<SUBMISSION>
<ACCESSION-NUMBER>0000950129-04-006937
<TYPE>424B3
<PUBLIC-DOCUMENT-COUNT>1
<FILING-DATE>20040909
<DATE-OF-FILING-DATE-CHANGE>20040909
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>QUANTA SERVICES INC
<CIK>0001050915
<ASSIGNED-SIC>1731
<IRS-NUMBER>742851603
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>424B3
<ACT>33
<FILE-NUMBER>333-111738
<FILM-NUMBER>041023248
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1360 POST OAK BLVD
<STREET2>SUITE 2100
<CITY>HOUSTON
<STATE>TX
<ZIP>77056
<PHONE>7133506000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1360 POST OAK BLVD SUITE 2100
<CITY>HOUSTON
<STATE>TX
<ZIP>77056
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>h18326e424b3.htm
<DESCRIPTION>QUANTA SERVICES, INC. - REG. NO. 333-111738
<TEXT>
<HTML>
<HEAD>
<TITLE>e424b3</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="right" style="font-size: 10pt">Filed pursuant to Rule&nbsp;424(b)(3)<BR>
Registration No.&nbsp;333-111738



<P align="left" style="font-size: 10pt"><B>PROSPECTUS</B>


<P align="center" style="font-size: 10pt"><B>$270,000,000</B>



<P align="center" style="font-size: 10pt"><B>QUANTA SERVICES, INC.</B>



<P align="center" style="font-size: 10pt"><B>4.50% CONVERTIBLE SUBORDINATED DEBENTURES DUE 2023</B>



<P align="center" style="font-size: 10pt"><B>AND</B>



<P align="center" style="font-size: 10pt"><B>THE COMMON STOCK ISSUABLE UPON CONVERSION OR REPURCHASE OF THE DEBENTURES</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;17, 2003 and October&nbsp;23, 2003, we issued and sold $270,000,000
aggregate principal amount of 4.50% convertible subordinated debentures due
2023 in private placements in reliance on an exemption from registration under
the Securities Act of 1933, as amended, or the Securities Act. The initial
purchasers of the debentures in these offerings resold the debentures in
offerings in reliance on an exemption from registration under Rule&nbsp;144A of the
Securities Act. The selling security holders may use this prospectus to resell
their debentures and the common stock issuable upon conversion or repurchase of
their debentures.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The debentures bear interest at the rate of 4.50% per annum. Interest on
the debentures is payable on April 1 and October 1 of each year, beginning on
April&nbsp;1, 2004.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders may convert the debentures into shares of our common stock at a
conversion rate of 89.7989 shares per $1,000 principal amount of debentures,
subject to adjustment upon certain events, under the following circumstances:
(1)&nbsp;during any fiscal quarter commencing after December&nbsp;31, 2003 if the last
reported sale price of our common stock is greater than or equal to 120% of the
conversion price for at least 20 trading days in the period of 30 consecutive
trading days ending on the first trading day of such fiscal quarter; (2)&nbsp;if we
call the debentures for redemption; (3)&nbsp;upon the occurrence of certain
corporate transactions; or (4)&nbsp;during the five business day period after any
five consecutive trading day period in which the trading price per debenture
for each day of that period was less than 98% of the product of the last
reported sale price of our common stock and the conversion rate. Upon
conversion, Quanta will have the right to deliver, in lieu of common stock,
cash or a combination of cash and common stock in the amounts described in this
prospectus.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The debentures will mature on October&nbsp;1, 2023, unless earlier converted,
redeemed or repurchased by us. We may redeem some or all of the debentures in
cash, at any time and from time to time, on or after October&nbsp;8, 2008 at a
redemption price equal to 100% of the principal amount of the debentures to be
redeemed, plus accrued and unpaid interest to but excluding the redemption
date. You may require us to repurchase some or all of your debentures at a
repurchase price equal to 100% of the principal amount of the debentures plus
accrued and unpaid interest to but excluding the applicable repurchase date on
October&nbsp;1, 2008, October&nbsp;1, 2013 or October&nbsp;1, 2018 or at any time prior to
their maturity following a fundamental change as described in this prospectus.
We will pay cash for all debentures that holders require us to repurchase on
October&nbsp;1, 2008. For any debentures that holders require us to repurchase on
October&nbsp;1, 2013 or October&nbsp;1, 2018 or following a fundamental change, we may,
at our option, pay the repurchase price in cash or shares of our common stock
or any combination thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The debentures rank junior in right of payment to all of our existing and
future senior indebtedness. The debentures also effectively rank junior to our
subsidiaries&#146; existing and future indebtedness and other liabilities, including
trade payables.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The debentures are not listed on any securities exchange. The debentures
are designated for trading in the PORTAL market. Our common stock is listed on
the New York Stock Exchange under the symbol &#147;PWR.&#148; The last reported sale
price of our common stock on the New York Stock Exchange on September&nbsp;8, 2004
was $6.66 per share.


<P align="center" style="font-size: 10pt"><B>THIS INVESTMENT INVOLVES RISKS. SEE &#147;RISK FACTORS&#148; BEGINNING ON PAGE 5.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined if
this prospectus is truthful or complete. Any representation to the contrary is
a criminal offense.


<P align="center" style="font-size: 10pt">The date of this prospectus is September&nbsp;8, 2004



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>TABLE OF CONTENTS</B>



<P align="center" style="font-size: 10pt"><B>PAGE</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="92%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#101">Special Note Regarding Forward-Looking Statements</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">i</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#102">Summary</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#103">Risk Factors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#104">Use of Proceeds</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#105">Price Range of Common Stock</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#106">Dividend Policy</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#107">Description of Other Indebtedness</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#108">Description of Debentures</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#109">Description of Capital Stock</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#110">Material U.S. Federal Income Tax Considerations</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#111">Selling Security Holders</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#112">Plan of Distribution</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#113">Legal Matters</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#114">Experts</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#115">Where You Can Find More Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#116">Incorporation of Certain Documents by Reference</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In making your investment decision, you should rely only on the
information contained or incorporated by reference in this prospectus. We have
not authorized anyone to provide you with any other information. If you receive
any other information, you should not rely on it.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling security holders are offering to sell the debentures and the
common stock issuable upon conversion of the debentures only in places where
offers and sales are permitted.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should not assume that the information contained or incorporated by
reference in this prospectus is accurate as of any date other than the date on
the front cover of this prospectus.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In this prospectus, &#147;Quanta,&#148; &#147;we,&#148; &#147;us&#148; and &#147;our&#148; refer to Quanta
Services, Inc. and its subsidiaries, and &#147;initial purchasers&#148; refers to Banc of
America Securities LLC and J.P. Morgan Securities Inc., in each case except
where the context otherwise requires or as otherwise indicated. References in
this prospectus to our common stock include rights associated with our common
stock pursuant to our stockholder rights plan.

<DIV align="left">
<A name="101"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus includes statements reflecting assumptions, expectations,
projections, intentions or beliefs about future events that are intended as
&#147;forward-looking statements&#148; under the Private Securities Litigation Reform Act
of 1995. You can identify these statements by the fact that they do not relate
strictly to historical or current facts. They use words such as &#147;anticipate,&#148;
&#147;estimate,&#148; &#147;project,&#148; &#147;forecast,&#148; &#147;may,&#148; &#147;will,&#148; &#147;should,&#148; &#147;could,&#148; &#147;expect,&#148;
&#147;believe&#148; and other words of similar meaning. In particular, these include, but
are not limited to, statements relating to the following:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>projected operating or financial results;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expectations regarding capital expenditures;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the effects of competition in our markets;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the duration and extent of the current economic downturn; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to achieve cost savings.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any or all of our forward-looking statements may turn out to be wrong.
They can be affected by inaccurate assumptions and by known or unknown risks
and uncertainties, including the following:


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>quarterly variations in our operating results due to seasonality and adverse weather conditions;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>material adverse changes in economic conditions in markets served by us or by our customers;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our dependence on fixed price contracts;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the inability of our customers to pay for services following a bankruptcy or other financial difficulty;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>potential liabilities relating to occupational health and safety matters;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>rapid technological and structural changes that could reduce the demand for the services we provide;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to effectively compete for market share;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to obtain performance bonds;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>cancellation provisions within our contracts;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>liabilities for claims that are self-insured;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>retention of key personnel and qualified employees;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the impact of our unionized workforce on our operations and our ability to complete future acquisitions;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our growth outpacing our infrastructure;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>potential exposure to environmental liabilities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the cost of borrowing, availability of credit, debt covenant
compliance and other factors affecting our financing activities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to generate internal growth;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the adverse impact of goodwill impairments;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>replacement of our contracts as they are completed or expire;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to effectively integrate the operations of our companies;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>beliefs and assumptions about the collectibility of receivables;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>beliefs or assumptions about the outlook for markets we serve; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the other risks and uncertainties as are described under &#147;Risk
Factors&#148; and as may be detailed from time to time in our public
filings with the Securities and Exchange Commission (SEC).</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Many of these factors will be important in determining our actual future
results. Consequently, no forward-looking statement can be guaranteed. Our
actual future results may vary materially from those expressed or implied in
any forward-looking statements.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of our forward-looking statements, whether written or oral, are
expressly qualified by these cautionary statements and any other cautionary
statements that may accompany such forward-looking statements. In addition, we
disclaim any obligation to update any forward-looking statements to reflect
events or circumstances after the date of this prospectus.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="102"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>SUMMARY</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The following summary provides an overview of selected information about
us. This summary is qualified in its entirety by the more detailed information,
including our consolidated financial statements and related notes thereto,
included or incorporated by reference in this prospectus. You should carefully
consider the entire prospectus, including the &#147;Risk Factors&#148; section, before
making an investment decision.</I>


<P align="center" style="font-size: 10pt"><B>The Company</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a leading provider of specialized contracting services, offering
end-to-end network solutions to the electric power, gas, telecommunications,
and cable television industries. We have principal offices in 35 states and
provide services nationwide, giving us the presence and capability to quickly,
reliably and effectively complete projects throughout the United States. For
the year ended December&nbsp;31, 2003 and the six months ended June&nbsp;30, 2004, our
end markets provided the following percentages of our revenues:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Electric power and natural gas (60% and 62%)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Telecommunications (15% and 13%)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Cable television operators (7% and 5%)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Ancillary services, including industrial, commercial, and government customers (18% and 20%)</TD>
</TR>

</TABLE>


<P align="left" style="margin-left:4%; font-size: 10pt">Our primary service capabilities include the following:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Repair</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Maintenance</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Installation</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Emergency Response</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Design</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Specialty Services</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within the electric power and natural gas end markets, services we provide
include: installation, repair and maintenance of electric power distribution
networks, electric transmission lines, substation facilities and natural gas
distribution systems, and storm damage restoration work. Within the
telecommunications and cable television end markets, services we provide
include: fiber optic, copper, and coaxial cable installation and maintenance
for video, data and voice transmission; design, construction and maintenance of
DSL networks and switching systems; engineering and erection of wireless
telecommunications towers; and residential installation and customer connects
for cable television, telephone, and Internet services.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We were founded in 1997 and began as a group of infrastructure services
companies led by our Chief Executive Officer, John Colson. We completed our
initial public offering in 1998 and since that time have expanded our
geographic coverage and service capabilities through acquisitions and internal
growth. Our operating structure allows for the flexibility of multiple
operating units with the benefit of an organization with scale. Our units are
managed on a decentralized basis, with units operated as individual profit
centers. To leverage our scale and geographic reach, our operating units have
incentives to cross-sell additional services of other operating units to
customers. In addition, our business development group promotes and markets our
services for prospective large national accounts and projects that require
services from multiple business units.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quanta was incorporated in 1997 as a Delaware corporation and its common
stock is traded on the New York Stock Exchange under the symbol &#147;PWR.&#148; Our
principal executive offices are located at 1360 Post Oak Boulevard, Suite&nbsp;2100,
Houston, Texas 77056, and our telephone number is (713)&nbsp;629-7600. We maintain a
website at www.quantaservices.com. Information on our website does not
constitute a part of this prospectus.


<P align="center" style="font-size: 10pt">1
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>The Offering</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following summary contains basic information about the debentures and
is not intended to be complete. It does not contain all the information that is
important to you. For a more complete understanding of the debentures, please
refer to the section of this prospectus entitled &#147;Description of Debentures.&#148;
For purposes of the description of the debentures included in this prospectus,
references to &#147;the company,&#148; &#147;Quanta,&#148; &#147;we,&#148; &#147;us&#148; and &#147;our&#148; refer only to
Quanta Services, Inc. and do not include our subsidiaries.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Securities Offered</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>$270,000,000 principal amount of 4.50% Convertible Subordinated
Debentures due 2023</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Maturity Date</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>October&nbsp;1, 2023, unless earlier converted, redeemed or repurchased.</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Ranking</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>The debentures rank junior in right of payment to all of our
existing and future senior indebtedness and equally in right of
payment with all of our subordinated indebtedness. The debentures
rank equally in right of payment with our $172.5 in aggregate
principal amount of 4% convertible subordinated notes due 2007.
Any amounts borrowed by us under our new credit facility will
constitute senior indebtedness. The debentures are also
effectively subordinated to the liabilities of our subsidiaries,
and, as of June&nbsp;30, 2004, our subsidiaries had approximately $3.2
million of indebtedness.</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Interest</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>4.50% per annum on the principal amount, payable semiannually in
arrears on April 1 and October 1 of each year, beginning on April
1, 2004.</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Conversion Rights</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>You may convert the debentures into shares of our common stock at
a conversion rate of 89.7989 shares per $1,000 principal amount of
debentures (equal to a conversion price of approximately $11.14
per share), subject to adjustment, only under the following
circumstances:</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>-</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><B>during any fiscal quarter commencing after December&nbsp;31, 2003 if
the last reported sale price of our common stock is greater than
or equal to 120% of the conversion price for at least 20 trading
days in the period of 30 consecutive trading days ending on the
first trading day of such fiscal quarter;</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>-</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><B>if the debentures have been called for redemption by us;</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>-</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><B>upon the occurrence of specified corporate transactions
described under &#147;Description of Debentures &#151; Conversion Upon
Specified Corporate Transactions&#148;; or</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>-</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><B>during the five business day period after any five consecutive
trading day period in which the trading price per debenture for
each day of that period was less than 98% of the product of the
last reported sale price of our common stock and the number of
shares issuable upon conversion of $1,000 principal amount of the
debentures.</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>You will not receive any cash payment or additional shares
representing accrued and unpaid interest upon conversion of a
debenture, except in limited circumstances. Instead, interest
will be deemed paid by the common stock issued to you upon
conversion. Debentures called for redemption may be surrendered
for conversion prior to the close of business on the second
business day immediately preceding the redemption date.</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>


<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>Upon a surrender of
your debentures for conversion, we will have the right to deliver, in
lieu of shares of our common stock, cash or a combination of cash
and shares of common stock in amounts described in this prospectus
under &#147;Description of Debentures &#151; Conversion Rights &#151;
Payment upon Conversion.&#148;
</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">2
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Sinking Fund</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><B>None.</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Optional Redemption</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><B>Prior to October&nbsp;8, 2008, the debentures will not be redeemable.
On or after October&nbsp;8, 2008, we may redeem for cash some or all of
the debentures, at any time and from time to time, upon at least
30&nbsp;days&#146; notice for a price equal to 100% of the principal amount
of the debentures to be redeemed, plus any accrued and unpaid
interest to but excluding the redemption date.</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Repurchase of
Debentures by Us at
the Option of the
Holder</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><B>You may require us to repurchase some or all of your debentures on
October&nbsp;1, 2008, October&nbsp;1, 2013 or October&nbsp;1, 2018 at a
repurchase price equal to 100% of the principal amount of the
debentures being repurchased, plus any accrued and unpaid interest
to but excluding the applicable repurchase date. We will pay cash
for all debentures that holders require us to repurchase on
October&nbsp;1, 2008. For any debentures that holders require us to
repurchase on October&nbsp;1, 2013 or October&nbsp;1, 2018, we may, at our
option, pay the repurchase price in cash or shares of our common
stock (valued using the method set forth in &#147;Description of
Debentures &#151; Repurchase of Debentures by Us at the Option of the
Holder&#148;) or a combination of cash and shares of our common stock,
provided that we will pay any accrued and unpaid interest in cash.</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Fundamental Change</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><B>If we undergo a fundamental change (as defined in &#147;Description of
Debentures &#151; Repurchase of Debentures by Us at the Option of the
Holder upon a Fundamental Change&#148;) prior to maturity of the
debentures, you will have the right, at your option, to require us
to repurchase some or all of your debentures at a repurchase price
equal to 100% of the principal amount of the debentures being
repurchased, plus any accrued and unpaid interest to but excluding
the applicable repurchase date. We may, at our option, pay the
repurchase price for such debentures in cash or shares of our
common stock (valued using the method set forth in &#147;Description of
Debentures &#151; Repurchase of Debentures by Us at the Option of the
Holder&#148;) or a combination of cash and shares of our common stock,
provided that we will pay any accrued and unpaid interest in cash.</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Use of Proceeds</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><B>We will not receive any of the proceeds of the sale by the
selling security holders of the debentures or the common stock
issuable upon conversion or repurchase of the debentures.</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Book-Entry Form</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><B>The debentures were issued in book-entry form and are represented
by global certificates deposited with, or on behalf of, The
Depository Trust Company (DTC)&nbsp;and registered in the name of a
nominee of DTC. Beneficial interests in any of the debentures will
be shown on, and transfers will be effected only through, records
maintained by DTC or its nominee, and any such interests may not
be exchanged for certificated securities except in limited
circumstances.</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Trading</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><B>Since their initial issuances the debentures have been eligible
for trading on the PORTAL market. However, debentures sold
pursuant to this prospectus are not expected to remain eligible
for trading on the PORTAL market. We do not intend to list the
debentures on any national securities exchange or in any automated
quotation system.</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><B>Our common stock is listed on the New York Stock Exchange under
the symbol &#147;PWR.&#148;</B></TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">3
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Limited Vote Common Stock</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><B>As of September&nbsp;1, 2004, there were
approximately 1,051,067 shares of limited vote
common stock outstanding. Our limited vote
common stock is not listed on any securities
exchange or included in any automated quotation
system. Each share of limited vote common stock
will automatically convert into common stock on
a share-for-share basis immediately upon a sale
of such shares.</B></TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><B>Ratio of Earnings to Fixed Charges</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Six Months Ended</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>Year Ended December 31,</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>June 30, 2004</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>1999</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2000</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2001</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2002</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Ratio of earnings
to fixed charges(a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(b</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(b</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(b</TD>
    <TD nowrap>)</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For purposes of computing the ratios of earnings to fixed charges:</TD>
</TR>

</TABLE>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;earnings&#148; consists of income before provision for
income taxes, plus fixed charges (excluding capitalized
interest); and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;fixed charges&#148; consists of interest expensed and
capitalized, amortization of debt discount and expense relating
to indebtedness and the portion of rental expense representative
of the interest factor attributable to leases for rental
property.</TD>
</TR>

</TABLE>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Due to losses for the years ended December&nbsp;31, 2002 and 2003,
and the six months ended June&nbsp;30, 2004, the ratio of earnings to
fixed charges for such periods was less than 1:1. In order to achieve
a coverage ratio of 1:1, we needed additional earnings of $193.8
million for the year ended December&nbsp;31, 2002, $53.1&nbsp;million for the
year ended December&nbsp;31, 2003, and $22.9&nbsp;million for the six months
ended June&nbsp;30, 2004.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">4
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="103"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>RISK FACTORS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should consider the following risk factors, in addition to the other
information presented in this prospectus and the documents incorporated by
reference in this prospectus, in evaluating us, our business and an investment
in the debentures and common stock issuable upon conversion of the debentures.
Any of the following risks, as well as other risks and uncertainties, could
seriously harm our business and financial results and cause the value of the
debentures and common stock issuable upon conversion of the debentures to
decline, which in turn could cause you to lose all or part of your investment.


<P align="center" style="font-size: 10pt"><B>Risks Relating to Our Business</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our operating results may vary significantly from quarter to quarter</I></B><I>. </I>We
experience lower gross and operating margins during winter months due to lower
demand for our services and more difficult operating conditions. Additionally,
our quarterly results may also be materially and adversely affected by:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the timing and volume of work under new agreements;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>regional or general economic conditions;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the budgetary spending patterns of customers;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>payment risk associated with the financial condition of customers;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>variations in the margins of projects performed during any particular quarter;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the termination of existing agreements;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>costs we incur to support growth internally or through acquisitions or otherwise;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>losses experienced in our operations not otherwise covered by insurance;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a change in the demand for our services caused by severe weather conditions;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a change in the mix of our customers, contracts and business;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increases in construction and design costs;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in bonding and lien requirements applicable to existing and new agreements;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the timing of acquisitions; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the timing and magnitude of acquisition integration costs.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accordingly, our operating results in any particular quarter may not be
indicative of the results that you can expect for any other quarter or for the
entire year.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>An economic downturn may lead to less demand for our services</I></B><I>. </I>If the
general level of economic activity remains slow or deteriorates further, our
customers may delay or cancel new projects. The telecommunications and utility
markets experienced substantial change during 2002 and 2003 as evidenced by an
increased number of bankruptcies in the telecommunications market, continued
devaluation of many of our customers&#146; debt and equity securities and pricing
pressures resulting from challenges faced by major industry participants. These
factors have contributed to the delay and cancellation of projects and
reduction of capital spending that have impacted our operations and ability to
grow at historical levels. A number of other factors, including financing
conditions for and potential bankruptcies in the industries we serve, could
adversely affect our customers and their ability or willingness to fund capital
expenditures in the future or pay for past services. In addition,
consolidation, competition or capital constraints in the electric power, gas,
telecommunications or cable television industries may result in reduced
spending by, or the loss of, one or more of our customers.


<P align="center" style="font-size: 10pt">5
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our dependence upon fixed price contracts could adversely affect our
business</I></B><I>. </I>We currently generate, and expect to continue to generate, a portion
of our revenues under fixed price contracts. We must estimate the costs of
completing a particular project to bid for fixed price contracts. The cost of
labor and materials, however, may vary from the costs we originally estimated.
These variations, along with other risks inherent in performing fixed price
contracts, may cause actual revenue and gross profits for a project to differ
from those we originally estimated and could result in reduced profitability or
losses on projects. Depending upon the size of a particular project, variations
from the estimated contract costs can have a significant impact on our
operating results for any fiscal quarter or year.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We extend credit to customers for purchases of our services, and in the
past we have had, and in the future we may have, difficulty collecting
receivables from major customers that have filed bankruptcy or are otherwise
experiencing financial difficulties. </I></B>We grant credit, generally without
collateral, to our customers, which include electric power and gas companies,
telecommunications and cable television system operators, governmental
entities, general contractors, and builders, owners and managers of commercial
and industrial properties located primarily in the United States. Consequently,
we are subject to potential credit risk related to changes in business and
economic factors throughout the United States. Our customers in the
telecommunications business have experienced significant financial difficulties
and in several instances have filed for bankruptcy. A number of our utility
customers are also experiencing business challenges in the current business
climate. If any of our major customers file for bankruptcy or continue to
experience financial difficulties, or if anticipated recoveries relating to
receivables in existing bankruptcies or other workout situations fail to
materialize, we could experience reduced cash flows and losses in excess of
current allowances provided. In addition, material changes in any of our
customer&#146;s revenues or cash flows could affect our ability to collect amounts
due from them. As of June&nbsp;30, 2004, total current and noncurrent accounts and
notes receivable were $363.9&nbsp;million, net of allowances for doubtful accounts
of $60.5&nbsp;million.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our industry is highly competitive</I></B><I>. </I>Our industry is served by numerous
small, owner-operated private companies, a few public companies and several
large regional companies. In addition, relatively few barriers prevent entry
into some of our industries. As a result, any organization that has adequate
financial resources and access to technical expertise may become one of our
competitors. Competition in the industry depends on a number of factors,
including price. Certain of our competitors may have lower overhead cost
structures and may, therefore, be able to provide their services at lower rates
than we are able to provide. In addition, some of our competitors have greater
resources than we do. We cannot be certain that our competitors will not
develop the expertise, experience and resources to provide services that are
superior in both price and quality to our services. Similarly, we cannot be
certain that we will be able to maintain or enhance our competitive position
within our industry or maintain a customer base at current levels. We may also
face competition from the in-house service organizations of our existing or
prospective customers. Electric power, gas, telecommunications and cable
television service providers usually employ personnel who perform some of the
same types of services we do. We cannot be certain that our existing or
prospective customers will continue to outsource services in the future.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We may incur liabilities relating to occupational health and safety
matters</I></B><I>. </I>Our operations are subject to extensive laws and regulations relating
to the maintenance of safe conditions in the workplace. While we have invested,
and will continue to invest, substantial resources in our occupational health
and safety programs, our industry involves a high degree of operational risk
and there can be no assurance that we will avoid significant liability
exposure. Although we have taken what we believe are appropriate precautions,
we have suffered fatalities in the past and may suffer additional fatalities in
the future. Claims for damages to persons, including claims for bodily injury
or loss of life, could result in substantial costs and liabilities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>The industries we serve are subject to rapid technological and structural
changes that could reduce the demand for the services we provide</I></B><I>. </I>The electric
power, gas, telecommunications and cable television industries are undergoing
rapid change as a result of technological advances that could, in certain
cases, reduce the demand for our services or otherwise negatively impact our
business. New or developing technologies could displace the wireline systems
used for voice, video and data transmissions, and improvements in existing
technology may allow telecommunications and cable television companies to
significantly improve their networks without physically upgrading them.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Failure to obtain or maintain necessary performance bonds could adversely
affect our business</I></B><I>. </I>Contracts in the industries we serve often require
performance bonds or other means of financial assurance to secure contractual
performance. During 2002 and 2003, the market for performance bonds tightened
significantly. If we are unable to obtain performance bonds or letters of
credit in sufficient amounts or on acceptable terms, we might be precluded from
entering into additional contracts with certain of our customers. Management
believes that our current surety arrangements will satisfy all of our bonding
needs for the foreseeable future, but there can be no assurance that such
surety arrangements will be sufficient to satisfy all of our future bonding
needs.


