1. Leasing vs. Buying Service Associate Member of Illinois ASBO

2. Overview Introduction Leasing Basics Leasing Benefits Leasing Programs Leasing Process Success Stories When to Lease & When to Buy

3. Introduction of Leasing Presenter Jason Marquardt Director of Sales American Capital (630) 512 - 0066 x118 jmarquardt@americancapital1.com

4. What is a lease? By definition, a lease is a contract by which one acquires equipment for a specified period of time for a specified rent paid to the lessor. For Schools, a lease is a way to acquire and/or finance equipment without voter approval. Leasing does not constitute public debt.

5. What can be leased? Computer Hardware Software Network Equipment Printers & Copiers Telephone Systems And Much More!

6. What are the benefits? Conservation of Capital (100% Financing) Consistent Budget Avoid Technology Obsolescence –Minimizes break/fix time –Reduces user/teacher frustration Lowest Cost of Funds Disposal issues eliminated Asset Management/Tracking

7. What type of lease programs are available? Fair Market Value Lowest Cost of Funds Flexible end of lease options Ideal in setting up an equipment replacement program $1 Purchase Option Often a tax-exempt lease Fixed ownership at the end of the lease Ideal for infrastructure or software projects.

8. Leasing Process Obtain planning costs Select equipment supplier & lessor Board approval Documentation Equipment ordering & delivery Acceptance and Lease Commencement

9. Success Stories Local K-12 School District –Challenge: Technology obsolescence and increasing technology staff costs –Solution: 3 year refresh program –Benefits: Less staff time spent on break-fix work. Students and Teachers no longer dealing with obsolete equipment.

10. Success Stories Local K-12 School District –Challenge: Large technology acquisition needed on a limited budget –Solution: 5 year tax-exempt lease –Benefits: Low payments spread out over 5 years and structured to keep the technology budget level

11. When to Lease & When to Buy When to Lease –Desire consistent budget –Desire to conserve capital –Desire to maintain current technology When to Buy –Desire to self manage technology refreshment cycle –Excess capital available to spend