<SUBMISSION>
<ACCESSION-NUMBER>0000950134-07-025173
<TYPE>424B5
<PUBLIC-DOCUMENT-COUNT>3
<FILING-DATE>20071211
<DATE-OF-FILING-DATE-CHANGE>20071211
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>WASHINGTON MUTUAL, INC
<CIK>0000933136
<ASSIGNED-SIC>6035
<IRS-NUMBER>911653725
<STATE-OF-INCORPORATION>WA
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>424B5
<ACT>33
<FILE-NUMBER>333-130929
<FILM-NUMBER>071297331
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1301 SECOND AVENUE
<CITY>SEATTLE
<STATE>WA
<ZIP>98101
<PHONE>206-461-2000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1301 SECOND AVENUE
<CITY>SEATTLE
<STATE>WA
<ZIP>98101
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>WASHINGTON MUTUAL INC
<DATE-CHANGED>19941123
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>424B5
<SEQUENCE>1
<FILENAME>v36123b5e424b5.htm
<DESCRIPTION>424B5
<TEXT>
<HTML>
<HEAD>
<TITLE>e424b5</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="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE style="color: #FF0000" width="100%" border="1" cellpadding="5"><TR><TD>
<FONT style="font-size: 10pt; color: #E8112D">The information in
this preliminary prospectus supplement is not complete and may
be changed. This preliminary prospectus supplement and the
accompanying prospectus are not an offer to sell these
securities and are not soliciting an offer to buy these
securities, in any jurisdiction where the offer or sale is not
permitted.<BR>
</FONT>
</TD></TR></TABLE>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Filed Pursuant to Rule&#160;424(b)(5)<BR>
    under the Securities Act of 1933<BR>
    Registration Statement No. 333-130929</B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times; color: #E8112D">Subject
    to Completion: Dated December&#160;10, 2007</FONT></B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Preliminary Prospectus Supplement to Prospectus Dated
    January&#160;9, 2006</B>
</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 13pt">2,500,000&#160;Shares</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="v36123b5s3612300.gif" alt="(WAMU LOGO)" ><FONT style="font-size: 13pt">
    </FONT>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 13pt">% SERIES&#160;R NON-CUMULATIVE
    PERPETUAL<BR>
    CONVERTIBLE PREFERRED STOCK</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 16%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=504 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Washington Mutual, Inc. is offering 2,500,000&#160;shares of
    our&#160;&#160;&#160;&#160;&#160;% Series&#160;R Non-Cumulative
    Perpetual Convertible Preferred Stock, referred to as the
    Series&#160;R Preferred Stock.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dividends on the Series&#160;R Preferred Stock will be payable
    quarterly in arrears, when, as and if declared by our board of
    directors, at a rate of&#160;&#160;&#160;&#160;&#160;% per year
    on the liquidation preference of $1,000 per share. The dividend
    payment dates will the 15th&#160;day of each March, June,
    September and December, commencing on March&#160;15, 2008, or
    the next business day if any such day is not a business day.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dividends on the Series&#160;R Preferred Stock will be
    non-cumulative. If for any reason our board of directors does
    not declare full cash dividends on the Series&#160;R Preferred
    Stock for a dividend period, we will have no obligation to pay
    any dividends for that period, whether or not our board of
    directors declares dividends on the Series&#160;R Preferred
    Stock for any subsequent dividend period. However, with certain
    exceptions, if we have not declared, paid or set aside for
    payment full quarterly dividends on the Series&#160;R Preferred
    Stock for a particular dividend period, we may not declare or
    pay dividends on or redeem or purchase our common stock or other
    junior securities during the next succeeding dividend period.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each share of the Series&#160;R Preferred Stock may be converted
    at any time, at the option of the holder,
    into&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our common stock (which reflects an approximate initial
    conversion price of $&#160;&#160;&#160;&#160;&#160; per share of
    common stock) plus cash in lieu of fractional shares, subject to
    anti-dilution adjustments. The conversion rate will be adjusted
    as described herein upon the occurrence of certain make-whole
    acquisition transactions and other events.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Series&#160;R Preferred Stock is not redeemable by us at any
    time. On or after December&#160;18, 2012, if the closing price
    of our common stock exceeds 130% of the conversion price for 20
    trading days during any consecutive 30 trading day period,
    including the last trading day of such period, ending on the
    trading day preceding the date we give notice of mandatory
    conversion, we may at our option cause some or all of the
    Series&#160;R Preferred Stock to be automatically converted into
    common stock at the then prevailing conversion rate.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to this offering, there has been no public market for the
    Series&#160;R Preferred Stock. We have applied to list the
    Series&#160;R Preferred Stock on the New York Stock Exchange
    under the symbol &#147;WM PrR,&#148; and expect trading in the
    Series&#160;R Preferred Stock to begin within 30&#160;days of
    December&#160;&#160;&#160;, 2007, the original issue date. Our
    common stock is listed on the New York Stock Exchange under the
    symbol &#147;WM.&#148; The last reported price of our common
    stock on December&#160;10, 2007 was $19.88 per share.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 16%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=504 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The shares of Series&#160;R Preferred Stock are not savings
    accounts, deposits or other obligations of any bank and are not
    insured or guaranteed by the Federal Deposit Insurance
    Corporation or any other government agency.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 16%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=504 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Investing in the shares of Series&#160;R Preferred Stock
    involves risks. See &#147;Risk Factors&#148; beginning on
    <FONT style="white-space: nowrap">page&#160;S-11.</FONT></B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="85%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Per Share</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Price to the public
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Underwriting discounts and commissions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proceeds to Washington Mutual, Inc. (before expenses)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">

</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have granted the underwriters the right to purchase up to an
    additional 375,000 shares of the Series&#160;R Preferred Stock
    to cover over-allotments
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Neither the Securities and Exchange Commission nor any other
    regulatory body has approved or disapproved of these securities
    or passed upon the adequacy or accuracy of this prospectus
    supplement or the accompanying prospectus. Any representation to
    the contrary is a criminal offense.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters expect to deliver the shares of Series&#160;R
    Preferred Stock against payment in New York, New York on or
    about December&#160;&#160;&#160;, 2007.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 16%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=504 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-size: 12pt; font-family: 'Times New Roman', Times">LEHMAN
    BROTHERS</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 12pt; font-family: 'Times New Roman', Times">MORGAN
    STANLEY</FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-family: 'Times New Roman', Times">CREDIT
    SUISSE</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-family: 'Times New Roman', Times">GOLDMAN,
    SACHS&#160;&#038; CO.</FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 16%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=504 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <FONT style="font-family: 'Times New Roman', Times">BARCLAYS
    CAPITAL
    </FONT></TD>
    <TD nowrap align="right">    <FONT style="font-family: 'Times New Roman', Times">CITI
    </FONT></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <FONT style="font-family: 'Times New Roman', Times">DEUTSCHE
    BANK SECURITIES
    </FONT></TD>
    <TD nowrap align="right">    <FONT style="font-family: 'Times New Roman', Times">JPMORGAN
    </FONT></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <FONT style="font-family: 'Times New Roman', Times">RBS
    GREENWICH CAPITAL
    </FONT></TD>
    <TD nowrap align="right">    <FONT style="font-family: 'Times New Roman', Times">UBS
    INVESTMENT BANK
    </FONT></TD>
</TR>

</TABLE>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<TR>
<TD width="1%%" align="center" nowrap>
    <FONT style="font-size: 10pt">BNY CAPITAL MARKETS, INC.
    </FONT>
</TD>
<TD width="99%%">
&nbsp;
</TD>
</TR>
</TABLE>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<TR>
<TD width="16%">
&nbsp;
</TD>
<TD width="33%" align="center" nowrap>
    <FONT style="font-size: 10pt">CABRERA CAPITAL MARKETS, LLC
    </FONT>
</TD>
<TD width="51%">
&nbsp;
</TD>
</TR>
</TABLE>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<TR>
<TD width="32%">
&nbsp;
</TD>
<TD width="27%" align="center" nowrap>
    <FONT style="font-size: 10pt">KEEFE, BRUYETTE &#038; WOODS
    </FONT>
</TD>
<TD width="41%">
&nbsp;
</TD>
</TR>
</TABLE>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<TR>
<TD width="48%">
&nbsp;
</TD>
<TD width="20%" align="center" nowrap>
    <FONT style="font-size: 10pt">RAMIREZ &#038; CO., INC.
    </FONT>
</TD>
<TD width="32%">
&nbsp;
</TD>
</TR>
</TABLE>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<TR>
<TD width="99%%">
&nbsp;
</TD>
<TD width="1%%" align="center" nowrap>
    <FONT style="font-size: 10pt">THE WILLIAMS CAPITAL GROUP, L.P.
    </FONT>
</TD>
</TR>
</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 9pt">December&#160;&#160;&#160;, 2007.
    </FONT>
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV align="left">
<!-- TOC -->
</DIV>

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

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'>About This Prospectus Supplement</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-ii
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'>Incorporation of Certain Documents by
    Reference</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-ii
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'>Special Note Regarding Forward-Looking
    Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-iii
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'>Summary</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'>Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-11
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-23
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'>Ratio of Earnings to Fixed Charges and Ratio of
    Earnings to Combined Fixed Charges and Preferred Dividends</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-23
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'>Capitalization</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-24
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'>Description of Series&#160;R Preferred Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-25
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'>Description of Other Preferred Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-42
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'>Clearance and Settlement</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-47
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'>Certain U.S. Federal Income Tax Considerations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-48
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'>Certain ERISA Considerations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-54
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'>Underwriting</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-56
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#115'>Validity of Shares</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-61
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'>Experts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-61
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Prospectus</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#301'>About this Prospectus</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#302'>Where You Can Find Additional Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#303'>Incorporation of Certain Documents by
    Reference</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#304'>Special Note&#160;Regarding Forward-Looking
    Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#305'>The Company</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#306'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#307'>Ratio of Earnings to Fixed Charges</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#308'>Description of Debt Securities</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#309'>Description of Capital Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#310'>Description of Depositary Shares</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#311'>Plan of Distribution</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#312'>Legal Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#313'>Experts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

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

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>You should rely only on the information contained in or
    incorporated by reference in this prospectus supplement and the
    accompanying prospectus. No one is authorized to give you
    information other than that contained in this prospectus
    supplement and the accompanying prospectus. This prospectus
    supplement may be used only for the purpose for which it has
    been prepared. We have not, and the underwriters have not,
    authorized any other person to provide you with different
    information. If anyone provides you with different or
    inconsistent information, you should not rely on it.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>We are not, and the underwriters are not, making an offer to
    sell the shares of Series&#160;R Preferred Stock in any
    jurisdiction where the offer or sale is not permitted. You
    should not assume that the information appearing in this
    prospectus supplement, the accompanying prospectus or any
    document incorporated by reference in this prospectus supplement
    or the accompanying prospectus is accurate as of any date other
    than the date of the applicable document. Our business,
    financial condition, results of operations and prospects may
    have changed since that date. This prospectus supplement and the
    accompanying prospectus do not constitute an offer, or an
    invitation on our behalf or on behalf of the underwriters, to
    subscribe for and purchase any of the shares of Series&#160;R
    Preferred Stock and may not </B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-i
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>be used for or in connection with an offer or solicitation by
    anyone in any jurisdiction in which such an offer or
    solicitation is not authorized or to any person to whom it is
    unlawful to make such an offer or solicitation.</B>
</DIV>


<!-- link1 "ABOUT THIS PROSPECTUS SUPPLEMENT" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='101'></A><B><FONT style="font-family: 'Times New Roman', Times">ABOUT
    THIS PROSPECTUS SUPPLEMENT</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This document is in two parts. The first part is this prospectus
    supplement, which describes the specific terms of this offering
    of shares of Series&#160;R Preferred Stock and also adds to and
    updates information contained in the accompanying prospectus and
    the documents incorporated by reference into this prospectus
    supplement and the accompanying prospectus. The second part, the
    accompanying prospectus, gives more general information, some of
    which may not apply to this offering. You should read both this
    prospectus supplement and the accompanying prospectus, as well
    as the information incorporated by reference into both documents.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the description of the offering varies between this
    prospectus supplement and the accompanying prospectus, you
    should rely on the information contained in this prospectus
    supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As used in this prospectus supplement, the terms
    <B>&#147;we&#148;</B>, <B>&#147;us&#148;</B>, and
    <B>&#147;our&#148;</B> refer to Washington Mutual, Inc. and the
    term <B>&#147;Washington Mutual&#148;</B> refers to Washington
    Mutual, Inc. and its consolidated subsidiaries.
</DIV>


<!-- link1 "INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='112'></A><B><FONT style="font-family: 'Times New Roman', Times">INCORPORATION
    OF CERTAIN DOCUMENTS BY REFERENCE</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We file annual, quarterly and current reports, proxy statements
    and other information with the Securities and Exchange
    Commission, or &#147;<B>SEC</B>.&#148; You may read and copy any
    document that we file at the SEC&#146;s public reference room at
    100&#160;F&#160;Street, N.E., Washington,&#160;D.C. Please call
    the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information on the public reference room. In
    addition, our SEC filings are available to the public from the
    SEC&#146;s web site at
    <FONT style="white-space: nowrap">http://www.sec.gov.</FONT>
    Our SEC filings are also available at the offices of the New
    York Stock Exchange, or &#147;<B>NYSE</B>.&#148; For further
    information on obtaining copies of our public filings at the
    NYSE, you should call
    <FONT style="white-space: nowrap">212-656-5060.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The SEC allows us to incorporate by reference the information we
    file with it, 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 a part
    of this prospectus supplement, and later information that we
    file with the SEC will automatically update and supersede this
    information. We incorporate by reference the following documents
    listed below and any future filings made with the SEC under
    Section&#160;13(a), 13(c), 14 or 15(d) of the Securities
    Exchange Act of 1934, as amended (the &#147;<B>Exchange
    Act</B>&#148;), until the completion of the distribution of the
    securities:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2006;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our Quarterly Reports on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarters ended March&#160;31, 2007, June&#160;30, 2007
    and September&#160;30, 2007;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our Current Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    (in each case, other than information and exhibits
    &#147;furnished&#148; to and not &#147;filed&#148; with the SEC
    in accordance with SEC rules and regulations) filed on
    January&#160;22, 2007, February&#160;7, 2007, March&#160;14,
    2007, April&#160;23, 2007, May&#160;30, 2007, July&#160;18,
    2007, October&#160;30, 2007, October&#160;31, 2007,
    November&#160;9, 2007, November&#160;15, 2007 and
    December&#160;10, 2007.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may request a copy of these filings, at no cost, by writing
    or telephoning us at the following address:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Washington Mutual, Inc.
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1301 Second Avenue
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Seattle, Washington 98101
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Telephone:
    <FONT style="white-space: nowrap">(206)&#160;500-5200</FONT>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Attention: Investor Relations Department WMC2203
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have also filed a registration statement
    <FONT style="white-space: nowrap">(No.&#160;333-130929)</FONT>
    with the SEC relating to the securities offered by this
    prospectus supplement and the accompanying prospectus. This
    prospectus supplement is part of
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-ii
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the registration statement. You may obtain from the SEC a copy
    of the registration statement and exhibits that we filed with
    the SEC when we registered the securities. The registration
    statement may contain additional information that may be
    important to you.
</DIV>


<!-- link1 "SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='113'></A><B><FONT style="font-family: 'Times New Roman', Times">SPECIAL
    NOTE&#160;REGARDING FORWARD-LOOKING STATEMENTS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus supplement and the accompanying prospectus
    contain or incorporate by reference forward-looking statements
    within the meaning of Section&#160;27A of the Securities Act of
    1933, as amended (the &#147;<B>Securities Act</B>&#148;), and
    Section&#160;21E of the Exchange Act. Forward-looking statements
    can be identified by the fact that they do not relate strictly
    to historical or current facts. They often include words such as
    &#147;expects,&#148; &#147;anticipates,&#148;
    &#147;intends,&#148; &#147;plans,&#148; &#147;believes,&#148;
    &#147;seeks,&#148; &#147;estimates,&#148; or words of similar
    meaning, or future or conditional verbs such as
    &#147;will,&#148; &#147;would,&#148; &#147;should,&#148;
    &#147;could&#148; or &#147;may.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Forward-looking statements provide management&#146;s current
    expectations or predictions of future conditions, events or
    results. They may include projections of our revenues, income,
    earnings per share, capital expenditures, dividends, capital
    structure or other financial items, descriptions of
    management&#146;s plans or objectives for future operations,
    products or services, or descriptions of assumptions underlying
    or relating to the foregoing. They are not guarantees of future
    performance. By their nature, forward-looking statements are
    subject to risks and uncertainties. These statements speak only
    as of the date they are made. Management does not undertake to
    update forward-looking statements to reflect the impact of
    circumstances or events that arise after the date the
    forward-looking statements were made except as required by
    federal securities law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There are a number of significant factors which could cause
    actual conditions, events or results to differ materially from
    those described in the forward-looking statements, many of which
    are beyond management&#146;s control or its ability to
    accurately forecast or predict. Factors that might cause our
    future performance to vary from that described in our
    forward-looking statements include market, credit, operational,
    regulatory, strategic, liquidity, capital and economic factors
    as described under &#147;Risk Factors&#148; in this prospectus
    supplement and in our periodic reports filed with the SEC,
    including, without limitation, a continued general decline in
    U.S. housing prices and mortgage activity, continued increases
    in the delinquency rates of borrowers, and a continued reduction
    in the availability of secondary markets for our mortgage loan
    products. In addition, other factors could adversely affect our
    results and this list is not a complete set of all potential
    risks or uncertainties. These factors should not be construed as
    exhaustive and should be read in conjunction with the other
    cautionary statements that are included or incorporated by
    reference in this prospectus supplement.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-iii
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->


<!-- link1 "SUMMARY" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='102'></A><B><FONT style="font-family: 'Times New Roman', Times">SUMMARY</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>This summary highlights information contained elsewhere, or
    incorporated by reference, in this prospectus supplement. As a
    result, it does not contain all the information that may be
    important to you. To understand this offering fully, you must
    read this entire prospectus supplement and the accompanying
    prospectus carefully, including the risk factors beginning on
    <FONT style="white-space: nowrap">page&#160;S-11</FONT>
    and the documents incorporated by reference into this prospectus
    supplement and the accompanying prospectus.</I>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Washington
    Mutual, Inc.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With a history dating back to 1889, Washington Mutual, Inc. is a
    retailer of financial services to consumers and small
    businesses. Based on our consolidated total assets at
    September&#160;30, 2007, we were the largest thrift holding
    company in the United States and seventh largest among all
    <FONT style="white-space: nowrap">U.S.-based</FONT>
    bank and thrift holding companies. We operate principally in
    California, Washington, Oregon, Illinois, Florida, Texas and the
    greater New York/New Jersey metropolitan area, and have
    operations in 25 other states. As of September&#160;30, 2007, we
    served the needs of approximately 19.9&#160;million consumer
    households through 2,212 retail banking stores, 463 lending
    stores and centers, 3,968 ATMs, telephone call centers and
    online banking. As of September&#160;30, 2007, on a consolidated
    basis, we had total assets of approximately $330&#160;billion,
    total liabilities of approximately $306&#160;billion, total
    deposits of approximately $194&#160;billion and total
    stockholders&#146; equity of approximately $24&#160;billion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our earnings are primarily driven by lending to consumers and
    small businesses and by deposit-taking activities which generate
    net interest income, and by activities that generate noninterest
    income, including the sale and servicing of loans and the
    provision of fee-based services to our customers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We operate through four main business segments: the Retail
    Banking Group, the Card Services Group, the Commercial Group and
    the Home Loans Group. The Retail Banking Group, the Card
    Services Group and the Home Loans Group are consumer-oriented,
    while the Commercial Group serves commercial customers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Retail Banking Group.</I>&#160;&#160;The principal activities
    of the Retail Banking Group include: (1)&#160;offering a
    comprehensive line of deposit and other retail banking products
    and services to consumers and small businesses; (2)&#160;holding
    both our portfolio of home loans held for investment and the
    substantial majority of our portfolio of home equity loans and
    lines of credit (but not our portfolio of mortgage loans to
    higher risk borrowers originated or purchased through the
    subprime mortgage channel); (3)&#160;originating home equity
    loans and lines of credit; and (4)&#160;providing investment
    advisory and brokerage services, sales of annuities and other
    financial services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Card Services Group.</I>&#160;&#160;The Card Services Group
    manages our credit card operations. The group&#146;s principal
    activities include (1)&#160;issuing credit cards;
    (2)&#160;either holding outstanding balances on credit cards in
    portfolio or securitizing and selling them; (3)&#160;servicing
    credit card accounts; and (4)&#160;providing other cardholder
    services. Credit card balances that are held in our loan
    portfolio generate interest income from finance charges on
    outstanding card balances, and noninterest income from the
    collection of fees associated with the credit card portfolio,
    such as performance fees (late, overlimit and returned check
    charges), annual membership fees and cash advance and balance
    transfer fees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Commercial Group.</I>&#160;&#160;The principal activities of
    the Commercial Group include: (1)&#160;providing financing to
    developers and investors for multi-family dwellings and, to a
    lesser extent, other commercial properties; (2)&#160;servicing
    multi-family and other commercial real estate loans and holding
    such loans in its portfolio as part of its commercial asset
    management business; and (3)&#160;providing limited deposit
    services to commercial customers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Home Loans Group.</I>&#160;&#160;The principal activities of
    the Home Loans Group include: (1)&#160;originating and servicing
    home loans; (2)&#160;originating and servicing home equity loans
    and lines of credit; (3)&#160;holding certain residential
    mortgages in its loan portfolio, including mortgage loans to
    higher risk borrowers that were offered
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-1
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    through the subprime mortgage channel; and (4)&#160;making
    available insurance-related products and participating in
    reinsurance activities with other insurance companies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are incorporated in the state of Washington and are a savings
    and loan holding company. We own two banking subsidiaries as
    well as numerous nonbank subsidiaries. As a savings and loan
    holding company, we are subject to regulation by the Office of
    Thrift Supervision (the <B>&#147;OTS&#148;</B>). Our banking
    subsidiaries, Washington Mutual Bank and Washington Mutual Bank
    fsb, are subject to regulation and examination by the OTS (their
    primary federal regulator) as well as the Federal Deposit
    Insurance Corporation (the <B>&#147;FDIC&#148;</B>). Our
    principal business offices are located at 1301 Second Avenue,
    Seattle, Washington 98101.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Recent
    Developments</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Capital
    and Liquidity Strengthening Measures</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On December&#160;10, 2007, we announced a series of measures
    designed to address the challenges we face from the continuing
    disruptions in the mortgage and capital markets by strengthening
    our capital and liquidity resources and accelerating the
    alignment of our Home Loans business with our Retail Banking
    operations. These measures include this offering as well as a
    planned major reduction in company-wide noninterest expense
    (such reduction estimated at approximately $500&#160;million for
    2008) as a result of a substantial resizing of our Home Loans
    business and reduced corporate support expense, together with a
    significant change in the strategic focus of our Home Loans
    business in response to a changed market.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, our board of directors intends to reduce the
    quarterly dividend rate on our common stock to $0.15 per share
    from the most recent quarterly rate of $0.56 per share, which we
    anticipate will result in potential capital savings in 2008 of
    approximately $1.4&#160;billion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As previously announced, we believe that the mortgage market is
    undergoing a fundamental shift due to credit dislocation and a
    prolonged period of reduced capital markets liquidity. As a
    result, we expect national mortgage originations to shrink by
    approximately 40&#160;percent in 2008 compared to 2007. To
    reflect the changes in this market, we will substantially adjust
    and resize our Home Loans business and also reduce corporate
    support expense. These actions include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    discontinuing all remaining lending through our subprime
    mortgage channel,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    closing approximately 190 of our 336 home loan centers and sales
    offices,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    closing nine Home Loans processing and call centers,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    eliminating approximately 2,600 Home Loans positions, or about
    22&#160;percent of the Home Loans staff,
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    eliminating approximately 550 corporate and other support
    positions, and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    closing WaMu Capital Corp., our institutional broker-dealer
    business, as well as our mortgage banker finance warehouse
    lending operation,
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the same time, we plan to accelerate our previously announced
    strategy to expand our focus on mortgage lending directly to
    customers through our retail banking stores and other retail
    distribution channels. We will also add bank loan consultants to
    support our retail store network.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result of the fundamental shift in the mortgage market and
    the actions we are taking to resize our Home Loans business, we
    will incur a fourth quarter after-tax charge of approximately
    $1.6&#160;billion for the write-down of all the goodwill
    associated with the Home Loans business. This non-cash charge
    will not affect our tangible or regulatory capital or our
    liquidity.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Financial
    Update</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Loan Loss Provision.</I>&#160;&#160;Continued deterioration
    in the mortgage markets and declining housing prices have led to
    increasing fourth quarter charge-offs and delinquencies in our
    loan portfolio. As a result, we now expect our fourth quarter
    2007 provision for loan losses to be between $1.5 and
    $1.6&#160;billion, approximately twice the level of expected
    fourth quarter net charge-offs.
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-2
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently expect our first quarter 2008 provision for loan
    losses to be in the range of $1.8 to $2.0&#160;billion,
    reflecting an increase in provision which we expect to be well
    ahead of charge-offs, which are also expected to increase
    significantly during that quarter. The first quarter 2008 range
    reflects our current view that prevailing adverse conditions in
    the credit and housing markets will persist through 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While difficult to predict, we also currently expect quarterly
    loan loss provisions through the end of 2008 to remain elevated,
    generally consistent with our expectation for the first quarter
    of 2008. We anticipate that there may be some additional
    variation depending on the level of credit card securitization
    activity during any quarter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Noninterest Expense.</I>&#160;&#160;We expect that our
    expense reduction steps described above will result in
    approximately $140&#160;million in additional expenses in the
    fourth quarter of 2007. We are targeting company-wide
    noninterest expense at or below $8.0&#160;billion for 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Fourth Quarter Loss.</I>&#160;&#160;Including the effect of
    non-cash, goodwill-related charges, we expect to report a net
    loss for the fourth quarter of 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As discussed in this prospectus supplement and the documents
    incorporated in it by reference, our business, financial
    condition and operating results have been and continue to be
    adversely affected by ongoing disruptions in the mortgage and
    capital markets, among other trends. Further significant
    deterioration in these markets or other trends that affect us
    could adversely affect the outlook for our operations as
    described above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a discussion of factors that could affect our business,
    financial condition and operating results in the fourth quarter
    of this year and in future periods, see &#147;Special Note
    Regarding Forward-Looking Statements&#148; and &#147;Risk
    Factors.&#148;
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-3
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    OFFERING</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    Issuer</TD>
    <TD></TD>
    <TD valign="bottom">
    Washington Mutual, Inc., a Washington corporation.</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Securities Offered</TD>
    <TD></TD>
    <TD valign="bottom">
    2,500,000&#160;shares of&#160;&#160;&#160;&#160;&#160;%
    Series&#160;R Non-Cumulative Perpetual Convertible Preferred
    Stock.</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Option to Purchase Additional Shares of Series&#160;R Preferred
    Stock</DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    We have granted the underwriters an option to purchase up to
    375,000&#160;additional shares of the Series&#160;R Preferred
    Stock from us at the price to the public, less the underwriting
    discounts, within 30&#160;days from the date of this prospectus
    supplement to cover over-allotments.</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Dividends</TD>
    <TD></TD>
    <TD valign="bottom">
    Dividends on the Series&#160;R Preferred Stock will be payable
    quarterly if, when and as declared by our board of directors out
    of legally available funds at an annual rate
    of&#160;&#160;&#160;&#160;&#160;% on the per share liquidation
    preference of $1,000 per share.</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Dividends on the Series&#160;R Preferred Stock will be
    non-cumulative. If for any reason our board of directors does
    not declare full cash dividends on the Series&#160;R Preferred
    Stock for a quarterly dividend period, we will have no
    obligation to pay any dividends for that period, whether or not
    our board of directors declares dividends on the Series&#160;R
    Preferred Stock for any subsequent dividend period.</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Dividend Payment Dates</TD>
    <TD></TD>
    <TD valign="bottom">
    March&#160;15, June&#160;15, September 15 and December 15 of
    each year (or the following business day if such date is not a
    business day), commencing on March&#160;15, 2008.</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Dividend Stopper</TD>
    <TD></TD>
    <TD valign="bottom">
    With certain limited exceptions, if we do not pay full quarterly
    dividends on the Series&#160;R Preferred Stock for a particular
    dividend period, we may not pay dividends on, or repurchase,
    redeem or make a liquidation payment with respect to, our common
    stock or other junior securities during the next succeeding
    dividend period.</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Redemption</TD>
    <TD></TD>
    <TD valign="bottom">
    The Series&#160;R Preferred Stock is not redeemable.</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Maturity</TD>
    <TD></TD>
    <TD valign="bottom">
    Perpetual.</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Conversion Right</TD>
    <TD></TD>
    <TD valign="bottom">
    Each share of the Series&#160;R Preferred Stock may be converted
    at any time, at the option of the holder,
    into&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our common stock (which reflects an approximate initial
    conversion price of $&#160;&#160;&#160;&#160;&#160; per share of
    our common stock) plus cash in lieu of fractional shares,
    subject to anti-dilution adjustments.</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    If the conversion date is prior to the record date for any
    declared cash dividend for the dividend period in which you
    elect to convert, you will not receive any declared cash
    dividends for that dividend period. If the conversion date is
    after the record date for any declared cash dividend and prior
    to the dividend payment date, you will receive that cash
    dividend on the relevant dividend payment date if you were the
    holder of record on the record date for that dividend; however,
    whether or not you were the holder of record on the record date,
    you must pay to the conversion agent when you convert your
    shares of Series&#160;R Preferred Stock an amount in cash equal
    to the full dividend actually paid on the dividend payment date
    for the then-current dividend period on the shares being
    converted, unless your shares are being converted as a
    consequence of a mandatory conversion at our option, a
    make-whole acquisition or a fundamental change as described
    below.</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

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    <BR>
    S-4
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    Mandatory Conversion at Our Option</TD>
    <TD></TD>
    <TD valign="bottom">
    On or after December&#160;18, 2012, we may, at our option, or
    any time or from time to time cause some or all of the
    Series&#160;R Preferred Stock to be converted into shares of our
    common stock at the then applicable conversion rate. We may
    exercise our conversion right if, for 20 trading days within any
    period of 30 consecutive trading, including the last trading day
    of such period, days ending on the trading day preceding the
    date we give notice of mandatory conversion, the closing price
    of our common stock exceeds 130% of the then applicable
    conversion price of the Series&#160;R Preferred Stock.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Conversion Upon Certain Acquisitions</TD>
    <TD></TD>
    <TD valign="bottom">
    The following provisions will apply if one of the following
    events occur:</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;a &#147;person&#148; or &#147;group&#148; within the
    meaning of Section&#160;13(d) of the Exchange Act files a
    Schedule&#160;TO or any 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
    <FONT style="white-space: nowrap">Rule&#160;13d-3</FONT>
    under the Exchange Act, of our common equity representing more
    than 50% of the voting power of our common stock;&#160;or</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;consummation of any consolidation or merger of us or
    similar transaction 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 one of our subsidiaries, in
    each case pursuant to which our common stock will be converted
    into cash, securities or other property.</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    These transactions are referred to as <B>&#147;make-whole
    acquisitions&#148;</B>; provided, however that a make-whole
    acquisition will not be deemed to have occurred if at least 90%
    of the consideration received by holders of our common stock in
    the transaction or transactions consists of shares of common
    stock or American Depositary Receipts in respect of common stock
    that are traded on a U.S. national securities exchange or that
    will be so traded when issued or exchanged in connection with a
    make-whole acquisition.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Upon a make-whole acquisition, we will, under certain
    circumstances, be required to pay a make-whole adjustment in the
    form of an increase in the conversion rate upon any conversions
    of the Series&#160;R Preferred Stock that occur during the
    period beginning on the effective date of the make-whole
    acquisition and ending on the date that is 30&#160;days after
    the effective date as described herein. The make-whole
    adjustment will be payable in shares of our common stock or the
    consideration into which our common stock has been converted or
    exchanged in connection with the make-whole acquisition.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    The amount of the make-whole adjustment, if any, will be based
    on the stock price and the effective date of the make-whole
    acquisition. A description of how the make-whole adjustment will
    be determined and a table showing the make-whole adjustment that
    would apply at various stock prices and effective dates is set
    forth under &#147;Description of Series&#160;R Preferred
    Stock&#160;&#151; Conversion Upon Fundamental Change.&#148;</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-5
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Conversion Upon Fundamental Change</DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    If the reference price (as defined under &#147;Description of
    Series&#160;R Preferred Stock&#160;&#151; Conversion Upon
    Fundamental Change&#148;) in connection with a fundamental
    change (as defined under &#147;Description of Series&#160;R
    Preferred Stock&#160;&#151; Conversion Upon Fundamental
    Change&#148;) is less than the applicable conversion price, each
    share of Series&#160;R Preferred Stock may be converted during
    the period beginning on the effective date of the fundamental
    change and ending on the date that is 30&#160;days after the
    effective date of such fundamental change at an adjusted
    conversion price equal to the greater of (1)&#160;the reference
    price and (2)&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    which is 50% of the closing price of our common stock on the
    date of this prospectus supplement, subject to adjustment. If
    the reference price is less than
    $&#160;&#160;&#160;&#160;&#160;, holders will receive a maximum
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our common stock per share of Series&#160;R Preferred Stock,
    subject to adjustment, which may result in a holder receiving
    value that is less than the liquidation preference of the
    Series&#160;R Preferred Stock. In lieu of issuing common stock
    upon conversion in the event of a fundamental change, we may at
    our option, and if we obtain any necessary regulatory approval,
    make a cash payment equal to the reference price for each share
    of common stock otherwise issuable upon conversion.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    See &#147;Description of Series&#160;R Preferred
    Stock&#160;&#151; Conversion Upon Fundamental Change.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Reorganization Events (Including Mergers)</DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    The following provisions apply in the event of certain
    <B>&#147;reorganization events,&#148;</B> which include, subject
    to certain exceptions:</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;any consolidation or merger of us with or into
    another person in each case pursuant to which our common stock
    will be converted into cash, securities or other property;</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;any sale, transfer, lease or conveyance to another
    person of all or substantially all of our property and assets in
    each case pursuant to which our common stock will be converted
    into cash, securities or other property; or</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;certain reclassifications of our common stock or
    statutory exchanges of our securities.</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Each share of the Series&#160;R Preferred Stock outstanding
    immediately prior to the reorganization events will become
    convertible at the option of the holders of the Series&#160;R
    Preferred Stock into the kind of securities, cash and other
    property receivable in the reorganization event by holders of
    our common stock. See &#147;Description of Series&#160;R
    Preferred Stock&#160;&#151; Reorganization Events.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Anti-Dilution Adjustments</TD>
    <TD></TD>
    <TD valign="bottom">
    The conversion rate may be adjusted in the event of, among other
    things, (1)&#160;increases in cash dividends, (2)&#160;dividends
    or distributions in common stock or other property,
    (3)&#160;certain issuances of stock purchase rights,
    (4)&#160;certain self tender offers or (5)&#160;subdivisions,
    splits and combinations of the common stock. See
    &#147;Description of Series&#160;R Preferred Stock&#160;&#151;
    Anti-Dilution Adjustments.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Liquidation Rights</TD>
    <TD></TD>
    <TD valign="bottom">
    Upon our voluntary or involuntary liquidation, dissolution or
    <FONT style="white-space: nowrap">winding-up,</FONT>
    holders of Series&#160;R Preferred Stock will be entitled to
    receive out of our assets that are legally available for
    distribution to </TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