<P align="center" style="font-size: 10pt">6
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Many of our contracts may be canceled on short notice, and we may be
unsuccessful in replacing our contracts if they are cancelled or as they are
completed or expire</I></B><I>. </I>We could experience a decrease in our revenue, net income
and liquidity if any of the following occur:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our customers cancel a significant number of contracts;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we fail to win a significant number of our existing contracts upon re-bid;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we complete a significant number of non-recurring projects and cannot replace them with similar projects; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we fail to reduce operating and overhead expenses consistent with any decrease in our revenue.</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt">Many of our customers may cancel our contracts on short notice, typically 30-90
days, even if we are not in default under the contract. Certain of our
customers assign work to us on a project-by-project basis under master service
agreements. Under these agreements, our customers often have no obligation to
assign a specific amount of work to us. Our operations could decline
significantly if the anticipated volume of work is not assigned to us. Many of
our contracts, including our master service contracts, are opened to public bid
at the expiration of their terms. There can be no assurance that we will be the
successful bidder on our existing contracts that come up for bid.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We are self-insured against potential liabilities</I></B><I>. </I>Although we maintain
insurance policies with respect to automobile, general liability, workers&#146;
compensation and employers&#146; liability, those policies are subject to
deductibles of $1,000,000 to $2,000,000 per occurrence, and we are primarily
self-insured for all claims that do not exceed the amount of the applicable
deductible. We also maintain a non-union employee related health care benefit
plan that is subject to a deductible of $250,000 per claimant per year. Losses
up to the deductible amounts are accrued based upon our estimates of the
ultimate liability for claims incurred and an estimate of claims incurred but
not reported. However, insurance liabilities are difficult to assess and
estimate due to unknown factors, including the severity of an injury, the
determination of our liability in proportion to other parties, the number of
incidents not reported and the effectiveness of our safety program. If we were
to experience insurance claims or costs above our estimates, our business could
be materially and adversely affected.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our casualty insurance carrier for prior periods is experiencing financial
distress, which may cause us to be responsible for losses that would otherwise
be insured. </I></B>Our casualty insurance carrier for the policy periods from August
1, 2000 to February&nbsp;28, 2003 is experiencing financial distress, but is
currently paying valid claims. In the event that this insurer&#146;s financial
situation deteriorates, we may be required to pay certain obligations that
otherwise would have been paid by this insurer. At this time, we cannot
estimate the likelihood that this insurer will fail to honor its obligations or
the amount that might be paid if this insurer should fail to honor its
obligations to us. In any event, we do not expect any failure by this insurer
to honor its obligations to us to have a material adverse impact on our
financial condition; however, the impact could be material to our results of
operations or cash flow in a given period.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>The departure of key personnel could disrupt our business</I></B><I>. </I>We depend on
the continued efforts of our executive officers and on senior management of the
businesses we acquire. Although we have entered into employment agreements with
terms of one to three years with most of our executive officers and certain
other key employees, we cannot be certain that any individual will continue in
such capacity for any particular period of time. The loss of key personnel, or
the inability to hire and retain qualified employees, could negatively impact
our ability to manage our business. We do not carry key-person life insurance
on any of our employees.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our unionized workforce could adversely affect our operations and our
ability to complete future acquisitions</I></B><I>. </I>As of December&nbsp;31, 2003,
approximately 43% of our employees were covered by collective bargaining
agreements. Although the majority of these agreements prohibit strikes and work
stoppages, we cannot be certain that strikes or work stoppages will not occur
in the future. Strikes or work stoppages would adversely impact our
relationships with our customers and could cause us to lose business and
decrease our revenue. In addition, our ability to complete future acquisitions
could be adversely affected because of our union status for a variety of
reasons. For instance, our union agreements may be incompatible with the union
agreements of a business we want to acquire and some businesses may not want to
become affiliated with a union based company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our business is labor intensive, and we may be unable to attract and
retain qualified employees</I></B><I>. </I>Our ability to maintain our productivity and
profitability will be limited by our ability to employ, train and retain
skilled personnel necessary to meet our requirements. We may experience
shortages of qualified journeyman linemen. We cannot be certain that we will be
able to maintain an adequate skilled labor force necessary to operate
efficiently and to support our growth strategy or that our labor expenses will
not


<P align="center" style="font-size: 10pt">7
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">increase as a result of a shortage in the supply of these skilled
personnel. Labor shortages or increased labor costs could impair our ability to
maintain our business or grow our revenues.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our business growth could outpace the capability of our corporate
management infrastructure</I></B><I>. </I>We cannot be certain that our infrastructure will
be adequate to support our operations as they expand. Future growth also could
impose significant additional responsibilities on members of our senior
management, including the need to recruit and integrate new senior level
managers and executives. We cannot be certain that we can recruit and retain
such additional managers and executives. To the extent that we are unable to
manage our growth effectively, or are unable to attract and retain additional
qualified management, we may not be able to expand our operations or execute
our business plan.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We could have potential exposure to environmental liabilities</I></B><I>. </I>Our
operations are subject to various environmental laws and regulations, including
those dealing with the handling and disposal of waste products, PCBs, fuel
storage and air quality. As a result of past and future operations at our
facilities, we may be required to incur environmental remediation costs and
other cleanup expenses. In addition, we cannot be certain that we will be able
to identify or be indemnified for all potential environmental liabilities
relating to any acquired business, property or assets.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Opportunities within the government arena could lead to increased
governmental regulation applicable to Quanta and unrecoverable start up costs</I></B><I>.</I>
Most government contracts are awarded through a regulated competitive bidding
process. As we pursue increased opportunities in the government arena
management&#146;s focus associated with the start up and bidding process may be
diverted away from other opportunities. If we were to be successful in being
awarded government contracts, a significant amount of costs could be required
before any revenues were realized from these contracts. In addition, as a
government contractor we would be subject to a number of procurement rules and
other public sector liabilities, any deemed violation of which could lead to
fines or penalties or a loss of business. Government agencies routinely audit
and investigate government contractors. Government agencies may review a
contractor&#146;s performance under its contracts, costs structure, and compliance
with applicable laws, regulations and standards. If government agencies
determine through these audits or reviews that costs were improperly allocated
to specific contracts, they will not reimburse the contractor for those costs
or may require the contractor to refund previously reimbursed costs. Moreover,
our internal controls may not prevent improper conduct. If government agencies
determine that we engaged in improper activity, we may be subject to civil and
criminal penalties. We also could experience serious harm to our reputation.
Many government contracts must be appropriated each year. If appropriations are
not made in subsequent years we would not realize all of the potential revenues
from any awarded contracts.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We may not be successful in meeting the requirements of the Sarbanes-Oxley
Act of 2002</I></B><I>. </I>The Sarbanes-Oxley Act of 2002 has introduced many new
requirements applicable to Quanta regarding corporate governance and financial
reporting. Among many other requirements is the requirement under Section&nbsp;404
of the Act, beginning with the 2004 Annual Report, for management to report on
the Company&#146;s internal controls over financial reporting and for Quanta&#146;s
independent public accountants to attest to this report. During 2003, the
Company commenced actions to ensure its ability to comply with these
requirements, including but not limited to, the engaging of outside experts to
assist in the evaluation of our controls, additional staffing requirements of
our internal audit department and documentation of existing controls. In
addition, the Company expects to continue to devote substantial time and incur
substantial costs during 2004 to ensure compliance. There can be no assurance
that we will be successful in complying with Section&nbsp;404. Failure to do so
could result in the reduced ability to obtain financing, the loss of customers,
penalties and additional expenditures to meet the requirements.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We may not have access in the future to sufficient funding to finance
desired growth</I></B><I>. </I>If we cannot secure additional financing in the future on
acceptable terms, we may be unable to support our growth strategy. We cannot
readily predict the ability of certain customers to pay for past services or
the timing, size and success of our acquisition efforts. Using cash for
acquisitions limits our financial flexibility and makes us more likely to seek
additional capital through future debt or equity financings. Our existing debt
agreements contain significant restrictions on our operational and financial
flexibility, including our ability to incur additional debt, and if we seek
more debt we may have to agree to additional covenants that limit our
operational and financial flexibility. When we seek additional debt or equity
financings, we cannot be certain that additional debt or equity will be
available to us on terms acceptable to us or at all.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We may be unsuccessful at generating internal growth</I></B><I>. </I>Our ability to
generate internal growth will be affected by, among other factors, our ability
to:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expand the range of services we offer to customers to address their evolving network needs;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">8
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>attract new customers;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increase the number of projects performed for existing customers;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>hire and retain employees; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>open additional facilities.</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt">In addition, our customers may reduce the number or size of projects available
to us due to their inability to obtain capital or pay for services provided.
Many of the factors affecting our ability to generate internal growth may be
beyond our control, and we cannot be certain that our strategies will be
successful or that we will be able to generate cash flow sufficient to fund our
operations and to support internal growth. If we are unsuccessful, we may not
be able to achieve internal growth, expand our operations or grow our business.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our results of operations could be adversely affected as a result of
goodwill impairments</I></B><I>. </I>When we acquire a business, we record an asset called
&#147;goodwill&#148; equal to the excess amount we pay for the business, including
liabilities assumed, over the fair value of the tangible and intangible assets
of the business we acquire. Through December&nbsp;31, 2001, pursuant to generally
accepted accounting principles, we amortized this goodwill over its estimated
useful life of 40&nbsp;years following the acquisition, which directly impacted our
earnings. The Financial Accounting Standards Board (FASB)&nbsp;issued Statement of
Financial Accounting Standards (SFAS)&nbsp;No.&nbsp;142 which provides that goodwill and
other intangible assets that have indefinite useful lives not be amortized, but
instead must be tested at least annually for impairment, and intangible assets
that have finite useful lives should continue to be amortized over their useful
lives. SFAS No.&nbsp;142 also provides specific guidance for testing goodwill and
other non-amortized intangible assets for impairment. SFAS No.&nbsp;142 requires
management to make certain estimates and assumptions to allocate goodwill to
reporting units and to determine the fair value of reporting unit net assets
and liabilities, including, among other things, an assessment of market
conditions, projected cash flows, investment rates, cost of capital and growth
rates, which could significantly impact the reported value of goodwill and
other intangible assets. Fair value is determined using a combination of the
discounted cash flow, market multiple and market capitalization valuation
approaches. Absent any impairment indicators, we perform our impairment tests
annually during the fourth quarter. Future impairments, if any, will be
recognized as operating expenses.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We may be unsuccessful at integrating companies that we either have
acquired or that we may acquire in the future</I></B><I>. </I>We cannot be sure that we can
successfully integrate our acquired companies with our existing operations
without substantial costs, delays or other operational or financial problems.
If we do not implement proper overall business controls, our decentralized
operating strategy could result in inconsistent operating and financial
practices at the companies we acquire and our overall profitability could be
adversely affected. Integrating our acquired companies involves a number of
special risks which could have a negative impact on our business, financial
condition and results of operations, including:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>failure of acquired companies to achieve the results we expect;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>diversion of our management&#146;s attention from operational matters;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>difficulties integrating the operations and personnel of acquired companies;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>inability to retain key personnel of the acquired companies;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>risks associated with unanticipated events or liabilities; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>potential disruptions of our business.</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt">If one of our acquired companies suffers customer dissatisfaction or
performance problems, the reputation of our entire company could suffer.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>First Reserve&#146;s investment in us may result in potential conflicts of
interest with, or dilution of, existing stockholders</I></B><I>. </I>First Reserve Fund IX,
L.P. (First Reserve) owned approximately 33.6% of the outstanding shares of our
common stock as of September&nbsp;1, 2004. By reason of such stock ownership,
conflicts of interest may arise in the future between us and First Reserve and
its affiliates with respect to, among other things, issuances of additional
shares of voting securities or the payment of dividends. There are no


<P align="center" style="font-size: 10pt">9
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">contractual or other restrictions on the ability of First Reserve or its
affiliates to pursue other investment opportunities in any of the industries we
serve. In addition, First Reserve may have interests that could be in conflict
with those of the holders of the debentures or our other stockholders.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>You are unlikely to be able to seek remedies against Arthur Andersen LLP,
our former independent auditor</I></B><I>. </I>Our consolidated financial statements for the
fiscal years ended prior to December&nbsp;31, 2002 were audited by Arthur Andersen
LLP, our former independent auditor. In June&nbsp;2002 Arthur Andersen LLP was
convicted of federal obstruction of justice charges in connection with its
destruction of documents. As a result of its conviction, Arthur Andersen LLP
has ceased operations and is no longer in a position to reissue its audit
reports or to provide consent to include financial statements reported on by it
in this prospectus. Because Arthur Andersen LLP has not reissued its reports
and because we are not able to obtain a consent from Arthur Andersen LLP, you
will be unable to sue Arthur Andersen LLP for material misstatements or
omissions, if any, in this prospectus, including the financial statements
covered by its previously issued reports. Even if you have a basis for
asserting a remedy against, or seeking to recover from, Arthur Andersen LLP, we
believe that it is unlikely that you would be able to recover damages from
Arthur Andersen LLP.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Certain provisions of our corporate governing documents could make an
acquisition of our company more difficult</I></B><I>. </I>The following provisions of our
certificate of incorporation and bylaws, as currently in effect, as well as our
stockholder rights plan and Delaware law, could discourage potential proposals
to acquire us, delay or prevent a change in control of us or limit the price
that investors may be willing to pay in the future for shares of our common
stock:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our certificate of incorporation permits our board of directors to
issue &#147;blank check&#148; preferred stock and to adopt amendments to our
bylaws;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our bylaws contain restrictions regarding the right of stockholders
to nominate directors and to submit proposals to be considered at
stockholder meetings;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our certificate of incorporation and bylaws restrict the right of
stockholders to call a special meeting of stockholders and to act by
written consent;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we are subject to provisions of Delaware law which prohibit us from
engaging in any of a broad range of business transactions with an
&#147;interested stockholder&#148; for a period of three years following the date
such stockholder became classified as an interested stockholder; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>on March&nbsp;8, 2000, we adopted, and have subsequently amended, a
stockholder rights plan that could cause substantial dilution to a
person or group that attempts to acquire us on terms not approved by our
board of directors or permitted by the stockholder rights plan.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt"><B>Risks Relating to Our Debentures</B>


<P align="left" style="font-size: 10pt"><B><I>We may not have the ability to raise the funds necessary to repurchase the
debentures upon a fundamental change or on any other repurchase date, as
required by the indenture governing the debentures.</I></B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;1, 2008, holders of the debentures may require us to repurchase
their debentures for cash. In addition, on October&nbsp;1, 2013 and October&nbsp;1, 2018,
or following a fundamental change as described under &#147;Description of Debentures
&#151; Repurchase of Debentures by Us at the Option of the Holder upon a
Fundamental Change,&#148; holders of debentures may require us to repurchase their
debentures, at our option in cash or shares of our common stock or a
combination thereof. A fundamental change may also constitute an event of
default under, and result in the acceleration of the maturity of, our then
existing indebtedness. We cannot assure you that we will have sufficient
financial resources or that we will be able to arrange financing to pay the
repurchase price in cash with respect to any debentures tendered by holders for
repurchase on any of these dates or upon a fundamental change.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Even if we issue shares of common stock in satisfaction of our repurchase
obligation, this may result in dilution of our common stock, which may
negatively impact the price of the debentures. In addition, restrictions in our
then existing credit facilities or other indebtedness may not allow us to
repurchase the debentures. Our failure to repurchase the debentures when
required would result in an event of default with respect to the debentures.
Such an event of default could negatively affect the trading price of the
debentures and our common stock because the event of default could lead to the
principal and accrued and unpaid interest on the outstanding debentures
becoming immediately due and payable.


<P align="center" style="font-size: 10pt">10
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><B><I>As a holding company, our only source of cash is distributions from our
subsidiaries</I></B><B>.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a holding company with no operations of our own and we conduct all
of our business through our subsidiaries. The debentures will be obligations
exclusively of us. Our only significant asset is the outstanding capital stock
of our subsidiaries, and this capital stock collateralizes our new senior
secured credit facility. We are wholly dependent on the cash flow of our
subsidiaries and dividends and distributions to us from our subsidiaries in
order to service our current indebtedness, including the debentures, and any of
our future obligations. Our subsidiaries are separate and distinct legal
entities and will have no obligation, contingent or otherwise, to pay any
amounts due pursuant to the debentures or to make any funds available therefor.
The ability of our subsidiaries to pay such dividends and distributions will be
subject to, among other things, statutory or contractual restrictions. We will
need sufficient funds available to pay cash interest on the debentures on April
1 and October 1 each year, and to repay the debentures when required. We cannot
assure you that our subsidiaries will generate cash flow sufficient to pay
dividends or distributions to us in order to pay interest or other payments on
the debentures.

<P align="left" style="font-size: 10pt"><B><I>The trading prices of the debentures could be significantly affected by the
trading prices of our common stock</I></B><B>.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expect that the trading prices of the debentures in the secondary
market will be significantly affected by the trading prices of our common
stock, the general level of interest rates and our credit quality. As discussed
above, the market price of our common stock may be volatile. This may result in
greater volatility in the trading prices of the debentures than would be
expected for nonconvertible debt securities. It is impossible to predict
whether the price of our common stock or interest rates will rise or fall.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trading prices of our common stock will be influenced by our operating
results and prospects and by economic, financial, regulatory and other factors.
In addition, general market conditions, including the level of, and
fluctuations in, the trading prices of stocks generally, and sales of
substantial amounts of common stock by us in the market after the offering of
the debentures, or the perception that such sales may occur, could affect the
price of our common stock.

<P align="left" style="font-size: 10pt"><B><I>Your right to receive payments on the debentures ranks junior to all of our
existing and future senior indebtedness</I></B><B>.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The debentures are our unsecured, subordinated obligations. The debentures
rank junior in right of payment to all of our existing and future senior
indebtedness, including any indebtedness incurred under our new senior secured
credit facility. In any liquidation, dissolution, bankruptcy or other similar
proceeding, the holders of our senior indebtedness will be entitled to be paid
in full and in cash before any payment may be made with respect to the
debentures. In addition, all payments on the debentures will be blocked in the
event of a payment default on senior indebtedness and may be blocked for up to
180 consecutive days in the event of certain non-payment defaults on senior
indebtedness.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, our existing and future secured indebtedness, including any
indebtedness incurred under our new senior secured credit facility, will
effectively rank senior to the debentures to the extent of the assets securing
such indebtedness.

<P align="left" style="font-size: 10pt"><B><I>The debentures are effectively subordinated to the liabilities of our
subsidiaries.</I></B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The debentures are not guaranteed by our subsidiaries and are effectively
subordinated to all existing and future liabilities of our subsidiaries. Our
right to receive any assets of any of our subsidiaries upon their liquidation
or reorganization, and therefore the right of holders of the debentures to
participate in those assets, is effectively subordinated to the claims of that
subsidiary&#146;s creditors, including trade creditors. In addition, even if we were
a creditor to any of our subsidiaries, our rights as a creditor would be
subordinated to any security interest in the assets of our subsidiaries and any
indebtedness of our subsidiaries senior to that held by us. These liabilities
may include indebtedness, trade payables, guarantees, lease obligations and
letter of credit obligations.

<P align="left" style="font-size: 10pt"><B><I>If a market for the debentures is not maintained, the trading price of the
debentures could decline significantly.</I></B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The initial purchasers have in the past made a market in the debentures.
However, the initial purchasers are not obligated to make a market and may
discontinue this market-making activity at any time without notice. As a
result, we cannot assure you that an active trading market will be maintained
for the debentures or that you will be able to sell your debentures. In
addition, the market-making activities of the initial purchasers will be
subject to the limitations imposed by the Securities Act and the Securities
Exchange Act, and may be limited during the effectiveness of a registration
statement relating to the debentures. We do not intend to list the debentures
on any national securities exchange or automated quotation system.


<P align="center" style="font-size: 10pt">11
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moreover, even if you are able to sell your debentures, we cannot assure
you as to the price at which any sales will be made. Future trading prices of
the debentures will depend on many factors, including, among other things,
prevailing interest rates, our operating results, the price of our common stock
and the market for similar securities. Historically, the market for convertible
debt has been subject to disruptions that have caused volatility in prices. It
is possible that the market for the debentures will be subject to disruptions
which may have a negative effect on the holders of the debentures, regardless
of our prospects or financial performance.

<P align="left" style="font-size: 10pt"><B><I>If you hold debentures, you will not be entitled to any rights with respect to
our common stock, but you will be subject to all changes made with respect to
our common stock.</I></B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you hold debentures, you will not be entitled to any rights with
respect to our common stock (including voting rights and rights to receive any
dividends or other distributions on our common stock), but you will be subject
to all changes affecting the common stock. You will have rights with respect to
our common stock only if and when we deliver shares of common stock to you upon
conversion, redemption or repurchase of your debentures and, in limited cases,
under the conversion rate adjustments applicable to the debentures. For
example, in the event that an amendment is proposed to our certificate of
incorporation or bylaws requiring stockholder approval and the record date for
determining the stockholders of record entitled to vote on the amendment occurs
prior to delivery of the common stock to you, you will not be entitled to vote
on the amendment, although you will nevertheless be subject to any changes in
the powers, preferences or special rights of our common stock.

<P align="left" style="font-size: 10pt"><B><I>We may issue additional shares of common stock and thereby materially and
adversely affect the price of our common stock and the debentures.</I></B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are not restricted from issuing additional common stock during the life
of the debentures. If we issue additional shares of common stock, the price of
our common stock and, in turn, the price of the debentures may be materially
and adversely affected.

<P align="left" style="font-size: 10pt"><B><I>Conversion, redemption or repurchase of the debentures into or with our common
stock will dilute the ownership interests of existing stockholders, including
holders who had previously converted their debentures.</I></B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion, redemption or repurchase of some or all of the debentures
into or with our common stock will dilute the ownership interests of 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. In addition, the existence of the debentures may encourage short selling
by market participants because the conversion of the debentures could depress
the price of our common stock.

<P align="left" style="font-size: 10pt"><B><I>The conditional conversion features of the debentures could result in you
receiving less than the value of the common stock into which a debenture is
convertible.</I></B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The debentures are convertible into common stock only if specified
conditions are met. If the specific conditions for conversion are not met, you
may not be able to receive the value of the common stock into which the
debentures would otherwise be convertible.

<P align="left" style="font-size: 10pt"><B><I>The debentures are not protected by restrictive covenants.</I></B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The indenture governing the debentures does not contain any financial
covenants or restrictions on the payment of dividends. The indenture does not
restrict the issuance or repurchase of securities by us or our subsidiaries.
The indenture contains no covenants or other provisions to afford you
protection in the event of a highly leveraged transaction, such as a leveraged
recapitalization, that would increase the level of our indebtedness, or a
change in control except as described under &#147;Description of Debentures &#151;
Repurchase of Debentures by Us at the Option of the Holder upon a Fundamental
Change.&#148; Neither we nor our subsidiaries are restricted from incurring
additional debt, including senior indebtedness, under the indenture. If we or
our subsidiaries were to incur additional debt or liabilities, our ability to
pay our obligations on the debentures could be adversely affected.

<P align="left" style="font-size: 10pt"><B><I>Changes in the rating of our debentures could adversely affect the market price
of the debentures and our common stock.</I></B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market price of the debentures will be based on a number of factors,
including the rating of the debentures with major credit rating agencies. The
ratings assigned to the debentures by the rating agencies may change if the
rating agencies&#146; view of our credit quality diminishes. The rating agencies
also may evaluate the companies in our industries as a whole and may change
their rating for our debentures based on their overall view of the industries
in which we operate. Any downgrade in the rating of the debentures is likely to
have an adverse effect on the market price of the debentures and our common
stock.


<P align="center" style="font-size: 10pt">12
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><B><I>Adjustments to the conversion rate on the debentures may result in a taxable
distribution to you.</I></B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion ratio of the debentures will be adjusted if we distribute
cash with respect to shares of our common stock and in certain other
circumstances. Under Section 305(c) of the Internal Revenue Code, an increase
in the conversion ratio as a result of our distribution of cash to common
stockholders generally will result in a deemed distribution to you. Other
adjustments in the conversion ratio (or failures to make such adjustments) that
have the effect of increasing your proportionate interest in our assets or
earnings may have the same result. Any deemed distribution to you will be
taxable as a dividend to the extent of our current or accumulated earnings and
profits. If you are a non-U.S. holder of debentures, any deemed distribution to
you that is treated as a dividend will be subject to withholding tax at a 30%
rate (or such lower rate as may be specified by an applicable income tax
treaty). See &#147;Material U.S. Federal Income Tax Considerations.&#148;


<P align="center" style="font-size: 10pt">13
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="104"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>USE OF PROCEEDS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not receive any proceeds from any sale by the selling security
holders of the debentures or the shares of common stock issuable upon
conversion or repurchase of the debentures.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We received net proceeds of approximately $262.4&nbsp;million from our sale of
the debentures to the initial purchasers, after deducting the discount payable
to the initial purchasers and the estimated offering expenses payable by us. We
used the net proceeds of the offering to repay $144.5&nbsp;million of our senior
secured notes, to pay associated make-whole prepayment premiums in the amount
of $21.7&nbsp;million, and to cash collateralize $96.2&nbsp;million of outstanding
letters of credit under our then existing credit facility. When such
outstanding letters of credit were replaced with letters of credit issued under
our new senior secured credit facility, the $96.2&nbsp;million in cash held as
collateral for the letters of credit was released to us.

<DIV align="left">
<A name="105"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>PRICE RANGE OF COMMON STOCK</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is traded on the New York Stock Exchange, or NYSE, under
the symbol &#147;PWR.&#148; The following table sets forth, for each of the quarterly
periods indicated, the high and low sales prices of our common stock as
reported by the NYSE.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="65%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="74%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>High</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Low</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Fiscal Year 2002
1st Quarter</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>17.43</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>11.53</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px"><B>2nd Quarter</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>18.90</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>9.40</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px"><B>3rd Quarter</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>10.19</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.75</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px"><B>4th Quarter</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3.94</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.78</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Fiscal Year 2003
1st Quarter</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>4.10</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>2.80</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px"><B>2nd Quarter</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8.70</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3.18</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px"><B>3rd Quarter</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>9.87</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4.48</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px"><B>4th Quarter</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>9.10</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>6.95</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Fiscal Year 2004
1st Quarter</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>9.52</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>6.50</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px"><B>2nd Quarter</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7.24</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4.83</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px"><B>3rd Quarter (through September&nbsp;8, 2004)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>6.96</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5.27</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;8, 2004, the last sale price for our common stock as reported
by the NYSE was $6.66 per share. As of August&nbsp;26, 2004 there were 1,003 holders
of record of our common stock.

