provided such waiver shall not invalidate the waiving party's
property insurance; each party shall obtain from its insurance carrier a waiver
of its right of subrogation. Subtenant hereby waives claims against Prime
Landlord and Sublandlord for property damage to the Premises or its contents if
and to the extent that Sublandlord waives such claims against Prime Landlord
under the Prime Lease. Subtenant shall obtain, for the benefit of Prime Landlord
and Sublandlord, such waivers of subrogation rights from its insurer as are
required of Sublandlord under the Prime Lease. Sublandlord shall continue to
comply with its obligations under the Prime Lease with respect to maintaining
insurance.

11.  ASSIGNMENT OR SUBLETTING.
       ------------------------

     A.   Subject to Prime Landlord's consent if required under the Prime Lease,
Subtenant shall have the right with Sublandlord's prior consent, which consent
shall not be unreasonably withheld, conditioned or delayed except as set forth
below in this Section 11, to: (i) assign, convey, mortgage, hypothecate, pledge,
              ----------
encumber or otherwise transfer, voluntarily, involuntarily, by operation of law
or otherwise, this Sublease or any interest hereunder; (ii) allow any transfer
thereof or any lien upon Subtenant's interest by operation of law or otherwise;
(iii) further sublet the Premises or any part thereof; (iv) list the Premises or
any part thereof as available for assignment or sublease with any broker or
agent or otherwise advertise, post, communicate or solicit prospective assignees
or subtenants through any direct or indirect means; or (v) permit the occupancy
of the Premises or any part thereof by anyone other than Subtenant (any action
described in clauses (i) through (v) above is referred to herein as a "Transfer"
                                                                       --------
and the transferee of a Transfer is a "Transferee").  The following shall each
                                       ----------
be deemed a Transfer for purposes of this Section: (a) any transfer (or sequence
of related transfers resulting, in the aggregate, in the transfer) of 50% or
more of the beneficial ownership of Subtenant; (b) any dissolution, merger,
consolidation or other reorganization of Subtenant; and (c) the sale of 50% or
more in the aggregate of the value of the assets of Subtenant.  Notwithstanding
the foregoing, Subtenant may collaterally assign, without further consent of
Sublandlord, its interest in this Sublease to secure its senior credit
facilities.

     B.   Any Transfer consummated without Sublandlord's consent shall be deemed
void ab initio and the Transferee shall acquire no rights and neither
Sublandlord nor Prime Landlord shall recognize any such transfer.

     C.   In no event shall Sublandlord be obligated to consider a consent to
any proposed Transfer if a Subtenant Event of Default (as defined in Section 24)
                                                                     ----------
then exists under this Sublease, or a fact or condition exists, which but for
the giving of notice or the passage of time would constitute a Subtenant Event
of Default. Notwithstanding anything to the contrary herein, Sublandlord shall
not, under any circumstances, be obligated to consent to any Transfer by Tenant
and Sublandlord's withholding of consent shall be deemed reasonable if: (i)
Prime Landlord's consent to such Transfer is required under the Prime Lease and
Prime Landlord does not consent to such Transfer; or (ii) the proposed Transfer
is not permitted under the Prime Lease. Sublandlord shall have the right to
require any proposed Transferee to deposit two (2) months' Rent as a security
deposit with Sublandlord as a condition to the effectiveness of such proposed
Transfer. Without limiting the generality of the foregoing, it shall be deemed
reasonable for Sublandlord to deny consent if:

                                      -5-
<PAGE>

                                                   [Sublease of Entire Premises]
                                                   -----------------------------

       (1) The financial strength of the proposed Transferee, both in terms of
net worth and in terms of reasonably anticipated cash flow over the Term, is
less than Subtenant's financial strength as of the Commencement Date; or

       (2) The proposed Transferee is of a character and engaged in a business
such as are not in keeping with the standards of Prime Landlord with respect to
the Building and its occupancy.

     D. Unless otherwise agreed in writing by Sublandlord, no Transfer
whatsoever shall release Subtenant from Subtenant's obligations and liabilities
under this Sublease or alter the primary liability of Subtenant to pay all Rent
and to perform all obligations to be paid and performed by Subtenant as required
under this Sublease. No Transfer shall amend or modify this Sublease in any
respect, and every Transfer shall be subject and subordinate to this Sublease
and the Prime Lease. The acceptance of rent by Sublandlord from any other person
or entity shall not be deemed a waiver by Sublandlord of any provision of this
Sublease. Consent to one Transfer shall not be deemed consent to any subsequent
Transfer. Subtenant shall pay to Sublandlord all reasonable costs and shall
reimburse Sublandlord for all reasonable expenses incurred by Sublandlord in
connection with any Transfer requested by Subtenant. If any Transferee of
Subtenant defaults in the performance of any obligation to be performed by
Subtenant under this Sublease, Sublandlord may proceed directly against
Subtenant without the necessity of exhausting remedies against such Transferee.

