<SUBMISSION>
<ACCESSION-NUMBER>0000891618-04-000926
<TYPE>S-3/A
<PUBLIC-DOCUMENT-COUNT>4
<FILING-DATE>20040428
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CADENCE DESIGN SYSTEMS INC
<CIK>0000813672
<ASSIGNED-SIC>7372
<IRS-NUMBER>770148231
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0102
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>S-3/A
<ACT>33
<FILE-NUMBER>333-110346
<FILM-NUMBER>04758442
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2655 SEELY ROAD BLDG 5
<CITY>SAN JOSE
<STATE>CA
<ZIP>95134
<PHONE>4089431234
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>555 RIVER OAKS PARKWAY
<CITY>SAN JOSE
<STATE>CA
<ZIP>95134
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>ECAD INC /DE/
<DATE-CHANGED>19880609
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>S-3/A
<SEQUENCE>1
<FILENAME>f94300a2sv3za.htm
<DESCRIPTION>AMENDMENT NO. 2 TO FORM S-3
<TEXT>
<HTML>
<HEAD>
<TITLE>sv3za</TITLE>
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<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
 <B><FONT size="2">As filed with the Securities and Exchange
Commission on April&nbsp;28, 2004</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="right">
<FONT size="2">Registration No.&nbsp;333-110346
</FONT>
</DIV>

<DIV align="left">
<HR size="1" width="100%" align="left" noshade>
</DIV>

<DIV align="left">
<HR size="1" width="100%" align="left" noshade>
</DIV>

<P align="center">
<B><FONT size="4">SECURITIES AND EXCHANGE COMMISSION</FONT></B>

<DIV align="center">
<B>Washington, D.C. 20549</B>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="center">
<B><FONT size="5">Pre-Effective</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<B><FONT size="5">Amendment No.&nbsp;2 To</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<B><FONT size="5">Form S-3</FONT></B>
</DIV>

<DIV align="center">
<B>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</B>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="center">
<B><FONT size="6">Cadence Design Systems, Inc.</FONT></B>

<DIV align="center">
<I><FONT size="2">(Exact Name of Registrant as Specified in its
Charter)</FONT></I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="57%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="40%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Delaware</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <B><FONT size="2">77-0148231</FONT></B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <I><FONT size="2">(State or Other Jurisdiction of<BR>
    Incorporation or Organization)</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <I><FONT size="2">(I.R.S. Employer<BR>
    Identification Number)</FONT></I></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<B><FONT size="2">2655 Seely Avenue, Building 5</FONT></B>

<DIV align="center">
<B><FONT size="2">San Jose, California 95134</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(408)&nbsp;943-1234</FONT></B>
</DIV>

<DIV align="center">
<FONT size="2">(Address, including Zip Code, and Telephone
Number,
</FONT>
</DIV>

<DIV align="center">
<FONT size="2">including Area Code, of Registrant&#146;s
Principal Executive Offices)
</FONT>
</DIV>

<P align="center">
<B><FONT size="2">R.L. Smith McKeithen, Esq.</FONT></B>

<DIV align="center">
<B><FONT size="2">Senior Vice President, General Counsel and
Secretary</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">Cadence Design Systems, Inc.</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">2655 Seely Avenue, Building 5</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">San Jose, California 95134</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(408)&nbsp;943-1234</FONT></B>
</DIV>

<DIV align="center">
<FONT size="2">(Address, including Zip Code, and Telephone
Number,
</FONT>
</DIV>

<DIV align="center">
<FONT size="2">including Area Code, of Agent for Service)
</FONT>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="center">
<I><FONT size="2">Copy to:</FONT></I>

<P align="center">
<B><FONT size="2">Gregory J. Conklin, Esq.</FONT></B>

<DIV align="center">
<B><FONT size="2">Gibson, Dunn &#38; Crutcher LLP</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">One Montgomery Street, 31st Floor</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">San Francisco, California 94104</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(415)&nbsp;393-8200</FONT></B>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Approximate Date of Commencement of Proposed
Sale to the Public:</FONT></B><FONT size="2"> From time to time
after the effective date of this Registration Statement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the only securities being registered on this
form are being offered pursuant to dividend or interest
reinvestment plans, please check the following
box.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If any of the securities being registered on this
form are to be offered on a delayed or continuous basis pursuant
to Rule&nbsp;415 under the Securities Act of 1933, other than
securities offered only in connection with dividend or interest
reinvestment plans, check the following
box.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#254;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If this form is filed to register additional
securities for an offering pursuant to Rule&nbsp;462(b) under
the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier
effective registration statement for the same
offering.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;<HR size="1" width="18%" align="left" noshade>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If this form is a post-effective amendment filed
pursuant to Rule&nbsp;462(c) under the Securities Act, check the
following box and list the Securities Act registration statement
number of the earlier effective registration statement for the
same
offering.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;<HR size="1" width="18%" align="left" noshade>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If delivery of this prospectus is expected to be
made pursuant to Rule&nbsp;434, check the following
box.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">The Registrant hereby amends this registration
statement on such date or dates as may be necessary to delay its
effective date until the Registrant shall file a further
amendment which specifically states that this registration
statement shall thereafter become effective in accordance with
Section&nbsp;8(a) of the Securities Act of 1933 or until the
registration statement shall become effective on such date as
the Commission, acting pursuant to said Section&nbsp;8(a), may
determine.</FONT></B>

<DIV align="left">
<HR size="1" width="100%" align="left" noshade>
</DIV>

<DIV align="left">
<HR size="1" width="100%" align="left" noshade>
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<TABLE width="100%" border="1" cellpadding="5"><TR><TD>
<FONT size="2" color="#CE1126">The information in this
prospectus is not complete and may be changed. The selling
securityholders may not sell these securities until the
registration statement filed with the Securities and Exchange
Commission is effective. This prospectus is not an offer to sell
these securities and it is not a solicitation of an offer to buy
these securities in any jurisdiction where the offer or sale is
not permitted. <BR>

</FONT>
</TD></TR></TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center">
<FONT size="2"> <B><FONT color="#CE1126">SUBJECT TO COMPLETION,
DATED APRIL&nbsp;28, 2004</FONT></B>
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center">
<B><FONT size="5">CADENCE DESIGN SYSTEMS, INC.</FONT></B>

<P align="center">
<B><FONT size="4">$420,000,000</FONT></B>

<DIV align="center">
<B><FONT size="4">Zero Coupon Zero Yield Senior Convertible
Notes due 2023</FONT></B>
</DIV>

<P align="center">
<B><FONT size="4">and</FONT></B>

<P align="center">
<B><FONT size="4">Shares of Common Stock</FONT></B>

<DIV align="center">
<B><FONT size="4">Issuable upon Conversion of the
Notes</FONT></B>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">
<FONT size="2">We originally issued these notes in private
placement transactions in August 2003. This prospectus will be
used by selling securityholders to resell their notes and the
common stock issuable upon conversion of the notes.
</FONT>

<P align="left">
<FONT size="2">Holders may convert the notes into our common
stock prior to stated maturity if: (1)&nbsp;the sale price of
our common stock reaches specified thresholds; (2)&nbsp;the
trading price of the notes falls below a specified threshold;
(3)&nbsp;the notes have been called for redemption; or
(4)&nbsp;one of certain specified corporate transactions occurs.
See &#147;Description of Notes&#151;Conversion Rights&#148;
beginning on page&nbsp;24.
</FONT>

<P align="left">
<FONT size="2">The initial conversion rate is 63.8790 shares of
our common stock per $1,000 principal amount of notes, which is
equivalent to a conversion price of $15.65 per share of common
stock. The conversion rate is subject to adjustment upon the
occurrence of specified events. See &#147;Description of
Notes&nbsp;&#151; Conversion Rights&nbsp;&#151; Conversion Rate
Adjustments&#148; beginning on page&nbsp;27.
</FONT>

<P align="left">
<FONT size="2">We may not redeem the notes before
August&nbsp;15, 2008. On or after that date, we may redeem all
or part of the notes for cash at a price equal to 100% of the
principal amount of the notes to be redeemed.
</FONT>

<P align="left">
<FONT size="2">Holders may require us to repurchase all or a
portion of their notes on August&nbsp;15, 2008, August&nbsp;15,
2013 and August&nbsp;15, 2018 at the repurchase prices set forth
in this prospectus. Holders may also require us to repurchase
all or a portion of their notes, upon the occurrence of a
significant change in our corporate ownership or structure
specified in this prospectus at 100% of the principal amount of
the notes, except in the event the sale price of our common
stock equals or exceeds 105% of the conversion price of the
notes during the period of such significant change as specified
in this prospectus. Upon a significant change in our corporate
ownership or structure involving a change of control we may pay
the repurchase price in cash or, in certain circumstances, in
shares of our common stock or a combination of cash and shares
of our common stock. See &#147;Description of
Notes&#151;Repurchase of the Notes by Us at the Option of
Holders Upon a Fundamental Change&#148; beginning on
page&nbsp;29.
</FONT>

<P align="left">
<FONT size="2">The notes are unsecured and rank equally with our
other existing or future unsecured senior indebtedness. However,
the notes are structurally subordinated to the indebtedness and
other liabilities of our subsidiaries.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">Since their initial issuance, the notes have been
eligible for trading on the PORTAL Market of the National
Association of Securities Dealers, Inc. However, notes sold by
means of this prospectus will no longer be eligible for trading
on the PORTAL Market. We do not intend to list the notes on any
other automated quotation system or any securities exchange. Our
common stock is listed on the New York Stock Exchange under the
symbol &#147;CDN.&#148; On April&nbsp;27, 2004, the closing
price of our common stock on the New York Stock Exchange was
$13.91 per share.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">The selling securityholders will receive all of
the net proceeds from the sale of the securities and will pay
all underwriting discounts and selling commissions, if any. We
are responsible for the payment of other expenses incident to
the registration of the securities. We will not receive any
proceeds from this offering.
</FONT>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">
<B>Investing in these notes and the common stock issuable upon
conversion of the notes involves risk. See the discussion
entitled &#147;Risk Factors&#148; beginning on page&nbsp;6.</B>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">
<B><FONT size="2">Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved
of these securities or passed upon the adequacy or accuracy of
this prospectus. Any representation to the contrary is a
criminal offense.</FONT></B>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">
<B><FONT size="2">This date of this prospectus
is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2004</FONT></B>
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<P><HR noshade><P>

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">SUMMARY</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">RISK FACTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">FORWARD-LOOKING STATEMENTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">RATIO OF EARNINGS TO FIXED CHARGES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">USE OF PROCEEDS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">DESCRIPTION OF NOTES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">DESCRIPTION OF CAPITAL STOCK</A></TD></TR>
<TR><TD colspan="9"><A HREF="#007">CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#008">SELLING SECURITYHOLDERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">PLAN OF DISTRIBUTION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#010">LEGAL MATTERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#011">EXPERTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#012">WHERE YOU CAN FIND MORE INFORMATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#013">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#014">EXHIBIT INDEX</A></TD></TR>
<TR><TD colspan="9"><A HREF="f94300a2exv12w1.txt">EXHIBIT 12.1</A></TD></TR>
<TR><TD colspan="9"><A HREF="f94300a2exv23w2.htm">EXHIBIT 23.2</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">TABLE OF CONTENTS</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="90%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Page</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">SUMMARY
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">RISK FACTORS
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">FORWARD-LOOKING STATEMENTS
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">RATIO OF EARNINGS TO FIXED CHARGES
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">USE OF PROCEEDS
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">DESCRIPTION OF NOTES
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">DESCRIPTION OF CAPITAL STOCK
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">CERTAIN UNITED STATES FEDERAL INCOME TAX
    CONSIDERATIONS
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">SELLING SECURITYHOLDERS
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">51</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PLAN OF DISTRIBUTION
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">LEGAL MATTERS
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">60</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">EXPERTS
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">60</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">WHERE YOU CAN FIND MORE INFORMATION
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<B><FONT size="2">You should rely only on the information
incorporated by reference or provided in this prospectus or any
prospectus supplement. We have not authorized anyone to provide
you with information that is different. This prospectus may be
used only where it is legal to sell these securities. The
information in this prospectus may only be accurate on the date
of this prospectus.</FONT></B>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "SUMMARY" -->
<DIV align="left"><A NAME="000"></A></DIV>

<P align="center">
<B><FONT size="2">SUMMARY</FONT></B>

<P align="left">
<I><FONT size="2">The following summary contains all the
information that we believe may be important to you in making an
investment decision regarding the notes. You should read this
entire prospectus, as well as the information to which we refer
you and the information incorporated by reference, before making
an investment decision. When used in this prospectus, the terms
&#147;Cadence,&#148; &#147;we,&#148; &#147;our&#148; and
&#147;us&#148; refer to Cadence Design Systems, Inc. and its
consolidated subsidiaries, unless otherwise specified.</FONT></I>

<P align="center">
<B><FONT size="2">Cadence Design Systems, Inc.</FONT></B>

<P align="left">
<FONT size="2">Cadence Design Systems, Inc. licenses electronic
design automation, or EDA, software, sells or leases hardware
technology and provides design and methodology services
throughout the world to help accelerate and manage
customers&#146; electronic product development processes. Our
broad range of products and services are used by the
world&#146;s leading electronics companies to design and develop
complex integrated circuits, or ICs, and personal and commercial
electronic systems. We have approximately 4,800&nbsp;employees,
in approximately 60&nbsp;sales offices, design centers and
research facilities located around the world.
</FONT>

<P align="left">
<FONT size="2">We manage our business through three operating
segments.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Products segment develops and markets our
    software and hardware technologies to our customers.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Maintenance segment services the on-going,
    after-sale support requirements of our products through
    technical support and software updates.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Services segment provides our customers with
    educational services focused on training customers for the
    efficient and effective use of our technologies, methodologies
    services to assist customers in optimizing the use of our
    technologies within their design activities, and design services
    to develop complex IC and other electronic components for our
    customers who select us as their design provider.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">We were formed as a Delaware corporation in April
1987. Our headquarters are located at 2655&nbsp;Seely Avenue,
San Jose, California 95134. Our telephone number is
(408)&nbsp;943-1234.
</FONT>

<P align="left">
<FONT size="2">Cadence&#174; and the Cadence logo are registered
trademarks of Cadence. All other product and company names are
trademarks or registered trademarks of their respective
companies.
</FONT>

<P align="center"><FONT size="2">2
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">The Offering</FONT></B>

<P align="left">
<FONT size="2">The following summary contains basic information
about the notes and is not intended to be complete. It does not
contain all the information that is important to you. For a more
complete description of the notes, please refer to the section
of this prospectus entitled &#147;Description of Notes.&#148;
For purposes of the description of the notes included in this
prospectus, references to &#147;the Company,&#148;
&#147;issuer,&#148; &#147;us,&#148; &#147;Cadence,&#148;
&#147;we&#148; and &#147;our&#148; refer only to Cadence Design
Systems, Inc. and do not include any of its subsidiaries.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="24%"></TD>
    <TD width="1%"></TD>
    <TD width="75%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Securities Offered</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">$420,000,000 principal amount of Zero Coupon Zero
    Yield Senior Convertible Notes due 2023.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">Common stock issuable upon conversion of the
    Notes.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Ranking</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">The notes rank equally in right of payment with
    all our existing and future unsecured senior debt and are senior
    in right of payment to all our existing and future subordinated
    debt. As of April&nbsp;3, 2004, we had total senior indebtedness
    of approximately $420.3&nbsp;million outstanding, including the
    $420.0 million of the notes but excluding trade payables. As of
    April&nbsp;3, 2004, our remaining $0.3&nbsp;million of senior
    indebtedness consisted of capital lease obligations secured by
    the underlying assets. The indenture does not limit the amount
    of debt that we or any of our subsidiaries may incur. The notes
    effectively rank junior to any of our secured indebtedness to
    the extent of the assets securing such indebtedness. Also, the
    notes are structurally subordinated to all liabilities of our
    subsidiaries. As of April&nbsp;3, 2004, our subsidiaries had
    aggregate indebtedness of approximately $0.2&nbsp;million,
    excluding intercompany debt and trade payables. As of
    April&nbsp;3, 2004, our subsidiaries had aggregate third-party
    liabilities of approximately $435.5&nbsp;million.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Maturity</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">August&nbsp;15, 2023, unless earlier redeemed,
    repurchased or converted.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Interest</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">The notes have an original principal amount of
    $1,000 per note and will not bear interest unless specified
    registration defaults under the registration rights agreement
    occur. See &#147;Description of Notes&#151; Registration
    Rights.&#148;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Conversion Rights</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">Holders may convert their notes into shares of
    our common stock at a conversion rate of 63.8790 shares per
    $1,000 principal amount of notes, subject to adjustment, prior
    to the close of business on the maturity date under the
    following circumstances:
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">1.&nbsp;during any quarterly conversion period
    prior to August&nbsp;15, 2018, if the sale price of our common
    stock for at least 20 trading days in the 30&nbsp;consecutive
    trading-day period ending on the first day of such conversion
    period is more than 145% of the conversion price on the first
    day of the conversion period;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">2.&nbsp;on or after August&nbsp;15, 2018, at any
    time after the sale price of our common stock on any date is
    more than 145% of the then current conversion price;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">3.&nbsp;during the five consecutive business day
    period following any five consecutive trading-day period in
    which the average of the trading prices for a note was less than
    98% of the average of the sale price of our common stock
    multiplied by the then applicable conversion rate;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">4.&nbsp;if the notes have been called for
    redemption; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">5.&nbsp;upon the occurrence of specified
    corporate transactions described under &#147;Description of
    Notes&#151;Conversion Rights&#148;.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">3
</FONT>

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<DIV>&nbsp;</DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="24%"></TD>
    <TD width="1%"></TD>
    <TD width="75%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Adjustment of <BR>
     Conversion Rate</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">We will adjust the conversion rate of the notes
    if any of the following events occurs:
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">1.&nbsp;we issue common stock as a dividend or
    distribution on our common stock or we effect a stock split or
    stock combination;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">2.&nbsp;we issue certain rights or warrants to
    all or substantially all holders of our common stock;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">3.&nbsp;we distribute shares of our capital
    stock, evidences of indebtedness or assets to all or
    substantially all holders of our common stock;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">4.&nbsp;we make distributions consisting of cash
    to all or substantially all holders of our common stock; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">5.&nbsp;we or one of our subsidiaries makes
    purchases of our common stock pursuant to a tender offer or
    exchange offer for our common stock.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Redemption at Our Option</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">On or after August&nbsp;15, 2008, we may redeem
    for cash all or any part of the notes, upon not less than 30 nor
    more than 60&nbsp;days notice before the redemption date, by
    mail to the trustee, the paying agent and each holder of notes,
    at 100% of the principal amount of the notes to be redeemed.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Sinking Fund</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">None.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Repurchase of Notes by Us at the Option of the
    Holder</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">Holders have the right to require us to
    repurchase all or any portion of their notes on August&nbsp;15,
    2008, August&nbsp;15, 2013 and August&nbsp;15, 2018, each of
    which we refer to in this prospectus as a repurchase date. In
    each case, the repurchase price will be payable in cash and will
    be as follows:
    </FONT></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="65%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="16%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="15%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Repurchase Date</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">% of Principal Amount</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">August&nbsp;15, 2008
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">100.25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">August&nbsp;15, 2013
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">100.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">August&nbsp;15, 2018
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">100.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV>&nbsp;</DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="24%"></TD>
    <TD width="1%"></TD>
    <TD width="75%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Fundamental Change</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">If we undergo a significant change in our
    corporate ownership or structure (as described in this
    prospectus under the heading &#147;Description of
    Notes&nbsp;&#151;&nbsp;Repurchase of the Notes by Us at the
    Option of Holders Upon a Fundamental Change&#148;), holders will
    have the option to require us to repurchase all or any portion
    of their notes, except in the event the sale price of our common
    stock equals or exceeds 105% of the conversion price of the
    notes during the period of such significant change as specified
    in this prospectus. The fundamental change repurchase price will
    be 100% of the principal amount of the notes to be repurchased.
    Upon a significant change in our corporate ownership or
    structure involving a change of control we may pay the
    repurchase price in cash or, in certain circumstances, in shares
    of our common stock or a combination of cash and shares of our
    common stock.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Registration Rights</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">We entered into a registration rights agreement
    with the initial purchasers of the notes in which we agreed to
    file with the SEC the shelf registration statement for the
    resale of the notes and the common stock issuable upon
    conversion of the notes of which this prospectus is a part. See
    &#147;Description of Notes &#151;&nbsp;Registration Rights.&#148;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">4
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV>&nbsp;</DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="24%"></TD>
    <TD width="1%"></TD>
    <TD width="75%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Use of Proceeds</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">The selling securityholders will receive all of
    the proceeds from the sale of the notes and the common stock
    pursuant to this prospectus, and we will receive none of such
    proceeds.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Book-Entry Form</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">The notes were issued in book-entry form only and
    are represented by permanent global certificates deposited with,
    or on behalf of, The Depository Trust Company (&#147;DTC&#148;),
    and registered in the name of a nominee of DTC. Beneficial
    interests in any of the notes will be shown on, and transfers
    will be effected only through, records maintained by DTC or its
    nominee and any such interest may not be exchanged for
    certificated securities, except in certain limited circumstances.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Trading</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">Since their initial issuance, the notes have been
    eligible for trading in the PORTAL Market of the National
    Association of Securities Dealers, Inc. However, notes sold by
    means of this prospectus will no longer be eligible for trading
    on the PORTAL Market. We do not intend to list the notes on any
    other automated quotation system or any securities exchange.
    Furthermore, we can provide no assurances as to the liquidity
    of, or trading market for, the notes.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Convertible Notes Hedge and Warrant
    Transactions</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">At the time of the issuance of the notes, we
    entered into convertible notes hedge transactions with JPMorgan
    Chase Bank, an affiliate of one of the initial purchasers of the
    notes, which are expected to reduce the potential dilution upon
    conversion of the notes. We also sold warrants to JPMorgan Chase
    Bank at such time. In connection with these hedging
    transactions, JPMorgan Chase Bank or its affiliates purchased
    our common stock in secondary market transactions and entered
    into various over-the-counter derivative transactions with
    respect to our common stock. JPMorgan Chase Bank or its
    affiliates is likely to modify its hedge positions from time to
    time prior to conversion or maturity of the notes by purchasing
    and selling shares of our common stock, other of our securities
    or other instruments it may wish to use in connection with such
    hedging. The effect, if any, of any of these transactions and
    activities on the market price of our common stock or the notes
    could adversely affect the value of our common stock and the
    value of the notes and, as a result, the number of shares and
    value of the common stock holders will receive upon the
    conversion of the notes.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Further Issues</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">We may from time to time, without notice to or
    the consent of the registered holders of the notes, create and
    issue additional debt securities having the same terms as and
    ranking equally and ratably with the notes in all respects, as
    described more fully in &#147;Description of
    Notes&#151;&nbsp;Further Issues.&#148;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">New York Stock <BR>
     Exchange Symbol for <BR>
     our Common Stock</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">CDN
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Risk Factors</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">Investment in the notes involves substantial
    risk. You should carefully consider the information under
    &#147;Risk Factors&#148; and all other information included in
    this prospectus and the documents incorporated by reference
    herein, before investing in the notes.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Tax Considerations</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">The notes have been issued with original issue
    discount. See &#147;Certain United States Federal Income Tax
    Considerations.&#148;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">5
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "RISK FACTORS" -->
<DIV align="left"><A NAME="001"></A></DIV>

<P align="center">
<B><FONT size="2">RISK FACTORS</FONT></B>

<P align="left">
<I><FONT size="2">Our business faces many risks. Described below
are what we believe to be the material risks that we face. If
any of the events or circumstances described in the following
risks actually occurs, our business, financial condition or
results of operations could suffer, and the trading price of our
common stock or the notes offered hereby could decline. You
should consider the following material risks as well as the
other information included and incorporated by reference in this
prospectus before deciding to invest in the notes.</FONT></I>

<P align="left">
<B><FONT size="2">Risks Related to Our Business</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We are subject to the cyclical nature of
    the integrated circuit and electronics systems industries, and
    any downturn may reduce our revenue.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Purchases of our products and services are
dependent upon the commencement of new design projects by IC
manufacturers and electronics systems companies. The IC industry
is cyclical and is characterized by constant and rapid
technological change, rapid product obsolescence and price
erosion, evolving standards, short product life cycles and wide
fluctuations in product supply and demand.
</FONT>

<P align="left">
<FONT size="2">The IC and electronics systems industries have
experienced significant downturns, often connected with, or in
anticipation of, maturing product cycles of both these
industries&#146; and their customers&#146; products and a
decline in general economic conditions. These downturns have
been characterized by diminished product demand, production
overcapacity, high inventory levels and accelerated erosion of
average selling prices.
</FONT>

<P align="left">
<FONT size="2">Since 2001, IC manufacturers and electronics
systems companies have experienced a downturn in demand and
production which has resulted in reduced research and
development spending by many of our customers. While many of
these companies appear to have experienced a gradual recovery in
the second half of 2003, they have continued their focus on cost
containment. Any economic downturn could harm our business,
operating results and financial condition.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD width="99%"></TD>
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    <TD></TD>
    <TD>
    <B><I><FONT size="2">Our failure to respond quickly to
    technological developments could make our products uncompetitive
    and obsolete.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">The industries in which we compete experience
rapid technology developments, changes in industry standards,
changes in customer requirements and frequent new product
introductions and improvements. Currently, the industries we
serve are experiencing several revolutionary trends:
</FONT>
<P>

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    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Migration to nanometer
    design:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the size of features such
    as wires, transistors and contacts on ICs is shrinking due to
    advances in semiconductor manufacturing processes. Process
    feature sizes refer to the width of the transistors and the
    width and spacing of the interconnect on the IC. Feature size is
    normally identified by the headline transistor length, which is
    shrinking from 180&nbsp;nanometers to 130&nbsp;nanometers and
    smaller. This is commonly referred to in the semiconductor
    industry as the migration to nanometer design. It represents a
    major challenge for participants in the semiconductor industry,
    from IC design and design automation to design of manufacturing
    equipment and the manufacturing process itself. Shrinkage of
    transistor length to such infinitesimal proportions is
    challenging fundamental laws of physics and chemistry.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The ability to design System-on-Chip, or SoC, ICs
    increases the complexity of managing a design that at the lowest
    level is represented by billions of shapes on the fabrication
    mask. In addition, SoCs typically incorporate microprocessors
    and digital signal processors that are programmed with software,
    requiring simultaneous design of the IC and the related software
    embedded on the IC.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Increased capability of Field-Programmable Gate
    Array, or FPGA, technologies creates an alternative to IC
    implementation for some electronics companies. This could reduce
    demand for Cadence&#146;s IC implementation products and
    services.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">A growing number of low-cost design services
    businesses could reduce the need for some IC companies to invest
    in EDA products.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">6
</FONT>

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<P>

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    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The challenges of nanometer design are leading
    some customers to work with older, less risky manufacturing
    processes. This may reduce their need to upgrade their EDA
    products and design flows.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">If we are unable to respond quickly and
successfully to these developments and the evolution of these
changes, we may lose our competitive position, and our products
or technologies may become uncompetitive or obsolete. To compete
successfully, we must develop or acquire new products and
improve our existing products and processes on a schedule that
keeps pace with technological developments in our industries. We
must also be able to support a range of changing computer
software, hardware platforms and customer preferences. We cannot
guarantee that we will be successful in this effort.
</FONT>

<P align="left">
<B><I><FONT size="2">We have experienced varied quarterly
operating results, and our operating results for any particular
fiscal period are affected by the timing of significant orders
for our software products, fluctuations in customer preferences
for license types and the timing of recognition of revenue under
those license types.</FONT></I></B>

<P align="left">
<FONT size="2">We have experienced, and may continue to
experience, varied quarterly operating results. In particular,
we have experienced quarterly net losses for three of the past
four quarters, and we may experience net losses in future
periods. In addition, we recorded a net loss for the fiscal year
ended January&nbsp;3, 2004. Various factors affect our quarterly
operating results and some of them are not within our control.
Our quarterly operating results are affected by the timing of
significant orders for our software products because a
significant number of licenses for our software products are in
excess of $5.0&nbsp;million. The failure to complete a license
for one or more orders for our software products in a particular
quarter could seriously harm our operating results for that
quarter.
</FONT>

<P align="left">
<FONT size="2">Our operating results are also affected by the
mix of license types executed in any given period. We license
software using three different license types: term, subscription
and perpetual. Product revenue associated with term and
perpetual licenses is generally recognized at the beginning of
the license period, whereas product revenue associated with
subscription licenses is recognized over multiple periods over
the term of the license. Revenue may also be deferred under term
and perpetual licenses until payments become due and payable
from customers with nonlinear payment terms or as cash is
collected from customers with lower credit ratings.
</FONT>

<P align="left">
<FONT size="2">We continue to experience increasing customer
preference for our subscription licenses and requests for more
flexible payment terms. We expect revenue recognized from
backlog to increase as a percentage of product revenue, on an
annual basis, assuming that customers continue to prefer
subscription licenses, or continue to request more flexible
payment terms, both of which cause revenue to be recognized over
time. In addition, revenue is impacted by the timing of license
renewals, changes in the extent to which contracts contain
flexible payment terms and changes in the mix of license types
(<I>i.e.</I> perpetual, term or subscription) for existing
customers, which changes could have the effect of accelerating
or delaying the recognition of revenue from the timing of
recognition under the original contract.
</FONT>

<P align="left">
<FONT size="2">We plan operating expense levels primarily based
on forecasted revenue levels. These expenses and the impact of
long-term commitments are relatively fixed in the short term. A
shortfall in revenue could lead to operating results below
expectations because we may not be able to quickly reduce these
fixed expenses in response to short-term business changes.
</FONT>

<P align="left">
<FONT size="2">You should not view our historical results of
operations as reliable indicators of our future performance. If
revenue or operating results fall short of the levels expected
by public market analysts and investors, the trading price of
our common stock could decline dramatically.
</FONT>

<P align="left">
<B><I><FONT size="2">Our future revenue is dependent in part
upon our installed customer base continuing to license
additional products, renew maintenance agreements and purchase
additional services.</FONT></I></B>

<P align="left">
<FONT size="2">Our installed customer base has traditionally
generated additional new license, service and maintenance
revenues. In future periods, customers may not necessarily
license additional products or contract for additional services
or maintenance. Maintenance is generally renewable annually at a
customer&#146;s option, and there are no mandatory payment
obligations or obligations to license additional software. If
our customers decide not to renew their maintenance agreements
or license additional products or contract for additional
services, or if they reduce the
</FONT>