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    <BR>
    S-6
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    stockholders, before any distribution is made to holders of our
    common stock or other junior securities, a liquidating
    distribution in the amount of $1,000 per share of Series&#160;R
    Preferred Stock plus any declared and unpaid dividends, without
    accumulation of any undeclared dividends. Distributions will be
    made pro rata as to the Series&#160;R Preferred Stock and any
    other parity securities and only to the extent of our assets, if
    any, that are available after satisfaction of all liabilities to
    creditors.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Voting Rights</TD>
    <TD></TD>
    <TD valign="bottom">
    Holders of the Series&#160;R Preferred Stock will have no voting
    rights, except with respect to certain fundamental changes in
    the terms of the Series&#160;R Preferred Stock and certain other
    matters. In addition, if dividends on the Series&#160;R
    Preferred Stock are not paid in full for six dividend periods,
    whether consecutive or not, the holders of Series&#160;R
    Preferred Stock, acting as a class with any other parity
    securities having similar voting rights, will have the right to
    elect two directors to our board. The terms of office of these
    directors will end when we have paid or set aside for payment
    full quarterly dividends for four consecutive dividend periods.
    See &#147;Description of Series&#160;R Preferred
    Stock&#160;&#151; Voting Rights.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Ranking</TD>
    <TD></TD>
    <TD valign="bottom">
    The Series&#160;R Preferred Stock will rank, with respect to the
    payment of dividends and distributions upon liquidation,
    dissolution or
    <FONT style="white-space: nowrap">winding-up,</FONT>
    senior to our common stock, our Series&#160;RP Preferred Stock
    and each other class or series of preferred stock we may issue
    in the future the terms of which do not expressly provide that
    it ranks on a parity with or senior to the Series&#160;R
    Preferred Stock as to dividend rights and rights on liquidation,
    <FONT style="white-space: nowrap">winding-up</FONT>
    and dissolution of Washington Mutual, Inc. The Series&#160;R
    Preferred Stock will rank on a parity with our outstanding
    Series&#160;K Preferred Stock and any Series&#160;I Preferred
    Stock, Series&#160;J Preferred Stock, Series&#160;L Preferred
    Stock, Series&#160;M Preferred Stock and Series&#160;N Preferred
    Stock we may issue in the future and each other class or series
    of preferred stock we may issue in the future the terms of which
    expressly provide that such class or series will rank on a
    parity with the Series&#160;R Preferred Stock as to dividend
    rights and rights on liquidation, winding up and dissolution of
    Washington Mutual, Inc.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    As of September&#160;30, 2007, 500&#160;shares of our
    Series&#160;K Preferred Stock were outstanding. See
    &#147;Description of Other Preferred Stock.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Preemptive Rights</TD>
    <TD></TD>
    <TD valign="bottom">
    None.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Listing</TD>
    <TD></TD>
    <TD valign="bottom">
    Prior to this offering, there has been no public market for the
    Series&#160;R Preferred Stock. We have applied to list the
    Series&#160;R Preferred Stock on the New York Stock Exchange
    under the symbol &#147;WM PrR.&#148; If the application is
    approved, we expect trading in the Series&#160;R Preferred Stock
    to begin within 30&#160;days of December&#160;&#160;&#160;,
    2007, the original issue date.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Our common stock is listed on the New York Stock Exchange under
    the symbol &#147;WM.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Use of Proceeds</TD>
    <TD></TD>
    <TD valign="bottom">
    We expect to receive net proceeds from this offering of
    approximately $&#160;&#160;&#160;&#160;&#160;&#160;billion,
    after expenses and underwriting discounts and commissions. We
    intend initially to contribute up to $1.0&#160;billion of the
    net proceeds from this offering to Washington Mutual Bank, our
    principal </TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

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    <BR>
    S-7
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    bank subsidiary, as additional capital, and retain the remaining
    net proceeds at our holding company for general corporate
    purposes. See &#147;Use of Proceeds.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Certain U.S.&#160;Federal Income Tax Considerations</DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    For a discussion of certain U.S. federal income tax
    considerations of purchasing, owning and disposing of the
    Series&#160;R Preferred Stock and any common stock received upon
    its conversion, see &#147;Certain U.S.&#160;Federal Income Tax
    Considerations.&#148; Dividends paid to non-corporate U.S.
    holders in taxable years beginning before January&#160;1, 2011
    generally should be taxable at a maximum rate of 15%, subject to
    certain conditions and limitations. Dividends paid to corporate
    U.S. holders generally should be eligible for the dividends
    received deduction, subject to certain conditions and
    limitations. Dividends paid to non-U.S. holders generally should
    be subject to withholding of U.S. federal income tax at a 30%
    rate or such lower rate as may be specified by an applicable
    income tax treaty.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Risk Factors</TD>
    <TD></TD>
    <TD valign="bottom">
    For a discussion of risks and uncertainties involved with an
    investment in our Series&#160;R Preferred Stock and our common
    stock, see &#147;Risk Factors&#148; beginning on
    <FONT style="white-space: nowrap">page&#160;S-11</FONT>
    of this prospectus supplement.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise stated, all information contained in this
    prospectus supplement assumes that the underwriters do not
    exercise their option to purchase 375,000 additional shares of
    the Series&#160;R Preferred Stock.
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-8
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    Financial and Other Information</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents our summary consolidated condensed
    financial and other information as of and for the nine months
    ended September&#160;30, 2007 and 2006 and as of and for the
    years ended December&#160;31, 2006, 2005, 2004, 2003 and 2002.
    We derived the summary consolidated condensed financial
    information as of and for the years ended December&#160;31,
    2006, 2005 and 2004 from our audited financial statements which
    are incorporated by reference in this prospectus supplement. We
    derived the summary consolidated condensed financial information
    as of and for the years ended December&#160;31, 2003 and 2002
    from our audited financial statements which are not incorporated
    by reference in this prospectus supplement. We derived the
    summary consolidated condensed financial information as of and
    for the nine months ended September&#160;30, 2007 and 2006 from
    our unaudited financial statements which are not incorporated by
    reference in this prospectus supplement. The unaudited financial
    statements have been prepared on substantially the same basis as
    the audited financial statements and include all adjustments
    that we consider necessary for a fair presentation of our
    financial position and results of operations for all periods
    presented.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The summary consolidated condensed results are not indicative of
    the expected future operating results. The results for any
    interim period are not necessarily indicative of the results
    that may be expected for a full fiscal year. The following
    summary historical financial and other information should be
    read together with &#147;Management&#146;s Discussion and
    Analysis of Financial Condition and Results of Operations&#148;
    in our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2006 and our Quarterly
    Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended September&#160;30, 2007 and the historical
    financial statements and notes thereto incorporated by reference
    in this prospectus supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="37%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Nine Months<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>September&#160;30,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2002</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" nowrap align="center" valign="bottom">
    <B>($ in millions, except ratios and percentages)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Income statement data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,131
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,123
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,121
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,218
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,411
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,865
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,288
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Provision for loan and lease losses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,574
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    472
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    816
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    316
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    209
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    404
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Non-interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,678
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,786
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,377
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,097
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,061
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,437
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,174
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Non-interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,434
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,551
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,807
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,620
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,332
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,267
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,081
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income from discontinued operations, net of taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    444
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    434
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
     1,801
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,501
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
     3,558
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,432
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
     2,878
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
     3,880
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,861
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Balance sheet data (at period end):</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Securities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,406
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29,017
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24,978
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24,659
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19,219
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36,707
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    43,905
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Loans held for sale
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,586
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,720
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,970
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,582
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42,743
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,837
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,623
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Loans held in portfolio
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    237,132
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    241,765
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    224,960
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    229,632
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    207,071
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    175,150
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    143,028
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mortgage servicing rights
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,794
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,288
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,193
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,041
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,906
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,354
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,341
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Goodwill
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,062
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,368
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,050
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,298
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,196
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,196
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,213
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    330,110
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    348,877
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    346,288
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    343,573
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    307,581
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    275,178
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    268,225
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    194,280
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    210,882
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    213,956
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    193,167
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    173,658
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    153,181
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    155,516
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Securities sold under agreements to repurchase
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,732
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,665
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,953
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,532
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,944
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,333
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,717
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Advances from Federal Home Loan Banks
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52,530
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,247
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,297
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68,771
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,074
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,330
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,265
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other borrowings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,887
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,883
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,852
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,777
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,498
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,483
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,712
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    306,169
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    322,419
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    319,319
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    316,294
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    286,692
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    255,773
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    248,501
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stockholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,941
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,458
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,969
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,279
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,889
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,405
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,724
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-9
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="70%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Nine Months<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>September&#160;30,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
    <B>($ in millions, except ratios and percentages)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Other financial data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><I>Profitability</I></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Return on average
    assets<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.74
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.96
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.02
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.05
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.01
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Return on average common
    equity<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.96
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.68
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.91
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net interest margin
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.94
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Efficiency
    ratio<SUP style="font-size: 85%; vertical-align: text-top">(2)(3)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59.53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    63.91
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><I>Asset Quality</I></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Nonperforming assets/total
    assets<SUP style="font-size: 85%; vertical-align: text-top">(4)(5)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.65
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.69
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.80
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.57
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.58
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Allowance as a percentage of total loans held in
    portfolio<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.80
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.64
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.72
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.74
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.63
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net charge-offs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    876
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    375
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    244
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    135
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><I>Capital Adequacy (at period end)</I></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Capital Ratios for Washington Mutual, Inc.:</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stockholders&#146; equity/total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.25
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.58
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.79
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.94
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.79
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tangible equity to total tangible
    assets<SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.86
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.62
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.94
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total risk-based capital to total risk-weighted
    assets<SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.67
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.77
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.80
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tier&#160;1 capital to average total
    assets<SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.86
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.83
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.41
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Capital Ratios for Washington Mutual Bank (well-capitalized
    minimum):</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tier&#160;1 capital to adjusted total assets (5.00)%
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Adjusted tier&#160;1 capital to total risk-weighted assets
    (6.00)%
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.49
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.96
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total risk-based capital to total risk-weighted assets (10.00)%
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD></TD>
    <TD valign="bottom">
    Includes income from continuing and discontinued operations.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD></TD>
    <TD valign="bottom">
    Based on continuing operations.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></TD>
    <TD></TD>
    <TD valign="bottom">
    The efficiency ratio is defined as noninterest expense divided
    by total revenue (net interest income and noninterest income).</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></TD>
    <TD></TD>
    <TD valign="bottom">
    At period end.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></TD>
    <TD></TD>
    <TD valign="bottom">
    Excludes non-accrual loans held for sale.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
    <TD></TD>
    <TD valign="bottom">
    Excludes unrealized net gain/loss on available-for-sale
    securities and derivatives, goodwill and intangible assets, but
    includes mortgage servicing rights (<B>&#147;MSR&#148;</B>) and
    transition adjustments related to the adoption of Financial
    Accounting Standards Board Statement No.&#160;158,
    &#147;Employer&#146;s Accounting for Defined Benefit Pension and
    Other Postretirement Plans,&#148; as of December&#160;31, 2006.
    These adjustments are applied to both the numerator and the
    denominator. Minority interests of $1.96&#160;billion for
    September&#160;30, 2006, $2.94&#160;billion for
    September&#160;30, 2007 and $2.45&#160;billion for
    December&#160;31, 2006 are included in the numerator.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
    <TD></TD>
    <TD valign="bottom">
    Estimates of what the total risk-based capital and Tier&#160;1
    capital ratios would be if Washington Mutual, Inc. were a bank
    holding company subject to the regulatory capital guidelines of
    the Board of Governors of the Federal Reserve System (the
    <B>&#147;Federal Reserve Board&#148;</B>). The amounts and
    components of total risk-based capital and Tier&#160;1 capital
    included in these estimates are based on our judgment of what
    may be included as such capital under the Federal Reserve Board
    regulatory capital guidelines and are not reported to or
    approved by the Federal Reserve Board.</TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-10
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "RISK FACTORS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='103'></A><B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>An investment in the Series&#160;R Preferred Stock or our
    common stock is subject to certain risks. You should carefully
    consider the risks described below, as well as the other
    information included or incorporated by reference into this
    prospectus supplement and the accompanying prospectus, including
    our financial statements and the notes thereto, before making an
    investment decision.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Relating to Our Business</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If
    current market conditions persist, our ability to raise
    liquidity including through the sale of mortgage loans in the
    secondary market or otherwise may be adversely
    affected.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our liquidity may be affected by an inability to access the
    capital markets or by unforeseen demands on cash. This situation
    may arise due to circumstances beyond our control, such as a
    general market disruption. During the first nine months of this
    year and continuing into the fourth quarter of 2007, there has
    been significant volatility in the subprime secondary mortgage
    market which has spread into markets for all other nonconforming
    residential mortgages. Since the latter part of July 2007,
    liquidity in the secondary market for nonconforming residential
    mortgage loans and securities backed by such loans has
    diminished significantly. While these market conditions persist,
    our ability to raise liquidity through the sale of mortgage
    loans in the secondary market will be adversely affected. As a
    result of these conditions in the secondary mortgage markets, we
    have in recent periods retained for our own account
    substantially all of the nonconforming mortgage loans we
    originate or purchase. We cannot predict with any degree of
    certainty how long these market conditions may continue or
    whether liquidity for nonconforming residential mortgages will
    improve, although it is our current expectation that the
    existing turmoil in the secondary mortgage markets will continue
    to significantly and adversely affect loan origination volumes
    and gain on sale results during the remainder of 2007 and into
    2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, in response to market conditions and events
    affecting us, several rating agencies have recently downgraded
    or assigned a negative outlook to our credit ratings. We cannot
    predict whether the rating agencies will take further negative
    actions with respect to our credit ratings. Such actions could
    have the effect of increasing our borrowing costs, making it
    more difficult for our banking subsidiaries to attract
    institutional or wholesale deposits or otherwise making
    financing more difficult. This offering is intended to enhance
    our ability to meet our liquidity needs. However, we may not be
    able to raise the amount of capital we intend to raise in this
    offering, and, even if we do so, we cannot assure you that the
    proceeds of this offering will be adequate to meet our liquidity
    needs.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Changes
    in interest rates may adversely affect our business, including
    net interest income and earnings.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Like other financial institutions, we raise funds for our
    business by, among other things, borrowing money in the capital
    markets and from the Federal Home Loan Bank system and accepting
    deposits from depositors, which we use to make loans to
    customers and invest in debt securities and other
    interest-earning assets. We earn interest on these loans and
    assets and pay interest on the money we borrow and on the
    deposits we accept from depositors. Changes in interest rates,
    including changes in the relationship between short-term rates
    and long-term rates, may have negative effects on our net
    interest income and therefore our earnings. If the rate of
    interest we pay on our borrowings and deposits increases more
    than the rate of interest we earn on our assets, our net
    interest income, and therefore our earnings, would likely be
    adversely affected. Our earnings could also be negatively
    affected if the interest rates we charge on our earning assets
    fall more quickly than the rates we pay on our borrowings and
    deposits. Changes in interest rates and responses by our
    competitors to those changes may affect the rate of customer
    pre-payments for mortgages and other term loans and may affect
    the balances customers carry on their credit cards. These
    changes can reduce the overall yield on our assets. Changes in
    interest rates and responses by our competitors to these changes
    may also affect customer decisions to maintain balances in the
    deposit accounts they have with us. These changes may require us
    to replace withdrawn balances with higher-cost alternative
    sources of funding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, changes in interest rates may affect our mortgage
    banking business in complex and significant ways. For example,
    changes in interest rates can affect gain from mortgage loans
    and loan servicing fees,
</DIV>

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    <BR>
    S-11
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    which are the principal components of revenue from sales and
    servicing of home mortgage loans. When mortgage rates decline,
    the fair value of MSR asset generally declines and gain from
    mortgage loans tends to increase, to the extent we are able to
    sell or securitize mortgage loans in the secondary market. When
    mortgage rates rise, we generally expect loan volumes and
    payoffs in our servicing portfolio to decrease. As a result, the
    fair value of our MSR asset generally increases and gain from
    mortgage loans decreases. In recent periods, however, declines
    in general interest rates have not resulted in an increase in
    prepayment rates, due in part to the reduced liquidity in the
    mortgage markets making refinancing by borrowers more difficult.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As part of our overall risk management activities, we seek to
    mitigate changes in the fair value of our MSR asset by
    purchasing and selling financial instruments, entering into
    interest rate contracts and forward commitments to purchase or
    sell mortgage-backed securities and adjusting the mix and amount
    of such financial instruments or contracts to take into account
    the effects of different interest rate environments. The MSR
    asset and the mix of financial instruments used to mitigate
    changes in its fair value are not perfectly correlated. This
    imperfect correlation creates the potential for excess MSR risk
    management gains or losses during any period. Management must
    exercise judgment in selecting the amount, type and mix of
    financial instruments and contracts to mitigate changes in the
    fair value of our MSR. We cannot assure you that the amount,
    type and mix of financial instruments and contracts we select
    will fully offset significant changes in the fair value of the
    MSR, and our actions could negatively impact our earnings. Our
    reliance on these risk management instruments may be impacted by
    periods of illiquidity in the secondary markets, which could
    negatively impact the performance of the MSR risk management
    instruments. For further discussion of how interest rate risk,
    basis risk, volatility risk and prepayment risk are managed, see
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations&#160;&#151; Market Risk
    Management&#148; in our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2006.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We use
    estimates in determining the fair value of certain of our
    assets, which estimates may prove to be incorrect and result in
    significant changes in valuation.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A portion of our assets are carried on our balance sheet at fair
    value, including: our MSR, trading assets including certain
    retained interests from securitization activities,
    available-for-sale securities and derivatives. Generally, for
    assets that are reported at fair value, we use quoted market
    prices or internal valuation models that utilize observable
    market data inputs to estimate their fair value. In certain
    cases, observable market prices and data may not be readily
    available or their availability may be diminished due to market
    conditions. We use financial models to value certain of these
    assets. These models are complex and use asset specific
    collateral data and market inputs for interest rates. We cannot
    assure you that we can properly manage the complexity of our
    models and valuations to ensure, among other things, that the
    models are properly calibrated, the assumptions are reasonable,
    the mathematical relationships used in the model are predictive
    and remain so over time, and the data and structure of the
    assets and hedges being modeled are properly input. Such
    assumptions are complex as we must make judgments about the
    effect of matters that are inherently uncertain. Different
    assumptions could result in significant changes in valuation,
    which in turn could result in significant changes in the dollar
    amount of assets we report on our balance sheet. We may in the
    future also elect to carry a portion of our liabilities at fair
    value, in which case the same risks as described above would
    also apply to our determinations of the fair values of such
    liabilities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Economic
    conditions that negatively affect housing prices and the job
    market have resulted, and may continue to result, in a
    deterioration in credit quality of our loan portfolios, and such
    deterioration in credit quality has had, and could continue to
    have, a negative impact on our business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Washington Mutual is one of the nation&#146;s largest lenders,
    and a deterioration in the credit quality of our loan portfolios
    can have a negative impact on our earnings resulting from
    increased provisioning for loan and lease losses and from
    increased nonaccrual loans, which could cause a decrease in our
    interest-earning assets. Credit risk is the risk of loss due to
    adverse changes in a borrower&#146;s ability to meet its
    financial obligations on agreed upon terms. The overall credit
    quality of our loan portfolios is impacted by the strength of
    the U.S.&#160;economy and local economies in which we conduct
    our lending operations as well as trends in residential housing
    prices. We continually monitor changes in the economy,
    particularly unemployment rates and housing
</DIV>

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    <BR>
    S-12
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    prices, because these factors can impact the ability of our
    borrowers to repay their loans. Economic trends that negatively
    affect housing prices and the job market could result in, among
    other things, a deterioration in the credit quality of our loan
    portfolios. As previously announced, we believe that the
    U.S.&#160;mortgage market is undergoing a dramatic shift, and we
    expect that national origination volumes may decline by as much
    as 40&#160;percent in 2008 compared to 2007. In addition, during
    the course of 2007 deteriorating trends in housing prices and
    economic conditions in many parts of the United States have
    resulted in significant increases in loan delinquencies and
    losses in our mortgage portfolios, which we expect to continue
    into 2008. We cannot assure you that housing prices, mortgage
    availability and economic conditions will not experience
    significant further deterioration in the future with further
    adverse effects on our operating results, business and financial
    condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We make various assumptions and judgments about the
    collectibility of our loan portfolios. In determining the amount
    of the allowance for loan losses, we review our loans and our
    loss and delinquency experience, and we evaluate present and
    foreseeable economic conditions and trends. If our assumptions
    are incorrect, our allowance for loan losses may be insufficient
    to cover probable incurred losses in our loan portfolios,
    resulting in additions to our allowance which would reduce our
    earnings in the period in which the additional provisions are
    taken. In addition, the OTS periodically reviews our allowance
    for loan losses and may require us to increase our provision for
    loan losses or recognize further loan charge-offs. As explained
    under &#147;Summary&#160;&#151; Recent Developments&#148; in
    this prospectus supplement, we currently expect to increase the
    amount of our provision for loan losses in the fourth quarter of
    2007 and in 2008. These amounts are based on, among other
    factors, our assumptions and forecasts for delinquency and
    default rates on our loan portfolios, and the amount of loans
    charged off, in those periods. These assumptions and forecasts
    may prove to be incorrect. If the actual delinquency and default
    rates and the actual amount of loans charged off in future
    periods prove to be higher than our current assumptions and
    forecasts, we may have to increase further our provision for
    loan losses. Any increase in our provision for loan losses, our
    allowance for loan losses or loan charge-offs could have a
    material adverse effect on our results of operations and
    financial condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We offer credit cards to our customers and retain certain credit
    card balances in our portfolio and securitize and sell other
    credit card balances. Credit cards typically have smaller
    balances, shorter lifecycles and experience higher delinquency
    and charge-off rates than real estate secured loans. Account
    management efforts, seasoning and economic conditions, including
    unemployment rates and housing prices, affect the overall credit
    quality of our credit card portfolio.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Until recently, we originated and purchased from third-party
    lenders loans to higher risk borrowers through our subprime
    mortgage channel. Borrowers in the subprime mortgage channel
    tend to have greater vulnerability to changes in economic and
    housing market factors, such as increases in unemployment, a
    slowdown in housing price appreciation or declines in housing
    prices, than do other borrowers. The performance of this loan
    portfolio in recent quarters has been, and in the future will
    likely continue to be, negatively impacted by a variety of
    factors, including changes in the economic factors noted above,
    which negatively impact borrowers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Certain
    of our loan products have features that may result in increased
    credit risk.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have significant portfolios of home equity loans, which are
    secured by a first or second lien on the borrower&#146;s
    property. When we hold a second lien on a property which is
    subordinate to a first lien mortgage held by another lender,
    both the probability of default and severity of loss risk is
    generally higher than when we hold both the first and second
    lien positions. Home equity loans and lines of credit with
    combined loan-to-value ratios of greater than 80&#160;percent
    also expose us to greater credit risk than home loans with
    loan-to-value ratios of 80&#160;percent or less at origination.
    This greater credit risk arises because, in general, both
    default risk and the severity of risk is higher when borrowers
    have less equity in their homes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We originate Option ARM loans for sale and securitization and
    for our home loan portfolio. Borrowers with Option ARM loans
    have the option of making minimum payments based on the rate
    charged during the introductory period, which is generally lower
    than the fully-indexed rate. If, as permitted by the loan terms,
    borrowers continue to make minimum payments after the
    introductory period ends, those borrowers may
</DIV>

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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    experience negative amortization as unpaid interest is deferred
    and added to the principal amount of the loan. The risk that
    Option ARM borrowers will be unable to make increased loan
    payments as a result of negative amortization or as a result of
    the interest rate on the loan adjusting upward to the
    fully-indexed rate, both of which can occur simultaneously in
    certain situations, are the principal risks associated with the
    Option ARM product.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We originate interest-only loans that we either securitize or
    hold in our portfolio. Borrowers with interest-only loans are
    initially required to make payments that are sufficient to cover
    accrued interest. After a predetermined period (generally five
    years), the payments are reset to allow the loan to fully
    amortize over its remaining life. Borrowers with interest-only
    loans are particularly affected by unemployment, declining
    housing prices and reduced home price appreciation. Such
    economic trends could cause the credit performance of
    interest-only loans to deteriorate with a negative impact on our
    results.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For further discussion of credit risk, see
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations&#160;&#151; Credit Risk
    Management&#148; in our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2006.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We are
    subject to risks related to credit card operations, and this may
    adversely affect our credit card portfolio and our ability to
    continue growing the credit card business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Credit card lending brings with it certain risks and
    uncertainties. These include the composition and risk profile of
    our credit card portfolio and our ability to continue growing
    the credit card business. The success of the credit card
    business also depends, in part, on the success of our product
    development, product rollout efforts and marketing initiatives,
    including the rollout of credit card products to our existing
    retail and mortgage loan customers, and our ability to continue
    to successfully target creditworthy customers. Recent disputes
    involving the Visa and MasterCard networks, including their
    membership standards and pricing structures, could also result
    in changes that would be adverse to the credit card business.
    For example, in the third quarter of 2007, Visa Inc., Visa USA
    and Visa International and five of its member banks, including
    us, reached a settlement agreement with American Express with
    respect to an antitrust lawsuit against us. In connection with
    the settlement, we recognized a $38&#160;million charge to
    noninterest expense in our third quarter 2007 results of
    operations, and recorded a corresponding liability at
    September&#160;30, 2007 to establish a litigation settlement
    reserve, representing our share of the settlement liability.
    Certain member banks have commenced informal discussions with
    the Office of the Chief Accountant of the SEC regarding the
    appropriate accounting treatment of a related judgment sharing
    agreement among the member banks and Visa. At this time we
    cannot predict the outcome of these discussions. Other disputes
    involving Visa and its members remain unresolved. See
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations&#160;&#151; Credit Card
    Industry Litigation&#148; in our Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended September&#160;30, 2007. Changes in
    interest rates can also negatively affect the credit card
    business, including costs associated with funding the credit
    card portfolio, as described above under &#147;Changes in
    interest rates may adversely affect our business, including net
    interest income and earnings.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We are
    subject to operational risk, which may result in incurring
    financial and reputational losses.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are exposed to many types of operational risk, including the
    risk of fraud by employees or outsiders, the risk of operational
    errors, including clerical or record-keeping errors or those
    resulting from faulty or disabled computer or telecommunications
    systems. Given our high volume of transactions, certain errors
    may be repeated or compounded before they are discovered and
    successfully corrected. Our dependence upon automated systems to
    record and process transactions may further increase the risk
    that technical system flaws or employee tampering with or
    manipulation of those systems will result in losses that are
    difficult to detect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may be subject to disruptions of our systems, arising from
    events that are wholly or partially beyond our control
    (including, for example, computer viruses or electrical or
    telecommunications outages), which may give rise to losses in
    service to customers and to financial loss or liability. We are
    further exposed to the risk that our external vendors may be
    unable to fulfill their contractual obligations (or will be
    subject to the same risk of fraud or operational errors by their
    respective employees as we are) and to the risk that our (or our
</DIV>

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    <BR>
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    vendors&#146;) business continuity and data security systems
    prove to be inadequate. We rely on offshoring of services to
    vendors in foreign countries for certain functions and this
    creates the risk of incurring losses arising from unfavorable
    political, economic and legal developments in those countries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also face the risk that the design of our controls and
    procedures may prove to be inadequate or are circumvented,
    thereby causing delays in detection of errors or inaccuracies in
    data and information. Although we maintain a system of controls
    designed to keep operational risk at appropriate levels, it is
    possible that any lapses in the effective operations of our
    controls and procedures could materially affect our earnings or
    harm our reputation. In an organization as large and complex as
    Washington Mutual, lapses or deficiencies in internal control
    over financial reporting could be material to us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, we are heavily dependent on the strength and
    capability of our technology systems which we use both to
    interface with our customers and to manage our internal
    financial and other systems. Our ability to run our business in
    compliance with applicable laws and regulations is dependent on
    these infrastructures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We depend on the expertise of key personnel and face competition
    for talent. Our success depends, in large part, on our ability
    to hire and retain key people. If we are unable to retain these
    people and to attract talented people, or if key people fail to
    perform properly, our business may suffer. For further
    discussion of operational risks, see &#147;Management&#146;s
    Discussion and Analysis of Financial Condition and Results of
    Operations&#160;&#151;&#160;Operational Risk Management&#148; in
    our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2006.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Changes
    in the regulation of financial services companies, housing
    government-sponsored enterprises and credit card lenders could
    adversely affect us.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The banking and financial services industries, in general, are
    heavily regulated. Proposals for legislation further regulating
    the banking and financial services industry are continually
    being introduced in the United&#160;States Congress. The
    agencies regulating the financial services industry also
    periodically adopt changes to their regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Proposals that are now receiving a great deal of attention and
    could significantly impact our business include changes to
    capital requirements, consumer protection initiatives relating
    to bank overdraft practices, security of customer information,
    marketing practices, nontraditional mortgage loan products
    including Option ARM loans and interest-only products, credit
    card lending practices, fees charged to merchants for credit and
    debit card transactions and predatory lending. For instance, in
    June 2007, under the Home Ownership Equity Protection Act, the
    Federal Reserve Board held a public hearing in order to gather
    information on how it might use its rulemaking authority to curb
    abusive lending practices in the home mortgage market, including
    the subprime sector. There have also been a number of
    legislative hearings and proposals for increased regulation of
    residential mortgage lending. For example, the U.S.&#160;Senate
    Banking Committee has issued a Statement of Principles as
    guidance for companies servicing mortgages of subprime
    borrowers. The U.S.&#160;House of Representatives Financial
    Services Committee has recently held hearings on home mortgage
    lending, including predatory lending practices, and may propose
    new legislation governing the mortgage markets. On
    December&#160;5, 2007, President Bush proposed a plan for a five
    year moratorium on interest rate resets for certain subprime
    mortgages held by qualifying borrowers. Other public officials
    and private groups have proposed similar plans. In addition,
    there continues to be a focus on reform of the housing
    government-sponsored enterprises including the federal home loan
    bank system. We are unable to predict whether any of these
    proposals will be implemented or in what form and what effect
    any such proposal could have on our business or operating
    results.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is possible that one or more legislative proposals may be
    adopted or regulatory changes may be made that would have an
    adverse effect on our business. For further discussion of the
    regulation of financial services, see &#147;Regulation and
    Supervision&#148; in our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2006.
</DIV>

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    <BR>
    S-15
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<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We are
    subject to significant competition from banking and nonbanking
    companies.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We operate in a highly competitive environment and expect
    competition to continue as financial services companies combine
    to produce larger companies that are able to offer a wide array
    of financial products and services at competitive prices with
    attractive terms. In addition, customer convenience and service
    capabilities, such as product lines offered and the
    accessibility of services, are significant competitive factors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our most direct competition for loans comes from commercial
    banks, other savings institutions, investment banking firms,
    national mortgage companies and other credit card lenders. Our
    most direct competition for deposits comes from commercial
    banks, other savings institutions and credit unions doing
    business in our markets. As with all banking organizations, we
    also experience competition from nonbanking sources, including
    mutual funds, corporate and government debt securities and other
    investment alternatives offered within and outside of our
    primary markets. In addition, technological advances and the
    growth of
    <FONT style="white-space: nowrap">e-commerce</FONT>
    have made it possible for non-depository institutions to offer
    products and services that were traditionally offered only by
    banks. Many of these competitors have fewer regulatory
    constraints and some have lower cost structures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, we compete on the basis of transaction execution,
    innovation and technology. Our industry is subject to rapid and
    significant technological changes. In order to compete in our
    industry, we must continue to invest in technologies across all
    of our businesses, including transaction processing, data
    management, customer interactions and communications and risk
    management and compliance systems. We expect that new
    technologies will continue to emerge, and these new services and
    technologies could be superior to or render our technologies
    obsolete. Our future success will depend in part on our ability
    to continue to develop and adapt to technological changes and
    evolving industry standards. If we are not able to invest
    successfully in and compete at the leading edge of technological
    advances across all of our businesses, our revenues and
    profitability could suffer.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    business and earnings are highly sensitive to general business,
    economic and market conditions, and continued deterioration in
    these conditions may adversely affect our business and
    earnings.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business and earnings are highly sensitive to general
    business and economic conditions. These conditions include the
    slope of the yield curve, inflation, the money supply, the value
    of the U.S.&#160;dollar as compared to foreign currencies,
    fluctuations in both debt and equity capital markets, and the
    strength of the U.S.&#160;economy and the local economies in
    which we conduct business. Changes in these conditions may
    adversely affect our business and earnings. For example, when
    short-term interest rates rise, there is a lag period until
    adjustable-rate mortgages reprice. As a result, we may
    experience compression of our net interest margin with a
    commensurate adverse effect on earnings. Likewise, as has
    occurred in recent quarters, our earnings could also be
    adversely affected when a flat or inverted yield curve develops,
    as this may inhibit our ability to grow our adjustable-rate
    mortgage portfolio and may also cause margin compression. A
    prolonged economic downturn could increase the number of
    customers who become delinquent or default on their loans, or a
    rising interest rate environment could increase the negative
    amortization of Option ARM loans, which may eventually result in
    increased delinquencies and defaults. Rising interest rates
    could also decrease customer demand for loans. During 2007, the
    housing market in the United States (including California and
    Florida, where the properties securing approximately 46.4% and
    9.5%, respectively, of our outstanding mortgage loans by
    principal balance are located) began to experience significant
    adverse trends, including accelerating price depreciation in
    some markets and rising delinquency and default rates. This has
    resulted in higher levels of charge-offs and provisions for loan
    and lease losses, which have adversely affected our earnings. In
    addition, during the second half of 2007, disruptions in the
    capital markets began to substantially limit the ability of
    mortgage originators, including ourselves, to sell mortgage
    loans to the capital markets through whole loan sales or any
    securitization format. We cannot predict how long these adverse
    conditions will continue or whether they will worsen materially.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business and earnings are significantly affected by the
    fiscal and monetary policies of the federal government and its
    agencies. We are particularly affected by the policies of the
    Federal Reserve Board, which regulates the supply of money and
    credit in the United&#160;States. Federal Reserve policies
    directly and indirectly
</DIV>

