Hello Scott. You’re correct. An ‘Operating Lease’ term is by definition short compared to the useful life of the equipment. To achieve any operating lease, the lender must assume the risk that the equipment will be worth an imputed $amount large enough to not lose money at the end of the lease term. One solution could be shorten the term from 5 years down to 3 years so the equipment retains more value at end of lease term – but equipment subject to rapid technical obsolescence is never a good candidate for an Operating Lease structure. In those cases, a “First Amendment” structure that requires the Lessee to either release the equipment or buy it for the stated value is the only method to achieve Operating Lease status for the initial lease term. Thanks. Fletch