<P align="center"><FONT size="2">7
</FONT>

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<DIV align="left">
<FONT size="2">scope of the maintenance agreements, our revenue
could decrease, which could have an adverse effect on our
results of operations.
</FONT>
</DIV>

<P align="left">
<B><I><FONT size="2">We may not receive significant revenues
from our current research and development efforts for several
years, if at all.</FONT></I></B>

<P align="left">
<FONT size="2">Internally developing software products and
integrating acquired software products into existing platforms
is expensive, and these investments often require a long time to
generate returns. Our strategy involves significant investments
in software research and development and related product
opportunities. We believe that we must continue to dedicate a
significant amount of resources to our research and development
efforts to maintain our competitive position. However, we cannot
predict that we will receive significant revenues from these
investments, if at all.
</FONT>

<P align="left">
<B><I><FONT size="2">We have acquired and expect to acquire
other companies and businesses and may not realize the expected
benefits of these acquisitions.</FONT></I></B>

<P align="left">
<FONT size="2">We have acquired and expect to acquire other
companies and businesses in the future. While we expect to
carefully analyze all potential acquisitions before committing
to the transaction, we cannot assure you that our management
will be able to integrate and manage acquired products and
businesses effectively or that the acquisitions will result in
long-term benefits to us or our stockholders. In addition,
acquisitions involve a number of risks. If any of the following
events occurs after we acquire another business, it could
seriously harm our business, operating results and financial
condition:
</FONT>
<P>

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<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Difficulties in combining previously separate
    businesses into a single unit;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The substantial diversion of management&#146;s
    attention from day-to-day business when evaluating and
    negotiating these transactions and then integrating an acquired
    business;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The discovery, after completion of the
    acquisition, of liabilities assumed from the acquired business
    or of assets acquired that are not realizable;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The failure to realize anticipated benefits such
    as cost savings and revenue enhancements;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The failure to retain key employees of the
    acquired business;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Difficulties related to assimilating the products
    of an acquired business in, for example, distribution,
    engineering and customer support areas;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Unanticipated costs;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Customer dissatisfaction with existing license
    agreements with Cadence, which may preclude access to products
    acquired by Cadence after the effective date of the license; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Failure to understand and compete effectively in
    markets in which we have limited previous experience.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">In a number of our acquisitions, we have agreed
to make future cash or stock payments based on the performance
of the businesses we acquired. The performance goals pursuant to
which these future payments may be made generally relate to
achievement by the acquired business of certain specified
bookings, revenue, product proliferation, product development or
employee retention goals during a specified period following
completion of the applicable acquisition. Future acquisitions
may involve issuances of stock as payment of the purchase price
for the acquired business and also incentive stock or option
grants to employees of the acquired businesses (which may be
dilutive to existing stockholders), expenditure of substantial
cash resources or the incurrence of material amounts of debt.
</FONT>

<P align="left">
<FONT size="2">The specific performance goal levels and amounts
and timing of contingent purchase price payments vary with each
acquisition. In the fiscal year ended January&nbsp;3, 2004, we
paid $2.4&nbsp;million in cash and issued 3.7&nbsp;million
shares, valued at $57.7&nbsp;million, to former stockholders of
acquired companies, as contingent purchase price.
</FONT>

<P align="center"><FONT size="2">8
</FONT>

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<P align="left">
<FONT size="2">The additional goodwill and deferred stock
compensation relates to the achievement of certain performance
goals related to bookings, product proliferation, product
development or employee retention resulting from acquisitions.
The goodwill is not expected to be deductible for income tax
purposes.
</FONT>

<P align="left">
<FONT size="2">In connection with our acquisitions completed
prior to January&nbsp;3, 2004, we may be obligated to pay up to
an aggregate of $39.1&nbsp;million in cash and issue a total of
0.8&nbsp;million shares of our common stock during fiscal 2004.
In addition, we may be required to pay an additional
$76.0&nbsp;million in cash from 2005 through 2007 if certain
performance goals related to bookings, revenues, product
development, product proliferation or employee retention are
achieved in full.
</FONT>

<P align="left">
<FONT size="2">Future acquisitions may result in increased
goodwill and other intangible assets, in addition to
acquisition-related charges. These assets may eventually be
written down to the extent they are deemed to be impaired, and
any such write-downs would adversely affect our results.
</FONT>

<P align="left">
<B><I><FONT size="2">Our failure to attract, train, motivate and
retain key employees may make us less competitive in our
industries and therefore harm our results of
operations.</FONT></I></B>

<P align="left">
<FONT size="2">Our business depends on the efforts and abilities
of our senior management, our research and development staff,
and a number of other key management, sales, support, technical
and services employees. The high cost of training new employees,
not fully utilizing these employees, or losing trained employees
to competing employers could reduce our gross margins and harm
our business and operating results. Even in the current economic
climate, competition for highly skilled employees can be
intense, particularly in geographic areas recognized as high
technology centers such as the Silicon Valley area, where our
principal offices are located, and the other locations where we
maintain facilities. If economic conditions improve and job
opportunities in the technology industry become more plentiful,
we may experience increased employee attrition and increased
competition for skilled employees. To attract, retain and
motivate individuals with the requisite expertise, we may be
required to grant large numbers of stock options or other
stock-based incentive awards, which may be dilutive to existing
stockholders. We may also be required to pay key employees
significant base salaries and cash bonuses, which could harm our
operating results. Additionally, if certain proposed accounting
standards were adopted we would be required to record a charge
to compensation expense for option grants.
</FONT>

<P align="left">
<FONT size="2">In addition, new regulations have been adopted by
the NYSE that require stockholder approval for new stock option
plans and significant amendments to existing plans, including
increases in options, and that prohibit NYSE member
organizations from giving a proxy to vote on equity compensation
plans unless the beneficial owner of the shares has given voting
instructions. These new regulations could make it more difficult
for us to grant options to employees in the future. To the
extent that new regulations make it more difficult or expensive
to grant options to employees, we may incur increased
compensation costs or find it difficult to attract, retain and
motivate employees, which could materially and adversely affect
our business.
</FONT>

<P align="left">
<B><I><FONT size="2">The competition in our industries is
substantial and we cannot assure you that we will be able to
continue to successfully compete in our
industries.</FONT></I></B>

<P align="left">
<FONT size="2">The EDA market and the commercial electronics
design and methodology services industries are highly
competitive. If we fail to compete successfully in these
industries, it could seriously harm our business, operating
results and financial condition. To compete in these industries,
we must identify and develop or acquire innovative and cost
competitive EDA products, integrate them into platforms and
market them in a timely manner. We must also gain industry
acceptance for our design and methodology services and offer
better strategic concepts, technical solutions, prices and
response time, or a combination of these factors, than those of
other design companies and the internal design departments of
electronics manufacturers. We cannot assure you that we will be
able to compete successfully in these industries. Factors that
could affect our ability to succeed include:
</FONT>
<P>

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<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The development by others of competitive EDA
    products or platforms and design and methodology services could
    result in a shift of customer preferences away from our products
    and services and significantly decrease revenue;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">9
</FONT>

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<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Decisions by electronics manufacturers to perform
    design and methodology services internally, rather than purchase
    these services from outside vendors due to budget constraints or
    excess engineering capacity;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The challenges of developing (or acquiring
    externally-developed) technology solutions which are adequate
    and competitive in meeting the requirements of next-generation
    design challenges;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The significant number of current and potential
    competitors in the EDA industry and the low cost of entry;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Intense competition to attract acquisition
    targets, which may make it more difficult for us to acquire
    companies at an acceptable price or at all; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The combination of or collaboration among many
    EDA companies to deliver more comprehensive offerings than they
    could individually.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">We currently compete in the EDA market primarily
with Synopsys, Inc., Mentor Graphics Corporation and Magma
Design Automation, Inc. In 2002 and 2003, Synopsys, Inc.
acquired two significant companies, Avant! Corporation and
Numerical Technologies, Inc., and the combined companies offer a
broader product range than any of them did before the mergers.
We also compete with numerous smaller EDA companies, with
manufacturers of electronic devices that have developed or have
the capability to develop their own EDA products, and with
numerous electronics design and consulting companies.
Manufacturers of electronic devices may be reluctant to purchase
services from independent vendors such as us because they wish
to promote their own internal design departments.
</FONT>

<P align="left">
<B><I><FONT size="2">We may need to change our pricing models to
compete successfully.</FONT></I></B>

<P align="left">
<FONT size="2">The intensely competitive markets in which we
compete can put pressure on us to reduce our prices. If our
competitors offer deep discounts on certain products in an
effort to recapture or gain market share or to sell other
software or hardware products, we may then need to lower prices
or offer other favorable terms to compete successfully. Any such
changes would be likely to reduce margins and can adversely
affect operating results. Any broadly-based changes to our
prices and pricing policies could cause sales and software
license revenues to decline or be delayed as our sales force
implements and our customers adjust to the new pricing policies.
Some of our competitors may bundle products for promotional
purposes or as a long-term pricing strategy or provide
guarantees of prices and product implementations. These
practices could, over time, significantly constrain the prices
that we can charge for our products. If we cannot offset price
reductions with a corresponding increase in the number of sales
or with lower spending, then the reduced license revenues
resulting from lower prices could have an adverse affect on our
results of operations.
</FONT>

<P align="left">
<B><I><FONT size="2">We rely on our proprietary technology as
well as software and other intellectual property rights licensed
to us by third parties, and we cannot assure you that the
precautions taken to protect our rights will be adequate or that
we will continue to be able to adequately secure such
intellectual property rights from third parties.</FONT></I></B>

<P align="left">
<FONT size="2">Our success depends, in part, upon our
proprietary technology. We generally rely on patents,
copyrights, trademarks, trade secret laws, licenses and
restrictive agreements to establish and protect our proprietary
rights in technology and products. Despite precautions we may
take to protect our intellectual property, we cannot assure you
that third parties will not try to challenge, invalidate or
circumvent these safeguards. We also cannot assure you that the
rights granted under our patents or attendant to our other
intellectual property will provide us with any competitive
advantages, or that patents will be issued on any of our pending
applications, or that future patents will be sufficiently broad
to protect our technology. Furthermore, the laws of foreign
countries may not protect our proprietary rights in those
countries to the same extent as applicable law protects these
rights in the United States. Many of our products include
software or other intellectual property licensed from third
parties. We may have to seek new or renew existing licenses for
such software and other intellectual property in the future. Our
design services business holds licenses to certain software and
other intellectual property owned by third parties. Our failure
to obtain, for our use, software or other intellectual property
licenses or other intellectual
</FONT>

<P align="center"><FONT size="2">10
</FONT>

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<DIV align="left">
<FONT size="2">property rights on favorable terms, or the need
to engage in litigation over these licenses or rights, could
seriously harm our business, operating results and financial
condition.
</FONT>
</DIV>

<P align="left">
<B><I><FONT size="2">Intellectual property infringement by or
against us could result in our loss of key
technology.</FONT></I></B>

<P align="left">
<FONT size="2">There are numerous patents in the EDA industry
and new patents are being issued at a rapid rate. It is not
always practicable to determine in advance whether a product or
any of its components infringes the patent rights of others. As
a result, from time to time, we may be forced to respond to or
prosecute intellectual property infringement claims to protect
our rights or defend a customer&#146;s rights. These claims,
regardless of merit, could consume valuable management time,
result in costly litigation, or cause product shipment delays,
all of which could seriously harm our business, operating
results and financial condition. In settling these claims, we
may be required to enter into royalty or licensing agreements
with the third parties claiming infringement. These royalty or
licensing agreements, if available, may not have terms favorable
to us. Being forced to enter into a license agreement with
unfavorable terms could seriously harm our business, operating
results and financial condition. Any potential intellectual
property litigation could force us to do one or more of the
following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Pay damages, license fees or royalties to the
    party claiming infringement;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Stop licensing products or providing services
    that use the challenged intellectual property;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Obtain a license from the owner of the infringed
    intellectual property to sell or use the relevant technology,
    which license may not be available on reasonable terms, or at
    all; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Redesign the challenged technology, which could
    be time-consuming and costly.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">If we were forced to take any of these actions,
our business and results of operations may suffer.
</FONT>

<P align="left">
<B><I><FONT size="2">We may not be able to effectively implement
our restructuring activities, and our restructuring activities
may not result in the expected benefits, which would negatively
impact our future results of operations.</FONT></I></B>

<P align="left">
<FONT size="2">The EDA market and the commercial electronics
design and methodology services industries are highly
competitive and change quickly. We have responded to increased
competition and changes in the industries in which we compete by
restructuring our operations and reducing the size of our
workforce. Despite our restructuring efforts over the last few
years, we cannot assure you that we will achieve all of the
operating expense reductions and improvements in operating
margins and cash flows currently anticipated from these
restructuring activities in the periods contemplated, or at all.
Our inability to realize these benefits, and our failure to
appropriately structure our business to meet market conditions,
could negatively impact our results of operations.
</FONT>

<P align="left">
<FONT size="2">As part of our recent restructuring activities,
we have reduced the workforce in certain revenue-generating
portions of our business, particularly in our services business.
This reduction in staffing levels could require us to forego
certain future strategic opportunities due to limited resources,
which could negatively affect our long-term revenues.
</FONT>

<P align="left">
<FONT size="2">In addition, these workforce reductions could
result in a lack of focus and reduced productivity by remaining
employees due to changes in responsibilities or concern about
future prospects, which in turn may negatively affect our future
revenues. Further, we believe our future success depends, in
large part, on our ability to attract and retain highly skilled
personnel. Our restructuring activities could negatively affect
our ability to attract such personnel as a result of perceived
risk of future workforce reductions.
</FONT>

<P align="left">
<FONT size="2">We also cannot assure you that we will not be
required to implement further restructuring activities or
reductions in our workforce based on changes in the markets and
industries in which we compete or that any future restructuring
efforts will be successful.
</FONT>

<P align="center"><FONT size="2">11
</FONT>

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<P align="left">
<B><I><FONT size="2">The lengthy sales cycle of our products and
services makes the timing of our revenue difficult to predict
and may cause our operating results to fluctuate
unexpectedly.</FONT></I></B>

<P align="left">
<FONT size="2">We have a lengthy sales cycle that generally
extends at least three to six months. The length of the sales
cycle may cause our revenue and operating results to vary
unexpectedly from quarter to quarter. The complexity and expense
associated with our business generally requires a lengthy
customer education, evaluation and approval process.
Consequently, we may incur substantial expenses and devote
significant management effort and expense to develop potential
relationships that do not result in agreements or revenue and
may prevent us from pursuing other opportunities.
</FONT>

<P align="left">
<FONT size="2">In addition, sales of our products and services
may be delayed if customers delay approval or commencement of
projects because of:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The timing of customers&#146; competitive
    evaluation processes; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Customers&#146; budgetary constraints and budget
    cycles.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Lengthy sales cycles for acceleration and
emulation hardware products subject us to a number of
significant risks over which we have limited control, including
insufficient, excess or obsolete inventory, variations in
inventory valuation and fluctuations in quarterly operating
results.
</FONT>

<P align="left">
<FONT size="2">Also, because of the timing of large orders and
our customers&#146; buying patterns, we may not learn of
bookings shortfalls, revenue shortfalls, earnings shortfalls or
other failures to meet market expectations until late in a
fiscal quarter, which could cause even more immediate and
serious harm to the trading price of our common stock.
</FONT>

<P align="left">
<B><I><FONT size="2">The profitability of our services business
depends on factors that are difficult to control, such as the
high cost of our services employees, our cost of performing our
fixed-price services contracts and the success of our design
services business, which has historically suffered
losses.</FONT></I></B>

<P align="left">
<FONT size="2">To be successful in our services business, we
must overcome several factors that are difficult to control,
including the following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Our cost of services employees is high and
    reduces our gross margin. </FONT></I><FONT size="2">Gross margin
    represents the difference between the amount of revenue from the
    sale of services and our cost of providing those services. We
    must pay high salaries to attract and retain professional
    services employees. This results in a lower gross margin than
    the gross margin in our software business. In addition, the high
    cost of training new services employees or not fully utilizing
    these employees can significantly lower gross margin. It is
    difficult to adjust staffing levels quickly to reflect customer
    demand for services; therefore, the services business has in the
    past and could continue to experience losses.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">A portion of services contracts consists of
    fixed-price contracts. </FONT></I><FONT size="2">Some of our
    customers pay a fixed price for services provided, regardless of
    the cost we must incur to perform the contract. If our cost in
    performing the services were to exceed the amount the customer
    has agreed to pay, we would experience a loss on the contract,
    which could harm our business, operating results and financial
    condition.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">We have historically suffered losses in our
    design services business.</FONT></I><FONT size="2"> The market
    for electronics design services is sensitive to customer
    budgetary constraints and engineering capacity. Our design
    services business has historically suffered losses. If our
    design services business fails to increase its revenue to offset
    its expenses, the design services business will continue to
    experience losses. Our failure to succeed in the design services
    business may harm our business, operating results and financial
    condition.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><I><FONT size="2">Our international operations may seriously
harm our financial condition because of the effect of foreign
exchange rate fluctuations and other risks to our international
business.</FONT></I></B>

<P align="left">
<FONT size="2">We have significant operations outside the United
States. Our revenue from international operations as a
percentage of total revenue was approximately 44% in 2003, 45%
in 2002 and 45% in 2001. We expect that revenue from our
international operations will continue to account for a
significant portion of our total revenue. We also transact
business in various foreign currencies. Recent economic and
political uncertainty and the
</FONT>

<P align="center"><FONT size="2">12
</FONT>

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<DIV align="left">
<FONT size="2">volatility of foreign currencies in certain
regions, most notably the Japanese yen and the European Union
euro, have had, and may continue to have, a seriously harmful
effect on our revenue and operating results.
</FONT>
</DIV>

<P align="left">
<FONT size="2">Fluctuations in the rate of exchange between the
U.S.&nbsp;dollar and the currencies of other countries in which
we conduct business could seriously harm our business, operating
results and financial condition. For example, if there is an
increase in the rate at which a foreign currency exchanges into
U.S.&nbsp;dollars, it will take more of the foreign currency to
equal the same amount of U.S.&nbsp;dollars than before the rate
increase. If we price our products and services in the foreign
currency, we will receive fewer U.S.&nbsp;dollars than we did
before the rate increase went into effect. If we price our
products and services in U.S.&nbsp;dollars, an increase in the
exchange rate will result in an increase in the price for our
products and services compared to those products of our
competitors that are priced in local currency. This could result
in our prices being uncompetitive in markets where business is
transacted in the local currency.
</FONT>

<P align="left">
<FONT size="2">Exposure to foreign currency transaction risk can
arise when transactions are conducted in a currency different
from the functional currency of one of our subsidiaries. A
subsidiary&#146;s functional currency is the currency in which
it primarily conducts its operations, including product pricing,
expenses and borrowings. Although we attempt to reduce the
impact of foreign currency fluctuations, significant exchange
rate movements may hurt our results of operations as expressed
in U.S.&nbsp;dollars.
</FONT>

<P align="left">
<FONT size="2">Our international operations may also be subject
to other risks, including:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The adoption and expansion of government trade
    restrictions;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Limitations on repatriation of earnings;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Limitations on the conversion of foreign
    currencies;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reduced protection of intellectual property
    rights in some countries;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Recessions in foreign economies;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Longer collection periods for receivables and
    greater difficulty in collecting accounts receivable;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Difficulties in managing foreign operations;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Political and economic instability;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Unexpected changes in regulatory requirements;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Tariffs and other trade barriers; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">U.S.&nbsp;government licensing requirements for
    exports which may lengthen the sales cycle or restrict or
    prohibit the sale or licensing of certain products.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">We have offices throughout the world, including
key research facilities outside of the United States. Our
operations are dependent upon the connectivity of our operations
throughout the world. Activities that interfere with our
international connectivity, such as computer &#147;hacking&#148;
or the introduction of a virus into our computer systems, could
significantly interfere with our business operations.
</FONT>

<P align="left">
<B><I><FONT size="2">Our operating results could be adversely
affected as a result of changes in our effective tax
rates.</FONT></I></B>

<P align="left">
<FONT size="2">Our future effective tax rates could be adversely
affected by the following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Earnings being lower than anticipated in
    countries where we are taxed at lower statutory rates as
    compared to the U.S. tax rate;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">An increase in expenses not deductible for tax
    purposes, including write-offs of acquired in-process technology
    and impairment of goodwill;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">13
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Changes in the valuation of our deferred tax
    assets and liabilities; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Changes in tax laws or the interpretation of such
    tax laws.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Any significant change in our future effective
tax rates could adversely impact our results of operations for
future periods.
</FONT>

<P align="left">
<B><I><FONT size="2">We have received an examination report from
the Internal Revenue Service proposing a tax deficiency in
certain of our tax returns, and the outcome of the examination
or any future examinations involving similar claims may have a
material adverse effect on our results of operations and cash
flows.</FONT></I></B>

<P align="left">
<FONT size="2">The IRS and other tax authorities regularly
examine our income tax returns. The IRS recently completed its
field examination of our federal income tax returns for the
fiscal years 1997 through 1999 and has issued a Revenue
Agent&#146;s Report, referred to as the RAR, in which the IRS
proposes to assess an aggregate tax deficiency for the
three-year period of approximately $143&nbsp;million, plus
interest, which interest will accrue until the matter is
resolved. This interest is compounded daily at rates published
by the IRS, which rates have been between four and nine percent
since 1997, and adjusts quarterly. The IRS may also make similar
claims for years subsequent to 1999 in future examinations. The
RAR is not a final Statutory Notice of Deficiency, and we have
filed a protest to certain of the proposed adjustments with the
IRS.
</FONT>

<P align="left">
<FONT size="2">The most significant of the disputed adjustments
relates to transfer pricing arrangements that we have with a
foreign subsidiary. We believe that the proposed IRS adjustments
are inconsistent with the applicable tax laws, and that we have
meritorious defenses to the proposed adjustments. We are
challenging these proposed adjustments vigorously.
</FONT>

<P align="left">
<FONT size="2">Significant judgment is required in determining
our provision for income taxes. In determining the adequacy of
our provision for income taxes, we regularly assess the
likelihood of adverse outcomes resulting from these
examinations, including the current IRS assessments. However,
the ultimate outcome of tax examinations cannot be predicted
with certainty, including the total amount payable or the timing
of any such payments upon resolution of these issues. In
addition, we cannot assure you that such amount will not be
materially different than that which is reflected in our
historical income tax provisions and accruals. Should the IRS or
other tax authorities assess additional taxes as a result of a
current or a future examination, we may be required to record
charges to operations in future periods that could have a
material impact on the results of operations, financial position
or cash flows in the applicable period or periods recorded.
</FONT>

<P align="left">
<B><I><FONT size="2">Failure to obtain export licenses could
harm our business by rendering us unable to ship products and
transfer our technology outside of the United
States.</FONT></I></B>

<P align="left">
<FONT size="2">We must comply with U.S.&nbsp;Department of
Commerce regulations in shipping our software products and
transferring our technology outside the United States and to
foreign nationals. Although we have not had any significant
difficulty complying with these regulations so far, any
significant future difficulty in complying could harm our
business, operating results and financial condition.
</FONT>

<P align="left">
<B><I><FONT size="2">Proposed regulations related to equity
compensation could cause us to recognize an additional expense,
which would result in a reduction in our net
income.</FONT></I></B>

<P align="left">
<FONT size="2">On March&nbsp;31, 2004, the Financial Accounting
Standards Board, or FASB, consistent with recent actions of
other accounting agencies and entities, issued a proposed
Statement &#147;Share Based Payment, an Amendment of FASB
Statements No.&nbsp;123 and 95&#148; relating to the accounting
for equity-based compensation. This statement proposes changes
to U.S. Generally Accepted Accounting Principles, or GAAP, that,
if implemented, would require us to record a charge to
compensation expense for stock option grants. We currently
account for stock options under Statement of Financial
Accounting Standards, or SFAS, No.&nbsp;123, &#147;Accounting
for Stock-Based Compensation&#148;. As permitted by SFAS
No.&nbsp;123, we have elected to use the intrinsic value method
prescribed by Accounting Principles Board Opinion No.&nbsp;25,
or APB Opinion No.&nbsp;25, &#147;Accounting for Stock Issued to
Employees,&#148; to measure compensation expense for stock-based
awards granted to employees, under which the granting of stock
options is not considered compensation, if the option exercise
price is not less than the fair market value of the
</FONT>

<P align="center"><FONT size="2">14
</FONT>

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<DIV align="left">
<FONT size="2">common stock at the grant date. The FASB&#146;s
proposal would eliminate our ability, starting in 2005, to
account for stock-based awards using the intrinsic value method
prescribed by APB Opinion No.&nbsp;25 and would instead require
that such awards be accounted for using a fair-value based
method, which would require us to measure the compensation
expense for all such awards, including stock options, at fair
value at the grant date. We cannot predict whether the proposed
regulations will be adopted, but if adopted they would have an
adverse affect on our results of operations.
</FONT>
</DIV>

<P align="left">
<B><I><FONT size="2">Errors or defects in our products and
services could expose us to liability and harm our
reputation.</FONT></I></B>

<P align="left">
<FONT size="2">Our customers use our products and services in
designing and developing products that involve a high degree of
technological complexity, each of which has its own
specifications. Because of the complexity of the systems and
products with which we work, some of our products and designs
can be adequately tested only when put to full use in the
marketplace. As a result, our customers or their end users may
discover errors or defects in our software or the systems we
design, or the products or systems incorporating our design and
intellectual property may not operate as expected. Errors or
defects could result in:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Loss of current customers and loss of or delay in
    revenue and loss of market share;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Failure to attract new customers or achieve
    market acceptance;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Diversion of development resources to resolve the
    problem;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Increased service costs; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Liability for damages.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><I><FONT size="2">If we become subject to unfair hiring
claims, we could be prevented from hiring needed employees,
incur liability for damages and incur substantial costs in
defending ourselves.</FONT></I></B>

<P align="left">
<FONT size="2">Companies in our industry whose employees accept
positions with competitors frequently claim that these
competitors have engaged in unfair hiring practices or that the
employment of these persons would involve the disclosure or use
of trade secrets. These claims could prevent us from hiring
employees or cause us to incur liability for damages. We could
also incur substantial costs in defending ourselves or our
employees against these claims, regardless of their merits.
Defending ourselves from these claims could also divert the
attention of our management from our operations.
</FONT>

<DIV align="left">
<FONT size="2">&nbsp;
</FONT>
</DIV>

<P align="left">
<B><I><FONT size="2">Our business is subject to the risk of
earthquakes, floods and other natural catastrophic
events.</FONT></I></B>

<P align="left">
<FONT size="2">Our corporate headquarters, including certain of
our research and development operations, and certain of our
distribution facilities, are located in the Silicon Valley area
of Northern California, which is a region known to experience
seismic activity. In addition, several of our facilities,
including our corporate headquarters, certain of our research
and development operations, and certain of our distribution
operations, are in areas of San Jose, California that have been
identified by the Director of the Federal Emergency Management
Agency, or FEMA, as being located in a special flood area. The
areas at risk are identified as being in a one hundred year
flood plain, using FEMA&#146;s Flood Hazard Boundary Map or the
Flood Insurance Rate Map. If significant seismic or flooding
activity were to occur, our operations may be interrupted, which
would adversely impact our business and results of operations.
</FONT>

<P align="left">
<B><I><FONT size="2">We maintain research and other facilities
in parts of the world that are not as politically stable as the
United States, and as a result we may face a higher risk of
business interruption from acts of war or terrorism than other
businesses located only or primarily in the United
States.</FONT></I></B>

<P align="left">
<FONT size="2">We maintain international research and other
facilities, some of which are in parts of the world that are not
as politically stable as the United States. Consequently, we may
face a greater risk of business interruption as a result of
terrorist acts or military conflicts than businesses located
domestically. Furthermore, this potential harm is exacerbated
given that damage to or disruptions at our international
research and development facilities could have an adverse effect
on our ability to develop new or improve existing products as
compared to other businesses
</FONT>

<P align="center"><FONT size="2">15
</FONT>

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<DIV align="left">
<FONT size="2">which may only have sales offices or other less
critical operations abroad. We are uninsured for losses or
interruptions caused by acts of war or terrorism.
</FONT>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<B><I><FONT size="2">We have taken, and continue to take,
actions to address reportable conditions identified by our
independent auditors with respect to our internal controls and
operations. Despite our efforts to address these reportable
conditions and, more generally, to establish and maintain
effective controls, we may not be able to detect all errors in
our financial reporting, which could adversely impact our
reported financial results.</FONT></I></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">As described in our Annual Report on Form 10-K
for fiscal 2003, our independent auditors identified certain
matters involving our internal controls and operations that they
considered to be &#147;reportable conditions&#147;, as defined
by the American Institute of Certified Public Accountants,
including the absence of appropriate (i) controls relating to
investments in non-marketable securities and (ii) documentation,
review and approval of significant non-revenue related
transactions, and the corresponding accounting entries
originating from departments other than corporate accounting. As
a result of these findings, we have implemented, and continue to
implement, actions to address these deficiencies and to enhance
the reliability and effectiveness of our control procedures.
Notwithstanding such actions, a control system can provide only
reasonable, not absolute, assurance that the objectives of the
control system are met. The design of any system of controls is
based, in part, upon certain assumptions about the likelihood of
future events, and there can be no assurance that any design
will succeed in achieving its stated goals under all potential
future conditions, regardless of how remote. Because of the
inherent limitations in a control system, misstatements due to
error or fraud may occur and may not be detected. Consequently,
despite our efforts to effectively address these reportable
conditions and, more generally, to establish and maintain
effective controls, errors in our financial reporting may occur,
which could adversely impact our reported financial results.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<B><FONT size="2">Risks Related to the Notes and Our Common
Stock</FONT></B>