<DIV align="left">
<A name="106"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>DIVIDEND POLICY</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have not paid cash dividends on our common stock since our initial
public offering. Further, we currently intend to retain our future earnings, if
any, to finance the growth, development and expansion of our business.
Accordingly, we do not intend to declare or pay any cash dividends on our
common stock in the immediate future. The declaration, payment and amount of
future cash dividends, if any, will be at the discretion of our board of
directors after taking into account various factors. These factors include our
financial condition, results of operations, cash flows from operations, current
and anticipated capital requirements and expansion plans, the income tax laws
then in effect and the requirements of Delaware law. In addition, the terms of
our new senior secured credit facility include, and any future financing
arrangements we enter into may also include, prohibitions on the payment of
cash dividends without the consent of the respective lenders.


<P align="center" style="font-size: 10pt">14
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="107"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>DESCRIPTION OF OTHER INDEBTEDNESS</B>



<P align="left" style="font-size: 10pt"><B>Credit Facility</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;19, 2003, we entered into a $185.0&nbsp;million credit facility
with various lenders. The credit facility consists of a $150.0&nbsp;million letter
of credit facility, which also provides for term loans, and a $35.0&nbsp;million
revolving credit facility, which provides for revolving loans and letters of
credit. We amended the credit facility effective as of June&nbsp;30, 2004 to ease
the maximum funded debt to EBITDA ratio and the minimum interest coverage ratio
covenants. The amendment also increased the maximum fee for outstanding
letters of credit and the maximum interest rate payable for term loans under
the letter of credit facility.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The letter of credit facility is linked to a $150.0&nbsp;million deposit made
by the lenders, which is held in an account with Bank of America, N.A. This
deposit may be used either to support letters of credit or, to the extent that
amounts available under the facility are not used to support letters of credit,
for term loans. As of June&nbsp;30, 2004, we had approximately $104.7&nbsp;million of
letters of credit issued under the letter of credit facility, and the remaining
$45.3&nbsp;million of the letter of credit facility was outstanding as a term loan
with an interest rate of 4.54%. If we desire to issue additional letters of
credit under the letter of credit facility, we are required to make cash
repayments of debt outstanding under the term loan portion of the letter of
credit facility in an amount that approximates the additional letters of
credit. We used the credit facility to replace the letters of credit
outstanding under our previous $120.0&nbsp;million letter of credit facility and we
repaid the $60.0&nbsp;million term loan outstanding under that facility.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the letter of credit facility, we are subject to a facility fee
equal to 3.00% to 3.25% of the letters of credit outstanding, depending upon
the occurrence of certain events, plus an additional 0.15% of the amount
outstanding to the extent the funds in the deposit account do not earn the
London Interbank Offered Rate (LIBOR). Term loans under the facility bear
interest at a rate equal to either (a)&nbsp;the Eurodollar Rate (as defined in the
credit facility) plus 3.00% to 3.25% or (b)&nbsp;the Base Rate (as described below)
plus 3.00% to 3.25%, depending upon the occurrence of certain events. The Base
Rate equals the higher of (i)&nbsp;the Federal Funds Rate (as defined in the credit
facility) plus 1/2 of 1% and (ii)&nbsp;the bank&#146;s prime rate. The maximum
availability under the facility is automatically reduced on December&nbsp;31 of each
year by $1.5&nbsp;million, beginning December&nbsp;31, 2004.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June&nbsp;30, 2004, we had approximately $2.7&nbsp;million of letters of
credit issued under the revolving credit facility and borrowing availability
under the revolving credit facility was $32.3&nbsp;million. Amounts borrowed under
the revolving facility bear interest at a rate equal to either (a)&nbsp;the
Eurodollar Rate plus 1.75% to 3.00%, as determined by the ratio of our total
funded debt to EBITDA, or (b)&nbsp;the Base Rate plus 0.25% to 1.50%, as determined
by the ratio of our total funded debt to EBITDA. Letters of credit issued under
the revolving facility are subject to a letter of credit fee of 1.75% to 3.00%,
based on the ratio of our total funded debt to EBITDA. If we choose to cash
collateralize letters of credit issued under the revolving facility, those
letters of credit will be subject to a letter of credit fee of 0.50%. We are
also subject to a commitment fee of 0.375% to 0.625%, based on the ratio of our
total funded debt to EBITDA, on any unused availability under the revolving
facility.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The credit facility contains financial ratio and indebtedness covenants,
including a maximum funded debt to EBITDA ratio, a maximum senior debt to
EBITDA ratio, a minimum interest coverage ratio, a minimum asset coverage ratio
and a minimum consolidated net worth covenant. As of June&nbsp;30, 2004, we were in
compliance with all of these covenants. However, other conditions, such as,
but not limited to, unforeseen project delays or cancellations, adverse weather
conditions or poor contract performance, could adversely affect our ability to
comply with our covenants in the future. The credit facility also limits
acquisitions, capital expenditures and asset sales and, subject to some
exceptions, prohibits stock repurchase programs and the payment of dividends
(other than dividend payments or other distributions payable solely in capital
stock). After December&nbsp;31, 2004, however, we may pay dividends and engage in
stock repurchase programs in any fiscal year in an aggregate amount up to
twenty-five percent of our consolidated net income (plus the amount of non-cash
charges that reduced such consolidated net income) for the immediately prior
fiscal year. The credit facility contains cross-default provisions that trigger
a default in the event of a default under any of our other debt instruments
exceeding $2.0&nbsp;million in borrowings.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The credit facility is secured by a pledge of all of the capital stock of
our U.S. subsidiaries, 65% of the capital stock of our foreign subsidiaries and
substantially all of our assets, and it restricts pledges on all material
assets. Borrowings under the credit facility are to be used for working
capital, capital expenditures and for other general corporate purposes. Our
U.S. subsidiaries guarantee the repayment of all amounts due under the credit
facility. Our obligations under the credit facility constitute designated
senior indebtedness under the debentures and our convertible subordinated
notes.


<P align="center" style="font-size: 10pt">15
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>Convertible Subordinated Notes</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the third quarter of 2000, we issued 4% convertible subordinated
notes due July&nbsp;1, 2007, pursuant to an indenture between us and Wells Fargo
Bank, National Association, as trustee. The aggregate principal amount of the
convertible subordinated notes issued totaled $172.5&nbsp;million. The convertible
subordinated notes are convertible into shares of Quanta&#146;s common stock at a
price of $54.53 per share, subject to adjustment as a result of certain events,
and require semi-annual interest payments until maturity.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have the option to redeem some or all of the convertible subordinated
notes at specified redemption prices, together with accrued and unpaid
interest. However, redemption is prohibited by our new senior secured credit
facility. If certain fundamental changes occur, the holders of convertible
subordinated notes may require us to purchase all or part of their convertible
subordinated notes at a purchase price equal to 100% of the principal amount,
plus accrued and unpaid interest. We are not subject to any financial covenants
under the indenture and we are not restricted from paying dividends, incurring
additional indebtedness, including senior debt, or issuing or repurchasing our
securities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The payment of principal, premium (if any) and interest on the convertible
subordinated notes is subordinate in right of payment to all of our senior
indebtedness. The convertible subordinated notes rank equally in right of
payment with the debentures.


<P align="left" style="font-size: 10pt"><B>Senior Secured Notes</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In March and September&nbsp;2000, we closed private placements of $210.0
million aggregate principal amount of senior secured notes, primarily with
insurance companies, with maturity dates currently ranging from March&nbsp;2005 to
September&nbsp;2010. On August&nbsp;12, 2002 and December&nbsp;20, 2002, we amended the senior
secured notes and, as amended, they bore interest at a weighted average rate
between 8.41% and 9.91%, with a weighted average interest rate as of September
30, 2003 of 9.91%. The senior secured notes were secured by certain of our
assets and our subsidiaries guaranteed the repayment of all amounts due under
the notes. Pursuant to an intercreditor agreement, the senior secured notes
ranked equally in right of repayment with indebtedness under our existing
credit facility.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;30, 2003, we entered into an amendment to the senior secured
notes to permit the incurrence of the indebtedness represented by the
debentures. On October&nbsp;21, 2003 and October&nbsp;27, 2003, we used the net proceeds
from the sale of the debentures to repay $144.5&nbsp;million of the senior secured
notes, and to pay associated make-whole prepayment premiums in the amount of
$21.7&nbsp;million. Using proceeds from the $60.0&nbsp;million term loan, the remaining
balance of the senior secured notes was repaid in November&nbsp;2003 and an
additional $9.5&nbsp;million of associated make-whole prepayment premiums were paid.

<DIV align="left">
<A name="108"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>DESCRIPTION OF DEBENTURES</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We issued the debentures under an indenture dated as of October&nbsp;17, 2003,
between us and Wells Fargo Bank, N.A., as trustee, which we refer to in this
prospectus as the indenture. The debentures and the shares of common stock
issuable upon conversion of the debentures are covered by a registration rights
agreement. You may request a copy of the indenture and the registration rights
agreement from the trustee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following description is a summary of the material provisions of the
debentures, the indenture and the registration rights agreement and does not
purport to be complete. This summary is subject to and is qualified by
reference to all the provisions of the debentures and the indenture, including
the definitions of certain terms used in the indenture, and to all provisions
of the registration rights agreement. Wherever particular provisions or defined
terms of the indenture or form of debenture are referred to, these provisions
or defined terms are incorporated in this prospectus by reference. We urge you
to read the indenture because it, and not this description, defines your rights
as a holder of the debentures.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used in this &#147;Description of Debentures&#148; section, references to
&#147;Quanta,&#148; &#147;we,&#148; &#147;our&#148; or &#147;us&#148; refer solely to Quanta Services, Inc. and not to
our subsidiaries.


<P align="left" style="font-size: 10pt"><B>General</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The debentures will mature on October&nbsp;1, 2023 unless earlier converted,
redeemed or repurchased. You have the option, subject to fulfillment of certain
conditions and during the periods described below, to convert your debentures
into shares of our common stock at an initial conversion rate of 89.7989 shares
of common stock per $1,000 principal amount of debentures. This is equivalent
to an initial conversion price of approximately $11.14 per share of common
stock. The &#147;conversion price&#148; is, as of any date of


<P align="center" style="font-size: 10pt">16
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">determination, a dollar amount derived by dividing the principal amount by
the conversion rate then in effect. The conversion rate is subject to
adjustment if certain events occur. Upon a surrender of your debentures for
conversion, we will have the right to deliver, in lieu of shares of our common
stock, cash or a combination of cash and shares of common stock in amounts
described below under &#147;&#151; Payment upon Conversion.&#148; Even if we elect to deliver
shares of common stock upon conversion of a debenture, you will not receive
fractional shares but instead a cash payment to account for any such fractional
share. You will not receive any cash payment for interest (or additional
amounts, if any) accrued and unpaid to the conversion date except under the
limited circumstances described below.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any interest payment date, maturity date, redemption date or repurchase
date (including upon the occurrence of a fundamental change, as described
below) falls on a day that is not a business day, the required payment will be
made on the next succeeding business day with the same force and effect as if
made on the date that the payment was due, and no additional interest will
accrue on that payment for the period from and after the interest payment date,
maturity date, redemption date or repurchase date (including upon the
occurrence of a fundamental change, as described below), as the case may be, to
that next succeeding business day.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The debentures were issued only in denominations of $1,000 principal
amount and integral multiples thereof. References to &#147;a debenture&#148; or &#147;each
debenture&#148; in this prospectus refer to $1,000 principal amount of the
debentures. The debentures are limited to $270.0&nbsp;million aggregate principal
amount.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used in this prospectus, &#147;business day&#148; means any day, other than a
Saturday or Sunday, that is neither a legal holiday nor a day on which
commercial banks are authorized or required by law, regulation or executive
order to close in The City of New York.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When we refer to &#147;common stock,&#148; we mean the common stock, par value
$.00001 per share, of Quanta Services, Inc., including the rights related to
our common stock pursuant to our stockholder rights plan.


<P align="left" style="font-size: 10pt"><B>Ranking</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The payment of principal of, and interest (including additional amounts,
if any) on, the debentures, as set forth in the indenture, ranks junior in
right of payment to the prior payment in full in cash of all senior
indebtedness (as defined below). The debentures also are effectively
subordinated to all existing and future indebtedness and other liabilities,
including trade payables and lease obligations, if any, of our subsidiaries.
See &#147;&#151; Subordination.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither we nor our subsidiaries are prohibited from incurring
indebtedness, including senior indebtedness, under the indenture. We may from
time to time incur additional debt, including senior indebtedness. Our
subsidiaries may also from time to time incur additional indebtedness and
liabilities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The debentures rank equally in right of payment with our $172.5 in
aggregate principal amount of 4% convertible subordinated notes due 2007. Any
amounts borrowed by us under our new credit facility will constitute senior
indebtedness. The debentures are also effectively subordinated to the
liabilities of our subsidiaries, and, as of June&nbsp;30, 2004, our subsidiaries had
approximately $3.2&nbsp;million of indebtedness.


<P align="left" style="font-size: 10pt"><B>Interest</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The debentures bear interest at a rate of 4.50% per annum. Interest
(including additional amounts, if any) is payable semi-annually in arrears on
April 1 and October 1 of each year, beginning on April&nbsp;1, 2004.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on a debenture (including additional amounts, if any) will be
paid to the person in whose name the debenture is registered at the close of
business on the March&nbsp;15 or September&nbsp;15, as the case may be (each, a &#147;record
date&#148;), immediately preceding the relevant interest payment date (whether or
not such day is a business day); provided, however, that interest (including
additional amounts, if any) payable upon redemption or repurchase by us will be
paid to the person to whom principal is payable, unless the redemption date or
repurchase date, as the case may be, is an interest payment date. Interest will
be calculated on the basis of a 360-day year consisting of twelve 30-day months
and will accrue from October&nbsp;17, 2003 or from the most recent date to which
interest has been paid or duly provided for.


<P align="center" style="font-size: 10pt">17
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>Optional Redemption by Us</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No sinking fund is provided for the debentures. Prior to October&nbsp;8, 2008,
the debentures will not be redeemable. On or after October&nbsp;8, 2008, we may
redeem the debentures in whole or in part at any time for a redemption price in
cash equal to 100% of the principal amount of the debentures to be redeemed,
plus any accrued and unpaid interest (including additional amounts, if any) to
but excluding the redemption date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the redemption date is an interest payment date, interest (including
additional amounts, if any) shall be paid on such interest payment date to the
record holder on the relevant record date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debentures or portions of debentures called for redemption will be
convertible by the holder until the close of business on the second business
day prior to the redemption date. Our notice of redemption will inform the
holders of our election to deliver shares of our common stock or to pay cash in
lieu of delivery of shares of common stock with respect to any debentures or
portions thereof converted prior to the redemption date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will provide not less than 30 nor more than 60&nbsp;days&#146; notice of
redemption by mail to each registered holder of debentures to be redeemed. If
the redemption notice is given and funds are deposited as required, then
interest will cease to accrue on and after the redemption date on those
debentures or portions of debentures called for redemption.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we decide to redeem fewer than all of the outstanding debentures, the
trustee will select the debentures 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. If the trustee selects a
portion of your debentures for partial redemption and you convert a portion of
your debentures, the converted portion will be deemed to be from the portion
selected for redemption.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may not redeem the debentures if we have failed to pay any interest
(including additional amounts, if any) on the debentures when due and such
failure to pay is continuing. We will notify all of the holders if we redeem
any of the debentures.


<P align="left" style="font-size: 10pt"><B>Conversion Rights</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the conditions and during the periods described below, you may
convert each of your debentures into shares of our common stock initially at a
conversion rate of 89.7989 shares of common stock per $1,000 principal amount
of debentures (equivalent to an initial conversion price of approximately
$11.14 per share of common stock based on the issue price per debenture). 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. You may convert fewer than all of your debentures so long as the
debentures converted are an integral multiple of $1,000 principal amount. Upon
a surrender of your debentures for conversion, we will have the right to
deliver, in lieu of shares of our common stock, cash or a combination of cash
and shares of common stock in amounts described below under &#147;&#151; Payment upon
Conversion.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may convert your debentures into shares of our common stock only in
the following circumstances, which are described in more detail below, and to
the following extent:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in whole or in part, upon satisfaction of a market price condition;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if any of your debentures are called for redemption, those debentures that have been so called;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in whole or in part, upon the occurrence of specified corporate transactions; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in whole or in part, upon satisfaction of a trading price condition.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we call your debentures for redemption, you may convert the debentures
only until the close of business on the second business day prior to the
redemption date unless we fail to pay the redemption price. If you have already
delivered a repurchase election with respect to a debenture as described under
either &#147;&#151; Repurchase of Debentures by Us at the Option of the Holder&#148; or &#147;&#151;
Repurchase of Debentures by Us at the Option of the Holder upon a Fundamental
Change,&#148; you may not surrender that debenture for conversion until you have
withdrawn the repurchase election in accordance with the indenture.


<P align="center" style="font-size: 10pt">18
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon conversion, you will not receive any payment of interest (including
additional amounts, if any) unless such conversion occurs between a regular
record date and the interest payment date to which it relates. We will not
issue fractional shares of common stock upon conversion of debentures. Instead,
we will pay cash in lieu of fractional shares. Our delivery to you of the full
number of shares of our common stock into which a debenture is convertible, or
cash or a combination of cash and shares of common stock, including any cash
payment for any fractional share, will be deemed to satisfy our obligation to
pay:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the principal amount of the debenture; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>accrued but unpaid interest (including additional amounts, if any) to but excluding the conversion date.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result, accrued but unpaid interest (including additional amounts, if
any) to but excluding the conversion date will be deemed to be paid in full
rather than cancelled, extinguished or forfeited. For a discussion of your tax
treatment upon receipt of our common stock upon conversion, see &#147;Material U.S.
Federal Income Tax Considerations.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the preceding paragraph, if debentures are converted after
the close of business on a record date but prior to the opening of business on
the next succeeding interest payment date, holders of such debentures at the
close of business on the record date will receive the interest (including
additional amounts, if any) payable on such debentures on the corresponding
interest payment date notwithstanding the conversion. Such debentures, upon
surrender for conversion, must be accompanied by funds equal to the amount of
interest (including additional amounts, if any) payable on the debentures so
converted; provided that no such payment need be made (1)&nbsp;if we have specified
a redemption date that is after a record date and on or prior to the date that
is two business days after the next interest payment date, (2)&nbsp;if we have
specified a fundamental change repurchase date that is after a record date and
on or prior to the date that is one business day after the next interest
payment date, or (3)&nbsp;to the extent of any overdue interest (including
additional amounts, if any) if any overdue interest exists at the time of
conversion with respect to such debenture.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you convert debentures, we will pay any documentary, stamp or similar
issue or transfer tax due on the issue of shares of our common stock upon the
conversion, unless the tax is due because you request the shares to be issued
or delivered to another person, in which case you will pay that tax.


<P align="left" style="font-size: 10pt"><B>Conversion Upon Satisfaction Of Market Price Condition</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may surrender your debentures for conversion into our common stock in
any fiscal quarter after the fiscal quarter ending December&nbsp;31, 2003 if the
last reported sale price of our common stock for at least 20 trading days
during the period of 30 consecutive trading days ending on the first trading
day of such fiscal quarter is greater than or equal to 120% of the conversion
price per share of our common stock on the last trading day of the 30
consecutive trading days. Upon a surrender of your debentures for conversion,
we will have the right to deliver, in lieu of shares of our common stock, cash
or a combination of cash and shares of common stock in amounts described below
under &#147;&#151; Payment upon Conversion.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The &#147;last reported sale price&#148; of our common stock on any date means the
closing sale price per share (or if no closing sale price is reported, the
average of the bid and asked prices or, if more than one in either case, the
average of the average bid and the average asked prices) on such date as
reported in composite transactions for the principal United States securities
exchange on which our common stock is traded or, if our common stock is not
listed on a United States national or regional securities exchange, as reported
by the Nasdaq National Market. If our common stock is not listed for trading on
a U.S. national or regional securities exchange and not reported by the Nasdaq
National Market on the relevant date, the &#147;last reported sale price&#148; will be
the last quoted bid price for our common stock in the over-the-counter market
on the relevant date as reported by the National Quotation Bureau Incorporated
or similar organization. If our common stock is not so quoted, the &#147;last
reported sale price&#148; will be the average of the mid-point of the last bid and
asked prices for our common stock on the relevant date from each of at least
three independent nationally recognized investment banking firms selected by us
for this purpose.


<P align="left" style="font-size: 10pt"><B>Conversion Upon Notice Of Redemption</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we call any or all of the debentures for redemption, you may surrender
any of your debentures that have been called for redemption for conversion at
any time prior to the close of business on the second business day prior to the
redemption date. Upon a surrender of your debentures for conversion, we will
have the right to deliver, in lieu of shares of our common stock, cash or a
combination of cash and shares of common stock in amounts described below under
&#147;&#151; Payment upon Conversion.&#148;


<P align="center" style="font-size: 10pt">19
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>Conversion Upon Specified Corporate Transactions</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we elect to:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>distribute to all holders of our common stock certain rights entitling
them to purchase, for a period expiring within 45&nbsp;days after the date of
the distribution, shares of our common stock at less than the last
reported sale price of a share of our common stock on the trading day
immediately preceding the declaration date of the distribution; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>distribute to all holders of our common stock, assets (including cash),
debt securities or rights to purchase securities, which distribution has
a per share value as determined by our board of directors exceeding 10%
of the last reported sale price of our common stock on the trading day
immediately preceding the declaration date for such distribution,</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt">we must notify holders of the debentures at least 20&nbsp;days prior to the
ex-dividend date for such distribution. Once we have given such notice, holders
may surrender their debentures for conversion at any time until the earlier of
the close of business on the business day immediately prior to the ex-dividend
date or any announcement that such distribution will not take place. No holder
may exercise this right to convert if the holder otherwise will participate in
the distribution without conversion. The &#147;ex-dividend&#148; date is the first date
upon which a sale of the common stock does not automatically transfer the right
to receive the relevant distribution from the seller of the common stock to its
buyer. Upon a surrender of your debentures for conversion, we will have the
right to deliver, in lieu of shares of our common stock, cash or a combination
of cash and shares of common stock in amounts described below under &#147;&#151; Payment
upon Conversion.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, if we are a party to a consolidation, merger or binding share
exchange, in each case pursuant to which our common stock would be converted
into cash or property other than securities, a holder may surrender debentures
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 and including the date
which is 15&nbsp;days after the actual effective date of such transaction. If we
engage in certain reclassifications of our common stock or are a party to a
consolidation, merger, binding share exchange or transfer of all or
substantially all of our assets, in each case pursuant to which our common
stock is converted into cash, securities or other property, then at the
effective time of the transaction, the right to convert a debenture into our
common stock will be changed into a right to convert a debenture into the kind
and amount of cash, securities or other property which a holder would have
received if the holder had converted its debentures immediately prior to the
applicable record date for such transaction. If we engage in any transaction
described in the preceding sentence, the conversion rate will not otherwise be
adjusted. If the transaction also constitutes a fundamental change, a holder
can require us to redeem all or a portion of its debentures as described under
&#147;&#151; Repurchase of Debentures by Us at the Option of the Holder upon a
Fundamental Change.&#148;


<P align="left" style="font-size: 10pt"><B>Conversion Upon Satisfaction Of Trading Price Condition</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may surrender your debentures for conversion into our common stock
prior to maturity during the five business day period after any five
consecutive trading day period in which the &#147;trading price&#148; per $1,000
principal amount of debentures, as determined following a request by a holder
of debentures in accordance with the procedures described below, for each day
of that period was less than 98% of the product of the last reported sale price
of our common stock and the conversion rate (the &#147;trading price condition&#148;);
provided that if, on the date of any conversion pursuant to the trading price
condition that is on or after October&nbsp;1, 2018, the sale price of our common
stock on the trading day before the conversion date is greater than 100% but
less than 120% of the conversion price, then holders surrendering debentures
for conversion will receive, in lieu of shares of our common stock based on the
then applicable conversion rate, an amount in cash or common stock or a
combination of cash and common stock, at our option, equal to the principal
amount of the debentures being converted plus accrued and unpaid interest
(including additional amounts, if any), as of the conversion date (a &#147;principal
value conversion&#148;). Any common stock delivered upon a principal value
conversion will be valued at the greater of the conversion price on the
conversion date and the average of the last reported sale price of our common
stock for a five trading day period starting the third trading day following
the conversion date of the debentures. Upon a surrender of your debentures for
conversion, we will have the right to deliver, in lieu of shares of our common
stock, cash or a combination of cash and shares of common stock in amounts
described below under &#147;&#151; Payment upon Conversion.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The &#147;trading price&#148; of the debentures on any date of determination means
the average of the secondary market bid quotations obtained by the trustee for
$5.0&nbsp;million principal amount of the debentures at approximately 3:30 p.m., New
York City time, on such determination date from three independent nationally
recognized securities dealers we select; provided that if at least three such
bids cannot reasonably be obtained by the trustee, but two such bids are
obtained, then the average of the two bids shall be used, and if only one such
bid can reasonably be obtained by the trustee, that one bid shall be used. If
the trustee cannot reasonably obtain at least one


<P align="center" style="font-size: 10pt">20
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">bid for $5.0&nbsp;million principal amount of debentures from an independent
nationally recognized securities dealer or in our reasonable judgment, the bid
quotations are not indicative of the secondary market value of the debentures,
then the trading price per $1,000 principal amount of debentures will be deemed
to be less than 98% of the product of the last reported sale price of our
common stock and the number of shares issuable upon conversion of $1,000
principal amount of the debentures.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with any conversion upon satisfaction of the above trading
price condition, the trustee (or other conversion agent appointed by us) shall
have no obligation to determine the trading price of the debentures unless we
have requested such determination; and we shall have no obligation to make such
request unless a holder provides us with reasonable evidence that the trading
price per $1,000 principal amount of debentures would be less than 98% of the
product of the last reported sale price of our common stock and the number of
shares of common stock issuable upon conversion of $1,000 principal amount of
the debentures. At such time, we shall instruct the trustee or conversion
agent, as the case may be, to determine the trading price of the debentures
beginning on the next trading day and on each successive trading day until, and
only until, the trading price per $1,000 principal amount of debentures is
greater than or equal to 98% of the product of the last reported sale price of
our common stock and the number of shares issuable upon conversion of $1,000
principal amount of the debentures.


