Equipment Lease & Asset Management Program

1. Equipment Lease & Asset Management Program

2. Agenda • Who is First American ? • The concept of leasing • The agreement with CCCS • Getting started

3. Who is First American? • First American is ranked in the top 2% out of 4,200+ leasing firms in USA • Currently one of only 17 independents on 2007 Top 100 list • 70% of FAEF business comes from repeat customers • 85% of FAEF revenues are from IT equipment. • 96% of our customers expressed overall satisfaction with FAEF (audited results) • 300 education clients INC Magazine ∙ 2001 #3 Fastest Growing Private Company Ranked #3 on the Inc. 500 list of the fastest growing private companies in the United States. INC Magazine ∙ 2002 #104 Fastest Growing Private Company Ranked #104 on the Inc. 500 list of the fastest growing private companies in the United States. Monitor 100 ∙ 2004 - 2007 #17 Independent Leasing Company Out of more than 4,200 leasing firms, First American’s financial stability and consistency placed it among the 100 largest leasing firms in the nation. In October 2007, First American’s CEO, William H. Verhelle, was elected to the Chairmanship of the ELFA, the industry’s premier trade organization. Equipment Leasing & Finance Association

4. Our Customers Come First

5. The Basics and Benefits of Leasing your Equipment Why Lease?

6. A contract in which one party (“Lessor”) conveys the use of an asset to another party (“Lessee”) for a specific period of time at a predetermined rate. What is an Equipment Lease?

7. There are over 4,200 leasing companies in the U.S. The equipment leasing industry is a $220 Billion industry The Equipment Leasing and Finance Association has found that 80% of American organizations lease some or all of their equipment Industry Numbers

8. Computer hardware and software LAN/WAN hardware and software Network security systems Student notebook programs Data storage systems Telecommunications equipment Videoconferencing systems Point-of-sale systems Athletic, stadium, and fitness equipment Video and broadcasting equipment Office, dorm or library furniture Medical and laboratory equipment Document imaging and archival systems Dining hall equipment Construction services Consulting and implementation services Prepaid technical support Types of Equipment & Services that can Be Leased

9. Pay cash Utilize traditional bank financing Utilize leasing Possible Ways to Acquire Equipment

10. Possible Ways to Acquire Equipment

11. Possible Ways to Acquire Equipment

12. Possible Ways to Acquire Equipment

13. Spreads operating expense evenly over the useful life of the asset Provides an additional source of capital Avoids cross-collateral securitization (i.e. “blanket liens”), and financial covenants Usually won’t affect debt covenants Simplified documentation Additional Benefits of Leasing

14. A structured, systematic way to refresh technology Reduces maintenance Reduces the burden and cost of equipment disposal Online asset management Lessor administration of equipment procurement A lease can finance maintenance and other service contracts Equipment Leasing – Technology Advantages

15. True Lease aka: Fair Market ValueLease, Tax Lease, Operating Lease Allows for technology refresh Pay for the use of the equipment during its useful life Capital Lease aka: $1.00 Buyout Lease, Conditional Sale, Finance Lease Predictable cost of ownership For assets with a longer useful life Two Basic Types of Leases

16. Benefits to Member Schools • Our Business Model • No Fees Lease • Enhanced Services through CCCS Collaboration • Complementary CustomerConnect™ Services • Complementary Liberty Value Recovery™ Services • Consolidated volume purchasing

17. Our Business Model • First American administers your lease from beginning to end • Consultative approach • Unbiased with respect to equipment selections • Master Lease approach • Single Point of Administrative Contact to interact with all customers: Eric DeHart Commercial Account Officer Gary Stom Transaction Manager Greg Campbell Marketing Manager

18. No Fees Lease

19. Enhanced Services through CCCS Collaboration • Access to volume discounted and creative financing products • Pre-Negotiated Master Lease • Consistent Project Manager for all schools • Trusted source of lease-financing services • Customized process and lease-financing structures

20. CustomerConnect™ • Provides confidential online asset management reporting • Track your leases and leased equipment 24 x 7 • Conveniently export reports into other file formats (.doc, .xls, .pdf )

21. CustomerConnect™

22. CustomerConnect™ Assets are listed by location and by equipment type to the serial number level. Additional information includes term, payment, billing, structure and termination date. This information can be exported to Excel or .pdf for additional review.

23. Liberty Value Recovery™ Program

24. Credit Requirements for a Lease Three years of year-end financial statements A current interim financial statement Any available bank and/or trade references Agreed-upon proposal Deposit check

25. Basic Steps of a Lease The customer selects equipment and orders the equipment through its preferred equipment supplier(s) Upon delivery of equipment, the Lessor sends the final lease documentation, including a “Delivery Order and Acceptance Certificate” Upon return of the signed lease documents, payment is sent to the customer’s equipment supplier(s) and payments commence from Lessee. At the end of a true lease, Lessee can continue to lease the equipment for short-term periods, purchase the equipment for its fair market value, or return the equipment

26. Lease Commencement Types: monthly quarterly Lease Deposit: Lease proposal specifies how the deposit will be applied Lease documentation is consistent on this issue Fees: None Commencement Types, Lease Deposits & Fees

27. Tax Indemnification: Tax law change will not impact lease rate Notice Requirement: Lease will require notice 90 days prior to the end of term Renewal Periods: 3 month renewal Tax Indemnification, Notice Requirements & Renewal Periods

28. Customizable Maximize flexibility Additional features available 3 basic options at the end of the term of a true lease: Buy Extend Return T&C’s – End of Term Options

29. Short-term Renewal Periods Selective Return Staggered Return Like-kind Equipment Return (Serial Number Substitution) Technology Exchange Option Equipment Return Location/Requirements Determination of Fair Market Value T&C’s – Customized End of Term Options

30. Managing and coordinating vendor progress payments Customized billing/invoicing to meet specific client needs Pack-and-ship logistical services to simply a client’s equipment return Data cleansing services to ensure the security of confidential client data Online asset management to facilitate simplified lease/asset management Additional Services Offered

31. Computer hardware and software LAN/WAN hardware and software Network security systems Student notebook programs Data storage systems Telecommunications equipment Videoconferencing systems Point-of-sale systems Athletic, stadium, and fitness equipment Video and broadcasting equipment Office, dorm or library furniture Medical and laboratory equipment Document imaging and archival systems Dining hall equipment Construction services Consulting and implementation services Prepaid technical support Types of Equipment & Services that can Be Leased

32. Case Studies • Conway, AR • Apple and Gateway PCs • 36 month technology refresh • Nashville, TN • Cisco networking equipment • Highly customized end-of-term • Step-up annual payments • Lynchburg, VA • Library and dorm room furniture • Sale-lease-back • Capital lease

33. Getting Started • Consulting on technology projects • Customized leasing proposals to fit your needs • A great financing solution for your school’s consideration