<P align="left">
<B><I><FONT size="2">Our debt obligations expose us to risks
that could adversely affect our business, operating results and
financial condition, and could prevent us from fulfilling our
obligations under the notes.</FONT></I></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">We have a substantial level of debt. As of
April&nbsp;3, 2004, we had $420.3&nbsp;million of outstanding
indebtedness, including $420.0&nbsp;million of the notes. The
level of our indebtedness, among other things, could:
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">make it difficult for us to satisfy our payment
    obligations on our debt as described below;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">make it difficult for us to incur additional debt
    or obtain any necessary financing in the future for working
    capital, capital expenditures, debt service, acquisitions or
    general corporate purposes;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">limit our flexibility in planning for or reacting
    to changes in our business;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">reduce funds available for use in our operations;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">make us more vulnerable in the event of a
    downturn in our business;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">make us more vulnerable in the event of an
    increase in interest rates if we must incur new debt to satisfy
    our obligations under the notes; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">place us at a possible competitive disadvantage
    relative to less leveraged competitors and competitors that have
    greater access to capital resources.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">If we experience a decline in revenue due to any
of the factors described in this Risk Factors section or
otherwise, we could have difficulty paying amounts due on our
indebtedness. In the case of the notes, although the notes
mature in 2023, the holders of the notes may require us to
repurchase their notes at an additional premium in 2008, which
makes it probable that we will be required to repurchase the
notes in 2008 if the notes are not otherwise converted into our
common stock. If we are unable to generate sufficient cash flow
or otherwise obtain funds necessary to make required payments,
or if we fail to comply with the various requirements of our
indebtedness, including the notes, we would be in default, which
would permit the holders of our indebtedness to accelerate the
maturity of the indebtedness and could cause defaults under our
other indebtedness. Any default
</FONT>

<P align="center"><FONT size="2">16
</FONT>
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<DIV align="left">
<FONT size="2">under our indebtedness could have a material
adverse effect on our business, operating results and financial
condition.
</FONT>
</DIV>

<P align="left">
<B><I><FONT size="2">Because the notes are subordinated to our
secured debt and structurally subordinated to all liabilities of
our subsidiaries, upon our liquidation, bankruptcy or other
similar event the rights of note holders will be subject to the
prior claims of secured debt holders with respect to any assets
securing such debt and to the prior claims of our
subsidiaries&#146; creditors.</FONT></I></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">The notes rank equally with our other senior
debt, including our trade payables. The notes are not secured by
any of our assets or those of our subsidiaries. As a result, the
notes are effectively subordinated to any secured debt we may
incur. In any liquidation, dissolution, bankruptcy or other
similar proceeding, holders of our secured debt may assert
rights against any assets securing such debt in order to receive
full payment of their debt before those assets may be used to
pay the holders of the notes. As of April&nbsp;3, 2004,
excluding trade payables, we had approximately
$420.3&nbsp;million of senior indebtedness and $0.3&nbsp;million
of secured senior indebtedness outstanding. As of April&nbsp;3,
2004, the $420.3&nbsp;million of senior indebtedness included
$420.0&nbsp;million of the notes and $0.3&nbsp;million of
capital lease obligations that are secured by the underlying
assets.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">None of our subsidiaries guarantees our
obligations under, or has any obligation to pay any amounts due
on, the notes. As a result, the notes are effectively
subordinated to all liabilities of our subsidiaries. Our rights
and the rights of our creditors, including holders of the notes,
to participate in the assets of any of our subsidiaries upon
their liquidation or recapitalization will generally be subject
to the prior claims of those subsidiaries&#146; creditors.
Further, we have elected to permanently re-invest our earnings
from foreign subsidiaries outside of the United States. The
ability of our subsidiaries to pay dividends and make other
payments to us may be restricted by, among other things,
applicable corporate and other laws and regulations as well as
agreements to which our subsidiaries may become a party. As of
April&nbsp;3, 2004, our subsidiaries had aggregate indebtedness
of approximately $0.2&nbsp;million, excluding intercompany debt
and trade payables. As of April&nbsp;3, 2004, our subsidiaries
had aggregate third-party liabilities of approximately
$435.5&nbsp;million.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<B><I><FONT size="2">The notes do not restrict our ability to
incur additional debt or to take other actions that could
negatively affect holders of the notes.</FONT></I></B>

<P align="left">
<FONT size="2">We are not restricted under the terms of the
notes from incurring additional indebtedness, including other
senior indebtedness or secured indebtedness. In addition, the
limited covenants applicable to the notes do not restrict our
ability to pay dividends, issue or repurchase stock or other
securities or require us to achieve or maintain any minimum
financial results relating to our financial position or results
of operations. Our ability to recapitalize, incur additional
debt and take a number of other actions that are not limited by
the terms of the notes could have the effect of diminishing our
ability to make payments on the notes when due. Although the
notes do not contain such financial and other restrictive
covenants, future indebtedness could include such covenants. If
we incur additional indebtedness or other liabilities, our
ability to pay our obligations on our outstanding indebtedness
could be adversely affected. In addition, the indenture does not
afford protection to holders of the notes in the event of a
significant change in our corporate ownership or structure
except to the extent described under &#147;Description of
Notes&#151; Repurchase of the Notes by Us at the Option of
Holders Upon a Fundamental Change.&#148;
</FONT>

<P align="left">
<B><I><FONT size="2">We may be unable to repay or repurchase the
notes or our other indebtedness, which may result in defaults
and other costs to us.</FONT></I></B>

<P align="left">
<FONT size="2">We may not have sufficient funds or may be unable
to arrange for additional financing to pay the principal amount
due at maturity or the repurchase price of the notes. Any future
borrowing arrangements or debt agreements to which we become a
party may contain restrictions on or prohibitions against our
repayment or repurchase of the notes. At maturity, the entire
outstanding principal amount of the notes will become due and
payable. Holders may require us to repurchase for cash all or
any portion of the notes on August&nbsp;15, 2008 for 100.25% of
the principal amount, August&nbsp;15, 2013 for 100.00% of the
principal amount and August&nbsp;15, 2018 for 100.00% of the
principal amount. As a result, although the notes mature in
2023, the holders may require us to repurchase the notes at an
additional premium in 2008, which makes it probable that we will
be required to repurchase the notes in 2008 if the notes are not
otherwise converted into our common stock. If we are prohibited
from repaying or repurchasing the notes, we could try to obtain
the consent of lenders under those arrangements,
</FONT>

<P align="center"><FONT size="2">17
</FONT>
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<DIV align="left">
<FONT size="2">or we could attempt to refinance the borrowings
that contain the restrictions. If we do not obtain the necessary
consents or refinance the borrowings, we may be unable to repay
or repurchase the notes. Any such failure would constitute an
event of default under the indenture which could, in turn,
constitute a default under the terms of any other indebtedness
then outstanding.
</FONT>
</DIV>

<P align="left">
<FONT size="2">In addition, a material default on our
indebtedness could suspend our eligibility to register
securities using certain registration statement forms under SEC
guidelines which incorporate by reference substantial
information regarding us rather than requiring quarterly and
other revision and updating, which could potentially hinder our
ability to raise capital through the issuance of our securities
and will increase the costs of such registration to us.
</FONT>

<P align="left">
<B><I><FONT size="2">The conditional conversion feature of the
notes could result in holders receiving less than the value of
the common stock into which a note is convertible.</FONT></I></B>

<P align="left">
<FONT size="2">The notes are convertible into shares of our
common stock only if specified conditions are met. See
&#147;Description of Notes&#151; Conversion Rights.&#148; If the
specific conditions for conversion are not met, holders will not
be able to convert their notes, and holders may not be able to
receive the value of the common stock into which the notes would
otherwise be convertible.
</FONT>

<P align="left">
<B><I><FONT size="2">An active public market may not develop for
the notes, and, if such a market is not developed or sustained,
the trading price of the notes could decline.</FONT></I></B>

<P align="left">
<FONT size="2">The notes are a new issue of securities with no
established trading market. Since their initial issuance, the
notes have been eligible for trading in PORTAL. However, the
notes resold pursuant to the registration statement of which
this prospectus is a part will no longer be eligible for trading
in PORTAL, and we do not intend to list them on any other
automated quotation system or any securities exchange. At the
time of the initial issuance of the notes in August&nbsp;2003,
the initial purchasers of the notes advised us that they
intended to make a market in the notes; however, they are not
obligated to do so and may discontinue market making at any time
without notice. In addition, market making activity by the
initial purchasers is subject to the limits imposed by the
Securities Act and the Exchange Act.
</FONT>

<P align="left">
<FONT size="2">As a result, a market for the notes may not
develop or, if one does develop, it may not be maintained. If an
active market for the notes fails to develop or be sustained,
the trading price of the notes could decline significantly.
</FONT>

<P align="left">
<FONT size="2">In addition, the liquidity of the trading market
for the notes, if any, and the market price quoted for the notes
may be adversely affected by changes in interest rates in the
market for comparable securities and by changes in our financial
performance or prospects, as well as by declines in the prices
of securities, or the financial performance or prospects of
similar companies.
</FONT>

<P align="left">
<B><I><FONT size="2">The price of our common stock, and
therefore the price of the notes, may fluctuate significantly,
which may make it difficult for holders to resell the notes or
the common stock issuable upon conversion of the notes when
desired or at attractive prices.</FONT></I></B>

<P align="left">
<FONT size="2">The market price of the notes is expected to be
affected significantly by the market price of our common stock.
The market price of our common stock is subject to significant
fluctuations in response to the factors set forth in this Risk
Factors section and other factors, many of which are beyond our
control. Such fluctuations, as well as economic conditions
generally, may adversely affect the market price of our common
stock and the notes.
</FONT>

<P align="left">
<FONT size="2">In addition, the stock markets in recent years
have experienced extreme price and trading volume fluctuations
that often have been unrelated or disproportionate to the
operating performance of individual companies. These broad
market fluctuations may adversely affect the price of our common
stock, regardless of our operating performance. Because the
notes are convertible into shares of our common stock,
volatility of or depressed prices for our common stock could
have a similar effect on the trading price of the notes. Holders
who receive common stock upon conversion of the notes also will
be subject to the risk of volatility and depressed prices of our
common stock.
</FONT>

<P align="left">
<FONT size="2">Sales of substantial amounts of shares of our
common stock in the public market after this offering, or the
perception that those sales may occur, could cause the market
price of our common stock to decline. The indenture for the
notes does not restrict our ability to issue additional shares
of common stock or other securities
</FONT>

<P align="center"><FONT size="2">18
</FONT>
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<DIV align="left">
<FONT size="2">convertible into or exchangeable for our common
stock. We have used and may continue to use our common stock or
securities convertible into or exchangeable for our common stock
to acquire technology, product rights or businesses, or for
other purposes. Because the notes are convertible into common
stock only at a conversion price in excess of the recent trading
price, such a decline in our common stock price may cause the
value of the notes to decline.
</FONT>
</DIV>

<P align="left">
<B><I><FONT size="2">Conversion of the notes will dilute the
ownership interests of existing stockholders.</FONT></I></B>

<P align="left">
<FONT size="2">The terms of the notes permit the holders to
convert the notes into shares of our common stock. The notes are
convertible into our common stock initially at a conversion
price of $15.65 per share, which would result in an aggregate of
approximately 26.8&nbsp;million shares of our common stock
issued upon conversion, subject to adjustment upon the
occurrence of specified events. The conversion of some or all of
the notes will dilute the ownership interest of our existing
stockholders. Any sales in the public market of the common stock
issuable upon such conversion could adversely affect prevailing
market prices of our common stock. Prior to the conversion of
the notes, if the trading price of our common stock exceeds the
conversion price of the notes by 145% or more over specified
periods, earnings per share will be diluted if and to the extent
the convertible notes hedge instruments are not exercised. We
may redeem for cash all or any part of the notes on or after
August&nbsp;15, 2008 for 100.00% of the principal amount. The
holders may require us to repurchase for cash all or any portion
of their notes on August&nbsp;15, 2008 for 100.25% of the
principal amount, on August&nbsp;15, 2013 for 100.00% of the
principal amount, or on August&nbsp;15, 2018 for 100.00% of the
principal amount.
</FONT>

<P align="left">
<FONT size="2">Each $1,000 of principal of the notes will
initially be convertible into 63.8790&nbsp;shares of our common
stock, subject to adjustment upon the occurrence of specified
events. Holders of the notes may convert their notes prior to
maturity only if specified conditions are met. See
&#147;Description of Notes&#151; Conversion Rights.&#148; As a
result, although the notes mature in 2023, the holders may
require us to repurchase their notes at an additional premium in
2008, which makes it probable that we will be required to
repurchase the notes in 2008 if the notes are not otherwise
converted into our common stock.
</FONT>

<P align="left">
<FONT size="2">Although the conversion price is currently $15.65
per share, the convertible notes hedge and warrant transactions
that we entered into in connection with the issuance of the
notes effectively increased the conversion price of the notes
until 2008 to approximately $23.08 per share, which would result
in an aggregate issuance upon conversion prior to
August&nbsp;15, 2008 of approximately 18.2&nbsp;million shares
of our common stock. We have entered into convertible notes
hedge and warrant transactions to reduce the potential dilution
from the conversion of the notes, however we cannot guarantee
that such convertible notes hedge and warrant instruments will
fully mitigate the dilution. In addition, the existence of the
notes may encourage short selling by market participants because
the conversion of the notes could depress the price of our
common stock.
</FONT>

<P align="left">
<B><I><FONT size="2">We may, at the option of the noteholders
and only in certain circumstances, be required to repurchase the
notes in shares of our common stock upon a significant change in
our corporate ownership or structure, and issuance of shares to
repurchase the notes would result in dilution to our existing
stockholders.</FONT></I></B>

<P align="left">
<FONT size="2">Under the terms of the notes, we may be required
to repurchase the notes following a significant change in our
corporate ownership or structure, such as a change of control,
prior to maturity of the notes. Following a significant change
in our corporate ownership or structure, in certain
circumstances, we may choose to pay the repurchase price of the
notes in cash, shares of our common stock or a combination of
cash and shares of our common stock. In the event we choose to
pay all or any part of the repurchase price of notes in shares
of our common stock, this would result in dilution to the
holders of our common stock.
</FONT>

<P align="left">
<B><I><FONT size="2">Convertible notes hedge and warrant
transactions entered into in connection with the issuance of the
notes may affect the value of the notes and our common
stock.</FONT></I></B>

<P align="left">
<FONT size="2">We entered into convertible notes hedge
transactions with JPMorgan Chase Bank, an affiliate of one of
the initial purchasers of the notes, at the time of issuance of
the notes, with the objective of reducing the potential dilutive
effect of issuing our common stock upon conversion of the notes.
We also entered into warrant transactions. See &#147;Description
of Capital Stock&#151; Call Options and Warrants&#148;. In
connection with our convertible notes hedge and warrant
transactions, JPMorgan Chase Bank or its affiliates purchased
our common stock in secondary market transactions and entered
into various over-the-counter derivative transactions with
respect to our common stock.
</FONT>

<P align="center"><FONT size="2">19
</FONT>
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<DIV align="left">
<FONT size="2">JPMorgan Chase Bank or its affiliates is likely
to modify its hedge positions from time to time prior to
conversion or maturity of the notes by purchasing and selling
shares of our common stock, other of our securities or other
instruments it may wish to use in connection with such hedging.
The effect, if any, of any of these transactions and activities
on the market price of our common stock or the notes could
adversely affect the value of our common stock and the value of
the notes and, as a result, the number of shares and the value
of the common stock holders will receive upon conversion of the
notes. In addition, subject to movement in the trading price of
our common stock, if the convertible notes hedge transactions
settle in our favor, we could be exposed to credit risk related
to the other party.
</FONT>
</DIV>

<P align="left">
<B><I><FONT size="2">Rating agencies may provide unsolicited
ratings on the notes that could reduce the market value or
liquidity of the notes and our common stock.</FONT></I></B>

<P align="left">
<FONT size="2">We have not requested a rating of the notes from
any rating agency and we do not anticipate that the notes will
be rated. However, if one or more rating agencies independently
elects to rate the notes and assigns the notes a rating lower
than the rating expected by investors, or reduces their rating
in the future, the market price or liquidity of the notes and
our common stock could be harmed. A resulting decline in the
market price of the notes as compared to the price of our common
stock may require us to repurchase the notes.
</FONT>

<P align="left">
<B><I><FONT size="2">Anti-takeover defenses in our governing
documents and certain provisions under Delaware law could
prevent an acquisition of our company or limit the price that
investors might be willing to pay for our common
stock.</FONT></I></B>

<P align="left">
<FONT size="2">Our governing documents and certain provisions of
the Delaware General Corporation Law that apply to us could make
it difficult for another company to acquire control of our
company. For example:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Our certificate of incorporation allows our board
    of directors to issue, at any time and without stockholder
    approval, preferred stock with such terms as it may determine.
    No shares of preferred stock are currently outstanding. However,
    the rights of holders of any of our preferred stock that may be
    issued in the future may be superior to the rights of holders of
    our common stock.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">We have a rights plan, commonly known as a
    &#147;poison pill,&#148; which would make it difficult for
    someone to acquire our company without the approval of our board
    of directors.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Section&nbsp;203 of the Delaware General
    Corporation Law generally prohibits a Delaware corporation from
    engaging in any business combination with a person owning 15% or
    more of its voting stock, or who is affiliated with the
    corporation and owned 15% or more of its voting stock at any
    time within three years prior to the proposed business
    combination, for a period of three years from the date the
    person became a 15% owner, unless specified conditions are met.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">All or any one of these factors could limit the
price that certain investors would be willing to pay for shares
of our common stock and could delay, prevent or allow our board
of directors to resist an acquisition of our company, even if
the proposed transaction were favored by a majority of our
independent stockholders.
</FONT>

<P align="center"><FONT size="2">20
</FONT>
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<!-- link1 "FORWARD-LOOKING STATEMENTS" -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="center">
<B><FONT size="2">FORWARD-LOOKING STATEMENTS</FONT></B>

<P align="left">
<FONT size="2">This prospectus and the documents incorporated by
reference in this prospectus contain forward-looking statements
within the meaning of the Private Securities Litigation Reform
Act of 1995. Certain of such statements, including, without
limitation, statements regarding the extent and timing of future
revenues and expenses and customer demand, statements regarding
the deployment of our products, statements regarding our
reliance on third parties and other statements using words such
as &#147;anticipates,&#148; &#147;believes,&#148;
&#147;could,&#148; &#147;estimates,&#148; &#147;expects,&#148;
&#147;intends,&#148; &#147;may,&#148; &#147;plans,&#148;
&#147;should,&#148; &#147;will&#148; and &#147;would,&#148; and
words of similar import and the negatives thereof, constitute
forward-looking statements. These statements are predictions
based upon our current expectations about future events. Actual
results could vary materially as a result of certain factors,
including but not limited to, those expressed in these
statements. We refer you to the &#147;Risk Factors&#148; section
of this prospectus and to the &#147;Competition,&#148;
&#147;Proprietary Technology,&#148; &#147;Factors That May
Affect Future Results,&#148; &#147;Results of Operations,&#148;
&#147;Disclosures About Market Risk,&#148; and &#147;Liquidity
and Capital Resources&#148; sections contained in our Annual
Report on Form&nbsp;10-K and Quarterly Reports on Form&nbsp;10-Q
and the risks discussed in our other SEC filings, which identify
important risks and uncertainties that could cause actual
results to differ materially from those contained in the
forward-looking statements.
</FONT>

<P align="left">
<FONT size="2">We urge you to consider these factors carefully
in evaluating the forward-looking statements contained in this
prospectus. All subsequent written or oral forward-looking
statements attributable to our company or persons acting on our
behalf are expressly qualified in their entirety by these
cautionary statements. The forward-looking statements included
in this prospectus are made only as of the date of this
prospectus. We do not intend, and undertake no obligation, to
update these forward-looking statements.
</FONT>

<P align="center"><FONT size="2">21
</FONT>

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<!-- link1 "RATIO OF EARNINGS TO FIXED CHARGES" -->
<DIV align="left"><A NAME="003"></A></DIV>

<P align="center">
<B><FONT size="2">RATIO OF EARNINGS TO FIXED CHARGES</FONT></B>

<P align="left">
<FONT size="2">The following table sets forth our ratio of
earnings to fixed charges for each of the periods indicated:
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">Year ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">January&nbsp;3,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;28,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;29,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">January&nbsp;2,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2004</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
</TR>

<TR>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">(0.5)x</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15.5x</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22.6x</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.8x</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.0x</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">The ratio of earnings to fixed charges is
computed by dividing (i)&nbsp;income (loss) before income taxes,
minority interest and earnings in equity interests, plus fixed
charges by (ii)&nbsp;fixed charges. Fixed charges consist of the
portion of operating lease rental expense that is representative
of the interest factor (deemed to be one-third of operating
lease rentals) and interest expense on indebtedness. Earnings in
equity interests consist of earnings in investments that we
account for using the equity method of accounting. For the
fiscal year ended January&nbsp;2, 2000, our earnings were
insufficient to cover fixed charges by approximately
$11.6&nbsp;million, and for the fiscal year ended
January&nbsp;3, 2004, our earnings were insufficient to cover
fixed charges by approximately $19.7&nbsp;million.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<!-- link1 "USE OF PROCEEDS" -->
<DIV align="left"><A NAME="004"></A></DIV>

<P align="center">
<B><FONT size="2">USE OF PROCEEDS</FONT></B>

<P align="left">
<FONT size="2">The proceeds from the sale of the notes and the
common stock offered pursuant to this prospectus are solely for
the account of the selling securityholders. Accordingly, we will
not receive any proceeds from the sale of the notes or the
shares of common stock offered by this prospectus.
</FONT>

<P align="center"><FONT size="2">22
</FONT>

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<!-- link1 "DESCRIPTION OF NOTES" -->
<DIV align="left"><A NAME="005"></A></DIV>

<P align="center">
<B><FONT size="2">DESCRIPTION OF NOTES</FONT></B>

<P align="left">
<FONT size="2">We issued the notes under an indenture dated as
of August&nbsp;15, 2003, which we refer to as the indenture,
between us and J.P.&nbsp;Morgan Trust Company, National
Association, as trustee, which we refer to as the trustee. The
terms of the notes include those expressly set forth in the
indenture and those made part of the indenture by reference to
the Trust Indenture Act of 1939, as amended, which we refer to
as the Trust Indenture Act.
</FONT>

<P align="left">
<FONT size="2">This description of notes is intended to be a
useful overview of the material provisions of the notes and the
indenture. Since this description is only a summary, you should
refer to the indenture for a complete description of our
obligations and your rights. A copy of the indenture is listed
as an exhibit to the registration statement of which this
prospectus is a part.
</FONT>

<P align="left">
<FONT size="2">For purposes of this description, references to
&#147;the Company,&#148; &#147;Cadence,&#148; &#147;we,&#148;
&#147;our&#148; and &#147;us&#148; refer only to Cadence Design
Systems, Inc. and not to any of its subsidiaries.
</FONT>

<P align="left">
<B><FONT size="2">General</FONT></B>

<P align="left">
<FONT size="2">The notes:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">are our general unsecured, senior obligations;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">are initially limited to an aggregate principal
    amount of $420,000,000;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">mature on August&nbsp;15, 2023, unless earlier
    converted, repurchased by us at your option or redeemed;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">do not bear interest;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">will accrue liquidated damages if we fail to
    comply with certain obligations as set forth under
    &#147;&#151;Registration Rights&#148;;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">were issued in denominations of $1,000 and
    integral multiples of $1,000;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">are represented by one or more registered notes
    in global form, but in certain limited circumstances may be
    represented by notes in definitive form (see &#147;&#151;Form,
    Denomination and Registration&#148; and &#147;&#151;Global
    Notes, Book-Entry Form&#148;);
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">rank equally in right of payment to any of our
    existing or future unsecured senior debt, including trade
    payables;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">are redeemable by us for cash, at our option, in
    whole or in part beginning on August&nbsp;15, 2008 at a
    redemption price equal to 100% of the principal amount of the
    notes to be redeemed; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">are subject to repurchase by us at the option of
    the holders on August&nbsp;15, 2008, August&nbsp;15, 2013 and
    August&nbsp;15, 2018, or upon a significant change in our
    corporate structure or ownership (as defined below under the
    heading &#147;&#151;Repurchase of the Notes by Us at the Option
    of Holders Upon a Fundamental Change&#148;).
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Subject to fulfillment of certain conditions
described below, the notes may be converted into shares of our
common stock at an initial conversion rate of
63.8790&nbsp;shares of common stock per $1,000 principal amount
of notes (equivalent to an initial conversion price of $15.65
per share of common stock). The conversion rate is subject to
adjustment if certain events occur.
</FONT>

<P align="left">
<FONT size="2">The registered holder of a note will be treated
as the owner of it for all purposes, including, without
limitation for purposes of determining to whom we will send any
notice required to be sent to holders of the notes pursuant to
the indenture.
</FONT>

<P align="left">
<FONT size="2">The indenture does not limit the amount or kind
of debt that may be incurred by us or any of our subsidiaries.
</FONT>

<P align="left">
<FONT size="2">Other than restrictions described under
&#147;&#151;Repurchase of the Notes by Us at the Option of
Holders Upon a Fundamental Change&#148; and
&#147;&#151;Consolidation, Merger and Sale of Assets&#148;
below, the indenture does not contain any covenants or other
provisions which may afford holders of the notes protection in
the event of a highly
</FONT>

<P align="center"><FONT size="2">23
</FONT>
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<DIV align="left">
<FONT size="2">leveraged transaction involving us. We are
prohibited from reissuing a note that has matured or been
converted, repurchased by us at the option of a holder, redeemed
or otherwise canceled.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Payments on the Notes; Paying Agent and
Registrar</FONT></B>

<P align="left">
<FONT size="2">We will pay principal and liquidated damages, if
any, on the notes at the office or agency designated by us in
the Borough of Manhattan, The City of New York. We have
initially designated J.P.&nbsp;Morgan Trust Company, National
Association as our paying agent and registrar and its agency in
New York, New York as a place where notes may be presented for
payment or for registration of transfer. We may, however, change
the paying agent or registrar without prior notice to the
holders of the notes, and we may act as paying agent or
registrar.
</FONT>

<P align="left">
<FONT size="2">We will pay principal and liquidated damages, if
any, on notes in global form registered in the name of or held
by The Depository Trust Company, or DTC, or its nominee in
immediately available funds to DTC or its nominee, as the case
may be, as the registered holder of such global note.
</FONT>

<P align="left">
<B><FONT size="2">Transfer and Exchange</FONT></B>

<P align="left">
<FONT size="2">Holders may transfer or exchange notes at the
office of the registrar in accordance with the indenture. The
registrar and the trustee may require a holder, among other
things, to furnish appropriate endorsements and transfer
documents. No service charge will be imposed by us, the trustee
or the registrar for any registration of transfer or exchange of
notes, but we may require a holder to pay a sum sufficient to
cover any transfer tax or other similar governmental charge
required by law or permitted by the indenture.
</FONT>

<P align="left">
<B><FONT size="2">Ranking</FONT></B>

<P align="left">
<FONT size="2">The notes are our general unsecured obligations
and rank senior in right of payment to all existing and future
debt that is expressly subordinated in right of payment to the
notes. The notes rank equally in right of payment with all of
our existing and future liabilities that are not so
subordinated. The notes effectively rank junior to any of our
secured indebtedness to the extent of the assets securing such
indebtedness. In the event of our bankruptcy, liquidation,
reorganization or other winding up, our assets that secure debt
will be available to pay obligations on the notes only after all
secured debt has been repaid in full from such assets. We advise
you that there may not be sufficient assets remaining to pay
amounts due on any or all the notes then outstanding.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">As of April&nbsp;3, 2004, we had outstanding
senior indebtedness, excluding trade payables, of approximately
$420.3&nbsp;million, of which $420.0&nbsp;million was unsecured
and of which approximately $0.3&nbsp;million was secured
indebtedness. As of April&nbsp;3, 2004, our outstanding
indebtedness included $420.0&nbsp;million of the notes and
$0.3&nbsp;million of capital lease obligations that are secured
by the underlying assets.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">Because a significant portion of our operations
are conducted by our subsidiaries, our cash flow and our ability
to service indebtedness, including our ability to pay the
principal of the notes and liquidated damages, if any, are
dependent to a large extent upon cash dividends and
distributions or other transfers from our subsidiaries. Further,
we have elected to permanently re-invest our earnings from
foreign subsidiaries outside of the United States. The ability
of our subsidiaries to pay dividends and make other payments to
us may be restricted by, among other things, applicable
corporate and other laws and regulations as well as agreements
to which our subsidiaries may become a party. In addition, our
right to receive any assets of any subsidiary upon its
liquidation or reorganization, and therefore our rights to
participate in those assets, will be effectively subordinated to
the claims of that subsidiary&#146;s creditors, including trade
creditors. None of our subsidiaries guarantee our obligations
under the notes. As such, the notes are structurally
subordinated to all liabilities of our subsidiaries. As of
April&nbsp;3, 2004, our subsidiaries had aggregate indebtedness
of approximately $0.2&nbsp;million, excluding intercompany debt
and trade payables. As of April&nbsp;3, 2004, our subsidiaries
had aggregate third-party liabilities of approximately
$435.5&nbsp;million.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<B><FONT size="2">Optional Redemption</FONT></B>

<P align="left">
<FONT size="2">No sinking fund is provided for the notes. Prior
to August&nbsp;15, 2008, the notes will not be redeemable.
Beginning August&nbsp;15, 2008, we may redeem at any time for
cash all or any part of the notes, upon not less than 30 nor more
</FONT>

<P align="center"><FONT size="2">24
</FONT>

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<DIV align="left">
<FONT size="2">than 60&nbsp;days notice before the redemption
date by mail to the trustee, the paying agent and each holder of
notes, for a price equal to 100% of the principal amount of the
notes to be redeemed plus any accrued and unpaid liquidated
damages, if any, to but excluding the redemption date.
</FONT>
</DIV>

<P align="left">
<FONT size="2">If we decide to redeem fewer than all of the
outstanding notes, the trustee will select the notes to be
redeemed (in principal amounts of $1,000 or integral multiples
thereof) by lot, on a pro rata basis or by another method the
trustee considers fair and appropriate.
</FONT>

<P align="left">
<FONT size="2">If the trustee selects a portion of a
holder&#146;s note for partial redemption and such holder
converts a portion of the same note, the converted portion will
be deemed to be from the portion selected for redemption.
</FONT>

<P align="left">
<FONT size="2">In the event of any redemption in part, we will
not be required to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">issue, register the transfer of or exchange any
    note during a period of 15&nbsp;days before the redemption date;
    or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">register the transfer of or exchange any note so
    selected for redemption, in whole or in part, except the
    unredeemed portion of any note being redeemed in part.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Conversion Rights</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">General</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Subject to satisfaction of the conditions
described under the headings &#147;&#151;Conversion Upon
Satisfaction of Condition Regarding Sale Price of Our Common
Stock,&#148; &#147;&#151;Conversion Upon Satisfaction of
Condition Regarding Trading Price of Notes,&#148;
&#147;&#151;Conversion Upon Redemption,&#148;
&#147;&#151;Conversion Upon Specified Corporate
Transactions&#148; and &#147;&#151;Conversion Rate
Adjustments,&#148; holders may convert each of their notes into
shares of our common stock at an initial conversion rate of
63.8790 shares of common stock per $1,000 principal amount of
notes (equivalent to an initial conversion price of
approximately $15.65 per share of common stock) prior to the
close of business on August&nbsp;15, 2023. The conversion rate
and the equivalent conversion price in effect at any given time
are referred to as the &#147;applicable conversion rate&#148;
and the &#147;applicable conversion price,&#148; respectively,
and will be subject to adjustment as described below. A holder
may convert fewer than all of such holder&#146;s notes so long
as the notes converted are an integral multiple of $1,000
principal amount.
</FONT>