12.    OPTIONS PERSONAL TO SUBLANDLORD.  Sublandlord expressly reserves, and
       -------------------------------
does not grant to Subtenant under this Sublease, any and all options of
Sublandlord under the Prime Lease to: (i) expand the area of the Premises; (ii)
renew or extend the term of the Prime Lease; or (iii) purchase all or any part
of the Property if Sublandlord remains liable under the Prime Lease and this
Sublease, and all similar rights of Sublandlord.  Subtenant shall, however, have
the right to exercise any option of Sublandlord to: (a) reduce the area of the
Premises provided Sublandlord incurs no costs in connection therewith and is
released from liability under the Prime Lease and this Sublease with respect to
the vacated area; and (b) terminate the Prime Lease provided Sublandlord incurs
no costs in connection therewith and is released from liability under the Prime
Lease and this Sublease.  If Sublandlord notifies Subtenant in writing that it
does not wish to exercise any such option under the Prime Lease and Prime
Landlord agrees in writing to release Sublandlord from all liability under the
Prime Lease, then effective as of such release of Sublandlord, this Sublease
shall include the grant of such option subject to the terms of the Prime Lease.

13.    RULES.  Subtenant shall comply with all rules and regulations that Prime
       -----
Landlord has made or may hereafter from time to time make for the Building in
accordance with the Prime Lease.  Sublandlord shall not be liable in any way for
damage caused by the non-observance by any of the other tenants of the Building
of such similar covenants in their leases or of such rules and regulations.

14.    CONFLICT IN TERMS.  If any provision of this Sublease (express or
       -----------------
implied) shall be in conflict with the terms of the Prime Lease, the terms of
this Sublease shall control except to the extent a default under the Prime Lease
would result therefrom.

15.    REPAIRS; COMPLIANCE.  Subtenant shall promptly pay for the repairs set
       -------------------
forth in Section 8(B).  Subtenant shall, at Subtenant's expense, comply with all
         ------------
Legal Requirements and the requirements of all insurance bodies and their fire
prevention engineers at any time in force, applicable to the Premises or to
Subtenant's particular use or manner of use thereof, except that Subtenant shall
not hereby be under any obligation to comply with any law, ordinance, rule or
regulation requiring any structural alteration of or in connection with the
Premises, unless such alteration is required by reason of: (i) Subtenant's
particular use or manner of use of the Premises; (ii) a condition that has been
created by or at the sufferance of Subtenant; or (iii) a breach of any of
Subtenant's covenants and agreements hereunder, or

                                      -6-
<PAGE>

                                                   [Sublease of Entire Premises]
                                                   -----------------------------

such alteration is required to be performed by Sublandlord under the Prime
Lease. As used herein "structure" or "structural" shall have the definition
ascribed to it in the Prime Lease or if no specific definition is given therein
"structure" or "structural" shall mean that portion of the Building that is
integral to the integrity of the Building as an existing enclosed unit and
shall, in any event, include footings, foundation, outside walls, skeleton,
bearing columns and interior bearing walls, floor slabs, roof and roofing
system. Notwithstanding the foregoing, if the Prime Lease imposes greater
obligations on Sublandlord with respect to the foregoing, then Subtenant shall
also comply with such provisions of the Prime Lease as if Subtenant were named
therein in lieu of Sublandlord.

16.    FIRE OR CASUALTY OR EMINENT DOMAIN.  In the event of a fire or other
       ----------------------------------
casualty affecting the Building or the Premises, or of a taking of all or a part
of the Building or Premises under the power of eminent domain, Sublandlord shall
have the right to exercise any right that may have the effect of terminating the
Prime Lease, provided when Sublandlord sends its notice to Prime Landlord
exercising such right, Sublandlord simultaneously sends a copy thereof to
Subtenant and, provided further, Sublandlord shall exercise such right if
requested in writing to do so by Subtenant promptly after the casualty.  If
Sublandlord is entitled, under the Prime Lease, to a rent abatement as a result
of a fire or other casualty or as a result of a taking under the power of
eminent domain, then Subtenant shall be entitled to such rent abatement.  If the
Prime Lease imposes on Sublandlord the obligation to repair or restore leasehold
improvements or alterations, Subtenant shall be responsible for repair or
restoration of such leasehold improvements or alterations to the extent required
of Sublandlord in the Prime Lease.

