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			&lt;font style="display: inline;font-weight:bold;"&gt;1. Organization and Limited Liability Company matters:&lt;/font&gt;
		&lt;/p&gt;
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			&lt;font style="display: inline;"&gt;&amp;nbsp;&lt;/font&gt;
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			&lt;font style="display: inline;"&gt;ATEL Capital Equipment Fund VIII, LLC (the &amp;#x201C;Company&amp;#x201D;&lt;/font&gt;&lt;font style="display: inline;"&gt; or the &amp;#x201C;Fund&amp;#x201D;&lt;/font&gt;&lt;font style="display: inline;"&gt;) was formed under the laws of the State of California on July 31, 1998. The Company was formed for the purpose of acquiring equipment to engage in equipment leasing and sales activities. The Managing Member &lt;/font&gt;&lt;font style="display: inline;"&gt;or Manager &lt;/font&gt;&lt;font style="display: inline;"&gt;of the Company is ATEL Financial Services, LLC (&amp;#x201C;AFS&amp;#x201D;), a California limited liability company. The Company &lt;/font&gt;&lt;font style="display: inline;"&gt;may&lt;/font&gt;&lt;font style="display: inline;"&gt; continue until &lt;/font&gt;&lt;font style="display: inline;"&gt;December&amp;nbsp;31, 2019&lt;/font&gt;&lt;font style="display: inline;"&gt;. Each Member&amp;#x2019;s personal liability for obligations of the Company generally will be limited to the amount of their respective contributions and rights to undistributed profits and assets of the Company. &lt;/font&gt;
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			&lt;font style="display: inline;font-size:9pt;"&gt;&amp;nbsp;&lt;/font&gt;
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			&lt;font style="display: inline;"&gt;The Company conducted a public offering of &lt;/font&gt;&lt;font style="display: inline;"&gt;15,000,000&lt;/font&gt;&lt;font style="display: inline;"&gt; Limited Liability Company Units (&amp;#x201C;Units&amp;#x201D;), at a price of $&lt;/font&gt;&lt;font style="display: inline;"&gt;10&lt;/font&gt;&lt;font style="display: inline;"&gt; per Unit. On January&amp;nbsp;13, 1999, subscriptions for the minimum number of Units (&lt;/font&gt;&lt;font style="display: inline;"&gt;120,000&lt;/font&gt;&lt;font style="display: inline;"&gt;, representing $&lt;/font&gt;&lt;font style="display: inline;"&gt;1.2&lt;/font&gt;&lt;font style="display: inline;"&gt; million) had been received (excluding subscriptions from Pennsylvania investors) and AFS requested that the subscriptions be released to the Company. On that date the Company commenced operations in its primary business. Gross contributions in the amount of $&lt;/font&gt;&lt;font style="display: inline;"&gt;135.7&lt;/font&gt;&lt;font style="display: inline;"&gt; million (&lt;/font&gt;&lt;font style="display: inline;"&gt;13,570,188&lt;/font&gt;&lt;font style="display: inline;"&gt; units) were received as of November 30, 2000, inclusive of $&lt;/font&gt;&lt;font style="display: inline;"&gt;500&lt;/font&gt;&lt;font style="display: inline;"&gt; of i&lt;/font&gt;&lt;font style="display: inline;"&gt;nitial Member&amp;#x2019;s capital investment and $&lt;/font&gt;&lt;font style="display: inline;"&gt;100&lt;/font&gt;&lt;font style="display: inline;"&gt; of AFS&amp;#x2019; capital investment. The offering was terminated on November 30, 2000. As of &lt;/font&gt;&lt;font style="display: inline;"&gt;June 30, 2013, &lt;/font&gt;&lt;font style="display: inline;"&gt;13,560,188&lt;/font&gt;&lt;font style="display: inline;"&gt; Units &lt;/font&gt;&lt;font style="display: inline;"&gt;remain&lt;/font&gt;&lt;font style="display: inline;"&gt; issued and &lt;/font&gt;&lt;font style="display: inline;"&gt;outstanding&lt;/font&gt;&lt;font style="display: inline;"&gt;.&lt;/font&gt;
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			&lt;font style="display: inline;font-size:9pt;"&gt;&amp;nbsp;&lt;/font&gt;
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			&lt;font style="display: inline;"&gt;The Company&amp;#x2019;s principal objectives have been to invest in a diversified portfolio of equipment that (i)&amp;nbsp;preserves, protects and returns the Company&amp;#x2019;s invested capital; (ii)&amp;nbsp;generates regular distributions to the Members of cash from operations and cash from sales or refinancing, with any balance remaining after certain minimum distributions to be used to purchase additional equipment during the reinvestment period (&amp;#x201C;Reinvestment Period&amp;#x201D;) (defined as &lt;/font&gt;&lt;font style="display: inline;"&gt;six&lt;/font&gt;&lt;font style="display: inline;"&gt; full years following the year the offering was terminated), which ended December 31, 2006, and (iii)&amp;nbsp;provides additional distributions following the Reinvestment Period and until all equipment has been sold. The Company is governed by its Limited Liability Company Operating Agreement (&amp;#x201C;Operating Agreement&amp;#x201D;), as amended.&lt;/font&gt;
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			&lt;font style="display: inline;"&gt;Pursuant to the Operating Agreement, AFS and/or its affiliates receive compensation &lt;/font&gt;&lt;font style="display: inline;"&gt;for services rendered &lt;/font&gt;&lt;font style="display: inline;"&gt;and reimbursements for &lt;/font&gt;&lt;font style="display: inline;"&gt;costs incurred&lt;/font&gt;&lt;font style="display: inline;"&gt; on behalf of the Company (&lt;/font&gt;&lt;font style="display: inline;"&gt;S&lt;/font&gt;&lt;font style="display: inline;"&gt;ee Note 5). The Company is required to maintain reasonable cash reserves for working capital, the repurchase of Units and contingencies. The repurchase of Units is solely at the discretion of AFS.&lt;/font&gt;
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			&lt;font style="display: inline;"&gt;As of &lt;/font&gt;&lt;font style="display: inline;"&gt;June 30, 2013&lt;/font&gt;&lt;font style="display: inline;"&gt;, the Company continues in the liquidation phase of its life cycle as defined in the Operating Agreement. &lt;/font&gt;
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			&lt;font style="display: inline;"&gt;These &lt;/font&gt;&lt;font style="display: inline;"&gt;unaudited interim financial statements should be read in conjunction with the financial statements and notes thereto contained in the report on Form 10-K for the year ended December 31, 201&lt;/font&gt;&lt;font style="display: inline;"&gt;2&lt;/font&gt;&lt;font style="display: inline;"&gt;, filed with the Securities and Exchange Commission.&lt;/font&gt;
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