<P align="left">
<FONT size="2">Holders will not receive any cash payment
representing accrued and unpaid liquidated damages, if any, upon
conversion of a note. Instead, upon conversion, we will deliver
to holders a fixed number of shares of our common stock and any
cash payment to account for fractional shares. Any cash payment
for fractional shares will be based on the sale price of our
common stock on the trading day immediately prior to the
conversion date. Delivery of shares of common stock upon
conversion of the notes will be deemed to satisfy our obligation
to pay the principal amount of the notes and accrued and unpaid
liquidated damages, if any. Accrued and unpaid liquidated
damages, if any, will be deemed paid in full rather than
canceled, extinguished or forfeited. We will not adjust the
conversion rate to account for accrued and unpaid liquidated
damages, if any. The trustee will initially act as the
conversion agent.
</FONT>

<P align="left">
<FONT size="2">If a holder converts notes, we will pay any
documentary, stamp or similar issue or transfer tax due on the
issue of shares of our common stock upon conversion, unless the
tax is due because the holder requests the shares to be issued
in a name other than the holder&#146;s name, in which case the
holder will pay that tax.
</FONT>

<P align="left">
<FONT size="2">If a holder wishes to exercise its conversion
right, the holder must deliver a conversion notice, together, if
the notes are in certificated form, with the certificated
security, to the conversion agent along with appropriate
endorsements and transfer documents, if required, and pay any
transfer or similar tax, if required. Holders may obtain copies
of the required form of the conversion notice from the
conversion agent.
</FONT>

<P align="left">
<FONT size="2">If a holder has already delivered a repurchase
notice as described under either &#147;&#151;Repurchase of the
Notes by Us at the Option of the Holder&#148; or
&#147;&#151;Repurchase of the Notes by Us at the Option of
Holders Upon a Fundamental Change&#148; with respect to a note,
however, the holder may not surrender that note for conversion
until the holder has withdrawn the repurchase notice in
accordance with the indenture.
</FONT>

<P align="center"><FONT size="2">25
</FONT>
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<P align="left">
<FONT size="2">Holders may surrender their notes for conversion,
in whole or in part, into shares of our common stock prior to
maturity, redemption or repurchase under the following
circumstances:
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Conversion Upon Satisfaction of Condition
    Regarding Sale Price of Our Common Stock</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Holders may surrender any of their notes for
conversion into shares of our common stock during any conversion
period prior to August&nbsp;15, 2018 if the sale price of our
common stock, for at least 20 trading days in the period of
30&nbsp;consecutive trading days ending on the first day of such
conversion period, is more than 145% of the conversion price of
the notes on the first day of such conversion period.
</FONT>

<P align="left">
<FONT size="2">Holders may also surrender any of their notes for
conversion into shares of our common stock at any time after the
sale price of our common stock is more than 145% of the then
current conversion price on any date on or after August&nbsp;15,
2018 through the business day immediately prior to the maturity
of the notes.
</FONT>

<P align="left">
<FONT size="2">A &#147;conversion period&#148; will be the
period from and including the eleventh trading day in any of our
fiscal quarters (beginning with the quarter ended
January&nbsp;3, 2004) up to but not including the eleventh
trading day of the following fiscal quarter.
</FONT>

<P align="left">
<FONT size="2">The &#147;sale price&#148; of our common stock on
any date means the closing price on such date as reported by the
NYSE, or such other principal U.S.&nbsp;securities exchange on
which our common stock is then listed, or if our common stock is
not listed on a U.S.&nbsp;national or regional exchange, as
reported on the National Association of Securities Dealers
Automated Quotation System or, if our common stock is not quoted
on the National Association of Securities Dealers Automated
Quotation System, as reported on the principal other market on
which our common stock is then traded. In the absence of such
quotations, our board of directors will make a good faith
determination of the sale price.
</FONT>

<P align="left">
<FONT size="2">The conversion agent, which is currently the
trustee, will, on our behalf, determine daily if the notes are
convertible as a result of the sale price of our common stock
and notify us and the trustee.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Conversion Upon Satisfaction of Condition
    Regarding Trading Price of Notes</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Holders may surrender any of their notes for
conversion into shares of our common stock during the five
consecutive business day period following any five consecutive
trading-day period in which the average of the trading prices
for the notes was less than 98% of the average sale price of our
common stock during such five trading-day period multiplied by
the applicable conversion rate (the &#147;trading price
condition&#148;); provided, however, that if, on the date of any
conversion pursuant to the trading price condition that is on or
after August&nbsp;15, 2018, the sale price of our common stock
on the trading day before the conversion date is greater than
100% of the conversion price, then holders surrendering notes
for conversion will receive, in lieu of shares of our common
stock based on the then applicable conversion rate, shares of
common stock with a value equal to the principal amount of the
notes being converted (a &#147;principal value
conversion&#148;). Shares of our common stock delivered upon a
principal value conversion will be valued at the greater of the
effective conversion price on the conversion date and the sale
price as of the conversion date. We will deliver shares of our
common stock upon a principal value conversion no later than the
third business day following the determination of the sale
price. The &#147;effective conversion price&#148; is, as of any
date of determination, a dollar amount (initially $15.65) per
note derived by dividing $1,000 by the conversion rate then in
effect (assuming a conversion date eight trading days prior to
the date of determination).
</FONT>

<P align="left">
<FONT size="2">The &#147;trading price&#148; of the notes on any
date of determination means the average of the secondary market
bid quotations per note obtained by the trustee for $10,000,000
principal amount of the notes at approximately 3:30&nbsp;p.m.,
New York City time, on such determination date from two
independent nationally recognized securities dealers we select,
which may include one or more of the initial purchasers of the
notes, provided that if at least two such bids cannot reasonably
be obtained by the trustee, but one such bid can reasonably be
obtained by the trustee, this one bid will be used. If the
trustee cannot reasonably obtain at least one bid for
$10,000,000 principal amount of the notes from a nationally
recognized securities dealer or in our reasonable judgment, the
bid quotations are not indicative of the secondary market value
of the notes, then the trading price of the notes
</FONT>

<P align="center"><FONT size="2">26
</FONT>

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<DIV align="left">
<FONT size="2">will be deemed to be less than 98% of the
applicable conversion rate of the notes multiplied by the sale
price of our common stock on such determination date.
</FONT>
</DIV>

<P align="left">
<FONT size="2">The trustee will determine the trading price of
the notes upon our request. We will have no obligation to make
that request unless a holder of notes provides us with
reasonable evidence that the trading price of the notes may be
less than 98% of the average sale price of our common stock
multiplied by the applicable conversion rate for the applicable
period. If a holder provides such evidence, we will instruct the
trustee to determine the trading price of the notes for the
applicable period.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Conversion Upon Redemption</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Holders may surrender for conversion any of their
notes called for redemption at any time prior to the close of
business one business day prior to the redemption date, even if
the notes are not otherwise convertible at such time. If a
holder has already submitted a note for repurchase on a
repurchase date or upon a fundamental change, however, such
holder may not surrender that note for conversion until such
holder has withdrawn its repurchase election in accordance with
the indenture.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Conversion Upon Specified Corporate
    Transactions</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">If we elect to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">distribute to all or substantially all holders of
    our common stock certain rights entitling them to purchase
    shares of our common stock at less than the sale price of a
    share of our common stock on the trading day preceding the
    declaration date for such distribution; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">distribute to all or substantially all holders of
    our common stock any assets, debt securities or certain rights
    to purchase our securities, which distribution has a per share
    value as determined by our board of directors exceeding 5% of
    the sale price of our common stock on the trading day preceding
    the declaration date for such distribution;
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">we must notify the holders of the notes at least
20 business days prior to the ex-dividend date for such
distribution. Once we have given such notice, holders may
surrender their notes for conversion at any time until the
earlier of the close of business on the business day prior to
the ex-dividend date or our announcement that such distribution
will not take place, even if the notes are not otherwise
convertible at such time. The ex-dividend date is the first date
upon which a sale of the common stock does not automatically
transfer the right to receive the relevant dividend from the
seller of the common stock to its buyer. No adjustment to the
ability of a holder to convert will be made if the holder would
otherwise participate in the distribution without conversion.
</FONT>

<P align="left">
<FONT size="2">In addition, if we are party to a consolidation,
merger or binding share exchange pursuant to which all or
substantially all of our common stock would be converted into
cash, securities or other property, a holder may surrender such
holder&#146;s notes for conversion at any time from and after
the date which is 15&nbsp;days prior to the anticipated
effective date of the transaction until 15&nbsp;days after the
actual effective date of such transaction.
</FONT>

<P align="left">
<FONT size="2">If we are a party to a consolidation, merger or
binding share exchange pursuant to which all or substantially
all of our common stock is converted into cash, securities or
other property, then at the effective time of the transaction,
the right to convert a note that is not converted into common
stock prior to the effective time of the transaction will be
changed into a right to convert it into the kind and amount of
cash, securities or other property that the holder would have
received if the holder had converted its notes immediately prior
to the transaction. If we engage in any transaction described in
the preceding sentence, the conversion price will not be
adjusted. If the transaction also constitutes a fundamental
change, as defined below, a holder may require us to repurchase
all or a portion of its notes as described below under
&#147;&#151;Repurchase of the Notes by Us at the Option of
Holders Upon a Fundamental Change.&#148;
</FONT>

<P align="center"><FONT size="2">27
</FONT>

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<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Conversion
Rate Adjustments</FONT></I>

<P align="left">
<FONT size="2">The conversion rate will be adjusted in the event:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">we issue common stock as a dividend or
    distribution on our common stock or we effect a stock split or
    stock combination;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">we issue certain rights or warrants to all or
    substantially all holders of our common stock;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">we distribute shares of our capital stock,
    evidences of indebtedness or assets to all or substantially all
    holders of our common stock;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">we make distributions consisting of cash to all
    or substantially all holders of our common stock; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">we or one of our subsidiaries makes purchases of
    our common stock pursuant to a tender offer or exchange offer
    for our common stock.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Section&nbsp;13.06 of the indenture contains
formulas that set forth the calculation of the adjustments to
the conversion rate in the event of these transactions, which
are designed to protect holders of the notes from any potential
dilutive effect of issuances of our common stock in these
transactions on their percentage ownership of our common stock
upon conversion of the notes. We will not make any adjustments
to the conversion rate if holders of the notes participate in
any of these transactions.
</FONT>

<P align="left">
<FONT size="2">If the rights provided for in our rights
agreement, dated as of February&nbsp;1, 2000, have separated
from our common stock in accordance with the provisions of the
rights agreement, so that the holders of the notes would not be
entitled to receive any rights in respect of the common stock
issuable upon conversion of the notes, the conversion rate will
be adjusted as provided for in the indenture with respect to
distributions to all or substantially all holders of our common
stock (with such separation deemed to be the distribution of
such rights), subject to readjustment in the event of the
expiration, termination or redemption of the rights. In lieu of
any such adjustment, we may amend our rights agreement to
provide that upon conversion of the notes the holders will
receive, in addition to the common stock issuable upon such
conversion, the rights that would have attached to such shares
of common stock if the rights had not become separated from the
common stock under our rights agreement. See &#147;Description
of Capital Stock&#151;Stockholder Rights Plan.&#148; To the
extent that we adopt any future rights plan, upon conversion of
the notes into our common stock holders will receive, in
addition to the common stock, the rights under the future rights
plan whether or not the rights have separated from the common
stock at the time of conversion and no adjustment to the
conversion rate shall be made in accordance with the provisions
described above.
</FONT>

<P align="left">
<FONT size="2">Except as stated herein, we will not adjust the
conversion rate for the issuance of our common stock or any
securities convertible into or exchangeable for our common stock
or the right to purchase our common stock or such convertible or
exchangeable securities.
</FONT>

<P align="left">
<FONT size="2">In the event of:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">any reclassification of our common stock, or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a consolidation, merger or combination involving
    us, or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a sale or conveyance to another person of our
    property and assets as an entirety or substantially as an
    entirety,
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">in which holders of our outstanding common stock
would be entitled to receive stock, other securities, other
property, assets or cash for their common stock, holders of
notes will generally be entitled thereafter to convert their
notes into the same type of consideration received by common
stock holders immediately prior to one of these types of events.
</FONT>

<P align="left">
<FONT size="2">We are permitted to increase the conversion rate
of the notes by any amount for a period of at least 20&nbsp;days
if our board of directors determines that such increase would be
in our best interest. We are required to give at least 15 days
prior notice of any increase in the conversion rate. We may also
(but are not required to) increase the
</FONT>

<P align="center"><FONT size="2">28
</FONT>
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<DIV align="left">
<FONT size="2">conversion rate to avoid or diminish income tax
to holders of our common stock or rights to purchase common
stock in connection with a dividend or distribution of stock (or
rights to acquire stock) or similar event.
</FONT>
</DIV>

<P align="left">
<FONT size="2">Holders of the notes may, in some circumstances,
be deemed to have received a distribution or dividend subject to
United States federal income tax as a result of an adjustment or
the nonoccurrence of an adjustment to the conversion rate. See
&#147;Certain United States Federal Income Tax
Considerations&#151; Consequences to U.S.&nbsp;Holders&#151;
Constructive Dividends to Holders of Notes or Common Stock.&#148;
</FONT>

<P align="left">
<B><FONT size="2">Repurchase of the Notes by Us at the Option of
the Holder</FONT></B>

<P align="left">
<FONT size="2">Holders have the right to require us to
repurchase the notes for cash on August&nbsp;15, 2008,
August&nbsp;15, 2013 and August&nbsp;15, 2018, each of which we
refer to as a repurchase date. We will be required to repurchase
any outstanding notes for which a holder delivers a written
repurchase notice to the paying agent. This notice must be
delivered during the period beginning at any time from the
opening of business on the date that is 30&nbsp;business days
prior to the relevant repurchase date until the close of
business on the business day prior to the repurchase date. If
the repurchase notice is given and withdrawn during such period,
we will not be obligated to repurchase the related notes. Our
repurchase obligation will be subject to additional conditions
as described in the indenture. Also, our ability to satisfy our
repurchase obligations may be affected by the factors described
in &#147;Risk Factors&#148; under the caption &#147;We may be
unable to repay or repurchase the notes or our other
indebtedness, which may result in defaults and other costs to
us.&#148;
</FONT>

<P align="left">
<FONT size="2">The repurchase price will be paid in cash and
will equal the percentage of the principal amount on each
repurchase date set forth below, plus accrued and unpaid
liquidated damages, if any.
</FONT>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="84%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">% of</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Principal</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Repurchase Date</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">August&nbsp;15, 2008
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">August&nbsp;15, 2013
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">August&nbsp;15, 2018
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<FONT size="2">On or before the 30th&nbsp;business day prior to
each repurchase date, we will provide to the trustee, the paying
agent and to all holders of the notes at their addresses shown
in the register of the registrar, and to beneficial owners as
required by applicable law, a notice stating, among other
things, the procedures that holders must follow to require us to
repurchase their notes. Simultaneously with providing such
notice, we will publish a notice containing this information in
a newspaper of general circulation in The City of New York or
publish the information on our website or through such other
public medium as we may use at that time.
</FONT>

<P align="left">
<FONT size="2">A notice electing to require us to repurchase a
holder&#146;s notes must state:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">if certificated notes have been issued, the
    certificate numbers of the notes, or if not certificated, a
    holder&#146;s notice must comply with appropriate DTC procedures;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the portion of the principal amount of notes to
    be repurchased, in integral multiples of $1,000; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">that the notes are to be repurchased by us
    pursuant to the applicable provisions of the notes and the
    indenture.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">No notes may be repurchased at the option of
holders if there has occurred and is continuing an event of
default, other than an event of default that is cured by the
payment of the repurchase price of the notes.
</FONT>

<P align="left">
<FONT size="2">A holder may withdraw any repurchase notice in
whole or in part by a written notice of withdrawal delivered to
the paying agent prior to the close of business on the business
day prior to the repurchase date. The notice of withdrawal must
state:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the principal amount of the withdrawn notes;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">if certificated notes have been issued, the
    certificate numbers of the withdrawn notes, or if not
    certificated, a holder&#146;s notice must comply with
    appropriate DTC procedures; and
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">29
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the principal amount, if any, which remains
    subject to the repurchase notice.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Holders must either effect book-entry transfer or
deliver the notes, together with necessary endorsements, to the
office of the paying agent after delivery of the repurchase
notice to receive payment of the repurchase price. Holders will
receive payment promptly following the later of the repurchase
date or the time of book-entry transfer or the delivery of the
notes. If the paying agent holds money sufficient to pay the
repurchase price of the notes on the business day following the
repurchase date, then:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the notes will cease to be outstanding and
    liquidated damages, if any, will cease to accrue (regardless of
    whether book-entry transfer of the notes is made or the note is
    delivered to the paying agent); and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">all other rights of the holder will terminate
    (other than the right to receive the purchase price and
    previously accrued and unpaid liquidated damages, if any, upon
    delivery or transfer of the notes).
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Repurchase of the Notes by Us at the Option of
Holders Upon a Fundamental Change</FONT></B>

<P align="left">
<FONT size="2">If a fundamental change (as defined below in this
section) occurs at any time, holders will have the right, at
their option, to require us to repurchase any or all of their
notes, or any portion of the principal amount thereof, that is
equal to $1,000 or an integral multiple of $1,000. The price we
are required to pay is equal to 100% of the principal amount of
the notes to be purchased plus accrued and unpaid liquidated
damages, if any, to but excluding the fundamental change
repurchase date.
</FONT>

<P align="left">
<FONT size="2">If a fundamental change results from a change of
control event, as described below, instead of paying the
repurchase price in cash, we may elect to pay all or a portion
of the repurchase price in shares of our common stock, or, in
the case of a merger in which we are not the surviving
corporation, common stock, ordinary shares or American
Depositary Shares of the surviving corporation or its direct or
indirect parent corporation or a combination of the applicable
securities and cash, at our option. The number of shares of the
applicable common stock or securities a holder will receive will
equal the relevant amount of the repurchase price divided by 95%
of the average sale prices of the applicable common stock or
securities for the five trading days immediately preceding the
second business day immediately preceding the fundamental change
repurchase date. However, we may not pay any portion of the
repurchase price in the applicable common stock or securities or
a combination of the applicable common stock or securities and
cash, unless we satisfy certain conditions prior to the
repurchase date as provided in the indenture, including:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">registration of the shares of the applicable
    common stock or securities to be issued upon repurchase under
    the Securities Act and the Exchange Act, if required;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">qualification of the shares of the applicable
    common stock or securities to be issued upon repurchase under
    applicable state securities laws, if necessary, or the
    availability of an exemption therefrom; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">listing of the applicable common stock or
    securities on a U.S.&nbsp;national securities exchange or
    quotation thereof on an inter-dealer quotation system of any
    registered U.S. national securities association.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">A &#147;fundamental change&#148; will be deemed
to have occurred upon a change of control event or a termination
of trading (as defined below).
</FONT>

<P align="left">
<FONT size="2">A &#147;change of control event&#148; is any
transaction or event (whether by means of an exchange offer,
liquidation, tender offer, consolidation, merger, combination,
reclassification, recapitalization or sale of all or
substantially all of our assets or otherwise) in connection with
which all or substantially all of our common stock is exchanged
for, converted into, acquired for or constitutes solely the
right to receive, consideration which is not all or
substantially all shares of common stock or American Depositary
Shares that:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">are listed on, or immediately after the
    transaction or event will be listed on, a United States national
    securities exchange, or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">are approved, or immediately after the
    transaction or event will be approved, for quotation on the
    Nasdaq National Market or any similar United States system of
    automated dissemination of quotations of securities prices.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">30
</FONT>

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<P align="left">
<FONT size="2">Notwithstanding the foregoing, a holder will not
have the right to require us to repurchase its notes upon a
change of control event constituting a fundamental change if the
sale price per share of our common stock for any five trading
days within the period of 10&nbsp;consecutive trading days
ending immediately after the later of the change of control
event and the public announcement of the change of control event
equals or exceeds 105% of the conversion price of the notes in
effect on each of those five trading days.
</FONT>

<P align="left">
<FONT size="2">A &#147;termination of trading&#148; will be
deemed to have occurred if our common stock or other common
stock into which the notes are convertible is neither listed for
trading on a United States national securities exchange nor
approved for listing on the Nasdaq National Market or any
similar United States system of automated dissemination of
quotations of securities prices, and no American Depositary
Shares or similar instruments for such common stock are so
listed or approved for listing in the United States.
</FONT>

<P align="left">
<FONT size="2">On or before the 15th day after the occurrence of
a fundamental change, we will provide to all holders of the
notes and the trustee and paying agent a notice of the
occurrence of the fundamental change and of the resulting
repurchase right. Such notice shall state, among other things:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the fundamental change repurchase date; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the procedures that holders must follow to
    require us to repurchase their notes.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Simultaneously with providing such notice, we
will publish a notice containing this information in a newspaper
of general circulation in the City of New York or publish the
information on our website or through such other public medium
as we may use at that time.
</FONT>

<P align="left">
<FONT size="2">To exercise the repurchase right, a holder must
deliver, on or before the close of business on the fundamental
change repurchase date, subject to extension to comply with
applicable law, the notes to be repurchased, duly endorsed for
transfer, together with a written repurchase notice and the form
entitled &#147;Form of Fundamental Change Repurchase
Notice&#148; on the reverse side of the notes duly completed, to
the paying agent. A holder&#146;s repurchase notice must state:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">if certificated, the certificate numbers of such
    holder&#146;s notes to be delivered for repurchase, or if not
    certificated, a holder&#146;s notice must comply with
    appropriate DTC procedures;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the portion of the principal amount of notes to
    be repurchased, which must be $1,000 or an integral multiple
    thereof; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">that the notes are to be purchased by us pursuant
    to the applicable provisions of the notes and the indenture.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">A holder may withdraw any repurchase notice (in
whole or in part) by a written notice of withdrawal delivered to
the paying agent prior to the close of business on the business
day prior to the fundamental change repurchase date. The notice
of withdrawal shall state:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the principal amount of the withdrawn notes;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">if certificated notes have been issued, the
    certificate numbers of the withdrawn notes, or if not
    certificated, a holder&#146;s notice must comply with
    appropriate DTC procedures; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the principal amount, if any, which remains
    subject to the repurchase notice.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">If a holder has exercised its right to require us
to repurchase the notes in connection with a fundamental change,
we will be required to repurchase the notes as of the date that
is 20&nbsp;business days after the occurrence of the relevant
fundamental change, subject to extension to comply with
applicable law (the &#147;fundamental change repurchase
date&#148;). Holders will receive payment of the fundamental
change repurchase price promptly following the later of the
fundamental change repurchase date or the time of book-entry
transfer or the delivery of the notes.
</FONT>

<P align="center"><FONT size="2">31
</FONT>

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<DIV align="left">
<FONT size="2">If the paying agent holds money and/or applicable
stock sufficient to pay the fundamental change repurchase price
of the notes on the business day following the fundamental
change repurchase date, then:
</FONT>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the notes will cease to be outstanding and
    liquidated damages, if any, will cease to accrue (whether or not
    book-entry transfer of the notes is made or whether or not the
    note is delivered to the paying agent); and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">all other rights of the holder will terminate
    (other than the right to receive the fundamental change
    repurchase price and previously accrued and unpaid liquidated
    damages, if any, upon delivery or transfer of the notes).
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">We will comply with any applicable provisions of
Rule&nbsp;13e-4 and any other tender offer rules under the
Exchange Act in the event of a fundamental change.
</FONT>

<P align="left">
<FONT size="2">The repurchase rights of the holders could
discourage a potential acquirer of us. The fundamental change
repurchase feature, however, is not the result of
management&#146;s knowledge of any specific effort to obtain
control of us by any means or part of a plan by management to
adopt a series of anti-takeover provisions.
</FONT>

<P align="left">
<FONT size="2">The term fundamental change is limited to
specified events and may not include other events that might
adversely affect our financial condition. In addition, the
requirement that we offer to purchase the notes upon a
fundamental change may not protect holders in the event of a
highly leveraged transaction, reorganization, merger or similar
transaction involving us.
</FONT>

<P align="left">
<FONT size="2">No notes may be repurchased at the option of
holders upon a fundamental change if there has occurred and is
continuing an event of default other than an event of default
that is cured by the payment of the fundamental change
repurchase price of the notes.
</FONT>

<P align="left">
<FONT size="2">The definition of fundamental change includes a
phrase relating to the conveyance, transfer, sale, lease or
disposition of &#147;all or substantially all&#148; of our
assets. There is no precise, established definition of the
phrase &#147;substantially all&#148; under applicable law.
Accordingly, the ability of a holder of the notes to require us
to repurchase its notes as a result of the conveyance, transfer,
sale, lease or other disposition of less than all of our assets
may be uncertain.
</FONT>

<P align="left">
<FONT size="2">If a fundamental change were to occur, we may not
have enough funds to pay the fundamental change repurchase price
in cash. See &#147;Risk Factors&#148; under the caption &#147;We
may be unable to repay or repurchase the notes or our other
indebtedness, which may result in defaults and other costs to
us.&#148; If we fail to repurchase the notes when required
following a fundamental change, we will be in default under the
indenture. In addition, we have, and may in the future incur,
other indebtedness with similar change in control provisions
permitting our holders to accelerate or to require us to
repurchase our indebtedness upon the occurrence of similar
events or on some specific dates.
</FONT>

<P align="left">
<B><FONT size="2">Consolidation, Merger and Sale of
Assets</FONT></B>

<P align="left">
<FONT size="2">The indenture provides that we may not
consolidate with or merge with or into, or convey, transfer or
lease all or substantially all of our properties and assets to,
another person, unless (i)&nbsp;the resulting, surviving or
transferee person other than us is a person organized and
existing under the laws of the United States of America, any
State thereof or the District of Columbia, and such entity other
than us expressly assumes by supplemental indenture all of our
obligations under the notes and the indenture; and
(ii)&nbsp;immediately after giving effect to such transaction,
no default has occurred and is continuing under the indenture.
Upon any such consolidation, merger or transfer, the resulting,
surviving or transferee person shall succeed to, and may
exercise every right and power of, Cadence under the indenture.
</FONT>

<P align="left">
<FONT size="2">Although these types of transactions are
permitted under the indenture, certain of the foregoing
transactions could constitute a fundamental change (as defined
above) permitting each holder to require us to repurchase the
notes of such holder as described above.
</FONT>

<P align="center"><FONT size="2">32
</FONT>

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<P align="left">
<B><FONT size="2">Events of Default</FONT></B>

<P align="left">
<FONT size="2">Each of the following is an event of default:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">default in the payment of liquidated damages, if
    any, on any note when due and payable and the default continues
    for a period of 30&nbsp;days;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">default in the payment of principal or premium of
    any note when due and payable at its maturity, upon redemption,
    upon repurchase (including upon a fundamental change) or
    otherwise;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">failure by us to comply with any of our other
    agreements contained in the notes or indenture for 60&nbsp;days
    after written notice of such non-compliance has been received
    from the trustee or the holders of at least 25% in principal
    amount of the notes then outstanding;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">default for 10&nbsp;days in the performance of
    our conversion obligation upon exercise of a holder&#146;s
    conversion rights;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">default by us or certain of our material
    subsidiaries in the payment of the principal or interest on any
    loan agreement or other loan instrument under which there may be
    outstanding, or by which there may be evidenced any, debt for
    money borrowed in excess of $25.0&nbsp;million in the aggregate
    of ours and/or any such material subsidiaries (other than
    indebtedness for borrowed money secured only by the real
    property to which the indebtedness relates and which is
    non-recourse to us or to such material subsidiaries), whether
    such debt now exists or shall hereafter be created, resulting in
    such debt becoming or being declared due and payable prior to
    its stated maturity, and such acceleration shall not have been
    rescinded or annulled within 30&nbsp;days after written notice
    has been received by us or such subsidiary from the trustee;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(6)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our failure to give holders notice of their right
    to require us to repurchase their notes upon a fundamental
    change; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(7)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">certain events involving our bankruptcy,
    insolvency, or reorganization (the &#147;bankruptcy
    provisions&#148;).
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">If an event of default occurs and is continuing,
the trustee by notice to us may, or the holders of at least 25%
in principal amount of the outstanding notes by notice to us and
the trustee may request, and the trustee upon such request
shall, declare 100% of the principal of and accrued and unpaid
liquidated damages, if any, on all the notes to be due and
payable. Upon such a declaration, such principal and accrued and
unpaid liquidated damages, if any, will be due and payable
immediately. Notwithstanding the previous sentence, in the case
of an event of default arising under the bankruptcy provisions,
all outstanding notes will become due and payable without
further action or notice. The holders of a majority in principal
amount of the outstanding notes may waive all past defaults
(except with respect to nonpayment of principal or liquidated
damages) and rescind any such acceleration with respect to the
notes and its consequences if (1)&nbsp;rescission would not
conflict with any judgment or decree of a court of competent
jurisdiction and (2)&nbsp;all existing events of default, other
than the nonpayment of the principal of and liquidated damages
on the notes that have become due solely by such declaration of
acceleration, have been cured or waived.
</FONT>