17.    ALTERATIONS.  Subtenant shall not make any alterations in or additions to
       -----------
the Premises ("Alterations") if to do so would constitute a default under the
               -----------
Prime Lease or if the Alteration is required to be removed at the end of the
term of the Prime Lease pursuant to the terms thereof (in either case, a

"Prohibited Alteration").  If Subtenant wishes to make an Alteration that is not
----------------------
a Prohibited Alteration, Sublandlord's consent thereto shall nonetheless be
required, which consent shall not be unreasonably withheld, and if Sublandlord
consents thereto, Sublandlord shall use reasonable efforts to obtain the consent
of Prime Landlord if such consent is required under the Prime Lease.  Subtenant
shall provide Sublandlord with a copy of the architectural plans for any
requested Alteration for Sublandlord's review and consent; provided, however,
                                                           --------  -------
Sublandlord's consent to an Alteration shall in no way be construed as an
approval of the suitability of the plans therefor for construction.  If
Alterations by Subtenant are permitted or consented to as required herein,
Subtenant shall comply with all of the covenants of Sublandlord contained in the
Prime Lease pertaining to the performance of such Alterations.  In addition,
Subtenant shall indemnify, defend and hold harmless Sublandlord against
liability, loss, cost, damage, liens and expense imposed on Sublandlord arising
out of the performance of Alterations by Subtenant, including without limitation
Sublandlord's expenses incurred in connection with the review of Subtenant's
plans.

18.    SURRENDER.  Upon the expiration of this Sublease, or upon the termination
       ---------
of Subtenant's right to possession of the Premises, Subtenant shall at once
surrender and deliver up the Premises, together with all improvements thereon
and Alterations thereto, to Sublandlord in good condition and repair, reasonable
wear and tear excepted, and in any event in at least the condition required
under the Prime Lease; conditions existing because of Subtenant's failure to
perform maintenance, repairs or replacements as required of Subtenant under this
Sublease shall not be deemed "reasonable wear and tear."  Subtenant shall
surrender to Sublandlord all keys to the Premises and make known to Sublandlord
the combination of all combination locks that Subtenant is permitted to leave on
the Premises.  All Alterations in or upon the Premises made by Subtenant shall
become a part of and shall remain upon the  Premises upon such termination
without compensation, allowance or credit to Subtenant.  Subtenant shall also
remove any improvements to the Premises, or portions thereof, that Prime
Landlord may require Sublandlord to remove pursuant to the terms of the Prime
Lease.  Further, Subtenant shall remove any telephone, computer or similar
cabling or wiring installed in the Building by or on behalf of Sublandlord

                                      -7-
<PAGE>

                                                   [Sublease of Entire Premises]
                                                   -----------------------------

or Subtenant to the extent required by the Prime Lease. Subtenant shall restore
the Premises to their condition prior to the making of such Alteration if
required under the Prime Lease, repairing any damage occasioned by such removal
or restoration to Sublandlord's satisfaction on or prior to the end of the Term.
If Prime Landlord requires removal of any improvements to the Premises, or
portions thereof, and Subtenant does not make such removal in accordance with
this Section, Sublandlord may remove the same (and repair any damage occasioned
thereby), and dispose thereof, or at its election, warehouse the same. Subtenant
shall pay the costs of such removal, repair and warehousing on demand.

19.    REMOVAL OF SUBTENANT'S PROPERTY.  Upon the expiration or earlier
       -------------------------------
termination of this Sublease, Subtenant shall remove Subtenant's articles of
personal property incident to Subtenant's business (collectively, "Trade
                                                                   -----
Fixtures"); provided, however, Subtenant shall repair any injury or damage to
--------    --------  -------
the Premises that may result from such removal and shall restore the Premises to
the same condition as prior to the commencement of the Prime Lease to
Sublandlord's satisfaction on or prior to the end of the Term.  If Subtenant
does not remove Subtenant's Trade Fixtures from the Premises prior to the
expiration or earlier termination of the Term, Sublandlord may, at its option,
remove the same (and repair any damage occasioned thereby and restore the
Premises as aforesaid) and dispose thereof or warehouse the same, and Subtenant
shall pay the cost of such removal, repair, restoration or warehousing to
Sublandlord on demand, or Sublandlord may treat Trade Fixtures as having been
conveyed to Sublandlord with this Sublease as a bill of sale, without further
payment or credit by Sublandlord to Subtenant.

20.    HOLDING OVER.  Subtenant shall have no right to occupy the Premises or
       ------------
any portion thereof after the expiration of this Sublease or after termination
of this Sublease or Subtenant's right to possession in consequence of a
Subtenant Event of Default.  If Subtenant or any party claiming by, through or
under Subtenant holds over, Sublandlord may exercise any and all remedies
available to it at law or in equity to recover possession of the Premises and to
recover damages, including without limitation, damages payable by Sublandlord to
Prime Landlord by reason of such holdover.  For each and every month or partial
month that Subtenant or any party claiming by, through or under Subtenant
remains in occupancy of all or any portion of the Premises after the expiration
of this Sublease or after termination of this Sublease or Subtenant's right to
possession, Subtenant shall pay, as minimum damages and not as a penalty,
monthly rental at a rate equal to double the rate of Estimated Minimum Rent and
Additional Rent payable by Subtenant hereunder immediately prior to the
expiration or other termination of this Sublease or of Subtenant's right to
possession.  The acceptance by Sublandlord of any lesser sum shall be construed
as payment on account and not in satisfaction of damages for such holding over.
If Subtenant fails to surrender the Subtenant Space upon the expiration or
termination of this Sublease, Subtenant shall indemnify, defend and hold
harmless Sublandlord from all costs, loss, expense or liability, including
without limitation, claims made by Prime Landlord, claims made by any succeeding
tenant and real estate brokers' claims and attorneys' fees.  No acceptance by
Sublandlord of any Rent during or for any period following the expiration or
termination of this Sublease shall operate or be construed as an extension or
renewal of this Sublease.