<P align="left" style="font-size: 10pt"><B>Conversion Procedures</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To convert your debenture into common stock you must do each of the
following:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>complete and manually sign the conversion notice on the back of the
debenture, or a facsimile of the conversion notice, and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>deliver this notice to the conversion agent;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>surrender the debenture to the conversion agent;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if required, furnish appropriate endorsements and transfer documents;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if required, pay all transfer or similar taxes; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if required, pay funds equal to the interest payable on the next interest payment date.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The date you comply with all of these requirements is the conversion date
under the indenture. If your interest is a beneficial interest in a global
debenture, to convert you must comply with the last three requirements listed
above and comply with the depositary&#146;s procedures for converting a beneficial
interest in a global debenture.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion agent will, on your behalf, convert the debentures into
shares of our common stock. You may obtain copies of the required form of the
conversion notice from the conversion agent. Settlement of our obligation to
deliver shares and cash (if any) with respect to a conversion will occur on the
dates described under &#147;&#151; Payment upon Conversion&#148; below. Delivery of shares
will be accomplished by delivery to the conversion agent of certificates for
the relevant number of shares, other than in the case of holders of debentures
in book-entry form with DTC, which shares shall be delivered in accordance with
DTC customary practices. In addition, we will pay cash for any fractional
shares, as described above.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As described below under &#147;&#151; Payment upon Conversion,&#148; we will have the
right to deliver, in lieu of shares of our common stock, cash or a combination
of cash and shares of common stock in amounts described below under &#147;&#151; Payment
upon Conversion.&#148;


<P align="left" style="font-size: 10pt"><B>Payment Upon Conversion</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Conversion On or Prior to a Redemption Notice Date or the Final Notice
Date</I>. In the event that we receive your notice of conversion on or prior to (1)
the date on which we give notice of our optional redemption of debentures as
described under &#147;&#151; Optional Redemption by Us&#148; (a &#147;redemption notice date&#148;) or
(2)&nbsp;the date that is 20&nbsp;days prior to maturity (the &#147;final notice date&#148;), the
following procedures will apply:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If we choose to satisfy all or any portion of our obligation to
convert the debentures (the &#147;conversion obligation&#148;) in cash, we will
notify holders through the trustee of the dollar amount to be satisfied
in cash (which must be expressed either as 100% of the conversion
obligation or as a fixed dollar amount) at any time on or before the
date that is two business days following</TD>
</TR>

</TABLE>
<P align="center" style="font-size: 10pt">21
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"><TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the conversion date (the &#147;cash settlement notice period&#148;). If we timely
elect to pay cash for any portion of the shares otherwise issuable to
holders upon conversion, holders may retract the conversion notice at any
time during the two business days following the final day of the cash
settlement notice period (the &#147;conversion retraction period&#148;). No such
retraction can be made (and a conversion notice shall be irrevocable) if
we do not elect to deliver cash in lieu of shares (other than cash in lieu
of fractional shares). Upon the expiration of a conversion retraction
period, a conversion notice shall be irrevocable. If we elect to satisfy
all or any portion of the conversion obligation in cash, and the
conversion notice has not been retracted, then settlement (in cash or in
cash and shares) will occur on the business day following the final day of
the 20 trading day period beginning on the day after the final day of the
conversion retraction period (the &#147;cash settlement averaging period&#148;). If
we do not elect to satisfy any part of the conversion obligation in cash
(other than cash in lieu of any fractional shares), delivery of the shares
of common stock into which the debentures are converted (and cash in lieu
of any fractional shares) will occur through the conversion agent or DTC,
as the case may be, as described above as soon as practicable on or after
the conversion date.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlement amounts will be computed as follows:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If we elect to satisfy the entire conversion obligation in shares,
we will deliver to holders a number of shares equal to (i)&nbsp;the
aggregate principal amount of debentures to be converted divided by
$1,000 multiplied by (ii)&nbsp;the applicable conversion rate. In addition,
we will pay cash for any fractional share of common stock based on the
last reported sale price of the common stock on the trading day
immediately preceding the conversion date.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If we elect to satisfy the entire conversion obligation in cash, we
will deliver to holders cash in an amount equal to the product of:</TD>
</TR>

</TABLE>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a number equal to (i)&nbsp;the aggregate principal amount of
debentures to be converted divided by $1,000 multiplied by (ii)
the conversion rate, and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the average last reported sale price of shares of our
common stock during the cash settlement averaging period.</TD>
</TR>

</TABLE>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If we elect to satisfy a fixed portion (other than 100%) of the
conversion obligation in cash, we will deliver to holders the specified
cash amount (the &#147;cash amount&#148;) and a number of shares of our common
stock equal to the greater of (i)&nbsp;zero and (ii)&nbsp;the excess, if any, of
the number of shares calculated as if we elected to satisfy the entire
conversion obligation in shares over the number of shares equal to the
sum, for each day of the cash settlement averaging period, of (x)&nbsp;the
cash amount divided by the number of days in the cash settlement
averaging period, divided by (y)&nbsp;the last reported sale price of shares
of our common stock. In addition, we will pay cash for all fractional
shares of common stock based on the average last reported sale price of
the common stock during the cash settlement averaging period.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Additionally, if we are obligated to deliver shares to holders,
then if on the date you submit your notice of conversion (x)&nbsp;you hold
debentures that are neither registered under the Securities Act nor
immediately freely saleable pursuant to Rule 144(k) under the
Securities Act and (y)&nbsp;there exists a registration default as defined
under &#147;&#151; Registration Rights,&#148; we will deliver to holders an
additional number of shares equal to 3% of the number of shares
calculated above.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Trading day&#148; means a day during which trading in securities generally
occurs on the New York Stock Exchange or, if our common stock is not listed on
the New York Stock Exchange, on the principal other national or regional
securities exchange on which our common stock is then listed or, if our common
stock is not listed on a national or regional securities exchange, 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, on the principal other market on which our
common stock is then traded (provided that no day on which trading of our
common stock is suspended on such exchange or other trading market will count
as a trading day).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Conversion After a Redemption Notice Date or the Final Notice Date</I>. With
respect to conversion notices that we receive after a redemption notice date or
the final notice date, we will not send individual notices of our election to
satisfy all or any portion of the conversion obligation in cash. If we elect to
redeem all or a portion of the debentures, our notice of redemption will inform
the holders of our election to deliver shares of our common stock or cash with
respect to debentures converted prior to the redemption date as described above
under &#147;&#151; Optional Redemption.&#148; In addition, if we choose to satisfy all or any
portion of the conversion obligation with respect to conversions after the
final notice date in cash, on or before the final notice date we will send a
single notice to holders


<P align="center" style="font-size: 10pt">22
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">indicating the dollar amount to be satisfied in cash (which must be
expressed either as 100% of the conversion obligation or as a fixed dollar
amount).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that we receive notice of conversion after a redemption
notice date or the final notice date from holders of debentures, settlement
amounts will be computed and settlement dates will be determined in the same
manner as set forth above under &#147;&#151; Conversion On or Prior to a Redemption
Notice Date or the Final Notice Date,&#148; except that the &#147;cash settlement
averaging period&#148; shall be the 20 trading day period beginning on the trading
day after the conversion date. If a conversion notice is received from holders
of debentures after a redemption notice date or the final notice date, such
holders will not be allowed to retract the conversion notice. Settlement (in
cash and/or shares) will occur on the business day following the final day of
such cash settlement averaging period. If we do not elect to satisfy any part
of the conversion obligation in cash (other than cash in lieu of any fractional
shares), delivery of shares of common stock into which the debentures are
converted (and cash in lieu of any fractional shares) will occur through the
conversion agent or DTC, as the case may be, as described above as soon as
practicable on or after the conversion date.


<P align="left" style="font-size: 10pt"><B>Conversion Rate Adjustments</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The applicable conversion rate will be subject to adjustment, without
duplication, upon the occurrence of any of the following events:



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the payment to all holders of common stock of dividends or other
distributions payable in shares of our common stock;



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the issuance to all holders of our common stock of rights, warrants
or options (other than pursuant to any dividend reinvestment or share purchase
plans) entitling them, for a period of up to 45&nbsp;days from the date of issuance
of the rights, warrants or options, to subscribe for or purchase common stock
at less than the current market price thereof, provided that the applicable
conversion rate will be readjusted to the extent that such rights, warrants or
options are not exercised prior to their expiration;



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) subdivisions, splits and combinations of our common stock;



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) distributions to all holders of our common stock of evidences of our
indebtedness, shares of capital stock, securities, cash, property or assets
(excluding any dividend or distribution covered by clause (1)&nbsp;or (2)&nbsp;above and
any dividend or distribution paid exclusively in cash); in the event that we
make a distribution to all holders of our common stock consisting of capital
stock of, or similar equity interests in, a subsidiary or other business unit
of ours, the conversion rate will be adjusted based on the market value of the
securities so distributed relative to the current market price of our common
stock, in each case based on the average closing sale prices of those
securities for the 10 trading days commencing on and including the fifth
trading day after the date on which &#147;ex-dividend trading&#148; commences for such
dividend or distribution on the New York Stock Exchange or such other national
or regional exchange or market on which the securities are then listed or
quoted;



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the payment of dividends or distributions consisting exclusively of
cash to all holders of our common stock, excluding (a)&nbsp;any dividend or
distribution on our common stock paid after October&nbsp;1, 2008 to the extent that
the aggregate amount of such payment per share of common stock in any twelve
month period does not exceed 5% of the average of the last reported sale price
of the common stock during the ten trading days immediately prior to the
declaration date for such dividend or distribution; or (b)&nbsp;any dividend or
distribution in connection with our liquidation, dissolution or winding up; or



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) a payment by us or one of our subsidiaries in respect of a tender or
exchange offer for our common stock to the extent that the cash and value of
any other consideration included in the payment per share of common stock
exceeds the last reported sale price per share of our common stock on the
trading day next succeeding the last date on which tenders or exchanges may be
made pursuant to the tender or exchange offer.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an adjustment is required to be made under clause (5)&nbsp;above, the
conversion rate will be adjusted by multiplying the conversion rate in effect
on the record date with respect to the cash distribution by a fraction, (1)&nbsp;the
numerator of which will be the current market price of a share of our common
stock on the record date, and (2)&nbsp;the denominator of which will be the same
price of a share on the record date less the amount of the distribution that
exceeds the amount of dividends and distributions permitted to be excluded
pursuant to clause (5).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we or one of our subsidiaries makes a payment in respect of a tender or
exchange offer described in clause (6)&nbsp;above, the conversion rate will be
adjusted by multiplying the conversion rate by a fraction, (1)&nbsp;the numerator of
which will be the sum of (x)&nbsp;the



<P align="center" style="font-size: 10pt">23
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">fair market value, as determined by our board of directors, of the
aggregate consideration payable for all shares of our common stock that we
purchase in the tender or exchange offer and (y)&nbsp;the product of the number of
shares of our common stock outstanding, less any purchased shares, and the last
reported sale price of our common stock on the trading day next succeeding the
expiration of the tender or exchange offer and (2)&nbsp;the denominator of which
will be the product of the number of shares of our common stock outstanding,
including any purchased shares, and the last reported sale price of our common
stock on the trading day next succeeding the expiration of the tender or
exchange offer.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of debentures will receive, upon conversion of debentures, in
addition to shares of our common stock, the rights under our existing rights
plan unless, prior to the conversion, the rights have expired, terminated or
been redeemed or unless the rights have separated from our common stock, in
which case the applicable conversion rate will be adjusted at the time of
separation as if we distributed to all holders of our common stock shares of
our common stock, evidences of indebtedness or assets described in clause (4)
above, subject to readjustment upon the subsequent 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 debentures the holders
will receive, in addition to our common stock issuable upon such conversion,
the rights which would have attached to such shares of our common stock if the
rights had not become separated from our 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
debentures into our common stock, you will receive, in addition to our common
stock, the rights under the future rights plan whether or not the rights have
separated from our common stock at the time of conversion and no adjustment to
the conversion rate will be made in accordance with clause (4)&nbsp;above.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to these adjustments, we may increase the conversion rate as
our board of directors deems advisable to avoid or diminish any income tax to
holders of our capital stock resulting from any dividend or distribution of
capital stock (or rights to acquire capital stock) or from any event treated as
such for income tax purposes. We may also, from time to time, to the extent
permitted by applicable law, increase the conversion rate by any amount for any
period of at least 20&nbsp;days if our board of directors has determined that such
increase would be in our best interests. If our board of directors makes such a
determination, it will be conclusive. We will give holders of debentures at
least 15&nbsp;days&#146; notice of such an increase in the conversion rate. For a
discussion of the United States federal income tax treatment of an adjustment
to the conversion rate of the debentures, see &#147;Material U.S. Federal Income Tax
Considerations &#151; U.S. Holders &#151; Constructive Dividends&#148; and &#147;&#151; Non-U.S.
Holders &#151; Our Common Stock.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The &#147;current market price&#148; per share of common stock on any day means the
average of the last reported sale price for the 10 consecutive trading days
ending not later than the earlier of the day in question and the day before the
ex-dividend trading with respect to the issuance or distribution requiring the
computation. For purposes of this paragraph, the term &#147;ex-dividend trading,&#148;
when used with respect to any issuance or distribution, will mean the first
date on which the common stock trades regular way on the applicable exchange or
in the applicable market without the right to receive the issuance or
distribution.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No adjustment to the conversion rate or the ability of a holder of a
debenture to convert will be made if the holder will otherwise participate in
the distribution without conversion.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The applicable conversion rate will not be adjusted:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upon the issuance of any shares of our common stock pursuant to any
present or future plan providing for the reinvestment of dividends or
interest payable on our securities and the investment of additional
optional amounts in shares of our common stock under any plan;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upon the issuance of any shares of our common stock or options or
rights to purchase those shares pursuant to any present or future
employee, director or consultant benefit plan or program of or assumed by
us or any of our subsidiaries;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upon the issuance of any shares of our common stock pursuant to any
option, warrant, right or exercisable, exchangeable or convertible
security not described in the preceding bullet and outstanding as of the
date the debentures were first issued;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for a change in the par value of the common stock; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for accrued and unpaid interest (including additional amounts, if any).</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to the applicable conversion rate will be calculated to the
nearest 1/10,000th of a share. No adjustment to the applicable conversion rate
will be required unless the adjustment would require an increase or decrease of
at least 1% of the applicable


<P align="center" style="font-size: 10pt">24
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">conversion rate. However, any adjustments which are not required to be
made because they would have required an increase or decrease of less than 1%
will be carried forward and taken into account in any subsequent adjustment.


<P align="left" style="font-size: 10pt"><B>Repurchase Of Debentures By Us At The Option Of The Holder</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You have the right to require us to repurchase all or a portion of your
debentures on October&nbsp;1, 2008, October&nbsp;1, 2013 and October&nbsp;1, 2018 (each, a
&#147;repurchase date&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will be required to repurchase any outstanding debenture for which you
deliver a written repurchase notice to the paying agent (which will initially
be the trustee). This notice must be delivered during the period beginning at
any time from the opening of business on the date that is 20 business days
prior to the repurchase date until the close of business on the business day
prior to the repurchase date. You may withdraw your repurchase notice at any
time prior to the close of business on the business day prior to the repurchase
date. If a repurchase notice is given and withdrawn during that period, we will
not be obligated to repurchase the debentures listed in the notice. Our
repurchase obligation will be subject to certain additional conditions
described below.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The repurchase price payable will be equal to 100% of the principal amount
of the debentures to be repurchased plus any accrued and unpaid interest
(including additional amounts, if any) to, but excluding, the repurchase date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the case of any debentures that you require us to repurchase on October
1, 2008, we are required to pay the repurchase price in cash. In the case of
any debentures that you require us to repurchase on October&nbsp;1, 2013 or October
1, 2018, we may choose to pay the repurchase price in cash or shares of our
common stock or a combination of cash and shares of our common stock (provided
that in any event we will pay any accrued and unpaid interest (including
additional amounts, if any) in cash). Our right to pay all or any of the
repurchase price in shares of our common stock is subject to additional
conditions specified below.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we elect, for the October&nbsp;1, 2013 or October&nbsp;1, 2018 repurchase date,
to pay the repurchase price in whole or in part in shares of common stock, the
number of shares of common stock to be delivered by us will be equal to the
portion of the purchase price to be paid in shares of common stock divided by
98.5% of the market price of our common stock. The market price of our common
stock will be determined prior to the applicable repurchase date, as described
below. If we elect to pay the repurchase price in whole or in part in shares of
common stock, we will pay cash in lieu of fractional shares in an amount based
upon the market price of our common stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used under this caption and under &#147;&#151; Repurchase of Debentures by Us at
the Option of the Holder upon a Fundamental Change,&#148; &#147;market price&#148; means, with
respect to any repurchase date (including upon the occurrence of a fundamental
change) or other date of determination, the average of the last reported sale
price of our common stock for the 20 consecutive trading days ending on the
third business day prior to the applicable repurchase date or date of
determination, as the case may be (or, if such third business day is not a
trading day, then ending on the last trading day prior to such third business
day), appropriately adjusted to take into account the occurrence, during the
period commencing on the first trading day of such 20 trading-day period and
ending on the applicable repurchase date or date of determination, as the case
may be, of any event requiring an adjustment of the conversion rate under the
indenture.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because the market price of our common stock is determined prior to the
applicable repurchase date, you will bear the market risk with respect to the
value of the shares of our common stock, if any, to be received from the date
the market price is determined to the date you receive such shares. In
addition, the market price of our common stock is an average price rather than
the price as of a single date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On or before the 25th business day prior to each repurchase date, we will
provide to the trustee, the paying agent and all holders of debentures 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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the repurchase price;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the last date on which a holder may exercise the repurchase right;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the repurchase date;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">25
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether we will pay the repurchase price in cash, common stock or a
combination thereof, specifying the percentage or amount of each;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if we elect to pay the repurchase price in whole or in part in shares
of our common stock, the method of calculating the market price of our
common stock;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the name and address of the paying agent and the conversion agent;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the applicable conversion rate and any adjustments to the applicable conversion rate;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that the debentures with respect to which a repurchase election has
been given by the holder may be converted only if the holder withdraws
the repurchase election in accordance with the terms of the indenture; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the procedure that holders must follow to require us to repurchase
their debentures.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To exercise the repurchase right, you must deliver prior to the close of
business on the business day immediately preceding the repurchase date, subject
to extension to comply with applicable law, the debentures to be repurchased,
duly endorsed for transfer, together with a written repurchase election and the
form entitled &#147;Form of Repurchase Notice&#148; on the reverse side of the debentures
duly completed, to the paying agent. Your repurchase election must state:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if certificated debentures have been issued, the certificate numbers of the debentures to be repurchased;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the portion of the principal amount of debentures to be repurchased, which must be $1,000 or an integral multiple thereof;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that the debentures are to be repurchased by us pursuant to the
applicable provisions of the debentures and the indenture; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if we have elected to pay the repurchase price in shares of our common
stock but the repurchase price is ultimately to be paid to the holder
entirely in cash because any of the conditions to payment in common stock
is not satisfied prior to the close of business on the business day
immediately preceding the repurchase date, whether you elect:</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to withdraw the repurchase election as to some or all of the debentures to which it relates; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to receive cash in respect of the entire repurchase price for all debentures subject to the repurchase election.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you fail to indicate your choice with respect to this election, you
will be deemed to have elected to receive cash in respect of the entire
repurchase price for all debentures subject to the repurchase election in these
circumstances. For a discussion of the tax treatment of a holder receiving
cash, shares of common stock or any combination thereof, see &#147;Material U.S.
Federal Income Tax Considerations.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If your debentures are not in certificated form, your repurchase notice
must comply with appropriate DTC procedures.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No debentures 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 debentures.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may withdraw any repurchase notice (in whole or in part) by delivering
a written notice of withdrawal 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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the principal amount of the withdrawn debentures;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if certificated debentures have been issued, the certificate numbers of the withdrawn debentures; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the principal amount, if any, which remains subject to the repurchase notice.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If your debentures are not in certificated form, your withdrawal notice
must comply with appropriate DTC procedures.


<P align="center" style="font-size: 10pt">26
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To receive payment of the repurchase price, you must either effect
book-entry transfer of your debentures or deliver your debentures, together
with necessary endorsements, to the office of the paying agent after delivery
of your repurchase notice. Payment of the repurchase price for a debenture will
be made promptly following the later of the repurchase date and the time of
book-entry transfer or delivery of the debenture.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the paying agent holds money or securities sufficient to pay the
repurchase price of the debentures on the business day following the repurchase
date, then, on and after such date:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the debentures will cease to be outstanding and interest will cease
to accrue (whether or not book-entry transfer of the debentures has been
made or the debentures have been delivered to the paying agent);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>and all other rights of the holders will terminate (other than the
right to receive the repurchase price upon transfer or delivery of the
debentures).</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our right to pay the repurchase price for debentures in whole or in part
in shares of our common stock is subject to various conditions, including:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our providing timely written notice, as described above, of our
election to pay all or part of the repurchase price in shares of common
stock;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our common stock being then listed on a national or regional
securities exchange or quoted on the Nasdaq Automated Quotation System;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>information necessary to calculate the market price of our common
stock being published in a daily newspaper of national circulation or
being otherwise readily publicly available;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>registration of the shares of our common stock under the Securities
Act or the Exchange Act, in each case if required; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our obtaining any necessary qualification or registration under
applicable state securities law or the availability of an exemption from
such qualification and registration.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the required conditions are not satisfied with respect to a holder
prior to the close of business on the business day immediately preceding the
repurchase date, we will pay the repurchase price for such holder&#146;s debentures
entirely in cash. We may not change our election with respect to the form in
which we will pay the repurchase price once we have given the notice that we
are required to give, except as described in the preceding sentence.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will comply with the provisions of Rule&nbsp;13e-4 and any other tender
offer rules under the Exchange Act that may be applicable at the time of our
repurchase notice. If then required by the applicable rules, we will file a
Schedule&nbsp;TO or any other schedule required in connection with any offer by us
to repurchase the debentures.

<P align="left" style="font-size: 10pt"><B>Repurchase Of Debentures By Us At The Option Of The Holder Upon A Fundamental
Change</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a fundamental change (as defined below in this section) occurs at any
time prior to the maturity date, you will have the right, at your option, to
require us to repurchase any or all of your debentures, or any portion of the
principal amount thereof that is equal to $1,000 or an integral multiple of
$1,000. The fundamental change repurchase price we are required to pay is equal
to 100% of the principal amount of the debentures to be purchased plus accrued
and unpaid interest (including additional amounts, if any) to but excluding the
fundamental change repurchase date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may choose to pay the fundamental change repurchase price in cash or
shares of our common stock or a combination of cash and shares of our common
stock (provided that in any event we will pay any accrued and unpaid interest
(including additional amounts, if any) in cash).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we elect to pay the fundamental change repurchase price in whole or in
part in shares of common stock, the number of shares of common stock to be
delivered by us will be equal to the portion of the fundamental change
repurchase price to be paid in shares of common stock divided by 98.5% of the
market price of our common stock. The market price of our common stock will be
determined


<P align="center" style="font-size: 10pt">27
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">prior to the applicable fundamental change repurchase date, as described
under &#147;&#151; Repurchase of Debentures by Us at the Option of the Holder.&#148; If we
elect to pay the fundamental change repurchase price in whole or in part in
shares of common stock, we will pay cash in lieu of fractional shares in an
amount based upon the market price of our common stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because the market price of our common stock is determined prior to the
applicable fundamental change repurchase date, you will bear the market risk
with respect to the value of the shares of our common stock, if any, to be
received from the date the market price is determined to the date you receive
such shares. In addition, the market price of our common stock is an average
price rather than the price as of a single date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A &#147;fundamental change&#148; will be deemed to have occurred at the time after
the debentures are originally issued that any of the following occurs:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a &#147;person&#148; or &#147;group&#148; within the meaning of Section 13(d) of the
Exchange Act other than us, our subsidiaries or our or their employee
benefit plans, files a Schedule&nbsp;TO or any other schedule, form or report
under the Exchange Act disclosing that such person or group has become
the direct or indirect ultimate &#147;beneficial owner,&#148; as defined in Rule
13d-3 under the Exchange Act, of more than 50% of the total voting power
of all shares of our capital stock that are entitled to vote generally
in the election of directors; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>consummation of any share exchange, consolidation or merger of us or
any sale, lease or other transfer in one transaction or a series of
transactions of all or substantially all of the consolidated assets of
us and our subsidiaries, taken as a whole, to any person other than us
or one or more of our subsidiaries, pursuant to which our common stock
will be converted into cash, securities or other property; provided,
however, that a transaction where the holders of our voting capital
stock immediately prior to such transaction have, directly or
indirectly, more than 50% of the aggregate voting power of all shares of
capital stock of the continuing or surviving corporation or transferee
entitled to vote generally in the election of directors immediately
after such event shall not be a fundamental change.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A fundamental change will not be deemed to have occurred in respect of
either of the foregoing, however, if either:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the last reported sale price of our common stock for any five trading
days within the 10 consecutive trading days ending immediately before
the later of the fundamental change or the public announcement thereof,
equals or exceeds 105% of the applicable conversion price of the
debentures immediately before the fundamental change or the public
announcement thereof; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at least 90% of the consideration, excluding cash payments for
fractional shares, in the transaction or transactions constituting the
fundamental change consists of shares of capital stock traded on a
national securities exchange or quoted on the Nasdaq National Market or
which will be so traded or quoted when issued or exchanged in connection
with a fundamental change (these securities being referred to as
&#147;publicly traded securities&#148;) and as a result of this transaction or
transactions the debentures become convertible into such publicly traded
securities, excluding cash payments for fractional shares.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of the above paragraph the term &#147;capital stock&#148; of any person
means any and all shares (including ordinary shares or American Depositary
Shares), interests, participations or other equivalents however designated of
corporate stock or other equity participations, including partnership
interests, whether general or limited, of such person and any rights (other
than debt securities convertible or exchangeable into an equity interest),
warrants or options to acquire an equity interest in such person.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not less than 25 business days before the fundamental change repurchase
date, we will provide to all holders of the debentures 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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the events causing a fundamental change;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the date of the fundamental change;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the fundamental change repurchase price;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the last date on which a holder may exercise the fundamental change repurchase right;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">28
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the fundamental change repurchase date;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether we will pay the fundamental change repurchase price in cash,
common stock or a combination thereof, specifying the percentage or
amount of each;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if we elect to pay the fundamental change repurchase price in whole
or in part in common stock, the method of calculating the market price
of our common stock;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the name and address of the paying agent and the conversion agent;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the applicable conversion rate and any adjustments to the applicable conversion rate;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that the debentures with respect to which a fundamental change
repurchase election has been given by the holder may be converted only
if the holder withdraws the fundamental change repurchase election in
accordance with the terms of the indenture; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the procedure that holders must follow to require us to repurchase
their debentures.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To exercise the repurchase right, you must deliver prior to the close of
business on the business day immediately preceding the fundamental change
repurchase date, subject to extension to comply with applicable law, the
debentures to be repurchased, duly endorsed for transfer, together with a
written fundamental change repurchase election and the form entitled &#147;Form of
Fundamental Change Repurchase Notice&#148; on the reverse side of the debentures
duly completed, to the paying agent. Your fundamental change repurchase
election must state:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if certificated debentures have been issued, the certificate numbers of the debentures to be delivered for repurchase;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the portion of the principal amount of debentures to be repurchased, which must be $1,000 or an integral multiple thereof;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that the debentures are to be repurchased by us pursuant to the
applicable provisions of the debentures and the indenture; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if we have elected to pay the fundamental change repurchase price in
shares of our common stock but the fundamental change repurchase price
is ultimately to be paid to the holder entirely in cash because any of
the conditions to payment in common stock is not satisfied prior to the
close of business on the business day immediately preceding the
fundamental change repurchase date, whether you elect:</TD>
</TR>

