Footnote 8

(as defined below) to Barclays as security for the repayment of funds Colonnade had borrowed fromBarclays under the Committed Money Market Facility.416. During the same time period, Herzeleide LLC (“Herzeleide”), a wholly-ownedsubsidiary of Enron, was created for the sole purpose of being a party to certain option agreementswith Colonnade in the context of the SO2transactions. Herzeleide is the alter ego of Enron and itsaffiliates.417. On or about September 24, 2001, Herzeleide entered into an Option Agreement (the“September Option Agreement”) governing the various put and call arrangements with Colonnade.These arrangements gave Herzeleide a call option to purchase from Colonnade the exact sameamount and vintage years of Emission Credits as those purchased from ENA in the SeptemberTransaction. In addition, these arrangements gave Colonnade a put right to require Herzeleide topurchase the exact same amount and vintage years of the Emission Credits that ENA sold toColonnade.417A. On or about September 24, 2001, Colonnade paid Herzeleide Five Hundred Dollars($500.00) to purchase the put right under the September Option Agreement.418. Herzeleide acquired the call rights in exchange for a payment of Four HundredTwenty-Six Thousand Six Hundred Fifty-Nine Dollars and Thirty-Seven Cents ($426,659.37) toColonnade (the “Herzeleide September Payment”) – which was in effect a partial prepayment ofinterest on the money that Colonnade borrowed from Barclays for the September Transaction.419. Upon information and belief, the Herzeleide September Payment was in fact madeby Enron or ENA to Colonnade. Enron’s records show that Enron or ENA made a payment toColonnade equal to the amount that Herzeleide supposedly paid Colonnade as a premium for the calloption arrangement under the September Option Agreement.604041v1/007457-140-