21.    ENCUMBERING TITLE.  Subtenant shall not do any act that shall in any way
       -----------------
encumber the title of Prime Landlord in and to the Building or the Property, nor
shall the interest or estate of Prime Landlord or Sublandlord be in any way
subject to any claim by way of lien or encumbrance, whether by operation of law
by virtue of any express or implied contract by Subtenant, or by reason of any
other act or omission of Subtenant.  Any claim to, or lien upon, the Premises,
the Building or the Property arising from any act or omission of Subtenant shall
accrue only against the subleasehold estate of Subtenant and shall be subject
and subordinate to the paramount title and rights of Prime Landlord in and to
the Building and the Property and the interest of Sublandlord in the Premises.
Without limiting the generality of the foregoing, Subtenant shall not permit the
Premises, the Building or the Property to become subject to any mechanics',
laborers' or materialmen's lien on account of labor or material furnished to
Subtenant or claimed to have been furnished to Subtenant in connection with work
of any character performed or

                                      -8-
<PAGE>

                                                   [Sublease of Entire Premises]
                                                   -----------------------------

claimed to have been performed on the Premises by, or at the direction or
sufferance of, Subtenant; provided, however, if so permitted to Sublandlord
                          --------  -------
under the Prime Lease, Subtenant shall have the right to contest in good faith
and with reasonable diligence, the validity of any such lien or claimed lien if
Subtenant shall give to Prime Landlord and Sublandlord such security as may be
deemed satisfactory to them to assure payment thereof and to prevent any sale,
foreclosure, or forfeiture of the Premises, the Building or the Property by
reason of nonpayment thereof; provided, further, on final determination of the
                              --------  -------
lien or claim of lien, Subtenant shall immediately pay any judgment rendered,
with all proper costs and charges, and shall have the lien released and any
judgment satisfied.

22.    INDEMNITY. Subtenant shall indemnify Sublandlord and hold Sublandlord
       ---------
harmless from all losses, damages, liabilities and expenses that Sublandlord may
incur, or for which Sublandlord may be liable to Prime Landlord, arising from
the acts or omissions of Subtenant that are the subject matter of any indemnity
or hold harmless of Sublandlord to Prime Landlord under the Prime Lease.

23.    SUBLANDLORD'S RIGHT TO ACCESS.  Sublandlord reserves the right, on
       -----------------------------
reasonable prior notice, to inspect the Premises, or to exhibit the Premises to
persons having a legitimate interest at any time during the Term.  Sublandlord
further reserves Prime Landlord's right of access to the Premises to the extent,
if any, reserved by Prime Landlord under the Prime Lease.

24.    DEFAULTS.  Any one or more of the following events shall be considered a
       --------
"Subtenant Event of Default" hereunder:
 --------------------------

     A.  If Subtenant shall default in any payment of Rent required to be made
by Subtenant hereunder when due as herein provided and such default shall
continue for five (5) days after the date such payment became due and
payable; or

     B.  If Subtenant shall be adjudged an involuntary bankrupt, or a decree or
order approving, as properly filed, a petition or answer filed against Subtenant
asking reorganization of Subtenant under the federal bankruptcy laws as now or
hereafter amended, or under the laws of any state, shall be entered, and any
such decree or judgment or order shall not have been vacated or stayed or set
aside within sixty (60) days from the date of the entry or granting thereof; or

     C.  Subtenant shall file, or admit the jurisdiction of the court and the
material allegations contained in, any petition in bankruptcy, or any petition
pursuant or purporting to be pursuant to the federal bankruptcy laws now or
hereafter amended, or Subtenant shall institute any proceedings for relief of
Subtenant under any bankruptcy or insolvency laws or any laws relating to the
relief of debtors, readjustment of indebtedness, reorganization, arrangements,
composition or extension; or

     D.  If Subtenant shall make any assignment for the benefit of creditors or
shall apply for or consent to the appointment of a receiver for Subtenant or any
of the property of Subtenant; or

     E.  If Subtenant shall admit in writing its inability to pay its debts as
they become due; or

     F.  If the Premises are levied on by any revenue officer or similar officer
with respect to any amount owing by Subtenant; or

     G.  If a decree or order appointing a receiver of the property of Subtenant
shall be made and such decree or order shall not have been vacated, stayed or
set aside within sixty (60) days from the date of entry or granting thereof; or

     H.  If Subtenant shall abandon the Subleased Premises during the Term
hereof and shall not

                                      -9-
<PAGE>

                                                   [Sublease of Entire Premises]
                                                   -----------------------------

have provided reasonable additional security and other necessary measures to
preserve and protect the Premises; or

