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. FeaturesTypes of Financing Cash Reduces cost of acquisition to less than 100% of the cost of the equipment Maximizes cash flow (a financing tool with the lowest possible pmt.) Fixed rental rate for the term No fees Simplified account treatment 100% of the payment gets accounted for as an operating expense Comfortable and convenient Sometimes less than 100% financing (i.e. down pmt. requirement) Requires partner guarantees, cross-collateral securitization (i.e. “blanket liens”), and financial covenants Most assets have a 5-year depreciable life despite having a shorter useful life (P&L “hit”) No interest expense

11. Possible Ways to Acquire Equipment FeaturesTypes of Financing CashBank Reduces cost of acquisition to less than 100% of the cost of the equipment Maximizes cash flow (a financing tool with the lowest possible pmt.) Fixed rental rate for the term No fees Simplified account treatment 100% of the payment gets accounted for as an operating expense Comfortable and convenient Sometimes less than 100% financing (i.e. down pmt. requirement) Requires partner guarantees, cross-collateral securitization (i.e. “blanket liens”), and financial covenants Most assets have a 5-year depreciable life despite having a shorter useful life (P&L “hit”) No interest expense

12. Possible Ways to Acquire Equipment FeaturesTypes of Financing CashBankLeasing Reduces cost of acquisition to less than 100% of the cost of the equipment Maximizes cash flow (a financing tool with the lowest possible pmt.) Fixed rental rate for the term No fees Simplified account treatment 100% of the payment gets accounted for as an operating expense Comfortable and convenient Sometimes less than 100% financing (i.e. down pmt. requirement) Requires partner guarantees, cross-collateral securitization (i.e. “blanket liens”), and financial covenants Most assets have a 5-year depreciable life despite having a shorter useful life (P&L “hit”) No interest expense

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. 1. True Lease aka: Fair Market Value Lease, Tax Lease, Operating Lease Allows for technology refresh Pay for the use of the equipment during its useful life 2. 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.  Our Business Model  No Fees Lease  Enhanced Services through CCCS Collaboration  Complementary CustomerConnect™ Services  Complementary Liberty Value Recovery™ Services  Consolidated volume purchasing Benefits to Member Schools

17.  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: Gary Stom Transaction Manager Our Business Model Eric DeHart Commercial Account Officer Greg Campbell Marketing Manager

18. No Fees Lease

19.  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 Enhanced Services through CCCS Collaboration

20. CustomerCo nnect™  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. CustomerCo nnect™

22. 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. 1. Three years of year-end financial statements 2. A current interim financial statement 3. Any available bank and/or trade references 4. Agreed-upon proposal 5. Deposit check Credit Requirements for a Lease

25. 1. The customer selects equipment and orders the equipment through its preferred equipment supplier(s) 2. Upon delivery of equipment, the Lessor sends the final lease documentation, including a “Delivery Order and Acceptance Certificate” 3. Upon return of the signed lease documents, payment is sent to the customer’s equipment supplier(s) and payments commence from Lessee. 4. 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 Basic Steps of a Lease

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: 1. Buy 2. Extend 3. 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