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become an accession to the equipment and did not become the
property of Andantech.
Comdisco had an option (the final termination option) to
purchase the equipment at the end of the term of the equipment
lease at market value (as defined in the equipment lease). If
Comdisco installed any upgrades and did not exercise the final
termination option, Comdisco was required to either remove the
upgrade or consent to Andantech’s sale or re-lease of the equipment
with the upgrade. If, after termination of the lease, the
equipment with one or more upgrades was sold or re-leased to a
party other than Comdisco, Andantech would receive the portion of
the proceeds determined by multiplying the amount of the proceeds
by a fraction, the numerator of which would be the fair market
value of the equipment without the upgrades as of the date of the
sale or re-lease and the denominator of which would be the fair
market value of the equipment with the upgrades as of such date.
Comdisco was limited in its ability to selectively exercise
the final termination option. If Comdisco elected to exercise the
final termination option for any of the equipment in categories A
through D, it had to do so for all equipment in those categories.
Similarly, if Comdisco elected to exercise the final termination
option for any of the equipment in categories E through I, it had
to do so for all equipment in those categories.
Comdisco also had an option (the early termination option) to
terminate the equipment lease with respect to each category of
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