     I.  If Subtenant shall default in securing insurance or in providing
evidence of insurance as set forth in Section 10 of this Sublease or shall
                                      ----------
default with respect to lien claims as set forth in Section 21 of this Sublease
                                                    ----------
and either such default shall continue for five (5) days after notice thereof in
writing to Subtenant; or

     J.  If Subtenant shall, by its act or omission to act, cause a default
under the Prime Lease and such default shall not be cured within the time, if
any, permitted for such cure under the Prime Lease; or

     K.  If Subtenant shall default in any of the other covenants and agreements
herein contained to be kept, observed and performed by Subtenant, and such
default shall continue for thirty (30) days after notice thereof in writing to
Subtenant, or if such default is of a nature that it cannot be completely
remedied within such thirty (30)-day period, if Subtenant does not promptly
institute and thereafter diligently prosecute to completion all steps necessary
to remedy the default after receipt of notice thereof.

25.    SUBLANDLORD REMEDIES.  Upon the occurrence of any one or more Events of
       --------------------
Default, Sublandlord shall have the right to: (i) exercise any remedy against
Subtenant that Prime Landlord may exercise for an event of default by
Sublandlord beyond the expiration of any applicable notice and cure period under
the Prime Lease; and (ii) pursue all available remedies in equity or at law.

26.  SUBLANDLORD DEFAULT; SUBTENANT REMEDIES.
     ---------------------------------------

     A. Any one or more of the following events shall be considered a
"Sublandlord Event of Default" hereunder:
 ----------------------------

        1. If Sublandlord shall, by its act or omission to act, cause a default
under the Prime Lease and such default shall not be cured within the time, if
any, permitted for such cure under the Prime Lease; or

        2. If Sublandlord shall default in any of the other covenants and
agreements herein contained to be kept, observed and performed by Sublandlord,
and such default shall continue for thirty (30) days after notice thereof in
writing to Sublandlord, or if such default is of a nature that it cannot be
completely remedied within such thirty (30)-day period, if Sublandlord does not
promptly institute and thereafter diligently prosecute to completion all steps
necessary to remedy the default after receipt of notice thereof.

     B.  Upon the occurrence of any one or more Sublandlord Events of Default,
Subtenant shall have the right to: (i) exercise any remedy against Sublandlord
that Sublandlord may exercise for an event of default by Prime Landlord beyond
the expiration of any applicable notice and cure period under the Prime Lease;
and (ii) pursue all available remedies in equity or at law.

27.    NOTICES AND CONSENTS.  All notices, demands, requests, consents or
       --------------------
approvals that may or are required to be given by either party to the other
shall be in writing and shall be deemed given when actually received by the
other party, if:  (i) served personally; (ii) sent by nationally-recognized
overnight courier with return receipt; or (iii) sent by United States registered
or certified mail, postage prepaid, return receipt requested and, if to
Subtenant, addressed to Subtenant at the address specified in Section 1(I) or at
                                                              ------------
such other place as Subtenant may from time to time designate by notice in
writing to Sublandlord, or if to Sublandlord, addressed to Sublandlord at the
address specified in Section 1(J) or at such other place as Sublandlord may from
                     ------------
time to time designate by notice in writing to Subtenant.

                                      -10-
<PAGE>

                                                   [Sublease of Entire Premises]
                                                   -----------------------------

Notwithstanding the foregoing, rejection or other refusal to accept a notice,
request or demand, or the inability to deliver because of a changed address of
which no notice was given, shall be deemed to be actual receipt thereof. Each of
Subtenant and Sublandlord shall promptly deliver to the other a copy of each
notice, demand, request, consent or approval to or from Prime Landlord.

28.    RELATIONSHIP BETWEEN PRIME LEASE AND THIS SUBLEASE.  This Sublease and
       --------------------------------------------------
all the rights of parties hereunder are subject and subordinate to the Prime
Lease.  Each party shall not, by its act or omission to act, cause a default
under the Prime Lease.  In furtherance of the foregoing, the parties hereby
confirm, each to the other, that it is not practical in this Sublease to
enumerate all of the rights and obligations of the various parties under the
Prime Lease and specifically to allocate those rights and obligations in this
Sublease.  Accordingly, in order to afford to Subtenant the benefits of this
Sublease and of those provisions of the Prime Lease that by their nature are
intended to benefit the party in possession of the Premises, and in order to
protect Sublandlord against a default by Subtenant that might cause a default or
event of default by Sublandlord under the Prime Lease:

     A. Provided Subtenant shall timely pay all Rent when and as due under this
Sublease, Sublandlord shall pay, when and as due, all Estimated Minimum Rent,
additional rent and other charges payable by Sublandlord to Prime Landlord under
the Prime Lease;

     B. Except as otherwise expressly provided herein, Sublandlord shall perform
its covenants and obligations under the Prime Lease that do not require for
their performance possession of the Premises and that are not otherwise to be
performed hereunder by Subtenant on behalf of Sublandlord. For example,
Sublandlord shall at all times keep in full force and effect all insurance
required of Sublandlord as tenant under the Prime Lease.