</TABLE>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to withdraw the fundamental change repurchase election as
to some or all of the debentures to which it relates; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to receive cash in respect of the entire fundamental
change repurchase price for all debentures subject to the
fundamental change repurchase election.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you fail to indicate your choice with respect to this election, you
will be deemed to have elected to receive cash in respect of the entire
fundamental change repurchase price for all debentures subject to the
fundamental change repurchase election in these circumstances. For a discussion
of the tax treatment of a holder receiving cash, shares of common stock or any
combination thereof, see &#147;Material U.S. Federal Income Tax Considerations.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the debentures are not in certificated form, your notice must comply
with appropriate DTC procedures.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No debentures 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 debentures.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may withdraw any fundamental change repurchase election (in whole or
in part) by delivering a written notice of withdrawal 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 must state:


<P align="center" style="font-size: 10pt">29
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the principal amount of the withdrawn debentures;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if certificated debentures have been issued, the certificate numbers of the withdrawn debentures; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the principal amount, if any, which remains subject to the fundamental change repurchase notice.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the debentures are not in certificated form, your notice must comply
with appropriate DTC procedures.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To receive payment of the fundamental change repurchase price, you must
either effect book-entry transfer of your debentures or deliver your
debentures, together with necessary endorsements, to the office of the paying
agent after delivery of your fundamental change repurchase notice. Payment of
the fundamental change repurchase price for a debenture will be made promptly
following the later of the fundamental change repurchase date and the time of
book-entry transfer or delivery of the debenture.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will be required to repurchase the debentures no later than 35 business
days after the occurrence of the relevant fundamental change but in no event
prior to the date on which such fundamental change occurs. You 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 debentures. If the paying agent holds money or securities
sufficient to pay the fundamental change repurchase price of the debentures on
the business day following the fundamental change repurchase date, then, on and
after such date:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the debentures will cease to be outstanding and interest will cease
to accrue (whether or not book-entry transfer of the debentures has been
made or the debentures have been delivered to the paying agent); and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all other rights of the holders will terminate (other than the right
to receive the fundamental change repurchase price upon transfer or
delivery of the debentures).</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our right to pay the fundamental change repurchase price for debentures in
whole or in part in shares of our common stock is subject to the conditions
described under &#147;&#151; Repurchase of Debentures by Us at the Option of the
Holder.&#148; If the required conditions are not satisfied with respect to a holder
prior to the close of business on the business day immediately preceding the
fundamental change repurchase date, we will pay the fundamental change
repurchase price for such holder&#146;s debentures entirely in cash. We may not
change our election with respect to the form in which we will pay the
fundamental change repurchase price once we have given the notice that we are
required to give, except as described in the preceding sentence.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will comply with the provisions of Rule&nbsp;13e-4 and any other tender
offer rules under the Exchange Act that may be applicable at the time of our
repurchase of debentures upon a fundamental change. If then required by the
applicable rules, we will file a Schedule&nbsp;TO or any other schedule required in
connection with any offer by us to repurchase the debentures.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rights of the holders to require us to repurchase their debentures
upon a fundamental change 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 accumulate shares of our
common stock, to obtain control of us by any means or part of a plan by
management to adopt a series of anti-takeover provisions. Instead, the
fundamental change repurchase feature is a standard term contained in other
offerings of debt securities similar to the debentures that have been marketed
by the initial purchasers. The terms of the fundamental change repurchase
feature resulted from negotiations between the initial purchasers and us.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;fundamental change&#148; is limited to specified transactions and may
not include other events that might adversely affect our financial condition.
In addition, the requirement that we offer to repurchase the debentures upon a
fundamental change may not protect holders in the event of a highly leveraged
transaction, reorganization, merger or similar transaction involving us.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 consolidated 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 debentures to require us to repurchase its debentures as a result
of the conveyance, transfer, sale, lease or other disposition of less than all
of our assets may be uncertain.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a fundamental change were to occur, we may not have enough funds to pay
the fundamental change repurchase price. If we fail to repurchase the
debentures 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 (including our new senior secured credit facility) with similar
change in control


<P align="center" style="font-size: 10pt">30
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">provisions permitting our holders to accelerate or to require us to
purchase our indebtedness upon the occurrence of similar events or on some
specific dates.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our obligation to make a repurchase upon a fundamental change will be
satisfied if a third party makes the fundamental change repurchase offer in the
manner and at the times and otherwise in compliance in all material respects
with the requirements applicable to a fundamental change repurchase offer made
by us, purchases all debentures properly tendered and not withdrawn under the
fundamental change repurchase offer and otherwise complies with its obligations
in connection therewith.


<P align="left" style="font-size: 10pt"><B>Subordination</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment on the debentures is, to the extent provided in the indenture,
subordinated in right of payment to the prior payment in full of all of our
senior indebtedness. The debentures also are effectively subordinated to all
debt and other liabilities, including trade payables and lease obligations, if
any, of our subsidiaries.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon any distribution of our assets upon any dissolution, winding up,
liquidation or reorganization of Quanta, whether voluntary or involuntary and
whether or not involving bankruptcy, or upon any assignment for the benefit of
creditors or any other marshalling of our assets and liabilities, payment of
the principal of, or premium, if any, and interest on the debentures will be
subordinated in right of payment to the prior payment in full of all senior
indebtedness in cash or other payment satisfactory to the holders of senior
indebtedness.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may not make any payment on, or repurchase or redeem, the debentures if:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a default occurs in the payment of principal of, premium, if any, or
interest on any senior indebtedness when due (called a &#147;payment
default&#148;) whether by acceleration or otherwise; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a default other than a payment default on any designated senior
indebtedness (as defined below) occurs and is continuing (or would occur
as a result of such payment) that permits holders of such designated
senior indebtedness to accelerate its maturity, and we and the trustee
receive a notice of such default (called a &#147;payment blockage notice&#148;)
from any holder of such designated senior indebtedness (called a
&#147;non-payment default&#148;).</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may resume payments and distributions on the debentures:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in case of a payment default, upon the date on which such default
(including any acceleration) is cured or waived or ceases to exist; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in case of a non-payment default, upon the earliest of (1)&nbsp;the date
on which such non-payment default is cured or waived or ceases to exist,
(2)&nbsp;180&nbsp;days after the date on which the payment blockage notice is
received or (3)&nbsp;the date the payment blockage is terminated by notice to
the trustee and us from the person who gave the payment blockage notice.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No new period of payment blockage may be commenced pursuant to a payment
blockage notice unless 360&nbsp;days have elapsed since the initial effectiveness of
the immediately prior payment blockage notice, and there must be at least 181
consecutive days in each 360-day period when no payment blockage is in effect.
No payment default or non-payment default that existed or was continuing on the
date of commencement of any payment blockage period shall be the basis for the
commencement of a subsequent payment blockage period, unless such default has
been cured for a period of at least 90 consecutive days.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the trustee or any holder of the debentures receives any payment in
contravention of the subordination provisions on the debentures before all
senior indebtedness is paid in full in cash or other payment satisfactory to
the holders of senior indebtedness, then such payment must be paid over for the
benefit of the holders of senior indebtedness to the extent necessary to make
payment in full to the holders of all unpaid senior indebtedness.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon (but not before) the payment in full of all designated senior
indebtedness, the holders of the debentures shall (to the extent that amounts
otherwise payable to such holders have been paid to the holders of designated
senior indebtedness) be subrogated to the rights of any holder of designated
senior indebtedness to receive any further payments or distributions applicable
to the designated senior indebtedness until the debentures are paid in full;
and such payments or distributions received by the holders of the debentures by
reason of such subrogation, which otherwise would be paid or distributed to the
holders of designated senior indebtedness, shall, as


<P align="center" style="font-size: 10pt">31
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">between Quanta and its creditors other than the holder of designated
senior indebtedness, on the one hand, and the holders of debentures, on the
other hand, be deemed to be a payment by Quanta on account of designated senior
indebtedness and not on account of the debentures.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of our bankruptcy, dissolution or reorganization, holders of
senior indebtedness may receive more, ratably, and holders of the debentures
may receive less, ratably, than our other creditors. This subordination will
not prevent the occurrence of any event of default under the indenture. See &#147;&#151;
Events of Default; Notice and Waiver&#148; for a description of the events of
default and associated remedies.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The debentures are exclusively obligations of Quanta. Our operations are
conducted through our subsidiaries. As a result, our cash flow and our ability
to service our debt, including the debentures, is dependent upon the earnings
of our subsidiaries. In addition, we are dependent on the distribution of
earnings, loans or other payments by our subsidiaries to us.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our subsidiaries are separate and distinct legal entities. Our
subsidiaries have no obligation to pay any amounts due on the debentures. Our
subsidiaries are not required to provide us with funds for our payment
obligations, whether by dividends, distributions, loans or other payments. In
addition, any payment of dividends, distributions, loans or advances by our
subsidiaries to us could be subject to statutory or contractual restrictions.
Payments to us by our subsidiaries will also be contingent upon our
subsidiaries&#146; earnings and business considerations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our right to receive any assets of any of our subsidiaries upon their
liquidation or reorganization, and therefore the right of the holders to
participate in those assets, will be effectively subordinated to the claims of
that subsidiary&#146;s creditors, including trade creditors. In addition, even if we
were a creditor to any of our subsidiaries, our rights as a creditor would be
subordinated to any security interest in the assets of our subsidiaries and any
indebtedness of our subsidiaries&#146; senior to that held by us.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The debentures rank equally in right of payment with our $172.5 in
aggregate principal amount of 4% convertible subordinated notes due 2007. Any
amounts borrowed by us under our new credit facility will constitute senior
indebtedness. The debentures are also effectively subordinated to the
liabilities of our subsidiaries, and, as of June&nbsp;30, 2004, our subsidiaries had
approximately $3.2&nbsp;million of indebtedness. Neither we nor our subsidiaries are
prohibited from incurring indebtedness, including senior indebtedness, under
the indenture. We may from time to time incur additional indebtedness,
including senior indebtedness. Our subsidiaries may also from time to time
incur other additional indebtedness and liabilities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are obligated to pay reasonable compensation to the trustee and to
indemnify the trustee against certain losses, liabilities or expenses incurred
by the trustee in connection with its duties under the indenture. The trustee&#146;s
claims for these payments will generally be senior to those of holders of
debentures in respect of all funds collected by the trustee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Credit Agreement&#148; means the Fourth Amended and Restated Secured Credit
Agreement, dated as of November&nbsp;12, 2003, among Quanta, the lenders named
therein and Bank of America, N.A., as administrative agent, including any
debentures, guarantees, collateral documents, instruments and agreements
executed in connection therewith, and in each case as amended (including any
amendment and restatement thereof), modified, extended, renewed, refunded,
substituted or replaced or refinanced from time to time, including any
agreement extending the maturity of, refinancing, replacing or otherwise
restructuring (including increasing the amount of available borrowings
thereunder or adding subsidiaries of Quanta as additional borrowers or
guarantors thereunder), all or any portion of the Indebtedness under such
agreement or any successor or replacement agreement and whether by the same or
any other agents, creditor, lender or group of creditors or lenders.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Designated senior indebtedness&#148; means senior indebtedness under the
Credit Agreement and our obligations under any other particular senior
indebtedness that expressly provides that such senior indebtedness shall be
&#147;designated senior indebtedness&#148; for purposes of the indenture.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Indebtedness&#148; means:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all indebtedness, obligations and other liabilities for borrowed
money, including commitment or standby fees, enforcement expenses,
collateral protection expenses and other reimbursement indemnity
obligations with respect to such indebtedness, overdrafts, foreign
exchange contracts, currency exchange agreements, interest rate
protection agreements, and any loans or advances from banks, or
evidenced by bonds, debentures, notes or similar instruments, other than
any account payable or</TD>
</TR>

</TABLE>
<P align="center" style="font-size: 10pt">32
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"><TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>other accrued current liability or obligation incurred in the ordinary
course of business in connection with the obtaining of materials or
services;</TD>
</TR>

</TABLE>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>obligations with respect to letters of credit, bank guarantees or
bankers&#146; acceptances;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>obligations in respect of leases required in conformity with
generally accepted accounting principles to be accounted for as
capitalized lease obligations on our balance sheet;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all obligations and other liabilities under any lease or related
document in connection with the lease of real property that provides
that we are contractually obligated to purchase or cause a third party
to purchase the leased property and thereby guarantee a minimum residual
value of the leased property to the lessor and our obligations under the
lease or related document to purchase or to cause a third party to
purchase the leased property;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all obligations with respect to an interest rate or other swap, cap
or collar agreement or foreign currency hedge, exchange or purchase
agreement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all direct or indirect guaranties or similar agreements in respect of
our obligations or liabilities to purchase, acquire or otherwise assure
a creditor against loss in respect of, indebtedness, obligations or
liabilities of others of the type described in (1)&nbsp;through (5)&nbsp;above;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any obligations described in (1)&nbsp;through (5)&nbsp;above secured by any
mortgage, pledge, lien or other encumbrance existing on property which
is owned or held by us; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any renewals, extensions, refundings, refinancings, restructurings,
amendments or modifications to (1)&nbsp;through (7)&nbsp;above.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Senior indebtedness&#148; means the principal, premium, if any, interest,
including any interest accruing after bankruptcy, and rent or termination
payments on or other amounts due on our current or future Indebtedness, whether
created, incurred, assumed, guaranteed or in effect guaranteed by us, but only
to the extent that the same are not treated as &#147;unsecured indebtedness&#148; for
purposes of section 279 of the Internal Revenue Code. However, all amounts
owing by Quanta under the Credit Agreement will constitute senior indebtedness,
and senior indebtedness will not include:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Indebtedness that expressly provides that it shall not be senior in
right of payment to the debentures or expressly provides that it is on
the same basis or junior to the debentures;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our Indebtedness to any of our majority-owned subsidiaries; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the debentures.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt"><B>Merger And Sale Of Assets By Us</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The indenture provides that we may not consolidate with or merge with or
into any other person or sell, convey, transfer or lease our properties and
assets substantially as an entirety to another person, unless:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we are the surviving person, or the resulting, surviving or
transferee person, if other than us, is organized and existing under the
laws of the United States, any state thereof or the District of
Columbia;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the successor person assumes all of our obligations under the
debentures and the indenture;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>immediately after giving effect to such transaction, there is no
event of default or event that, with notice or passage of time or both,
would become an event of default; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we have delivered to the trustee an officers&#146; certificate and an
opinion of counsel each stating that such consolidation, merger, sale,
conveyance, transfer or lease complies with these requirements.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">33
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon any permitted consolidation, merger, conveyance, transfer or lease,
the resulting, surviving or transferee person shall succeed to and be
substituted for us, and may exercise our rights and powers under the indenture
and the debentures, and after any such contemplated transaction, we will be
relieved of all obligations and covenants under the indenture and the
debentures.


<P align="left" style="font-size: 10pt"><B>Events Of Default; Notice And Waiver</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following will be events of default under the indenture:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we fail to pay principal of the debentures when due at maturity, upon redemption, upon repurchase or otherwise;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we fail to pay any interest (including additional amounts, if any) on
the debentures when due and such failure continues for a period of 30
days;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we fail to provide notice of the occurrence of a fundamental change on a timely basis;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we default in our obligation to convert the debentures upon exercise of a holder&#146;s conversion right;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we default in our obligation to repurchase the debentures at the
option of a holder upon a fundamental change or on any other repurchase
date;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we default in our obligation to redeem the debentures after we have
exercised our option to redeem;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we fail to perform or observe any of the other covenants in the
indenture for 60&nbsp;days after written notice to us from the trustee or the
holders of at least 25% in aggregate principal amount of the outstanding
debentures;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>default by us or any of our subsidiaries in the payment of the
principal or interest on any mortgage, agreement or other instrument
under which there may be outstanding, or by which there may be secured
or evidenced, any of our indebtedness or indebtedness of any of our
subsidiaries for money borrowed in excess of $10.0&nbsp;million in the
aggregate, whether such indebtedness now exists or shall hereafter be
created, resulting in such indebtedness becoming or being declared due
and payable, and such acceleration shall not have been rescinded or
annulled within 30&nbsp;days after written notice of such acceleration has
been received by us or such subsidiary;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>final unsatisfied judgments not covered by insurance aggregating in
excess of $10.0&nbsp;million rendered against us or any of our subsidiaries
and not stayed, bonded or discharged within 60&nbsp;days; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certain events involving our bankruptcy, insolvency or
reorganization.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our obligations under the indenture are not intended to provide creditors&#146;
rights in bankruptcy for amounts in excess of par plus accrued and unpaid
interest (including additional amounts, if any). The trustee may withhold
notice to the holders of the debentures of any default, except defaults in
payment of principal or interest (including additional amounts, if any) on the
debentures. However, the trustee must consider it to be in the interest of the
holders of the debentures to withhold this notice.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an event of default occurs and is continuing, the trustee or the
holders of at least 25% in aggregate principal amount of the outstanding
debentures may declare the principal and accrued and unpaid interest (including
additional amounts, if any) on the outstanding debentures to be immediately due
and payable. In case of certain events of bankruptcy or insolvency involving
us, the principal and accrued and unpaid interest (including additional
amounts, if any) on the debentures will automatically become due and payable.
However, if we cure all defaults, except the non-payment of principal or
interest (including additional amounts, if any) that became due as a result of
the acceleration, and meet certain other conditions, with certain exceptions,
this declaration may be cancelled and the holders of a majority of the
principal amount of outstanding debentures may waive these past defaults.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holders of a majority of outstanding debentures will have the right to
direct the time, method and place of any proceedings for any remedy available
to the trustee, subject to limitations specified in the indenture.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No holder of the debentures may pursue any remedy under the indenture,
except in the case of a default in the payment of principal or interest
(including additional amounts, if any) on the debentures, unless:


<P align="center" style="font-size: 10pt">34
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the holder has given the trustee written notice of an event of
default;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the holders of at least 25% in aggregate principal amount of
outstanding debentures make a written request, and offer reasonable
indemnity, to the trustee to pursue the remedy;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the trustee does not receive an inconsistent direction from the
holders of a majority in principal amount of the debentures;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the holder or holders have offered reasonable security or indemnity
to the trustee against any costs, liability or expense of the trustee;
or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the trustee fails to comply with the request within 60&nbsp;days after
receipt of the request and offer of reasonable indemnity.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The indenture requires us every year to deliver to the trustee a statement
as to performance of our obligations under the indenture and as to any
defaults.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A default in the payment of the debentures, or a default with respect to
the debentures that causes them to be accelerated, may give rise to a
cross-default under our credit facility or other indebtedness.


<P align="left" style="font-size: 10pt"><B>Satisfaction And Discharge Of The Indenture</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The indenture will generally cease to be of any further effect with respect to the debentures, if:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we have delivered to the trustee for cancellation all outstanding debentures (with certain limited exceptions); or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all debentures not previously delivered to the trustee for
cancellation have become due and payable, whether at stated maturity or
any redemption date or any repurchase date (including upon the
occurrence of a fundamental change), or upon conversion or otherwise,
and we have deposited with the trustee as trust funds the entire amount
in cash and/or our common stock (as applicable under the terms of the
indenture) sufficient to pay all the outstanding debentures,</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt">and if, in either case, we also pay or cause to be paid all other sums payable
under the indenture by us.


<P align="left" style="font-size: 10pt"><B>Modification And Waiver</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consent of the holders of a majority in principal amount of the
outstanding debentures is required to modify or amend the indenture. However, a
modification or amendment requires the consent of the holder of each
outstanding debenture if it would:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>extend the fixed maturity of any debenture;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the rate or extend the time for payment of interest (including additional amounts, if any) on any debenture;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the principal amount of any debenture;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce any amount payable upon redemption or repurchase of any debenture;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>affect our obligation to redeem any debentures on a redemption date in a manner adverse to such holder;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>affect our obligation to repurchase any debenture at the option of the holder in a manner adverse to such holder;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>affect our obligation to repurchase any debenture upon a fundamental change in a manner adverse to such holder;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>impair the right of a holder to institute suit for payment on any debenture;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>change the currency in which any debenture is payable;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">35
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>impair the right of a holder to convert any debenture or reduce the
number of shares of common stock or any other property receivable upon
conversion;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the quorum or voting requirements under the indenture;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>change any obligation of ours to maintain an office or agency in the
places and for the purposes specified in the indenture;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>subject to specified exceptions, modify certain of the provisions of
the indenture relating to modification or waiver of provisions of the
indenture; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the percentage of debentures required for consent to any
modification of the indenture.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are permitted to modify certain provisions of the indenture without the
consent of the holders of the debentures, including to:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>secure any debentures;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>add a guarantor under the indenture;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>evidence the assumption of our obligations by a successor person;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>surrender any of our rights or powers under the indenture (including,
without limitation, our right to pay any part of the repurchase price of
the debentures with shares of common stock as provided for by the
indenture existing on a date after the date of such amendment);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>add covenants for the benefit of the holders of debentures;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>cure any ambiguity or correct any inconsistency in the indenture;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make any changes or modifications necessary in connection with the
registration of the debentures under the Securities Act as contemplated
by the registration rights agreement, so long as any such change or
modification will not materially adversely affect the interests of the
holders of the debentures;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>modify or amend the indenture to permit the qualification of the
indenture or any supplemental indenture under the Trust Indenture Act of
1939 as then in effect;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>evidence the acceptance of appointment by a successor trustee; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make other changes to the indenture or forms or terms of the
debentures, provided no such change individually or in the aggregate
with all other such changes has or will have a material adverse effect
on the interests of the holders of the debentures.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt"><B>Calculations In Respect Of Debentures</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise specified, we will be responsible for making all
calculations called for under the debentures. These calculations include, but
are not limited to, determinations of the market prices of our common stock,
the amount of accrued interest (including additional amounts, if any) payable
on the debentures and the conversion price of the debentures. We will make all
these calculations in good faith, and, absent manifest error, our calculations
will be final and binding on holders of debentures. We will provide a schedule
of our calculations to each of the trustee and the conversion agent, and each
of the trustee and the conversion agent is entitled to rely upon the accuracy
of our calculations without independent verification. The trustee will forward
our calculations to any holder of debentures upon the request of that holder.


<P align="center" style="font-size: 10pt">36
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>Information Concerning The Trustee</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have appointed Wells Fargo Bank, N.A., the trustee under the indenture,
as paying agent, conversion agent, debenture registrar and custodian for the
debentures. The trustee or its affiliates may also provide banking and other
services to us in the ordinary course of their business.


<P align="left" style="font-size: 10pt"><B>Governing Law</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The debentures and the indenture are governed by, and construed in
accordance with, the laws of the State of New York.


<P align="left" style="font-size: 10pt"><B>Form, Denomination, Exchange, Registration And Transfer</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The debentures were issued:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in fully registered form;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>without interest coupons; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in denominations of $1,000 principal amount and integral multiples of $1,000.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders may present debentures for conversion, registration of transfer
and exchange at the office maintained by us for such purpose, which will
initially be the Corporate Trust Office of the trustee in The City of New York.


<P align="left" style="font-size: 10pt"><B>Payment And Paying Agent</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will maintain an office in the Borough of Manhattan, The City of New
York, where we will pay the principal on the debentures and you may present the
debentures for conversion, registration of transfer or exchange for other
denominations, which shall initially be an office or agency of the trustee. We
may pay interest by check mailed to your address as it appears in the debenture
register, provided that if you are a holder with an aggregate principal amount
in excess of $2.0&nbsp;million, you will be paid, at your written election, by wire
transfer in immediately available funds.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, payments to The Depository Trust Company, New York, New York,
which we refer to as DTC, will be made by wire transfer of immediately
available funds to the account of DTC or its nominee.


<P align="left" style="font-size: 10pt"><B>Notices</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise described herein, notice to registered holders of the
debentures will be given by mail to the addresses as they appear in the
security register. Notices will be deemed to have been given on the date of
such mailing.


