SOME THOUGHTS ON SOFTWARE LEASING

Why Lease Computer Software? Equipment values are dropping rapidly Operating leasing of computer equipment is a declining business Computer software has value Some Of The Issues Do You Believe Software Has Value? Is it worth more than hardware? Can you obtain a security interest in software? Is software leasing unsecured lending? Do You Understand The Software Industry? What market segments are there? What market segments are you interested in? What companies are you interested in? Are you vendor or lessee oriented? Are You Prepared To Revise Your Lease Documents? Lease or Promissory Note Are you a licensee/sublicensor? Usury laws Language revisions relating to software legal issues Language revisions relating to software business issues Are You Prepared To Reeducate Your Funding Sources? Can you give a security interest in software? Does your source think it is making an unsecured loan? Language revisions relating to software legal issues What About The Software License? Is it exclusive? Is it transferable? Is it perpetual? What are the other limitations on use? What About Remarketing? Can you repossess the software? Do you have the right to do remarketing? Can you remarket (from a business standpoint)? Will the software company remarket for you? Will the software company guarantee remarketing? Who suffers the loss from default? What Haven't We Mentioned?

© LPI Software Funding Group, Inc.  

593 Cricket Lane, Suite 200     Wayne, PA 19087  

610.687.4434      610.341.6100   sales@lpilease.com
                         February 27, 2006