<P align="left">
<FONT size="2">Subject to the provisions of the indenture
relating to the duties of the trustee, if an event of default
occurs and is continuing, the trustee will be under no
obligation to exercise any of the rights or powers under the
indenture at the request or direction of any of the holders
unless such holders have offered to the trustee reasonable
indemnity or security against any loss, liability or expense.
Except to enforce the right to receive payment of principal or
liquidated damages, if any, when due, no holder may pursue any
remedy with respect to the indenture or the notes unless:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">such holder has previously given the trustee
    notice that an event of default is continuing;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">holders of at least 25% in principal amount of
    the outstanding notes have requested the trustee to pursue the
    remedy;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">such holders have offered the trustee reasonable
    security or indemnity against any loss, liability or expense;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">33
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the trustee has not complied with such request
    within 60&nbsp;days after the receipt of the request and the
    offer of security or indemnity; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the holders of a majority in principal amount of
    the outstanding notes have not given the trustee a direction
    that, in the opinion of the trustee, is inconsistent with such
    request within such 60-day period.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Subject to certain restrictions, the holders of a
majority in principal amount of the outstanding notes are given
the right to direct the time, method and place of conducting any
proceeding for any remedy available to the trustee or of
exercising any trust or power conferred on the trustee. The
indenture provides that if an event of default has occurred and
is continuing, the trustee will be required in the exercise of
its powers to use the degree of care that a prudent person would
use in the conduct of its own affairs. The trustee, however, may
refuse to follow any direction that conflicts with law or the
indenture or that the trustee determines is unduly prejudicial
to the rights of any other holder or that would involve the
trustee in personal liability. Prior to taking any action under
the indenture, the trustee will be entitled to indemnification
satisfactory to it in its sole discretion against all losses and
expenses caused by taking or not taking such action.
</FONT>

<P align="left">
<FONT size="2">The indenture provides that if a default occurs
and is continuing and is known to the trustee, the trustee must
mail to each holder notice of the default within 60&nbsp;days
after it occurs. Except in the case of a default in the payment
of principal of or liquidated damages, if any, on any note, the
trustee may withhold notice if and so long as a committee of
trust officers of the trustee in good faith determines that
withholding notice is in the interests of the holders. In
addition, we are required to deliver to the trustee an annual
certificate indicating whether the signers thereof know of any
default that occurred during the previous year. We are also
required to deliver to the trustee, within 30&nbsp;days after
the occurrence thereof, written notice of any events which would
constitute certain defaults, their status and what action we are
taking or propose to take in respect thereof.
</FONT>

<P align="left">
<B><FONT size="2">Modification and Amendment</FONT></B>

<P align="left">
<FONT size="2">Subject to certain exceptions, the indenture or
the notes may be amended with the consent of the holders of at
least a majority in principal amount of the notes then
outstanding (including, without limitation, consents obtained in
connection with a purchase of, or tender offer or exchange offer
for, notes) and, subject to certain exceptions, any past default
or compliance with any provisions may be waived with the consent
of the holders of a majority in principal amount of the notes
then outstanding (including, without limitation, consents
obtained in connection with a purchase of, or tender offer or
exchange offer for, notes).
</FONT>

<P align="left">
<FONT size="2">Without the consent of each holder of an
outstanding note affected, no amendment may, among other things:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="5%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(1)</FONT></TD>
    <TD align="left">
    <FONT size="2">reduce the principal of or change the maturity of
    any note;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(2)</FONT></TD>
    <TD align="left">
    <FONT size="2">make any change that impairs or adversely affects
    the conversion rights of any note;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(3)</FONT></TD>
    <TD align="left">
    <FONT size="2">reduce the redemption price, the repurchase price
    or fundamental change repurchase price of any note or amend or
    modify in any manner adverse to the holders of notes our
    obligation to make such payments, whether through an amendment
    or waiver of provisions in the covenants, definitions or
    otherwise;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(4)</FONT></TD>
    <TD align="left">
    <FONT size="2">modify the provisions with respect to the
    repurchase right of holders upon a fundamental change in a
    manner adverse to holders;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(5)</FONT></TD>
    <TD align="left">
    <FONT size="2">make any note payable in money other than that
    stated in the note or other than in accordance with the
    provisions of the indenture;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(6)</FONT></TD>
    <TD align="left">
    <FONT size="2">impair the right of any holder to receive payment
    of principal of or premium or liquidated damages, if any, on
    such holder&#146;s notes on or after the due dates therefor or
    impair the right of any holder to institute suit for the
    enforcement of any payment on or with respect to such
    holder&#146;s notes;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(7)</FONT></TD>
    <TD align="left">
    <FONT size="2">reduce the quorum or voting requirements under
    the indenture;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(8)</FONT></TD>
    <TD align="left">
    <FONT size="2">change the ranking of the notes in a manner
    adverse to the holders of the notes;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">34
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="5%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(9)</FONT></TD>
    <TD align="left">
    <FONT size="2">make any change in the amendment provisions which
    require each holder&#146;s consent or in the waiver provisions;
    or
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(10)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">reduce the percentage of notes required for
    consent to any modification of the indenture.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">We and the trustee may modify or amend the
indenture and the notes without the consent of any holder in
order to, among other things:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="5%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(1)</FONT></TD>
    <TD align="left">
    <FONT size="2">provide for our successor pursuant to a
    consolidation, merger or sale of assets;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(2)</FONT></TD>
    <TD align="left">
    <FONT size="2">add to our covenants for the benefit of the
    holders of the notes or to surrender any right or power
    conferred upon us by the indenture;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(3)</FONT></TD>
    <TD align="left">
    <FONT size="2">provide for a successor trustee with respect to
    the notes;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(4)</FONT></TD>
    <TD align="left">
    <FONT size="2">cure any ambiguity or correct or supplement any
    provision in the indenture which may be defective or
    inconsistent with any other provision;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(5)</FONT></TD>
    <TD align="left">
    <FONT size="2">add any additional events of default with respect
    to the notes;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(6)</FONT></TD>
    <TD align="left">
    <FONT size="2">secure the notes;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(7)</FONT></TD>
    <TD align="left">
    <FONT size="2">increase the conversion rate, provided that the
    increase is in accordance with the terms of the indenture or
    will not adversely affect the interests of the holders of the
    notes;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(8)</FONT></TD>
    <TD align="left">
    <FONT size="2">supplement any of the provisions of the indenture
    to such extent as shall be necessary to permit or facilitate the
    discharge of the notes, provided that such change or
    modification does not adversely affect the interests of the
    holders of the notes;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(9)</FONT></TD>
    <TD align="left">
    <FONT size="2">make any changes or modifications necessary in
    connection with the registration of the notes under the
    Securities Act as contemplated in the registration rights
    agreement, provided that such change or modification does not
    adversely affect the interests of the holders of the notes; or
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(10)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">add or modify any other provisions with respect
    to matters or questions arising under the indenture which we and
    the trustee may deem necessary and desirable and which will not
    adversely affect the interests of the holders of notes.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Further Issues</FONT></B>

<P align="left">
<FONT size="2">We may from time to time, without notice to or
the consent of the registered holders of the notes, create and
issue additional debt securities having the same terms as and
ranking equally and ratably with the notes in all respects, so
that such additional debt securities shall be consolidated and
form a single series with, and shall have the same terms as to
status, redemption or otherwise as, the notes.
</FONT>

<P align="left">
<B><FONT size="2">Form, Denomination and Registration</FONT></B>

<P align="left">
<FONT size="2">The notes were issued:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">in fully registered form; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">in denominations of $1,000 principal amount and
    integral multiples of $1,000.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Global Notes, Book-Entry Form</FONT></B>

<P align="left">
<FONT size="2">Except as provided below, the notes are evidenced
solely by one or more global notes.
</FONT>

<P align="left">
<FONT size="2">We have deposited the global notes with DTC and
registered the notes in the name of Cede&nbsp;&#38; Co. as
DTC&#146;s nominee. Except as set forth below, a note may be
transferred, in whole or in part, only to another nominee of DTC
or to a successor of DTC or its nominee.
</FONT>

<P align="left">
<FONT size="2">Holders may hold their interests in a note
directly through DTC if such holder is a participant in DTC, or
indirectly through organizations that are participants in DTC
(called &#147;participants&#148;). Transfers between
</FONT>

<P align="center"><FONT size="2">35
</FONT>

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<DIV align="left">
<FONT size="2">participants will be effected in the ordinary way
in accordance with DTC rules and will be settled in clearing
house funds. The laws of some states require that certain
persons take physical delivery of securities in definitive form.
As a result, the ability to transfer beneficial interests in the
note to such persons may be limited.
</FONT>
</DIV>

<P align="left">
<FONT size="2">Holders who are not participants may beneficially
own interests in a note held by DTC only through participants,
or certain banks, brokers, dealers, trust companies and other
parties that clear through or maintain a custodial relationship
with a participant, either directly or indirectly (called
&#147;indirect participants&#148;).
</FONT>

<P align="left">
<FONT size="2">So long as Cede&nbsp;&#38; Co., as the nominee of
DTC, is the registered owner of a note, Cede&nbsp;&#38; Co. for
all purposes will be considered the sole holder of such note.
Except as provided below, owners of beneficial interests in a
note will:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">not be entitled to have certificates registered
    in their names;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">not receive physical delivery of certificates in
    definitive registered form; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">not be considered holders of the note.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">We will pay liquidated damages, if any, and the
redemption or repurchase price of a note to Cede &#38; Co., as
the registered owner of the note, by wire transfer of
immediately available funds on the dates such payments are due.
Neither we, the trustee nor any paying agent will be responsible
or liable:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">for the records relating to, or payments made on
    account of, beneficial ownership interests in a note; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">for maintaining, supervising or reviewing any
    records relating to the beneficial ownership interests.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">We have been informed that DTC&#146;s practice is
to credit participants&#146; accounts on a payment date with
payments in amounts proportionate to their respective beneficial
interests in the principal amount represented by a global note
as shown in the records of DTC, unless DTC has reason to believe
that it will not receive payment on that payment date. Payments
by participants to owners of beneficial interests in the
principal amount represented by a global note held through
participants will be the responsibility of the participants, as
is now the case with securities held for the accounts of
customers registered in &#147;street name.&#148;
</FONT>

<P align="left">
<FONT size="2">Because DTC can only act on behalf of
participants, who in turn act on behalf of indirect
participants, the ability of a person having a beneficial
interest in the principal amount represented by the global note
to pledge such interest to persons or entities that do not
participate in the DTC system, or otherwise take actions in
respect of such interest, may be affected by the lack of a
physical certificate evidencing its interest.
</FONT>

<P align="left">
<FONT size="2">Neither we, the trustee, registrar, paying agent
nor conversion agent will have any responsibility for the
performance by DTC or its participants or indirect participants
of their respective obligations under the rules and procedures
governing their operations. DTC has advised us that it will take
any action permitted to be taken by a holder of notes, including
the presentation of notes for exchange, only at the direction of
one or more participants to whose account with DTC interests in
the note are credited, and only in respect of the principal
amount of the notes represented by the note as to which the
participant or participants has or have given such direction.
</FONT>

<P align="left">
<FONT size="2">DTC has advised us that it is:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a limited purpose trust company organized under
    the laws of the State of New York, and a member of the Federal
    Reserve System;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a &#147;clearing corporation&#148; within the
    meaning of the Uniform Commercial Code; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a &#147;clearing agency&#148; registered pursuant
    to the provisions of Section&nbsp;17A of the Exchange Act.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">DTC was created to hold securities for its
participants and to facilitate the clearance and settlement of
securities transactions between participants through electronic
book-entry changes to the accounts of its participants.
Participants include securities brokers, dealers, banks, trust
companies and clearing corporations and other organizations.
Some of the participants or their representatives, together with
other entities, own DTC. Indirect access to the DTC system is
available to others such as banks, brokers, dealers and trust
companies that clear through or maintain a custodial
relationship with a participant, either directly or indirectly.
</FONT>

<P align="center"><FONT size="2">36
</FONT>

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<P align="left">
<FONT size="2">DTC has agreed to the foregoing procedures to
facilitate transfers of interests in a note among participants.
However, DTC is under no obligation to perform or continue to
perform these procedures, and may discontinue these procedures
at any time. If DTC is at any time unwilling or unable to
continue as depositary and a successor depositary is not
appointed by us within 90&nbsp;days, we will issue notes in
certificated form in exchange for notes.
</FONT>

<P align="left">
<B><FONT size="2">Accounting Treatment</FONT></B>

<P align="left">
<FONT size="2">We originally issued the notes in August 2003 in
private placement transactions. We received net proceeds of
approximately $408.5&nbsp;million after transaction fees of
approximately $11.5&nbsp;million, which fees have been recorded
in other long-term assets and are being amortized as interest
expense using the straight-line method over five years, the
duration of the first redemption period.
</FONT>

<P align="left">
<FONT size="2">Each $1,000 of principal of the notes will
initially be convertible into 63.8790 share of our common stock,
subject to adjustment upon the occurrence of specified events.
Holders of the notes may convert their notes prior to maturity
only if: (1) the price of our common stock reaches specific
thresholds, (2) one of certain specified corporate transactions
occurs, (3) the notes have been called for redemption or (4) the
trading price of the notes falls below a certain threshold. See
&#147;Description of Notes&#151; Conversion Rights.&#148; As the
threshold of this fourth conversion feature is linked to the
trading price of the notes, which are traded in an observable
market that differs from the one in which our common stock is
traded, the conversion feature meets the definition of a
derivative that must be accounted for separately at fair value.
The fair value of this conversion feature was not material at
inception of the notes or at January 3, 2004.
</FONT>

<P align="left">
<FONT size="2">Concurrently with the issuance of the notes, we
entered into convertible notes hedge transactions with JPMorgan
Chase Bank pursuant to which we have the option to purchase up
to 26.8&nbsp;million shares of our common stock at a price of
$15.65 per share. These options expire on August&nbsp;15, 2008
and must be settled in net shares. The cost of the convertible
notes hedge transactions to us was approximately
$134.6&nbsp;million. In addition, we sold warrants to JPMorgan
Chase Bank for the purchase of up to 26.8&nbsp;million shares of
our common stock at a price of $23.08 per share. The warrants
expire on various dates from February 2008 through May 2008 and
must be settled in net shares. We received approximately
$56.4&nbsp;million in cash proceeds for the sales of these
warrants. For a further discussion of these transactions, see
&#147;Risk Factors&#151; Convertible notes hedge and warrant
transactions entered into in connection with the issuance of the
notes may affect the value of the notes and our common
stock&#148; and &#147;Description of Capital Stock&#151; Call
Options and Warrants.&#148;
</FONT>

<P align="left">
<FONT size="2">The costs incurred in connection with the
convertible notes hedge transactions and the proceeds from the
sale of the warrants are included as a net reduction in common
stock and capital in excess of par on our balance sheet as of
September&nbsp;27, 2003 in accordance with the guidance in EITF
Issue No.&nbsp;00-19, &#147;Accounting for Derivative Financial
Instruments Indexed to, and Potentially Settled in, a
Company&#146;s Own Stock.&#148; Subsequent changes in the fair
value of these convertible notes hedge and warrant transactions
will not be recognized as long as the instruments remain
classified in equity.
</FONT>

<P align="left">
<FONT size="2">Prior to conversion, the notes have no impact on
the calculation of our basic or dilutive earnings per share, or
EPS, unless the sale price of our common stock reaches $22.69,
the contingent conversion price, during a quarterly conversion
period until August 2018, and then at any time thereafter until
maturity or earlier redemption or repurchase. For any quarterly
conversion period through August 2018, or any time after August
2018 in which the sale price of our common stock reaches the
contingent conversion price, we will use the &#147;as if
converted&#148; method to calculate the effect on diluted EPS,
which will have the effect of increasing the number of
outstanding shares of our common stock by 26.8&nbsp;million.
</FONT>

<P align="left">
<FONT size="2">Because we entered into the notes hedge
transactions and the sale of the warrants, upon conversion of
the notes there is no impact on basic or dilutive EPS, except as
described under the &#147;as if converted&#148; method, unless
the sale price of our common stock exceeds the warrant strike
price of $23.08 per share. Up to $23.08 per share, in connection
with any conversion, the operation of the notes hedge
transactions and sale of the warrants would effectively result
in no impact on basic or dilutive EPS. In the event our common
stock exceeds $23.08 per share, for the first $1.00 the price
exceeds $23.08, there would be dilution of approximately
1.1&nbsp;million shares, and the impact on the calculation of
EPS will vary depending on when during the quarter the $23.08
per share price is reached. As this share price continues to
increase, dilution would continue to occur but at a declining
rate. If these
</FONT>

<P align="center"><FONT size="2">37
</FONT>

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<DIV align="left">
<FONT size="2">transactions settle in our favor, we could
potentially be exposed to credit risk related to the other party
to the hedge transactions.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Trustee</FONT></B>

<P align="left">
<FONT size="2">J.P. Morgan Trust Company, National Association
is the initial trustee, security registrar, paying agent and
conversion agent. The trustee is an affiliate of J.P. Morgan
Securities Inc., one of the initial purchasers of the notes.
</FONT>

<P align="left">
<FONT size="2">We may change the trustee, security registrar or
paying and conversion agent at any time in our discretion
subject to the successor meeting certain standards specified in
the indenture
</FONT>

<P align="left">
<B><FONT size="2">Governing Law</FONT></B>

<P align="left">
<FONT size="2">The indenture provides that it and the notes will
be governed by, and construed in accordance with, the laws of
the State of New York.
</FONT>

<P align="left">
<B><FONT size="2">Registration Rights</FONT></B>

<P align="left">
<FONT size="2">We entered into a registration rights agreement
with the initial purchasers dated as of the date of the first
issuance of the notes.
</FONT>

<P align="left">
<FONT size="2">Pursuant to the registration rights agreement, we
agreed for the benefit of the holders of the notes and the
common stock issuable upon conversion of the notes that we will,
at our cost:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">no later than the 90th day after the original
    date of issuance of the notes, or November&nbsp;13, 2003, file a
    shelf registration statement, of which this prospectus is a
    part, covering resales of the notes and the common stock
    issuable upon the conversion thereof pursuant to Rule&nbsp;415
    under the Securities Act;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">use our reasonable best efforts to cause the
    shelf registration statement, of which this prospectus is a
    part, to be declared effective under the Securities Act no later
    than 180&nbsp;days after the original date of issuance of the
    notes, or February&nbsp;11, 2004; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">subject to some rights to suspend use of the
    shelf registration statement, use our reasonable best efforts to
    keep the shelf registration statement effective until the
    earliest of such time as all of the notes and the common stock
    issuable on the conversion thereof (i)&nbsp;cease to be
    outstanding, (ii)&nbsp;have been sold or otherwise transferred
    pursuant to an effective registration statement, (iii)&nbsp;have
    been sold pursuant to Rule&nbsp;144 under circumstances in which
    any legend borne by the notes or common stock relating to
    restrictions on transferability thereof is removed or
    (iv)&nbsp;are eligible to be sold pursuant to Rule&nbsp;144(k)
    or any successor provision.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">We are permitted to suspend the effectiveness of
the shelf registration statement or the use of the prospectus
that is part of the shelf registration statement during
specified periods (not to exceed 45&nbsp;days in any three month
period or 120&nbsp;days in the aggregate in any 12&nbsp;month
period) in specified circumstances, including circumstances
relating to pending corporate developments. We need not specify
the nature of the event giving rise to a suspension in any
notice of a suspension provided to the holders.
</FONT>

<P align="left">
<FONT size="2">The following requirements and restrictions will
generally apply to a holder selling the securities pursuant to
the shelf registration statement:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the holder will be required to be named as a
    selling securityholder in the related prospectus;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the holder will be required to deliver a
    prospectus to purchasers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the holder will be subject to the civil liability
    provisions under the Securities Act in connection with any
    sales; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the holder will be bound by the provisions of the
    registration rights agreement applicable to the holder
    (including indemnification obligations).
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">38
</FONT>

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<P align="left">
<FONT size="2">We agreed to pay predetermined amounts
(&#147;liquidated damages&#148;) to holders of the notes if the
shelf registration statement is not timely filed or made
effective as described above or if the registration statement or
prospectus is unavailable for periods in excess of those
permitted above (each such event, a &#147;registration
default&#148;). Because the registration statement was not
declared effective on or prior to February&nbsp;11, 2004, we are
obligated to pay to the holders liquidated damages at a penalty
rate of approximately $2,900 per day for the first 90&nbsp;days
and double that amount thereafter. Liquidated damages began
accruing on February&nbsp;12, 2004, and will continue to accrue
until the registration statement is declared effective.
</FONT>

<P align="left">
<FONT size="2">Liquidated damages will be paid semiannually in
arrears, with the first semiannual payment due on the first
February&nbsp;15 or August&nbsp;15 to occur after the date on
which such liquidated damages begin to accrue, and will accrue
at a rate that is equal to:
</FONT>
<P>

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<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">0.25&nbsp;percent of the outstanding principal
    amount for the period up to and including the 90th day during
    which such registration default has occurred and is continuing;
    and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">0.50&nbsp;percent of the outstanding principal
    amount for the period including and subsequent to the 91st day
    during which such registration default has occurred and is
    continuing;
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">in each case based upon the number of days that
such registration default is continuing.
</FONT>

<P align="left">
<FONT size="2">Liquidated damages will accrue from and including
the date on which the registration default occurs but excluding
the date on which all registration defaults have been cured. We
will have no other liability for monetary damages with respect
to our registration obligations, except that if we breach, fail
to comply with or violate some provisions of the registration
rights agreement, the holders of the notes may be entitled to
equitable relief, including injunction and specific performance.
</FONT>

<P align="left">
<FONT size="2">We will pay all expenses associated with the
shelf registration statement, provide to each registered holder
copies of the related prospectus, notify each registered holder
when the shelf registration statement has become effective and
take other actions as are required to permit, subject to the
foregoing, unrestricted resales of the notes and the shares of
common stock issued upon conversion of the notes.
</FONT>

<P align="left">
<FONT size="2">The summary herein of provisions of the
registration rights agreement is subject to, and is qualified in
its entirety by reference to, all the provisions of the
registration rights agreement. You should refer to the
registration rights agreement listed as an exhibit to the
registration statement of which this prospectus is a part for a
full description of the registration rights that apply to the
notes.
</FONT>

<P align="center"><FONT size="2">39
</FONT>

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<!-- link1 "DESCRIPTION OF CAPITAL STOCK" -->
<DIV align="left"><A NAME="006"></A></DIV>

<P align="center">
<B><FONT size="2">DESCRIPTION OF CAPITAL STOCK</FONT></B>

<P align="left">
<FONT size="2">Our authorized capital stock consists of
600,000,000 shares of common stock, par value $0.01 per share,
and 400,000 shares of preferred stock, par value $0.01 per share.
</FONT>

<P align="left">
<B><FONT size="2">Common Stock</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">As of April&nbsp;3, 2004, there were
273,356,132&nbsp;shares of common stock outstanding.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<I><FONT size="2">Dividends.</FONT></I><FONT size="2"> Cadence
common stockholders are entitled to receive ratably such
dividends, if any, as may be declared from time to time by the
board of directors out of funds legally available for dividend
payments.
</FONT>

<P align="left">
<I><FONT size="2">Voting.</FONT></I><FONT size="2"> Holders of
common stock are entitled to one vote for each share held on all
matters submitted to a vote of stockholders, including the
election of directors. Cadence stockholders are not authorized
by our certificate of incorporation to cumulate votes for the
election of directors. Directors are elected by a plurality of
the votes entitled to vote and present in person or represented
by proxy at the meeting. A majority vote of the shares present
or represented by proxy is required for Cadence stockholders to
take action on all matters other than the election of directors
and certain business combinations with holders of 5% or more of
our common stock, which require sixty-six percent (66%) of the
outstanding voting stock and a majority of the disinterested
shares for approval.
</FONT>

<P align="left">
<I><FONT size="2">Preemptive Rights, Conversion and
Redemption.</FONT></I><FONT size="2"> The common stock is not
entitled to preemptive or conversion rights and is not subject
to redemption or sinking fund provisions.
</FONT>

<P align="left">
<I><FONT size="2">Liquidation, Dissolution and
Winding-up.</FONT></I><FONT size="2"> Upon our liquidation,
dissolution or winding-up, the holders of common stock are
entitled to share ratably in all assets remaining after payment
of liabilities.
</FONT>

<P align="left">
<B><FONT size="2">Preferred Stock</FONT></B>

<P align="left">
<FONT size="2">Our board of directors is authorized, without
action by the stockholders, to designate and issue up to
400,000&nbsp;shares of preferred stock in one or more series.
Subject to the Delaware Corporation Law, our board of directors
may:
</FONT>
<P>

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    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">fix the rights, preferences, privileges and
    restrictions on these shares,
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">fix the number of shares and designation of any
    series, and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">increase or decrease the number of shares of any
    series if not below the number of outstanding shares plus the
    number of shares reserved for issuance.
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">As of April&nbsp;3, 2004, there were no shares of
Cadence preferred stock outstanding. Although we currently do
not intend to do so, our board of directors may issue preferred
stock with voting and conversion rights which could negatively
affect the voting power or other rights of the common
stockholders without stockholder approval. The issuance of
preferred stock may delay or prevent a change in control of
Cadence.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">Cadence&#146;s certificate of incorporation
designates 400,000 shares of preferred stock as Series&nbsp;A
Junior Participating Preferred Stock in connection with
Cadence&#146;s rights plan, as described below.
</FONT>

<P align="left">
<B><FONT size="2">Call Options and Warrants</FONT></B>

<P align="left">
<FONT size="2">Concurrent with the original issuance of the
notes, we entered into convertible notes hedge transactions with
JPMorgan Chase Bank pursuant to which we have an option to
purchase up to 26.8&nbsp;million shares of our common stock at a
price of $15.65&nbsp;per share. These options expire on
August&nbsp;15, 2008 and must be settled in net shares. In
addition, we sold to JPMorgan Chase Bank warrants for the
purchase of up to 26.8&nbsp;million of our common stock at a
price of $23.08&nbsp;per share. The warrants expire on various
dates from February 2008 through May 2008 and must be settled in
net shares.
</FONT>

<P align="center"><FONT size="2">40
</FONT>

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<P align="left">
<B><FONT size="2">Stockholder Rights Plan</FONT></B>

<P align="left">
<FONT size="2">Cadence has a stockholder rights plan to protect
its stockholders in the event of a proposed or actual
acquisition of 15% or more of the outstanding shares of Cadence
common stock. As amended in February 2000, each share of Cadence
common stock carries a right to purchase one one-thousandth
(1/1000) of a share of Series&nbsp;A Junior Participating
Preferred Stock, par value $0.01 per share, of Cadence at a
price of $240.00 per one one-thousandth of a share, subject to
adjustment. The rights are subject to redemption at the option
of the board of directors at a price of $0.01 per right until
the occurrence of certain events. The rights expire on
February&nbsp;9, 2006.
</FONT>

<P align="left">
<B><FONT size="2">Delaware Anti-Takeover Law and Charter
Provisions</FONT></B>

<P align="left">
<I><FONT size="2">Delaware Takeover
Statute.</FONT></I><FONT size="2"> We are governed by
Section&nbsp;203 of the Delaware General Corporation Law, which
prohibits a Delaware corporation from engaging in any business
combination with any interested stockholder for a period of
three years after the date that the stockholder became an
interested stockholder, unless:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">before that date, the board of directors of the
    corporation approved either the business combination or the
    transaction that resulted in the stockholder becoming an
    interested stockholder;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">upon completion of the transaction that resulted
    in the stockholder becoming an interested stockholder, the
    interested stockholder owned at least 85% of the voting stock of
    the corporation outstanding at the time the transaction began,
    excluding for purposes of determining the number of shares
    outstanding those shares owned by persons who are directors and
    also officers or which can be issued under employee stock plans
    in which employee participants do not have the right to
    determine confidentially whether shares held subject to the plan
    will be tendered in a tender or exchange offer; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">on or after that date, the business combination
    is approved by the board of directors and authorized at an
    annual or special meeting of stockholders, and not by written
    consent, by the affirmative vote of at least 66&nbsp;2/3% of the
    outstanding voting stock that is not owned by the interested
    stockholder.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">In general, Section&nbsp;203 defines an
interested stockholder as any entity or person who, with
affiliates and associates owns, or within three years,
beneficially owned 15% or more of the outstanding voting stock
of the corporation. Section&nbsp;203 defines business
combination to include:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">any merger or consolidation involving the
    corporation and the interested stockholder;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">any sale, transfer, pledge or other disposition
    of 10% or more of the assets of the corporation involving the
    interested stockholder;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">subject to specified exceptions, any transaction
    that results in the issuance or transfer by the corporation of
    any stock of the corporation to the interested stockholder;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">any transaction involving the corporation that
    increases the proportionate share of the stock of any class or
    series of the corporation beneficially owned by the interested
    stockholder; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the receipt by the interested stockholder of the
    benefit of any loans, advances, guarantees, pledges or other
    financial benefits provided by or through the corporation.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Certificate of Incorporation and
Bylaws</FONT></B>

<P align="left">
<I><FONT size="2">Undesignated Preferred
Stock.</FONT></I><FONT size="2"> Under our certificate of
incorporation, the board of directors has the power to authorize
the issuance of up to 400,000&nbsp;shares of preferred stock and
to determine the price, rights, preferences, privileges and
restrictions, including voting rights, of those shares without
further vote or action by the stockholders. The issuance of
preferred stock may:
</FONT>
<P>

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    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">delay, defer or prevent a change in control;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">discourage bids for the common stock at a premium
    over the market price of our common stock;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">adversely affect the voting and other rights of
    the holders of our common stock; and
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">41
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">discourage acquisition proposals or tender offers
    for our shares and, as a consequence, inhibit fluctuations in
    the market price of our shares that could result from actual or
    rumored takeover attempts.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<I><FONT size="2">Advance Notice
Provisions.</FONT></I><FONT size="2"> Our bylaws establish
advance notice procedures for stockholder proposals and
nominations of candidates for election as directors other than
nominations made by or at the direction of the board of
directors or a committee of the board.
</FONT>

<P align="left">
<I><FONT size="2">Special Meeting
Requirements.</FONT></I><FONT size="2"> Our bylaws provide that
special meetings of stockholders may be called at the request of
the board of directors, the chairman of the board of directors
or the chief executive officer.
</FONT>

<P align="left">
<I><FONT size="2">Cumulative Voting.</FONT></I><FONT size="2">
Neither our certificate of incorporation nor our bylaws provides
for cumulative voting in the election of directors.
</FONT>

<P align="left">
<FONT size="2">These provisions may deter a hostile takeover or
delay a change in control or management of Cadence.
</FONT>

<P align="left">
<B><FONT size="2">Transfer Agent and Registrar</FONT></B>

<P align="left">
<FONT size="2">The transfer agent and registrar for our common
stock is Mellon Investor Services LLC.
</FONT>

<P align="left">
<B><FONT size="2">New York Stock Exchange Listing</FONT></B>

<P align="left">
<FONT size="2">Our common stock is listed on the New York Stock
Exchange under the symbol &#147;CDN.&#148;
</FONT>

<P align="center"><FONT size="2">42
</FONT>

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<!-- link1 "CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS" -->
<DIV align="left"><A NAME="007"></A></DIV>

<P align="center">
<B><FONT size="2">CERTAIN UNITED STATES FEDERAL INCOME TAX
CONSIDERATIONS</FONT></B>