<P align="left" style="font-size: 10pt"><B>Registration Rights</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At our cost, for the benefit of the holders of the debentures and the
common stock issuable upon conversion of the debentures, we filed with the SEC
a shelf registration statement, of which this prospectus is a part, covering
resales of the debentures and the common stock issuable upon conversion of the
debentures. The shelf registration statement was declared effective by the SEC
on February&nbsp;12, 2004. We will use commercially reasonable efforts to keep the
shelf registration statement effective until the earlier of:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the second anniversary of the last date of original issuance of the
debentures;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the expiration of the holding period applicable to the debentures
and the shares of common stock issuable upon conversion of the
debentures held by non-affiliates under Rule 144(k) under the
Securities Act; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such time as all of the debentures and the common stock issuable
upon conversion thereof cease to be outstanding or have been sold
either pursuant to the shelf registration statement or pursuant to Rule
144 under the Securities Act or any similar provision then in force.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">37
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may 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 under certain circumstances relating to pending
corporate developments, public filings with the SEC and similar events. Any
suspension period shall not exceed an aggregate of:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>45&nbsp;days in any 90-day period; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>120&nbsp;days for all periods in any 360-day period.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, if the disclosure relates to a previously undisclosed proposed or
pending material business transaction, the disclosure of which we determine in
good faith would be reasonably likely to impede our ability to consummate such
transaction, we may extend the suspension period from 45&nbsp;days to 60&nbsp;days. We
need not specify the nature of the event giving rise to a suspension in any
notice to holders of the debentures of the existence of such a suspension. Each
holder, by its acceptance of the debentures, agrees to hold any communication
by us in response to a notice of a proposed sale in confidence.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We refer to each of the following as a registration default:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the registration statement has not been filed prior to or on the
90th day following the first date of original issuance of any of the
debentures; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the registration statement has not been declared effective prior to
or on the 210th day following the first date of original issuance of
any of the debentures, which we refer to as the effectiveness target
date; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at any time after the effectiveness target date, the registration
statement ceases to be effective or fails to be usable and (1)&nbsp;we do
not cure the registration statement within ten business days by a
post-effective amendment, prospectus supplement or report filed
pursuant to the Exchange Act, (2)&nbsp;if applicable, we do not terminate
the suspension period, described in the preceding paragraph, by the
45th or 60th day, as the case may be, or (3)&nbsp;a suspension period, when
aggregated with other suspension periods during the prior 360-day
period, continues, unterminated, for more than 120&nbsp;days.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a registration default occurs (other than a registration default
relating to a failure to file or have an effective registration statement with
respect to the shares of common stock), liquidated damages in the form of
additional cash interest, which we refer to as &#147;additional amounts,&#148; will
accrue on the debentures that are transfer restricted securities, from and
including the day following the registration default to but excluding the
earlier of (1)&nbsp;the day on which the registration default has been cured, and
(2)&nbsp;the date the registration statement is no longer required to be kept
effective. Additional amounts will be paid semiannually in arrears on each
April 1 and October 1 and will accrue at a rate per year equal to:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>0.25% of the principal amount of a debenture to and including the 90th day following such registration default; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>0.50% of the principal amount of a debenture from and after the 91st day following such registration default.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In no event will additional amounts exceed 0.50% per year. If a holder
converts some or all of its debentures into common stock when there exists a
registration default with respect to the common stock, the holder will not be
entitled to receive additional amounts on such common stock, but will receive
additional shares upon conversion equal to 3% of the applicable conversion rate
for each $1,000 original principal amount of debentures (except to the extent
we elect to deliver cash upon conversion). In addition, such holder will
receive, on the settlement date for any debentures submitted for conversion
during a registration default, accrued and unpaid additional amounts to the
conversion date relating to such settlement date. If a registration default
with respect to the common stock occurs after a holder has converted its
debentures into common stock, such holder will not be entitled to any
compensation with respect to such common stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A holder who elects to sell securities pursuant to the shelf registration statement will:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>be required to be named as a selling security holder in the related prospectus;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>be required to deliver a prospectus to purchasers;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>be subject to the civil liability provisions under the Securities Act in connection with any sales; and</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">38
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>be subject to the provisions of the registration rights agreement, including indemnification provisions.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the registration rights agreement we will:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>pay all expenses of the shelf registration statement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provide each registered holder with copies of the prospectus;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>notify holders when the shelf registration statement has become effective; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>take other reasonable actions as are required to permit
unrestricted resales of the debentures and common stock issued upon
conversion of the debentures in accordance with the terms and
conditions of the registration rights agreement.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders must complete and deliver to us a form of notice and questionnaire
prior to any intended distribution of debentures or common stock issuable upon
conversion of the debentures pursuant to the shelf registration statement.
Holders must complete and deliver the questionnaire to us on or prior to the
15th business day before the effectiveness of the registration statement in
order to be named as a selling security holder in the related prospectus at the
time of effectiveness. Upon receipt of a completed questionnaire after that
time, together with any other information we may reasonably request from a
security holder, we will, within ten business days of receipt, file any
amendments to the shelf registration statement or supplements to the related
prospectus as are necessary to permit the holder to deliver a prospectus to
purchasers of such debentures or shares of common stock, subject to our right
to suspend the use of the prospectus. We will pay the predetermined additional
amounts described above to the holder if we fail to make the filing in the time
required or, if such filing is a post-effective amendment to the shelf
registration statement required to be declared effective under the Securities
Act, if such amendment is not declared effective within 60&nbsp;days of the date on
which the amendment was required to be filed. Any holder that does not timely
complete and deliver a questionnaire or provide the other information we may
request will not be named as a selling security holder in the prospectus and
will not be permitted to sell the securities pursuant to the shelf registration
statement.


<P align="center" style="font-size: 10pt">39
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="109"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>DESCRIPTION OF CAPITAL STOCK</B>



<P align="left" style="font-size: 10pt"><B>General</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under our certificate of incorporation, our authorized capital stock
consists of 300,000,000 shares of common stock, par value $.00001 per share,
3,345,333 shares of limited vote common stock, par value $.00001 per share, and
10,000,000 shares of preferred stock, par value $.00001 per share. As of
September&nbsp;1, 2004, there were approximately 116,199,282 shares of common stock,
and approximately 1,051,067 shares of limited vote common stock, issued and
outstanding. As of the date of this prospectus, we have no preferred stock
outstanding.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following description of our capital stock is subject to our
certificate of incorporation, bylaws, stockholder rights plan and the
applicable provisions of Delaware law.


<P align="left" style="font-size: 10pt"><B>Common Stock And Limited Vote Common Stock</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of common stock are entitled to one vote for each share held of
record on all matters on which stockholders are entitled or permitted to vote,
including the election of directors. There is no cumulative voting for the
election of directors.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of limited vote common stock are entitled to elect one member of
our board of directors but are not otherwise entitled to vote on the election
of directors. Holders of limited vote common stock are entitled to one-tenth of
one vote for each share held of record on all other matters on which
stockholders are entitled or permitted to vote.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to preferences that may be applicable to any outstanding shares of
preferred stock, holders of common stock and limited vote common stock are
entitled to receive dividends, on a pro rata basis, when and as declared by the
board of directors out of legally available funds. In the event of our
liquidation, dissolution or winding up, holders of common stock and limited
vote common stock are entitled to share ratably in all assets remaining after
payment of liabilities and the liquidation preferences of any then outstanding
shares of preferred stock. Holders of common stock and limited vote common
stock have no preemptive rights. Shares of common stock are not subject to any
redemption provisions and are not convertible into any of our other securities.
Shares of limited vote common stock are not subject to any redemption
provisions and are not convertible into any other securities, except that each
share of limited vote common stock will automatically convert into common stock
on a share-for-share basis immediately upon a sale of such shares.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is traded on the NYSE under the symbol &#147;PWR&#148; and the
transfer agent and registrar for our common stock is American Stock Transfer &#038;
Trust Company.


<P align="left" style="font-size: 10pt"><B>Preferred Stock</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our certificate of incorporation authorizes our board of directors to
provide for the issuance of preferred stock in one or more series, without
stockholder action. Our board of directors is authorized to fix the
designation, powers, preferences and rights, and the qualifications,
limitations and restrictions of the shares of each series of preferred stock we
issue. For each series of preferred stock our board is able to specify the
following:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the designation of each series;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number of shares of each series;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the rate of any dividends;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether any dividends shall be cumulative or non-cumulative;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the terms of any redemption rights;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether there will be any sinking fund for the redemption of any shares;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the terms of any conversion or exchange right;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">40
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any restrictions or limitations on the issuance of shares of the same series or any other series;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the amount payable in the event of any voluntary or involuntary
liquidation, dissolution or winding up of our company; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the extent to which holders of the shares will be entitled to
vote.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although no shares of preferred stock are currently outstanding and we
have no current plans to issue preferred stock, except for such shares of
Series&nbsp;D Junior Participating Preferred Stock issuable upon exercise of the
rights under our stockholder rights plan, the issuance of shares of our
preferred stock, or the issuance of rights to purchase shares of our preferred
stock, could be used to discourage an unsolicited acquisition proposal. For
example, we could impede a business combination by issuing a series of our
preferred stock containing class voting rights that would enable the holder or
holders of such series to block that transaction. Alternatively, we could
facilitate a business combination by issuing a series of our preferred stock
having sufficient voting rights to provide a required percentage vote of the
stockholders. In addition, under some circumstances, the issuance of preferred
stock could adversely affect the voting power and other rights of the holders
of our common stock. Although our board is required to make any determination
to issue any preferred stock based on its judgment as to the best interests of
our stockholders, it could act in a manner that would discourage an acquisition
attempt or other transaction that some, or a majority, of our stockholders
might believe to be in their best interests or in which stockholders might
receive a premium for their stock over prevailing market prices of the stock.
Our board does not at present intend to seek stockholder approval prior to any
issuance of currently authorized stock unless otherwise required by law or
applicable stock exchange requirements.


<P align="left" style="font-size: 10pt"><B>First Reserve&#146;s Preemptive Rights</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October&nbsp;2002 we entered into an Investor&#146;s Rights Agreement with First
Reserve pursuant to which we granted First Reserve a preemptive right to
purchase, on a quarterly basis, a proportionate number of shares of our common
stock to allow it to maintain the same voting percentage of our common stock
that it had immediately prior to the issuance during any quarter of our common
stock or securities convertible into common stock to third parties. First
Reserve&#146;s purchase price for each share of our common stock purchased pursuant
to this right equals the closing price per share of our common stock on the
date of issuance of the shares of common stock to third parties. First Reserve
has fifteen business days after the end of any quarter in which we issue new
shares of common stock or securities convertible into common stock to exercise
its preemptive right with respect to issuances during the quarter. First
Reserve waived its preemptive right in connection with the issuance of the
debentures and any common stock issued upon conversion, redemption or
repurchase of the debentures. First Reserve&#146;s preemptive right will terminate
if First Reserve&#146;s voting percentage is less than 10%.


<P align="left" style="font-size: 10pt"><B>Series&nbsp;D Junior Participating Preferred Stock</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of Series&nbsp;D Junior Preferred Stock purchasable upon exercise of the
rights described below under &#147; &#151; Stockholder Rights Plan&#148; will not be
redeemable or convertible. Shares of Series&nbsp;D Junior Preferred Stock will be
entitled to cumulative dividends equal to the greater of $10 per share or,
subject to adjustment, an aggregate dividend of 1,000 times the dividend
declared per share of common stock for any quarterly period. In the event of
our liquidation, dissolution or winding up, the holders of the Series&nbsp;D Junior
Preferred Stock will be entitled to a minimum preferential payment of $1,000
per share plus accrued and unpaid dividends, whether or not declared, provided
that the holders of the shares of Series&nbsp;D Junior Preferred Stock shall be
entitled to an aggregate payment per share, subject to adjustment, of 1,000
times the aggregate amount distributed per share to holders of common stock. In
the event of any merger, consolidation or similar transaction in which shares
of common stock are exchanged, each share of Series&nbsp;D Junior Preferred Stock
will be entitled to receive, subject to adjustment, 1,000 times the amount
received per share of common stock. Each holder of a share of Series&nbsp;D Junior
Preferred Stock will have 1,000 votes on all matters submitted to a vote of
stockholders and will vote together with the holders of our common stock. These
rights are protected by customary anti-dilution provisions. Due to the nature
of the Series&nbsp;D Junior Preferred Stock dividend, liquidation and voting rights,
the value of the one one-thousandth interest in a share of Series&nbsp;D Junior
Preferred Stock purchasable upon exercise of each right should approximate the
value of one share of common stock.


<P align="left" style="font-size: 10pt"><B>Stockholder Rights Plan</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have adopted a stockholder rights plan pursuant to which one right will
be issued and attached to each outstanding share of common stock. The following
description of our stockholder rights plan and the certificate of designations
setting forth the terms and


<P align="center" style="font-size: 10pt">41
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">conditions of the Series&nbsp;D Junior Preferred Stock are intended as
summaries only and are qualified in their entirety by reference to the form of
stockholder rights plan and certificate of designations to the certificate of
incorporation filed with the SEC.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until a distribution date occurs, the rights can be transferred only with
the common stock. On the occurrence of a distribution date, the rights will
separate from the common stock and become exercisable as described below.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A &#147;distribution date&#148; will occur upon the earlier of:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the tenth day after a public announcement that a person or
group of affiliated or associated persons other than us and certain
exempt persons (an &#147;acquiring person&#148;) has acquired beneficial
ownership of 15% or more of the total voting rights of the then
outstanding shares of our common stock (or, in the case of First
Reserve, 37% or more of the total voting rights); or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the tenth business day following the commencement of a tender
or exchange offer that would result in such person or group becoming
an acquiring person.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The total voting rights of the common stock will be determined based on
the voting rights of holders of outstanding shares of our common stock at the
time of any determination.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following the distribution date, holders of rights will be entitled to
purchase from us one one-thousandth (1/1000th) of a share of Series&nbsp;D Junior
Preferred Stock at a purchase price of $153.33, subject to adjustment.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that any person or group becomes an acquiring person, proper
provision shall be made so that each holder of a right, other than rights
beneficially owned by the acquiring person, will thereafter have the right to
receive upon payment of the purchase price, that number of shares of common
stock having a market value equal to the result obtained by (A)&nbsp;multiplying the
then current purchase price by the number of one one-thousandths of a share of
Series&nbsp;D Junior Preferred Stock for which the right is then exercisable, and
dividing that product by (B)&nbsp;50% of the current per share market price of our
shares of common stock on the date of such occurrence. If, following the date
of a public announcement that an acquiring person has become such, (1)&nbsp;we are
acquired in a merger or other business combination transaction and we are not
the surviving corporation, (2)&nbsp;any person consolidates or merges with us and
all or part of the common stock is converted or exchanged for securities, cash
or property of any other person, or (3)&nbsp;50% or more of our assets or earning
power is sold or transferred, then the rights will &#147;flip-over.&#148; At that time,
each right will entitle its holder to purchase, for the purchase price, a
number of shares of common stock of the surviving entity in any such merger,
consolidation or other business combination or the purchaser in any such sale
or transfer with a market value equal to the result obtained by (X)&nbsp;multiplying
the then current purchase price by the number of one one-thousandths of a share
of Series&nbsp;D Junior Preferred Stock for which the right is then exercisable, and
dividing that product by (Y)&nbsp;50% of the current per share market price of the
shares of common stock of the surviving entity on the date of consummation of
such consolidation, merger, sale or transfer.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rights will expire on March&nbsp;8, 2010, unless we terminate them before
that time. Our board of directors may redeem all of the rights upon payment of
$0.01 per right until the earlier of:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a &#147;flip-in event;&#148; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>March&nbsp;8, 2010.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If our board redeems any of the rights, it must redeem all of the rights.
Once our board acts to redeem the rights, the right to exercise the rights will
terminate and each right will become null and void.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A holder of a right will not have any rights as a stockholder of Quanta,
including the right to vote or to receive dividends, until a right is
exercised.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At any time prior to the occurrence of a redemption date, we may, except
with respect to the redemption price, supplement or amend any provision of our
stockholder rights plan in any manner, whether or not such supplement or
amendment is adverse to any holders of the rights. From and after the
occurrence of a redemption date, we may, except with respect to the redemption
price, supplement or amend our stockholder rights plan in any manner that does
not adversely affect the interests of the holders of rights, other than an
acquiring person.


<P align="center" style="font-size: 10pt">42
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>Delaware Law And Specified Charter And Bylaw Provisions</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Business combinations</I>. We are subject to the provisions of section 203 of
the Delaware General Corporation Law. Section&nbsp;203 prohibits a publicly held
Delaware corporation from engaging in a &#147;business combination&#148; with an
&#147;interested stockholder&#148; for a period of three years after the date of the
transaction in which the person became an interested stockholder, unless the
business combination is, or the transaction by which such stockholder became an
&#147;interested stockholder&#148; was, approved in a prescribed manner. A &#147;business
combination&#148; includes mergers, asset sales and other transactions resulting in
a financial benefit to the interested stockholder. Subject to specified
exceptions, an &#147;interested stockholder&#148; is a person who, together with
affiliates and associates, owns, or within three years did own, 15% or more of
the corporation&#146;s voting stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Limitation of liability; indemnification</I>. Our charter contains provisions
permitted under the Delaware General Corporation Law relating to the liability
of directors. The provisions eliminate a director&#146;s liability for monetary
damages for a breach of fiduciary duty, except in circumstances involving
wrongful acts, such as the breach of a director&#146;s duty of loyalty, acts or
omissions that involve intentional misconduct or a knowing violation of law or
transactions from which the director derived an improper personal benefit. This
limitation of liability does not alter the liability of our directors and
officers under federal securities laws. Furthermore, our bylaws contain
provisions to indemnify our directors and officers to the fullest extent
permitted by the Delaware General Corporation Law. These provisions do not
limit or eliminate our right or the right of any of our stockholders to seek
non-monetary relief, such as an injunction or rescission in the event of a
breach by a director or an officer of his or her duty of care. We believe that
these provisions will assist us in attracting and retaining qualified
individuals to serve as directors.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Stockholder action; special meeting of stockholders</I>. Our certificate of
incorporation provides that stockholders may take action only at a duly called
annual or special meeting of stockholders and may not act by written consent.
Our bylaws further provide that special meetings of our stockholders may be
called only by the chairman of the board of directors pursuant to a resolution
approved by a majority of the board of directors.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Advance notice requirements for stockholder proposals and director
nominations</I>. Our bylaws provide that stockholders seeking to bring business
before an annual meeting of stockholders, or to nominate candidates for
election as directors at an annual meeting of stockholders, must meet specified
procedural requirements. These provisions may preclude stockholders from
bringing matters before an annual meeting of stockholders or from making
nominations for directors at an annual or special meeting of stockholders.


<P align="center" style="font-size: 10pt">43
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="110"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a general discussion of certain material U.S. federal
income tax aspects of the acquisition, ownership and disposition of the
debentures, and where noted, our common stock. This summary is based upon
current provisions of the U.S. Internal Revenue Code of 1986, as amended (the
&#147;Code&#148;), existing and proposed Treasury Regulations promulgated thereunder and
current administrative rulings and court decisions, all as in effect on the
date hereof. All of the foregoing are subject to change, possibly on a
retroactive basis, and any such change could affect the continuing validity of
this discussion.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This discussion is a summary for general information only and does not
consider all aspects of U.S. federal income taxation that may be relevant to
the acquisition, ownership and disposition of the debentures and our common
stock by a prospective investor in light of his, her or its personal
circumstances. For example, this discussion does not address the U.S. federal
income tax consequences to investors subject to special treatment under the
U.S. federal income tax laws, such as:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>dealers in securities or foreign currency;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>investors that have elected mark-to-market accounting;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>banks, thrifts, insurance companies, regulated investment companies or other financial institutions;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>tax-exempt entities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>persons that hold the debentures or our common stock as part of a
&#147;straddle,&#148; &#147;hedge,&#148; &#147;conversion transaction&#148; or other integrated
transaction;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>persons that have a &#147;functional currency&#148; other than the U.S.
dollar; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>partnerships and other pass-through entities (or investors holding
interests in partnerships or pass-through entities) that hold the
debentures or our common stock.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, this discussion is limited to the U.S. federal income tax
consequences to persons who are beneficial owners of the debentures or our
common stock and who hold the debentures or common stock as capital assets
within the meaning of Section&nbsp;1221 of the Code, i.e., generally, property held
for investment. Moreover, this discussion does not describe any tax
consequences arising out of the U.S. alternative minimum tax law, the tax laws
of any state, local or foreign jurisdiction or, except to a limited extent
under the caption &#147;Non-U.S. Holders,&#148; any possible applicability of the U.S.
federal gift or estate tax law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have not requested a ruling from the U.S. Internal Revenue Service (the
&#147;IRS&#148;) on the tax consequences of owning the debentures or our common stock. As
a result, the IRS could disagree with portions of this discussion. For example,
based upon currently applicable authorities, we will treat the debentures as
indebtedness for U.S. federal income tax purposes. However, as the debentures
have certain equity characteristics, it is possible that the IRS will contend
that the debentures should be treated as an equity interest in, rather than
indebtedness of, our company. The remainder of this discussion assumes that the
debentures will constitute indebtedness for U.S. tax purposes.


<P align="left" style="font-size: 10pt"><B>U.S. Holders</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of the following discussion, a &#147;U.S. Holder&#148; is a beneficial
owner of a debenture or our common stock that is:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a citizen or resident of the U.S., including an alien resident who
is a lawful permanent resident of the U.S. or meets the &#147;substantial
presence&#148; test under Section 7701(b) of the Code;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a corporation (or other entity treated as a corporation for U.S.
federal income tax purposes) created or organized in the U.S. or under
the laws of the U.S. or any State thereof or the District of Columbia;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an estate whose income is includible in gross income for U.S.
federal income tax purposes regardless of its source; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a trust, if (1)&nbsp;a U.S. court is able to exercise primary
supervision over administration of the trust and one or more U.S.
persons have the authority to control all substantial decisions of the
trust or (2)&nbsp;such trust was in existence on August&nbsp;1, 1996 and has a
valid election in effect under applicable Treasury Regulations to be
treated as a U.S. person.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Stated Interest on the Debentures</I>. Interest on a debenture (including a
payment made pursuant to a guarantee) will be taxable to a U.S. Holder as
ordinary interest income at the time it accrues or is received in accordance
with such holder&#146;s method of accounting for U.S. federal income tax purposes.


<P align="center" style="font-size: 10pt">44
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Sale, Exchange, or Retirement of the Debentures for Cash</I>. Upon the
disposition of a debenture by sale, exchange, redemption or repayment or other
taxable disposition, and subject to the market discount discussion below, a
U.S. Holder generally will recognize gain or loss equal to the difference
between (i)&nbsp;the amount realized on the disposition (i.e., the amount of cash
and the fair market value of any property received in exchange for the
debenture, but not including any amounts attributable to accrued but unpaid
interest which, if not yet taken into income, generally will be taxable as
ordinary income) and (ii)&nbsp;the U.S. Holder&#146;s adjusted tax basis in the
debenture. A U.S. Holder&#146;s adjusted tax basis in the debenture generally will
equal the cost of the debenture (net of accrued interest), increased by any
market discount or decreased by any amortizable bond premium, in each case
provided that the holder elected to accrue the amounts thereof for U.S. federal
income tax purposes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because the debenture is held as a capital asset, such gain or loss will
generally be capital gain or loss and will be long-term capital gain if the
debenture is held for longer than one year. Currently, non-corporate taxpayers
are generally subject to a maximum regular federal income tax rate of 15% on
net long-term capital gain, which is scheduled to increase to 20% for tax years
beginning on or after January&nbsp;1, 2009. The deductibility of capital losses is
subject to certain limitations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Were we to obtain a discharge of the indenture within one year before the
debentures became due and payable, with respect to all of the debentures then
outstanding, as described above under &#147;Description of Debentures &#151;
Satisfaction and Discharge of the Indenture,&#148; such discharge would generally be
deemed to constitute a taxable exchange of the debentures outstanding for other
property, namely, the funds deposited with the trustee. In such case, a U.S.
Holder would be required to recognize capital gain or loss in connection with
such deemed exchange in the manner comparable to that discussed above. In
addition, after such deemed exchange, a U.S. Holder might also be required to
recognize income from the property deemed to have been received in such
exchange over the remaining life of the transaction in a manner or amount that
is different than had the discharge not occurred. U.S. Holders should consult
their tax advisors as to the specific consequences arising from a discharge in
their particular situations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Market Discount</I>. If a U.S. Holder purchases a debenture at a price that is
less than its stated redemption price at maturity then, subject to a de minimis
exception, the debenture will be deemed to carry &#147;market discount.&#148; Subject to
a limited exception, these provisions generally require a U.S. Holder that
acquires a debenture having market discount to treat as ordinary income any
gain recognized on the disposition of that debenture to the extent of the
accrued market discount on that debenture at the time of maturity or
disposition, unless the U.S. Holder elects to include such accrued market
discount in income over the life of the debenture.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The election to include market discount in income over the life of the
debenture, once made, applies to all market discount obligations acquired on or
after the first day of the first taxable year to which the election applies and
may not be revoked without the consent of the IRS. In general, market discount
will be treated as accruing on a straight-line basis over the remaining term of
the debenture at the time of acquisition, or, at the election of the U.S.
Holder, under a constant yield method. If a constant yield election is made, it
will apply only to the debenture with respect to which it is made, any may not
be revoked. A U.S. Holder that acquires a debenture at a market discount and
does not elect to include accrued market discount in income over the life of
the debenture may be required to defer the deduction of all or a portion of the
interest on any indebtedness incurred or maintained to purchase or carry the
debenture until maturity or until the debenture is disposed of in a taxable
transaction.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Amortizable Premium</I>. A U.S. Holder that purchases a debenture at a premium
over its stated principal amount, plus accrued interest, generally may elect to
amortize that premium (referred to as Section&nbsp;171 premium) from the purchase
date to the debenture&#146;s maturity date under a constant yield method that
reflects semiannual compounding based on the debenture&#146;s payment period.
Amortizable premium, however, will not include any premium attributable to a
debenture&#146;s conversion feature. The premium attributable to the conversion
feature is the excess, if any, of the debenture&#146;s purchase price over what the
debenture&#146;s fair market value would be if there were no conversion feature.
Amortizable Section&nbsp;171 premium is treated as an offset to interest income on a
debenture and not as a separate deduction. The election to amortize premium on
a constant yield method, once made, applies to all debt obligations held or
subsequently acquired by the electing U.S. Holder on or after the first day of
the first taxable year to which the election applies and may not be revoked
without the consent of the IRS.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Conversion of Debentures Into Common Stock</I>. A U.S. Holder&#146;s conversion of
a debenture solely into our common stock (including upon a put to us whereunder
we exercise our option to issue our common stock) will not be a taxable event,
except with respect to cash received in lieu of a fractional share of our
common stock. A U.S. Holder will recognize gain or loss upon the receipt of
cash in lieu of a fractional share of our common stock, measured by the
difference between the cash received and the U.S. Holder&#146;s tax basis
attributable to the fractional share. The fair market value of our common stock
received with respect to accrued and unpaid interest will be taxed as a payment
of interest (as described above).