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    <BR>
    S-16
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    influence the yield on our interest-earning assets and the cost
    of our interest-bearing liabilities. Changes in those policies
    are beyond our control and are difficult to predict.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    face damage to our professional reputation and business as a
    result of allegations and negative public opinion as well as
    pending and threatened litigation.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Reputational risk, meaning the risk to earnings and capital from
    negative public opinion, is inherent in our business. Negative
    public opinion can result from the actual or perceived manner in
    which we conduct our business activities, which include our
    sales and trading practices, our loan origination and servicing
    activities, our retail banking and credit card operations, our
    management of actual or potential conflicts of interest and
    ethical issues and our protection of confidential customer
    information. Negative public opinion can adversely affect our
    ability to keep and attract customers. We cannot assure you that
    we will be successful in avoiding damage to our business from
    reputational risk.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also face risks arising from any supervisory actions taken by
    our regulators. Effective October&#160;17, 2007, Washington
    Mutual Bank consented to the issuance of an OTS cease and desist
    order requiring Washington Mutual Bank to comply with the Bank
    Secrecy Act (<B>&#147;BSA&#148;</B>) and to strengthen and
    improve its programs and controls for compliance with the BSA
    and related anti-money laundering and other laws and
    regulations. Although no fines or restrictions on Washington
    Mutual Bank&#146;s activities have been imposed by the OTS,
    failure by us to comply with the terms of this order or other
    applicable laws and regulations could have a material adverse
    effect on our business, financial condition or operating results.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The volume of claims and amount of damages and penalties claimed
    in litigation and regulatory proceedings against financial
    institutions remain high. Substantial legal liability or
    significant regulatory action against us and our subsidiaries
    could have material adverse financial effects or cause
    significant reputational harm to us, which in turn could
    seriously harm our business prospects. On November&#160;1, 2007,
    the New York State Attorney General filed a lawsuit against
    First American Corporation and one of its subsidiaries that
    acted as an appraisal management company for us alleging, among
    other things, that we conspired with First American to falsely
    inflate the valuations done by First American&#146;s appraisers
    in connection with loans originated by us during the past
    several years. We were not named in this complaint. Thereafter,
    three securities class actions were filed against us and certain
    of our officers alleging that we violated securities laws by
    allegedly making false and misleading statements and omissions
    concerning, among other things, the allegations in the New York
    State Attorney General&#146;s complaint as well as various
    aspects of our performance and accounting in light of that
    alleged conspiracy and of changing conditions in the home
    lending and credit markets. In addition, three shareholder
    derivative claims have been filed against our board of directors
    and certain of our officers, as well as three actions asserting
    claims under the U.S.&#160;Employee Retirement Income Security
    Act of 1974, as amended, which we refer to as ERISA, on behalf
    of putative classes of participants in or beneficiaries of our
    401(k) benefit plan have been filed. These derivative and ERISA
    actions are based in large part on the allegations in the New
    York Attorney General&#146;s complaint and the securities class
    actions. For further discussion of pending legal actions that
    may affect us, see &#147;Legal Proceedings&#148; in our
    Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended September&#160;30, 2007.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Relating to the Offering</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    ability to pay dividends on the Series&#160;R Preferred Stock
    will depend upon the operations of our
    subsidiaries.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a holding company and our principal source of cash is
    dividends and other distributions from our banking and
    non-banking operating subsidiaries. If we are unable to receive
    dividends from our operating subsidiaries, we may not be able to
    pay dividends on the Series&#160;R Preferred Stock. Federal laws
    and regulations limit the amount of dividends and other
    distributions that our banking subsidiaries, Washington Mutual
    Bank and Washington Mutual Bank fsb, are permitted to pay or
    make, and, although Washington Mutual Bank fsb may currently pay
    dividends to Washington Mutual Bank without prior approval from
    the OTS, such approval is currently required in connection with
    the payment of a dividend or the making of a distribution by
    Washington Mutual Bank to us. Each of Washington Mutual Bank and
    Washington Mutual
</DIV>

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    <BR>
    S-17
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Bank fsb has a policy to remain well capitalized in order to
    meet capital adequacy requirements under federal law and,
    accordingly, generally would not pay dividends to the extent
    payment of the dividend would result in it not being
    well-capitalized. See &#147;Business&#160;&#151;&#160;Regulation
    and Supervision&#148; in our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2006.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We are
    subject to restrictions on paying cash dividends.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;7, 2006, Washington Mutual Preferred Funding
    (Cayman) I Ltd. issued $750,000,000 of 7.25% Perpetual
    Non-cumulative Preferred Securities and Washington Mutual
    Preferred Funding Trust&#160;I issued $1,250,000,000 of
    Fixed-to-Floating Rate Perpetual Non-cumulative
    Trust&#160;Securities. On December&#160;6, 2006, Washington
    Mutual Preferred Funding Trust&#160;II issued $500,000,000 of
    Fixed-to-Floating Rate Perpetual Non-cumulative
    Trust&#160;Securities. On May&#160;21, 2007, Washington Mutual
    Preferred Funding Trust&#160;III issued $500,000,000 of
    Fixed-to-Floating Rate Perpetual Non-cumulative
    Trust&#160;Securities. On October&#160;18, 2007, Washington
    Mutual Preferred Funding Trust&#160;IV issued $1,000,000,000 of
    Fixed-to-Floating Rate Perpetual Non-cumulative
    Trust&#160;Securities. These securities are collectively
    referred to herein as <B>&#147;Preferred and
    Trust&#160;Securities.&#148;</B> Payments to investors in
    respect of the Preferred and Trust&#160;Securities are funded by
    distributions on certain series of securities issued by
    Washington Mutual Preferred Funding LLC, one of our indirect
    subsidiaries, with similar terms to the relevant series of
    Preferred and Trust&#160;Securities, which we refer to as the
    <B>&#147;LLC Preferred Securities.&#148;</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If for any dividend period full dividends are not paid in
    respect of the LLC Preferred Securities or the Preferred and
    Trust&#160;Securities, then we generally will be prohibited from
    declaring or paying any dividends or other distributions, or
    redeeming, purchasing or acquiring, any of our capital
    securities, including the Series&#160;R Preferred Stock, during
    the next succeeding dividend period applicable to any of the LLC
    Preferred Securities or the Preferred and Trust&#160;Securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, any other financing agreements that we enter into
    in the future may limit our ability to pay cash dividends on our
    capital stock, including the Series&#160;R Preferred Stock. In
    the event that any other financing agreements in the future
    restrict our ability to pay dividends in cash on the
    Series&#160;R Preferred Stock, we may be unable to pay dividends
    in cash on the Series&#160;R Preferred Stock unless we can
    refinance amounts outstanding under those agreements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Further, Washington law provides that we may pay dividends on
    the Series&#160;R Preferred Stock only if after payment of such
    dividends we would be able to pay our liabilities as they become
    due in the usual course of business and only to the extent by
    which our total assets after payment of such dividends exceed
    the sum of our total liabilities plus the amount that, if we
    were to be dissolved at the time of the distribution, would be
    needed to satisfy preferential rights upon dissolution of
    stockholders whose preferential rights are superior to those
    receiving the distributions. Lastly, even if we are permitted
    under our contractual obligations and Washington law to pay cash
    dividends on the Series&#160;R Preferred Stock, we may not have
    sufficient cash to pay dividends in cash on the Series&#160;R
    Preferred Stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Dividends
    on the Series&#160;R Preferred Stock are
    non-cumulative.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dividends on the Series&#160;R Preferred Stock are
    non-cumulative. Consequently, if our board of directors does not
    authorize and declare a dividend for any dividend period,
    holders of the Series&#160;R Preferred Stock will not be
    entitled to receive a dividend for such period, and such
    undeclared dividend will not accrue and be payable. We will have
    no obligation to pay dividends for a dividend period after the
    dividend payment date for such period if our board of directors
    has not declared such dividend before the related dividend
    payment date, whether or not dividends are declared for any
    subsequent dividend period with respect to the Series&#160;R
    Preferred Stock. Our board of directors may determine that it
    would be in our best interest to pay less than the full amount
    of the stated dividends on the Series&#160;R Preferred Stock or
    no dividend for any quarter even if funds are available. Factors
    that would be considered by our board of directors in making
    this determination are our financial condition and capital
    needs, the impact of current and pending legislation and
    regulations, economic conditions, tax considerations, and such
    other factors as our board of directors may deem relevant.
</DIV>

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    <BR>
    S-18
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<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    market price of the Series&#160;R Preferred Stock will be
    directly affected by the market price of our common stock, which
    may be volatile.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the extent that a secondary market for the Series&#160;R
    Preferred Stock develops, we believe that the market price of
    the Series&#160;R Preferred Stock will be significantly affected
    by the market price of our common stock. We cannot predict how
    the shares of our common stock will trade in the future. This
    may result in greater volatility in the market price of the
    Series&#160;R Preferred Stock than would be expected for
    nonconvertible preferred stock. From January&#160;1, 2005 to
    November&#160;30, 2007, the reported high and low sales prices
    for our common stock ranged from a low of $16.75 per share to a
    high of $47.01 per share. The market price of our common stock
    will likely continue to fluctuate in response to a number of
    factors including the following, most of which are beyond our
    control:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    actual or anticipated quarterly fluctuations in our operating
    and financial results;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    developments related to investigations, proceedings or
    litigations that involve us;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in financial estimates and recommendations by financial
    analysts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    dispositions, acquisitions and financings;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    actions of our current shareholders, including sales of common
    stock by existing shareholders and our directors and executive
    officers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in the ratings of our other securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    fluctuations in the stock price and operating results of our
    competitors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    regulatory developments;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    developments related to the financial services industry.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The market price of our common stock may also be affected by
    market conditions affecting the stock markets in general,
    including price and trading fluctuations on the New York Stock
    Exchange. These conditions may result in (i)&#160;volatility in
    the level of, and fluctuations in, the market prices of stocks
    generally and, in turn, our common stock and (ii)&#160;sales of
    substantial amounts of our common stock in the market, in each
    case that could be unrelated or disproportionate to changes in
    our operating performance. These broad market fluctuations may
    adversely affect the market prices of our common stock, and, in
    turn, the Series&#160;R Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, we expect that the market price of the
    Series&#160;R Preferred Stock will be influenced by yield and
    interest rates in the capital markets, our creditworthiness and
    the occurrence of events affecting us that do not require an
    adjustment to the conversion rate.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">There
    may be future sales or other dilution of our equity, which may
    adversely affect the market price of our common stock or the
    Series&#160;R Preferred Stock.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as described under &#147;Underwriting&#160;&#151;
    <FONT style="white-space: nowrap">Lock-Up</FONT>
    Agreements,&#148; we are not restricted from issuing additional
    common stock or preferred stock, including any securities that
    are convertible into or exchangeable for, or that represent the
    right to receive, common stock or preferred stock or any
    substantially similar securities. The market price of our common
    stock or preferred stock could decline as a result of sales of a
    large number of shares of common stock or preferred stock or
    similar securities in the market after this offering or the
    perception that such sales could occur.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each share of Series&#160;R Preferred Stock will be convertible
    at the option of the holder thereof
    into&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our common stock, subject to anti-dilution adjustments. The
    conversion of some or all of the Series&#160;R Preferred Stock
    will dilute the ownership interest of our existing common
    stockholders. Any sales in the public market of our common stock
    issuable upon such conversion could adversely affect prevailing
    market prices of the outstanding shares of our common stock and
    the Series&#160;R Preferred Stock. In addition, the existence of
    our Series&#160;R Preferred Stock may encourage short selling or
    arbitrage trading activity by
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-19
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    market participants because the conversion of our Series&#160;R
    Preferred Stock could depress the price of our equity securities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    issuance of additional preferred shares could adversely affect
    holders of common stock, which may negatively impact your
    investment.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors is authorized to issue additional classes
    or series of preferred shares without any action on the part of
    the stockholders. The board of directors also has the power,
    without stockholder approval, to set the terms of any such
    classes or series of preferred shares that may be issued,
    including voting rights, dividend rights and preferences over
    the common stock with respect to dividends or upon the
    liquidation, dissolution or winding up of our business and other
    terms. If we issue preferred shares in the future that have a
    preference over the common stock with respect to the payment of
    dividends or upon liquidation, dissolution or winding up, or if
    we issue preferred shares with voting rights that dilute the
    voting power of the common stock, the rights of holders of the
    common stock or the market price of the common stock could be
    adversely affected. As noted above, a decline in the market
    price of the common stock may negatively impact the market price
    for the Series&#160;R Preferred Stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Holders
    of the Series&#160;R Preferred Stock will have no rights as
    holders of common stock until they acquire the common
    stock.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Until the conversion of your Series&#160;R Preferred Stock into
    common stock, you will have no rights with respect to the common
    stock, including voting rights (except as described under
    &#147;Description of Series&#160;R Preferred Stock&#160;&#151;
    Voting Rights&#148; and as required by applicable state law),
    rights to respond to tender offers and rights to receive any
    dividends or other distributions on the common stock, but your
    investment in our Series&#160;R Preferred Stock may be
    negatively affected by these events. Upon conversion, you will
    be entitled to exercise the rights of a holder of common stock
    only as to matters for which the record date occurs on or after
    the applicable conversion date. For example, in the event that
    an amendment is proposed to our articles 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 the conversion date, 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 that may occur
    as a result of such amendment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">You
    will have limited voting rights.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Until and unless we are in arrears on our dividend payments on
    the Series&#160;R Preferred Stock for six dividend periods,
    whether consecutive or not, you will have no voting rights
    except with respect to certain fundamental changes in the terms
    of the Series&#160;R Preferred Stock and certain other matters.
    If dividends on the Series&#160;R Preferred Stock are not paid
    in full for six dividend periods, whether consecutive or not,
    the holders of Series&#160;R Preferred Stock, acting as a class
    with any other parity securities having similar voting rights,
    will have the right to elect two directors to our board. The
    terms of office of these directors will end when we have paid or
    set aside for payment full quarterly dividends for four
    consecutive dividend periods. See &#147;Description of
    Series&#160;R Preferred Stock&#160;&#151; Voting Rights.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Series&#160;R Preferred Stock is a new series of securities and
    an active trading market for it may not develop.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to this offering, there has been no public market for the
    Series&#160;R Preferred Stock. The Series&#160;R Preferred Stock
    is expected to be listed on the New York Stock Exchange within
    30&#160;days of December&#160;&#160;&#160;, 2007, the original
    issue date. There can be no assurance, however, that an active
    trading market will develop, or if developed, that an active
    trading market will be maintained. The underwriters have advised
    us that they intend to facilitate secondary market trading by
    making a market in the Series&#160;R Preferred Stock. However,
    the underwriters are not obligated to make a market in the
    Series&#160;R Preferred Stock and may discontinue market making
    activities at any time.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-20
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Series&#160;R Preferred Stock will rank junior to all of our and
    our subsidiaries&#146; liabilities in the event of a bankruptcy,
    liquidation or winding up.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event of bankruptcy, liquidation or winding up, our
    assets will be available to pay obligations on the Series&#160;R
    Preferred Stock only after all of our liabilities have been
    paid. In addition, the Series&#160;R Preferred Stock will rank
    in parity with the other series of preferred stock and will
    effectively rank junior to all existing and future liabilities
    of our subsidiaries and the capital stock (other than common
    stock) of the subsidiaries held by entities or persons other
    than us or entities owned or controlled by us. The rights of
    holders of the Series&#160;R Preferred Stock to participate in
    the assets of our subsidiaries upon any liquidation,
    reorganization, receivership or conservatorship of any
    subsidiary will rank junior to the prior claims of that
    subsidiary&#146;s creditors and equity holders. As of
    September&#160;30, 2007, we had total consolidated liabilities
    of approximately $306&#160;billion. In the event of bankruptcy,
    liquidation or winding up, there may not be sufficient assets
    remaining, after paying our and our subsidiaries&#146;
    liabilities, to pay amounts due on any or all of the
    Series&#160;R Preferred Stock then outstanding.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    conversion rate of the Series&#160;R Preferred Stock may not be
    adjusted for all dilutive events that may adversely affect the
    market price of the Series&#160;R Preferred Stock or the common
    stock issuable upon conversion of the Series&#160;R Preferred
    Stock.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The number of shares of our common stock that you are entitled
    to receive upon conversion of a share of Series&#160;R Preferred
    Stock is subject to adjustment for certain events arising from
    increases in cash dividends, dividends or distributions in
    common stock or other property, certain issuances of stock
    purchase rights, certain self tender offers, subdivisions,
    splits and combinations of the common stock and certain other
    actions by us that modify our capital structure. See
    &#147;Description of Series&#160;R Preferred Stock&#160;&#151;
    Anti-Dilution Adjustments.&#148; We will not adjust the
    conversion rate for other events, including offerings of common
    stock for cash by us or in connection with acquisitions. There
    can be no assurance that an event that adversely affects the
    value of the Series&#160;R Preferred Stock, but does not result
    in an adjustment to the conversion rate, will not occur.
    Further, if any of these other events adversely affects the
    market price of our common stock, it may also adversely affect
    the market price of the Series&#160;R Preferred Stock. In
    addition, except as described under
    &#147;Underwriting&#160;&#151;
    <FONT style="white-space: nowrap">Lock-Up</FONT>
    Agreements,&#148; we are not restricted from offering common
    stock in the future or engaging in other transactions that could
    dilute our common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    delivery of additional make-whole shares in respect of
    conversions following a make-whole acquisition or adjustment to
    the conversion rate in respect of conversions following a
    fundamental change may not adequately compensate
    you.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a make-whole acquisition occurs prior to conversion, we will,
    under certain circumstances, increase the conversion rate in
    respect of any conversions of the Series&#160;R Preferred Stock
    that occur during the period beginning on the effective date of
    the make-whole acquisition and ending on the date that is
    30&#160;days after the effective date by a number of additional
    shares of common stock. The number of make-whole shares, if any,
    will be based on the stock price and the effective date of the
    make-whole acquisition. See &#147;Description of Series&#160;R
    Preferred Stock&#160;&#151; Conversion Upon Certain
    Acquisitions.&#148; Although this adjustment is designed to
    compensate you for the lost option value of your Series&#160;R
    Preferred Stock, it is only an approximation of such lost value
    and may not adequately compensate you for your actual loss.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, if a fundamental change occurs prior to conversion,
    we will, under certain circumstances, increase the conversion
    rate in respect of any conversions of the Series&#160;R
    Preferred Stock that occur during the period beginning on the
    effective date of the fundamental change and ending on the date
    that is 30&#160;days after the effective date. See
    &#147;Description of Series&#160;R Preferred Stock&#160;&#151;
    Conversion Upon Fundamental Change.&#148; However, if the
    applicable reference price is less than
    $&#160;&#160;&#160;&#160;&#160;, holders will receive a maximum
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our common stock per share of Series&#160;R Preferred Stock,
    subject to adjustment, which may result in a holder receiving
    value that is less than the liquidation preference of the
    Series&#160;R Preferred Stock.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-21
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     Our obligation to deliver make-whole shares or to adjust the
    conversion rate in respect of conversions following a
    fundamental change could be considered a penalty, in which case
    the enforceability thereof would be subject to general
    principles of reasonableness, as applied to such payments.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">You
    may be subject to tax upon an adjustment to the conversion rate
    of the Series&#160;R Preferred Stock even though you do not
    receive a corresponding cash distribution.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The conversion rate of the Series&#160;R Preferred Stock is
    subject to adjustment in certain circumstances, including the
    payment of cash dividends. If the conversion rate is adjusted as
    a result of a distribution that is taxable to our common
    stockholders, such as a cash dividend, you will be deemed to
    have received for U.S.&#160;federal income tax purposes a
    taxable dividend to the extent of our earnings and profits
    without the receipt of any cash. If you are a non-U.S holder (as
    defined in &#147;Certain U.S.&#160;Federal Income Tax
    Considerations&#148;), such deemed dividend may be subject to
    U.S.&#160;federal withholding tax (currently at a 30% rate, or
    such lower rate as may be specified by an applicable treaty),
    which may be set off against subsequent payments on the
    Series&#160;R Preferred Stock. See &#147;Certain
    U.S.&#160;Federal Income Tax Considerations.&#148;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-22
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "USE OF PROCEEDS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='104'></A><B><FONT style="font-family: 'Times New Roman', Times">USE
    OF PROCEEDS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect to receive net proceeds from this offering of
    approximately $&#160;&#160;&#160;&#160;&#160;, after expenses
    and underwriting discounts and commissions. We intend initially
    to contribute up to $1.0&#160;billion of the net proceeds from
    this offering to Washington Mutual Bank, our principal bank
    subsidiary, as additional capital, and retain the remaining net
    proceeds at our holding company for general corporate purposes.
</DIV>


<!-- link1 "RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='105'></A><B><FONT style="font-family: 'Times New Roman', Times">RATIO
    OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO
    COMBINED<BR>
    FIXED CHARGES AND PREFERRED DIVIDENDS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table shows our ratio of earnings to fixed charges
    and our ratio of earnings to combined fixed charges and
    preferred dividends on a consolidated basis. The ratio of
    earnings to fixed charges has been computed by dividing net
    income plus all applicable income taxes plus fixed charges, by
    fixed charges. The ratio of earnings to combined fixed charges
    and preferred dividends has been computed by dividing net income
    plus all applicable income taxes plus fixed charges, by fixed
    charges and preferred dividend requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Fixed charges consist of interest expense, either including or
    excluding interest on deposits as set forth below, and the
    portion of net rental expense deemed to be equivalent to
    interest on long-term debt. Interest expense, other than on
    deposits, includes interest on long-term debt, federal funds
    purchased and securities sold under agreements to repurchase,
    mortgages, commercial paper and other funds borrowed. The
    preferred dividend requirements represent the pretax earnings
    which would have been required to cover the dividend
    requirements on our preferred stock outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="52%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Nine Months<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>September&#160;30,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2002</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Earnings to Fixed Charges:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Including interest on deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.31
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.44
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.68
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.89
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Excluding interest on deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.77
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.89
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.84
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.67
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.38
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Earnings to Combined Fixed Charges and Preferred Dividends:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Including interest on deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.44
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.68
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.89
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Excluding interest on deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.89
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.83
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.67
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.38
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.87
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-23
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "CAPITALIZATION" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='106'></A><B><FONT style="font-family: 'Times New Roman', Times">CAPITALIZATION</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth, on a consolidated basis, our
    capitalization as of September&#160;30, 2007:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    on an actual basis; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    as adjusted to give effect to the issuance by Washington Mutual
    Preferred Funding Trust&#160;IV of $1,000,000,000 of its
    Fixed-to Floating Rate Perpetual Non-Cumulative Trust
    Securities, the issuance by us of $500,000,000 of our 7.250%
    Subordinated Notes due November&#160;1, 2017, and this offering.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should read the following table together with
    &#147;Summary&#160;&#151; Summary Financial and Other
    Information&#148; and our consolidated financial statements and
    notes thereto incorporated by reference into this prospectus
    supplement and the accompanying prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="78%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of September&#160;30, 2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Actual</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As Adjusted</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>($ in millions)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    194,280
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    194,280
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Federal funds purchased and commercial paper
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,482
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,482
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Securities sold under agreement to repurchase
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,732
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,732
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Advances from Federal Home Loan Banks
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52,530
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52,530
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other borrowings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,887
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41,384
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,313
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,313
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Minority interests
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,945
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,917
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    306,169
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    307,638
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stockholders&#146; equity:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Series&#160;K preferred stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    492
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    492
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Series&#160;R preferred
    stock<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Capital surplus&#160;&#151; common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,575
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,575
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accumulated other comprehensive loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (390
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Retained earnings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,264
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total stockholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,965
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total liabilities and stockholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    330,110
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Capital Adequacy:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Tangible equity to total tangible assets
    <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.60
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.64
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total risk-based capital to risk-weighted assets
    <SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.67
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD></TD>
    <TD valign="bottom">
    Assumes estimated expenses from this offering will be
    approximately $1.75&#160;million.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD></TD>
    <TD valign="bottom">
    Excludes unrealized net gain/loss on available-for-sale
    securities and derivatives, goodwill and intangible assets, but
    includes MSR and transition adjustments related to the adoption
    of Financial Accounting Standards Board Statement No.&#160;158,
    &#147;Employer&#146;s Accounting for Defined Benefit Pension and
    Other Postretirement Plans.&#148; These adjustments are applied
    to both the numerator and the denominator. Minority interests of
    $2.94&#160;billion for September&#160;30, 2007 are included in
    the numerator.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></TD>
    <TD></TD>
    <TD valign="bottom">
    Estimate of what the total risk-based capital ratio would be if
    Washington Mutual, Inc. were a bank holding company subject to
    the regulatory capital guidelines of the Federal Reserve Board.
    The amounts and components of total risk-based capital and
    Tier&#160;1 capital included in this estimate are based on our
    judgment of what may be included as such capital under the
    Federal Reserve Board&#146;s regulatory capital guidelines and
    are not reported to or approved by the Federal Reserve Board.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-24
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "DESCRIPTION OF SERIES R PREFERRED STOCK" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='108'></A><B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF SERIES&#160;R PREFERRED STOCK</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus supplement summarizes specific terms and
    provisions of the Series&#160;R Preferred Stock. Terms that
    apply generally to our preferred stock are described in the
    &#147;Description of Capital Stock&#160;&#151; Preferred
    Stock&#148; section of the accompanying prospectus. The
    following summary of the terms and provisions of the
    Series&#160;R Preferred Stock does not purport to be complete
    and is qualified in its entirety by reference to the pertinent
    sections of our amended and restated articles of incorporation,
    including the articles of amendment creating the Series&#160;R
    Preferred Stock, which will be incorporated by reference in the
    registration statement that we filed with the SEC. You should
    read our articles of incorporation, including the articles of
    amendment, for the provisions that are important to you.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As used in this section, the terms the &#147;us,&#148;
    &#147;we&#148; or &#147;our&#148; refer to Washington Mutual,
    Inc. and not any of its subsidiaries.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our amended and restated articles of incorporation authorize the
    issuance of 10,000,000 preferred shares, with no par value. When
    issued, the Series&#160;R Preferred Stock will constitute a
    single series of our preferred shares, consisting of
    2,500,000&#160;shares (or 2,875,000&#160;shares if the
    underwriters exercise their option to purchase additional shares
    in full in accordance with the procedures set forth in
    &#147;Underwriting&#148;), no par value and liquidation
    preference $1,000 per share. The holders of the Series&#160;R
    Preferred Stock will have no preemptive rights. All of the
    shares of the Series&#160;R Preferred Stock, when issued and
    paid for, will be validly issued, fully paid and non-assessable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Series&#160;R Preferred Stock will rank, with respect to the
    payment of dividends and distributions upon liquidation,
    dissolution or
    <FONT style="white-space: nowrap">winding-up,</FONT>
    (1)&#160;on a parity with our outstanding Series&#160;K
    Preferred Stock and any Series&#160;I Preferred Stock,
    Series&#160;J Preferred Stock, Series&#160;L Preferred Stock,
    Series&#160;M Preferred Stock and Series&#160;N Preferred Stock
    we may issue in the future and each other class or series of
    preferred stock we may issue in the future the terms of which
    expressly provide that such class or series will rank on a
    parity with the Series&#160;R Preferred Stock as to dividend
    rights and rights on liquidation, winding up and dissolution of
    Washington Mutual (collectively, the <B>&#147;parity
    securities&#148;</B>) and (2)&#160;senior to our common stock,
    our Series&#160;RP Preferred Stock and each other class or
    series of preferred stock we may issue in the future the terms
    of which do not expressly provide that it ranks on a parity with
    or senior to the Series&#160;R Preferred Stock as to dividend
    rights and rights on liquidation,
    <FONT style="white-space: nowrap">winding-up</FONT>
    and dissolution of Washington Mutual (collectively, the
    <B>&#147;junior securities&#148;</B>). As of September&#160;30,
    2007, no class or series of our preferred stock is outstanding
    other than 500&#160;shares of our Series&#160;K Preferred Stock.
    See &#147;Description of Other Preferred Stock&#148; for a
    description of our preferred shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will not be entitled to issue any class or series of our
    capital stock, the terms of which provide that such class or
    series will rank senior to the Series&#160;R Preferred Stock as
    to payment of dividends or distribution of assets upon our
    liquidation, dissolution or winding up, without the approval of
    the holders of at least two-thirds of the shares of our
    Series&#160;R Preferred Stock then outstanding and any class or
    series of parity securities then outstanding, voting together as
    a single class, with each series or class having a number of
    votes proportionate to the aggregate liquidation preference of
    the outstanding shares of such class or series. See
    &#147;&#151;&#160;Voting Rights.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of the date of this prospectus supplement, we are authorized
    to issue up to 1,600,000,000&#160;shares of common stock, with
    no par value. As of September&#160;30, 2007,
    868,518,680&#160;shares of common stock (including shares held
    in escrow) were issued and outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Washington law, we may declare or pay dividends on the
    Series&#160;R Preferred Stock only if after payment of such
    dividends we would be able to pay our liabilities as they become
    due in the usual course of business and only to the extent by
    which our total assets after payment of such dividends exceed
    the sum of our total liabilities plus the amount (the
    <B>&#147;preference amount&#148;</B>) that, if we were to be
    dissolved at the time of the distribution, would be needed to
    satisfy preferential rights upon dissolution of stockholders
    whose preferential rights are superior to those receiving the
    distributions. When the need to make these
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-25
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    determinations arises, our board of directors will determine the
    amount of our total assets, total liabilities and preference
    amount in accordance with Washington law.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Dividends</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dividends on the Series&#160;R Preferred Stock will be payable
    quarterly, if, when and as declared by our board of directors
    out of legally available funds, on a non-cumulative basis on the
    $1,000 per share liquidation preference, at an annual rate equal
    to&#160;&#160;&#160;&#160;&#160;%. Subject to the foregoing,
    dividends will be payable in arrears on March&#160;15,
    June&#160;15, September 15 and December 15 of each year
    commencing on March&#160;15, 2008 or, if any such day is not a
    business day, the next business day (each, a <B>&#147;dividend
    payment date&#148;</B>). Each dividend will be payable to
    holders of record as they appear on our stock register on the
    first day of the month in which the relevant dividend payment
    date occurs. Each period from and including a dividend payment
    date (or the date of the issuance of the Series&#160;R Preferred
    Stock) to but excluding the following dividend payment date is
    herein referred to as <B>&#147;dividend period</B>.<B>&#148;</B>
    Dividends payable for each dividend period will be computed on
    the basis of the actual number of days elapsed in the period
    divided by 360. If a scheduled dividend payment date falls on a
    day that is not a business day, the dividend will be paid on the
    next business day as if it were paid on the scheduled dividend
    payment date, and no interest will accrue on the dividend so
    payable for the period from and after that dividend payment date
    to the date the dividend is paid.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dividends on the Series&#160;R Preferred Stock will be
    non-cumulative. If for any reason our board of directors does
    not declare full cash dividends on the Series&#160;R Preferred
    Stock for a dividend period, we will have no obligation to pay
    any dividends for that period, whether or not our board of
    directors declares dividends on the Series&#160;R Preferred
    Stock for any subsequent dividend period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are not obligated to and will not pay holders of the
    Series&#160;R Preferred Stock any interest or sum of money in
    lieu of interest on any dividend not paid on a dividend payment
    date. We are also not obligated to and will not pay holders of
    the Series&#160;R Preferred Stock any dividend in excess of the
    dividends on the Series&#160;R Preferred Stock that are payable
    as described above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There is no sinking fund with respect to dividends.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a discussion of the tax consequences of dividends paid on
    the Series&#160;R Preferred Stock, see &#147;Certain
    U.S.&#160;Federal Income Tax Considerations&#160;&#151;
    U.S.&#160;Holders&#160;&#151; Dividends&#148; and &#147;Certain
    U.S.&#160;Federal Income Tax Considerations&#160;&#151;
    Non-U.S.&#160;Holders&#160;&#151; Dividends.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Dividend
    Stopper</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, if full quarterly dividends on all outstanding
    shares of the Series&#160;R Preferred Stock for any dividend
    period have not been declared and paid, we will be prohibited
    from declaring or paying dividends with respect to, or
    redeeming, purchasing or acquiring any of, our junior securities
    during the next succeeding dividend period, other than:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;redemptions, purchases or other acquisitions of junior
    securities in connection with any benefit plan or other similar
    arrangement with or for the benefit of any one or more
    employees, officers, directors or consultants or in connection
    with a dividend reinvestment or stockholder stock purchase plan;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;any declaration of a dividend in connection with any
    stockholder&#146;s rights plan, including with respect to our
    Series&#160;RP Preferred Stock, or the issuance of rights, stock
    or other property under any stockholders&#146; rights plan, or
    the redemption or repurchase of rights pursuant thereto;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;conversions into or exchanges for other junior
    securities and cash solely in lieu of fractional shares of the
    junior securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If dividends for any dividend payment date are not paid in full
    on the shares of the Series&#160;R Preferred Stock and there are
    issued and outstanding shares of parity securities for which
    such dividend payment date is also a scheduled dividend payment
    date, then all dividends declared on shares of the Series&#160;R
    Preferred Stock and such parity securities on such date shall be
    declared pro rata so that the respective amounts of such
    dividends shall bear the same ratio to each other as full
    quarterly dividends per share on the shares of the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-26
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Series&#160;R Preferred Stock and all such parity securities
    otherwise payable on such date (subject to their having been
    declared by the board of directors out of legally available
    funds and including, in the case of any such parity securities
    that bear cumulative dividends, all accrued but unpaid
    dividends) bear to each other.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Redemption</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Series&#160;R Preferred Stock will not be redeemable either
    of our option or at the option of the holders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Optional
    Conversion Right</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each share of the Series&#160;R Preferred Stock may be converted
    at any time, at the option of the holder,
    into&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our common stock (which reflects an approximate initial
    conversion price of $&#160;&#160;&#160;&#160;&#160; per share of
    common stock ) plus cash in lieu of fractional shares, subject
    to anti-dilution adjustments (such price or adjusted price, the
    <B>&#147;conversion price&#148;</B>).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The conversion rate and the corresponding conversion price in
    effect at any given time are referred to as the
    <B>&#147;applicable conversion rate&#148;</B> and the
    <B>&#147;applicable conversion price</B>,<B>&#148;</B>
    respectively, and will be subject to adjustment as described
    below. The applicable conversion price at any given time will be
    computed by dividing $1,000 by the applicable conversion rate at
    such time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the conversion date is prior to the record date for any
    declared dividend for the dividend period in which you elect to
    convert, you will not receive any declared dividends for that
    dividend period. If the conversion date is after the record date
    for any declared dividend and prior to the dividend payment
    date, you will receive that dividend on the relevant dividend
    payment date if you were the holder of record on the record date
    for that dividend; however, whether or not you were the holder
    of record on the record date, you must pay to the conversion
    agent when you convert your shares of Series&#160;R Preferred
    Stock an amount in cash equal to the full dividend actually paid
    on the dividend payment date for the then-current dividend
    period on the shares being converted, unless your shares of
    Series&#160;R Preferred Stock are being converted as a
    consequence of a mandatory conversion at our option, a
    make-whole acquisition or a fundamental change as described
    below under &#147;&#151;&#160;Mandatory Conversion at Our
    Option,&#148; &#147;&#151;&#160;Conversion Upon Certain
    Acquisitions&#148; and &#147;&#151;&#160;Conversion Upon
    Fundamental Change,&#148; respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Mandatory
    Conversion at Our Option</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On or after December&#160;18, 2012, we may, at our option, at
    any time or from time to time cause some or all of the
    Series&#160;R Preferred Stock to be converted into shares of our
    common stock at the then applicable conversion rate. We may
    exercise our conversion right if, for 20 trading days within any
    period of 30 consecutive trading days, including the last
    trading day of such period, ending on the trading day preceding
    the date we give notice of mandatory conversion, the closing
    price of our common stock exceeds 130% of the then applicable
    conversion price of the Series&#160;R Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If less than all of the Series&#160;R Preferred Stock are
    converted, the conversion agent will select the Series&#160;R
    Preferred Stock to be converted by lot, or on a pro rata basis
    or by another method the conversion agent considers fair and
    appropriate, including any method required by DTC or any
    successor depositary. If the conversion agent selects a portion
    of your Series&#160;Preferred Stock for partial mandatory
    conversion and you convert a portion of the same share of
    Series&#160;R Preferred Stock, the converted portion will be
    deemed to be from the portion selected for mandatory conversion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The <B>&#147;closing price&#148;</B> of the common stock on any
    date of determination means the closing sale price or, if no
    closing sale price is reported, the last reported sale price of
    the shares of our common stock on the New York Stock Exchange on
    that date. If the common stock is not traded on the New York
    Stock Exchange on any date of determination, the closing price
    of the common stock on any date of determination means the
    closing sale price as reported in the composite transactions for
    the principal U.S.&#160;national or regional securities exchange
    on which our common stock is so listed or quoted, or, if no
    closing price is reported, the last reported sale price on the
    principal U.S.&#160;national or regional securities exchange on
    which our common stock is so listed or quoted, or if the common
    stock are not so listed or quoted on a U.S.&#160;national or
    regional
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-27
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    securities exchange, the last quoted bid price for the common
    stock in the over-the-counter market as reported by Pink Sheets
    LLC or similar organization, or, if that bid price is not
    available, the market price of the common stock on that date as
    determined by a nationally recognized independent investment
    banking firm retained by us for this purpose.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A <B>&#147;trading day&#148;</B> is a day on which the shares of
    our common stock:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    are not suspended from trading on any national or regional
    securities exchange or association or over-the-counter market at
    the close of business;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    have traded at least once on the national or regional securities
    exchange or association or over-the-counter market that is the
    primary market for the trading of the common stock.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of this prospectus supplement, all references to
    the closing price and last reported sale price of the common
    stock on the New York Stock Exchange shall be such closing price
    and last reported sale price as reflected on the website of the
    New York Stock Exchange
    (<I><FONT style="white-space: nowrap">http://www.nyse.com</FONT></I>)
    and as reported by Bloomberg Professional Service; <I>provided
    </I>that in the event that there is a discrepancy between the
    closing sale price as reflected on the website of the New York
    Stock Exchange and as reported by Bloomberg Professional
    Service, the closing sale price and last reported sale price on
    the website of the New York Stock Exchange shall govern.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To exercise the mandatory conversion right described above, we
    must provide a notice of such conversion to each holder of our
    Series&#160;R Preferred Stock or issue a press release for
    publication and make this information available on our website.
    The conversion date will be a date selected by us (the
    <B>&#147;mandatory conversion date&#148;</B>) and will be no
    more than 20&#160;days after the date on which we provide such
    notice of mandatory conversion or issue such press release. In
    addition to any information required by applicable law or
    regulation, the notice of mandatory conversion and press release
    shall state, as appropriate:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the mandatory conversion date;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the number of shares of our common stock to be issued upon
    conversion of each share of Series&#160;R Preferred
    Stock;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the number of shares of Series&#160;R Preferred Stock to be
    converted.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Conversion
    Procedures</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Conversion into shares of our common stock will occur on the
    mandatory conversion date or any applicable conversion date (as
    defined below). On the mandatory conversion date, certificates
    representing shares of our common stock will be issued and
    delivered to you or your designee upon presentation and
    surrender of the certificate evidencing the Series&#160;R
    Preferred Stock to the conversion agent if shares of the
    Series&#160;R Preferred Stock are held in certificated form, and
    upon compliance with some additional procedures described below.
    If a holder&#146;s interest is a beneficial interest in a global
    certificate representing Series&#160;R Preferred Stock, a
    book-entry transfer through DTC will be made by the conversion
    agent upon compliance with the depositary&#146;s procedures for
    converting a beneficial interest in a global security.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On the date of any conversion at the option of the holders, if a
    holder&#146;s interest is in certificated form, a holder must do
    each of the following in order to convert:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    complete and manually sign the conversion notice provided by the
    conversion agent, or a facsimile of the conversion notice, and
    deliver this irrevocable notice to the conversion agent;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    surrender the shares of Series&#160;R Preferred Stock to the
    conversion agent;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if required, furnish appropriate endorsements and transfer
    documents;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if required, pay all transfer or similar taxes;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if required, pay funds equal to any declared and unpaid dividend
    payable on the next dividend payment date to which such holder
    is entitled.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-28
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a holder&#146;s interest is a beneficial interest in a global
    certificate representing Series&#160;R Preferred Stock, in order
    to convert a holder 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 security.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The date on which a holder complies with the foregoing
    procedures is the <B>&#147;conversion date</B>.<B>&#148;</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The conversion agent for the Series&#160;R Preferred Stock is
    initially the transfer agent. A holder may obtain copies of the
    required form of the conversion notice from the conversion
    agent. The conversion agent will, on a holder&#146;s behalf,
    convert the Series&#160;R Preferred Stock into shares of our
    common stock, in accordance with the terms of the notice
    delivered by us described below. Payments of cash for dividends
    and in lieu of fractional shares and, if shares of our common
    stock are to be delivered, a stock certificate or certificates,
    will be delivered to the holder, or in the case of global
    certificates, a book-entry transfer through DTC will be made by
    the conversion agent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The person or persons entitled to receive the shares of common
    stock issuable upon conversion of the Series&#160;R Preferred
    Stock will be treated as the record holder(s) of such shares as
    of the close of business on the applicable conversion date.
    Prior to the close of business on the applicable conversion
    date, the shares of common stock issuable upon conversion of the
    Series&#160;R Preferred Stock will not be deemed to be
    outstanding for any purpose and you will have no rights with
    respect to the common stock, including voting rights, rights to
    respond to tender offers and rights to receive any dividends or
    other distributions on the common stock, by virtue of holding
    the Series&#160;R Preferred Stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Conversion
    Upon Certain Acquisitions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>General.</I></B>&#160;&#160;The following provisions will
    apply if, prior to the conversion date, one of the following
    events occur:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a &#147;person&#148; or &#147;group&#148; within the meaning of
    Section&#160;13(d) of the Exchange Act files a Schedule TO or
    any 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
    <FONT style="white-space: nowrap">Rule&#160;13d-3</FONT>
    under the Exchange Act, of our common equity representing more
    than 50% of the voting power of our common stock;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    consummation of any consolidation or merger of us or similar
    transaction 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 one of our subsidiaries, in
    each case pursuant to which our common stock will be converted
    into cash, securities or other property.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These transactions are referred to as <B>&#147;make-whole
    acquisitions&#148;</B>; <I>provided, however </I>that a
    make-whole acquisition will not be deemed to have occurred if at
    least 90% of the consideration received by holders of our common
    stock in the transaction or transactions consists of shares of
    common stock or American Depositary Receipts in respect of
    common stock that are traded on a U.S.&#160;national securities
    exchange or that will be so traded when issued or exchanged in
    connection with a make-whole acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The phrase &#147;all or substantially all&#148; of our assets is
    likely to be interpreted by reference to applicable state law at
    the relevant time, and will be dependent on the facts and
    circumstances existing at such time. As a result, there may be a
    degree of uncertainty in ascertaining whether a sale or transfer
    is of &#147;all or substantially all&#148; of our assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon a make-whole acquisition, we will, under certain
    circumstances, increase the conversion rate in respect of any
    conversions of the Series&#160;R Preferred Stock that occur
    during the period (the <B>&#147;make-whole acquisition
    conversion period&#148;</B>) beginning on the effective date of
    the make-whole acquisition (the <B>&#147;effective
    date&#148;</B>) and ending on the date that is 30&#160;days
    after the effective date, by a number of additional shares of
    common stock (the <B>&#147;make-whole shares&#148;</B>) as
    described below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will notify holders, at least 20&#160;days prior to the
    anticipated effective date of such make-whole acquisition, of
    the anticipated effective date of such transaction. The notice
    will specify the anticipated effective date of the make-whole
    acquisition and the date by which each holder&#146;s make-whole
    acquisition conversion right must be exercised. We will also
    notify holders on the effective date of such make-whole
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-29
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    acquisition specifying, among other things, the date that is
    30&#160;days after the effective date, the number of make-whole
    shares and the amount of the cash, securities and other
    consideration receivable by the holder upon conversion. To
    exercise the make-whole acquisition conversion right, a holder
    must deliver to the conversion agent, on or before the close of
    business on the date specified in the notice, the certificate
    evidencing such holder&#146;s shares of the Series&#160;R
    Preferred Stock, if the Series&#160;R Preferred Stock are held
    in certificated form. If a holder&#146;s interest is a
    beneficial interest in a global certificate representing
    Series&#160;R Preferred Stock, in order to convert a holder must
    comply with the requirements listed above under
    &#147;&#151;&#160;Conversion Procedures&#148; and comply with
    the depositary&#146;s procedures for converting a beneficial
    interest in a global security. The date that the holder complies
    with these requirements is referred to as the
    <B>&#147;make-whole conversion date</B>.<B>&#148;</B> If a
    holder does not elect to exercise the make-whole acquisition
    conversion right, such holder&#146;s shares of the Series&#160;R
    Preferred Stock will remain outstanding but will not be eligible
    to receive make-whole shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Make-Whole Shares.</I></B>&#160;&#160;The following table
    sets forth the number of make-whole shares per share of
    Series&#160;R Preferred Stock for each stock price and effective
    date set forth below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="37%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=10 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=10 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=10 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=10 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=11 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=11 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=11 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=11 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=12 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=12 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=12 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=12 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=13 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=13 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=13 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=13 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=14 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=14 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=14 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=14 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=15 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=15 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=15 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=15 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=16 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=16 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=16 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=16 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=17 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=17 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=17 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=17 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="62" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Stock Price</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Effective Date</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    12/&#160;&#160;/2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    12/15/2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    12/15/2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    12/15/2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    12/15/2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    12/15/2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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</TD>
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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</TD>
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<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The number of make-whole shares will be determined by reference
    to the table above and is based on the effective date and the
    price (the <B>&#147;stock price&#148;</B>) paid per share of our
    common stock in such transaction. If the holders of our shares
    of common stock receive only cash in the make-whole acquisition,
    the stock price shall be the cash amount paid per share.
    Otherwise the stock price shall be the average of the closing
    price per share of our common stock on the 10 trading days up to
    but not including the effective date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The stock prices set forth in the first row of the table (i.e.,
    the column headers) will be adjusted as of any date on which the
    conversion rate of the Series&#160;R Preferred Stock is
    adjusted. The adjusted stock prices will equal the stock prices
    applicable immediately prior to such adjustment multiplied by a
    fraction, the numerator of which is the conversion rate
    immediately prior to the adjustment giving rise to the stock
    price adjustment and the denominator of which is the conversion
    rate as so adjusted. Each of the number of make-whole shares in
    the table will be subject to adjustment in the same manner as
    the conversion rate as set forth under
    &#147;&#151;&#160;Anti-Dilution Adjustments.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The exact stock price and effective dates may not be set forth
    on the table, in which case:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if the stock price is between two stock price amounts on the
    table or the effective date is between two dates on the table,
    the number of make-whole shares will be determined by
    straight-line interpolation between the number of make-whole
    shares set forth for the higher and lower stock price amounts
    and the two dates, as applicable, based on a
    <FONT style="white-space: nowrap">365-day</FONT> year;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if the stock price is in excess of
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;per
    share (subject to adjustment as described above), no make-whole
    shares will be issued upon conversion of the Series&#160;R
    Preferred Stock;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if the stock price is less than
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;per
    share (subject to adjustment as described above), no make-whole
    shares will be issued upon conversion of the Series&#160;R
    Preferred Stock.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our obligation to deliver make-whole shares could be considered
    a penalty, in which case the enforceability thereof would be
    subject to general principles of reasonableness, as applied to
    such payments.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-30
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Conversion
    Upon Fundamental Change</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the reference price (as defined below) in connection with a
    fundamental change (as defined below) is less than the
    applicable conversion price, each share of Series&#160;R
    Preferred Stock may be converted during the period beginning on
    the effective date of the fundamental change and ending on the
    date that is 30&#160;days after the effective date of such
    fundamental change at an adjusted conversion price equal to the
    greater of (1)&#160;the reference price and
    (2)&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160; , which is
    50% of the closing price of our common stock on the date of this
    prospectus supplement, subject to adjustment (the &#147;<B>base
    price</B>&#148;). The base price will be adjusted as of any date
    the conversion rate of the Series R Preferred Stock is adjusted.
    The adjusted base price will equal the base price applicable
    immediately prior to such adjustment multiplied by a fraction,
    the numerator of which is the conversion rate immediately prior
    to the adjustment giving rise to the stock price adjustment and
    the denominator of which is the conversion rate as so adjusted.
    If the reference price is less than the base price, holders will
    receive a maximum
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our common stock per share of Series&#160;R Preferred Stock,
    subject to adjustment, which may result in a holder receiving
    value that is less than the liquidation preference of the
    Series&#160;R Preferred Stock.  In lieu of issuing common stock
    upon conversion in the event of a fundamental change, we may at
    our option, and if we obtain any necessary regulatory approval,
    make a cash payment equal to the reference price for each share
    of common stock otherwise issuable upon conversion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The <B>&#147;reference price&#148;</B> is the price paid per
    share of common stock in such fundamental change. If the holders
    of our shares of common stock receive only cash in the
    fundamental change, the reference price shall be the cash amount
    paid per share. Otherwise the reference price shall be the
    average of the closing price per share of our common stock on
    the 10 trading days up to but not including the effective date
    of the fundamental change.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A <B>&#147;fundamental change&#148;</B> will have deemed to have
    occurred upon the occurrence of any of the following:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

