The following provides a brief overview of the product functionality offered by Calmont Leasing Ltd.:

Finance Leasing Of Vehicles

A vehicle finance lease is a contract whereby the Corporation leases a vehicle to a customer for a fixed monthly payment. The Corporation does not provide maintenance under finance lease agreements. The fixed monthly payment under a finance lease takes into account a number of factors including the capital cost of the vehicle, taxes, financing costs, depreciation and administration. In this type of lease an estimate of the residual value is made at the beginning of the lease term. The estimated residual value is a function of a number of factors including the term of the lease, the intended use of the vehicle and the projected condition of the used vehicle market. On termination, the customer is responsible for any shortfall equal to the difference between the residual value and the resale value of the vehicle. The term of the finance leases ranges from 3 to 6 years, with the average term being 42 months.

Full Service Vehicle Leasing

The Corporation's full service vehicle lease provides customers with one or more vehicles. All customers gain the benefit of service and maintenance facilities in all branches. A full service vehicle lease provides the customer with a vehicle and all the equipment and accessories necessary to operate the vehicle. In addition, as a term of its full service lease Calmont conducts a preventative maintenance and repair program which obligates the customer to return the vehicle for regular servicing and maintenance. The customer provides the driver, dispatches and otherwise exercises control over the vehicle.
Lease payments are made on a monthly basis and include a fixed monthly charge plus, in some cases, a kilometer usage charge. The fixed monthly charge takes into account a number of factors including the capital cost of the vehicle, operating costs, taxes, registration, financing costs, depreciation, administration, and in some cases, inflation.

The term of a full service lease ranges from 1 to 5 years, with the average term being approximately 4 years. Upon the termination of a full service vehicle lease, the vehicle is returned to the Corporation and sold. At the beginning of the lease term the residual value of the vehicle is estimated and the difference between its original cost and the residual value is then depreciated over the term of the lease.

Short-term Vehicle Leasing (Rentals)

Short-term vehicle leasing is normally defined as any lease less than twelve months, including leases to individuals and companies on a daily basis. Many customers utilizing the short-term vehicle lease service are either existing leasing customers who require additional vehicles to meet seasonal or cyclical demands or potential full service vehicle leasing customers.

Service

Service is provided in all of Calmont locations on an hourly or on a contract basis.

Vehicle Sales

As previously referenced, Calmont sells new trucks, trailers and equipment. Calmont operates used vehicle sales lots at all locations at which older rental vehicles, lease returns and other trucks are sold.

Part Sales

Part sales to support vehicle sales as described above is conducted at each location as required.