<P align="center" style="font-size: 10pt">45
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A U.S. Holder&#146;s tax basis in our common stock received upon a conversion
of a debenture will be the same as the U.S. Holder&#146;s basis in the debenture at
the time of conversion, reduced by any basis allocated to a fractional share
and increased, for a cash method holder, by the amount of income recognized
with respect to accrued interest. The U.S. Holder&#146;s holding period for the
common stock received will include the holder&#146;s holding period for the
debenture converted, except that the holding period of any common stock
received with respect to accrued and unpaid interest will commence on the day
after the date of conversion.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Repurchase of the Debentures at the Option of the Holder</I>. If a U.S. Holder
of a debenture exercises its right to require us to repurchase a debenture and
we deliver our common stock in full satisfaction of the repurchase price (other
than the portion of the repurchase price, if any, attributable to a fractional
share or to accrued but unpaid interest, which will be paid in cash), the
exchange of the debenture for our common stock should be treated in the same
manner described above under &#147;U.S. Holders &#151; Conversion of Debentures Into
Common Stock.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a U.S. Holder receives a combination of cash and our common stock upon
the exercise of either a put to us or a conversion right, the U.S. federal
income tax consequences to the U.S. Holder are unclear. There are several
possible tax treatments, the two most likely of which are:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a partial taxable sale of the debenture resulting in gain or loss
to the U.S. Holder and a partial tax-free conversion of the debenture
under which the U.S. Holder would apply the principles described above
under both &#147;U.S. Holders &#151; Sale, Exchange, or Retirement of the
Debentures for Cash&#148; and &#147;U.S. Holders &#151; Conversion of Debentures Into
Common Stock,&#148; respectively, based upon a proration of the debenture
between the amount of cash and the fair market value of our common
stock received; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a recapitalization under which the U.S. Holder would recognize
gain, but not loss, on the repurchase equal to the lesser of (a)&nbsp;the
amount of cash received (other than in respect of a fractional share or
in respect of accrued but unpaid interest) and (b)&nbsp;the amount of gain
realized (equal to the excess, if any, of (i)&nbsp;the amount of cash the
holder receives (other than in respect of a fractional share or of
accrued but unpaid interest) plus (ii)&nbsp;the fair market value of common
stock the holder receives over (iii)&nbsp;his, her, or its tax basis in the
debenture).</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any U.S. Holders of debentures who receive a combination of cash and our
common stock should consult their tax advisors as to the U.S. federal income
tax consequences to them.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a U.S. Holder of a debenture exercises his, her or its right to require
us to repurchase a debenture and we deliver cash in full satisfaction of the
repurchase price, the repurchase will be treated the same as a sale of the
debenture, as described above under &#147;U.S. Holders &#151; Sale, Exchange or
Retirement of the Debentures for Cash.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Constructive Dividends</I>. The conversion ratio of the debentures will be
adjusted if we distribute cash in excess of specified amounts with respect to
shares of our common stock and in certain other circumstances. An increase in
the conversion ratio as a result of our distribution of cash to common
stockholders generally will result in a deemed distribution to U.S. Holders. If
we were to make a distribution of property to stockholders (for example,
distributions of evidences of indebtedness or assets, but generally not stock
dividends or rights to subscribe for our common stock) and the conversion price
underlying the debentures was decreased pursuant to the anti-dilution
provisions of the indenture, such decrease would be deemed to be a distribution
to U.S. Holders. In addition, other decreases in the conversion price of the
debentures may, depending on the circumstances, be deemed to be distributions
to U.S. Holders. Any such deemed distribution will be generally taxed in the
same manner as an actual dividend distribution. In certain circumstances, the
reverse may be true &#151; namely the failure to make an adjustment of the
conversion price under the indenture may result in a taxable distribution to
holders of our common stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Taxation of Distributions on Our Common Stock</I>. Distributions paid on our
common stock received upon the conversion of a debenture, other than certain
pro rata distributions of common shares, will be treated as a dividend to the
extent paid out of current or accumulated earnings and profits (as determined
under U.S. federal income tax principles) and will be includible in income by
the U.S. Holder and taxable as ordinary income when received. Currently,
dividends received by a noncorporate U.S. Holder in tax years beginning before
January&nbsp;1, 2009 may be subject to U.S. federal income tax at lower rates than
other types of ordinary income if certain conditions are met. U.S. Holders
should consult their own tax advisers regarding the implications of their
particular circumstances. If a distribution exceeds our current and accumulated
earnings and profits, the excess will be first treated as a tax-free return of
the U.S. Holder&#146;s investment, up to the U.S. Holder&#146;s tax basis in our common
stock. Any remaining excess will be treated as a capital gain.


<P align="center" style="font-size: 10pt">46
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Sale or Other Disposition of Our Common Stock</I>. Unless a nonrecognition
provision applies, gain or loss realized by a U.S. Holder on the sale or other
disposition of our common stock received upon the conversion of a debenture
will be recognized as capital gain or loss for U.S. federal income tax
purposes, and will be long-term capital gain or loss if the U.S. Holder held
the common stock for more than one year. The amount of the U.S. Holder&#146;s gain
or loss will be equal to the difference between the U.S. Holder&#146;s tax basis in
the common stock disposed of and the amount realized on the disposition.
Long-term capital gains recognized by certain non-corporate U.S. Holders,
including individuals, will generally be subject to a reduced tax rate. The
deductibility of capital losses is subject to limitations. Further, a U.S.
Holder who sells the stock at a loss that meets certain thresholds may be
required to file a disclosure statement with the IRS under recently promulgated
Treasury Regulations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Backup Withholding and Information Reporting</I>. A U.S. Holder of a debenture
or common stock may be subject, under certain circumstances, to information
reporting and backup withholding at the then applicable rate (currently at a
rate of 28%, which rate is scheduled to be increased to 31% for 2011 and
thereafter) with respect to payments of interest and dividends on, and gross
proceeds from a sale, exchange, redemption or other disposition of, a debenture
or common stock. These backup withholding rules apply if the U.S. Holder, among
other things: (i)&nbsp;fails to furnish a social security number or other taxpayer
identification number (&#147;TIN&#148;) certified under penalties of perjury within a
reasonable time after the request therefor; (ii)&nbsp;furnishes an incorrect TIN;
(iii)&nbsp;fails to properly report interest; or (iv)&nbsp;under certain circumstances,
fails to provide a certified statement, signed under penalties of perjury, that
the TIN furnished is the correct number and that such U.S. Holder is not
subject to backup withholding.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A U.S. Holder of a debenture or common stock who does not provide his, her
or its correct taxpayer identification number also may be subject to penalties
imposed by the IRS. Backup withholding is not an additional tax. Any amount
paid as backup withholding is creditable against the U.S. Holder&#146;s federal
income tax liability, provided the requisite information is provided timely to
the IRS. Certain persons are exempt from backup withholding, including
corporations and tax-exempt entities, provided their exemption from backup
withholding is properly established. U.S. Holders of debentures and our common
stock should consult their tax advisors as to their qualifications for
exemption from backup withholding and the procedure for obtaining such
exemption.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will report to the IRS and to the holders of the debentures and our
common stock the amount of any payments of interest on the debentures and
dividends on our common stock made by us, as well as any amounts withheld with
respect to the debentures or our common stock, during the calendar year.


<P align="left" style="font-size: 10pt"><B>Non-U.S. Holders</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion is limited to the U.S. federal income and U.S.
federal estate tax consequences to a holder of a debenture or our common stock
that is a beneficial owner and that is an individual, corporation, estate or
trust other than either a U.S. Holder or a person subject to rates applicable
to former citizens and long-term residents of the United States (a &#147;Non-U.S.
Holder&#148;). In addition, this discussion does not address the U.S. federal income
tax consequences to Non-U.S. Holders subject to special treatment under the
Code, such as &#147;controlled foreign corporations,&#148; &#147;foreign investment
companies,&#148; &#147;foreign personal holding companies&#148; and foreign corporations that
accumulate earnings to avoid U.S. federal income tax.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Payments on the Debentures</I>. All payments on the debentures made to a
Non-U.S. Holder, including a payment in our common stock or cash pursuant to a
conversion, retirement, or repurchase, and any gain realized on a sale or
exchange of the debentures will be exempt from U.S. federal income and
withholding tax, provided that:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Non-U.S. Holder (i)&nbsp;does not actually or constructively own 10%
or more of the total combined voting power of all classes of our stock
entitled to vote, (ii)&nbsp;is not a &#147;controlled foreign corporation&#148; with
respect to which we are a &#147;related person&#148; within the meaning of the
Code, and (iii)&nbsp;is not a bank receiving certain types of interest;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Non-U.S. Holder certifies, under penalties of perjury, on a
properly executed IRS Form W-8BEN (or any successor form) prior to the
payment of interest that such holder is not a U.S. person and provides
such holder&#146;s name and address or a financial institution holding the
debentures on behalf of the Non-U.S. Holder certifies, under penalties
of perjury, that it has received an IRS Form W-8BEN (or successor form)
from the Non-U.S. Holder or the beneficial owner and provides us with a
copy;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the payments are not effectively connected with conduct by the
Non-U.S. Holder of a trade or business in the United States; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of gain realized on the sale, exchange, conversion or
retirement of the debentures, we are not, and have not been within the
shorter of the five-year period preceding such sale, exchange,
conversion or retirement and the period the Non-</TD>
</TR>

</TABLE>
<P align="center" style="font-size: 10pt">47
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"><TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>U.S. Holder held the debentures, a U.S. real property holding corporation,
or certain de minimis ownership rules apply to the debentures held by the
Non-U.S. Holders. We believe that we are not, and do not anticipate
becoming, a U.S. real property holding corporation for U.S. federal income
tax purposes.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Conversion into Common Stock</I>. A Non-U.S. Holder&#146;s conversion of a
debenture into our common stock will not be a taxable event. However, to the
extent that a Non-U.S. Holder receives cash in lieu of a fractional share upon
conversation or is deemed to receive accrued and unpaid interest, any such gain
and/or interest would be subject to the rules described above.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Our Common Stock</I>. Dividends (including constructive dividends on the
debentures described above under &#147;U.S. Holders &#151; Constructive Dividends&#148;) paid
to a Non-U.S. Holder of our common stock generally will be subject to U.S.
withholding tax at a 30% rate, subject to reduction under an applicable income
tax treaty. In order to obtain a reduced rate of withholding, a Non-U.S. Holder
will be required to provide a properly executed IRS Form W-8BEN certifying its
entitlement to benefits under a treaty. Such form must be updated periodically.
A Non-U.S. Holder that is claiming the benefits of an income tax treaty also
may be required in certain circumstances to provide a TIN or certain
documentary evidence issued by foreign governmental authorities to prove
residence in the foreign country. A Non-U.S. Holder who is subject to
withholding tax under such circumstances should consult his, her or its own tax
adviser as to whether such holder can obtain a refund for all or a portion of
the withholding tax.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Non-U.S. Holder generally will not be subject to U.S. federal income or
withholding tax on gain realized on a sale or other disposition of common stock
received upon a conversion of a debenture, unless:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the gain is effectively connected with the conduct by such Non-U.S.
Holder of a trade or business in the United States;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of a Non-U.S. Holder who is a nonresident alien
individual, the individual is present in the United States for 183 or
more days in the taxable year of the disposition and certain other
conditions are met; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we are or have been a U.S. real property holding corporation at any
time within the shorter of the five-year period preceding such sale,
exchange or disposition and the period the Non-U.S. Holder held the
common stock and the debenture, or certain de minimis ownership rules
do not apply. We believe that we are not, nor do we anticipate
becoming, a U.S. real property holding corporation for U.S. federal
income tax purposes.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Trade or Business. For purposes of the discussion below, income or
gain is generally considered U.S. trade or business income if such income or
gain is:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>effectively connected with the Non-U.S. Holder&#146;s conduct of a U.S.
trade or business; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of a treaty resident, attributable to a U.S. permanent
establishment (or, in the case of an individual, a fixed base)
maintained by the Non-U.S. Holder in the United States.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a Non-U.S. Holder of a debenture or our common stock is engaged in a
trade or business in the United States, and if payments on a debenture,
dividends paid on our common stock or gain on the disposition of a debenture or
our common stock is effectively connected with the conduct of that trade or
business, the Non-U.S. Holder will generally be taxed in the same manner as a
U.S. Holder (see &#147;U.S. Holders&#148; above). These Non-U.S. Holders should consult
their own tax advisers with respect to other tax consequences of the ownership
of the debentures or of our common stock including, in the case of a Non-U.S.
Holder that is a corporation, the possible imposition of a branch profits tax
at a rate of 30%, subject to reduction by an applicable income tax treaty, on
their effectively connected income.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Federal Estate Tax</I>. Any debenture held (or treated as held) by an
individual who is a Non-U.S. Holder at the time of his death will not be
subject to U.S. federal estate tax, provided that the individual does not
actually or constructively own 10% or more of the total voting power of all of
our classes of stock entitled to vote and income on the debentures was not U.S.
trade or business income. However, our common stock held by an individual who
is a Non-U.S. Holder at the time of his death will be included in the gross
estate of the Non-U.S. Holder for U.S. federal estate tax purposes unless an
applicable estate tax treaty provides otherwise.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Information Reporting and Backup Withholding</I>. We must report annually to
the IRS and to each Non-U.S. Holder any interest or dividends that are paid to
the Non-U.S. Holder. Copies of these information returns also may be made
available under the provisions of a specific treaty or other agreement to the
tax authorities of the country in which the Non-U.S. Holder resides.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury Regulations provide that the backup withholding tax (currently at
a rate of 28%, which rate is scheduled to be increased to 31% for 2011 and
thereafter) and certain information reporting will not apply to payments of
interest or dividends with respect to


<P align="center" style="font-size: 10pt">48
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">which either the requisite certification that the Non-U.S. Holder is not a
U.S. person, as described above, has been received or an exemption otherwise
has been established, provided that neither we nor our paying agent have actual
knowledge, or reason to know, that the Non-U.S. Holder is a U.S. person or that
the conditions of any other exemption are not, in fact, satisfied.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The payment of the gross proceeds from the sale, exchange, redemption or
other disposition of the debentures or our common stock to or through the U.S.
office of any broker, U.S. or foreign, will be subject to information reporting
and possible backup withholding unless the Non-U.S. Holder certifies as to its
non-U.S. status under penalties of perjury or otherwise establishes an
exemption, provided that the broker does not have actual knowledge, or reason
to know, that the Non-U.S. Holder is a U.S. person or that the conditions of
any other exemption are not, in fact, satisfied. The payment of the gross
proceeds from the sale, exchange, redemption or other disposition of the
debentures or our common stock to or through a non-U.S. office of a non-U.S.
broker will not be subject to information reporting or backup withholding
unless the non-U.S. broker has certain types of relationships with the United
States (a &#147;U.S. related person&#148;). In the case of the payment of the gross
proceeds from the sale, exchange, redemption or other disposition of the
debentures or our common stock to or through a non-U.S. office of a broker that
is either a U.S. person or a U.S. related person, the Treasury Regulations
require information reporting (but not back-up withholding) on the payment
unless the broker has documentary evidence in its files that the owner is a
Non-U.S. Holder and the broker has no knowledge, or reason to know, to the
contrary, or the owner otherwise establishes an exception.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Backup withholding is not an additional tax. Any amounts withheld under
the backup withholding rules may be refunded or credited against the Non-U.S.
Holder&#146;s U.S. federal income tax liability, provided that the required
information is provided to the IRS.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All certifications described above under the heading &#147;Non-U.S. Holders&#148;
are subject to special rules with respect to reliance standards, under which
certifications provided by holders may not be relied on under certain
circumstances (for example, if we, our paying agent, or the broker had actual
knowledge or reason to know that the certification is false).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THE PRECEDING DISCUSSION OF THE MATERIAL FEDERAL INCOME TAX CONSEQUENCES
OF THE ACQUISITION, OWNERSHIP AND DISPOSITION OF THE DEBENTURES OR OUR COMMON
STOCK IS FOR GENERAL INFORMATION ONLY AND IS NOT TAX ADVICE. ACCORDINGLY, EACH
INVESTOR IS URGED TO CONSULT HIS, HER OR ITS OWN TAX ADVISOR AS TO PARTICULAR
TAX CONSEQUENCES TO IT OF PURCHASING, HOLDING AND DISPOSING OF DEBENTURES AND,
WHERE APPLICABLE, OUR COMMON STOCK, INCLUDING THE APPLICABILITY AND EFFECT OF
ANY FEDERAL, STATE, LOCAL OR FOREIGN TAX LAWS, AND OF ANY PROPOSED CHANGES IN
APPLICABLE LAW.</B>

<DIV align="left">
<A name="111"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>SELLING SECURITY HOLDERS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We originally issued the debentures to the initial purchasers, Banc of
America Securities LLC and J.P. Morgan Securities Inc., in a private placement
in October&nbsp;2003. The debentures were resold by the initial purchasers in
transactions exempt from registration under Rule&nbsp;144A under the Securities Act.
Selling security holders, which term includes their transferees, pledgees,
donees or their successors, may from time to time offer and sell the debentures
and the common stock issuable upon conversion or repurchase of the debentures
pursuant to this prospectus or any applicable prospectus supplement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth certain information with respect to the
selling security holders and the principal amount of debentures and the number
of shares of common stock beneficially owned by each selling security holder
that may be offered from time to time under this prospectus. We prepared this
table based on the information supplied to us by the selling security holders
on or prior to September&nbsp;1, 2004. This table only reflects information
regarding selling security holders who have provided us with such information.
Information concerning the selling security holders may change from time to
time and any changed information, including the name of any transferee,
pledgee, donee or successor to a selling security holder, will be set forth in
supplements to this prospectus if and when necessary. Other holders of
debentures whose identity is presently unknown to us may not use this
prospectus for resales of the debentures or the common stock issuable upon
conversion or repurchase of the debentures unless information regarding such
holders is set forth in a post-effective amendment to the registration
statement to which this prospectus is a part.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Several of the selling security holders are affiliates of registered
broker-dealers. Each of these selling security holders has informed us that
(1)&nbsp;such selling security holder purchased the debentures in the ordinary
course of business and (2)&nbsp;at the time that the debentures were purchased, the
selling security holder had no agreements or understandings, directly or
indirectly, to distribute the debentures.


<P align="center" style="font-size: 10pt">49
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The number of shares of common stock issuable upon conversion or
repurchase of the debentures shown in the table below assumes conversion of the
full amount of the debentures held by each selling security holder at an
initial conversion rate of 89.7989 shares per $1,000 principal amount of
debentures. This conversion rate is subject to adjustment in certain events.
Accordingly, the number of conversion shares may increase or decrease from time
to time.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The percentage of common stock beneficially owned and being offered is
based on the number of shares of our common stock that were outstanding as of
September&nbsp;1, 2004. Because the selling security holders may offer all or some
portion of the debentures or the shares of common stock issuable upon
conversion or repurchase of the debentures pursuant to this prospectus, we have
assumed for purposes of the table below that the selling security holders will
sell all of the debentures and all of the shares of common stock offered by
this prospectus pursuant to this prospectus. In addition, the selling security
holders identified below may have sold, transferred or otherwise disposed of
all or a portion of their debentures in transactions exempt from the
registration requirements of the Securities Act since the date on which they
provided the information to us regarding their holdings. As of September&nbsp;1,
2004, we had $270,000,000 in principal amount of the debentures and 116,199,282
shares of common stock outstanding.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on information provided by the selling security holders, none of the
selling security holders has held any position or office or has had any
material relationship with us within the past three years.

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Principal Amount of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares of Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Debentures</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Stock Beneficially</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Beneficially Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Debentures</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Owned Prior to</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares of Common</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Common Stock</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>and Offered</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Offering</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Stock Offered</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Pioneer High Yield Fund(1)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>59,375,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>21.99</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,331,810</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>4.39</B></TD>
    <TD nowrap><B>%</B></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Fore Convertible Master Fund Ltd.(2)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>24,847,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>9.20</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,231,234</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.88</B></TD>
    <TD nowrap><B>%</B></TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Akela Capital Master Fund, Ltd.(3)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>12,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>4.44</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,077,587</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>The Drake Offshore Master Fund, Ltd.(4)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>12,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>4.44</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,077,587</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Vanguard Convertible Securities Fund,
Inc.(5)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>11,550,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>4.28</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,037,178</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Teachers Insurance and Annuity
Association of America</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>11,500,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>4.26</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,032,687</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Akanthos Arbitrage Master Fund, L.P.(6)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>11,500,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>4.26</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,032,687</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Deutsche Bank Securities Inc.(7)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>11,250,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>4.17</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,010,238</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Geode U.S. Convertible Arbitrage Fund (41)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>7,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>2.59</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>628,592</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Man Mac I Limited(8)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>6,713,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>2.49</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>602,821</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Banc of America Securities LLC(13)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>6,075,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>2.25</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>545,529</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Zazove Convertible Arbitrage Fund, L.P.(9)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>5,800,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>2.15</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>520,834</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Wachovia Securities International Ltd.(10)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>5,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.85</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>448,994</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Pioneer U.S. High Yield Corporate Bond
Sub Fund(1)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>5,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.85</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>448,994</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Peoples Benefit Life Insurance Company
TEAMSTERS(11)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>4,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.48</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>359,195</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Aviator Master Fund Ltd.(38)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>3,849,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.43</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>345,636</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Guggenheim Portfolio Company VIII, LLC(12)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>3,820,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.41</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>343,032</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Zazove Hedged Convertible Fund L.P.(9)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>3,500,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.30</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>314,296</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">50
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Principal Amount of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares of Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Debentures</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Stock Beneficially</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Beneficially Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Debentures</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Owned Prior to</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares of Common</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Common Stock</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>and Offered</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Offering</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Stock Offered</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>MSD TCB, L.P.(30)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>3,500,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.30</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>314,296</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>GLG Market Neutral Fund(39)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>3,500,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.30</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>314,296</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Guardian Life Insurance Co.(14)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>3,200,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.18</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>287,356</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>CALAMOS Convertible Fund &#151; CALAMOS
Investment Trust(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>3,155,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.17</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>283,315</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Chrysler Corporation Master Retirement
Trust(5)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>3,090,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.14</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>277,478</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>OCM Convertible Trust(5)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>3,085,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.14</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>277,029</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>St. Albans Partners Ltd.(11)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>3,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.11</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>269,396</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Exis Differential Holdings Ltd.(40)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>3,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.11</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>269,396</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>TD Securities (USA)&nbsp;Inc.(16)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>2,870,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.06</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>257,723</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Context Convertible Arbitrage Offshore,
LTD(17)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>2,600,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>233,478</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>The Coast Fund L.P.(18)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>2,500,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>224,497</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Microsoft Corporation(5)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>2,405,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>215,966</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Zurich Institutional Benchmarks Master
Fund Ltd. (19)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>2,100,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>188,578</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Canyon Value Realization Fund (Cayman),
Ltd. (20)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>2,050,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>184,088</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>San Diego County Employee Retirement
Association(19)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>2,050,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>184,088</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Maystone Continuum Master Fund, Ltd.(21)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>2,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>179,597</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>DKR SoundShore Strategic Holding Fund
Ltd.(22)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>2,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>179,597</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>DeepRock &#038; Co(11)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>2,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>179,597</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Zazove Income Fund L.P.(9)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>1,950,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>175,107</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Quest Global Convertible Master Fund
Ltd.(23)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>1,837,500</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>165,005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Zurich Institutional Benchmarks Master
Fund Ltd.(24)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>1,774,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>159,303</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Canyon Capital Arbitrage Master Fund,
Ltd.(25)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>1,500,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>134,698</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Van Kampen Harbor Fund(26)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>1,500,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>134,698</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>State Employees&#146; Retirement Fund of the
State of Delaware(5)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>1,435,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>128,861</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>National Bank of Canada(27)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>1,400,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>125,719</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Delta Airlines Master Trust(5)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>1,325,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>118,983</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">51
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Principal Amount of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares of Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Debentures</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Stock Beneficially</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Beneficially Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Debentures</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Owned Prior to</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares of Common</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Common Stock</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>and Offered</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Offering</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Stock Offered</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Boilermakers-Blacksmith Pension Trust (28)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>1,295,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>116,289</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Context Convertible Arbitrage Fund, LP(17)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>1,200,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>107,759</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>CNH CA Master Account, L.P.(29)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>1,100,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>98,778</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>HFR CA Select Fund(19)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>1,100,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>98,778</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Partner Reinsurance Company Ltd.(5)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>1,085,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>97,431</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>MSD TCB, L.P.(30)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>3,500,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.30</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>314,296</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>S.A.C. Capital Associates, LLC(31)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>1,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>152,300</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>89,798</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Mill River Master Fund L.P.(32)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>1,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>89,798</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Morgan Stanley Convertible Securities
Trust(33)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>1,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>89,798</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Lyxor/Context Fund Ltd.(27)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>800,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>71,840</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Royal Bank of Canada (Norshield)(27)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>800,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>71,840</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>BP Amoco PLC Master Trust(24)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>784,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>70,402</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Canyon Value Realization Fund, L.P.(25)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>750,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>67,349</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>SSI Hedged Convertible Market Neutral
L.P.(24)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>654,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>58,728</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>The Dow Chemical Company Employees&#146;
Retirement Plan(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>650,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>58,369</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Delta Pilots Disability and Survivorship
Trust &#151; CV(5)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>620,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>55,675</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>SSI Blended Market Neutral L.P.(24)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>602,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>54,058</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Delta Airlines Master Trust(34)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>520,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>46,695</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>McMahan Securities Co. L.P.(35)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>500,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>44,900</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Univest Convertible Arbitrage Fund II
LTD(27)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>500,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>44,900</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Pioneer High Yield VCT Portfolio(1)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>500,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>44,900</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Pacific Life Insurance Company(42)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>500,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>44,900</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>SPT(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>450,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>40,409</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>UnumProvident Corporation(5)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>430,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>38,614</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Guardian Pension Trust(14)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>400,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>35,919</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>KBC Financial Products USA Inc.(36)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>400,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>35,919</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Associated Electric &#038; Gas Insurance
Services Limited(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>400,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>35,919</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Qwest Occupational Health Trust(5)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>395,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>35,470</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">52
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Principal Amount of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares of Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Debentures</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Stock Beneficially</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Beneficially Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Debentures</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Owned Prior to</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares of Common</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Common Stock</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>and Offered</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Offering</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Stock Offered</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Lighthouse Multi-Strategy Convertible
Master Fund Ltd.(23)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>367,500</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>33,001</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Sphinx Convertible Arb Fund SPC(24)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>353,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>31,699</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Aviator Overseas Fund II Ltd.(38)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>351,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>31,520</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Boilermaker-Blacksmith Pension Trust(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>350,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>31,429</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Travelers Indemnity Company &#151; Commercial
Lines(5)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>350,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>31,430</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Motion
Picture Industry Health Plan &#151; Active Member Fund(5)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>345,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>30,980</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Union Carbide Retirement Account(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>310,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>27,837</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Canyon Value Realization MAC 18, LTD
(RMF)(25)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>300,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>26,939</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Delta Airlines Master Trust(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>300,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>26,939</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Hotel Union &#038; Hotel Industry of Hawaii
Pension Plan(24)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>299,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>26,849</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>WPG Convertible Arbitrage Overseas Master
Fund(37)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>250,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>22,449</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Duke Endowment(34)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>250,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>22,449</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Lyxor/Quest Fund Ltd.(23)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>245,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>22,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Travelers Indemnity Company &#151; Personal
Lines(5)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>230,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>20,654</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Motion
Picture Industry Health Plan &#151; Retiree Member Fund(5)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>210,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>18,857</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Dorinco Reinsurance Company(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>200,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>17,959</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Sterling Invest Co.(34)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>180,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>16,163</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Port Authority of Allegheny County
Retirement and Disability Allowance Plan
for the Employees Represented by Local 85
of the Amalgamated Transit Union(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>160,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>14,367</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>United Food and Commercial Workers Local
1262 and Employers Pension Fund(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>155,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13,918</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>OCM Global Convertible Securities Fund
DC(5)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>145,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13,021</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>RBC Alternate Assets LP &#151; CONV ARB(37)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>100,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8,979</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Univest Multi-Strategy &#151; CONV ARB(37)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>100,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8,979</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>The California Wellness Foundation(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>100,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8,979</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Delta Pilots Disability and Survivorship
Trust(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>100,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8,979</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">53
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Principal Amount of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares of Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Debentures</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Stock Beneficially</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Beneficially Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Debentures</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Owned Prior to</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares of Common</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Common Stock</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>and Offered</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Offering</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Stock Offered</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Univar USA Inc. Retirement Plan(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>80,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,183</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>City of Knoxville Pension System(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>75,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>6,734</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Macomb County Employees&#146; Retirement
System(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>75,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>6,734</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Aventis Pension Master Trust(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>65,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,836</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>American AAdvantage Funds(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>55,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,938</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>WPG MSA Convertible Arbitrage Fund(37)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>50,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,489</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>CALAMOS Convertible Portfolio &#151; CALAMOS
Advisors Trust(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>45,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,040</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>SCI
Endowment Care Common Trust Fund &#151;
National Fiduciary Services(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>40,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,591</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>The Fondren Foundation(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>36,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,232</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Knoxville Utilities Board Retirement
System(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>35,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,142</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>CEMEX Pension Plan(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>34,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,053</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Viacom Inc. Pension Plan Master Trust(24)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>28,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,514</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>SCI
Endowment Care Common Trust Fund &#151;
Suntrust(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>20,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,795</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>SCI
Endowment Care Common Trust Fund &#151;
First Union(15)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>10,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>897</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Jefferies &#038; Company Inc.(24)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>6,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>538</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Subtotal(43)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>291,445,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>107.9</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Any other holder of debentures or future
transferee, pledgee, donee or successor
of any such holder(44)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>__</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>TOTAL:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>270,000,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>100.0</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">* Less than one percent.


