| LEASE      COMMITMENT :   | Up      to $200,000, available in one or more draw downs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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| COMMITMENT      TERM :              | 24      Months                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| MONTHLY RENTAL      FACTORS :       | Months      1-12:                             0.6667%      of outstanding PrincipalMonths      13-24:                           0.8333%      of outstanding PrincipalMonth      25+:                                1.6667%      of outstanding Principal |
| PRINCIPAL:                          | Amounts      drawn per the Lease Commitment shall constitute  Principal.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

| PAYMENTS: | Firepond      shall be responsible for the Monthly Rental Factor based on the average      principal outstanding each month which Monthly Lease Factor shall accrue      and be payable at the earlier of the end of the Lease Commitment Term or      upon optional repayment of Principal.  Principal may be repaid      in full or in part at any time without penalty, but in no case later than      expiration of the Commitment Term. |
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| DRAW DOWN      PROCEDURE: | Firepond      shall make all draw down requests to Lessor in writing in the form      attached to this Agreement.  Such writing shall contain the      amount of the Lease Commitment being requested, but in no event may the      aggregate draw downs exceed the Lease Commitment.  Approval of      the draw down is at the sole discretion of  Lessor. |
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| END OF LEASE      OPTIONS: | Upon      repayment of Principal in full at any time during the period of the      Commitment Term, the Equipment underlying this Agreement at the time of      such repayment may be purchased by the Company for the sum of Ten Dollars      ($10.00) in the aggregate.  In all other cases, at the end of      the Commitment Term all Equipment must be returned to Lessor at Lessor’s      address noted below. |
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| TITLE: | Until      payment of Principal for any draw down, title to the Equipment shall at      all times remain in the name of Lessor and Firepond at its expense shall      protect and defend Lessor’s title. |
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| EQUIPMENT AND      USES: | Servers,      routers, storage equipment, personal computers, laptop computers,      telephone systems, software as well as use for general corporate purposes.      All Equipment will remain covered by hardware maintenance and software      support agreements. |
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| RISK OF      LOSS: | Firepond      is responsible for all risk of loss or damage to the Equipment and shall      at all times insure the Equipment against risk of  loss. |
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| TAXES: | Firepond      shall be responsible for and pay all taxes related to the Equipment or      arising as a result of thisAgreement. |
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| FILINGS: | Firepond      will, at its expense, promptly file in Middlesex County, Commonwealth      of Massachusetts appropriate Forms UCC-1 evidencing this agreement and the      security interest in the Equipmenthereunder. |
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| LEASE      SCHEDULES: | Firepond      shall provide Lessor by the last day of each calendar quarter during the      Commitment Term, a schedule of all Equipment subject to this      Agreement. |
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| MISCELLANEOUS: | This      Agreement shall become effective immediately upon the execution hereof by      all of the parties identified on the signature pages    hereto. |
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| GOVERNING      LAW: | This      Agreement shall be governed by and construed in accordance with the laws      of the State of Delaware. |
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| COUNTERPARTS: | This      Agreement may be executed in multiple counterparts, each of which when so      executed shall be deemed to be original, but all such counterparts shall      together constitute but one and the same  instrument. |
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