     C. Except as otherwise expressly provided herein, Subtenant shall perform
all affirmative covenants and shall refrain from performing any act that is
prohibited by the negative covenants of the Prime Lease, where the obligation to
perform or refrain from performing is by its nature imposed upon the party in
possession of the Premises. If possible, Subtenant shall perform such
affirmative covenants that are also covenants of Sublandlord under the Prime
Lease at least five (5) business days prior to the date when Sublandlord's
performance is required under the Prime Lease. Sublandlord shall have the right,
but not the obligation, to enter the Premises to cure any default by Subtenant
under this Section.

     D. Sublandlord grants to Subtenant the right to receive all of the services
and benefits with respect to the Premises that are to be provided by Prime
Landlord under the Prime Lease. Sublandlord shall have no duty to perform any
obligations of Prime Landlord that are, by their nature, the obligation of an
owner or manager of real property. For example, Sublandlord shall not be
required to provide the services or repairs that Prime Landlord is required to
provide under the Prime Lease. Sublandlord shall have no responsibility for or
be liable to Subtenant for any default, failure or delay on the part of Prime
Landlord in the performance or observance by Prime Landlord of any of its
obligations under the Prime Lease, nor shall such default by Prime Landlord
affect this Sublease or waive or defer the performance of any of Subtenant's
obligations hereunder except to the extent that such default by Prime Landlord
excuses performance by Sublandlord under the Prime Lease.

29.    PRIME LANDLORD'S CONSENT.  This Sublease and the obligations of the
       ------------------------
parties hereunder are expressly conditioned upon Sublandlord's obtaining prior
written consent hereto by Prime Landlord, if such written consent is required
under the Prime Lease.  Sublandlord shall use commercially reasonable efforts to
obtain such consent.  Subtenant shall promptly deliver to Sublandlord any
information reasonably requested by Prime Landlord (in connection with Prime
Landlord's approval of this Sublease) with respect to the nature and operation
of Subtenant's business and/or the financial condition of Subtenant.  This
Sublease and Prime Landlord's consent hereto shall not: (a) create privity of
contract

                                      -11-
<PAGE>

                                                   [Sublease of Entire Premises]
                                                   -----------------------------

between Prime Landlord and Subtenant; (b) be deemed to have amended the Prime
Lease in any regard (unless Prime Landlord shall have expressly agreed in
writing to such amendment); or (c) be construed as a waiver of Prime Landlord's
right to consent to any assignment of the Prime Lease by Sublandlord or any
further subletting of the Premises, or as a waiver of Prime Landlord's right to
consent to any assignment by Subtenant of this Sublease or any sub-subletting of
the Premises or any part thereof. If Prime Landlord's consent to this Sublease
is required pursuant to the Prime Lease, and if Sublandlord reasonably believes
that Sublandlord will be placed in default of the Prime Lease by Prime Landlord
because of the existence of this Sublease, then Sublandlord shall have the right
to terminate immediately this Sublease by giving written notice thereof to
Subtenant at any time thereafter, but before Prime Landlord grants such consent.

30.    BROKERAGE.  Each party warrants to the other that it has had no dealings
       ---------
with any broker or agent in connection with this Sublease and covenants to hold
harmless and indemnify the other party from and against any and all costs
(including reasonable attorneys' fees), expense or liability for any
compensation, commissions and charges claimed by any broker or agent with
respect to this Sublease or the negotiation thereof on behalf of such party.

31.    FORCE MAJEURE.  Neither party shall be deemed in default with respect to
       -------------
any of the terms, covenants and conditions of this Sublease if such party's
failure to timely perform is due in whole or in part to any strike, lockout,
labor trouble (whether legal or illegal), civil disorder, failure of power,
restrictive governmental laws and regulations, riots, insurrections, war,
shortages, accidents, casualties, acts of God, acts caused directly by the other
party or its agents, employees and invitees or any other cause beyond the
reasonable control of a party other than an insufficiency of funds.  This
Section shall not be applicable, however, if the failure to perform timely
creates a default under the Prime Lease.

32.    PARKING.  Subtenant shall have the same parking rights granted to
       -------
Sublandlord under the Prime Lease, if any, subject to the terms of the Prime
Lease.

33.    SIGNAGE.  Subtenant shall have the same signage rights granted to
       -------
Sublandlord under the Prime Lease, if any, subject to the terms of the Prime
Lease.  Subtenant shall, subject to the Prime Lease, modify all signage at the
Building identifying Subtenant, if any, so as to comply with Legal Requirements,
including without limitation, the termination of any licensing contracts with
Sublandlord.