<P align="left" style="font-size: 10pt"><HR size="1" noshade width="25%" align="left">


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;Pioneer High Yield Fund, Pioneer U.S. High Yield Corporate Bond Sub
Fund and Pioneer High Yield VCT Portfolio are each affiliates of
broker-dealers.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;BISYS Group Inc, as the stockholder of BISYS Hedge Fund Holdings,
Limited, has voting and dispositive power over the securities held by this
security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;Anthony B. Bosco has voting and dispositive power over the securities
held by this security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;Drake Partners LLC, as the stockholder of Drake Capital Management
LLC, has voting and dispositive power over the securities held by this security
holder. Anthony Faillace, Steven Luttrell and Hind Corp are stockholders of
Drake Partners LLC.


<P align="center" style="font-size: 10pt">54
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;Oaktree Capital Management LLC (&#147;Oaktree&#148;), as the investment manager
to OCM Convertible Trust, Delta Air Lines Master Trust &#151; CV, State Employees&#146;
Retirement Fund of the State of Delaware, Partner Reinsurance Company Ltd.,
Chrysler Corporation Master Retirement Trust, Motion Picture Industry Health
Plan &#151; Active Member Fund, Motion Picture Industry Health Plan &#151; Retiree Health
Plan, Delta Pilots Disability &#038; Survivorship Trust &#151; CV, Vanguard Convertible
Securities Fund, Inc., Microsoft Corporation, Qwest Occupational Health Trust,
Travelers Indemnity Company &#151; Commercial Lines, Travelers Indemnity Company -
Personal Lines, OCM Global Convertible Securities Fund &#151; DC and UnumProvident
Corporation, has voting and dispositive power over the securities held by this
security holder. Lawrence Keele is a principal of Oaktree and is the portfolio
manager for this security holder. Mr.&nbsp;Keele, Oaktree and all employees and
members of Oaktree disclaim beneficial ownership of the securities held by this
security holder, except for their pecuniary interest therein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;Michael Kao, as the managing member of Akanthos Capital Management
LLC, the general partner of Akanthos Arbitrage Master Fund L.P., has voting and
dispositive power over the securities held by this security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;Deutsche Bank Securities Inc. is a broker-dealer. Michael Gurner has
voting and dispositive power over the securities held by this security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)&nbsp;Man-Diversified Fund II Ltd. has voting and dispositive power over the
securities held by the security holder. The manager shares of Man-Diversified
Fund II Ltd. are owned 75% by Albany Management Company Limited and 25% by Man
Holdings Limited. Argonaut Limited, which is controlled by Michael Collins, is
the registered stockholder of Albany Management Company Limited. Man Holdings
Limited is a subsidiary of Man Group plc, which is a publicly-owned company
listed on the London Stock Exchange.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)&nbsp;Gene T. Pretti, as the stockholder of Zazove Associates, LLC, the
general partner of Zazove Hedged Convertible Fund L.P., Zazove Convertible
Arbitrage Fund L.P. and Zazove Income Fund L.P., has voting and dispositive
power over the securities held by this security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)&nbsp;Eric Peyton has voting and dispositive power over the securities held
by this security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11)&nbsp;Roy Aitrachan has voting and dispositive power over the securities
held by this security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12)&nbsp;Guggenheim Advisors, LLC has voting and dispositive power over the
securities held by this security holder. Loren Katzovitz, Kevin Felix and
Patrick Hughes are stockholders of Guggenheim Advisors, LLC.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13)&nbsp;Banc of America Securities LLC, a broker-dealer, was an initial
purchaser of the debentures. Banc of America Securities LLC is controlled by
Banc of America Corporation, which is a public company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14)&nbsp;Guardian Life Insurance Co. and Guardian Pension Trust are both
affiliates of broker-dealers. John Murphy has voting and dispositive power
over the securities held by this security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15)&nbsp;Nick Calamos has voting and dispositive power over the securities
held by this security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16)&nbsp;TD Securities (USA)&nbsp;Inc. is a broker-dealer. The Toronto Dominion
Bank has voting and dispositive power over the securities held by this security
holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17)&nbsp;Context Convertible Arbitrage Fund, LP is a broker-dealer. Context
Capital Management, LLC, as the general partner of Context Convertible
Arbitrage Fund, LP and Context Convertible Arbitrage Offshore, LTD has voting
and dispositive power over the securities held by this security holder.
Michael Rosen and William Fertig are the investment managers of Context Capital
Management, LLC.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18)&nbsp;David E. Smith and Christopher D. Petitt, as the stockholders of
Coast Offshore Management (Cayman) Ltd., the managing general partner of The
Coast Fund, L.P., have voting and dispositive power over the securities held by
this security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19)&nbsp;Gene T. Pretti, as the stockholder of Zazove Associates, LLC, the
registered investment advisor to HFR CA Select Fund, San Diego County Employee
Retirement Association and Zurich Institutional Benchmarks Master Fund Ltd.,
has voting and dispositive power over the securities held by this security
holder.


<P align="center" style="font-size: 10pt">55
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20)&nbsp;Canyon Value Realization Fund (Cayman), Ltd. is an affiliate of a
broker-dealer. Joshua S. Friedman, R. Christian B. Evensen and Mitchell R.
Julis have voting and dispositive power over the securities held by this
security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21)&nbsp;Maystone Partners, LLC, as the investment manager to Maystone
Continuum Master Fund, Ltd., has voting and dispositive power over the
securities held by this security holder. Henry J. Pizzutello and Mark R.
Connors are managing members of Maystone Partners, LLC.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22)&nbsp;DKR Capital Partners L.P., as the investment manager to DKR
SoundShore Strategic Holding Fund Ltd., and Manan Rawal, as the portfolio
manager for DKR SoundShore Strategic Holding Fund Ltd., have shared voting and
dispositive power over the securities held by this security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23)&nbsp;Quest Investment Management LLC, as the investment advisor to Quest
Global Convertible Master Fund Ltd., Lighthouse Multi-Strategy Convertible
Master Fund Ltd. and Lyxor/Quest Fund Ltd., has voting and dispositive power
over the securities held by this security holder. Frank Campana and James
Doolin are the investment principals for Quest Investment Management LLC.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24)&nbsp;SSI Investment Management Inc. has voting and dispositive power over
the securities held by this security holder. Amy Jo Gottfurcht, John
Gottfurcht and George Douglas are stockholders of SSI Investment Management
Inc. Jefferies &#038; Company Inc. is a broker-dealer.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(25)&nbsp;Canyon Capital Arbitrage Master Fund, Ltd., Canyon Value Realization
Fund, L.P. and Canyon Value Realization MAC 18, LTD are each affiliates of a
broker-dealer. Canyon Capital Advisors, LLC has voting and dispositive power
over the securities held by this security holder. Joshua S. Friedman, R.
Christian B. Evensen, Mitchell R. Julis and K. Robert Turner are the managing
partners of Canyon Capital Advisors, LLC.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(26)&nbsp;Van Kampen Harbor Fund is a broker-dealer. Van Kampen Asset
Management Inc., as the investment advisor to Van Kampen Harbor Fund, has
voting and dispositive power over the securities held by this security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27)&nbsp;Context Capital Management, LLC, as the investment manager to
National Bank of Canada, Royal Bank of Canada (Norshield), Lyxor/Context Fund
LTD and Univest Convertible Arbitrage Fund II LTD (Norshield), has voting and
dispositive power over the securities held by this security holder. Royal Bank
of Canada (Norshield) is an affiliate of a broker-dealer. Michael Rosen and
William Fertig are the investment managers of Context Capital Management, LLC.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(28)&nbsp;Ann Houlihan has voting and dispositive power over the securities
held by this security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(29)&nbsp;CNH Partners, LLC, as the investment advisor to CNH CA Master
Account, L.P., has voting and dispositive power over the securities held by
this security holder. Robert Krail, Mark Mitchell and Todd Pulvino are the
investment principals for CNH Partners, LLC.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(30)&nbsp;Michael Dell and Susan Dell have voting and dispositive power over
the securities held by this security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(31)&nbsp;S.A.C. Capital Advisors, LLC and S.A.C. Capital Management LLC have
voting and dispositive power over the securities held by this security holder.
Steven A. Cohen controls both S.A.C. Capital Advisors, LLC and S.A.C. Capital
Management LLC.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(32)&nbsp;Mill River Master Fund L.P. is an affiliate of a broker-dealer. Mill
River Management L.L.C. is the sole general partner of Mill River Master Fund
L.P. David L. Babson &#038; Company Inc. is the sole member of Mill River
Management L.L.C. DLB Acquisition Corporation is the sole shareholder of David
L. Babson &#038; Company Inc., and Massachusetts Mutual Life Insurance Company owns
approximately 98% of the shares of DLB Acquisition Corporation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(33)&nbsp;Morgan Stanley Convertible Securities Trust is an affiliate of a
broker-dealer.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(34)&nbsp;Ann Houlihan has voting and dispositive power over the securities
held by this security holder.


<P align="center" style="font-size: 10pt">56
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(35)&nbsp;McMahan Securities Co. L.P. is a broker-dealer. D. Bruce McMahan has
voting and dispositive power over the securities held by this security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(36)&nbsp;KBC Financial Products USA Inc. is a broker-dealer. Luke Edwards has
voting and dispositive power over the securities held by this security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(37)&nbsp;Sheri Kaplan has voting and dispositive power over the securities
held by this security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(38)&nbsp;William Park has voting and dispositive power over the securities
held by this security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(39)&nbsp;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 GLG Market Neutral Fund and has voting and
dispositive power over the securities held by this security holder. 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, Phillipe Jabre and Lehman (Cayman) Limited, a
subsidiary of Lehman Brothers, Inc., a publicly-held entity.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(40)&nbsp;Exis Capital Management, Inc., as the investment manager for Exis
Differential Holdings Ltd, has voting and dispositive power over the securities
held by this security holder. Adam D. Sender is the sole shareholder of Exis
Capital Management, Inc.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(41)&nbsp;Vincent Gubitosi has voting and dispositive power over the securities
held by this security holder. Geode U.S. Convertible Arbitrage Fund is a
series of Geode Investors LLC, a Delaware series limited liability company.
Geode Capital Management, LLC, a Delaware limited liability company, is the
manger and investment manager of Geode Investors LLC. Geode Capital
Management, LLC is a registered investment advisor and a wholly-owned
subsidiary of Geode Capital Holdings LLC. Shares of Geode Capital Holdings LLC
are owned primarily by officers and senior employees of Fidelity, including
Edward C. Johnson 3d, Abigail P. Johnson, Robert L. Reynolds, Laura B. Cronin,
Timothy Hayes, Francis V. Knox, Jr., Eric D. Rolter and Philip L. Bullen, and
members of their families through partnerships and trusts for their benefit.
Mr.&nbsp;Johnson 3d, Ms.&nbsp;Johnson and members of their families indirectly own a
majority of the shares through an irrevocable voting trust for their benefit
administered by a trustee who is not an interested person of Fidelity or the
Johnson family.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(42)&nbsp;Larry Card, Elaine Havens, Simon Lee and Rex Olson have voting and
dispositive power over the securities held by this security holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(43)&nbsp;The sum of the listed principal amount of debentures beneficially
owned by selling security holders is more than $270,000,000 because certain
selling security holders may have transferred debentures pursuant to Rule&nbsp;144A
or otherwise reduced their position prior to selling pursuant to this
prospectus, and as a result we have received beneficial ownership information
from additional selling security holders without receipt of corresponding
information from the security holders that sold such amounts. The maximum
principal amount of debentures that may be sold under this prospectus will not
exceed $270,000,000.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(44)&nbsp;Information about other selling security holders will be set forth in
one or more post-effective amendments to the registration statement to which
this prospectus is a part to the extent such information is received by us.
Assumes that any other holders of debentures, or any future transferees,
pledgees, donees or successors of or from any such other holders of debentures,
do not beneficially own any common stock other than the common stock issuable
upon conversion of the debentures at the initial conversion rate or upon the
repurchase of the debentures.


<P align="center" style="font-size: 10pt">57
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="112"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>PLAN OF DISTRIBUTION</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling security holders may from time to time sell the debentures and
the common stock issuable upon the conversion or repurchase of the debentures
covered by this prospectus, which we collectively refer to in this section as
the securities, directly to purchasers or offer the securities through
underwriters, broker-dealers or agents, who may receive compensation in the
form of underwriting discounts, concessions or commissions from the selling
security holders and/or the purchasers of securities for whom they may act as
agent, which discounts, concessions or commissions as to any particular
underwriter, broker-dealer or agent may be in excess of those customary in the
types of transactions involved.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The securities may be sold in one or more transactions:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at fixed prices;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at prevailing market prices at the time of sale;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at varying prices determined at the time of sale; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at negotiated prices.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These sales may be effected in transactions that may involve crosses or
block transactions, in the following manner:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>on any national securities exchange or quotation service on which
the securities may be listed or quoted at the time of sale, including
the New York Stock Exchange in the case of our common stock;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the over-the-counter market;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in transactions otherwise than on these exchanges or services or in
the over-the-counter market; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>through the writing and exercise of options, whether these options
are listed on any options exchange or otherwise.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the sale of the securities, the selling security
holders may enter into hedging transactions with broker-dealers or other
financial institutions, which may in turn engage in short sales of the
securities in the course of hedging positions they assume. The selling security
holders may sell the securities short and deliver securities to close out short
positions, or loan or pledge the securities to broker-dealers that in turn may
sell these securities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our outstanding common stock is listed for trading on the New York Stock
Exchange under the symbol &#147;PWR.&#148; We do not intend to list the debentures on any
securities exchange. We cannot assure you as to the liquidity of any trading
market for the debentures that may develop.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to comply with the securities laws of some jurisdictions, if
applicable, the holders of securities may offer and sell those securities in
such jurisdictions only through registered or licensed brokers or dealers. In
addition, under certain circumstances, in some jurisdictions the securities may
not be offered or sold unless they have been registered or qualified for sale
in the applicable jurisdiction or an exemption from registration or
qualification requirements is available and is complied with.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling security holders, and any underwriters, broker-dealers or
agents that participate in the sale of securities, may be &#147;underwriters&#148; within
the meaning of Section&nbsp;2(a)(11) of the Securities Act. Selling security holders
that are also registered broker-dealers who act in connection with the sale of
the securities hereunder are &#147;underwriters&#148; within the meaning of the
Securities Act. Any discounts, commissions, concessions or profit they earn on
any sale of the securities may be underwriting compensation under the
Securities Act. Neither we nor any selling security holder can presently
estimate the amount of such compensation. Banc of America Securities LLC,
Context Convertible Arbitrage Fund, LP, Deutsche Bank Securities Inc.,
Jefferies &#038; Company Inc., KBC Financial Products USA Inc., McMahan Securities
Co. L.P., TD Securities (USA)&nbsp;Inc. and Van Kampen Harbor Fund have informed us
that they are registered broker-dealers, and as a result, they are underwriters
in connection with the sale of the debentures. Several of the selling security
holders are affiliates of registered broker-dealers. Each of these selling
security holders has informed us that (1)&nbsp;such selling security holder
purchased the debentures in the ordinary course of business and (2)&nbsp;at the time
that the debentures were


<P align="center" style="font-size: 10pt">58
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">purchased, the selling security holder had no agreements or
understandings, directly or indirectly, with any person to distribute the
debentures.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling security holders who are &#147;underwriters&#148; within the meaning of
Section&nbsp;2(a)(11) of the Securities Act will be subject to the prospectus
delivery requirements of the Securities Act and certain statutory and
regulatory liabilities, including liabilities imposed pursuant to Sections&nbsp;11,
12 and 17 of the Securities Act and Rule&nbsp;10b-5 under the Exchange Act. The
selling security holders have acknowledged that they understand their
obligations to comply with the provisions of the Exchange Act and the rules
thereunder relating to stock manipulation, particularly Regulation&nbsp;M, and have
agreed that they will not engage in any transaction in violation of such
provisions.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent required with respect to an offer of any of the securities
held by any of the selling security holders named in this prospectus, the
specific securities to be sold, the name of the applicable transferee, pledgee,
donee or successor to a selling security holder making such offer, the
respective purchase prices and public offering prices, the names of any agent,
dealer or underwriter and any applicable commissions or discounts with respect
to a particular offer will be set forth in an accompanying prospectus
supplement. To the extent required with respect to an offer of any securities
held by a holder whose identity is presently unknown to us, the foregoing
information and the name of the selling security holder will be set forth in a
post-effective amendment to the registration statement of which this prospectus
is a part.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To our knowledge, there are currently no plans, arrangements or
understandings between any selling security holders and any underwriter,
broker-dealer or agent regarding the sale of the debentures and the underlying
common stock by the selling security holders. Selling security holders may be
able to sell the debentures and the underlying common stock pursuant to an
exemption from the registration requirements of the Securities Act rather than
making sales pursuant to this prospectus. In addition, we cannot assure you
that any such selling security holder will not transfer, devise or gift the
debentures and the underlying common stock by other means not described in this
prospectus.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We entered into a registration rights agreement for the benefit of holders
of the securities to register their securities under applicable federal and
state securities laws under specific circumstances and at specific times. The
registration rights agreement provides for cross indemnification of the selling
security holders and us and their and our respective directors, officers and
controlling persons against specific liabilities in connection with the offer
and sale of the securities, including liabilities under the Securities Act.
Pursuant to the registration rights agreement, we will bear all fees and
expenses incurred in connection with the registration of the securities, except
that selling security holders will pay all broker&#146;s commissions.

<DIV align="left">
<A name="113"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>LEGAL MATTERS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weil, Gotshal &#038; Manges LLP has passed upon the validity of the debentures
offered hereby and the common stock issuable upon conversion of the debentures
on behalf of Quanta.

<DIV align="left">
<A name="114"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>EXPERTS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements of Quanta as of and for each of the
two years in the period ended December&nbsp;31, 2003, incorporated in this
prospectus by reference to the Annual Report on Form 10-K for the year ended
December&nbsp;31, 2003, have been so incorporated in reliance on the report of
PricewaterhouseCoopers LLP, an independent registered public accounting firm,
given on the authority of said firm as experts in auditing and accounting.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PricewaterhouseCoopers LLP&#146;s report refers to the adoption of the
provisions of Statement of Financial Accounting Standards No.&nbsp;142, &#147;Goodwill
and Other Intangible Assets,&#148; and to its audit of the transitional disclosures
for 2001, as more fully described in Note 2 to the financial statements.
However, PricewaterhouseCoopers LLP was not engaged to audit, review or apply
any procedures to the 2001 consolidated financial statements other than with
respect to such disclosures.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements of Quanta as of and for the year
ended December&nbsp;31, 2001, from our Annual Report on Form 10-K for the year ended
December&nbsp;31, 2003, incorporated by reference in this prospectus, have been
audited by Arthur Andersen LLP, independent accountants, as stated in their
reports appearing therein, and are incorporated by reference herein in reliance
upon the authority of said firm as experts in auditing and accounting.


<P align="center" style="font-size: 10pt">59
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent to Arthur Andersen&#146;s completion of our 2001 audit, the firm was
convicted of obstruction of justice charges, ceased practicing before the SEC,
and liquidated its business. As a result, it is impossible to obtain Arthur
Andersen&#146;s consent to the incorporation by reference of their reports in this
prospectus, and we have dispensed with the requirement to file their consent in
reliance upon Rule&nbsp;437a under the Securities Act of 1933. Because Arthur
Andersen has not consented to the incorporation by reference of their reports
in this prospectus, you would not be able to recover against Arthur Andersen
for its liability under Section&nbsp;11 of the Securities Act in the event of any
untrue statements of a material fact contained in the financial statements
audited by Arthur Andersen or any omissions to state a material fact required
to be stated therein.

<DIV align="left">
<A name="115"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>WHERE YOU CAN FIND MORE INFORMATION</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We file annual, quarterly and special reports, proxy statements and other
information with the SEC. You can read and copy any materials we file with the
SEC at its Public Reference Room at 450 Fifth Street, N.W., Washington, D.C.
20549. You can obtain information about the operation of the SEC&#146;s Public
Reference Room by calling the SEC at 1-800-SEC-0330. Copies can be obtained
from the SEC upon payment of the prescribed fees. The SEC also maintains a web
site that contains information we file electronically with the SEC, which you
can access over the Internet at http://www.sec.gov. In addition, you can obtain
information about us at the offices of the New York Stock Exchange at 20 Broad
Street, New York, New York 10005.

<DIV align="left">
<A name="116"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We &#147;incorporate by reference&#148; into this prospectus certain information we
file with the SEC, which means that we can disclose important information to
you by referring you to those documents. The information incorporated by
reference is considered to be part of this prospectus. Any statement made in a
document incorporated by reference in this prospectus is deemed to be modified
or superseded for purposes of this prospectus to the extent that a statement in
this prospectus or in any other subsequently filed document, which is also
incorporated by reference, modifies or supersedes the statement. Any statement
made in this prospectus is deemed to be modified or superseded to the extent a
statement in any subsequently filed document, which is incorporated by
reference in this prospectus, modifies or supersedes such statement. Any
statement so modified or superseded will not be deemed, except as so modified
or superseded, to constitute a part of this prospectus.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We incorporate by reference the filings listed below, which have
previously been filed with the SEC, and any future filings made with the SEC
prior to the termination of this offering under Sections&nbsp;13(a), 13(c), 14, or
15(d) of the Exchange Act (other than current reports furnished under Item&nbsp;2.02
or Item&nbsp;7.01 of Form 8-K unless specifically incorporated by reference by us).
All of these filings, which contain important information about us, are
considered a part of this prospectus.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our annual report on Form 10-K for the year ended December&nbsp;31, 2003, filed on March&nbsp;15, 2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our quarterly report on Form 10-Q for the quarter ended March&nbsp;31, 2004, filed on May&nbsp;10, 2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our quarterly report on Form 10-Q for the quarter ended June&nbsp;30, 2004, filed on August&nbsp;9, 2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The description of our common stock contained in our
registration statement on Form 8-A/A, filed on February&nbsp;6, 1998.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may obtain copies of documents incorporated by reference in this
document, without charge, by writing to us at the following address or calling
us at the telephone number listed below:


<P align="center" style="font-size: 10pt">Quanta Services, Inc.<BR>
1360 Post Oak Boulevard, Suite&nbsp;2100<BR>
Houston, Texas 77056<BR>
(713)&nbsp;629-7600<BR>
Attention: Corporate Secretary



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have filed with the SEC a registration statement on Form S-3 under the
Securities Act covering the debentures and the shares of common stock issuable
upon conversion of the debentures to be offered and sold by this prospectus.
This prospectus does not contain all of the information included in the
registration statement, some of which is contained in exhibits to the
registration statement. The registration statement, including the exhibits, can
be read at the SEC web site or at the SEC offices referred to above. Any
statement made or incorporated by reference into this prospectus concerning the
contents of any contract, agreement or other document is only a
summary of the actual contract, agreement or other document. If we have
filed any contract, agreement or other document as an exhibit to the
registration statement, you should read the exhibit for a more complete
understanding of the document or matter involved.



<P align="center" style="font-size: 10pt">60
</DIV>


</BODY>
</HTML>

</TEXT>
</DOCUMENT>
</SUBMISSION>