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

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

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (a)&#160;
</TD>
    <TD align="left">
    a &#147;person&#148; or &#147;group&#148; within the meaning of
    Section&#160;13(d) of the Exchange Act files a Schedule&#160;TO
    or any 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
    <FONT style="white-space: nowrap">Rule&#160;13d-3</FONT>
    under the Exchange Act, of our common equity representing more
    than 50% of the voting power of our common stock; or
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (b)&#160;
</TD>
    <TD align="left">
    consummation of any consolidation or merger of us or similar
    transaction 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 one of our subsidiaries, in
    each case pursuant to which our shares of common stock will be
    converted into cash, securities or other property, other than
    pursuant to a transaction in which the persons that
    &#147;beneficially owned&#148; (as defined in
    <FONT style="white-space: nowrap">Rule&#160;13d-3</FONT>
    under the Exchange Act) directly or indirectly, voting shares
    immediately prior to such transaction beneficially own, directly
    or indirectly, voting shares representing a majority of the
    total voting power of all outstanding classes of voting shares
    of the continuing or surviving person immediately after the
    transaction; or
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

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

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

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (c)&#160;
</TD>
    <TD align="left">
    our common stock ceases to be listed on a U.S.&#160;national
    securities exchange or another over-the-counter market in the
    United States;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>provided, however</I>, that a fundamental change with respect
    to clauses&#160;(a) or (b) above will not be deemed to have
    occurred if at least 90% of the consideration in the transaction
    or transactions consists of common stock or American Depositary
    Receipts in respect of common stock that are traded on a
    U.S.&#160;national securities exchange or that will be so traded
    when issued or exchanged in connection with a fundamental change.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The phrase &#147;all or substantially all&#148; of our assets is
    likely to be interpreted by reference to applicable state law at
    the relevant time, and will be dependent on the facts and
    circumstances existing at such time. As a result, there may be a
    degree of uncertainty in ascertaining whether a sale or transfer
    is of &#147;all or substantially all&#148; of our assets.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-31
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reorganization
    Events</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

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

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (a)&#160;
</TD>
    <TD align="left">
    any consolidation or merger of us with or into another person in
    each case pursuant to which our common stock will be converted
    into cash, securities or other property of us or another person;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (b)&#160;
</TD>
    <TD align="left">
    any sale, transfer, lease or conveyance to another person of all
    or substantially all of our property and assets, in each case
    pursuant to which our common stock will be converted into cash,
    securities or other property;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

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

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (c)&#160;
</TD>
    <TD align="left">
    any reclassification of the common stock into securities,
    including securities other than the common stock;&#160;or
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (d)&#160;
</TD>
    <TD align="left">
    any statutory exchange of our securities with another person
    (other than in connection with a merger or acquisition),
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    each of which is referred to as a <B>&#147;reorganization
    event</B>,<B>&#148;</B> each share of the Series&#160;R
    Preferred Stock outstanding immediately prior to such
    reorganization event will, without the consent of the holders of
    the Series&#160;R Preferred Stock, become convertible into the
    kind of securities, cash and other property receivable in such
    reorganization event by a holder of the shares of our common
    stock that was not the counterparty to the reorganization event
    or an affiliate of such other party (such securities, cash and
    other property, the <B>&#147;exchange property&#148;</B>). In
    the event that holders of the shares of our common stock have
    the opportunity to elect the form of consideration to be
    received in such transaction, the consideration that the holders
    of the Series&#160;R Preferred Stock are entitled to receive
    will be deemed to be the types and amounts of consideration
    received by the majority of the holders of the shares of our
    common stock that affirmatively make an election. Holders have
    the right to convert their shares of Series&#160;R Preferred
    Stock in the event of certain acquisitions as described under
    &#147;&#151;&#160;Conversion Upon Certain Acquisitions.&#148; In
    connection with certain reorganization events, holders of the
    Series&#160;R Preferred Stock may have the right to vote as a
    class, see &#147;&#151;&#160;Voting Rights.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Anti-Dilution
    Adjustments</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The conversion rate will be adjusted in the following
    circumstances:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;<U>Stock Dividend Distributions</U>.&#160;If we pay
    dividends or other distributions on the common stock in common
    stock, then the conversion rate in effect immediately prior to
    the ex-date for such dividend or distribution will be multiplied
    by the following fraction:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    OS<SUP style="font-size: 85%; vertical-align: text-top">1</SUP>
</DIV>

<CENTER style="font-size: 1pt; width: 13%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=60 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    OS<SUB style="font-size: 85%; vertical-align: text-bottom">o</SUB>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Where,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    OS<SUB style="font-size: 85%; vertical-align: text-bottom">o</SUB>&#160;=&#160;
</TD>
    <TD align="left">    the number of shares of common stock outstanding immediately
    prior to ex-date for such dividend or distribution.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    OS<SUP style="font-size: 85%; vertical-align: text-top">1</SUP>&#160;=&#160;
</TD>
    <TD align="left">    the number of shares of common stock outstanding immediately
    after the opening of business on the ex-date for such dividend
    or distribution.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;<U>Subdivisions, Splits and Combination of the Common
    Stock</U>.&#160;If we subdivide, split or combine the shares of
    common stock, then the conversion rate in effect immediately
    prior to the effective date of such share subdivision, split or
    combination will be multiplied by the following fraction:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    OS<SUP style="font-size: 85%; vertical-align: text-top">1</SUP>
</DIV>

<CENTER style="font-size: 1pt; width: 13%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=60 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    OS<SUB style="font-size: 85%; vertical-align: text-bottom">o</SUB>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Where,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    OS<SUB style="font-size: 85%; vertical-align: text-bottom">o</SUB>&#160;=&#160;</TD>
    <TD align="left">
    the number of shares of common stock outstanding immediately
    prior to the effective date of such share subdivision, split or
    combination.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-32
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

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

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    OS<SUP style="font-size: 85%; vertical-align: text-top">1</SUP>&#160;=&#160;</TD>
    <TD align="left">
    the number of shares of common stock outstanding immediately
    after the opening of business on the effective date of such
    share subdivision, split or combination.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;<U>Issuance of Stock Purchase Rights</U>.&#160;If we
    issue to all holders of the shares of our common stock rights or
    warrants (other than rights or warrants issued pursuant to a
    dividend reinvestment plan or share purchase plan or other
    similar plans) entitling them, for a period of up to
    45&#160;days from the date of issuance of such rights or
    warrants, to subscribe for or purchase the shares of our common
    stock at less than the current market price, as defined below,
    of the common stock on the date fixed for the determination of
    stockholders entitled to receive such rights or warrants, then
    the conversion rate in effect immediately prior to the ex-date
    for such distribution will be multiplied by the following
    fraction:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    OS<SUB style="font-size: 85%; vertical-align: text-bottom">o</SUB>&#160;+&#160;X
</DIV>

<CENTER style="font-size: 1pt; width: 13%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=60 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    OS<SUB style="font-size: 85%; vertical-align: text-bottom">o</SUB>&#160;+&#160;Y
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Where,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    OS<SUB style="font-size: 85%; vertical-align: text-bottom">o</SUB>&#160;=&#160;</TD>
    <TD align="left">
    the number of shares of common stock outstanding immediately
    prior to the ex-date for such distribution.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    X&#160;=&#160;
</TD>
    <TD align="left">    the total number of shares of common stock issuable pursuant to
    such rights or warrants.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    Y&#160;=&#160;
</TD>
    <TD align="left">    the number of shares of common stock equal to the aggregate
    price payable to exercise such rights or warrants divided by the
    current market price.
</TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the extent that such rights or warrants are not exercised
    prior to their expiration or shares of our common stock are
    otherwise not delivered pursuant to such rights or warrants upon
    the exercise of such rights or warrants, the conversion rate
    shall be readjusted to such conversion rate that would then be
    in effect had the adjustment made upon the issuance of such
    rights or warrants been made on the basis of the delivery of
    only the number of shares of our common stock actually
    delivered. In determining the aggregate offering price payable
    for such shares of our common stock, there shall be taken into
    account any consideration received for such rights or warrants
    and the value of such consideration (if other than cash, to be
    determined by our board of directors).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;<U>Debt or Asset Distributions</U>.&#160;If we
    distribute to all holders of shares of our common stock
    evidences of indebtedness, shares of capital stock, securities,
    cash or other assets (excluding any dividend or distribution
    referred to in clause&#160;(1) above, any rights or warrants
    referred to in clause&#160;(3) above, any dividend or
    distribution paid exclusively in cash, any consideration payable
    in connection with a tender or exchange offer made by us or any
    of our subsidiaries, and any dividend of shares of capital stock
    of any class or series, or similar equity interests, of or
    relating to a subsidiary or other business unit in the case of
    certain spin-off transactions as described below), then the
    conversion rate in effect immediately prior to the ex-date for
    such distribution will be multiplied by the following fraction:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</DIV>

<CENTER style="font-size: 1pt; width: 13%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=60 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>&#160;&#8722;&#160;FMV
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Where,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

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

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>&#160;=&#160;</TD>
    <TD align="left">
    the current market price per share of common stock on such date.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    FMV&#160;=&#160;</TD>
    <TD align="left">
    the fair market value of the portion of the distribution
    applicable to one share of common stock on such date as
    determined by our board of directors.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In a &#147;spin-off,&#148; where we make a distribution to all
    holders of our shares of common stock consisting of capital
    stock of any class or series, or similar equity interests of, or
    relating to, a subsidiary or other business unit, the conversion
    rate will be adjusted on the fifteenth trading day after the
    effective date of the distribution by <I>multiplying </I>such
    conversion rate in effect immediately prior to such fifteenth
    trading day by the following
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-33
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    fraction:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    MP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    + MPs
</DIV>

<CENTER style="font-size: 1pt; width: 13%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=60 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    MP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Where,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    MP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>&#160;=&#160;
</TD>
    <TD align="left">    the average of the closing prices of the common stock over the
    first ten trading days commencing on and including the fifth
    trading day following the effective date of such distribution.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    MPs&#160;=&#160;
</TD>
    <TD align="left">    the average of the closing prices of the capital stock or equity
    interests representing the portion of the distribution
    applicable to one share of common stock over the first ten
    trading days commencing on and including the fifth trading day
    following the effective date of such distribution, or, if not
    traded on a national or regional securities exchange or
    over-the-counter market, the fair market value of the capital
    stock or equity interests representing the portion of the
    distribution applicable to one share of our common stock on such
    date as determined by our board of directors.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (5)&#160;<U>Cash Distributions</U>.&#160;If we make a
    distribution consisting exclusively of cash to all holders of
    the common stock, excluding (a)&#160;any cash dividend on the
    common stock to the extent that the aggregate cash dividend per
    share of the common stock does not exceed $0.15 in any fiscal
    quarter (the <B>&#147;dividend threshold amount&#148;</B>),
    (b)&#160;any cash that is distributed in a reorganization event
    (as described below) or as part of a &#147;spin-off&#148;
    referred to in clause&#160;(4) above, (c)&#160;any dividend or
    distribution in connection with our liquidation, dissolution or
    winding up, and (d)&#160;any consideration payable in connection
    with a tender or exchange offer made by us or any of our
    subsidiaries, then in each event, the conversion rate in effect
    immediately prior to the ex-date for such distribution will be
    multiplied by the following fraction:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</DIV>

<CENTER style="font-size: 1pt; width: 13%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=60 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>&#160;&#8722;&#160;DIV
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Where,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

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

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>&#160;=&#160;</TD>
    <TD align="left">
    the closing price per share of common stock on the ex-date.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    DIV&#160;=&#160;</TD>
    <TD align="left">
    the amount per share of common stock of the dividend or
    distribution, as determined pursuant to the following paragraph.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If an adjustment is required to be made as set forth in this
    clause as a result of a distribution (1)&#160;that is a
    regularly scheduled quarterly dividend, such adjustment would be
    based on the amount by which such dividend exceeds the dividend
    threshold amount or (2)&#160;that is not a regularly scheduled
    quarterly dividend, such adjustment would be based on the full
    amount of such distribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The dividend threshold amount is subject to adjustment on an
    inversely proportional basis whenever the conversion rate is are
    adjusted; <I>provided </I>that no adjustment will be made to the
    dividend threshold amount for any adjustment made to the
    conversion rate pursuant to this clause (5).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (6)&#160;<U>Self Tender Offers and Exchange Offers</U>.&#160;If
    we or any of our subsidiaries successfully complete a tender or
    exchange offer for our common stock where the cash and the value
    of any other consideration included in the payment per share of
    the common stock exceeds the closing price per share of the
    common stock on the trading day immediately succeeding the
    expiration of the tender or exchange offer, then the conversion
    rate in effect at the close of business on such immediately
    succeeding trading day will be multiplied by the following
    fraction:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    AC +
    (SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    x
    OS<SUP style="font-size: 85%; vertical-align: text-top">1</SUP>)
</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    OS<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    x
    SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Where,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

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

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>&#160;=&#160;</TD>
    <TD align="left">
    the closing price per share of common stock on the trading day
    immediately succeeding the expiration of the tender or exchange
    offer.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-34
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

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

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    OS<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>&#160;=&#160;
</TD>
    <TD align="left">    the number of shares of common stock outstanding immediately
    prior to the expiration of the tender or exchange offer,
    including any shares validly tendered and not withdrawn.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    OS<SUP style="font-size: 85%; vertical-align: text-top">1</SUP>&#160;=&#160;
</TD>
    <TD align="left">    the number of shares of common stock outstanding immediately
    after the expiration of the tender or exchange offer.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

