Investment Research Associates - Page 435




                                       - 486 -                                         
               Under the remarketing agreement, Funding International                  
          agreed to act as agent for Cedilla Invest. in remarketing the                
          equipment, after the expiration of the original underlying                   
          leases.                                                                      
               As of January 1986, the equipment was not listed in the                 
          computer price guide, "The Blue Book of Used IBM Computer                    
          Prices".  Its residual value was zero.                                       
               Kanter received information regarding the Funding                       
          International/Cedilla Invest. transaction in December of 1979, in            
          a letter from the attorneys for Funding International.  The                  
          information included with the letter consisted of title documents            
          to the property, none of which documents was produced or provided            
          for incorporation in the record in this litigation.                          
               On January 17, 1980, a letter was sent from Attorney Alan               
          Axelrod regarding the delivery of promissory notes of Cedilla                
          Invest. for itself and its nominee, Kanter.                                  
               With respect to the British Aerospace transaction, the total            
          cash investment of Cedilla Invest., including the downpayment and            
          all interest to be paid on its notes was to be $11,982,686; the              
          rent to be received from Funding International was a total of                
          $11,483,360.38.  There was a net loss of $499,325.62 on the                  
          transaction.                                                                 










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