<P align="left">
<FONT size="2">The following discussion constitutes the opinion
of Gibson, Dunn&nbsp;&#38; Crutcher LLP, our tax counsel. This
description does not provide a complete analysis of all
potential tax considerations. The information provided below is
based on the Internal Revenue Code of 1986, as amended, referred
to as the &#147;Code,&#148; Treasury regulations issued under
the Code, published rulings and court decisions, all as in
effect on the date hereof. These authorities may change,
possibly on a retroactive basis, or the Internal Revenue
Service, referred to as the &#147;IRS,&#148; might interpret the
existing authorities differently. In either case, the tax
consequences of purchasing, owning or disposing of the notes or
our common stock could differ from those described below.
</FONT>

<P align="left">
<FONT size="2">This description assumes that the notes and the
common stock are held as &#147;capital assets&#148; (generally,
property held for investment) within the meaning of
section&nbsp;1221 of the Code.
</FONT>

<P align="left">
<FONT size="2">This description is general in nature and does
not discuss all aspects of U.S.&nbsp;federal income taxation
that may be relevant to a particular holder in light of the
holder&#146;s particular circumstances, or to certain types of
holders subject to special treatment under U.S. federal income
tax laws (such as financial institutions, real estate investment
trusts, regulated investment companies, grantor trusts,
insurance companies, tax-exempt organizations, brokers, dealers
or traders in securities or foreign currencies, and persons
holding notes or common stock as part of a position in a
&#147;straddle&#148; or as part of a &#147;hedging,&#148;
&#147;conversion&#148; or &#147;integrated&#148; transaction for
U.S.&nbsp;federal income tax purposes). In addition, this
description does not consider the effect of any foreign, state,
local or other tax laws, or any U.S.&nbsp;tax considerations
(e.g., estate or gift tax) other than U.S.&nbsp;federal income
tax considerations, that may be applicable to particular holders.
</FONT>

<P align="left">
<FONT size="2">If a partnership or other entity taxable as a
partnership holds the notes or the common stock, the tax
treatment of a partner will generally depend on the status and
activities of the partner and the status and activities of the
partnership. Any such partnership or other entity owning the
notes or the common stock and any owner thereof should consult
its tax advisor as to the tax consequences of the purchase,
ownership and disposition of the notes and the common stock.
</FONT>

<P align="left">
<B><I><FONT size="2">We urge prospective investors to consult
their own tax advisors with respect to the application of the
U.S.&nbsp;federal income tax laws to their particular situations
as well as any tax consequences arising under the
U.S.&nbsp;federal estate or gift tax laws or under the laws of
any state, local or foreign taxing jurisdiction or under any
applicable treaty or the possible effects of changes in the
United States federal and other tax laws.</FONT></I></B>

<P align="left">
<B><FONT size="2">Consequences to U.S.&nbsp;Holders</FONT></B>

<P align="left">
<FONT size="2">The following is a summary of the
U.S.&nbsp;federal income tax consequences that will apply to you
if you are a U.S.&nbsp;Holder of notes or common stock.
&#147;U.S.&nbsp;Holder&#148; means a beneficial owner of the
notes or the common stock that is:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a citizen or resident of the United States, as
    determined for United States federal income tax purposes;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a corporation or other business entity treated as
    a corporation for United States federal income tax purposes
    created or organized in or under the laws of the United States
    or any state thereof or the District of Columbia;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">an estate, the income of which is subject to
    U.S.&nbsp;federal income taxation regardless of its source; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a trust if a court within the United States can
    exercise primary supervision over its administration, and one or
    more United States persons have the authority to control all of
    the substantial decisions of that trust, or certain electing
    trusts that were in existence on August&nbsp;20, 1996, and were
    treated as domestic trusts on the previous date.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Original Issue Discount</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">The notes have been issued with &#147;original
issue discount&#148; for U.S.&nbsp;federal income tax purposes.
The amount of original issue discount on a note equals the
excess of the &#147;stated redemption price at maturity&#148; of
the note over its &#147;issue price.&#148; The stated redemption
price at maturity of a note equals the sum of its principal
amount plus all
</FONT>

<P align="center"><FONT size="2">43
</FONT>

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<DIV align="left">
<FONT size="2">other payments scheduled to be made thereunder.
The issue price of the notes is the first price at which a
substantial amount of the notes were sold to the public for
money, excluding sales to bond houses, brokers or similar
persons or organizations acting in the capacity of underwriters,
placement agents or wholesalers.
</FONT>
</DIV>

<P align="left">
<FONT size="2">Each U.S.&nbsp;Holder of a note must include
original issue discount in income as ordinary interest income
for federal income tax purposes as it accrues using a constant
yield method in advance of the receipt of cash payments
attributable to such income, regardless of such holder&#146;s
regular method of tax accounting. Because the holders have the
right to require us to repurchase the notes at a premium on
August&nbsp;15, 2008, the amount of original issue discount
includible in a U.S.&nbsp;Holder&#146;s income for each taxable
year must be calculated by assuming that the notes have a
maturity term of five years. In general, the amount of original
issue discount includible by a U.S.&nbsp;Holder is the sum of
the &#147;daily portions&#148; of original issue discount with
respect to a note for each day during the taxable year (or
portion of the taxable year) on which the holder held such note.
The daily portion is determined by allocating to each day in an
accrual period a pro rata portion of the original issue discount
allocable to such accrual period. The amount of original issue
discount allocable to an accrual period is the product of the
&#147;adjusted issue price&#148; of the note at the beginning of
the accrual period multiplied by its yield to maturity. The
adjusted issue price of a note at the beginning of an accrual
period is equal to its issue price, increased by the aggregate
amount of original issue discount that has accrued on the note
in all prior accrual periods, and decreased by any payments made
during all prior accrual periods.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Market Discount</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">If a U.S.&nbsp;Holder acquires notes at a price
that is less than the sum of the issue price and any accrued
original issue discount by more than a de&nbsp;minimis amount,
the holder may be deemed to have acquired notes with market
discount.
</FONT>

<P align="left">
<FONT size="2">Under the market discount rules, a
U.S.&nbsp;Holder will be required to treat any gain realized on
the sale, exchange, retirement or other taxable disposition of a
note as ordinary income to the extent of the lesser of
(i)&nbsp;the amount of such realized gain, or (ii)&nbsp;the
market discount which has not previously been included in income
and is treated as having accrued through the time of such
disposition. Market discount will be considered to accrue on a
straight-line basis during the period from the date of
acquisition to the maturity date of the note unless the
U.S.&nbsp;Holder elects to accrue market discount on a constant
yield basis. A U.S.&nbsp;Holder may be required to defer the
deduction of all or a portion of the interest paid or accrued on
any indebtedness incurred or maintained to purchase or carry a
note with market discount until the maturity of the note or
certain earlier dispositions.
</FONT>

<P align="left">
<FONT size="2">A U.S.&nbsp;Holder may elect to include market
discount in income currently as it accrues, in which case the
rules described above regarding the treatment as ordinary income
of gain upon the disposition of the note and regarding the
deferral of interest deductions will not apply. Any election to
include market discount in income currently as it accrues
applies to all market discount bonds acquired by the
U.S.&nbsp;Holder on or after the first day of the first taxable
year to which such election applies and may be revoked only with
the consent of the IRS. Persons considering making this election
should consult their tax advisors.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Bond and Acquisition Premium</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">If a holder acquires notes at a price that is
greater than the stated redemption price at maturity, the holder
will generally be deemed to have acquired notes with bond
premium. The amount of such premium will be included in the
adjusted tax basis of notes which may result in a capital loss
upon exchange, repurchase, sale or other disposition of notes. A
holder who acquires notes with bond premium will not be required
to include any original issue discount in income with respect to
the notes.
</FONT>

<P align="left">
<FONT size="2">A U.S.&nbsp;Holder who acquires the notes for an
amount less than or equal to the stated redemption price at
maturity but in excess of the adjusted issue price of such notes
will generally be deemed to have acquired notes with acquisition
premium. Under the acquisition premium rules, a U.S.&nbsp;Holder
is generally permitted to reduce the daily portions of original
issue discount on notes by the amount of acquisition premium
allocable to each such day.
</FONT>

<P align="center"><FONT size="2">44
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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Liquidated Damages</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">The contingent obligation to make payments of
&#147;liquidated damages&#148; in the event of our failure to
comply with specified obligations under the registration rights
agreement could implicate the provisions of Treasury regulations
relating to &#147;contingent payment debt instruments.&#148; At
the time of the issuance of the notes, we believed the
likelihood of such payment being made to be remote. Therefore,
we have taken the position that the notes should not be treated
as contingent payment debt instruments. However, the
determination of whether such a contingency is remote or not is
inherently factual. Therefore, we can give you no assurance that
this position would be sustained if challenged by the IRS. A
successful challenge of this position by the IRS could affect
the timing of the U.S.&nbsp;Holder&#146;s income and could cause
the gain from the sale or other disposition of a note to be
treated as ordinary income, rather than capital gain. Our
position for purposes of the contingent debt regulations as to
the likelihood of these additional payments being remote is
binding on a U.S.&nbsp;Holder, unless the U.S.&nbsp;Holder
discloses in the proper manner to the IRS that it is taking a
different position.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Sale, Exchange or Redemption of the
    Notes</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">A U.S.&nbsp;Holder generally will recognize
capital gain or loss if the U.S. Holder disposes of a note in a
sale, redemption or exchange (other than a conversion of the
note into common stock). The U.S.&nbsp;Holder&#146;s gain or
loss will equal the difference between the amount realized by
the U.S.&nbsp;Holder and the U.S.&nbsp;Holder&#146;s adjusted
tax basis in the note. The U.S.&nbsp;Holder&#146;s adjusted tax
basis in the note will generally equal the amount the
U.S.&nbsp;Holder paid for the note and increased by any accruals
of original issue discount and by any market discount included
in income. The amount realized by the U.S.&nbsp;Holder will
include the amount of any cash and the fair market value of any
other property received for the note. The gain or loss
recognized by a U.S.&nbsp;Holder on a disposition of the note
will be long-term capital gain or loss if the U.S.&nbsp;Holder
held the note for more than one year. Long-term capital gains of
non-corporate taxpayers are taxed at lower rates than those
applicable to ordinary income. The deductibility of capital
losses is subject to certain limitations.
</FONT>

<P align="left">
<FONT size="2">If, upon a change in control, a U.S.&nbsp;Holder
requires us to repurchase some or all of the holder&#146;s notes
and we elect to pay the repurchase price in shares of our common
stock or a combination of cash and shares of our common stock,
the redemption may qualify as a recapitalization for
U.S.&nbsp;federal income tax purposes if the notes qualify as
&#147;securities&#148; for those purposes. While the notes
probably qualify as &#147;securities,&#148; the matter is not
free from doubt. If the redemption qualifies as a
recapitalization and we deliver solely our common stock in the
redemption, a U.S.&nbsp;Holder would not recognize any income,
gain or loss on the holder&#146;s receipt of our common stock in
exchange for notes, except for any gain or loss attributable to
the receipt of cash in lieu of a fractional share of common
stock. The receipt of cash in lieu of a fractional share of
common stock will result in capital gain or loss measured by the
difference between the amount of cash received for the
fractional share and the U.S.&nbsp;Holder&#146;s adjusted tax
basis in the fractional share. The U.S.&nbsp;Holder&#146;s
aggregate basis in the common stock would equal his adjusted
basis in the note (less the portion of the basis allocable to a
fractional share of common stock for which cash is received).
The U.S.&nbsp;Holder&#146;s holding period for the stock would
include the period during which he held the note. If the
redemption qualifies as a recapitalization and we deliver a
combination of cash and shares of our common stock in the
redemption, a U.S.&nbsp;Holder would not be permitted to
recognize any loss as a result of the redemption and would be
required to recognize any gain realized to the extent of cash
received. The U.S.&nbsp;Holder&#146;s aggregate basis in the
common stock would equal his adjusted basis in the note,
increased by any gain recognized, and reduced by the amount of
cash that is received in the transaction. The
U.S.&nbsp;Holder&#146;s holding period for the stock would
include the period during which he held the note. If the
redemption does not qualify as a recapitalization, a
U.S.&nbsp;Holder will generally recognize capital gain or loss
equal to the difference between the amount realized by the
U.S.&nbsp;Holder and the U.S.&nbsp;Holder&#146;s adjusted tax
basis in the note as described above.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Conversion of the Notes</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">A U.S.&nbsp;Holder who converts a note into our
common stock will not recognize any income, gain or loss, except
for any gain or loss attributable to the receipt of cash in lieu
of a fractional share. The U.S.&nbsp;Holder&#146;s aggregate
adjusted basis in the common stock will equal his adjusted basis
in the note (less the portion of the basis allocable to a
fractional share of common stock for which cash is received),
and the U.S.&nbsp;Holder&#146;s holding period for the stock
will include the period during which he held the note. The
receipt of cash in lieu of a fractional share of
</FONT>

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<DIV align="left">
<FONT size="2">common stock generally will result in the capital
gain or loss measured by the difference between the cash
received for the fractional share and the
U.S.&nbsp;Holder&#146;s adjusted tax basis in the fractional
share.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Dividends on Common Stock</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">If a U.S.&nbsp;Holder converts a note into common
stock and we make a distribution (other than a distribution of
our own stock) in respect of that stock, the distribution will
be treated as a dividend to the extent it is paid from our
current or accumulated earnings and profits. If the distribution
exceeds our current and accumulated earnings and profits, the
excess will be treated as a nontaxable return of capital
reducing the U.S.&nbsp;Holder&#146;s adjusted tax basis in the
U.S.&nbsp;Holder&#146;s common stock to the extent of the
U.S.&nbsp;Holder&#146;s adjusted tax basis in that stock. Any
remaining excess will be treated as capital gain. Recent
legislation provides for special treatment of dividends paid to
individual taxpayers prior to 2009. Under this legislation,
dividend income that is received by individual taxpayers and
that satisfies certain requirements is generally subject to tax
at a favorable rate. We are required to provide stockholders who
receive dividends with an information return on
Form&nbsp;1099-DIV that states the extent to which the dividend
is paid from our current or accumulated earnings and profits. If
a U.S.&nbsp;Holder is a U.S.&nbsp;corporation, it will be able
to claim the deduction allowed to U.S.&nbsp;corporations in
respect of dividends received from other U.S. corporations equal
to a portion of any dividends received subject to generally
applicable limitations on that deduction. In general, a dividend
distribution to a corporate U.S. Holder may qualify for the 70%
dividends received deduction if the U.S.&nbsp;Holder owns less
than 20% of the voting power and value of our stock.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Constructive Dividends to Holders of Notes or
    Common Stock</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">The terms of the notes allow for changes in the
conversion price of the notes in certain circumstances. A change
in conversion price that allows U.S. Holders of notes to receive
more shares of common stock on conversion may increase those
noteholders&#146; proportionate interests in our earnings and
profits or assets. In that case, those noteholders could be
treated as though they received a dividend in the form of our
common stock. Such a constructive stock dividend could be
taxable to those noteholders, although they would not actually
receive any cash or other property. For example, such a taxable
constructive stock dividend would occur if the conversion price
were adjusted to compensate noteholders for distributions of
cash or property to our stockholders. However, a change in
conversion price to prevent the dilution of the
noteholders&#146; interests upon a stock split or other change
in capital structure, if made under a bona fide, reasonable
adjustment formula, should not increase noteholders&#146;
proportionate interests in our earnings and profits or assets
and should not be treated as a constructive stock dividend. On
the other hand, if an event occurs that dilutes the
noteholders&#146; interests and the conversion price is not
adjusted, the resulting increase in the proportionate interests
of our stockholders could be treated as a taxable stock dividend
to those stockholders. Any taxable constructive stock dividends
resulting from a change to, or failure to change, the conversion
price would be treated in the same manner as dividends paid in
cash or other property. These dividends would result in dividend
income to the recipient, to the extent of our current or
accumulated earnings and profits, with any excess treated as a
nontaxable return of capital or as capital gain as more fully
described above.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Sale of Common Stock</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">A U.S.&nbsp;Holder will generally recognize
capital gain or loss on a sale or exchange of common stock. The
U.S.&nbsp;Holder&#146;s gain or loss will equal the difference
between the amount realized by the U.S.&nbsp;Holder and the
U.S.&nbsp;Holder&#146;s adjusted tax basis in the stock as
described above in &#147;&#151;Conversion of the Notes&#148; and
&#147;&#151;Sale, Exchange or Redemption of the Notes.&#148; The
amount realized by the U.S.&nbsp;Holder will include the amount
of any cash and the fair market value of any other property
received for the stock. Gain or loss recognized by a
U.S.&nbsp;Holder on a sale or exchange of stock will be
long-term capital gain or loss if the holder held the stock for
more than one year. Long-term capital gains of non-corporate
taxpayers are taxed at lower rates than those applicable to
ordinary income. The deductibility of capital losses is subject
to certain limitations.
</FONT>

<P align="center"><FONT size="2">46
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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Information Reporting and Backup
    Withholding</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">When required, we or our paying agent will report
to the holders of the notes and the common stock and the IRS
amounts paid on or with respect to the notes and the common
stock during each calendar year and the amount of tax, if any,
withheld from such payments. A U.S.&nbsp;Holder will be subject
to backup withholding on payments made on the notes and
dividends paid on the common stock and proceeds from the sale of
the common stock or the notes at the applicable rate (which is
currently 28%) if the U.S.&nbsp;Holder (a)&nbsp;fails to provide
us or our paying agent with a correct taxpayer identification
number or certification of exempt status (such as certification
of corporate status), (b)&nbsp;has been notified by the IRS that
it is subject to backup withholdings as a result of the failure
to properly report payments of interest or dividends or,
(c)&nbsp;in certain circumstances, has failed to certify under
penalty of perjury that it is not subject to backup withholding.
A U.S.&nbsp;Holder may be eligible for an exemption from backup
withholding by providing a properly completed IRS Form&nbsp;W-9
to us or our paying agent. Any amounts withheld under the backup
withholding rules will generally be allowed as a refund or a
credit against a U.S.&nbsp;Holder&#146;s United States federal
income tax liability provided the required information is
properly furnished to the IRS on a timely basis.
</FONT>

<P align="left">
<B><FONT size="2">Consequences to
Non-U.S.&nbsp;Holders</FONT></B>

<P align="left">
<FONT size="2">For purposes of this discussion, a
Non-U.S.&nbsp;Holder means a beneficial owner of the notes or
the common stock who is a nonresident alien or a corporation,
trust or estate for U.S.&nbsp;federal income tax purposes that
is not a U.S.&nbsp;Holder. Special rules may apply to certain
non-U.S.&nbsp;Holders such as &#147;controlled foreign
corporations,&#148; &#147;passive foreign investment
companies,&#148; &#147;foreign personal holding companies,&#148;
and entities that are treated as partnerships for United States
federal income tax purposes. Such entities and their owners
should consult their tax advisors to determine the United States
federal, state, local and other tax consequences that may be
relevant to them.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Original Issue Discount</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Subject to the discussion of backup withholding
below under &#147;&#151;Information Reporting and Backup
Withholding,&#148; under the &#147;portfolio interest
exemption,&#148; a Non-U.S.&nbsp;Holder will generally not be
subject to United States federal income tax on any original
issue discount with respect to the notes (which will be
calculated in the manner described above under the caption
&#147;Consequences to U.S.&nbsp;Holders&#151; Original Issue
Discount&#148;), provided that the Non-U.S.&nbsp;Holder
(i)&nbsp;provides to us or our paying agent the appropriate
certification; (ii)&nbsp;does not actually or constructively own
10% or more of the total combined voting power of our voting
stock; (iii)&nbsp;is not a &#147;controlled foreign
corporation&#148; that is actually or constructively related to
us; or (iv)&nbsp;is not a bank whose ordinary receipt of
original issue discount on the notes is pursuant to a loan
agreement entered into in the ordinary course of business.
</FONT>

<P align="left">
<FONT size="2">Under current law, a certification requirement
will be satisfied in any of the following circumstances:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">If a Non-U.S.&nbsp;Holder that is not treated for
    United States federal income tax purposes as a foreign
    partnership or other foreign flow-through entity provides to us
    or our paying agent a statement on IRS Form&nbsp;W-8BEN (or
    suitable successor or substitute form), together with all
    appropriate attachments, signed under penalties of perjury,
    identifying the Non-U.S.&nbsp;Holder by name and address and
    stating, among other things, that the Non-U.S.&nbsp;Holder is
    not a United States person.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">If a note is held through a securities clearing
    organization, bank or another financial institution that holds
    customers&#146; securities in the ordinary course of its trade
    or business (i)&nbsp;the Non-U.S.&nbsp;Holder provides such a
    form to the organization or institution, and (ii)&nbsp;the
    organization or institution, under penalty of perjury, certifies
    to us that it has received such statement from the beneficial
    owner or another intermediary and furnishes us or our paying
    agent with a copy.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">If a financial institution or another
    intermediary that holds the note on behalf of the
    Non-U.S.&nbsp;Holder and has entered into a withholding
    agreement with the IRS submits an IRS Form&nbsp;W-8IMY (or
    suitable successor or substitute form) and certain other
    required documentation to us or our paying agent.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">47
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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">If a Non-U.S.&nbsp;Holder that is treated for
    United States federal income tax purposes as a foreign
    partnership or other foreign flow-through entity furnishes to us
    or our paying agent an IRS Form&nbsp;W-8IMY (or suitable
    successor or substitute form), certain other required
    documentation, and, unless such holder has entered into a
    withholding agreement with the IRS, an IRS Form&nbsp;W-8BEN (or
    suitable successor or substitute form) from each direct and
    indirect owner.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">If the requirements of the portfolio interest
exemption described above are not satisfied, a 30% withholding
tax will apply to original issue discount on the notes that is
paid to a Non-U.S.&nbsp;Holder, unless either: (a)&nbsp;an
applicable income tax treaty reduces or eliminates such tax, and
the Non-U.S.&nbsp;Holder claims the benefit of that treaty by
providing a properly completed and duly executed IRS
Form&nbsp;W-8BEN (or suitable successor or substitute form)
establishing qualification for benefits under the treaty, or
(b)&nbsp;the original issue discount is effectively connected
with the Non-U.S.&nbsp;Holder&#146;s conduct of a trade or
business in the United States and the Non-U.S.&nbsp;Holder
provides an appropriate statement to that effect on a properly
completed and duly executed IRS Form&nbsp;W-8ECI (or suitable
successor or substitute form).
</FONT>

<P align="left">
<FONT size="2">If a Non-U.S.&nbsp;Holder is engaged in a trade
or business in the United States and original issue discount on
a note is effectively connected with the conduct of that trade
or business, the Non-U.S.&nbsp;Holder will be required to pay
United States federal income tax on that original issue discount
on a net income basis (although exempt from the 30% withholding
tax provided the appropriate statement is provided to us)
generally in the same manner as a U.S.&nbsp;Holder. If a
Non-U.S.&nbsp;Holder is eligible for the benefits of a tax
treaty between the United States and its country of residence,
any original issue discount that is effectively connected with a
United States trade or business will be subject to United States
federal income tax in the manner specified by the treaty and
generally will only be subject to such tax if such income is
attributable to a permanent establishment (or a fixed base in
the case of an individual) maintained by the
Non-U.S.&nbsp;Holder in the United States and the
Non-U.S.&nbsp;Holder claims the benefit of the treaty by
properly submitting an IRS Form&nbsp;W-8BEN (or suitable
successor or substitute form). In addition, a
Non-U.S.&nbsp;Holder that is treated as a foreign corporation
for United States federal income tax purposes may be subject to
a branch profits tax equal to 30% (or lower applicable treaty
rate) of its earnings and profits for the taxable year, subject
to adjustments, that are effectively connected with its conduct
of a trade or business in the United States.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Liquidated Damages</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">As described under &#147;Description of
Notes&#151;Registration Rights,&#148; we may be required to make
payments of &#147;liquidated damages&#148; to certain holders if
we fail to comply with specified obligations under the
registration rights agreement. We currently plan to the take the
position that such payments are subject to U.S.&nbsp;federal
withholding tax at a rate of 30% or lower treaty rate, if
applicable.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Conversion of the Notes</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">A Non-U.S.&nbsp;Holder who converts his note into
common stock generally will not recognize any income, gain or
loss, except for any gain or loss attributable to the receipt of
cash in lieu of a fractional share. To the extent that a
Non-U.S.&nbsp;Holder receives cash in lieu of a fractional share
on conversion, such cash may give rise to gain that would be
subject to the rules described below with respect to the sale or
exchange of a note or common stock. The
Non-U.S.&nbsp;Holder&#146;s aggregate adjusted basis in the
common stock will equal his adjusted basis in the note (less the
portion of the basis allocable to a fractional share of common
stock for which cash is received), and the Non-U.S.
Holder&#146;s holding period for the stock will include the
period during which he held the note.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Dividends</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Subject to the discussion below of backup
withholding, dividends paid on the common stock to a
Non-U.S.&nbsp;Holder (including any deemed dividend payments as
discussed in &#147;Consequences to
U.S.&nbsp;Holders&#151;Constructive Dividends to Holders of
Notes or Common Stock&#148;) generally will be subject to a 30%
U.S.&nbsp;federal withholding tax, unless either: (a)&nbsp;an
applicable income tax treaty reduces or eliminates such tax, and
the Non-U.S.&nbsp;Holder claims the benefit of that treaty by
providing a properly completed and duly executed IRS
Form&nbsp;W-8BEN (or suitable successor or substitute form)
establishing qualification for benefits
</FONT>

<P align="center"><FONT size="2">48
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">under the treaty, or (b)&nbsp;the dividend is
effectively connected with the Non-U.S.&nbsp;Holder&#146;s
conduct of a trade or business in the United States and the
Non-U.S.&nbsp;Holder provides an appropriate statement to that
effect on a properly completed and duly executed IRS
Form&nbsp;W-8ECI (or suitable successor or substitute form).
</FONT>
</DIV>

<P align="left">
<FONT size="2">If dividends paid on the common stock to a
Non-U.S.&nbsp;Holder are effectively connected with the
Non-U.S.&nbsp;Holder&#146;s trade or business in the United
States, the Non-U.S.&nbsp;Holder will be required to pay United
States federal income tax on that dividend on a net income basis
(although exempt from the 30% withholding tax provided the
appropriate statement is provided to us) generally in the same
manner as a U.S.&nbsp;Holder. If a Non-U.S.&nbsp;Holder is
eligible for the benefits of a tax treaty between the United
States and its country of residence, any dividend income that is
effectively connected with a United States trade or business
will be subject to United States federal income tax in the
manner specified by the treaty and generally will only be
subject to such tax if such income is attributable to a
permanent establishment (or a fixed base in the case of an
individual) maintained by the Non-U.S.&nbsp;Holder in the United
States and the Non-U.S.&nbsp;Holder claims the benefit of the
treaty by properly submitting an IRS Form&nbsp;W-8BEN (or
suitable successor or substitute form). In addition, a
Non-U.S.&nbsp;Holder that is treated as a foreign corporation
for United States federal income tax purposes may be subject to
a branch profits tax equal to 30% (or lower applicable treaty
rate) of its earnings and profits for the taxable year, subject
to adjustments, that are effectively connected with its conduct
of a trade or business in the United States.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Dispositions of Notes and Common
    Stock</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Generally, a Non-U.S.&nbsp;Holder will not be
subject to federal income tax on gain realized upon the sale,
exchange, redemption or other disposition of a note or sale or
exchange of common stock unless: (a)&nbsp;such holder is an
individual present in the United States for 183&nbsp;days or
more in the taxable year of the sale, exchange, redemption or
other disposition and certain other conditions are met,
(b)&nbsp;the gain is effectively connected with the conduct of a
trade or business in the United States by the
Non-U.S.&nbsp;Holder, and in the case of a treaty resident,
attributable to a permanent establishment (or in the case of an
individual, to a fixed base) in the United States, or
(c)&nbsp;the Company is or has been a U.S.&nbsp;real property
holding corporation, as defined in the Code, at any time within
the 5-year period preceding the disposition or the
Non-U.S.&nbsp;Holder&#146;s holding period, whichever period is
shorter. The Company is not, and does not anticipate becoming, a
U.S.&nbsp;real property holding corporation.
</FONT>

<P align="left">
<FONT size="2">If the first exception applies, the
Non-U.S.&nbsp;Holder generally will be subject to tax at a rate
of 30% on the amount by which the United States-source capital
gains exceed capital losses allocable to United States sources.
If the second exception applies, generally the Non-U.S. Holder
will be required to pay United States federal income tax on the
net gain derived from the sale in the same manner as
U.S.&nbsp;Holders, as described above. If a Non-U.S.&nbsp;Holder
is eligible for the benefits of a tax treaty between the United
States and its country of residence, any such gain will be
subject to United States federal income tax in the manner
specified by the treaty and generally will only be subject to
such tax if such gain is attributable to a permanent
establishment (or a fixed base in the case of an individual)
maintained by the Non-U.S.&nbsp;Holder in the United States and
the Non-U.S.&nbsp;Holder claims the benefit of the treaty by
properly submitting an IRS Form&nbsp;W-8BEN (or suitable
successor or substitute form). Additionally,
Non-U.S.&nbsp;Holders that are treated for United States federal
income tax purposes as corporations and that are engaged in a
trade or business or have a permanent establishment in the
United States could be subject to a branch profits tax on such
income at a 30% rate or a lower rate if so specified by an
applicable income tax treaty.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Information Reporting and Backup
    Withholding</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">When required, we or our paying agent will report
to the IRS and to each Non-U.S.&nbsp;Holder the amount of any
dividend paid on the common stock and any amount paid with
respect to the notes in each calendar year, and the amount of
tax withheld, if any, with respect to these payments.
</FONT>

<P align="left">
<FONT size="2">Non-U.S.&nbsp;Holders who have provided the forms
and certification mentioned above or who have otherwise
established an exemption will generally not be subject to backup
withholding tax if neither we nor our agent has actual knowledge
or reason to know that any information in those forms and
certification is unreliable or that the conditions of the
exemption are in fact not satisfied. Payments of the proceeds
from the sale of a note or common stock to or through a foreign
office of a broker will not be subject to information reporting
or backup
</FONT>

<P align="center"><FONT size="2">49
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">withholding. However, additional information
reporting, but not backup withholding, may apply to those
payments if the broker is one of the following: (a)&nbsp;a
United States person, (b)&nbsp;a controlled foreign corporation
for United States tax purposes, (c)&nbsp;a foreign person
50&nbsp;percent or more of whose gross income from all sources
for the three-year period ending with the close of its taxable
year preceding the payment was effectively connected with a
United States trade or business, or (d)&nbsp;a foreign
partnership with specified connections to the United States.
</FONT>
</DIV>