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

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    AC&#160;=&#160;</TD>
    <TD align="left">
    the aggregate cash and fair market value of the other
    consideration payable in the tender or exchange offer, as
    determined by our board of directors.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event that we are, or one of our subsidiaries is,
    obligated to purchase shares of our common stock pursuant to any
    such tender offer or exchange offer, but we are, or such
    subsidiary is, permanently prevented by applicable law from
    effecting any such purchases, or all such purchases are
    rescinded, then the conversion rate shall be readjusted to be
    such conversion rate that would then be in effect if such tender
    offer or exchange offer had not been made.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (7)&#160;<U>Rights Plans</U>.&#160;To the extent that we have a
    rights plan in effect with respect to the common stock on any
    conversion date, upon conversion of any shares of the
    Series&#160;R Preferred Stock, you will receive, in addition to
    the shares of our common stock, the rights under the rights
    plan, unless, prior to such conversion date, the rights have
    separated from the shares of our common stock, in which case the
    conversion rate will be adjusted at the time of separation as if
    we made a distribution to all holders of the common stock as
    described in clause&#160;(4) above, subject to readjustment in
    the event of the expiration, termination or redemption of such
    rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, we may make such increases in the conversion rate
    as we deem advisable in order to avoid or diminish any income
    tax to holders of the common stock resulting from any dividend
    or distribution of the shares (or issuance of rights or warrants
    to acquire the shares) or from any event treated as such for
    income tax purposes or for any other reason.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a discussion of the tax consequences of a change in the
    conversion rate, see &#147;Certain U.S.&#160;Federal Income Tax
    Considerations&#160;&#151; U.S.&#160;Holders&#160;&#151;
    Adjustment of Conversion Rate&#148; and &#147;Certain
    U.S.&#160;Federal Income Tax Considerations&#160;&#151;
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holders&#160;&#151;</FONT>
    Dividends&#148; in this prospectus supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Adjustments to the conversion rate will be calculated to the
    nearest 1/10,000th&#160;of a share. No adjustment in the
    conversion rate will be required unless the adjustment would
    require an increase or decrease of at least one percent in the
    conversion rate. If any adjustment is not required to be made
    because it would not change the conversion rate by at least one
    percent, then the adjustment will be carried forward and taken
    into account in any subsequent adjustment; <I>provided </I>that
    on a mandatory conversion date or the effective date of a
    make-whole acquisition or a fundamental change, adjustments to
    the conversion rate will be made with respect to any such
    adjustment carried forward that has not been taken into account
    before such date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No adjustment to the conversion rate will be made if holders may
    participate in the transaction that would otherwise give rise to
    such adjustment as a result of holding the Series&#160;R
    Preferred Stock, without having to convert the Series&#160;R
    Preferred Stock, as if they held the full number of shares of
    common stock into which a share of the Series&#160;R Preferred
    Stock may then be converted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The applicable conversion rate will not be adjusted:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;upon the issuance of any shares of common stock
    pursuant to any present or future plan providing for the
    reinvestment of dividends or interest payable on the securities
    and the investment of additional optional amounts in common
    stock under any plan;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;upon the issuance of any shares of common stock or
    rights or warrants 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;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;upon the issuance of any shares of common stock
    pursuant to any option, warrant, right or exercisable,
    exchangeable or convertible security outstanding as of the date
    the shares of Series&#160;R Preferred Stock were first issued;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-35
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;for a change in the par value or no par value of the
    common stock;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;for accrued and unpaid dividends on the Series&#160;R
    Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will be required, as soon as practicable after the conversion
    rate is adjusted, to provide or cause to be provided written
    notice of the adjustment to the holders of shares of
    Series&#160;R Preferred Stock. We will also be required to
    deliver a statement setting forth in reasonable detail the
    method by which the adjustment to the conversion rate was
    determined and setting forth the revised conversion rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The <B>&#147;current market price&#148;</B> on any date is the
    average of the daily closing price per share of the common stock
    or other securities on each of the five consecutive trading days
    preceding the earlier of the day before the date in question and
    the day before the &#147;ex-date&#148; with respect to the
    issuance or distribution requiring such computation. The term
    <B>&#147;ex-date</B>,<B>&#148;</B> when used with respect to any
    such issuance or distribution, means the first date on which the
    common stock or other securities trade without the right to
    receive such issuance or distribution.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Fractional
    Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No fractional shares of our common stock will be issued to
    holders of the Series&#160;R Preferred Stock upon conversion. In
    lieu of any fractional shares of common stock otherwise issuable
    in respect of the aggregate number of shares of the
    Series&#160;R Preferred Stock of any holder that are converted,
    that holder will be entitled to receive an amount in cash
    (computed to the nearest cent) equal to the same fraction of the
    closing price per share of our common stock determined as of the
    second trading day immediately preceding the effective date of
    conversion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If more than one share of the Series&#160;R Preferred Stock is
    surrendered for conversion at one time by or for the same
    holder, the number of full shares of common stock issuable upon
    conversion thereof shall be computed on the basis of the
    aggregate number of shares of Series&#160;R Preferred Stock so
    surrendered.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Common
    Stock Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Reference is made to the &#147;Description of Capital
    Stock&#160;&#151; Common Stock&#148; in the accompanying
    prospectus for a description of the rights of holders of common
    stock to be delivered upon conversion of the Series&#160;R
    Preferred Stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Liquidation
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event that we voluntarily or involuntarily liquidate,
    dissolve or wind up, the holders of Series&#160;R Preferred
    Stock at the time outstanding will be entitled to receive
    liquidating distributions in the amount of $1,000 per share of
    Series&#160;R Preferred Stock, plus an amount equal to any
    declared but unpaid dividends thereon, out of assets legally
    available for distribution to our stockholders, before any
    distribution of assets is made to the holders of our common
    stock or any other junior securities. After payment of the full
    amount of such liquidating distributions, the holders of
    Series&#160;R Preferred Stock will not be entitled to any
    further participation in any distribution of assets by, and will
    have no right or claim to any of our remaining assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event that our assets available for distribution to
    stockholders upon any liquidation, dissolution or
    <FONT style="white-space: nowrap">winding-up</FONT>
    of our affairs, whether voluntary or involuntary, are
    insufficient to pay in full the amounts payable with respect to
    all outstanding shares of the Series&#160;R Preferred Stock and
    the corresponding amounts payable on any parity securities, the
    holders of Series&#160;R Preferred Stock and the holders of such
    other parity securities will share ratably in any distribution
    of our assets in proportion to the full respective liquidating
    distributions to which they would otherwise be respectively
    entitled.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For such purposes, our consolidation or merger with or into any
    other entity, the consolidation or merger of any other entity
    with or into us, or the sale of all or substantially all of our
    property or business, will not be deemed to constitute our
    liquidation, dissolution, or
    <FONT style="white-space: nowrap">winding-up.</FONT>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-36
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Voting
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as provided below, the holders of the Series&#160;R
    Preferred Stock will have no voting rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Washington law attaches mandatory voting rights to classes or
    series of shares that are affected by certain amendments to the
    articles of incorporation. The holders of the outstanding shares
    of a class or series are entitled to vote as a separate voting
    group if stockholder voting is otherwise required by Washington
    law and if the amendment would:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increase the aggregate number of authorized shares of the class
    or series;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    effect an exchange or reclassification of all or part of the
    issued and outstanding shares of the class or series into shares
    of another class or series, thereby adversely affecting the
    holders of the shares so exchanged or reclassified;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    change the rights, preferences, or limitations of all or part of
    the issued and outstanding shares of the class or series,
    thereby adversely affecting the holders of shares of the class
    or series;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    change all or part of the issued and outstanding shares of the
    class or series into a different number of shares of the same
    class or series, thereby adversely affecting the holders of
    shares of the class or series;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    create a new class or series of shares having rights or
    preferences with respect to dividends or other distributions or
    to dissolution that are, or upon designation by the board of
    directors may be, prior, superior, or substantially equal to the
    shares of the class or series;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increase the rights or preferences with respect to
    distributions, or on liquidations or dissolution, or the number
    of authorized shares of any class or series that, after giving
    effect to the amendment, has rights or preferences with respect
    to distributions, or on liquidations or dissolution that are, or
    upon designation by the board of directors may be prior,
    superior, or substantially equal to the shares of the class or
    series;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    limit or deny an existing pre-emptive right of all or part of
    the shares of the class or series;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    cancel or otherwise adversely affect rights to distributions
    that have accumulated but not yet been declared on all or part
    of the shares of the class or series;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    effect a redemption or cancellation of all or part of the shares
    of the class or series in exchange for cash or any other form of
    consideration other than shares of the corporation.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of the outstanding shares of a class or series of stock
    are entitled under Washington law to vote as a separate voting
    group with respect to a merger or share exchange if stockholder
    voting is otherwise required by Washington law and if, as a
    result of the merger or share exchange, holders of a part or all
    of the class or series would hold or receive:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    shares of any class or series of the surviving or acquiring
    corporation, or of any parent corporation of the surviving
    corporation, and either (i)&#160;that class or series has a
    greater number of authorized shares than the class or series
    held by the holders, or (ii)&#160;there is a change in the
    number of shares held by the holders or in the rights,
    preferences or limitations of the shares or the class or series
    and the change adversely affects the holders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    shares of any class or series of the surviving or acquiring
    corporation, or of any parent corporation of the surviving
    corporation, and such holders would be, as compared to their
    circumstances prior to the merger or exchange, adversely
    affected by the creation, existence, number of authorized shares
    or rights or preferences of another series that may be prior,
    superior or substantially equal to the shares to be received by
    such holders;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    cash or any other property other than shares of the surviving or
    acquiring corporation or of any parent corporation of the
    surviving corporation.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-37
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Washington law, if any class or series of shares is
    entitled to vote as a group in connection with an amendment of
    the articles of incorporation, a merger or a share exchange,
    such class or series and any other classes or series affected in
    a substantially similar way will vote together as a single
    voting group unless otherwise provided in the articles or by the
    board of directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Washington law permits these statutory voting rights to be
    expanded or, in certain circumstances, limited in the
    designation of the terms of a class or series. The statutory
    voting rights of the holders of Series&#160;R Preferred Stock
    will be expanded and, in certain circumstances, limited as
    described below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If after issuance of the Series&#160;R Preferred Stock we fail
    to pay, or declare and set aside for payment, full quarterly
    dividends on the Series&#160;R Preferred Stock or any other
    class or series of parity securities for six dividend periods,
    whether consecutive or not, or their equivalent, the authorized
    number of our directors will be increased by two. Subject to
    compliance with any requirement for regulatory approval of, or
    non-objection to, persons serving as directors, the holders of
    Series&#160;R Preferred Stock, voting together as a single and
    separate class with the holders of any outstanding parity
    securities having similar voting rights (the &#147;Voting Parity
    Securities&#148;), will have the right to elect two directors in
    addition to the directors then in office at our next annual
    meeting of stockholders. This right will continue at each
    subsequent annual meeting until we pay dividends in full on the
    Series&#160;R Preferred Stock and any Voting Parity Securities
    for three consecutive dividend periods or their equivalent and
    pay or declare and set aside for payment dividends in full for
    the fourth consecutive dividend period or its equivalent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The term of such additional directors will terminate, and the
    total number of directors will be decreased by two after we pay
    dividends in full for three consecutive dividend periods or
    their equivalent and declare and pay or set aside for payment
    dividends in full on the Series&#160;R Preferred Stock and any
    Voting Parity Securities for the fourth consecutive dividend
    period or its equivalent or, if earlier, upon the conversion of
    all of the shares of Series&#160;R Preferred Stock. After the
    term of such additional directors terminates, the holders of the
    Series&#160;R Preferred Stock will not be entitled to elect
    additional directors unless full quarterly dividends on the
    Series&#160;R Preferred Stock have again not been paid or
    declared and set aside for payment for six future dividend
    periods.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any additional director elected by the holders of the
    Series&#160;R Preferred Stock and the Voting Parity Securities
    may only be removed by the vote of the holders of record of the
    outstanding Series&#160;R Preferred Stock and Voting Parity
    Securities, voting together as a single and separate class, at a
    meeting of our stockholders called for that purpose. Any vacancy
    created by the removal of any such director may be filled only
    by the vote of the holders of the outstanding Series&#160;R
    Preferred Stock and Voting Parity Securities, voting together as
    a single and separate class.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    So long as any shares of Series&#160;R Preferred Stock are
    outstanding, the vote or consent of the holders of at least
    two-thirds of the shares of Series&#160;R Preferred Stock at the
    time outstanding, voting as a class with all other series of
    preferred stock ranking equally with the Series&#160;R Preferred
    Stock and entitled to vote thereon, given in person or by proxy,
    either in writing without a meeting or by vote at any meeting
    called for the purpose, will be necessary for effecting or
    validating any of the following actions, whether or not such
    approval is required by Washington law:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any amendment, alteration or repeal of any provision of our
    amended and restated articles of incorporation (including the
    articles of amendment creating the Series&#160;R Preferred
    Stock) or our bylaws that would alter or change the voting
    powers, preferences or special rights of the Series&#160;R
    Preferred Stock so as to affect them adversely;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any amendment or alteration of our amended and restated articles
    of incorporation to authorize or create, or increase the
    authorized amount of, any shares of, or any securities
    convertible into shares of, any class or series of our capital
    stock ranking prior to the Series&#160;R Preferred Stock in the
    payment of dividends or in the distribution of assets on any
    liquidation, dissolution or our
    <FONT style="white-space: nowrap">winding-up;&#160;or</FONT>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the consummation of a binding share exchange or reclassification
    involving the Series&#160;R Preferred Stock or a merger or
    consolidation of us with another entity, except that holders of
    Series&#160;R Preferred Stock will have no right to vote under
    this provision or otherwise under Washington law if in each case
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-38
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    (i)&#160;the Series&#160;R Preferred Stock remains outstanding
    or, in the case of any such merger or consolidation with respect
    to which we are not the surviving or resulting entity, is
    converted into or exchanged for preference securities of the
    surviving or resulting entity or its ultimate parent, that is an
    entity organized and existing under the laws of the United
    States of America, any state thereof or the District of
    Columbia, and (ii)&#160;such Series&#160;R Preferred Stock
    remaining outstanding or such preference securities, as the case
    may be, have such rights, preferences, privileges and voting
    powers, taken as a whole, as are not materially less favorable
    to the holders thereof than the rights, preferences, privileges
    and voting powers of the Series&#160;R Preferred Stock, taken as
    a whole;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>provided, however</I>, that any increase in the amount of the
    authorized or issued Series&#160;R Preferred Stock or authorized
    preferred stock or any securities convertible into preferred
    stock or the creation and issuance, or an increase in the
    authorized or issued amount, of other series of preferred stock
    or any securities convertible into preferred stock ranking
    equally with
    <FONT style="white-space: nowrap">and/or</FONT>
    junior to the Series&#160;R Preferred Stock with respect to the
    payment of dividends (whether such dividends are cumulative or
    non-cumulative)
    <FONT style="white-space: nowrap">and/or</FONT> the
    distribution of assets upon our liquidation, dissolution or
    <FONT style="white-space: nowrap">winding-up</FONT>
    will not be deemed to adversely affect the voting powers,
    preferences or special rights of the Series&#160;R Preferred
    Stock and, notwithstanding any provision of Washington law,
    holders of Series&#160;R Preferred Stock will have no right to
    vote on such an increase.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If an amendment, alteration, repeal, share exchange,
    reclassification, merger or consolidation described above would
    adversely affect one or more but not all series of voting
    preferred stock (including the Series&#160;R Preferred Stock for
    this purpose), then only those series affected and entitled to
    vote shall vote as a class in lieu of all such series of
    preferred stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The foregoing voting provisions will not apply if, at or prior
    to the time when the act with respect to which such vote would
    otherwise be required shall be effected, all outstanding shares
    of Series&#160;R Preferred Stock shall have been converted into
    shares of our common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Miscellaneous</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will at all times reserve and keep available out of the
    authorized and unissued shares of our common stock or shares
    held in the treasury by us, solely for issuance upon the
    conversion of the Series&#160;R Preferred Stock, that number of
    shares of common stock as shall from time to time be issuable
    upon the conversion of all the Series&#160;R Preferred Stock
    then outstanding, together with a number of shares equal to the
    unused portion of the share cap amount. Any shares of the
    Series&#160;R Preferred Stock converted into shares of our
    common stock or otherwise reacquired by us shall resume the
    status of authorized and unissued preferred shares, undesignated
    as to series, and shall be available for subsequent issuance.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transfer
    Agent, Registrar, Paying Agent and Conversion Agent</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mellon Investor Services LLC will act as transfer agent,
    registrar and paying agent for the payment of dividends for the
    Series&#160;R Preferred Stock and the conversion agent for the
    conversion of the Series&#160;R Preferred Stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Title</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We and the transfer agent, registrar, paying agent and
    conversion agent may treat the registered holder of the
    Series&#160;R Preferred Stock as the absolute owner of the
    Series&#160;R Preferred Stock for the purpose of making payment
    and settling the related conversions and for all other purposes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Book-Entry,
    Delivery and Form</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Depository Trust&#160;Company will act as securities
    depositary for the Series&#160;R Preferred Stock. The
    Series&#160;R Preferred Stock will be issued only as fully
    registered securities registered in the name of Cede&#160;&#038;
    Co., the depositary&#146;s nominee. One or more fully registered
    global security certificates, representing the total aggregate
    number of shares of the Series&#160;R Preferred Stock, will be
    issued and deposited with or on behalf of
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-39
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the depositary and will bear a legend regarding the restrictions
    on exchanges and registration of transfer referred to below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The laws of some jurisdictions require that some purchasers of
    securities take physical delivery of securities in definitive
    form. Those laws may impair the ability to transfer beneficial
    interests in the Series&#160;R Preferred Stock so long as the
    Series&#160;R Preferred Stock is represented by global security
    certificates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The depositary is a limited-purpose trust company organized
    under the New York Banking Law, a &#147;banking
    organization&#148; within the meaning of the New York Banking
    Law, a member of the Federal Reserve System, a &#147;clearing
    corporation&#148; within the meaning of the New York Uniform
    Commercial Code and a &#147;clearing agency&#148; registered
    pursuant to the provisions of Section&#160;17A of the Securities
    Exchange Act of 1934.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The depositary holds securities that its participants deposit
    with the depositary. The depositary also facilitates the
    settlement among participants of securities transactions,
    including transfers and pledges, in deposited securities through
    electronic computerized book-entry changes in participants&#146;
    accounts, thus eliminating the need for physical movement of
    securities certificates. Direct participants include securities
    brokers and dealers, banks, trust companies, clearing
    corporations and certain other organizations. The depositary is
    owned by a number of its direct participants and by the New York
    Stock Exchange, the American Stock Exchange, Inc. and the
    Financial Industry Regulatory Authority, Inc., collectively
    referred to as participants. Access to the depositary system is
    also available to others, including securities brokers and
    dealers, bank and trust companies that clear transactions
    through or maintain a direct or indirect custodial relationship
    with a direct participant, collectively referred to as indirect
    participants. The rules applicable to the depositary and its
    participants are on file with the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as otherwise required by applicable law, no shares of the
    Series&#160;R Preferred Stock represented by global security
    certificates may be exchanged in whole or in part for the
    Series&#160;R Preferred Stock registered, and no transfer of
    global security certificates will be made in whole or in part
    for the Series&#160;R Preferred Stock registered, and no
    transfer of global security certificates in whole or in part may
    be registered, in the name of any person other than the
    depositary or any nominee of the depositary, unless (i)&#160;the
    depositary has notified us that it is unwilling or unable to
    continue as depositary for the global security certificates and
    we do not appoint a qualified replacement within 90&#160;days;
    (ii)&#160;the depositary has ceased to be qualified to act as
    such and we do not appoint a qualified replacement within
    90&#160;days; or (iii)&#160;we decide to discontinue the use of
    book-entry transfer through the depositary (or any successor
    depositary). All of the Series&#160;R Preferred Stock
    represented by one or more global security certificates or any
    portion of them will be registered in those names as the
    depositary may direct.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As long as the depositary or its nominee is the registered owner
    of the global security certificates, the depositary or that
    nominee will be considered the sole owner and holder of the
    global security certificates and all of the Series&#160;R
    Preferred Stock represented by those certificates for all
    purposes under the Series&#160;R Preferred Stock.
    Notwithstanding the foregoing, nothing herein shall prevent us
    or any of our agents or the registrar or any of its agents from
    giving effect to any written certification, proxy or other
    authorization furnished by the depositary or impair, as between
    the depositary and its members or participants, the operation of
    customary practices of the depositary governing the exercise of
    the rights of a holder of a beneficial interest in any global
    security certificates. The depositary or any nominee of the
    depositary may grant proxies or otherwise authorize any person
    to take any action that the depositary or such nominee is
    entitled to take pursuant to the Series&#160;R Preferred Stock,
    the articles of amendment of the articles of incorporation,
    which contains the terms of the Series&#160;R Preferred Stock,
    or the articles of incorporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except in the limited circumstances referred to above or as
    otherwise required by applicable law, owners of beneficial
    interests in global security certificates will not be entitled
    to have the global security certificates or the Series&#160;R
    Preferred Stock represented by those certificates registered in
    their names, will not receive or be entitled to receive physical
    delivery of the Series&#160;R Preferred Stock certificates in
    exchange and will not be considered to be owners or holders of
    the global security certificates or any of the Series&#160;R
    Preferred Stock represented by those certificates for any
    purpose under the Series&#160;R Preferred Stock. All payments on
    the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-40
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Series&#160;R Preferred Stock represented by the global security
    certificates and all related transfers and deliveries of common
    stock will be made to the depositary or its nominee as their
    holder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ownership of beneficial interests in the global security
    certificates will be limited to participants or persons that may
    hold beneficial interests through institutions that have
    accounts with the depositary or its nominee, including Euroclear
    Bank S.A./N.V., as the operator of the Euroclear System, and
    Clearstream Banking, <I>soci&#233;t&#233; anonyme</I>. Ownership
    of beneficial interests in global security certificates will be
    shown only on, and the transfer of those ownership interests
    will be effected only through, records maintained by the
    depositary or its nominee with respect to participants&#146;
    interests or by the participant with respect to interests of
    persons held by the participants on their behalf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Procedures for conversion on the conversion date will be
    governed by arrangements among the depositary, participants and
    persons that may hold beneficial interests through participants
    designed to permit the settlement without the physical movement
    of certificates. Payments, transfers, deliveries, exchanges and
    other matters relating to beneficial interests in global
    security certificates may be subject to various policies and
    procedures adopted by the depositary from time to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Neither we nor any of the agents will have any responsibility or
    liability for any aspect of the depositary&#146;s or any
    participant&#146;s records relating to, or for payments made on
    account of, beneficial interests in global security
    certificates, or for maintaining, supervising or reviewing any
    of the depositary&#146;s records or any participant&#146;s
    records relating to those beneficial ownership interests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The information in this section concerning the depositary and
    its book-entry system has been obtained from sources that we
    believe to be reliable, but we do not take responsibility for
    its accuracy.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Replacement
    of Series&#160;R Preferred Stock Certificates</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If physical certificates are issued, we will replace any
    mutilated certificate at your expense upon surrender of that
    certificate to the transfer agent. We will replace certificates
    that become destroyed, stolen or lost at your expense upon
    delivery to us and the transfer agent of satisfactory evidence
    that the certificate has been destroyed, stolen or lost,
    together with any indemnity that may be required by the transfer
    agent and us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    However, we are not required to issue any certificates
    representing the Series&#160;R Preferred Stock on or after the
    applicable conversion date. In place of the delivery of a
    replacement certificate following the applicable conversion
    date, the transfer agent, upon delivery of the evidence and
    indemnity described above, will deliver the shares of common
    stock pursuant to the terms of the Series&#160;R Preferred Stock
    formerly evidenced by the certificate.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-41
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "DESCRIPTION OF OTHER PREFERRED STOCK" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='107'></A><B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF OTHER PREFERRED STOCK</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following description of our preferred stock is a summary of
    the material terms of our Amended and Restated Articles of
    Incorporation (<B>&#147;articles of incorporation&#148;</B>).
    Reference is made to the more detailed provisions of, and such
    descriptions are qualified in their entirety by reference to,
    our articles of incorporation, which are incorporated by
    reference in the registration statement that we filed with the
    SEC for this offering. You should read our articles of
    incorporation for the provisions that are important to you.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our articles of incorporation currently authorize
    10,000,000&#160;shares of preferred stock, no par value. On
    September&#160;30, 2007, we had outstanding 500&#160;shares of
    Series&#160;K Preferred Stock, no par value and liquidation
    preference $1,000,000 per share. In addition, we have authorized
    the issuance of, and reserved shares with respect to, our
    Series&#160;I Preferred Stock, Series&#160;J Preferred Stock,
    Series&#160;L Preferred Stock, Series&#160;M Preferred Stock and
    Series&#160;N Preferred Stock, as well as shares of preferred
    stock contemplated by our Rights Agreement, dated as of
    December&#160;20, 2000, entered by and between us and Mellon
    Investor Services LLC (the <B>&#147;Rights Agreement&#148;</B>).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Series&#160;R Preferred Stock will rank, with respect to the
    payment of dividends and distributions upon liquidation,
    dissolution or
    <FONT style="white-space: nowrap">winding-up,</FONT>
    on a parity with our outstanding Series&#160;K Preferred Stock
    and any Series&#160;I Preferred Stock, Series&#160;J Preferred
    Stock, Series&#160;L Preferred Stock, Series&#160;M Preferred
    Stock and Series&#160;N Preferred Stock we may issue in the
    future and each other class or series of preferred stock we may
    issue in the future the terms of which expressly provide that
    such class or series will rank on a parity with the
    Series&#160;R Preferred Stock as to dividend rights and rights
    on liquidation, winding up and dissolution of Washington Mutual.
    See &#147;Description of Series&#160;R Preferred
    Stock&#160;&#151; General.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of this description, <B>&#147;Exchange
    Event&#148;</B> means (i)&#160;Washington Mutual Bank becoming
    &#147;undercapitalized&#148; under the OTS&#146; &#147;prompt
    corrective action&#148; regulations, (ii)&#160;Washington Mutual
    Bank being placed into conservatorship or receivership or
    (iii)&#160;the OTS, in its sole discretion, directing such
    exchange in anticipation of Washington Mutual Bank becoming
    &#147;undercapitalized&#148; in the near term or taking
    supervisory action that limits the payment of dividends, as
    applicable, by Washington Mutual Bank, and in connection
    therewith, directs such exchange.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of this description,
    <B><FONT style="white-space: nowrap">&#147;3-Month</FONT>
    USD LIBOR&#148; </B>means, with respect to any dividend period,
    a rate determined on the basis of the offered rates for
    three-month U.S.&#160;dollar deposits, commencing on the first
    day of such dividend period, which appears on Reuters Screen
    LIBOR01 Page as of approximately 11:00&#160;a.m., London time,
    on the LIBOR determination date for such dividend period. If on
    any LIBOR determination date no rate appears on Reuters Screen
    LIBOR01 Page as of approximately 11:00&#160;a.m., London time,
    we or an affiliate of ours on our behalf will on such LIBOR
    determination date request four major reference banks in the
    London interbank market selected by us to provide us with a
    quotation of the rate at which three-month deposits in
    U.S.&#160;dollars, commencing on the first day of such dividend
    period, are offered by them to prime banks in the London
    interbank market as of approximately 11:00&#160;a.m., London
    time, on such LIBOR determination date and in a principal amount
    equal to that which is representative for a single transaction
    in such market at such time. If at least two such quotations are
    provided,
    <FONT style="white-space: nowrap">3-Month</FONT> USD
    LIBOR for such dividend period will be the arithmetic mean
    (rounded upward if necessary to the nearest .00001 of 1%) of
    such quotations as calculated by us. If fewer than two
    quotations are provided,
    <FONT style="white-space: nowrap">3-Month</FONT> USD
    LIBOR for such dividend period will be the arithmetic mean
    (rounded upward if necessary to the nearest .00001 of 1%) of the
    rates quoted as of approximately 11:00&#160;am., New York time,
    on the first day of such dividend period by three major banks in
    New York City, New York selected by us for loans in
    U.S.&#160;dollars to leading European banks, for a three-month
    period commencing on the first day of such dividend period and
    in a principal amount of not less than $1,000,000.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Series&#160;I
    Preferred Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to an issuance by Washington Mutual Preferred Funding
    Trust&#160;I of $1,250,000,000 of Fixed-to-Floating Rate
    Perpetual Non-cumulative Trust&#160;Securities (the
    <B>&#147;Series&#160;I Trust&#160;Securities&#148;</B>), if so
    directed by the OTS following the occurrence of an Exchange
    Event (as defined above), each Series&#160;I Trust&#160;Security
    will be automatically exchanged for a like amount of depositary
    shares each representing 1/1,000th&#160;of a share of
</DIV>

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    <BR>
    S-42
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    our Series&#160;I Perpetual Non-cumulative Fixed-to-Floating
    Rate Preferred Stock, no par value and liquidation preference
    $1,000,000 per share (the <B>&#147;Series&#160;I Preferred
    Stock&#148;</B>). The number of shares constituting the
    Series&#160;I Preferred Stock is 1,250.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After the issuance of the Series&#160;I Preferred Stock, holders
    of shares of the Series&#160;I Preferred Stock will be entitled
    to receive, when, as and if declared by the board of directors,
    non-cumulative dividends payable in arrears quarterly on
    March&#160;15, June&#160;15, September 15 and December 15 of
    each year. If issued prior to the day immediately preceding
    March&#160;15, 2011, from such date of issuance to
    March&#160;15, 2011 dividends will be, for each outstanding
    share of Series&#160;I Preferred Stock, payable at an annual
    rate of 6.534% on the per share liquidation preference of the
    Series&#160;I Preferred Stock. From the later of March&#160;15,
    2011 and the date of issuance of the Series&#160;I Preferred
    Stock, dividends will be, for each outstanding share of the
    Series&#160;I Preferred Stock, payable at an annual rate on the
    per share liquidation preference of the Series&#160;I Preferred
    Stock equal to
    <FONT style="white-space: nowrap">3-Month</FONT> USD
    LIBOR (as defined above) for the related dividend period plus
    1.4825%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Series&#160;I Preferred Stock may be redeemed in whole or in
    part, at our option, under certain circumstances, prior to
    March&#160;15, 2011, at specified redemption prices plus any
    declared but unpaid dividends. The Series&#160;I Preferred Stock
    may be redeemed in whole or in part at our option, at any time,
    or from time to time, on or after March&#160;15, 2011, at a
    redemption price of $1,000,000 per share, plus any declared but
    unpaid dividends. The holders of the Series&#160;I Preferred
    Stock may not require us to redeem the Series&#160;I Preferred
    Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as required by law, and as provided in this paragraph,
    holders of Series&#160;I Preferred Stock have no voting rights.
    If after the issuance of the Series&#160;I Preferred Stock we
    fail to pay full dividends on the Series&#160;I Preferred Stock
    for six dividend periods, the holders of Series&#160;I Preferred
    Stock, acting as a class with any other parity securities having
    similar voting rights, including the Series&#160;R Preferred
    Stock offered by this prospectus supplement, will have the right
    to elect two directors to our board of directors. The terms of
    office of these directors will end when we have paid or set
    aside for payment full dividends for four consecutive dividend
    periods.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Series&#160;J
    Preferred Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to an issuance by Washington Mutual Preferred Funding
    (Cayman) I Ltd. of $750,000,000 of 7.25% Rate Perpetual
    Non-cumulative Preferred Securities (the <B>&#147;WaMu Cayman
    Preferred Securities&#148;</B>), if so directed by the OTS
    following the occurrence of an Exchange Event, each WaMu Cayman
    Preferred Security will be automatically exchanged for a like
    amount of depositary shares representing 1/1,000th&#160;of a
    share of our Series&#160;J Perpetual Non-cumulative Fixed Rate
    Preferred Stock, no par value and liquidation preference
    $1,000,000 per&#160;share (the <B>&#147;Series&#160;J Preferred
    Stock&#148;</B>). The number of shares constituting the
    Series&#160;J Preferred Stock is 750.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After the issuance of the Series&#160;J Preferred Stock, holders
    of shares of the Series&#160;J Preferred Stock will be entitled
    to receive, when, as and if declared by the board of directors,
    non-cumulative dividends payable in arrears quarterly on
    March&#160;15, June&#160;15, September 15 and December 15 of
    each year. Dividends will be, for each outstanding share of
    Series&#160;J Preferred Stock, payable at an annual rate of
    7.25% on the per share liquidation preference.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Series&#160;J Preferred Stock may be redeemed in whole or in
    part, at our option, under certain circumstances, prior to
    March&#160;15, 2011, at specified redemption prices plus any
    declared but unpaid dividends. The Series&#160;J Preferred Stock
    may be redeemed in whole or in part, at our option, at any time,
    or from time to time, on or after March&#160;15, 2011, at a
    redemption price of $1,000,000 per share, plus any declared but
    unpaid dividends. The holders of the Series&#160;J Preferred
    Stock may not require us to redeem the Series&#160;J Preferred
    Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as required by law, and as provided in this paragraph,
    holders of Series&#160;J Preferred Stock have no voting rights.
    If after the issuance of the Series&#160;J Preferred Stock we
    fail to pay full dividends on the Series&#160;J Preferred Stock
    for six dividend periods, the holders of Series&#160;J Preferred
    Stock, acting as a class with any other parity securities having
    similar voting rights, including the Series&#160;R Preferred
    Stock offered by this
</DIV>

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    <BR>
    S-43
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    prospectus supplement, will have the right to elect two
    directors to our board of directors. The terms of office of
    these directors will end when we have paid or set aside for
    payment full dividends for four consecutive dividend periods.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Series&#160;K
    Preferred Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;18, 2006, we issued 20,000,000 depositary
    shares, each representing a 1/40,000th&#160;ownership interest
    in a share of our Series&#160;K Perpetual Non-Cumulative
    Floating Rate Preferred Stock, liquidation preference $1,000,000
    per share (equivalent to $25 per depositary share), referred to
    in this Prospectus Supplement as the <B>&#147;Series&#160;K
    Preferred Stock&#148;</B>. Each holder of depositary shares is
    entitled to similar rights and preferences (including as to
    dividend, voting, redemption and liquidation rights) as the
    depositary shares representing Series&#160;R Preferred Stock
    offered by this prospectus supplement. The number of shares
    constituting the Series&#160;K Preferred Stock is 500.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of shares of the Series&#160;K Preferred Stock are
    entitled to receive non-cumulative dividends payable in arrears
    quarterly on March&#160;15, June&#160;15, September 15 and
    December 15 of each year. Dividends are, for each outstanding
    share of Series&#160;K Preferred Stock, payable at an annual
    rate on the per share liquidation preference equal to the
    greater of
    <FONT style="white-space: nowrap">(i)&#160;3-Month</FONT>
    USD LIBOR (as defined above) for the related dividend period
    plus 0.70% or (ii)&#160;four percent (4.00%).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Series&#160;K Preferred Stock may be redeemed in whole or in
    part, at our option, at any time, or from time to time, on or
    after September&#160;15, 2011, at a redemption price of
    $1,000,000 per share, plus any declared but unpaid dividends.
    The holders of the Series&#160;K Preferred Stock may not require
    us to redeem the Series&#160;K Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as required by law, holders of Series&#160;K Preferred
    Stock have no voting rights except with respect to certain
    fundamental changes in the terms of the Series&#160;K Preferred
    Stock and certain other matters. In addition, if we fail to pay
    full dividends on the Series&#160;K Preferred Stock for six
    dividend periods, the holders of Series&#160;K Preferred Stock,
    acting as a class with any other parity securities having
    similar voting rights, including the Series&#160;R Preferred
    Stock offered by this prospectus supplement, will have the right
    to elect two directors to our board of directors. The terms of
    office of these directors will end when we have paid or set
    aside for payment full dividends for four consecutive dividend
    periods.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Series&#160;L
    Preferred Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to an issuance by Washington Mutual Preferred Funding
    Trust&#160;II of $500,000,000 of Fixed-to-Floating Rate
    Perpetual Non-cumulative Trust&#160;Securities (the
    <B>&#147;Series&#160;L Trust&#160;Securities&#148;</B>), if so
    directed by the OTS following the occurrence of an Exchange
    Event, each Series&#160;L Trust&#160;Security will be
    automatically exchanged for a like amount of depositary shares
    each representing 1/1,000th&#160;of a share of our Series&#160;L
    Perpetual Non-cumulative Fixed-to-Floating Rate Preferred Stock,
    no par value and liquidation preference $1,000,000 per share
    (the <B>&#147;Series&#160;L Preferred Stock&#148;</B>). The
    number of shares constituting the Series&#160;L Preferred Stock
    will be 500.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After the issuance of the Series&#160;L Preferred Stock, holders
    of shares of the Series&#160;L Preferred Stock will be entitled
    to receive, when, as and if declared by the board of directors,
    non-cumulative dividends payable in arrears quarterly on
    March&#160;15, June&#160;15, September 15 and December 15 of
    each year. If issued prior to the day immediately preceding
    December&#160;15, 2016, from such date of issuance to
    December&#160;15, 2016 dividends will be, for each outstanding
    share of Series&#160;L Preferred Stock, payable at an annual
    rate of 6.665% on the per share liquidation preference of the
    Series&#160;L Preferred Stock. From the later of
    December&#160;15, 2016 and the date of issuance of the
    Series&#160;L Preferred Stock, dividends will be, for each
    outstanding share of the Series&#160;L Preferred Stock, payable
    at an annual rate on the per share liquidation preference of the
    Series&#160;L Preferred Stock equal to
    <FONT style="white-space: nowrap">3-Month</FONT> USD
    LIBOR (as defined above) for the related dividend period plus
    1.7925%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Series&#160;L Preferred Stock may be redeemed in whole or in
    part, at our option, under certain circumstances, at specified
    redemption prices plus any declared but unpaid dividends. The
    holders of the Series&#160;L Preferred Stock may not require us
    to redeem the Series&#160;L Preferred Stock.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-44
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as required by law, holders of Series&#160;L Preferred
    Stock have no voting rights except with respect to certain
    fundamental changes in the terms of the Series&#160;L Preferred
    Stock and certain other matters. In addition, if after the
    issuance of the Series&#160;L Preferred Stock we fail to pay
    full dividends on the Series&#160;L Preferred Stock for six
    dividend periods, the holders of Series&#160;L Preferred Stock,
    acting as a class with any other parity securities having
    similar voting rights, including the Series&#160;P Preferred
    Stock offered by this prospectus supplement, will have the right
    to elect two directors to our board of directors. The terms of
    office of these directors will end when we have paid or set
    aside for payment full dividends for four consecutive dividend
    periods.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Series&#160;M
    Preferred Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to an issuance by Washington Mutual Preferred Funding
    Trust&#160;III of $500,000,000 of Fixed-to-Floating Rate
    Perpetual Non-cumulative Trust&#160;Securities (the
    <B>&#147;Series&#160;M Trust&#160;Securities&#148;</B>), if so
    directed by the OTS following the occurrence of an Exchange
    Event, each Series&#160;M Trust&#160;Security will be
    automatically exchanged for a like amount of depositary shares
    each representing 1/1,000th&#160;of a share of our Series&#160;M
    Perpetual Non-cumulative Fixed-to-Floating Rate Preferred Stock,
    no par value and liquidation preference $1,000,000 per share
    (the <B>&#147;Series&#160;M Preferred Stock&#148;</B>). The
    number of shares constituting the Series&#160;M Preferred Stock
    is 500.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After the issuance of the Series&#160;M Preferred Stock, holders
    of shares of the Series&#160;M Preferred Stock will be entitled
    to receive, when, as and if declared by the board of directors,
    non-cumulative dividends payable in arrears quarterly on
    March&#160;15, June&#160;15, September 15 and December 15 of
    each year. If issued prior to the day immediately preceding
    June&#160;15, 2012, from such date of issuance to June&#160;15,
    2012 dividends will be, for each outstanding share of
    Series&#160;M Preferred Stock, payable at an annual rate of
    6.895% on the per share liquidation preference of the
    Series&#160;M Preferred Stock. From the later of June&#160;15,
    2012 and the date of issuance of the Series&#160;M Preferred
    Stock, dividends will be, for each outstanding share of the
    Series&#160;M Preferred Stock, payable at an annual rate on the
    per share liquidation preference of the Series&#160;M Preferred
    Stock equal to
    <FONT style="white-space: nowrap">3-Month</FONT> USD
    LIBOR (as defined above) for the related dividend period plus
    1.755%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Series&#160;M Preferred Stock may be redeemed in whole or in
    part, at our option, under certain circumstances, at specified
    redemption prices plus any declared but unpaid dividends. The
    holders of the Series&#160;M Preferred Stock may not require us
    to redeem the Series&#160;M Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as required by law, holders of Series&#160;M Preferred
    Stock have no voting rights except with respect to certain
    fundamental changes in the terms of the Series&#160;M Preferred
    Stock and certain other matters. In addition, if after the
    issuance of the Series&#160;M Preferred Stock we fail to pay
    full dividends on the Series&#160;M Preferred Stock for six
    dividend periods, the holders of Series&#160;M Preferred Stock,
    acting as a class with any other parity securities having
    similar voting rights including the Series&#160;P Preferred
    Stock offered by this prospectus supplement, will have the right
    to elect two directors to our board of directors. The terms of
    office of these directors will end when we have paid or set
    aside for payment full dividends for four consecutive dividend
    periods.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Series&#160;N
    Preferred Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to an issuance by Washington Mutual Preferred Funding
    Trust&#160;IV of $1,000,000,000 of Fixed-to-Floating Rate
    Perpetual Non-cumulative Trust&#160;Securities (the
    <B>&#147;Series&#160;N Trust&#160;Securities&#148;</B>), if so
    directed by the OTS following the occurrence of an Exchange
    Event, each Series&#160;N Trust&#160;Security will be
    automatically exchanged for a like amount of depositary shares
    each representing 1/1,000th&#160;of a share of our Series&#160;N
    Perpetual Non-cumulative Fixed-to-Floating Rate Preferred Stock,
    no par value and liquidation preference $1,000,000 per share
    (the <B>&#147;Series&#160;N Preferred Stock&#148;</B>). The
    number of shares constituting the Series&#160;N Preferred Stock
    is 1,000.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After the issuance of the Series&#160;N Preferred Stock, holders
    of shares of the Series&#160;N Preferred Stock will be entitled
    to receive, when, as and if declared by the board of directors,
    non-cumulative dividends payable in arrears quarterly on
    March&#160;15, June&#160;15, September 15 and December 15 of
    each year. If issued prior to the day immediately preceding
    December&#160;15, 2017, from such date of issuance to
    December&#160;15, 2017 dividends
</DIV>

