Footnote 8

408F. Avici was, in substance and effect, a loan of Thirty-Four million Three HundredTwenty-Nine Thousand Eight Hundred Eight Dollars ($34,329,808.00) rather than a sale. Underthe Total Return Swap Agreement, ENA retained the benefits and costs of fluctuations in the valueof the Avici Shares, and Barclays received fixed payments that were equivalent to principal andinterest on the Barclays Loan.408G. At the time Avici closed, both the Insiders and Barclays knew that the Insiders’failure to record it as a loan would be misleading to Enron’s creditors. Because Enron retained thecosts and benefits of owning the Avici Shares, and because LJM2-Max’s equity contribution to theJGB Trust was not truly at risk or independent of Enron, the Avici transaction was not a proper saleof assets under FAS 140.408H. Less than a year after Avici closed, and after the market price of the Avici Shares haddeclined substantially, Enron and LJM2-Max agreed to unwind the transaction. JGB Trust repaidthe Barclays Loan in full on October 4, 2001.408I. For purposes of certain bankruptcy claims that arise from Avici, the following factsare pled more specifically: Enron Broadband Investments Corp. (“EBIC”), a wholly-ownedsubsidiary of Enron, contributed the Avici Shares to the sponsor company, EBIC-Apache LLC(“EBIC-Apache”), a single member Delaware limited liability company owned by EBIC, which inturn contributed the Avici Shares to two limited liability companies, JJB-I Asset L.L.C. (“JJB-I”)and JJB-II Asset L.L.C. (“JJB-II”). In exchange, EBIC-Apache received: (a) Class A memberinterests in JJB-I and JJB-II, representing 100% of the voting power and .01% of the economicinterests in those entities, and (b) preferred distributions of Nineteen million Four HundredThousand Dollars ($19,400,000.00) and Sixteen million Dollars ($16,000,000.00), the funds forwhich were provided by JGB Trust as set forth below.604041v1/007457-136-