<P align="left">
<FONT size="2">Payment of the proceeds from a sale of a note or
common stock to or through the United States office of a broker
will be subject to information reporting and backup withholding
unless the holder of beneficial owner certifies as to its
taxpayer identification number or otherwise establishes an
exemption from information reporting and backup withholding.
</FONT>

<P align="left">
<FONT size="2">Backup withholding is not an additional tax. The
amount of any backup withholding from a payment to a
Non-U.S.&nbsp;Holder will be allowed as a credit against such
holder&#146;s United States federal income tax liability and may
entitle the holder to a refund, provided the required
information is furnished to the IRS.
</FONT>

<P align="left">
<B><I><FONT size="2">The preceding discussion of certain
U.S.&nbsp;federal income tax consequences is for general
information only and is not tax advice. Accordingly, each
investor should consult its own tax advisor as to particular tax
consequences to it of purchasing, holding and disposing of the
notes and the common stock, including the applicability and
effect of any state, local or foreign tax laws, and of any
proposed changes in applicable laws.</FONT></I></B>

<P align="center"><FONT size="2">50
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "SELLING SECURITYHOLDERS" -->
<DIV align="left"><A NAME="008"></A></DIV>

<P align="center">
<B><FONT size="2">SELLING SECURITYHOLDERS</FONT></B>

<P align="left">
<FONT size="2">We originally issued the notes to J.P. Morgan
Securities Inc. and SG Cowen Securities Corporation, referred to
as the initial purchasers, in transactions exempt from the
registration requirements of the Securities Act. The notes were
immediately resold by the initial purchasers to persons
reasonably believed by the initial purchasers to be
&#147;qualified institutional buyers&#148; within the meaning of
Rule&nbsp;144A under the Securities Act in transactions exempt
from registration under the Securities Act. Selling
securityholders, including their transferees, pledgees or donees
or their successors, may from time to time offer and sell the
notes and the common stock into which the notes are convertible.
Our registration of the notes and the shares of common stock
issuable upon conversion of the notes does not necessarily mean
that the selling securityholders will sell all or any of the
notes or the common stock. Except as set forth below, none of
the selling securityholders has, or within the past three years
has had, any position, office or other material relationship
with us or any of our predecessors or affiliates.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">The following table sets forth certain
information as of April&nbsp;27, 2004, except where otherwise
noted, concerning the principal amount of notes beneficially
owned by each selling securityholder and the number of shares of
underlying common stock that may be offered from time to time by
each selling securityholder with this prospectus. The
information is based on information provided by or on behalf of
the selling securityholders. We have assumed for purposes of the
table below that the selling securityholders will sell all of
the notes and all of the common stock issuable upon conversion
of the notes pursuant to this prospectus, and that any other
shares of our common stock beneficially owned by the selling
securityholders will continue to be beneficially owned.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">Information about the selling securityholders may
change over time. In particular, the selling securityholders
identified below may have sold, transferred or otherwise
disposed of all or a portion of their notes since the date on
which they provided to us information regarding their notes. Any
changed or new information given to us by the selling
securityholders will be set forth in supplements to this
prospectus or amendments to the registration statement of which
this prospectus is a part, if and when necessary.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="25%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Principal</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Natural</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares of</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Person(s)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">with Voting</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">or</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned and</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned after the</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Investment</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Name of Selling Securityholder</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offered</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Outstanding</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned(1)(2)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offered(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offering(2)(6)</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Power</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amaranth L.L.C.+
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">7,450,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.77</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">481,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">475,898</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5,700</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Nicholas M. Maounis and Charles Winkler
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Akela Capital Master Fund, Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2.38</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">638,790</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">638,790</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Anthony B. Bosco
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank of America Pension Plan
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.07</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">287,455</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">287,455</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Lach
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Barclays Global Investors
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diversified Alpha Plus Funds
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">c/o&nbsp;Forest Investment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Management LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,130,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">72,183</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">72,183</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Michael A. Boyd
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Barclays Global Investors Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">63,879</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">63,879</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Lach
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Barnet Partners Ltd.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">191,637</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">191,637</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Lach
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bear, Stearns &#38; Co. Inc.#
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.19</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">David Liebowitz and Yan Erlikh
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">BNP Equity Strategies, SNC+
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2,944,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">260,288</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">188,059</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">72,229</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Jean Dominjon, Thomas J. Mahoney and Andrew Sterge
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basso Holdings Ltd.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">6,455,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.5</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">412,338</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">412,338</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Howard Fischer
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basso Multi-Strategy Holding
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fund Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">95,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">95,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Howard Fischer
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center"><FONT size="2">51
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="25%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Principal</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Natural</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares of</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Person(s)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">with Voting</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">or</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned and</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned after the</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Investment</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Name of Selling Securityholder</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offered</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Outstanding</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned(1)(2)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offered(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offering(2)(6)</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Power</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Canyon Capital Arbitrage Master
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fund, Ltd.+
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">95,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">95,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Joshua S. Friedman, Mitchell R. Julis, R.
    Christian B. Evensen, and K. Robert Turner
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Canyon Value Realization Fund
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">(Cayman), Ltd.+
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2,050,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">130,952</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">130,952</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Joshua S. Friedman, Mitchell R. Julis, and R.
    Christian B. Evensen
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Canyon Value Realization Fund,
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">L.P.+
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">750,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">47,909</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">47,909</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Joshua S. Friedman, Mitchell R. Julis, R.
    Christian B. Evensen, and K. Robert Turner
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Canyon Value Realization MAC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">18, Ltd.+
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">300,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">19,163</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">19,163</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Joshua S. Friedman, Mitchell R. Julis, R.
    Christian B. Evensen, and K. Robert Turner
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Century Park Trust
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">191,637</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">191,637</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Lach
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">CNH CA Master Account, L.P.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">255,516</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">255,516</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Robert Krall, Mark Mitchell and Todd Pulvino
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consulting Group Capital Markets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Funds
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">63,879</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">63,879</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Lach
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">CooperNeff Convertible Strategies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">(Cayman) Master Fund L.P.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3,104,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">198,280</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">198,280</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Jean Dominjon, Thomas J. Mahoney and Andrew Sterge
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Credit Suisse First Boston
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Europe Limited+
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">33,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">7.98</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2,139,946</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2,139,946</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Gerry Murtah
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">DBAG London
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">20,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.76</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,277,580</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,277,580</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Dan Azzi
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deep Rock&nbsp;&#38; Co.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2,750,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">175,667</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">175,667</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Lach
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">DKR SoundShore Opportunity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Holding Fund Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5,275,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.26</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">336,961</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">336,961</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Howard Fischer
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">DKR SoundShore Strategic
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Holding Fund Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5,193,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.24</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">331,723</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">331,723</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Howard Fischer
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Duck Bill&nbsp;&#38; Co.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">127,758</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">127,758</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Lach
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center"><FONT size="2">52
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="25%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Principal</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Natural</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares of</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Person(s)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">with Voting</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">or</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned and</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned after the</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Investment</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Name of Selling Securityholder</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offered</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Outstanding</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned(1)(2)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offered(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offering(2)(6)</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Power</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fore Convertible Master Fund,
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Ltd.&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">20,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.76</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,277,580</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,277,580</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">David Egglishaw
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Forest Fulcrum Fund LP#
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">159,697</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">159,697</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Michael A. Boyd
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Forest Global Convertible Fund
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Ltd., Class&nbsp;A-5
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">7,550,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.80</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">482,286</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">482,286</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Michael A. Boyd
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Forest Multi-Strategy Master
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Fund SPC, on behalf of its
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Multi-Strategy Segregated
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Portfolio
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3,147,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">201,027</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">201,027</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Michael A. Boyd
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Frontpoint Convertible Arbitrage
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Fund L.P.&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3,578,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">228,559</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">228,559</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Philip Duff, W. Gillespie Caffray and Paul
    Ghaffari
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">General Motors Welfare Benefit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Trust
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">255,516</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">255,516</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Lach
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Geode U.S. Convertible Arbitrage
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Fund, a series of Geode
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Investors LLC
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">191,637</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">191,637</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Vincent Gubitosi
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">GLG Market Neutral Fund
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">21,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5.00</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,341,459</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,341,459</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">(8)
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">GMAM Group Pension Trust
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4,250,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.01</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">271,485</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">271,485</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Lach
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goldman, Sachs&nbsp;&#38; Co.#(7)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">50,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">11.90</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3,724,492</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3,193,950</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">530,542</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">(9)
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Grace Convertible Arbitrage
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Fund, Ltd.+
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.19</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Bradford Whitmore and Michael Barilov
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Guggenheim Portfolio Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">VIII (Cayman), Ltd
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.19</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Laren Katzovitz, Kevin Felix, Patrick Hughes
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Guggeheim Portfolio Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">XV, LLC
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">750,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">47,909</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">47,909</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Adair
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">HFR CA Global Opportunity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Master Trust
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">525,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">33,536</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">33,536</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Michael A. Boyd
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">HFR RVA Select Performance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Master Trust
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">497,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">31,747</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">31,747</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Michael A. Boyd
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">JMG Capital Partners, LP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">12,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2.98</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">798,487</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">798,487</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Jonathan M. Glaser
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">JMG Triton Offshore Fund, Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">14,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.45</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">926,245</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">926,245</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Jonathan M. Glaser and Roger Richter
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">John Deere Pension Trust
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">95,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">95,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Lach
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KBC Financial Products (Cayman
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Islands) Ltd.+
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.19</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Iran Rehder
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KBC Financial Products USA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Inc.#
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.19</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Luke Edwards
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">LLT Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">900,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">57,491</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">57,491</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Michael A. Boyd
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center"><FONT size="2">53
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="25%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Principal</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Natural</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares of</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Person(s)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">with Voting</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">or</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned and</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned after the</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Investment</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Name of Selling Securityholder</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offered</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Outstanding</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned(1)(2)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offered(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offering(2)(6)</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Power</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Lyxor/Convertible Arbitrage Fund
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Limited&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">520,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">33,217</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">33,217</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Jean Dominjon, Thomas J. Mahoney and Andrew Sterge
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Lyxor/Forest Fund Ltd. c/o&nbsp;Forest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Investment Management LLC
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3,292,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">210,289</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">210,289</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Michael A. Boyd
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Man Convertible Bond Master
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Fund, Ltd.&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4,200,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.00</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">268,291</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">268,291</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">John Null and J.T. Hansen
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Man Mac&nbsp;1 Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.19</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Michael Collins
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">MSD&nbsp;TCB, L.P.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">12,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2.86</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">766,548</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">766,548</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">John Phelan and Glenn Furman
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Nomura Securities International,
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Inc.#
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">27,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">6.43</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,724,733</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,724,733</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Robert Citrine
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Pandora Select Partners LP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.19</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Andrew Redleaf
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Peoples Benefit Life Insurance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Company Teamsters
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">18,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,181,761</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,181,761</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Lach
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Polaris Vega Fund L.P.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">63,879</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">63,879</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Gregory R. Levison
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">R2 Investments LDC+
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">31,939</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">31,939</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Geoffry Raynor
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ramius Capital Group
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">31,939</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">31,939</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Adair
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ramius, LP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">100,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">6,387</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">6,387</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Adair
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ramius Partners II, LP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">250,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">15,969</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">15,969</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Adair
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">RCG Baldwin, LP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">31,939</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">31,939</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Adair
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">RCG Latitude Master Fund, Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5,650,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">360,916</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">360,916</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Adair
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">RCG Multi Strategy Master Fund,
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Ltd.&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">95,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">95,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Adair
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Relay 11 Holdings Co. c/o&nbsp;Forest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Investment Management LLC
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">700,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">44,715</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">44,715</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Michael A. Boyd
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Retail Clerks Pension Trust
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2,250,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">143,727</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">143,727</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Lach
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Retail Clerks Pension Trust&nbsp;2
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">95,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">95,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Lach
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Royal Bank of Canada+
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">164,104</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">127,758</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">36,346</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Jeffrey Eichenberg
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Silverback Master, Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">12,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2.86</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">766,548</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">766,548</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Elliot Bossen
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">SingleHedge U.S. Convertible
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Arbitrage Fund
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">832,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">53,147</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">53,147</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Jean Dominjon Thomas J. Mahoney and Andrew Sterge
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Sphinx Convertible Arbitrage SPC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">c/o&nbsp;Forest Investment
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Management LLC
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">657,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">41,968</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">41,968</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Michael A. Boyd
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">St. Albans Partners Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">16,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.93</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,054,004</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,054,004</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Lach
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">St. Thomas Trading, Ltd.+
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5,800,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.38</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">370,498</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">370,498</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">John Null and J.T. Hansen
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center"><FONT size="2">54
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="25%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Principal</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Natural</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares of</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Person(s)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">with Voting</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">or</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned and</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned after the</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Investment</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Name of Selling Securityholder</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offered</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Outstanding</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned(1)(2)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offered(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offering(2)(6)</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Power</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Sturgeon Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">600,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">38,327</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">38,327</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Jean Dominjon Thomas J. Mahoney and Andrew Sterge
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Sunrise Partners Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Partnership+
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.19</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">S. Donald Sussman
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">TD Securities (USA) Inc.#
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">34,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">8.10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2,171,886</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2,171,886</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">(10)
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Timberpass Trading L.L.C.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">191,637</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">191,637</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Brian Grad and Thomas D. Curran
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">UBS O&#146;Connor LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">F/B/O&nbsp;O&#146;Connor Global
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Convertible Arbitrage Master
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Limited
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.07</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">287,455</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">287,455</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">(3)
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">UBS AG London Branch+
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">41,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">9.88</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2,650,978</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2,650,978</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Tom Klein, Veronica Wilthew, Charles Dietz, and
    Pat Costigan
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Whitebox Convertible Arbitrage
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Beta Master Fund LP
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">255,516</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">255,516</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Andrew Redleaf
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Whitebox Convertible Arbitrage
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Partners LP
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">20,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.76</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,277,580</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,277,580</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Andrew Redleaf
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">White River Securities L.L.C.#
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.19</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">David Liebowitz and Yan Erlikh
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Wachovia Capital Markets LLC#
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">12,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2.98</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">798,487</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">798,487</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Eric Grant
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Windmill Master Fund, LP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">7,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.79</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">479,092</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">479,092</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Stanley Druckenmiller
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Xavex Convertible Arbitrage&nbsp;4
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Fund c/o&nbsp;Forest Investment
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Management LLC
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">400,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">25,551</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">25,551</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Michael A. Boyd
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Xavex Convertible Arbitrage 5
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Fund
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">750,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">47,909</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">47,909</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Adair
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Yield Strategies Fund I, L.P.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">255,516</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">255,516</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Lach
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Yield Strategies Fund II, L.P.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.19</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">319,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alex Lach
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Zurich Institutional Benchmarks
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Master Fund Ltd. c/o&nbsp;Forest
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Investment Management LLC
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1,850,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">118,176</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">118,176</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Michael A. Boyd
    </FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total(4)(5)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">420,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">27,473,997</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">26,829,180</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">644,817</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp;&nbsp;*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Less than one percent (1%).
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp;&nbsp;#&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The selling securityholder is a registered
    broker-dealer.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp;&nbsp;+&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The selling securityholder is an affiliate of a
    registered broker-dealer.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; (1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Assumes conversion of all of the holder&#146;s
    notes at a conversion rate of 63.8790 shares of common stock per
    $1,000 principal amount at maturity of the notes. This
    conversion rate is subject to adjustment as described under
    &#147;Description of Notes&#151; Conversion Rights.&#148; As a
    result, the number of shares of common stock issuable upon
    conversion of the notes may increase or decrease in the future.
    Excludes shares of common stock that may be issued by us upon
    the repurchase of the notes as described under &#147;Description
    of Notes&#151;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">55
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="left">
    <FONT size="2">Repurchase of the Notes by Us at the Option of
    Holders Upon a Fundamental Change&#148; and fractional shares.
    Holders will receive a cash adjustment for any fractional share
    amount resulting from conversion of the notes, as described
    under &#147;Description of Notes&#151; Conversion Rights.&#148;
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; (2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Except for footnote&nbsp;7 below, the number of
    shares of common stock beneficially owned by each holder named
    above is less than 1% of our outstanding common stock,
    calculated based on 273,356,132&nbsp;shares of common stock
    outstanding as of April&nbsp;3, 2004. In calculating this amount
    for each holder, we treated as outstanding the number of shares
    of common stock issuable upon conversion of all of that
    holder&#146;s notes, but we did not assume conversion of any
    other holder&#146;s notes.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; (3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The selling securityholder has informed us that
    there are no natural persons with voting or investment power
    over the notes and common stock issuable upon conversion of the
    notes.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; (4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Information concerning named selling
    securityholders or future transferees, pledgees or donees of or
    from any such securityholder will be set forth in supplements to
    this prospectus, absent circumstances indicating the change is
    material. In addition, post-effective amendments to the
    registration statement, of which this prospectus is a part, will
    be filed to disclose any material changes to the plan of
    distribution from the description in the final prospectus, or
    additions or changes with respect to unnamed selling
    securityholders or future transferees, pledgees or donees from
    such unnamed holders.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; (5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The sum of the listed principal amounts of notes
    beneficially owned by the selling securityholders named in the
    table above exceeds $420,000,000 because certain selling
    securityholders may have transferred notes or otherwise reduced
    their position prior to selling pursuant to this prospectus, and
    as a result we received beneficial ownership information from
    additional selling securityholders. However, the maximum
    principal amount of notes that may be sold under this prospectus
    will not exceed $420,000,000.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; (6)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">For the purposes of computing the number and
    percentage of notes and shares to be held by the selling
    shareholders after the conclusion of the offering, we have
    assumed for purposes of the table above that the selling
    securityholders named above will sell all of the notes and all
    of the common stock issuable upon conversion of the notes
    offered by this prospectus, and that any other shares of our
    common stock beneficially owned by these selling securityholders
    will continue to be beneficially owned. We also assume that
    unnamed holders of notes, or any future transferees, pledgees,
    donees or successors of or from any such holder, do not
    beneficially own any common stock other than that issuable upon
    conversion of the notes.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; (7)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Goldman Sachs &#38; Co. beneficially owns in the
    aggregate 1.17% of the outstanding shares of our common stock as
    of April&nbsp;3, 2004, assuming conversion of its notes, but not
    the conversion of any other holder&#146;s notes.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; (8)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">GLG Market Neutral Fund is a publicly owned
    company listed on the Irish Stock Exchange. GLG Partners LP, an
    English limited partnership, acts as the investment manager of
    the fund and has voting and dispositive power over the
    securities held by the Fund. The general partner of GLG Partners
    LP is GLG Partners Limited, an English limited company. The
    shareholders of GLG Partners Limited are Noam Gottesman, Pierre
    Lagrange, Jonathan Green, Philippe Jabre and Lehman (Cayman)
    Limited, a subsidiary of Lehman Brothers, Inc., a publicly-held
    entity. GLG Partners LP, GLG Partners Limited, Noam Gottesman,
    Pierre Lagrange, Jonathan Green, Philippe Jabre and Lehman
    (Cayman) Limited disclaim beneficial ownership of the securities
    held by the Fund, except for their pecuniary interest herein.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; (9)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Goldman Sachs&nbsp;&#38; Co. is a publicly traded
    company.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(10)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">For TD Securities (USA) Inc. the controlling
    shareholder is the Toronto Dominion Bank, a publicly traded
    company.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">56
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">
<FONT size="2">This prospectus may be used only by the selling
securityholders identified above to sell the securities set
forth opposite each such selling securityholder&#146;s name in
the foregoing table. This prospectus may not be used by any
selling securityholder not named in this prospectus, including
transferees, pledgees or donees of the selling securityholders
named above, prior to the effectiveness of the registration
statement, of which this prospectus is a part. Prior to any use
of this prospectus in connection with an offering of the notes
and/or the common stock issuable upon conversion of the notes by
any unnamed securityholder or future transferees, pledgees or
donees from such unnamed securityholders, the registration
statement, of which this prospectus is a part, will be amended,
as required, to set forth the name and other information about
such selling securityholder. Additional information for the
named securityholders and the information for transferees,
pledgees or donees of the named securityholders will be provided
by supplements to this prospectus, absent circumstances
indicating the change is material. The supplement or amendment
will also disclose whether any securityholder selling in
connection with such supplement or amendment has held any
position or office with, been employed by or otherwise had a
material relationship with, us or any of our affiliates during
the three years prior to the date of the supplement or amendment
if such information has not been previously disclosed.
</FONT>

<P align="center"><FONT size="2">57
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "PLAN OF DISTRIBUTION" -->
<DIV align="left"><A NAME="009"></A></DIV>

<P align="center">
<B><FONT size="2">PLAN OF DISTRIBUTION</FONT></B>

<P align="left">
<FONT size="2">The selling securityholders and their successors,
which includes their transferees, pledgees or donees or their
successors, may, from time to time, sell the notes and the
underlying common stock directly to purchasers or through
underwriters, broker/dealers or agents who may receive
compensation in the form of underwriting discounts, concessions
or commissions from the selling securityholders and/or the
purchasers of the securities. These discounts, concessions or
commissions may be in excess of those customary in the types of
transactions involved.
</FONT>

<P align="left">
<FONT size="2">The selling securityholders may sell the notes
and the underlying common stock, from time to time, in one or
more transactions at:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">fixed prices;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">prevailing market prices at the time of sale;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">prices related to such prevailing market prices;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">varying prices determined at the time of sale; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">negotiated prices.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">These sales may be effected in transactions
(which may involve block transactions) in the following manner:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">on any national securities exchange or quotation
    service on which the notes or the underlying common stock may be
    listed or quoted at the time of sale;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">in the over-the-counter market;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">in transactions otherwise than on such exchanges
    or services or in the over-the-counter market; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">through the writing of options, whether such
    options are listed on option exchanges or otherwise through the
    settlement of short sales.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">These sales may include crosses. Crosses are
transactions in which the same broker acts as an agent on both
sides of the transaction.
</FONT>

<P align="left">
<FONT size="2">The selling securityholders may also enter into
hedging transactions with broker/ dealers or other financial
institutions in connection with the sales of the notes or the
underlying common stock. These broker/ dealers or other
financial institutions may in turn engage in short sales of
these securities in the course of hedging their positions. The
selling securityholders may sell short these securities to close
out short positions, or loan or pledge these securities to
broker/dealers that, in turn, may sell such securities.
</FONT>

<P align="left">
<FONT size="2">A short sale of the notes or the underlying
common stock by a broker-dealer, financial institution or
selling securityholder would involve the sale of such notes or
underlying common stock that are not owned, and therefore must
be borrowed, in order to make delivery of the security in
connection with such sale. In connection with a short sale of
the notes or the underlying common stock, a broker-dealer,
financial institution or selling securityholder may purchase the
notes or our common stock on the open market to cover positions
created by short sales. In determining the source of the notes
or shares of common stock to close out such short positions, the
broker-dealer, financial institution or selling securityholders
may consider, among other things, the price of notes or shares
of common stock available for purchase in the open market.
</FONT>

<P align="left">
<FONT size="2">The aggregate proceeds to the selling
securityholders from the sale of the notes or underlying common
stock will be the purchase price of the notes or common stock
less any discounts or commissions. A selling securityholder
reserves the right to accept, and together with its agents, to
reject (except when we decide to redeem the notes in accordance
with the terms of the indenture) any proposed purchase of notes
or common stock to be made directly or through agents. We will
not receive any of the proceeds from this offering.
</FONT>

<P align="left">
<FONT size="2">To comply with certain states&#146; securities
laws, if applicable, the selling securityholders will offer or
sell the notes and the common stock into which the notes are
convertible in such jurisdictions only through registered or
licensed brokers/dealers. In addition, in some states the
selling securityholders may not sell the notes and the
</FONT>

<P align="center"><FONT size="2">58
</FONT>
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<DIV align="left">
<FONT size="2">common stock into which the notes are convertible
unless such securities have been registered or qualified for
sale in the applicable state or an exemption from registration
or qualification is available and the conditions of which have
been satisfied.
</FONT>
</DIV>

<P align="left">
<FONT size="2">Our outstanding common stock is listed for
trading on the NYSE. Since their initial issuance, the notes
have been eligible for trading on the PORTAL Market of the
National Association of Securities Dealers, Inc. However, notes
sold by means of this prospectus will no longer be eligible for
trading of the PORTAL Market. We do not intend to list the notes
for trading on any other automated quotation system or any
securities exchange.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">The selling securityholders and any underwriters,
broker/dealers or agents that participate in the distribution of
the notes and underlying common stock may, in connection with
these sales, be deemed to be &#147;underwriters&#148; within the
meaning of the Securities Act. Selling securityholders that are
also registered broker-dealers who act in connection with the
sale of the notes and the underlying common stock are
&#147;underwriters&#148; within the meaning of the Securities
Act and any commissions they receive and proceeds of any sale of
the notes or shares of common stock may be deemed to be
underwriting discounts and commissions under the Securities Act.
Neither we nor any selling securityholder can presently estimate
the amount of such compensation. Selling securityholders who are
&#147;underwriters&#148; within the meaning of the Securities
Act are subject to the prospectus delivery requirements of the
Securities Act and to certain statutory liabilities, including
but not limited to, those relating to Sections&nbsp;11, 12 and
17 of the Securities Act and Rule 10b-5 under the Exchange Act.
The selling securityholders have agreed to comply with the
prospectus delivery requirements of the Securities Act, if any.
We have been informed that the selling securityholders
identified by the symbol &#147;#&#148; in the table in the
preceding section &#147;Selling Securityholders&#148; (Bear,
Stearns &#38; Co., Inc., Forest Fulcrum Fund LP, Goldman, Sachs
&#38; Co., KBC Financial Products USA Inc., National Bank of
Canada c/o Putnam Lovell NBF Securities, Inc., Nomura Securities
International, Inc., TD Securities (USA) Inc., Wachovia Capital
Markets LLC and White River Securities L.L.C.) are registered
broker-dealers, and as a result they are underwriters in
connection with the sale of the notes and the underlying common
stock.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">Each of the selling securityholders identified by
the symbol &#147;+&#148; in the table in the preceding section
&#147;Selling Securityholders&#148; (Amaranth L.L.C., BNP Equity
Strategies, SNC, Canyon Capital Arbitrage Master Fund, Ltd.,
Canyon Value Realization Fund (Cayman), Ltd., Canyon Value
Realization Fund, L.P., Canyon Value Realization MAC&nbsp;18,
Ltd., Credit Suisse First Boston Europe Limited, Grace
Convertible Arbitage Fund, Ltd., KBC Financial Products (Cayman
Islands) Ltd., R2 Investments LDC, Royal Bank of Canada, St.
Thomas Trading, Ltd., Sunrise Partners Limited Partnership and
UBS AG London Branch) has informed us that it is an affiliate of
one or more registered broker-dealers. Each of these selling
securityholders has also informed us that:&nbsp;(1)&nbsp;such
selling securityholder purchased its notes in the ordinary
course of business and (2)&nbsp;at the time that the notes were
purchased, the selling securityholder had no agreements or
understandings, directly or indirectly, with any person to
distribute the notes.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">The selling securityholders and any other person
participating in the sale of the notes or the underlying common
stock will be subject to the Exchange Act. The Exchange Act
rules include, without limitation, Regulation&nbsp;M, which may
limit the timing of purchases and sales of any of the notes and
the underlying common stock by the selling securityholders and
any other such person. In addition, Regulation&nbsp;M of the
Exchange Act may restrict the ability of any person engaged in
the distribution of the notes and the underlying common stock to
engage in market-making activities with respect to the
particular notes and the underlying common stock being
distributed for a period of up to five business days before the
commencement of such distribution. This may affect the
marketability of the notes and the underlying common stock and
the ability of any person or entity to engage in market-making
activities with respect to the notes and the underlying common
stock.
</FONT>

<P align="left">
<FONT size="2">We cannot assure you that any selling
securityholder will sell any or all of the notes or the
underlying common stock with this prospectus. Further, we cannot
assure you that any such selling securityholder will not
transfer, devise or gift the notes and the underlying common
stock by other means not described in this prospectus. As a
result, there may be, at any time, securities outstanding that
are subject to restrictions on transferability and resale. In
addition, any securities covered by this prospectus which
qualify for sale pursuant to Rule&nbsp;144 or Rule&nbsp;144A
under the Securities Act may be sold pursuant to Rule&nbsp;144
or Rule&nbsp;144A rather than pursuant to this
</FONT>

<P align="center"><FONT size="2">59
</FONT>
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<DIV align="left">
<FONT size="2">prospectus. Each selling securityholder has
represented that it will not sell any notes or common stock
pursuant to this prospectus except as described in this
prospectus.
</FONT>
</DIV>

<P align="left">
<FONT size="2">At the time a particular offering of the notes or
underlying common stock is made, we will make such supplements
to the prospectus or amendments to the registration statement,
of which this prospectus is a part, as necessary, setting forth
the names of the selling securityholders, the aggregate amount
and type of securities being offered, and, to the extent
required, the terms of the offering, including the name or names
of any underwriters, broker/dealers or agents, any discounts,
commissions and other terms constituting compensation from the
selling securityholders and any discounts, commission or
concessions allowed or reallowed or paid to the broker/dealers.
</FONT>

<P align="left">
<FONT size="2">Based on information provided to us by or on
behalf of the selling securityholders, there are currently no
plans, arrangements or understandings between any selling
securityholder and any underwriter, broker-dealer or agent
regarding the sale of notes and the underlying common stock by
the selling securityholders.
</FONT>

<P align="left">
<FONT size="2">To the extent that the plan of distribution of
the selling securityholders or their transferees, pledgees or
donees varies materially from the plan of distribution described
in this prospectus, an amendment to the registration statement,
of which this prospectus is a part, will be filed to disclose
any material changes to the plan of distribution.
</FONT>

<P align="left">
<FONT size="2">Pursuant to the registration rights agreement,
all expenses of the registration of notes and underlying common
stock will be paid by us, except that the selling
securityholders will pay all underwriting discounts and selling
commissions. The selling securityholders and we have agreed to
indemnify each other and our respective directors, officers and
controlling persons against, and in certain circumstances to
provide contribution with respect to, specific liabilities in
connection with the offer and sale of the notes and the common
stock, including liabilities under the Securities Act.
</FONT>