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    <BR>
    S-45
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    will be, for each outstanding share of Series&#160;N Preferred
    Stock, payable at an annual rate of 9.75% on the per share
    liquidation preference of the Series&#160;N Preferred Stock.
    From the later of December&#160;15, 2017 and the date of
    issuance of the Series&#160;N Preferred Stock, dividends will
    be, for each outstanding share of the Series&#160;N Preferred
    Stock, payable at an annual rate on the per share liquidation
    preference of the Series&#160;N Preferred Stock equal to
    <FONT style="white-space: nowrap">3-Month</FONT> USD
    LIBOR (as defined above) for the related dividend period plus
    4.723%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Series&#160;N Preferred Stock may be redeemed in whole or in
    part, at our option, under certain circumstances, at specified
    redemption prices plus any declared but unpaid dividends. The
    holders of the Series&#160;N Preferred Stock may not require us
    to redeem the Series&#160;N Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as required by law, holders of Series&#160;N Preferred
    Stock have no voting rights except with respect to certain
    fundamental changes in the terms of the Series&#160;N Preferred
    Stock and certain other matters. In addition, if after the
    issuance of the Series&#160;N Preferred Stock we fail to pay
    full dividends on the Series&#160;N Preferred Stock for six
    dividend periods, the holders of Series&#160;N Preferred Stock,
    acting as a class with any other parity securities having
    similar voting rights, including the Series&#160;R Preferred
    Stock offered by this prospectus supplement, will have the right
    to elect two directors to our board of directors. The terms of
    office of these directors will end when we have paid or set
    aside for payment full dividends for four consecutive dividend
    periods.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Series&#160;RP
    Preferred Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have adopted a shareholder rights plan which provides that
    one right to purchase 1/1,000th&#160;of a share of our
    Series&#160;RP Preferred Stock (the <B>&#147;Rights&#148;</B>)
    is attached to each outstanding share of our common stock. The
    Rights have certain anti-takeover effects and are intended to
    discourage coercive or unfair takeover tactics and to encourage
    any potential acquiror to negotiate a price fair to all
    shareholders. The number of shares constituting our
    Series&#160;RP Preferred Stock is 700,000. See &#147;Description
    of Capital Stock&#160;&#151; Common Stock&#160;&#151;
    Shareholder Rights Plan&#148; in the accompanying prospectus.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-46
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "CLEARANCE AND SETTLEMENT" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='109'></A><B><FONT style="font-family: 'Times New Roman', Times">CLEARANCE
    AND SETTLEMENT</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Depository Trust&#160;Company (&#147;<B>DTC</B>&#148;) will
    act as securities depositary for all of the shares of
    Series&#160;R Preferred Stock. We will issue the Series&#160;R
    Preferred Stock only as fully-registered securities registered
    in the name of Cede&#160;&#038; Co., DTC&#146;s nominee. We will
    issue and deposit with DTC one or more fully-registered global
    certificates for the shares of Series&#160;R Preferred Stock
    representing, in the aggregate, the total number of the shares
    of Series&#160;R Preferred Stock to be sold in this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    DTC has advised us that it is a limited purpose trust company
    organized under the New York Banking Law, a &#147;banking
    organization&#148; within the meaning of the New York Banking
    Law, a member of the Federal Reserve System, a &#147;clearing
    corporation&#148; within the meaning of the New York Uniform
    Commercial Code, and a &#147;clearing agency&#148; registered
    under the provisions of Section&#160;17A of the Exchange Act.
    DTC holds securities that its participants deposit with DTC. DTC
    also facilitates the settlement among participants of securities
    transactions, like transfers and pledges, in deposited
    securities through electronic computerized book-entry changes in
    the participants&#146; accounts, eliminating in this manner the
    need for physical movement of securities certificates. Direct
    participants include securities brokers and dealers, banks,
    trust companies, clearing corporations and other organizations.
    DTC is owned by a number of its direct participants and by the
    New&#160;York Stock Exchange, Inc., the American Stock Exchange,
    Inc. and the Financial Industry Regulatory Authority, Inc.
    Others, like securities brokers and dealers, banks and trust
    companies that clear through or maintain custodial relationships
    with direct participants, either directly or indirectly, are
    indirect participants and also have access to the DTC system.
    The rules applicable to DTC and its participants are on file
    with the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Purchases of shares of Series&#160;R Preferred Stock within the
    DTC system must be made by or through direct participants, who
    will receive a credit for the shares of Series&#160;R Preferred
    Stock on DTC&#146;s records. The ownership interest of each
    actual purchaser of each share of Series&#160;R Preferred Stock
    is in turn to be recorded on the direct and indirect
    participants&#146; records. DTC will not send written
    confirmation to beneficial owners of their purchases, but
    beneficial owners are expected to receive written confirmations
    providing details of the transactions, as well as periodic
    statements of their holdings, from the direct or indirect
    participants through which the beneficial owners purchased
    shares of Series&#160;R Preferred Stock. Transfers of ownership
    interests in the shares of Series&#160;R Preferred Stock are to
    be accomplished by entries made on the books of participants
    acting on behalf of beneficial owners. Beneficial owners will
    not receive certificates representing their ownership interests
    in shares of Series&#160;R Preferred Stock, unless the
    book-entry system for the shares of Series&#160;R Preferred
    Stock is discontinued.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All securities deposited by direct participants with DTC are
    registered in the name of DTC&#146;s nominee, Cede&#160;&#038;
    Co., or such other name as may be requested by an authorized
    representative of DTC. The deposit of securities with DTC and
    their registration in the name of Cede&#160;&#038; Co. or
    another DTC nominee do not effect any change in beneficial
    ownership.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    DTC has no knowledge of the actual beneficial owners of the
    Series&#160;R Preferred Stock. DTC&#146;s records reflect only
    the identity of the direct participants to whose accounts the
    Series&#160;R Preferred Stock is credited, which may or may not
    be the beneficial owners. The participants will remain
    responsible for keeping account of their holdings on behalf of
    their customers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Conveyance of notices and other communications by DTC to direct
    participants, by direct participants to indirect participants,
    and by direct participants and indirect participants to
    beneficial owners and the voting rights of direct participants,
    indirect participants and beneficial owners, subject to any
    statutory or regulatory requirements as is in effect from time
    to time, will be governed by arrangements among them.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will send redemption notices to Cede&#160;&#038; Co. as the
    registered holder of the shares of Series&#160;R Preferred
    Stock. If less than all of these shares of Series&#160;R
    Preferred Stock are redeemed, DTC&#146;s current practice is to
    determine by lot the amount of the interest of each direct
    participant to be redeemed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although voting on the shares of Series&#160;R Preferred Stock
    is limited to the holders of record of the shares of
    Series&#160;R Preferred Stock, in those instances in which a
    vote is required, neither DTC nor Cede&#160;&#038; Co. will
    itself consent or vote on shares of Series&#160;R Preferred
    Stock. Under its usual procedures, DTC would mail an
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-47
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    omnibus proxy to us as soon as possible after the record date.
    The omnibus proxy assigns Cede&#160;&#038; Co.&#146;s consenting
    or voting rights to direct participants for whose accounts the
    shares of Series&#160;R Preferred Stock are credited on the
    record date (identified in a listing attached to the omnibus
    proxy).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will make distribution payments on the Series&#160;R
    Preferred Stock, and the depositary will then make distribution
    payments on the shares of Series&#160;R Preferred Stock to DTC.
    DTC&#146;s practice is to credit direct participants&#146;
    accounts on the relevant payment date in accordance with their
    respective holdings shown on DTC&#146;s records unless DTC has
    reason to believe that it will not receive payments on the
    payment date. Standing instructions and customary practices will
    govern payments from participants to beneficial owners. Subject
    to any statutory or regulatory requirements, participants, and
    neither DTC nor we, will be responsible for the payment. We and
    any paying agent will be responsible for payment of
    distributions to DTC. Direct and indirect participants are
    responsible for the disbursement of the payments to the
    beneficial owners.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    DTC may discontinue providing its services as securities
    depositary on any of the shares of Series&#160;R Preferred Stock
    at any time by giving reasonable notice to us. If a successor
    securities depositary is not obtained, final certificated shares
    must be printed and delivered. We may at our option decide to
    discontinue the use of the system of book-entry transfers
    through DTC (or a successor depositary).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have obtained the information in this section about DTC and
    DTC&#146;s book-entry system from sources that we believe to be
    accurate, but we assume no responsibility for the accuracy of
    the information. We have no responsibility for the performance
    by DTC or its participants of their respective obligations as
    described in this prospectus or under the rules and procedures
    governing their respective operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Beneficial owner&#148;</B> refers to the ownership
    interest of each actual purchaser of each share of Series&#160;R
    Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Direct participants&#148;</B> refers to securities
    brokers and dealers, banks, trust companies, clearing
    corporations and other organizations who, with the New York
    Stock Exchange, Inc., the American Stock Exchange Inc., and the
    Financial Industry Regulatory Authority, Inc., own DTC.
    Purchases of shares of Series&#160;R Preferred Stock within the
    DTC system must be made by or through direct participants who
    will receive a credit for the shares of Series&#160;R Preferred
    Stock on DTC&#146;s records.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Indirect participants&#148;</B> refers to others, like
    securities brokers and dealers, banks and trust companies that
    clear through or maintain custodial relationships with direct
    participants, either directly or indirectly, and who also have
    access to the DTC system.
</DIV>


<!-- link1 "CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='110'></A><B><FONT style="font-family: 'Times New Roman', Times">CERTAIN
    U.S. FEDERAL INCOME TAX CONSIDERATIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary of certain U.S.&#160;federal income
    tax and, for
    <FONT style="white-space: nowrap">non-U.S.&#160;holders</FONT>
    (as defined below), estate tax consequences of the purchase,
    ownership, conversion and disposition of the Series&#160;R
    Preferred Stock and our common stock received in respect thereof
    as of the date hereof. Except where noted, this summary deals
    only with the Series&#160;R Preferred Stock and our common stock
    held as capital assets. As used herein, the term
    &#147;<B>U.S.&#160;holder</B>&#148; means a beneficial owner of
    the Series&#160;R Preferred Stock or our common stock that is
    for U.S.&#160;federal income tax purposes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an individual citizen or resident of the United States;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a corporation (or any other entity treated as a corporation for
    U.S.&#160;federal income tax purposes) created or organized in
    or under the laws of the United States, any state thereof or the
    District of Columbia;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an estate the income of which is subject to U.S.&#160;federal
    income taxation regardless of its source;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a trust if it (1)&#160;is subject to the primary supervision of
    a court within the United States and one or more United States
    persons have the authority to control all substantial decisions
    of the trust or (2)&#160;has a valid election in effect under
    applicable U.S.&#160;Treasury regulations to be treated as a
    United States person.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-48
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As used herein, the term
    <B><FONT style="white-space: nowrap">&#147;non-U.S.&#160;holder&#148;</FONT></B>
    means a beneficial owner of the Series&#160;R Preferred Stock or
    our common stock that is neither a U.S.&#160;holder nor a
    partnership (or other entity treated as a partnership for
    U.S.&#160;federal income tax purposes).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This summary is not a detailed description of the
    U.S.&#160;federal income tax consequences applicable to you if
    you are subject to special treatment under the U.S.&#160;federal
    income tax laws, including if you are:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a dealer in securities or currencies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a financial institution;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a regulated investment company;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a real estate investment trust;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an insurance company;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a tax-exempt organization;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a person holding the Series&#160;R Preferred Stock or our common
    stock as part of a hedging, integrated, conversion or
    constructive sale transaction or a straddle;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a trader in securities that has elected the mark-to-market
    method of accounting for your securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a person liable for alternative minimum tax;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a partnership or other pass-through entity for U.S.&#160;federal
    income tax purposes;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a person who is an investor in a pass-through entity;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a U.S.&#160;holder whose &#147;functional currency&#148; is not
    the U.S.&#160;dollar;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a &#147;controlled foreign corporation&#148;;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a &#147;passive foreign investment company&#148;; or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a United States expatriate.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This summary is based upon the provisions of the Internal
    Revenue Code of 1986, as amended (the <B>&#147;Code&#148;</B>),
    and regulations, rulings and judicial decisions as of the date
    hereof. Those authorities may be changed, perhaps retroactively,
    so as to result in U.S.&#160;federal income and estate tax
    consequences different from those summarized below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a partnership holds the Series&#160;R Preferred Stock or our
    common stock, the tax treatment of a partner will generally
    depend upon the status of the partner and the activities of the
    partnership. If you are a partner of a partnership holding the
    Series&#160;R Preferred Stock or our common stock, you should
    consult your own tax advisors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This summary does not contain a detailed description of all the
    U.S.&#160;federal income and estate tax consequences to you in
    light of your particular circumstances and does not address the
    effects of any state, local or
    <FONT style="white-space: nowrap">non-U.S.&#160;tax</FONT>
    laws. <B>If you are considering the purchase, ownership or
    disposition of the Series&#160;R Preferred Stock, you should
    consult your own tax advisors concerning the U.S.&#160;federal
    income and estate tax consequences to you in light of your
    particular situation as well as any consequences arising under
    the laws of any other taxing jurisdiction.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">U.S.
    Holders</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Dividends</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Distributions on the Series&#160;R Preferred Stock or our common
    stock will be dividends for U.S.&#160;federal income tax
    purposes to the extent paid out of our current or accumulated
    earnings and profits, as determined for U.S.&#160;federal income
    tax purposes, and will be taxable as ordinary income although,
    possibly at reduced rates, as discussed below. Although we
    expect that our current and accumulated earnings and profits
    will be
</DIV>

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    <BR>
    S-49
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    such that all distributions paid with respect to the
    Series&#160;R Preferred Stock or our common stock will qualify
    as dividends for U.S.&#160;federal income tax purposes, we
    cannot guarantee that result. Our accumulated earnings and
    profits and our current earnings and profits in future years
    will depend in significant part on our future profits or losses,
    which we cannot accurately predict. To the extent that the
    amount of any distribution paid on the Series&#160;R Preferred
    Stock or our common stock exceeds our current and accumulated
    earnings and profits attributable to that share of the
    Series&#160;R Preferred Stock or our common stock, the
    distribution will be treated first as a tax-free return of
    capital and will be applied against and will reduce the
    U.S.&#160;holder&#146;s adjusted tax basis (but not below zero)
    in that share of the Series&#160;R Preferred Stock or our common
    stock. This reduction in basis will increase any gain, or reduce
    any loss realized by the U.S.&#160;holder on the subsequent
    sale, redemption or other disposition of the Series&#160;R
    Preferred Stock or our common stock. The amount of any such
    distribution in excess of the U.S.&#160;holder&#146;s adjusted
    tax basis will be taxed as capital gain. For purposes of the
    remainder of the discussion under this heading, it is assumed
    that distributions paid on the Series&#160;R Preferred Stock or
    our common stock will constitute dividends for U.S.&#160;federal
    income tax purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a U.S.&#160;holder is a corporation, dividends that are
    received by it will generally be eligible for a 70% dividends
    received deduction under the Code. However, the Code disallows
    this dividends received deduction in its entirety if the
    Series&#160;R Preferred Stock or our common stock with respect
    to which the dividend is paid is held by such U.S.&#160;holder
    for less than 46&#160;days during the
    <FONT style="white-space: nowrap">91-day</FONT>
    period beginning on the date which is 45&#160;days before the
    date on which the Series&#160;R Preferred Stock or our common
    stock becomes ex-dividend with respect to such dividend. (A
    <FONT style="white-space: nowrap">91-day</FONT>
    minimum holding period applies to any dividends on the
    Series&#160;R Preferred Stock that are attributable to periods
    in excess of 366&#160;days.)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under current law, if a U.S.&#160;holder is an individual or
    other non-corporate holder, dividends received by such
    U.S.&#160;holder generally will be subject to a reduced maximum
    tax rate of 15% for taxable years beginning before
    January&#160;1, 2011, after which the rate applicable to
    dividends is scheduled to return to the tax rate generally
    applicable to ordinary income. The rate reduction does not apply
    to dividends received to the extent that U.S.&#160;holders elect
    to treat the dividends as &#147;investment income,&#148; for
    purposes of the rules relating to the limitation on the
    deductibility of investment-related interest, which may be
    offset by investment expense. Furthermore, the rate reduction
    will also not apply to dividends that are paid to such holders
    with respect to the Series&#160;R Preferred Stock or our common
    stock that is held by the holder for less than 61&#160;days
    during the
    <FONT style="white-space: nowrap">121-day</FONT>
    period beginning on the date which is 60&#160;days before the
    date on which the Series&#160;R Preferred Stock or our common
    stock become ex-dividend with respect to such dividend. (A
    <FONT style="white-space: nowrap">91-day</FONT>
    minimum holding period applies to any dividends on the
    Series&#160;R Preferred Stock that are attributable to periods
    in excess of 366&#160;days.)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, for purposes of meeting the holding period
    requirements for both the dividends received deduction and the
    reduced maximum tax rate on dividends described above,
    U.S.&#160;holders may not count towards their holding period any
    period in which they (a)&#160;have the option to sell, are under
    a contractual obligation to sell, or have made (and not closed)
    a short sale of the Series&#160;R Preferred Stock or our common
    stock, as the case may be, or substantially identical stock or
    securities, (b)&#160;are the grantor of an option to buy the
    Series&#160;R Preferred Stock or our common stock, as the case
    may be, or substantially identical stock or securities or
    (c)&#160;otherwise have diminished their risk of loss on the
    Series&#160;R Preferred Stock or our common stock, as the case
    may be, by holding one or more other positions with respect to
    substantially similar or related property. The
    U.S.&#160;Treasury regulations provide that a taxpayer has
    diminished its risk of loss on stock by holding a position in
    substantially similar or related property if the taxpayer is,
    including, without limitation, the beneficiary of a guarantee,
    surety agreement, or similar arrangement that provides for
    payments that will substantially offset decreases in the fair
    market value of the stock. In addition, the Code disallows the
    dividends received deduction as well as the reduced maximum tax
    rate on dividends if the recipient of a dividend is obligated to
    make related payments with respect to positions in substantially
    similar or related property. This disallowance applies even if
    the minimum holding period has been met. U.S.&#160;holders are
    advised to consult their own tax advisors regarding the
    implications of these rules in light of their particular
    circumstances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    U.S.&#160;holders that are corporations should consider the
    effect of Section&#160;246A of the Code, which reduces the
    dividends received deduction allowed with respect to
    &#147;debt-financed portfolio stock.&#148; The Code also imposes
    a 20% alternative minimum tax on corporations. In some
    circumstances, the portion of dividends
</DIV>

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    <BR>
    S-50
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    subject to the dividends received deduction will serve to
    increase a corporation&#146;s minimum tax base for purposes of
    the determination of the alternative minimum tax. In addition, a
    corporate shareholder may be required to reduce its basis in
    stock with respect to certain &#147;extraordinary
    dividends&#148;, as provided under Section&#160;1059 of the
    Code. U.S.&#160;holders should consult their own tax advisors in
    determining the application of these rules in light of their
    particular circumstances.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Sale
    or Other Disposition</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A sale, exchange, or other disposition of the Series&#160;R
    Preferred Stock or our common stock will generally result in
    gain or loss equal to the difference between the amount realized
    upon the disposition (not including any amount attributable to
    declared and unpaid dividends, which will be taxable as
    described above to U.S.&#160;holders of record who have not
    previously included such dividends in income) and a
    U.S.&#160;holder&#146;s adjusted tax basis in the Series&#160;R
    Preferred Stock or our common stock, as the case may be. Such
    gain or loss will be capital gain or loss and will be long-term
    capital gain or loss if the U.S.&#160;holder&#146;s holding
    period for the Series&#160;R Preferred Stock or our common
    stock, as applicable, exceeds one year. Under current law, if a
    U.S.&#160;holder is an individual or other non-corporate holder,
    net long-term capital gain realized by such U.S.&#160;holder is
    subject to a reduced maximum tax rate of 15%. For taxable years
    beginning on or after January&#160;1, 2011, the maximum rate is
    scheduled to return to the previously effective 20% rate. The
    deduction of capital losses is subject to limitations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Conversion
    of the Series&#160;R Preferred Stock into Common
    Stock</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a general rule, a U.S.&#160;holder will not recognize any
    gain or loss in respect of the receipt of common stock upon the
    conversion of the Series&#160;R Preferred Stock. The adjusted
    tax basis of common stock received on conversion will equal the
    adjusted tax basis of the Series&#160;R Preferred Stock
    converted (reduced by the portion of adjusted tax basis
    allocated to any fractional common stock exchanged for cash, as
    described below), and the holding period of such common stock
    received on conversion will generally include the period during
    which the converted Series&#160;R Preferred Stock was held prior
    to conversion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cash received in lieu of a fractional common share will
    generally be treated as a payment in a taxable exchange for such
    fractional common share, and capital gain or loss will be
    recognized on the receipt of cash in an amount equal to the
    difference between the amount of cash received and the amount of
    adjusted tax basis allocable to the fractional common share. Any
    cash received attributable to any declared and unpaid dividends
    on the Series&#160;R Preferred Stock will be treated as
    described above under &#147;U.S.&#160;Holders&#160;&#151;
    Dividends.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event a U.S.&#160;holder&#146;s Series&#160;R Preferred
    Stock is converted pursuant to an election by the holder in the
    case of certain acquisitions (see &#147;Description of
    Series&#160;R Preferred Stock&#160;&#151; Conversion Upon
    Certain Acquisitions&#148;), or is converted pursuant to certain
    other transactions, including our consolidation or merger into
    another person (see &#147;Description of Series&#160;R Preferred
    Stock&#160;&#151; Reorganization Events&#148;) the tax treatment
    of such a conversion will depend upon the facts underlying the
    particular transaction triggering such a conversion. Each
    U.S.&#160;holder should consult its tax adviser to determine the
    specific tax treatment of a conversion under such circumstances.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Adjustment
    of Conversion Rate</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The conversion rate of the Series&#160;R Preferred Stock is
    subject to adjustment under certain circumstances.
    U.S.&#160;Treasury regulations promulgated under
    Section&#160;305 of the Code would treat a U.S.&#160;holder of
    the Series&#160;R Preferred Stock as having received a
    constructive distribution includable in such
    U.S.&#160;holder&#146;s income in the manner as described above
    under &#147;U.S.&#160;Holders&#160;&#151; Dividends,&#148;
    above, if and to the extent that certain adjustments in the
    conversion rate increase the proportionate interest of a
    U.S.&#160;holder in our earnings and profits. For example, an
    increase in the conversion ratio to reflect a taxable dividend
    to holders of common stock or in connection with certain
    acquisitions (see &#147;Description of Series&#160;R Preferred
    Stock&#160;&#151; Conversion Upon Certain Acquisitions&#148;)
    will generally give rise to a deemed taxable dividend to the
    holders of the Series&#160;R Preferred Stock to the extent of
    our current and accumulated earnings and profits. In addition,
    an
</DIV>

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    <BR>
    S-51
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    adjustment to the conversion rate of the Series&#160;R Preferred
    Stock or a failure to make such an adjustment could potentially
    give rise to constructive distributions to U.S.&#160;holders of
    our common stock. Thus, under certain circumstances,
    U.S.&#160;holders may recognize income in the event of a
    constructive distribution even though they may not receive any
    cash or property. Adjustments to the conversion rate made
    pursuant to a bona fide reasonable adjustment formula which has
    the effect of preventing dilution in the interest of the
    U.S.&#160;holders of the Series&#160;R Preferred Stock, however,
    will generally not be considered to result in a constructive
    dividend distribution.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Information
    Reporting and Backup Withholding</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, information reporting will apply to dividends in
    respect of the Series&#160;R Preferred Stock or our common stock
    and the proceeds from the sale, exchange or other disposition of
    the Series&#160;R Preferred Stock or our common stock that are
    paid to a U.S.&#160;holder within the United States (and in
    certain cases, outside the United States), unless a
    U.S.&#160;holder is an exempt recipient such as a corporation.
    Backup withholding may apply to such payments if a
    U.S.&#160;holder fails to provide a taxpayer identification
    number or certification of other exempt status or fails to
    report in full dividend and interest income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any amounts withheld under the backup withholding rules will be
    allowed as a refund or a credit against a
    U.S.&#160;holder&#146;s U.S.&#160;federal income tax liability
    provided the required information is furnished to the IRS.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Non-U.S.</FONT>
    Holders</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Dividends</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dividends (including any constructive distributions taxable as
    dividends) paid to a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    of the Series&#160;R Preferred Stock or our common stock
    generally will be subject to withholding of United States
    federal income tax at a 30% rate or such lower rate as may be
    specified by an applicable income tax treaty. However, dividends
    that are effectively connected with the conduct of a trade or
    business by the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    within the United States (and, if required by an applicable
    income tax treaty, are attributable to a United States permanent
    establishment) are not subject to the withholding tax, provided
    certain certification and disclosure requirements are satisfied.
    Instead, such dividends are subject to United States federal
    income tax on a net income basis in the same manner as if the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    were a United States person as defined under the Code. Any such
    effectively connected dividends received by a foreign
    corporation may be subject to an additional &#147;branch profits
    tax&#148; at a 30% rate or such lower rate as may be specified
    by an applicable income tax treaty.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    of the Series&#160;R Preferred Stock or our common stock who
    wishes to claim the benefit of an applicable treaty rate and
    avoid backup withholding, as discussed below, for dividends will
    be required (a)&#160;to complete Internal Revenue Service
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    (or other applicable form) and certify under penalty of perjury
    that such holder is not a United States person as defined under
    the Code and is eligible for treaty benefits or (b)&#160;if the
    Series&#160;R Preferred Stock or our common stock is held
    through certain foreign intermediaries, to satisfy the relevant
    certification requirements of applicable United States Treasury
    regulations. Special certification and other requirements apply
    to certain
    <FONT style="white-space: nowrap">non-U.S.&#160;holders</FONT>
    that are pass-through entities rather than corporations or
    individuals.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    of the Series&#160;R Preferred Stock or our common stock
    eligible for a reduced rate of United States withholding tax
    pursuant to an income tax treaty may obtain a refund of any
    excess amounts withheld by filing an appropriate claim for
    refund with the Internal Revenue Service.
</DIV>

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    <BR>
    S-52
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Sale
    or Other Disposition</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any gain realized on the disposition of the Series&#160;R
    Preferred Stock or our common stock (including, in the case of
    conversion, the deemed exchange that gives rise to a payment of
    cash in lieu of a fractional common share) generally will not be
    subject to United States federal income tax unless:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the gain is effectively connected with a trade or business of
    the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    in the United States (and, if required by an applicable income
    tax treaty, is attributable to a United States permanent
    establishment of the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder);</FONT>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    is an individual who is present in the United States for
    183&#160;days or more in the taxable year of that disposition,
    and certain other conditions are met;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we are or have been a &#147;United States real property holding
    corporation&#148; for United States federal income tax purposes.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An individual
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    described in the first bullet point immediately above will be
    subject to tax on the net gain derived from the sale under
    regular graduated United States federal income tax rates. An
    individual
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    described in the second bullet point immediately above will be
    subject to a flat 30% tax on the gain derived from the sale,
    which may be offset by United States source capital losses, even
    though the individual is not considered a resident of the United
    States. If a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    that is a foreign corporation falls under the first bullet point
    immediately above, it will be subject to tax on its net gain in
    the same manner as if it were a United States person as defined
    under the Code and, in addition, may be subject to the branch
    profits tax equal to 30% of its effectively connected earnings
    and profits or at such lower rate as may be specified by an
    applicable income tax treaty.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe we are not and do not anticipate becoming a
    &#147;United States real property holding corporation&#148; for
    United States federal income tax purposes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Conversion
    into Common Stock</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Non-U.S.&#160;holders will generally not recognize any gain or
    loss in respect of the receipt of common stock upon the
    conversion of the Series&#160;R Preferred Stock, except with
    respect to any cash received in lieu of a fractional share that
    is taxable as described above under
    &#147;Non-U.S.&#160;Holders&#160;&#151; Sale or Other
    Disposition.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Adjustment
    of Conversion Rate</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As described above under &#147;U.S.&#160;Holders&#160;&#151;
    Adjustment of Conversion Rate&#148;, adjustments in the
    conversion rate (or failures to adjust the conversion rate) that
    increase the proportionate interest of a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    in our earning and profits could result in deemed distributions
    to the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    that are taxed as described under
    <FONT style="white-space: nowrap">&#147;Non-U.S.&#160;Holders&#160;&#151;</FONT>
    Dividends.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Federal
    Estate Tax</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Series&#160;R Preferred Stock and common stock owned or
    treated as owned by an individual who is not a citizen or
    resident of the United States (as specially defined for
    U.S.&#160;federal estate tax purposes) at the time of death will
    be included in the individual&#146;s gross estate for
    U.S.&#160;federal estate tax purposes, unless an applicable
    estate tax or other treaty provides otherwise and, therefore,
    may be subject to U.S.&#160;federal estate tax.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Information
    Reporting and Backup Withholding</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We must report annually to the Internal Revenue Service and to
    each
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    the amount of dividends paid to such holder and the tax withheld
    with respect to such dividends, regardless of whether
    withholding was required. Copies of the information returns
    reporting such dividends and withholding may also be made
    available to the tax authorities in the country in which the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    resides under the provisions of an applicable income tax treaty.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-53
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    will be subject to backup withholding for dividends paid to such
    holder unless such holder certifies under penalty of perjury
    that it is a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    (and the payor does not have actual knowledge or reason to know
    that such holder is a United States person as defined under the
    Code), or such holder otherwise establishes an exemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Information reporting and, depending on the circumstances,
    backup withholding will apply to the proceeds of a sale of the
    Series&#160;R Preferred Stock or our common stock within the
    United States or conducted through certain United States-related
    financial intermediaries, unless the beneficial owner certifies
    under penalty of perjury that it is a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    (and the payor does not have actual knowledge or reason to know
    that the beneficial owner is a United States person as defined
    under the Code), or such owner otherwise establishes an
    exemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any amounts withheld under the backup withholding rules may be
    allowed as a refund or a credit against a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder&#146;s</FONT>
    United States federal income tax liability provided the required
    information is furnished to the Internal Revenue Service.
</DIV>


