Andantech L.L.C., Wells Fargo Equipment Finance, Inc. (f.k.a. Norwest Equipment Finance, Inc.), Tax Matters Partner, and Wells Fargo & Co., A Partner Other Than the Tax Matters Partner, et al. - Page 50

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          notes 2a-2i, referred to as the balloon notes) aggregating                    
          $19,990,51213 (the balloon notes, documenting the balloon loan), and          
          (ii) a junior recourse note in the amount of $87,429,31914 (the term          
          note, documenting the term loan).  The bank loan, the balloon loan,           
          and the term loan all were tied to the equipment lease.                       
               B.   The Equipment Lease                                                 
               Immediately after purchasing the equipment, Andantech leased             
          such equipment to Comdisco pursuant to the equipment lease; this              
          was a net lease.  The equipment consisted of 40 IBM mainframe                 
          computers and associated ancillary equipment.  There were nine                
          different models–-four were IBM 9121s and five were IBM 9021s (the            
          IBM 9021s were larger and more powerful than the IBM 9121s).  The             
          equipment lease separated the equipment into nine categories (A               
          through I) by model type.  Equipment in categories A through D                
          included the IBM 9121s and equipment in categories E through I                
          included the IBM 9021s.  The term of the equipment lease varied               
          from 41 to 47 months, depending upon the category of equipment.               
               During the term of the lease, Comdisco could, at its expense,            
          add or install upgrades on the equipment.  Any upgrade did not                

               13   Interest accrued on the principal at 9 percent per                  
          annum, compounded monthly.  Accrued interest was payable at                   
               14   Principal and interest were payable in monthly                      
          installments equal to the monthly rent due from Comdisco before               
          the early termination date under the lease.  Interest was payable             
          on the principal at 5 percent per annum, compounded monthly,                  
          subject to any increase in rent as provided in the lease.                     

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