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The equipment lease imposed an obligation upon Comdisco to
provide Andantech with annual reports, which, among other things,
contained information as to the location of the equipment. CIG
provided Andantech with location reports relating to the equipment
on March 1, 1994, February 27, 1995, and February 28, 1996. Ms.
Grossman received these reports.
The 40 mainframe computers in Andantech’s portfolio were
identified by serial number in the location reports. The computers
shown in the reports had the same serial numbers as those that were
on the 1993 bill of sale. The location of the equipment (and the
sublessee) sometimes changed. In light of the fact that the CIG
location reports reflected no changes in the serial numbers, Ms.
Grossman was unaware that Comdisco had substituted replacement
equipment for one of the 40 computers that Andantech purchased.
IX. Comdisco’s Exercise of Early Termination Options
On April 25, 1996, Comdisco informed Andantech that it was
exercising its early termination option to purchase the equipment
in categories E through I (i.e., the IBM mainframes in the 9021
series). On May 30, 1996, Comdisco received from Computer
Information Resources (CIR) an appraisal of the equipment in these
five categories, valuing the computers at $11,444,000.
Ms. Grossman asked Don Oram, an NEFI equipment manager, to
independently investigate the value of the equipment. After
reviewing several reports (Computer Price Watch and the Gartner
Group reports), on May 27, 1996, Mr. Oram informed Ms. Grossman
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