<!-- link1 "CERTAIN ERISA CONSIDERATIONS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='114'></A><B><FONT style="font-family: 'Times New Roman', Times">CERTAIN
    ERISA CONSIDERATIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary of certain considerations associated
    with the purchase of the shares of Series&#160;R Preferred Stock
    by employee benefit plans to which Title&#160;I of the
    U.S.&#160;Employee Retirement Income Security Act of 1974, as
    amended, which we refer to as ERISA, applies; plans, individual
    retirement accounts and other arrangements to which
    Section&#160;4975 of the Code or provisions under any federal,
    state, local,
    <FONT style="white-space: nowrap">non-U.S.&#160;or</FONT>
    other laws or regulations that are similar to such provisions of
    ERISA or the Code, which we collectively refer to as Similar
    Laws, apply; and entities whose underlying assets are considered
    to include &#147;plan assets&#148; of such plans, accounts and
    arrangements (each of which we call a Plan).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each fiduciary of a Plan should consider the fiduciary standards
    of ERISA or any applicable Similar Laws in the context of the
    Plan&#146;s particular circumstances before authorizing an
    investment in the shares of Series&#160;R Preferred Stock.
    Accordingly, among other factors, the fiduciary should consider
    whether the investment would satisfy the prudence and
    diversification requirements of ERISA or any applicable Similar
    Laws and would be consistent with the documents and instruments
    governing the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;406 of ERISA and Section&#160;4975 of the Code
    prohibit Plans subject to such provisions, which we call ERISA
    Plans, from engaging in certain transactions involving
    &#147;plan assets&#148; with persons that are &#147;parties in
    interest&#148; under ERISA or &#147;disqualified persons&#148;
    under the Code with respect to the ERISA Plans. A violation of
    these &#147;prohibited transaction&#148; rules may result in an
    excise tax or other liabilities under ERISA
    <FONT style="white-space: nowrap">and/or</FONT>
    Section&#160;4975 of the Code for those persons, unless
    exemptive relief is available under an applicable statutory or
    administrative exemption. Employee benefit plans that are
    governmental plans (as defined in Section&#160;3(32) of ERISA),
    certain church plans (as defined in Section&#160;3(33) of ERISA)
    and non-U.S. plans (as described in Section&#160;4(b)(4) of
    ERISA) are not subject to the requirements of ERISA or
    Section&#160;4975 of the Code, but may be subject to Similar
    Laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prohibited transactions within the meaning of Section&#160;406
    of ERISA or Section&#160;4975 of the Code could arise if the
    shares of Series&#160;R Preferred Stock were acquired by an
    ERISA Plan with respect to which we or any of our affiliates are
    a party in interest or a disqualified person. For example, if we
    are a party in interest or disqualified person with respect to
    an investing ERISA Plan (either directly or by reason of our
    ownership of our subsidiaries), an extension of credit
    prohibited by Section&#160;406(a)(1)(B) of ERISA and
    Section&#160;4975(c)(1)(B) of the Code between the investing
    ERISA Plan and us may be deemed to occur, unless exemptive
    relief were available under an applicable exemption (see below).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The United States Department of Labor has issued prohibited
    transaction class exemptions, or PTCEs, that may provide
    exemptive relief for direct or indirect prohibited transactions
    resulting from the purchase, holding or disposition of the
    shares of Series&#160;R Preferred Stock. Those class exemptions
    include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <FONT style="white-space: nowrap">PTCE&#160;96-23&#160;&#151;</FONT>
    for certain transactions determined by in-house asset managers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <FONT style="white-space: nowrap">PTCE&#160;95-60&#160;&#151;</FONT>
    for certain transactions involving insurance company general
    accounts;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-54
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <FONT style="white-space: nowrap">PTCE&#160;91-38&#160;&#151;</FONT>
    for certain transactions involving bank collective investment
    funds;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <FONT style="white-space: nowrap">PTCE&#160;90-1&#160;&#151;</FONT>
    for certain transactions involving insurance company separate
    accounts;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <FONT style="white-space: nowrap">PTCE&#160;84-14&#160;&#151;</FONT>
    for certain transactions determined by independent qualified
    professional asset managers.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, ERISA Section&#160;408(b)(l7) provides a limited
    exemption for the purchase and sale of securities and related
    lending transactions, provided that neither the issuer of the
    securities nor any of its affiliates have or exercise any
    discretionary authority or control or render any investment
    advice with respect to the assets of any Plan involved in the
    transaction and provided further that the Plan pays no more than
    adequate consideration in connection with the transaction (the
    so-called &#147;service provider exemption&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No assurance can be made that all of the conditions of any such
    exemptions will be satisfied.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because of the possibility that direct or indirect prohibited
    transactions or violations of Similar Laws could occur as a
    result of the purchase, holding or disposition of the shares of
    Series&#160;R Preferred Stock by a Plan, the shares of
    Series&#160;R Preferred Stock may not be purchased by any Plan,
    or any person investing the assets of any Plan, unless its
    purchase, holding and disposition of the shares of Series&#160;R
    Preferred Stock will not constitute or result in a non-exempt
    prohibited transaction under ERISA or the Code or a violation of
    any Similar Laws. Any purchaser or holder of the shares of
    Series&#160;R Preferred Stock or any interest in the shares of
    Series&#160;R Preferred Stock will be deemed to have represented
    by its purchase and holding of the shares of Series&#160;R
    Preferred Stock that either:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    it is not a Plan and is not purchasing the shares of
    Series&#160;R Preferred Stock or interest in the shares of
    Series&#160;R Preferred Stock on behalf of or with the assets of
    any Plan;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    its purchase, holding and disposition of the shares of Series R
    Preferred Stock or interest in the shares of Series&#160;R
    Preferred Stock will not constitute or result in a non-exempt
    prohibited transaction under ERISA or the Code or a violation of
    any Similar Laws.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Due to the complexity of these rules and the penalties imposed
    upon persons involved in non-exempt prohibited transactions, it
    is important that any person considering the purchase of shares
    of Series&#160;R Preferred Stock on behalf of or with the assets
    of any Plan consult with its counsel regarding the consequences
    under ERISA, the Code and any applicable Similar Laws of the
    acquisition, ownership and disposition of shares of
    Series&#160;R Preferred Stock, whether any exemption would be
    applicable, and whether all conditions of such exemption have
    been satisfied such that the acquisition and holding of the
    shares of Series&#160;R Preferred Stock by the Plan are entitled
    to full exemptive relief thereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Nothing herein shall be construed as, and the sale of shares of
    Series&#160;R Preferred Stock to a Plan is in no respect, a
    representation by us or the underwriters that any investment in
    the shares of Series&#160;R Preferred Stock would meet any or
    all of the relevant legal requirements with respect to
    investment by, or is appropriate for, Plans generally or any
    particular Plan.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-55
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "UNDERWRITING" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='111'></A><B><FONT style="font-family: 'Times New Roman', Times">UNDERWRITING</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Lehman Brothers Inc. and Morgan Stanley&#160;&#038; Co.
    Incorporated are acting as the representatives of the
    underwriters and, together with Credit Suisse Securities (USA)
    LLC and Goldman, Sachs&#160;&#038; Co., as the joint
    book-running managers of this offering. Under the terms of an
    underwriting agreement, which we will file as an exhibit to our
    current report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    and incorporated by reference in this prospectus supplement and
    the accompanying prospectus, each of the underwriters named
    below has severally agreed to purchase from us the respective
    number of shares of Series&#160;R Preferred Stock shown opposite
    its name below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Underwriters</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Number of Shares</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lehman Brothers Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Morgan Stanley&#160;&#038; Co. Incorporated
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Credit Suisse Securities (USA) LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Goldman, Sachs&#160;&#038; Co.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Barclays Capital Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Citigroup Global Markets Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deutsche Bank Securities Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    J.P. Morgan Securities Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Greenwich Capital Markets, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    UBS Securities LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    BNY Capital Markets, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cabrera Capital Markets, LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Keefe, Bruyette &#038; Woods, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Samuel A. Ramirez &#038; Company, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    The Williams Capital Group, L.P.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,500,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriting agreement provides that the underwriters&#146;
    obligation to purchase shares of Series&#160;R Preferred Stock
    depends on the satisfaction of the conditions contained in the
    underwriting agreement including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the obligation to purchase all of the shares of Series&#160;R
    Preferred Stock offered hereby (other than those shares of
    Series&#160;R Preferred Stock covered by their option to
    purchase additional shares as described below), if any of the
    shares are purchased;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the representations and warranties made by us to the
    underwriters are true;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    there is no material change in our business or in the financial
    markets;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we deliver customary closing documents to the underwriters.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Commissions
    and Expenses</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes the underwriting discounts and
    commissions we will pay to the underwriters. These amounts are
    shown assuming both no exercise and full exercise of the
    underwriters&#146; option to purchase additional shares of
    Series&#160;R Preferred Stock. The underwriting fee is the
    difference between the initial price to the public and the
    amount the underwriters pay to us for the shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="76%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>No Exercise</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Full Exercise</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The representatives of the underwriters have advised us that the
    underwriters propose to offer the shares of Series&#160;R
    Preferred Stock directly to the public at the public offering
    price on the cover of this prospectus supplement and to selected
    dealers, which may include the underwriters, at such offering
    price less a selling
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-56
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    concession not in excess of $&#160;&#160;&#160;&#160;&#160; per
    share. After the offering, the representatives may change the
    offering price and other selling terms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The expenses of the offering that are payable by us are
    estimated to be $1.75&#160;million (excluding underwriting
    discounts and commissions).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Option to
    Purchase Additional Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have granted the underwriters an option exercisable for
    30&#160;days after the date of this prospectus supplement, to
    purchase, from time to time, in whole or in part, up to an
    aggregate of 375,000&#160;shares of Series&#160;R Preferred
    Stock at the public offering price less underwriting discounts
    and commissions. This option may be exercised if the
    underwriters sell more than 2,500,000&#160;shares in connection
    with this offering. To the extent that this option is exercised,
    each underwriter will be obligated, subject to certain
    conditions, to purchase its pro rata portion of these additional
    shares based on the underwriter&#146;s percentage underwriting
    commitment in the offering as indicated in the table at the
    beginning of this Underwriting Section.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Lock-Up</FONT>
    Agreements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We and all of our directors and executive officers have agreed
    that, subject to certain exceptions, without the prior written
    consent of each of Lehman Brothers Inc. and Morgan
    Stanley&#160;&#038; Co. Incorporated, we and they will not
    directly or indirectly (1)&#160;offer for sale, sell, pledge, or
    otherwise dispose of (or enter into any transaction or device
    that is designed to, or could be expected to, result in the
    disposition by any person at any time in the future of) any
    shares of common stock or Series&#160;R Preferred Stock
    (including, without limitation, shares of our stock that may be
    deemed to be beneficially owned by us or them in accordance with
    the rules and regulations of the Securities and Exchange
    Commission and shares of common stock that may be issued upon
    exercise of any options or warrants) or securities convertible
    into or exercisable or exchangeable for common stock or
    Series&#160;R Preferred Stock, (2)&#160;enter into any swap or
    other derivatives transaction that transfers to another, in
    whole or in part, any of the economic consequences of ownership
    of common stock or Series&#160;R Preferred Stock, (3)&#160;make
    any demand for or exercise any right or file or cause to be
    filed a registration statement, including any amendments
    thereto, with respect to the registration of any shares of
    common stock or Series&#160;R Preferred Stock or securities
    convertible, exercisable or exchangeable into common stock or
    Series&#160;R Preferred Stock or any of our other securities, or
    (4)&#160;publicly disclose the intention to do any of the
    foregoing before the date that is 60&#160;days after the date of
    this Prospectus Supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The 60-day restricted period described in the preceding
    paragraph will be extended if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    during the last 17&#160;days of the 60-day restricted period we
    issue an earnings release or material news or a material event
    relating to us occurs;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    prior to the expiration of the 60-day restricted period, we
    announce that we will release earnings results during the
    <FONT style="white-space: nowrap">16-day</FONT>
    period beginning on the last day of the 60-day period;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    in which case the restrictions described in the preceding
    paragraph will continue to apply until the expiration of the
    <FONT style="white-space: nowrap">18-day</FONT>
    period beginning on the issuance of the earnings release or the
    announcement of the material news or material event, unless such
    extension is waived in writing by Lehman Brothers Inc. and
    Morgan Stanley&#160;&#038; Co. Incorporated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These restrictions do not apply to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;the sale of shares of Series&#160;R Preferred Stock to
    the underwriters;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;the issuance by us of our shares of common stock upon
    the exercise of an option or a warrant or the conversion of a
    security outstanding on the date of this prospectus supplement;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-57
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;the issuance by us of shares of common stock or
    securities convertible into or exercisable or exchangeable for
    shares of common stock pursuant to employee benefit plans, stock
    incentive plans or other employee compensation plans in
    existence on the date of this prospectus supplement;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;sales by any person other than us pursuant to a trading
    plan established in accordance with
    <FONT style="white-space: nowrap">Rule&#160;10b5-1</FONT>
    under the Exchange Act in existence on the date of this
    prospectus supplement;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (5)&#160;transfers by any person other than us of shares of
    common stock as a bona fide gift, or by will or intestacy; and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (6)&#160;the transfer of shares of common stock or any security
    convertible into or exercisable or exchangeable for shares of
    common stock to a member or members of the holder&#146;s
    immediate family or to a trust, the beneficiaries of which are
    exclusively the holder or a member or members of his or her
    immediate family; provided that each donee or other transferee
    agrees to be subject to the restrictions on transfer described
    above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Lehman Brothers Inc. and Morgan Stanley&#160;&#038; Co.
    Incorporated, in their sole discretion, may release our common
    stock or the Series&#160;R Preferred Stock and other securities
    subject to the
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements described above in whole or in part at any time with
    or without notice. When determining whether or not to release
    common stock or Series&#160;R Preferred Stock and other
    securities from
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements, Lehman Brothers Inc. and Morgan Stanley&#160;&#038;
    Co. Incorporated will consider, among other factors, the
    holder&#146;s reasons for requesting the release, the number of
    shares of common stock or Series&#160;R Preferred Stock and
    other securities for which the release is being requested and
    market conditions at the time.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Indemnification</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have agreed to indemnify the underwriters against certain
    liabilities, including liabilities under the Securities Act, and
    to contribute to payments that the underwriters may be required
    to make for these liabilities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Stabilization,
    Short Positions and Penalty Bids</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The representatives may engage in stabilizing transactions,
    short sales and purchases to cover positions created by short
    sales, and penalty bids or purchases for the purpose of pegging,
    fixing or maintaining the price of the Series&#160;R Preferred
    Stock, in accordance with Regulation&#160;M under the Securities
    Exchange Act of 1934:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Stabilizing transactions permit bids to purchase the underlying
    security so long as the stabilizing bids do not exceed a
    specified maximum.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A short position involves a sale by the underwriters of shares
    in excess of the number of shares the underwriters are obligated
    to purchase in the offering, which creates the syndicate short
    position. This short position may be either a covered short
    position or a naked short position. In a covered short position,
    the number of shares involved in the sales made by the
    underwriters in excess of the number of shares they are
    obligated to purchase is not greater than the number of shares
    that they may purchase by exercising their option to purchase
    additional shares. In a naked short position, the number of
    shares involved is greater than the number of shares in their
    option to purchase additional shares. The underwriters may close
    out any short position by either exercising their option to
    purchase additional shares
    <FONT style="white-space: nowrap">and/or</FONT>
    purchasing shares in the open market. In determining the source
    of shares to close out the short position, the underwriters will
    consider, among other things, the price of shares available for
    purchase in the open market as compared to the price at which
    they may purchase shares through their option to purchase
    additional shares. A naked short position is more likely to be
    created if the underwriters are concerned that there could be
    downward pressure on the price of the shares in the open market
    after pricing that could adversely affect investors who purchase
    in the offering.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-58
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Syndicate covering transactions involve purchases of the
    Series&#160;R Preferred Stock in the open market after the
    distribution has been completed in order to cover syndicate
    short positions.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Penalty bids permit the representatives to reclaim a selling
    concession from a syndicate member when the Series&#160;R
    Preferred Stock originally sold by the syndicate member is
    purchased in a stabilizing or syndicate covering transaction to
    cover syndicate short positions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These stabilizing transactions, syndicate covering transactions
    and penalty bids may have the effect of raising or maintaining
    the market price of our Series&#160;R Preferred Stock or
    preventing or retarding a decline in the market price of the
    Series&#160;R Preferred Stock. As a result, the price of the
    Series&#160;R Preferred Stock may be higher than the price that
    might otherwise exist in the open market. These transactions may
    be effected on The New York Stock Exchange or otherwise and, if
    commenced, may be discontinued at any time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Neither we nor any of the underwriters make any representation
    or prediction as to the direction or magnitude of any effect
    that the transactions described above may have on the price of
    the Series&#160;R Preferred Stock. In addition, neither we nor
    any of the underwriters make representation that the
    representatives will engage in these stabilizing transactions or
    that any transaction, once commenced, will not be discontinued
    without notice.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Electronic
    Distribution</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A prospectus in electronic format may be made available on the
    Internet sites or through other online services maintained by
    one or more of the underwriters
    <FONT style="white-space: nowrap">and/or</FONT>
    selling group members participating in this offering, or by
    their affiliates. In those cases, prospective investors may view
    offering terms online and, depending upon the particular
    underwriter or selling group member, prospective investors may
    be allowed to place orders online. The underwriters may agree
    with us to allocate a specific number of shares for sale to
    online brokerage account holders. Any such allocation for online
    distributions will be made by the representatives on the same
    basis as other allocations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Other than the prospectus in electronic format, the information
    on any underwriter&#146;s or selling group member&#146;s web
    site and any information contained in any other web site
    maintained by an underwriter or selling group member is not part
    of the prospectus or the registration statement of which this
    prospectus supplement and the accompanying prospectus form a
    part, has not been approved
    <FONT style="white-space: nowrap">and/or</FONT>
    endorsed by us or any underwriter or selling group member in its
    capacity as underwriter or selling group member and should not
    be relied upon by investors.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NYSE
    Listing</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have applied to list the Series&#160;R Preferred Stock on the
    New York Stock Exchange under the symbol &#147;WM PrR&#148;, and
    expect trading in the Series&#160;R Preferred Stock to begin
    within 30&#160;days of December&#160;&#160;&#160;, 2007, the
    original issue date.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Stamp
    Taxes</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you purchase shares of Series&#160;R Preferred Stock offered
    in this prospectus supplement and the accompanying prospectus,
    you may be required to pay stamp taxes and other charges under
    the laws and practices of the country of purchase, in addition
    to the offering price listed on the cover page of this
    prospectus supplement and the accompanying prospectus.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Relationships</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain of the underwriters and their related entities have
    engaged and may engage in commercial and investment banking
    transactions, financial advisory and other transactions with us
    in the ordinary course of their business. They have received
    customary compensation and expenses for these commercial and
    investment banking transactions. Among other things, the
    underwriters may purchase, as principals, loans originated or
    sold by us.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-59
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    Prospective Investors in the European Economic Area</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In relation to each member state of the European Economic Area
    that has implemented the Prospectus Directive (each, a relevant
    member state), with effect from and including the date on which
    the Prospectus Directive is implemented in that relevant member
    state (the relevant implementation date), an offer of
    Series&#160;R Preferred Stock described in this prospectus
    supplement may not be made to the public in that relevant member
    state prior to the publication of a prospectus in relation to
    the Series&#160;R Preferred Stock that has been approved by the
    competent authority in that relevant member state or, where
    appropriate, approved in another relevant member state and
    notified to the competent authority in that relevant member
    state, all in accordance with the Prospectus Directive, except
    that, with effect from and including the relevant implementation
    date, an offer of securities may be offered to the public in
    that relevant member state at any time:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to any legal entity that is authorized or regulated to operate
    in the financial markets or, if not so authorized or regulated,
    whose corporate purpose is solely to invest in securities&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to any legal entity that has two or more of (1)&#160;an average
    of at least 250&#160;employees during the last financial year;
    (2)&#160;a total balance sheet of more than &#128;43,000,000 and
    (3)&#160;an annual net turnover of more than &#128;50,000,000,
    as shown in its last annual or consolidated accounts&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to fewer than 100 natural or legal persons (other than qualified
    investors as defined in the Prospectus Directive) subject to
    obtaining the prior consent of the representatives for any such
    offer;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in any other circumstances that do not require the publication
    of a prospectus pursuant to Article&#160;3 of the Prospectus
    Directive.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each purchaser of Series&#160;R Preferred Stock described in
    this prospectus supplement located within a relevant member
    state will be deemed to have represented, acknowledged and
    agreed that it is a &#147;<B>qualified investor</B>&#148; within
    the meaning of Article&#160;2(1)(e) of the Prospectus Directive.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of this provision, the expression an &#147;offer to
    the public&#148; in any relevant member state means the
    communication in any form and by any means of sufficient
    information on the terms of the offer and the securities to be
    offered so as to enable an investor to decide to purchase or
    subscribe the securities, as the expression may be varied in
    that member state by any measure implementing the Prospectus
    Directive in that member state, and the expression
    &#147;<B>Prospectus Directive</B>&#148; means Directive
    2003/71/EC and includes any relevant implementing measure in
    each relevant member state.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have not authorized and do not authorize the making of any
    offer of Series&#160;R Preferred Stock through any financial
    intermediary on our behalf, other than offers made by the
    underwriters with a view to the final placement of the
    Series&#160;R Preferred Stock as contemplated in this prospectus
    supplement. Accordingly, no purchasers of the Series&#160;R
    Preferred Stock, other than the underwriters, are authorized to
    make any further offer of the Series&#160;R Preferred Stock on
    behalf of us or the underwriters.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    Prospective Investors in the United Kingdom</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus supplement is only being distributed to, and is
    only directed at, persons in the United Kingdom that are
    qualified investors within the meaning of Article&#160;2(1)(e)
    of the Prospectus Directive (&#147;<B>Qualified
    Investors</B>&#148;) that are also (i)&#160;investment
    professionals falling within Article&#160;19(5) of the Financial
    Services and Markets Act 2000 (Financial Promotion) Order 2005
    (the &#147;<B>Order</B>&#148;) or (ii)&#160;high net worth
    entities, and other persons to whom it may lawfully be
    communicated, falling within Article&#160;49(2)(a) to
    (d)&#160;of the Order (all such persons together being referred
    to as &#147;<B>relevant persons</B>&#148;). This prospectus
    supplement and its contents are confidential and should not be
    distributed, published or reproduced (in whole or in part) or
    disclosed by recipients to any other persons in the United
    Kingdom. Any person in the United Kingdom that is not a relevant
    persons should not act or rely on this document or any of its
    contents.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-60
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "VALIDITY OF SHARES" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='115'></A><B><FONT style="font-family: 'Times New Roman', Times">VALIDITY
    OF SHARES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The validity of the Series&#160;R Preferred Stock will be passed
    upon for us by Charles Edward Smith III, First Vice President
    and Assistant General Counsel, and by Simpson
    Thacher&#160;&#038; Bartlett LLP, New York, New York. The
    validity of the Series&#160;R Preferred Stock will be passed
    upon for the underwriters by Davis Polk&#160;&#038; Wardwell,
    New York, New York. Simpson Thacher&#160;&#038; Bartlett LLP and
    Davis Polk&#160;&#038; Wardwell will rely as to all matters of
    Washington law upon the opinion of Charles Edward Smith III,
    First Vice President and Assistant General Counsel. As of
    November&#160;30, 2007, Mr.&#160;Smith beneficially owned
    4,736&#160;shares of our common stock.
</DIV>


<!-- link1 "EXPERTS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='112'></A><B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements and management&#146;s
    report on the effectiveness of internal control over financial
    reporting incorporated in this document by reference from
    Washington Mutual, Inc.&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2006, have been audited by
    Deloitte&#160;&#038; Touche LLP, an independent registered
    public accounting firm, as stated in their reports, which are
    incorporated herein by reference, and have been so incorporated
    in reliance upon the reports of such firm given upon their
    authority as experts in accounting and auditing.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-61
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    PROSPECTUS
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="v36123b5b3483201.gif" alt="(WASHINGTON MUTUAL LOGO)" >
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">Debt Securities</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">Preferred Stock</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">Depositary Shares</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus is part of a registration statement that we
    filed with the Securities and Exchange Commission using a
    &#147;shelf&#148; registration process. This means:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT></TD>
    <TD align="left">
    <FONT style="font-size: 10pt">we may sell any of the following
    securities from time to time:
    </FONT>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="2%"></TD>
    <TD width="2%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    debt securities
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    preferred stock
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    depositary shares
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">we will provide a prospectus
    supplement each time we issue the securities; and
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">the prospectus supplement will
    provide specific information about the terms of that issuance
    and also may add, update or change information contained in this
    prospectus.
    </FONT>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may also issue common stock upon conversion or exchange of
    any of the securities listed above. We will provide the specific
    terms of these securities in supplements to this prospectus. You
    should read this prospectus and the applicable prospectus
    supplement carefully before you invest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The securities may be sold directly to investors, through agents
    designated from time to time or to or through underwriters or
    dealers. See &#147;Plan of Distribution.&#148; If any
    underwriters are involved in the sale of any securities in
    respect of which this prospectus is being delivered, the names
    of such underwriters and any applicable commissions or discounts
    will be set forth in the applicable prospectus supplement. The
    net proceeds we expect to receive from such sale also will be
    set forth in the applicable prospectus supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus may not be used to offer or sell any securities
    unless accompanied by a prospectus supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>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.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The date of this prospectus is January&#160;9, 2006.
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV align="left">
<!-- TOC -->
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: Arial, Helvetica">Table of contents
    </FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="95%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">Page</FONT></B>
</TD>
</TR>
<TR style="font-size: 1pt" valign="bottom" align="center">
<TD colspan="3" align="center" valign="bottom" style="font-size: 1pt; border-bottom: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#301'>About this Prospectus</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">3</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#302'>Where You Can Find Additional Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">3</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#303'>Incorporation of Certain Documents by
    Reference</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">4</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#304'>Special Note&#160;Regarding Forward-Looking
    Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">4</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#305'>The Company</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">5</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#306'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">6</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#307'>Ratio of Earnings to Fixed Charges</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">6</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#308'>Description of Debt Securities</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">7</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#309'>Description of Capital Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">17</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#310'>Description of Depositary Shares</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">19</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#311'>Plan of Distribution</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">22</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#312'>Legal Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">22</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#313'>Experts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">22</FONT></B>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">2</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "About this prospectus" -->


<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='301'></A><FONT style="font-family: Arial, Helvetica">About
    this prospectus
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus is part of a &#147;shelf&#148; registration
    statement that we have filed with the Securities Exchange
    Commission (the &#147;SEC&#148;). By using a shelf registration
    statement, we may sell, at any time and from time to time, in
    one or more offerings, any combination of the securities
    described in this prospectus. The exhibits to our registration
    statement contain the full text of certain contracts and other
    important documents we have summarized in this prospectus. Since
    these summaries may not contain all the information that you may
    find important in deciding whether to purchase the securities we
    offer, you should review the full text of these documents. The
    registration statement and the exhibits can be obtained from the
    SEC as indicated under the heading &#147;Where You Can Find
    Additional Information.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus only provides you with a general description of
    the securities we may offer. Each time we sell securities, we
    will provide a prospectus supplement that contains specific
    information about the terms of those securities. The prospectus
    supplement may also add, update or change information contained
    in this prospectus. You should read both this prospectus and any
    prospectus supplement together with the additional information
    described below under the heading &#147;Where You Can Find
    Additional Information.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>We are not making an offer of these securities in any
    jurisdiction where the offer is not permitted. You should not
    assume that the information in this prospectus or a prospectus
    supplement is accurate as of any date other than the date on the
    front of the document.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    References in this prospectus to Washington Mutual, the Company,
    we, us and our are to Washington Mutual, Inc. (together with its
    subsidiaries) unless the context otherwise provides.
</DIV>


<!-- link1 "Where you can find additional information" -->


<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='302'></A><FONT style="font-family: Arial, Helvetica">Where
    you can find additional information
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We file annual, quarterly and current reports and other
    information with the SEC. You may read and copy these reports
    and other information at the public reference room of the SEC at
    100 F Street, N.E., Washington , D.C. 20549. You may also obtain
    copies of these documents by mail from the SEC reference room at
    prescribed rates. Please call the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information on the public reference room. These
    reports and other information are also filed by us
    electronically with the SEC and are available at the SEC&#146;s
    website, www.sec.gov.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The indentures pursuant to which the debt securities will be
    issued require us to file reports under the Securities Exchange
    Act of 1934, as amended (the &#147;Exchange Act&#148;).
    Quarterly and annual reports will be made available upon request
    of holders of the debt securities, which annual reports will
    contain financial information that has been examined and
    reported upon by, with an opinion expressed by, an independent
    public or certified public accountant.
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">3</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "Incorporation of certain documents by reference" -->


<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='303'></A><FONT style="font-family: Arial, Helvetica">Incorporation
    of certain documents by reference
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The SEC allows us to &#147;incorporate by reference&#148; the
    information we file with it, which means that we can disclose
    important information to you by referring you to another
    document that we filed with the SEC. The information
    incorporated by reference is an important part of this
    prospectus, and information that we file later with the SEC will
    automatically update and supersede this information. We
    incorporate by reference the documents listed below and any
    future filings we make with the SEC under Sections&#160;13(a),
    13(c), 14 or 15(d) of the Exchange Act, until we sell all of the
    securities:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">Our Annual Report to Shareholders
    on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the fiscal year ended December&#160;31, 2004;
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">Our Quarterly Reports on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarters ended March&#160;31, June&#160;30, and
    September&#160;30, 2005;
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">Current Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    <FONT style="white-space: nowrap">and&#160;8-K/A</FONT>
    dated January&#160;6, January&#160;14, January&#160;20,
    January&#160;24, February&#160;18, February&#160;22,
    March&#160;2, March&#160;22, March&#160;23, April&#160;19,
    June&#160;7, June&#160;9, June&#160;24, July&#160;6,
    July&#160;20, July&#160;25, September&#160;8, September&#160;23,
    September&#160;26, October 4 and October&#160;27, 2005 and
    Items&#160;1.01 and 9.01 and Exhibit&#160;10.1 from the Current
    Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    dated November 2 and December&#160;23, 2005;
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">The description of our capital
    stock contained in Item&#160;5 of Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    dated November&#160;29, 1994, and any amendment or report filed
    for the purpose of updating this description; and
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt"><FONT style="white-space: nowrap">Form&#160;8-A/12B</FONT>
    dated February&#160;8, 2001, as amended.
    </FONT>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may obtain a copy of these filings at no cost, by writing or
    telephoning us at 1201 Third Avenue, Seattle, Washington 98101,
    telephone (206)&#160;461-3187, attention Investor Relations
    Department WMT0735.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should rely only on the information contained or
    incorporated by reference in this prospectus, any supplemental
    prospectus or any pricing supplement. We have not authorized
    anyone to provide you with any other information. We are not
    making an offer of these securities in any state where the offer
    is not permitted. You should not assume that the information in
    this prospectus, any accompanying prospectus supplement or any
    document incorporated by reference is accurate as of any date
    other than the date on the front of the document.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>


<!-- link1 "Special note regarding forward-looking statements" -->


<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='304'></A><FONT style="font-family: Arial, Helvetica">Special
    note regarding forward-looking statements
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus and the documents incorporated by reference
    contain certain &#147;forward-looking statements&#148; within
    the meaning of the Private Securities Litigation Reform Act of
    1995 with respect to financial condition, results of operations,
    and other matters. Statements in this prospectus, including
    those incorporated by reference, that are not historical facts
    are &#147;forward-looking statements&#148; for the purpose of
    the safe harbor provided by Section&#160;21E of the Exchange Act
    and Section&#160;27A of the Securities Act of 1933, as amended
    (the &#147;Securities Act&#148;). Forward-looking statements can
    be identified by the fact that they do not relate strictly to
    historical or current facts. They often include words, such as
    &#147;expects,&#148; &#147;anticipates,&#148;
    &#147;intends,&#148; &#147;plans,&#148; &#147;believes,
    &#147;seeks,&#148; &#147;estimates,&#148; or words of similar
    meaning, or future or conditional verbs, such as
    &#147;will,&#148; &#147;should,&#148; &#147;could,&#148; or
    &#147;may.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Forward-looking statements provide our expectations or
    predictions of future conditions, events or results. They are
    not guarantees of future performance. By their nature
    forward-looking statements are subject to risks and
    uncertainties. These statements speak only as of the date they
    are made. We do not undertake to update forward-looking
    statements to reflect the impact of circumstances or events that
    arise after the date the forward-looking statements were made.
    There are a number of factors, many of which are beyond our
    control, that could cause actual conditions, events or results
    to differ significantly from those described in the
    forward-looking statements. The factors are generally described
    in our most recent
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    and
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    under the caption &#147;Risk Factors.&#148;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">4</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "The company" -->


<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='305'></A><FONT style="font-family: Arial, Helvetica">The
    company
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With a history dating back to 1889, Washington Mutual is a
    financial services company committed to serving consumers and
    small- to medium-sized businesses. Based on our consolidated
    total assets at September&#160;30, 2005, we were the largest
    thrift holding company in the United States and 7th&#160;largest
    among all
    <FONT style="white-space: nowrap">U.S.-based</FONT>
    bank and thrift holding companies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Washington Mutual operates principally in California,
    Washington, Oregon, Illinois, Florida, Texas and the greater New
    York/New Jersey metropolitan area, and has operations in 31
    other states. We manage and report information concerning the
    Company&#146;s activities, operations, products and services
    around four segments: the Retail Banking and Financial Services
    Group, the Home Loans Group (previously called the
    &#147;Mortgage Banking Group&#148;), the Commercial Group and,
    as of the quarter beginning October&#160;1, 2005, Washington
    Mutual Card Services.
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">5</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "Use of proceeds" -->


<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='306'></A><FONT style="font-family: Arial, Helvetica">Use
    of proceeds
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise specified in the applicable prospectus
    supplement, we will use the net proceeds from the sale of the
    securities for general corporate purposes. Examples of general
    corporate purposes include additions to working capital,
    repayment of existing debt, acquisitions, and office expansions.
</DIV>


<!-- link1 "Ratio of earnings to fixed charges" -->


<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='307'></A><FONT style="font-family: Arial, Helvetica">Ratio
    of earnings to fixed charges
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth our ratio of earnings to fixed
    charges for each of the periods indicated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=hang1 -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="19" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-family: Arial, Helvetica">Year ended
    December 31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">Nine Months
    Ended<BR>
    </FONT></B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">2000</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">2001</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">2002</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">2003</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">2004</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">September 30,
    2005</FONT></B>
</TD>
</TR>
<TR style="font-size: 1pt" valign="bottom" align="center">
<TD colspan="23" align="center" valign="bottom" style="font-size: 1pt; border-bottom: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    1.30
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.03
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.76
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of this ratio, earnings consist of income before
    income taxes plus fixed charges. Fixed charges consist of
    interest expense on borrowings and deposits, and the estimated
    interest portion of rent expense.
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">6</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "Description of debt securities" -->

</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='308'></A><FONT style="font-family: Arial, Helvetica">Description
    of debt securities
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following description of the debt securities sets forth the
    material terms and provisions of the debt securities to which
    any prospectus supplement may relate. The particular terms of
    the debt securities offered by any prospectus supplement (the
    &#147;Offered Debt Securities&#148;) and the extent, if any, to
    which such general provisions may apply to the Offered Debt
    Securities, will be described in the prospectus supplement
    relating to such Offered Debt Securities. Accordingly, for a
    description of the terms of a particular issue of debt
    securities, reference must be made to both the prospectus
    supplement relating thereto and to the following description.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The debt securities will be our general obligations. In the
    event that any series of debt securities will be subordinated to
    other securities that we have outstanding or may incur, the
    terms of the subordination will be set forth in the prospectus
    supplement relating to the subordinated debt securities. Senior
    debt securities will be issued under the senior indenture dated
    as of August&#160;10, 1999 between Washington Mutual, Inc. and
    The Bank of New York, as trustee, as supplemented by a first
    supplemental indenture dated as of August&#160;1, 2002 and a
    second supplemental indenture dated as of November&#160;20,
    2002. References to the senior indenture in this prospectus will
    mean the senior indenture as supplemented. Subordinated debt
    securities will be issued under the subordinated indenture dated
    April&#160;4, 2000 between us and The Bank of New York, as
    supplemented by the first supplemental indenture dated
    August&#160;1, 2002, and a second supplemental indenture dated
    March&#160;16, 2004. References to the subordinated indenture in
    this prospectus will mean the subordinated indenture as
    supplemented. Together the senior indenture and the subordinated
    indenture and the supplemental indentures thereto are called the
    &#147;indentures.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have summarized selected provisions of the indentures below.
    The senior indenture and form of subordinated indenture have
    been filed as exhibits to the registration statement filed with
    the SEC and you should read the indentures for provisions that
    may be important to you. Accordingly, the following summary is
    qualified in its entirety by reference to the provisions of the
    indentures. Unless otherwise specified, capitalized terms used
    in this summary have the meanings specified in the indentures.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">GENERAL</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The indentures do not limit the aggregate principal amount of
    debt securities which may be issued under the indentures and
    provide that debt securities may be issued from time to time in
    one or more series. The indentures do not limit the amount of
    other indebtedness or debt securities, other than certain
    secured indebtedness as described below, which may be issued by
    us or our subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise provided in a prospectus supplement, the debt
    securities will be our unsecured obligations. The senior debt
    securities will rank equally with all other unsecured and
    unsubordinated indebtedness of ours. The subordinated debt
    securities will be subordinated in right of payment to the prior
    payment in full of all Senior Indebtedness including our senior
    debt securities as described below under &#147;Subordination of
    Subordinated Debt Securities&#148; and in the applicable
    prospectus supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The debt securities are our obligations exclusively. Because our
    operations are currently conducted substantially through our
    subsidiaries, our cash flow and the consequent ability to
    service our debt, including the debt securities, are dependent
    upon the earnings of our subsidiaries and the distribution
    of&#160;those earnings to us, or upon loans or other payments of
    funds to us by our subsidiaries. Our subsidiaries are separate
    and distinct legal entities and have no obligation, contingent
    or otherwise, to pay any amounts due with respect to the debt
    securities or to make funds available therefor, whether
    by&#160;dividends, loans or other payments. In addition, the
    payment to us of dividends and certain loans and advances by our
    subsidiaries may be subject to certain statutory or contractual
    restrictions.
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">7</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Payments are contingent upon the earnings of the subsidiaries,
    and are subject to various business considerations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The debt securities will be effectively subordinated to all
    liabilities, including deposits, of our subsidiaries. At
    September&#160;30, 2005, our subsidiaries had
    $190.41&#160;billion of deposits and $103.80&#160;billion of
    debt outstanding. Any right we may have to receive assets of a
    subsidiary upon its liquidation or reorganization (and the
    consequent right of the holders of the debt securities to
    participate in those assets) will be effectively subordinated to
    the claims of that subsidiary&#146;s creditors, except to the
    extent that we are recognized as a creditor of a subsidiary, in
    which case our claims would still be subordinate to any security
    interests in the assets of the subsidiary and any liabilities of
    the subsidiary senior to liabilities held by us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The debt securities may be issued in fully registered form
    without coupons (&#147;registered securities&#148;) or in the
    form of one or more global securities (each a &#147;Global
    Security&#148;). Registered securities that are book-entry
    securities will be issued as registered Global Securities.
    Unless otherwise provided in the prospectus supplement, the debt
    securities will be only registered securities. The debt
    securities will be issued, unless otherwise provided in the
    prospectus supplement, in denominations of $1,000 or an integral
    multiple thereof for registered securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The prospectus supplement relating to the particular debt
    securities offered thereby will describe the following terms of
    the Offered Debt Securities:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

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

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (1)&#160;&#160;
</TD>
    <TD align="left">    the title of the Offered Debt Securities;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (2)&#160;&#160;
</TD>
    <TD align="left">    whether the Offered Debt Securities are senior debt securities
    or subordinated debt securities;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (3)&#160;&#160;
</TD>
    <TD align="left">    the percentage of principal amount at which the Offered Debt
    Securities will be issued;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (4)&#160;&#160;
</TD>
    <TD align="left">    any limit on the aggregate principal amount of the Offered Debt
    Securities;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (5)&#160;&#160;
</TD>
    <TD align="left">    the date or dates on which the Offered Debt Securities will
    mature and the amount or amounts of any installment of principal
    payable on such dates;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (6)&#160;&#160;
</TD>
    <TD align="left">    the rate or rates (which may be fixed or variable) per year at
    which the Offered Debt Securities will bear interest, if any, or
    the method of determining such rate or rates and the date or
    dates from which such interest, if any, will accrue;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (7)&#160;&#160;
</TD>
    <TD align="left">    the date or dates on which interest, if any, on the Offered Debt
    Securities will be payable and the regular record dates for such
    payment dates;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (8)&#160;&#160;
</TD>
    <TD align="left">    the terms of any sinking fund and the obligation, if any, of
    ours to redeem or purchase the Offered Debt Securities pursuant
    to any sinking fund or analogous provisions;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (9)&#160;&#160;
</TD>
    <TD align="left">    the portion of the principal amount of Offered Debt Securities
    that is payable upon declaration of acceleration of the maturity
    of the Offered Debt Securities;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (10)&#160;
</TD>
    <TD align="left">    whether the Offered Debt Securities will be issued in registered
    form without coupons, including temporary and definitive global
    form, and the circumstances, if any, upon which such Offered
    Debt Securities may be exchanged for Offered Debt Securities
    issued in a different form;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (11)&#160;
</TD>
    <TD align="left">    whether the Offered Debt Securities are to be issued in whole or
    in part in the form of one or more Global Securities and, if so,
    the identity of the depositary for such Global Security or
    Securities;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (12)&#160;
</TD>
    <TD align="left">    whether and under what circumstances we will pay additional
    amounts to any holder of Offered Debt Securities who is not a
    United States person in respect of any tax, assessment or other
    governmental charge required to be withheld or deducted and, if
    so, whether we will have the option to redeem rather than pay
    any additional amounts;
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">8</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