34.  COOPERATION; ARBITRATION.
     ------------------------

A.    Each party hereto covenants to use commercially reasonable efforts to
cooperate with the other party and act in good faith in connection with this
Sublease.  The parties hereto shall not have been deemed to have agreed to the
resolution of any dispute arising out this Sublease by arbitration unless
resolution in such manner is required by the terms of the Prime Lease or shall
have been specifically provided for in this Sublease.  Disputes under the
following sections of this Sublease shall be resolved by arbitration: 11 and 16.
Every dispute between the parties that is expressly provided in this Sublease to
be resolved by arbitration shall be resolved in the manner provided in this
Section.

B.    The party requesting arbitration shall do so by giving notice to that
effect to the other party, and the parties shall have ten (10) days within which
to select one mutually agreeable arbitrator.  If the parties fail to agree on
one arbitrator within the ten (10)-day period, either party may promptly request
the American Arbitration Association (the "Association") to appoint one (1)
                                           -----------
arbitrator for the matter, and, in the absence of an identifiable conflict of
interest or demonstrable bias, the Association's selection shall be binding upon
Sublandlord and Subtenant.  The Association shall appoint as arbitrator an
individual with the following qualifications: at least ten (10) years'
experience in the business of commercial real estate (which experience shall be
deemed by the Association to be relevant to the pending dispute

                                      -12-
<PAGE>

                                                   [Sublease of Entire Premises]
                                                   -----------------------------

between Sublandlord and Subtenant) and never been a direct or indirect employee
or agent of either Sublandlord or Subtenant.

     C. The arbitration shall be conducted in accordance with the provisions
hereof and to the extent consistent with this Section, in accordance with the
then-prevailing commercial rules of the Association in the locality in which the
Premises are located. The arbitrator shall have the right to retain and consult
experts and competent authorities skilled in arbitration. The arbitrator shall
render his or her decision and award within 30 days after the final hearing.
Such decision and award shall be in writing and counterpart copies thereof shall
be delivered to each of the parties.

     D. The expenses of arbitration shall be apportioned between the parties by
the arbitrator, including counsel fees, audit costs, experts and presentations
of proof. The arbitrator may, however, determine that the unsuccessful party
shall pay all of such costs, including all costs incurred by the successful
party.

35.    ENVIRONMENTAL OBLIGATIONS OF SUBTENANT.  Subtenant covenants that no
       --------------------------------------
Hazardous Materials (as defined below) will be brought onto or stored or used in
the Premises by Subtenant or Subtenant's employees, agents, contractors and
invitees (collectively, "Subtenant's Representatives"), except in compliance
                         ---------------------------
with all Legal Requirements.  Subtenant shall hold harmless, indemnify and
defend Sublandlord from and against any Environmental Damages (as defined below)
resulting from events occurring on or about the Property caused by Subtenant or
Subtenant's Representatives.  "Hazardous Materials" shall mean any hazardous or
                               -------------------
toxic substance, material or waste (including constituents thereof) that is or
becomes regulated by one or more Governmental Authorities.  The words "Hazardous
                                                                       ---------
Materials" include, without limitation: (i) any material or substance listed or
---------
defined as a "hazardous waste," "extremely hazardous waste," "restricted
hazardous waste," "hazardous substance" or "toxic substance" under any Legal
Requirement; (ii) petroleum and its byproducts; (iii) asbestos, radon gas and
urea formaldehyde foam insulation; (iv) polychlorinated biphenyl; (v) any
substance designated as a hazardous or toxic waste or substance (or words of
similar import) pursuant to the Federal Water Pollution Control Act, as amended
(33 U.S.C. (S)1317), the Federal Resource Conservation and Recovery Act, as
amended (42 U.S.C. (S)6903), the Comprehensive Environmental Response,
Compensation and Liability Act, as amended (42 U.S.C. (S)(S)9601 et seq.), the
Toxic Substances Control Act, as amended (15 U.S.C. (S)(S)2601 et seq.), or the
Hazardous Materials Transportation Act, as amended (49 U.S.C. (S)(S)1801 et
seq.); or (vi) any other chemical, material, gas or substance, the exposure to
or release of which is or may hereafter be prohibited, limited or regulated by
any governmental or quasi-governmental entity having jurisdiction over the
Property or the operations or activity at the Property, or any chemical,
material, gas or substance that does or may pose a hazard to the health or
safety of the occupants of the Property or the occupants of property adjacent to
the Property.  "Environmental Damages" shall mean all claims, judgments, damages
                ---------------------
(including punitive damages), losses, penalties, fines, liabilities (including
strict liability), encumbrances and liens, and any other costs and expenses,
resulting from the existence on or in, or release to, the ground or air, of
Hazardous Materials in violation of, or alleged to be in violation of, the Legal
Requirements applicable thereto, including any attorneys' fees, disbursements,
consultant's fees and other costs resulting from: (i) investigation and defense
of any alleged claim;  (ii) directive of any Governmental Authorities, whether
or not the claims or directives are groundless, false or fraudulent, or are
ultimately defeated; and (iii) any settlement or judgment.

