As with most technology related projects, the equipment requirements that are forecast for the life of the project usually fall short of the actual requirements experienced during the project. Normally these inconsistencies occur because the scope of the project changes, the application (s) consume more resources than anticipated, the equipment does not perform exactly as expected, or some combination of the above reasons occur. The purpose of the Fail Safe Lease is to anticipate this eventuality by providing a mechanism where the problem (s) can be dealt with by the acquisition of more equipment without necessarily increasing the lease payments, i.e., the monthly lease payment can remain flat.

The Fail Safe Lease, like all leases with Partners, contains a lease term option relative to extending the lease for a period of 12 or more additional months that does not alter the lease's classification as an operating lease. The Fail Safe Lease also contains a unique Foresight lease extension option (which does not violate FASB 13 guidelines) where the extension may be executed prior to the termination of the initial lease term. The monthly payment during the extension remains the same as the initial term monthly payment with funds then being made available for additional equipment acquisition (s). For example, the monthly payments during the extension period would remain the same as the monthly payments during the initial lease term rather than being reduced to a calculated extension payment amount. Depending on the specific point in time when the extension is actually executed, a variable amount of funds would be established for the Customer to apply to the acquisition of additional equipment; equipment that had not been foreseen when the initial equipment acquisitions occurred.  

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