<P align="left">
<FONT size="2">The registration rights agreement requires that
we use our reasonable best efforts to keep the shelf
registration statement continuously effective until the earliest
of such time as all of the notes and the common stock issuable
upon conversion thereof (i)&nbsp;cease to be outstanding,
(ii)&nbsp;have been sold or otherwise transferred pursuant to an
effective registration statement, (iii)&nbsp;have been sold
pursuant to Rule&nbsp;144 under circumstances in which any
legend borne by the notes or common stock relating to
restrictions on transferability thereof is removed or
(iv)&nbsp;are eligible to be sold pursuant to Rule&nbsp;144(k)
or any successor provision. Notwithstanding the foregoing
obligations, we may, under certain circumstances, postpone or
suspend the filing or the effectiveness of the shelf
registration statement, or any amendments or supplement thereto,
or the sale of the notes or underlying common stock hereunder.
See &#147;Description of Notes&#151; Registration Rights.&#148;
</FONT>

<!-- link1 "LEGAL MATTERS" -->
<DIV align="left"><A NAME="010"></A></DIV>

<P align="center">
<B><FONT size="2">LEGAL MATTERS</FONT></B>

<P align="left">
<FONT size="2">The validity of the securities offered by this
prospectus has been passed upon for us by Gibson,
Dunn&nbsp;&#38; Crutcher LLP, San Francisco, California.
</FONT>

<!-- link1 "EXPERTS" -->
<DIV align="left"><A NAME="011"></A></DIV>

<P align="center">
<B><FONT size="2">EXPERTS</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">The consolidated financial statements and
financial statement schedules of Cadence for its fiscal years
ended January&nbsp;3, 2004 and December&nbsp;28, 2002 appearing
in the Annual Report on Form&nbsp;10-K for the year ended
January&nbsp;3, 2004 have been incorporated herein by reference
in reliance upon the report of KPMG LLP, independent
accountants, incorporated by reference herein, and upon the
authority of said firm as experts in accounting and auditing.
KPMG&#146;s report dated March&nbsp;24, 2004, contains an
explanatory paragraph that states that the consolidated balance
sheet of Cadence as of December&nbsp;28, 2002, and the related
consolidated statements of operations, stockholders&#146; equity
and comprehensive income and cash flows for the year then ended,
have been restated. KPMG&#146;s report also refers to their
audit of the adjustments and revised disclosures that were
applied to restate the 2001 consolidated financial statements as
more fully described in Note&nbsp;2 to the consolidated
financial statements. In addition, KPMG&#146;s report refers to
Cadence&#146;s adoption of SFAS No.&nbsp;142, &#147;Goodwill and
Intangible Assets,&#148; on January&nbsp;1, 2002. However, they
were not engaged to audit, review, or apply any procedures to
the 2001 consolidated financial statements of Cadence, other
than with respect to such adjustments and revised
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center"><FONT size="2">60
</FONT>
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<DIV align="left">
<FONT size="2">disclosures and, accordingly, they do not express
an opinion or any other form of assurance on the 2001
consolidated financial statements taken as a whole.
</FONT>
</DIV>

<P align="left">
<FONT size="2">The consolidated financial statements and the
financial statement schedule of Cadence for its fiscal year
ended December&nbsp;29, 2001 appearing in the Annual Report on
Form&nbsp;10-K for the year ended January&nbsp;3, 2004 and
incorporated by reference herein, have been audited by Arthur
Andersen LLP, independent public accountants, as indicated in
their report with respect thereto, and are included herein in
reliance upon the authority of said firm as experts in giving
said report. Representatives of Arthur Andersen are not
available to provide written consent to the inclusion or
incorporation of Arthur Andersen&#146;s report in this
registration statement and prospectus. Under these
circumstances, Rule&nbsp;437a under the Securities Act permits
us to file this registration statement without a written consent
from Andersen. The absence of such consent may limit recovery by
investors on certain claims. In particular, and without
limitation, investors will not be able to assert claims against
Andersen under Section&nbsp;11 of the Securities Act for any
untrue statement of a material fact contained in the financial
statements audited by Arthur Andersen or any omission of a
material fact required to be stated therein. In addition, the
ability of Andersen to satisfy any claims (including claims
arising from Andersen&#146;s provision of auditing and other
services to us) may be limited as a practical matter due to the
fact that Andersen is no longer a going concern.
</FONT>

<P align="left">
<FONT size="2">In March 2002, Cadence&#146;s board of directors,
upon the recommendation of its audit committee, determined not
to renew the engagement of Arthur Andersen as its independent
auditors and retained KPMG LLP as Cadence&#146;s independent
auditors with respect to the audit of Cadence&#146;s
consolidated financial statements for its fiscal year ending
December&nbsp;28, 2002, incorporated by reference herein.
However, KPMG has not audited the consolidated financial
statements or financial statement schedules that were audited by
Arthur Andersen and incorporated by reference herein.
</FONT>

<P align="center"><FONT size="2">61
</FONT>
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<!-- link1 "WHERE YOU CAN FIND MORE INFORMATION" -->
<DIV align="left"><A NAME="012"></A></DIV>

<P align="center">
<B><FONT size="2">WHERE YOU CAN FIND MORE INFORMATION</FONT></B>

<P align="left">
<FONT size="2">We file annual, quarterly and current reports,
proxy statements and other information with the SEC under the
Securities Exchange Act of 1934, as amended (the &#147;Exchange
Act&#148;). You may read and copy any reports, statements or
other information on file at the SEC&#146;s public reference
room located at 450&nbsp;Fifth Street, NW, Washington,&nbsp;D.C.
20549. Please call the SEC at 1-800-SEC-0330 for further
information on the public reference room. The SEC filings are
also available to the public from commercial document retrieval
services. These filings are also available at the Internet
website maintained by the SEC at <I>http://www.sec.gov</I>. You
can also inspect copies of our public filings at the offices of
the New York Stock Exchange (the &#147;NYSE&#148;). For further
information about obtaining copies of our public filings from
the NYSE, please call (212)&nbsp;656-5060.
</FONT>

<P align="left">
<FONT size="2">We incorporate information into this prospectus
by reference, which means that we disclose important information
to you by referring you to another document filed separately
with the SEC. The information incorporated by reference is
deemed to be part of this prospectus, except to the extent
superseded by information contained herein or by information
contained in documents filed with or furnished to the SEC after
the date of this prospectus. This prospectus incorporates by
reference the documents set forth below that have been
previously filed with the SEC. These documents contain important
information about us and our financial condition.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Annual Report on Form&nbsp;10-K for the year
    ended January&nbsp;3, 2004 (including the portions of our Proxy
    Statement for our 2004 Annual Meeting of Stockholders
    incorporated by reference therein) filed with the SEC on
    April&nbsp;2, 2004;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Current Report on Form&nbsp;8-K filed with the
    SEC on April&nbsp;22, 2004;
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The description of our common stock contained in
    the Registration Statement on Form&nbsp;8-A filed with the SEC
    on August&nbsp;29, 1990; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The description of our preferred share purchase
    rights set forth in Exhibit&nbsp;4.02 to the Annual Report on
    Form&nbsp;10-K405 filed with the SEC on March&nbsp;27, 2000.
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">We also incorporate by reference into this
prospectus additional documents that we may file with the SEC
under Section&nbsp;13(a), 13(c), 14 or 15(d) of the Exchange Act
(i)&nbsp;after the initial filing of the registration statement
that contains this prospectus and prior to effectiveness of such
registration statement, and (ii)&nbsp;from the date of this
prospectus until the selling securityholders have sold all the
notes or underlying common stock; provided, however that, we are
not incorporating any information furnished under either
Item&nbsp;9 or Item&nbsp;12 of any current report on
Form&nbsp;8-K. These documents incorporated herein by reference
may include annual reports on Form&nbsp;10-K, quarterly reports
on Form&nbsp;10-Q and current reports on Form&nbsp;8-K, as well
as proxy statements.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">You may obtain copies of any of these filings
through Cadence as described below, from the SEC or from the
SEC&#146;s Internet website as described above. Documents
incorporated by reference are available without charge,
excluding all exhibits unless an exhibit has been specifically
incorporated by reference into this prospectus, by requesting
them in writing, by telephone or via the Internet at:
</FONT>

<P align="center">
<FONT size="2">Cadence Design Systems, Inc.
</FONT>

<DIV align="center">
<FONT size="2">2655 Seely Avenue, Building 5
</FONT>
</DIV>

<DIV align="center">
<FONT size="2">San Jose, California 95134
</FONT>
</DIV>

<DIV align="center">
<FONT size="2">(408)&nbsp;943-1234
</FONT>
</DIV>

<DIV align="center">
<FONT size="2">Attn: Investor Relations
</FONT>
</DIV>

<DIV align="center">
<FONT size="2">Internet Website: www.cadence.com
</FONT>
</DIV>

<P align="left">
<FONT size="2">THE INFORMATION CONTAINED ON OUR WEBSITE DOES NOT
CONSTITUTE A PART OF THIS PROSPECTUS.
</FONT>

<P align="center"><FONT size="2">62
</FONT>
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<P align="left">


<DIV align="center">
<IMG src="f94300a2f9430001.gif" alt="(CADENCE LOGO)">
</DIV>

<DIV>&nbsp;</DIV>
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<P align="center">
<B><FONT size="2">PART II</FONT></B>

<P align="center">
<B><FONT size="2">INFORMATION NOT REQUIRED IN
PROSPECTUS</FONT></B>

<P align="left">
<B><FONT size="2">Item&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
Expenses of Issuance and Distribution.</FONT></B>

<P align="left">
<FONT size="2">The following table sets forth the estimated fees
and expenses in connection with the issuance and distribution of
the securities registered hereby, all of which will be borne by
the Registrant:
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="82%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Securities and Exchange Commission registration
    fee
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,978</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Printing, duplicating and engraving expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Legal fees and expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounting fees and expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">300,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Miscellaneous
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">463,978</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>

<P align="left">
<FONT size="2">*&nbsp;Estimate
</FONT>

<P align="left">
<B><FONT size="2">Item&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indemnification
of Directors and Officers.</FONT></B>

<P align="left">
<FONT size="2">Section&nbsp;145 of the Delaware General
Corporation Law permits a corporation to indemnify any of its
directors or officers who was or is a party or is threatened to
be made a party to any third party proceeding by reason of the
fact that such person is or was a director or officer of the
corporation against expenses (including attorneys&#146; fees),
judgments, fines and amounts paid in settlement actually and
reasonably incurred by such person in connection with such
action, suit or proceeding, if such person acted in good faith
and in a manner such person reasonably believed to be in or not
opposed to the best interests of the corporation, and, with
respect to any criminal action or proceeding, had no reasonable
cause to believe that such person&#146;s conduct was unlawful.
In a derivative action, i.e.,&nbsp;one by or in the right of a
corporation, the corporation is permitted to indemnify any of
its directors or officers against expenses (including
attorneys&#146; fees) actually and reasonably incurred by such
person in connection with the defense or settlement of such
action or suit if such person acted in good faith and in a
manner such person reasonably believed to be in or not opposed
to the best interests of the corporation, except that no
indemnification shall be made if such person shall have been
adjudged liable to the corporation, unless and only to the
extent that the court in which such action or suit was brought
shall determine upon application that such person is fairly and
reasonably entitled to indemnity for such expenses despite such
adjudication of liability.
</FONT>

<P align="left">
<FONT size="2">Article&nbsp;VII of the Registrant&#146;s
currently effective Certificate of Incorporation eliminates the
personal liability of its directors for monetary damages for
breach of fiduciary duty as a director, except for liability
(i)&nbsp;for any breach of the director&#146;s duty of loyalty
to the corporation or its stockholders, (ii)&nbsp;for acts or
omissions not in good faith or which involve intentional
misconduct or a knowing violation of law, (iii)&nbsp;under
Section&nbsp;174 of the Delaware General Corporation Law or
(iv)&nbsp;for any transaction from which the director derived an
improper personal benefit. In addition, as permitted by
Section&nbsp;145 of the Delaware General Corporation Law, the
Bylaws of the Registrant provide that: (a)&nbsp;the Registrant
is required to indemnify its directors and officers and persons
serving in such capacities in other business entities
(including, for example, subsidiaries of the Registrant) at the
Registrant&#146;s request (such directors, officers and other
persons are hereinafter referred to collectively as,
&#147;Covered Persons&#148;), to the fullest extent permitted by
Delaware law, including those circumstances in which
indemnification would otherwise be discretionary; (b)&nbsp;the
Registrant is required to advance expenses, as incurred to such
Covered Persons in connection with defending a proceeding;
(c)&nbsp;the indemnitee(s) of the Registrant have the right to
bring suit, and to be paid the expenses of prosecuting such suit
if successful, to enforce the rights to indemnification under
the Bylaws or to advancement of expenses under the Bylaws;
(d)&nbsp;the rights conferred in the Bylaws are not exclusive
and the Registrant is authorized to enter into indemnification
agreements with such directors, officers and employees;
(e)&nbsp;the Registrant is required to maintain director and
officer liability insurance to the extent reasonably available;
and (f)&nbsp;the Registrant may not retroactively amend the
Bylaws indemnification provision in a way that is adverse to
such Covered Persons.
</FONT>

<P align="center"><FONT size="2">II-1
</FONT>

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<P align="left">
<FONT size="2">The Registrant has entered into indemnity
agreements with each of its executive officers and directors
that provide the maximum indemnity allowed to officers and
directors by Section&nbsp;145 of the Delaware General
Corporation Law and the Bylaws, as well as certain additional
procedural protections. The Registrant also maintains a limited
amount of director and officer insurance. The indemnification
provision in the Bylaws, and the indemnity agreements entered
into between the Registrant and its officers or directors, may
be sufficiently broad to permit indemnification of the
Registrant&#146;s officers and directors for liability arising
under the Securities Act of 1933, as amended.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;16.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Exhibits.</FONT></B></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">See Exhibit&nbsp;Index attached hereto and
incorporated by reference.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;17.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Undertakings.</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned Registrant hereby undertakes:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="8%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(1)</FONT></TD>
    <TD align="left">
    <FONT size="2">To file, during any period in which offers or
    sales are being made, a post-effective amendment to this
    registration statement:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="4%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(i)</FONT></TD>
    <TD align="left">
    <FONT size="2">To include any prospectus required by
    Section&nbsp;10(a)(3) of the Securities Act;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(ii)</FONT></TD>
    <TD align="left">
    <FONT size="2">To reflect in the prospectus any facts or events
    arising after the effective date of the registration statement
    (or the most recent post-effective amendment thereof) which,
    individually or in the aggregate, represent a fundamental change
    in the information set forth in the registration statement.
    Notwithstanding the foregoing, any increase or decrease in
    volume of securities offered (if the total dollar value of
    securities offered would not exceed that which was registered)
    and any deviation from the low or high end of the estimated
    maximum offering range may be reflected in the form of
    prospectus filed with the Commission pursuant to
    Rule&nbsp;424(b) if, in the aggregate, the changes in volume and
    price represent no more than 20% change in the maximum aggregate
    offering price set forth in the &#147;Calculation of
    Registration Fee&#148; table in the effective registration
    statement;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(iii)</FONT></TD>
    <TD align="left">
    <FONT size="2">To include any material information with respect
    to the plan of distribution not previously disclosed in the
    registration statement or any material change to such
    information in the registration statement;
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <I><FONT size="2">provided, however,</FONT></I><FONT size="2">
    that paragraphs&nbsp;(a)(1)(i) and (a)(1)(ii) do not apply if
    the information required to be included in a post-effective
    amendment by those paragraphs is contained in the periodic
    reports filed with or furnished to the Commission by the
    Registrant pursuant to Section&nbsp;13 or Section&nbsp;15(d) of
    the Securities Exchange Act of 1934 that are incorporated by
    reference in the registration statement.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="8%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(2)</FONT></TD>
    <TD align="left">
    <FONT size="2">That, for the purpose of determining any
    liability under the Securities Act, each such post-effective
    amendment shall be deemed to be a new registration statement
    relating to the securities offered therein, and the offering of
    such securities at that time shall be deemed to be the initial
    <I>bona fide </I>offering thereof.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(3)</FONT></TD>
    <TD align="left">
    <FONT size="2">To remove from registration by means of a
    post-effective amendment any of the securities being registered
    which remain unsold at the termination of the offering.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="8%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(b)</FONT></TD>
    <TD align="left">
    <FONT size="2">The undersigned Registrant hereby undertakes
    that, for purposes of determining any liability under the
    Securities Act of 1933, each filing of the Registrant&#146;s
    annual report pursuant to Section&nbsp;13(a) or
    Section&nbsp;15(d) of the Exchange Act (and, where applicable,
    each filing of an employee benefit plan&#146;s annual report
    pursuant to Section&nbsp;15(d) of the Exchange Act) that is
    incorporated by reference in the registration statement shall be
    deemed to be a new registration statement relating to the
    securities offered therein, and the offering of such securities
    at that time shall be deemed to be the initial <I>bona fide
    </I>offering thereof.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">II-2
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="8%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(c)</FONT></TD>
    <TD align="left">
    <FONT size="2">Insofar as indemnification for liabilities
    arising under the Securities Act may be permitted to directors,
    officers and controlling persons of the Registrant pursuant to
    the foregoing provisions, or otherwise, the Registrant has been
    advised that in the opinion of the Commission such
    indemnification is against public policy as expressed in the
    Securities Act and is, therefore, unenforceable. In the event
    that a claim for indemnification against such liabilities (other
    than the payment by the Registrant of expenses incurred or paid
    by a director, officer or controlling person of the Registrant
    in the successful defense of any action, suit or proceeding) is
    asserted by such director, officer or controlling person in
    connection with the securities being registered, the Registrant
    will, unless in the opinion of its counsel the matter has been
    settled by controlling precedent, submit to a court of
    appropriate jurisdiction the question whether such
    indemnification by it is against public policy as expressed in
    the Securities Act and will be governed by the final
    adjudication of such issue.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">II-3
</FONT>

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<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="013"></A></DIV>

<P align="center">
<B><FONT size="2">SIGNATURES</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">Pursuant to the requirements of the Securities
Act of 1933, the Registrant certifies that it has reasonable
grounds to believe that it meets all of the requirements for
filing on Form&nbsp;S-3 and has duly caused this Pre-Effective
Amendment No.&nbsp;2 to the Registration Statement to be signed
on its behalf by the undersigned, thereunto duly authorized, in
the city of San Jose, state of California, on April&nbsp;28,
2004.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">CADENCE DESIGN SYSTEMS, INC.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="9%"></TD>
    <TD width="51%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">By:</FONT></TD>
    <TD align="left">
    <FONT size="2">&nbsp;*
    </FONT></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <HR size="1" align="left" noshade></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">H. Raymond Bingham
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">President, Chief Executive Officer and Director
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">II-4
</FONT>

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<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<FONT size="2">Pursuant to the requirements of the Securities
Act of 1933, this Pre-Effective Amendment No.&nbsp;2 to the
Registration Statement has been signed below by the following
persons in the capacities and on the dates indicated below.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="32%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="38%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="14%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Signature</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Title</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Date</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    &nbsp;&nbsp;<FONT size="2">*<BR>
    <HR size="1" noshade>H.&nbsp;Raymond Bingham
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">President, Chief Executive Officer and Director
    (Principal Executive Officer)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">April&nbsp;28, 2004
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    &nbsp;&nbsp;<FONT size="2">*<BR>
    <HR size="1" noshade>William Porter
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Senior Vice President, Chief Financial Officer
    (Principal Financial Officer and Principal Accounting Officer)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">April&nbsp;28, 2004
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    &nbsp;&nbsp;<FONT size="2">*<BR>
    <HR size="1" noshade>Donald L. Lucas
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Chairman of the Board of Directors
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">April&nbsp;28, 2004
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    &nbsp;&nbsp;<FONT size="2">*<BR>
    <HR size="1" noshade>Susan L. Bostrom
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">April&nbsp;28, 2004
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
    <HR size="1" noshade><FONT size="2">Sean M. Maloney
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    &nbsp;&nbsp;&nbsp;<FONT size="2">*<BR>
    <HR size="1" noshade>Dr.&nbsp;Alberto Sangiovanni-Vincentelli
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">April&nbsp;28, 2004
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    &nbsp;&nbsp;<FONT size="2">*<BR>
    <HR size="1" noshade>George M. Scalise
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">April&nbsp;28, 2004
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    &nbsp;&nbsp;&nbsp;<FONT size="2">*<BR>
    <HR size="1" noshade>Dr.&nbsp;John B. Shoven
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">April&nbsp;28, 2004
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    &nbsp;&nbsp;<FONT size="2">*<BR>
    <HR size="1" noshade>Roger S. Siboni
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">April&nbsp;28, 2004
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
    <HR size="1" noshade><FONT size="2">Lip-Bu Tan
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <FONT size="2">*By:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">/s/ R.L. SMITH MCKEITHEN<BR>
    <HR size="1" noshade>R.L. Smith McKeithen<BR>
    Attorney-In-Fact
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">April&nbsp;28, 2004
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center"><FONT size="2">II-5
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "EXHIBIT INDEX" -->
<DIV align="left"><A NAME="014"></A></DIV>

<P align="center">
<B><FONT size="2">EXHIBIT INDEX</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="84%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit</FONT></B></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">(a)&nbsp;The Registrant&#146;s Certificate of
    Ownership and Merger as filed with the Secretary of State of the
    State of Delaware on June&nbsp;1, 1988 (Incorporated by
    reference to Exhibit&nbsp;3.02(c) to the Registrant&#146;s
    Form&nbsp;S-1 Registration Statement (No.&nbsp;33-23107) filed
    on July&nbsp;18, 1988).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">(b)&nbsp;The Registrant&#146;s Certificate of
    Designation of Series&nbsp;A Junior Participating Preferred
    Stock, as amended on February&nbsp;1, 2000, as filed with the
    Secretary of State of the State of Delaware on June&nbsp;8, 1989
    (Incorporated by reference to Exhibit&nbsp;3A to the
    Registrant&#146;s Current Report on Form&nbsp;8-K
    (No.&nbsp;0-15867) filed on June&nbsp;12, 1989 and amended by
    Exhibit&nbsp;4.02 to the Registrant&#146;s Form&nbsp;10-K for
    the fiscal year ended January&nbsp;1, 2000 (the &#147;1999
    Form&nbsp;10-K&#148;)).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">(c)&nbsp;The Registrant&#146;s Certificate of
    Designation of Series&nbsp;A Convertible Preferred Stock as
    filed with the Secretary of State of the State of Delaware on
    December&nbsp;30, 1991 (Incorporated by reference to
    Exhibit&nbsp;3.01(f) to the Registrant&#146;s Form&nbsp;10-K for
    the fiscal year ended December&nbsp;31, 1991).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">(d) The Registrant&#146;s Certificate of
    Amendment of Certificate of Incorporation as filed with the
    Secretary of State of the State of Delaware on May&nbsp;13, 1998
    (Incorporated by reference to Exhibit&nbsp;3.01(i) to the
    Registrant&#146;s Form&nbsp;10-Q for the quarter ended
    July&nbsp;4, 1998 (the &#147;1998 Second Quarter
    Form&nbsp;10-Q&#148;)).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">(e)&nbsp;The Registrant&#146;s Restated
    Certificate of Incorporation as filed with the Secretary of
    State of the State of Delaware on May&nbsp;13, 1998
    (Incorporated by reference to Exhibit&nbsp;3.01(j) to the 1998
    Second Quarter Form&nbsp;10-Q).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">The Registrant&#146;s Amended and Restated
    Bylaws, as amended and restated on May&nbsp;7, 2003
    (Incorporated by reference to Exhibit&nbsp;3.02 to the
    Registrant&#146;s Form&nbsp;10-Q for the quarter ended
    March&nbsp;29, 2003)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Indenture, dated as of August&nbsp;15, 2003, by
    and between the Registrant and J.P.&nbsp;Morgan Trust Company,
    National Association, as Trustee (Incorporated by reference to
    Exhibit&nbsp;4.1 to the Registrant&#146;s Form&nbsp;10-Q for the
    quarter ended September&nbsp;27, 2003 (the &#147;2003 Third
    Quarter Form&nbsp;10-Q&#148;)).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Zero Coupon Zero Yield Senior Convertible
    Note due 2023 (Included in Exhibit&nbsp;4.3).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Specimen Certificate of the Registrant&#146;s
    Common Stock (Incorporated by reference to Exhibit&nbsp;4.01 to
    the Registrant&#146;s Form&nbsp;S-4 Registration Statement
    (No.&nbsp;33-43400) filed on October&nbsp;17, 1991).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Rights Agreement, dated as
    of February&nbsp;1, 2000, between the Registrant and ChaseMellon
    Shareholder Services, L.L.C., which includes as exhibits thereto
    the Certificate of Designations for the Series&nbsp;A Junior
    Participating Preferred Stock, the form of Right Certificate and
    the Summary of Rights to Purchase Shares of Preferred Stock
    (Incorporated by reference to Exhibit&nbsp;4.02 to the 1999
    Form&nbsp;10-K).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Registration Rights Agreement, dated
    August&nbsp;15, 2003, by and among the Registrant and
    J.P.&nbsp;Morgan Securities, Inc. and SG&nbsp;Cowen Securities
    Corporation as Initial Purchasers of the Zero Coupon Zero Yield
    Senior Convertible Notes due 2023 (Incorporated by reference to
    Exhibit&nbsp;4.2 of the Registrant&#146;s 2003 Third
    Quarter&nbsp;10-Q).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Opinion of Gibson, Dunn&nbsp;&#38; Crutcher LLP.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">8</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Tax Opinion of Gibson, Dunn&nbsp;&#38; Crutcher
    LLP.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">12</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Computation of Ratio of Earnings to Fixed Charges.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of Gibson, Dunn&nbsp;&#38; Crutcher LLP
    (Included in Exhibit&nbsp;5.1).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Independent Auditors&#146; Consent.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">24</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Powers of Attorney.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">25</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form&nbsp;T-1 Statement of Eligibility of Trustee
    of Indenture under the Trust Indenture Act of 1939, as amended,
    of J.P.&nbsp;Morgan Trust Company, National Association, as
    Trustee.
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Previously filed
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">II-6
</FONT>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12.1
<SEQUENCE>2
<FILENAME>f94300a2exv12w1.txt
<DESCRIPTION>EXHIBIT 12.1
<TEXT>
<PAGE>
                                                                               .
                                                                               .
                                                                               .
                                                                    Exhibit 12.1


CADENCE DESIGN SYSTEMS, INC
RATIO OF EARNINGS TO FIXED CHARGES
$ IN THOUSANDS
<TABLE>
<CAPTION>
                                                           RESTATED
                                            January 3,    December 28,   December 29,  December 30,   January 2,
                                              2004            2002           2001         2000          2000
                                            ---------      ---------      ---------      --------     ---------
<S>                                         <C>            <C>            <C>            <C>          <C>
EARNINGS
Income (loss) before income taxes           $ (30,565)     $ 144,020      $ 242,148      $ 67,996     $ (11,380)

Minority interest                                  --             --          1,900           600           100
Earnings (losses) in equity interests         (10,875)        (9,395)        (1,244)        1,100           100
Fixed charges                                  12,783         10,570         11,165         9,798        11,633
                                            ---------      ---------      ---------      --------     ---------
NET 'EARNINGS' AS DEFINED                   $  (6,907)     $ 163,985      $ 252,657      $ 76,094     $      53
                                            ---------      ---------      ---------      --------     ---------

FIXED CHARGES
Total operating lease expenses              $  23,343      $  23,300      $  25,600      $ 22,200     $  25,000

Interest component of operating lease
expense (deemed to be 1/3 of op. lease
expense)                                        7,781          7,767          8,533         7,400         8,333
Interest expense                                5,002          2,803          2,632         2,398         3,300
                                            ---------      ---------      ---------      --------     ---------
TOTAL FIXED CHARGES                         $  12,783      $  10,570      $  11,165      $  9,798     $  11,633
                                            ---------      ---------      ---------      --------     ---------

EARNINGS TO FIXED CHARGES RATIO                  (0.5)          15.5           22.6           7.8           0.0

EARNINGS EXCESS (DEFICIENCY)                $ (19,690)     $ 153,415      $ 241,492      $ 66,296     $ (11,580)
</TABLE>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.2
<SEQUENCE>3
<FILENAME>f94300a2exv23w2.htm
<DESCRIPTION>EXHIBIT 23.2
<TEXT>
<HTML>
<HEAD>
<TITLE>exv23w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="right" style="font-size: 10pt"><B>Exhibit&nbsp;23.2</B>



<P align="center" style="font-size: 10pt"><B>Independent Auditors&#146; Consent</B>



<P align="left" style="font-size: 10pt">The Board of Directors<BR>
Cadence Design System Inc.:


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We consent to the incorporation by reference in the Pre-effective Amendment No.
2 to the Registration Statement on Form S-3 of Cadence Design Systems, Inc., to
be filed on or about April&nbsp;23, 2004 of our report dated March&nbsp;24, 2004,
relating to the consolidated balance sheets of Cadence Design Systems, Inc.,
and subsidiaries as of January&nbsp;3, 2004 and December&nbsp;28, 2002 and the
consolidated statements of operations, stockholders&#146; equity and comprehensive
income and cash flows for the years then ended, and the related Fiscal 2003 and
Fiscal 2002 financial statement schedules, which report appears in the January
3, 2004 annual report on Form 10-K of Cadence Design Systems, Inc.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Our report dated March&nbsp;24, 2004, contains an explanatory paragraph that states
that the Company&#146;s consolidated balance sheet as of December&nbsp;28, 2002, and the
related consolidated statements of operations, stockholders&#146; equity and
comprehensive income and cash flows for the year then ended, have been
restated.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Our report also refers to our audit of the adjustments and revised disclosures
that were applied to restate the Company&#146;s Fiscal 2001 consolidated financial
statements as more fully described in Note 2 to the consolidated financial
statements. However, we were not engaged to audit, review, or apply any
procedures to the Fiscal 2001 consolidated financial statements of Cadence
Design Systems, Inc., other than with respect to such adjustments and revised
disclosures.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In addition, our report refers to the Company&#146;s adoption of Statement of
Financial Accounting Standards No.&nbsp;142., <I>Goodwill and Other Intangible Assets</I>
on January&nbsp;1, 2002.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We also consent to the reference to our firm under the heading &#147;Experts&#148; in the
Prospectus.


<P align="left" style="font-size: 10pt">/s/ KPMG LLP



<P align="left" style="font-size: 10pt">Mountain View, California<BR>
April&nbsp;23, 2004




<P align="center" style="font-size: 10pt">
</DIV>


</BODY>
</HTML>

</TEXT>
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