36.    MISCELLANEOUS.
       -------------

     A. BUSINESS DAYS. As herein, the term "business days" shall mean all days
        -------------                       -------------
except Saturdays, Sundays and any day that national banks operating in the State
of Connecticut are required or are authorized to close.

                                      -13-
<PAGE>

                                                   [Sublease of Entire Premises]
                                                   -----------------------------

     B.    SUCCESSORS. The terms, covenants and conditions contained in this
           ----------
Sublease shall bind and benefit the successors and assigns of the parties with
the same effect as if mentioned in each instance where a party is named or
referred to, except that no violation of the provisions of  Section 11 shall
                                                            ----------
operate to vest any rights in any successor or assignee or Subtenant.

     C.    ENTIRE AGREEMENT AND AMENDMENTS.  This Sublease contains the entire
           -------------------------------
agreement between the parties, and all prior negotiations and agreements are
merged in this Sublease.  This Sublease may not be changed, modified or
discharged, in whole or in part, except by a written instrument executed by the
party against whom enforcement of the change, modification or discharge is
sought.

     D.   GOVERNING LAW. This Sublease shall be governed in all respects by the
          -------------
laws of the State or Commonwealth in which the Premises are located.

     E.   SEPARABILITY.  If any term or provision of this Sublease or any
          ------------
application thereof shall be invalid or unenforceable, the remainder of this
Sublease and any other application of such term shall not be affected thereby.

     F.   NOTICE OF LEASE. This Sublease shall not be filed on the public
          ---------------
record.

     G.   COUNTERPARTS.  This Sublease may be executed in any number of
          ------------
counterparts, each of which upon execution and delivery shall be considered an
original for all purposes; provided, however, all such counterparts shall,
                           --------  -------
together, upon execution and delivery, constitute one and the same instrument.

     H.   CUMULATIVE REMEDIES; WAIVER. All of the remedies given to a party in
          ---------------------------
this Sublease in the event of default by the other party are in addition to all
other rights or remedies to which the first party may be entitled at law or in
equity; all such remedies shall be deemed cumulative and the election of one
shall not be deemed a waiver of any other or further rights or remedies. The
failure of either party to insist in any one or more instances upon the strict
performance of any one or more of the agreements, terms, covenants, conditions
or obligations of this Sublease, or to exercise any right, remedy or election
herein contained, shall not be construed as a waiver or relinquishment of the
future of the performance of such one or more obligations of this Sublease or of
the right to exercise such election, but the same shall continue and remain in
full force and effect with respect to any subsequent breach, act or omission,
whether of a similar nature or otherwise.

     I.    AMBIGUITIES.  Any rule of construction to the effect that any
           -----------
ambiguities are to be resolved against the drafting party shall not apply to the
interpretation of this Sublease or any amendments or exhibits hereto.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -14-
<PAGE>

                                                   [Sublease of Entire Premises]
                                                   -----------------------------

     IN WITNESS WHEREOF Sublandlord and Subtenant have duly executed this
Sublease as of the day and year first above written.

                                  Sublandlord:
                                  PITNEY BOWES INC.

                                  By:
                                     -------------------------------------
                                  Name:  Mary Maarbjerg
                                  Title: Vice President, Real Estate and
                                  Administration

                                  Subtenant:
                                  PITNEY BOWES OFFICE SYSTEMS, INC.

                                  By:
                                     -------------------------------------
                                  Name:  Mark S. Flynn
                                  Title: Vice President

                                      -15-
<PAGE>

                                                   [Sublease of Entire Premises]
                                                   -----------------------------

STATE OF ________________)
                         ) ss:
COUNTY OF _______________)

     The foregoing instrument was acknowledged before me this __ day of
_________, 2001, by Mary Maarbjerg, Vice President, Real Estate and
Administration of Pitney Bowes Inc., a Delaware corporation, on behalf of the
corporation.

                                 _____________________________________
                                 Notary Public
                                 My Commission Expires:

STATE OF                 )
                         ) ss:
COUNTY OF                )

     The foregoing instrument was acknowledged before me this __ day of
_________, 2001, by Mark S. Flynn, Vice President of Pitney Bowes Office
Systems, Inc., a Delaware corporation, on behalf of the corporation.

                                 _____________________________________
                                 Notary Public
                                 My Commission Expires:

                                      -16-
<PAGE>

                                                   [Sublease of Entire Premises]
                                                   -----------------------------

                        EXHIBIT A TO SUBLEASE AGREEMENT
                        -------------------------------

1.A.  Property Address:
      ----------------

1.B.  Prime Landlord:
      --------------

1.C.  Prime Landlord's Notice Address:
      -------------------------------

1.D.  Identification of Prime Lease and all Amendments thereto:
      --------------------------------------------------------

1.E.  Estimated Minimum Rent:    Annual      Monthly
      ----------------------     ------      -------

1.F.  Expiration Date of Prime Lease:
      ------------------------------

1.G.  Description of the Premises:
      ---------------------------

                                      -17-

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