Our leasing program continues to be a viable option for those who may not qualify for note financing, and/or those who prefer the tax advantages leasing provides as compared to note financing. The following are several important details regarding leasing:

LEASING PARAMETERS

• Established customers may qualify for financing up to 100% of list price (including freight, delivery, installation, tax, etc.).

• Leases will be written for terms of 24, 36, 48, 60, 72 or 84 months.

• Minimum amount financed is $3,000.

• Minimum amount financed for term exceeding five years is $120,000.

• First and last lease payments remitted in advance.

• Monthly payment will be set up on auto draft from bank account.

• Leases may be prepaid in full at anytime. Prepayment amount is determined by discounting the then remaining obligation as per lease agreement. Partial prepayments are not accepted.

• Leases may be assumable by a third party, subject to Dexter Financial Services approval. However, original lessee remains obligated until lease is paid in full.

• Landlord Waiver & Consent form required for transactions greater than $50,000.

• Proof of insurance and Equipment Location lease required for transactions greater than $75,000.

Fixed Payment

Leasing establishes a fixed monthly payment for the duration of your lease. Changes to prime rate do not affect the monthly payment of a lease.

Purchase Option

Leases are written with one of three purchase options; $1, 10%, or FMV. With a $1 purchase option, title to the equipment is transferred to you for $1 upon satisfaction of contracted monthly payments. With a 10% purchase option, you pay a reduced amount monthly, but then must pay 10% of the original lease amount to obtain equipment title at end of the lease. Fair Market Value (FMV) purchase option leases are very similar to 10% purchase option leases. However, upon satisfaction of monthly payments, you may obtain equipment title by paying the then Fair Market Value. FMV leases are commonly referred to as "True Leases" for tax purposes. You may choose any of the above options, but must do so prior to documentation stage.

Taxes

Sales: Sales tax is charged differently depending on the State in which the equipment is located. Additionally, the purchase option you select will generally determine how sales tax is collected. Please call us with any questions you have regarding sales tax treatment of leases in your state.

Income: In some cases, lease payments may be fully deductible for income tax purposes. However, this area of the tax code is subject to varied interpretations. Therefore, we recommend that you speak with a qualified tax advisor.

Property

Several states assess an annual personal property tax to equipment. You are responsible for reporting and remitting property tax for equipment financed via Promissory Note, $1 Purchase Option Lease, and 10% Purchase Option Lease. We will report and remit property tax for equipment financed under a "true lease" FMV Purchase Option agreement, and you will be invoiced by us for a like amount.

Deferred Payments

Within our leasing programs we have a 90-day deferred option. This means your second payment would be due approximately 120 days from inception of lease. Lease payments for this program are slightly higher than those for a standard lease with a corresponding term.