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

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

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (13)&#160;
</TD>
    <TD align="left">    the place or places, if any, in addition to or instead of the
    corporate trust office of the trustee, where the principal,
    premium and interest with respect to the Offered Debt Securities
    shall be payable;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (14)&#160;&#160;
</TD>
    <TD align="left">    the terms, if any, upon which the debt securities of the series
    may be convertible into or exchanged for our common stock,
    preferred stock, other debt securities or other securities of
    any kind and the terms and conditions upon which such conversion
    or exchange shall be effected, including the initial conversion
    or exchange price or rate, the conversion or exchange period and
    any other additional provisions;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (15)&#160;
</TD>
    <TD align="left">    if the amount of principal, premium or interest with respect to
    the debt securities of the series may be determined with
    reference to an index or pursuant to a formula, the manner in
    which such amounts will be determined;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (16)&#160;
</TD>
    <TD align="left">    any authenticating or paying agent, transfer agent or registrar;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (17)&#160;
</TD>
    <TD align="left">    the applicability of, and any addition to or change in, the
    covenants and definitions then set forth in the indenture or in
    the terms then set forth in the indenture relating to permitted
    consolidations, mergers, or sales of assets;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (18)&#160;
</TD>
    <TD align="left">    certain other terms, including our ability to satisfy and
    discharge our obligations under an indenture with respect to the
    Offered Debt Securities.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No service charge will be made for any transfer or exchange of
    the debt securities except for any tax or other governmental
    charge.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Debt securities of a single series may be issued at various
    times with different maturity dates and different principal
    repayment provisions, may bear interest at different rates, may
    be issued at or above par or with an original issue discount,
    and may otherwise vary, all as provided in the indentures. The
    prospectus supplement for any debt securities issued above par
    or with an original issue discount will state any applicable
    material federal income tax consequences and other special
    considerations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">SUBORDINATION OF
    SUBORDINATED DEBT SECURITIES</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Payment of the principal of (and premium, if any) and interest,
    if any, on the subordinated debt securities will be subordinate
    and junior in right of payment to the prior payment in full of
    all Senior Debt (as defined herein). At September&#160;30, 2005,
    we had an aggregate par value of $7.60&#160;billion in Senior
    Debt and a par value of $3.83&#160;billion in debt securities
    subordinate to Senior Debt (exclusive of our subsidiaries). The
    subordinated indenture does not limit or restrict our ability to
    incur additional Senior Debt, but certain of our other debt
    instruments contain such limitations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event of any sale pursuant to any judgment or decree in
    any proceeding by or on behalf of any holder, or of any
    distribution, division or application of all or any part of our
    assets to our creditors by reason of any liquidation,
    dissolution or winding up of us or any receivership, insolvency,
    bankruptcy or similar proceeding relative to us or our debts or
    properties, then the holders of Senior Debt shall be preferred
    in the payment of their claims over the holders of the
    subordinated debt securities, and such Senior Debt shall be
    satisfied in full before any payment or other distribution
    (other than securities which are subordinate and junior in right
    of payment to the payment of all Senior Debt then outstanding)
    shall be made upon the subordinated debt securities. In the
    event that any subordinated debt security is declared or becomes
    due and payable before its maturity because of an occurrence of
    an event of default (under circumstances not described in the
    preceding sentence), no amount shall be paid in respect of the
    subordinated debt securities in excess of current interest
    payments, except sinking fund payments or at maturity, unless
    all Senior Debt then outstanding shall have been paid in full or
    payments satisfactory to the holders thereof provided therefor.
    During the continuance of any default on Senior Debt, no
    payments of principal, sinking fund, interest or premium shall
    be made with respect to any Subordinated Debt Security if either
    (i)&#160;notice of default has been given to us, provided
    judicial proceedings are commenced in respect thereof within
    120&#160;days, or (ii)&#160;judicial proceedings shall be
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">9</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    pending in respect of such default. In the event that any
    subordinated debt security is declared or becomes due and
    payable before maturity, each holder of Senior Debt shall be
    entitled to notice of same and shall be entitled to declare
    payable on demand any Senior Debt outstanding to such holder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Debt&#148; is defined in the indentures to include all
    indebtedness of ours or any Consolidated Subsidiary representing
    money borrowed, except indebtedness owed to us by any
    Consolidated Subsidiary or owed to any Consolidated Subsidiary
    by us or any other Consolidated Subsidiary, and includes
    indebtedness of any other person for money borrowed when such
    indebtedness is guaranteed by us or any Consolidated Subsidiary.
    The term &#147;Debt&#148; shall be deemed to include the
    liability of ours or any Consolidated Subsidiary in respect of
    any investment or similar certificate, except to the extent such
    certificates are pledged by purchasers as collateral for, and
    are offset by, receivables. &#147;Senior Debt&#148; is defined
    to mean all Debt of the Company except Subordinated Debt.
    &#147;Subordinated Debt&#148; is defined to mean Debt of ours
    which is subordinate and junior in right of payment to any
    Senior Debt of ours by the terms of the instrument creating or
    evidencing such Subordinate Debt and senior to the Junior
    Subordinated Notes. &#147;Junior Subordinated Notes&#148; is
    defined to mean our 8.36%&#160;Subordinated Notes due 2026,
    8.375% Junior Subordinated Debentures due 2027, 9.33% Junior
    Subordinated Deferrable Interest Debentures due 2027, and
    5.375%&#160;Subordinated Defeasible Interest Debentures due 2041.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subordinated debt securities will rank on a parity with all
    other Subordinated Debt other than the Junior Subordinated
    Notes. Subordinated debt securities are senior to the Junior
    Subordinated Note and to our common stock and preferred stock,
    and will be senior to any other class of capital stock which may
    be authorized.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">EXCHANGE,
    REGISTRATION AND TRANSFER</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Registered securities (other than book-entry securities) of any
    series of Offered Debt Securities will be exchangeable for other
    registered securities of the same series and of a like aggregate
    principal amount and tenor of different authorized denominations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Debt securities may be presented for exchange as provided above,
    and registered securities (other than book-entry securities) may
    be presented for registration of transfer (with the form of
    transfer endorsed thereon duly executed), at the office of the
    Security Registrar or at the office of any transfer agent
    designated by us for such purpose with respect to any series of
    debt securities and referred to in the prospectus supplement. No
    service charge will be charged for the transfer, but any tax or
    other governmental charge must be paid. Such transfer or
    exchange will be effected upon the Security Registrar or such
    transfer agent, as the case may be, being satisfied with the
    documents of title and identity of the person making the
    request. If a prospectus supplement refers to any transfer
    agents (in addition to the Security Registrar) initially
    designated by us with respect to any series of debt securities,
    we may at any time rescind the designation of any such transfer
    agent or approve a change in the location through which any such
    transfer agent acts, except that, if debt securities of a series
    are issuable solely as registered securities, we will be
    required to maintain a transfer agent in each Place of Payment
    for such series. We may at any time designate additional
    transfer agents with respect to any series of debt securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event of any redemption in part, we will not be required
    to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">issue, register the transfer of or
    exchange debt securities of any series during a period beginning
    at the opening of business 15&#160;days before any selection of
    debt securities of that series to be redeemed and ending at the
    close of business on if debt securities of the series are
    issuable only as registered securities, the day of mailing of
    the relevant notice of redemption; or
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">register the transfer of or
    exchange any registered security, or portion thereof, called for
    redemption, except the unredeemed portion of any registered
    security being redeemed in part.
    </FONT>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">10</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a discussion of restrictions on the exchange, registration
    and transfer of Global Securities, see &#147;Global
    Securities&#148;.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">PAYMENT AND
    PAYING AGENTS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise provided in the prospectus supplement, payment
    of principal of (and premium, if any) and interest, if any, on
    registered securities will be made in U.S.&#160;dollars at the
    office of such Paying Agent or Paying Agents as we may designate
    from time to time, except that at our option payment of any
    interest may be made by check mailed to the address of the
    Person entitled thereto as such address shall appear in the
    Security Register. Unless otherwise provided in a prospectus
    supplement, payment of any installment of interest on registered
    securities will be made to the Person in whose name such
    registered security is registered at the close of business on
    the Regular Record Date for such interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise provided in a prospectus supplement, the
    Corporate Trust Office of the trustee will be designated as our
    sole Paying Agent for payments with respect to Offered Debt
    Securities that are issuable solely as registered securities.
    Any Paying Agents outside the United States and any other Paying
    Agents in the United States initially designated by us for the
    Offered Debt Securities will be named in a prospectus
    supplement. We may at any time designate additional Paying
    Agents or rescind the designation of any Paying Agent or approve
    a change in the office through which any Paying Agent acts,
    except that, if debt securities of a series are issuable solely
    as registered securities, we will be required to maintain a
    Paying Agent in each Place of Payment for such series.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All moneys paid by us to a Paying Agent for the payment of
    principal of (and premium, if any) or interest, if any, on any
    debt security or coupon that remain unclaimed at the end of two
    years after such principal, premium or interest shall have
    become due and payable will be repaid to us and the holder of
    such debt security or coupon will thereafter look only to us for
    payment thereof.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">GLOBAL
    SECURITIES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The debt securities of a series may be issued in whole or in
    part as one or more Global Securities that will be deposited
    with, or on behalf of, a depositary located in the United States
    (a &#147;U.S.&#160;Depositary&#148;) or a common depositary
    located outside the United States (a &#147;Common
    Depositary&#148;) identified in the prospectus supplement
    relating to such series. Global Securities will be issued in
    registered form, in either temporary or definitive form.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The specific terms of the depositary arrangement with respect to
    any debt securities of a series will be described in the
    Prospectus Supplement relating to such series. We anticipate
    that the following provisions will apply to all depositary
    arrangements with a U.S.&#160;Depositary or Common Depositary.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">BOOK-ENTRY
    SECURITIES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise specified in a prospectus supplement, debt
    securities which are to be represented by a Global Security to
    be deposited with or on behalf of a U.S.&#160;Depositary will be
    represented by a Global Security registered in the name of such
    depositary or its nominee. Upon the issuance of a Global
    Security in registered form, the U.S.&#160;Depositary for such
    Global Security will credit, on its book-entry registration and
    transfer system, the respective principal amounts of the debt
    securities represented by such Global Security to the accounts
    of institutions that have accounts with such depositary or its
    nominee (&#147;participants&#148;). The accounts to be credited
    shall be designated by the underwriters or agents of such debt
    securities or by us, if such debt securities are offered and
    sold directly by us. Ownership of beneficial interests in such
    Global Securities will be limited to participants or persons
    that may hold interests through participants. Ownership of
    beneficial interests in such Global Securities will be shown on,
    and the transfer of that ownership will be effected only
    through, records maintained by the U.S.&#160;Depositary or its
    nominee for such Global Security or by participants or persons
    that hold through participants. The laws of some jurisdictions
    require that certain purchasers of securities take physical
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">11</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    delivery of such securities in definitive form. Such limits and
    such laws may impair the ability to transfer beneficial
    interests in a Global Security.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    So long as the U.S.&#160;Depositary for a Global Security in
    registered form, or its nominee, is the registered owner of such
    Global Security, such depositary or such nominee, as the case
    may be, will be considered the sole owner or holder of the debt
    securities represented by such Global Security for all purposes
    under the indenture governing such debt securities. Except as
    set forth below, owners of beneficial interests in such Global
    Securities will not be entitled to have debt securities of the
    series represented by such Global Security registered in their
    names, will not receive or be entitled to receive physical
    delivery of debt securities of such series in definitive form
    and will not be considered the owners or holders thereof under
    the indenture.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Payment of principal of (and premium, if any) and interest, if
    any, on debt securities registered in the name of or held by a
    U.S.&#160;Depositary or its nominee will be made to the
    U.S.&#160;Depositary or its nominee, as the case may be, as the
    registered owner or the holder of the Global Security
    representing such debt securities. We nor any trustee or Paying
    Agent, or the Security Registrar for such debt securities will
    have any responsibility or liability for any aspect of the
    records relating to or payments made on account of beneficial
    ownership interests in a Global Security for such debt
    securities or for maintaining, supervising or reviewing any
    records relating to such beneficial ownership interests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect that the U.S.&#160;Depositary for debt securities of a
    series, upon receipt of any payment of principal of (and
    premium, if any) or interest on permanent Global Securities,
    will credit participants&#146; accounts on the date such payment
    is payable in accordance with their respective beneficial
    interests in the principal amount of such Global Securities as
    shown on the records of such Depositary. We also expect that
    payments by participants to owners of beneficial interests in
    such Global Security held through such participants will be
    governed by standing instructions and customary practices, as is
    now the case with securities held for the accounts of customers
    registered in &#147;street name&#148;, and will be the
    responsibility of such participants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless and until it is exchanged in whole for debt securities in
    definitive form, a Global Security may not be transferred except
    as a whole by the U.S.&#160;Depositary for such Global Security
    to a nominee of such Depositary or by a nominee of such
    Depositary to such Depositary or another nominee of such
    Depositary or by such Depositary or any such nominee to a
    successor of such Depositary or a nominee of such successor. If
    a U.S.&#160;Depositary for debt securities in registered form is
    at any time unwilling or unable to continue as depositary and a
    successor depositary is not appointed by us within ninety days,
    we will issue debt securities in definitive registered form in
    exchange for the Global Security or Securities representing such
    debt securities. In addition, we may at any time and in our sole
    discretion determine not to have any debt securities in
    registered form represented by one or more Global Securities
    and, in such event, will issue debt securities in definitive
    registered form in exchange for the Global Security or
    Securities representing such debt securities. In any such
    instance, an owner of a beneficial interest in a Global Security
    will be entitled to physical delivery in definitive form of debt
    securities of the series represented by such Global Security
    equal in principal amount to such beneficial interest and to
    have such debt securities registered in the name of the owner of
    such beneficial interest.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">ABSENCE OF
    RESTRICTIVE COVENANTS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are not restricted by either of the indentures from paying
    dividends or from incurring, assuming or becoming liable for any
    type of debt or other obligations or from creating liens on our
    property for any purpose. The indentures do not require the
    maintenance of any financial ratios or specified levels of net
    worth or liquidity. The indentures do not contain provisions
    which afford holders of the debt securities protection in the
    event of a highly leveraged transaction involving us.
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">12</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">MERGER AND
    CONSOLIDATION</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each indenture provides that we, without the consent of the
    holders of any of the outstanding debt securities, may
    consolidate with or merge into any other corporation or transfer
    or lease our properties and assets substantially as an entirety
    to any Person or may permit any corporation to merge into us,
    provided that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">the successor is a corporation
    organized under the laws of any domestic jurisdiction;
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">the successor, if other than us,
    assumes our obligations under such indenture and the debt
    securities issued thereunder;
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">immediately after giving effect to
    such transaction, no Event of Default and no event which, after
    notice or lapse of time or both, would become an Event of
    Default, shall have occurred and be continuing; and
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">certain other conditions are met.
    </FONT>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each indenture provides that, upon any consolidation or merger
    or transfer or lease of our properties and assets of
    substantially as an entirety in accordance with the preceding
    paragraph, the successor corporation formed by such
    consolidation or into which we are merged or to which such
    transfer or lease is made shall be substituted for us with the
    same effect as if such successor corporation had been named as
    us. Thereafter, we shall be relieved of the performance and
    observance of all obligations and covenants of such indenture
    and the senior debt securities or subordinated debt securities,
    as the case may be, including but not limited to the obligation
    to make payment of the principal of (and premium, if any) and
    interest, if any, on all the debt securities then outstanding,
    and we may thereupon or any time thereafter be liquidated and
    dissolved.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">SATISFACTION AND
    DISCHARGE</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless a prospectus supplement provides otherwise, we will be
    discharged from our obligations under the outstanding debt
    securities of a series upon satisfaction of the following
    conditions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">we have irrevocably deposited with
    the trustee either money, or U.S.&#160;Government Obligations
    together with the predetermined and certain income to accrue
    thereon without consideration of any reinvestment thereof, or a
    combination of which (in the written opinion of independent
    public accountants delivered to the trustee), will be sufficient
    to pay and discharge the entire principal of (and premium, if
    any), and interest, if any, to Stated Maturity or any redemption
    date on, the outstanding debt securities of such series;
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">we have paid or caused to be paid
    all other sums payable with respect to the outstanding debt
    securities of such series;
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">the trustee has received an
    Officers&#146; Certificate and an Opinion of Counsel each
    stating that all conditions precedent have been complied with; or
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">the trustee has received
    (a)&#160;a ruling directed to us and the trustee from the United
    States Internal Revenue Service to the effect that the holders
    of the debt securities of such series will not recognize income,
    gain or loss for federal income tax purposes as a result of our
    exercise of our option to discharge our obligations under the
    indenture with respect to such series and will be subject to
    federal income tax on the same amount and in the same manner and
    at the same times as would have been the case if such deposit
    and discharge had not occurred or (b)&#160;an opinion of tax
    counsel to the same effect as the ruling described in
    clause&#160;(a) above and based upon a change in law.
    </FONT>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon such discharge, we will be deemed to have satisfied all the
    obligations under the indenture, except for obligations with
    respect to registration of transfer and exchange of the debt
    securities of such series, and the rights of the holders to
    receive from deposited funds payment of the principal of (and
    premium, if any) and interest, if any, on the debt securities of
    such series.
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">13</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">MODIFICATION OF
    THE INDENTURE</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each indenture provides that we and the trustee thereunder may,
    without the consent of any holders of debt securities, enter
    into supplemental indentures for the purposes, among other
    things, of adding to our covenants, adding any additional Events
    of Default, establishing the form or terms of debt securities or
    curing ambiguities or inconsistencies in such indenture or
    making other provisions; provided such action shall not
    adversely affect the interests of the holders of any series of
    debt securities in any material respect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each indenture contains provisions permitting us, with the
    consent of the holders of not less than a majority in principal
    amount of the outstanding debt securities of all affected series
    (acting as one class), to execute supplemental indentures adding
    any provisions to or changing or eliminating any of the
    provisions of such indenture or modifying the rights of the
    holders of the debt securities of such series, except that no
    such supplemental indenture may, without the consent of the
    holders of all the outstanding debt securities affected thereby,
    among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (1)&#160;&#160;
</TD>
    <TD align="left">    change the maturity of the principal of, or any installment of
    principal of or interest on, any of the debt securities;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (2)&#160;&#160;
</TD>
    <TD align="left">    reduce the principal amount thereof (or any premium thereon) or
    the rate of interest, if any, thereon;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (3)&#160;&#160;
</TD>
    <TD align="left">    reduce the amount of the principal of Original Issue Discount
    Securities payable on any acceleration of maturity;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (4)&#160;&#160;
</TD>
    <TD align="left">    change our obligation to maintain an office or agency in the
    places and for the purposes required by such indenture;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (5)&#160;&#160;
</TD>
    <TD align="left">    impair the right to institute suit for the enforcement of any
    such payment on or after the applicable maturity date;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (6)&#160;&#160;
</TD>
    <TD align="left">    reduce the percentage in principal amount of the outstanding
    debt securities of any series, the consent of the holders of
    which is required for any such supplemental indenture or for any
    waiver of compliance with certain provisions of, or of certain
    defaults under, such indenture;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (7)&#160;&#160;
</TD>
    <TD align="left">    with certain exceptions, to modify the provisions for the waiver
    of certain defaults and any of the foregoing provisions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">EVENTS OF
    DEFAULT</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An Event of Default in respect of any series of debt securities
    (unless it is either inapplicable to a particular series or has
    been modified or deleted with respect to any particular series)
    is defined in each indenture to be:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">failure to pay interest on such
    series of debt securities for 30&#160;days after payment is due;
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">failure to pay the principal of
    (or premium, if any) on such series of debt securities when due;
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">failure to perform any other
    covenant in the indenture that applies to such series of debt
    securities for 90&#160;days after we have received written
    notice of the failure to perform in the manner specified in the
    indenture;
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">an event of default under any
    mortgage, indenture (including the indenture) or other
    instrument under which any debt of Washington Mutual, Inc. or
    any Principal Subsidiary Bank (defined below) shall be
    outstanding which default shall have resulted in the
    acceleration of such debt in excess of $75,000,000 in aggregate
    principal amount and such acceleration shall not have been
    rescinded or such debt discharged within a period of
    30&#160;days after notice;
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">certain events of bankruptcy,
    insolvency or reorganization; and
    </FONT>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">14</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

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

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT></TD>
    <TD align="left">
    <FONT style="font-size: 10pt">any other event of default
    provided for in such series of debt securities.
    </FONT>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Principal Subsidiary Bank&#148; is defined in the
    indenture as each of Washington Mutual Bank (formerly known as
    Washington Mutual Bank, FA) and any other subsidiary bank the
    consolidated assets of which constitute 20% or more of the
    consolidated assets of Washington Mutual, Inc. and its
    subsidiaries. As of the date hereof, Washington Mutual Bank is
    our only Principal Subsidiary Bank.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If an Event of Default shall have happened and be continuing,
    either the trustee thereunder or the holders of not less than
    25% in principal amount of the outstanding debt securities of
    such series may declare the principal of all of the outstanding
    notes to be immediately due and payable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each indenture provides that the holders of not less than a
    majority in principal amount of the outstanding debt securities
    of any series may direct the time, method and place of
    conducting any proceeding for any remedy available to the
    trustee thereunder, or exercising any trust or power conferred
    on such trustee, with respect to the debt securities of such
    series; provided that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">such direction shall not be in
    conflict with any rule of law or with the indenture,
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">the trustee may take any other
    action deemed proper that is not inconsistent with such
    direction and
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">the trustee shall not determine
    that the action so directed would be unjustly prejudicial to the
    holders of debt securities of such series not taking part in
    such direction.
    </FONT>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each indenture provides that the holders of not less than a
    majority in principal amount of the outstanding debt securities
    of any series may on behalf of the holders of all of the
    outstanding debt securities of such series waive any past
    default under such indenture with respect to such series and its
    consequences, except a default (1)&#160;in the payment of the
    principal of (or premium, if any) or interest, if any, on any of
    the debt securities of such series or (2)&#160;in respect of a
    covenant or provision of such indenture which, under the terms
    of such indenture, cannot be modified or amended without the
    consent of the holders of all of the outstanding debt securities
    of such series affected thereby.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each indenture contains provisions entitling the trustee
    thereunder, subject to the duty of the trustee during an Event
    of Default in respect of any series of debt securities to act
    with the required standard of care, to be indemnified by the
    holders of the debt securities of such series before proceeding
    to exercise any right or power under such indenture at the
    request of the holders of the debt securities of such series.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each indenture provides that the trustee will, within
    90&#160;days after the occurrence of a default in respect of any
    series of debt securities, give to the holders of the debt
    securities of such series notice of all uncured and unwaived
    defaults known to it; provided, however, that, except in the
    case of a default in the payment of the principal of (or
    premium, if any) or any interest on, or any sinking fund
    installment with respect to, any of the debt securities of such
    series, the trustee will be protected in withholding such notice
    if it in good faith determines that the withholding of such
    notice is in the interests of the holders of the debt securities
    of such series; and provided, further, that such notice shall
    not be given until at least 30&#160;days after the occurrence of
    an Event of Default regarding the performance of any covenant of
    ours under such indenture other than for the payment of the
    principal of (or premium, if any) or any interest on, or any
    sinking fund installment with respect to, any of the debt
    securities of such series. The term default for the purpose of
    this provision only means any event that is, or after notice or
    lapse of time, or both, would become, an Event of Default with
    respect to the debt securities of such series.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will be required to furnish annually to the trustee a
    certificate as to compliance with all conditions and covenants
    under the indenture.
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">15</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">NOTICES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notices to holders of registered securities will be given by
    mail to the addresses of such holders as they appear in the
    Security Register.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">TITLE</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We, the appropriate Trustee and any agent of ours or such
    Trustee may treat the registered owner of any registered
    security (including registered securities in global registered
    form) as the absolute owner thereof (whether or not such Debt
    Security or coupon shall be overdue and notwithstanding any
    notice to the contrary) for the purpose of making payment and
    for all other purposes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">GOVERNING
    LAW</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    New York law will govern the indentures and the debt securities.
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">16</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "Description of capital stock" -->

</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='309'></A><FONT style="font-family: Arial, Helvetica">Description
    of capital stock
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following descriptions are summaries of the material terms
    of our Amended and Restated Articles of Incorporation
    (&#147;articles of incorporation&#148;), our bylaws and
    applicable provisions of law. Reference is made to the more
    detailed provisions of, and such descriptions are qualified in
    their entirety by reference to, our articles of incorporation
    and bylaws, which are incorporated by reference in the
    registration statement that we filed with the SEC. You should
    read our articles of incorporation and bylaws for the provisions
    that are important to you.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our articles of incorporation currently authorize
    1,600,000,000&#160;shares of common stock, no par value, and
    10,000,000&#160;shares of preferred stock, no par value. On
    November&#160;30, 2005, we had 992,057,807&#160;shares of common
    stock outstanding. There were no shares of preferred stock
    outstanding.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">COMMON
    STOCK</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We do not intend to offer shares of our common stock pursuant to
    this prospectus except upon the conversion or exchange of debt
    securities or preferred stock that we offer under this
    prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each share of common stock is entitled to one vote on all
    matters properly presented at a meeting of shareholders.
    Shareholders are not entitled to cumulative voting in the
    election of directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The number of our directors is determined by our bylaws. The
    bylaws currently set the number of directors at up to sixteen.
    Our board of directors is divided into three classes of as equal
    a number of directors as possible. The term of office of each
    class is three years, with each term expiring in a different
    year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Interested Stockholders.</I>&#160;&#160;Our articles of
    incorporation prohibit, except under certain circumstances, us
    (or any of our subsidiaries) from engaging in certain
    significant business transactions with a &#147;major
    stockholder.&#148; A &#147;major stockholder&#148; is a person
    who, without the prior approval of our board of directors,
    acquires beneficial ownership of five percent or more of our
    outstanding voting stock. Prohibited transactions include, among
    others:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">any merger with, disposition of
    assets to, acquisition by us of the assets of, issuance of
    securities of ours to, or acquisition by us of securities of, a
    major stockholder;
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">any reclassification of our voting
    stock or of any subsidiary beneficially owned by a major
    stockholder; or
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">any partial or complete
    liquidation, spin off, split off or split up of us or any
    subsidiary.
    </FONT>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The above prohibitions do not apply, in general, if the specific
    transaction is approved by:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">our board of directors prior to
    the major stockholder involved having become a major stockholder;
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">a vote of at least 80% of the
    &#147;continuing directors&#148; (defined as those members of
    our board prior to the involvement of the major stockholder);
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">a majority of the &#147;continuing
    directors&#148; if the major stockholder obtained unanimous
    board approval to become a major stockholder;
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">a vote of 95% of the outstanding
    shares of our voting stock other than shares held by the major
    stockholder; or
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">a majority vote of the shares of
    voting stock and the shares of voting stock owned by
    stockholders other than any major stockholder if certain other
    conditions are met.
    </FONT>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">17</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our articles of incorporation also provide that during the time
    a major stockholder exists, we may voluntarily dissolve only
    upon the unanimous consent of our stockholders or an affirmative
    vote of at least two-thirds of our board of directors and the
    holders of at least two-thirds of the shares entitled to vote on
    such a dissolution and of each class of shares entitled to vote
    on such a dissolution as a class, if any.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Shareholder Rights Plan.</I>&#160;&#160;We have adopted a
    shareholder rights plan (the &#147;Rights Plan&#148;) which
    provides that one right to purchase&#160;1/1,000th of a share of
    our Series&#160;RP preferred stock (the &#147;Rights&#148;) is
    attached to each outstanding share of our common stock. The
    Rights have certain anti-takeover effects and are intended to
    discourage coercive or unfair takeover tactics and to encourage
    any potential acquiror to negotiate a price fair to all
    shareholders. The Rights may cause substantial dilution to an
    acquiring party that attempts to acquire us on terms not
    approved by our board, but they will not interfere with any
    merger or other business combination that is approved by our
    board.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Rights are attached to the shares of our common stock. The
    Rights are not presently exercisable. At the time a party
    acquires beneficial ownership of 15% or more of the outstanding
    shares of our common stock or commences or publicly announces
    for the first time a tender offer to do so, the Rights will
    separate from the common stock and will become exercisable. Each
    Right entitles the holder to purchase 1/1,000th&#160;share of
    Series&#160;RP preferred stock, for an exercise price that is
    currently $200&#160;per share. Once the Rights become
    exercisable, any Rights held by the acquiring party will be void
    and, for the next 60&#160;days, all other holders of Rights will
    receive upon exercise of the Right that number of shares of our
    common stock having a market value of two times the exercise
    price of the Right. The Rights, which expire on January&#160;4,
    2011, may be redeemed by us for $0.001&#160;per right prior to
    becoming exercisable. Until a Right is exercised, the holder of
    that Right will have no rights as a shareholder, including,
    without limitation, the right to vote or receive dividends.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">PREFERRED
    STOCK</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In this section we describe the general terms that will apply to
    preferred stock that we may offer by this prospectus in the
    future. When we issue a particular series, we will describe the
    specific terms of the series of preferred stock in a prospectus
    supplement. The description of provisions of our preferred stock
    included in any prospectus supplement may not be complete and is
    qualified in its entirety by reference to the description in our
    articles of incorporation and our certificate of designation,
    which will describe the terms of the offered preferred stock and
    be filed with the SEC at the time of sale of that preferred
    stock. At that time, you should read our articles of
    incorporation and any certificate of designation relating to
    each particular series of preferred stock for provisions that
    may be important to you.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors is authorized to provide for the issuance
    from time to time of preferred stock in series and, as to each
    series, to fix the designation, the dividend rate, whether
    dividends are cumulative, the preferences which dividends will
    have with respect to any other class or series of capital stock,
    the voting rights, the voluntary and involuntary liquidation
    prices, the conversion or exchange privileges, the redemption
    prices and the other terms of redemption, and the terms of any
    purchase or sinking funds applicable to the series. The terms of
    any series of preferred stock will be described in a prospectus
    supplement. Cumulative dividends, dividend preferences and
    conversion, exchange and redemption provisions, to the extent
    that some or all of these features may be present when shares of
    our preferred stock are issued, could have an adverse effect on
    the availability of earnings for distribution to the holders of
    common stock or for other corporate purposes.
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">18</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "Description of depositary shares" -->

</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='310'></A><FONT style="font-family: Arial, Helvetica">Description
    of depositary shares
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We describe in this section the general terms of the depositary
    shares. We will describe the specific terms of the depositary
    shares in a prospectus supplement. The following description of
    the deposit agreement, the depositary shares and the depositary
    receipts is only a summary and you should refer to the forms of
    the deposit agreement and depositary share certificate that will
    be filed with the SEC in connection with any particular offering
    of depositary shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">GENERAL</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may offer fractional interests in preferred stock, rather
    than full shares of preferred stock. In that case, we will
    provide for the issuance by a depositary to investors of
    receipts for depositary shares, each representing a fractional
    interest in a share of a particular series of preferred stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The shares of any series of preferred stock underlying the
    depositary shares will be deposited under a separate deposit
    agreement between us and the depositary, which must be a bank or
    trust company having its principal office in the United States
    and having a combined capital and surplus of at least
    $50&#160;million. The applicable prospectus supplement will set
    forth the name and address of the depositary. Subject to the
    terms of the deposit agreement, each owner of a depositary share
    will have a fractional interest in all the rights and
    preferences of the preferred stock underlying such depositary
    share. Those rights include any dividend, voting, redemption,
    conversion and liquidation rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The depositary shares will be evidenced by depositary receipts
    issued under the deposit agreement. If you purchase fractional
    interests in shares of the related series of preferred stock,
    you will receive depositary receipts as described in the
    applicable prospectus supplement. While the final depositary
    receipts are being prepared, we may order the depositary to
    issue temporary depositary receipts substantially identical to
    the final depositary receipts although not in final form. The
    holders of the temporary depositary receipts will be entitled to
    the same rights as if they held the depositary receipts in final
    form. Holders of the temporary depositary receipts can exchange
    them for the final depositary receipts at our expense.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">WITHDRAWAL</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise indicated in the applicable prospectus
    supplement and unless the related depositary shares have been
    called for redemption, if you surrender depositary receipts at
    the principal office of the depositary, then you are entitled to
    receive at that office the number of shares of preferred stock
    and any money or other property represented by the depositary
    shares. We will not issue partial shares of preferred stock. If
    you deliver depositary receipts evidencing a number of
    depositary shares that represent more than a whole number of
    shares of preferred stock, the depositary will issue to you a
    new depositary receipt evidencing the excess number of
    depositary shares at the same time that the preferred stock is
    withdrawn. Holders of shares of preferred stock received in
    exchange for depositary shares will no longer be entitled to
    deposit those shares under the deposit agreement or to receive
    depositary shares in exchange for those shares of preferred
    stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">DIVIDENDS AND
    OTHER DISTRIBUTIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The depositary will distribute all cash dividends or other cash
    distributions received with respect to the preferred stock to
    the record holders of depositary shares representing the
    preferred stock in proportion to the numbers of depositary
    shares owned by the holders on the relevant record date. The
    depositary will distribute only the amount that can be
    distributed without attributing to any holder of depositary
    shares a fraction of one cent. The balance not distributed will
    be added to and treated as part of the next sum received by the
    depositary for distribution to record holders of depositary
    shares.
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">19</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If there is a distribution other than in cash, the depositary
    will distribute property to the holders of depositary shares,
    unless the depositary determines that it is not feasible to make
    such distribution. If this occurs, the depositary may, with our
    approval, sell the property and distribute the net proceeds from
    the sale to the holders of depositary shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">CONVERSION,
    EXCHANGE AND REDEMPTION</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise specified in the applicable prospectus
    supplement, neither the depositary shares nor the series of
    preferred stock underlying the depositary shares will be
    convertible or exchangeable into any other class or series of
    our capital stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the series of the preferred stock underlying the depositary
    shares is subject to redemption, the depositary shares will be
    redeemed from the redemption proceeds, in whole or in part, of
    the series of the preferred stock held by the depositary. The
    redemption price per depositary share will bear the same
    relationship to the redemption price per share of preferred
    stock that the depositary share bears to the underlying
    preferred stock. Whenever we redeem preferred stock held by the
    depositary, the depositary will redeem, as of the same
    redemption date, the number of depositary shares representing
    the preferred stock redeemed. If less than all the depositary
    shares are to be redeemed, the depositary shares to be redeemed
    will be selected by lot or pro rata as determined by the
    depositary.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">VOTING</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon receipt of notice of any meeting at which the holders of
    the preferred stock are entitled to vote, the depositary will
    mail Information about the meeting contained in the notice to
    the record holders of the depositary shares relating to the
    preferred stock. Each record holder of the depositary shares on
    the record date (which will be the same date as the record date
    for the preferred stock) will be entitled to instruct the
    depositary as to how the preferred stock underlying the
    holder&#146;s depositary shares should be voted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The depositary will try, if practical, to vote the preferred
    stock underlying the depositary shares according to the
    instructions received. We will agree to take all action
    requested by and deemed necessary by the depositary in order to
    enable the depositary to vote the preferred stock in that
    manner. The depositary will not vote any preferred stock for
    which it does not receive specific instructions from the holders
    of the depositary shares relating to the preferred stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">AMENDMENT AND
    TERMINATION OF THE DEPOSIT AGREEMENT</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may amend the form of depositary receipt evidencing the
    depositary shares and any provision of the deposit agreement by
    agreement with the depositary at any time. Any amendment that
    materially and adversely alters the rights of the existing
    holders of depositary shares will not be effective, however,
    unless approved by the record holders of at least a majority of
    the depositary shares then outstanding. A deposit agreement may
    be terminated by us or the depositary only if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">all outstanding depositary shares
    relating to the deposit agreement have been redeemed or
    converted into or exchanged for other securities; or
    </FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT><FONT style="font-size: 10pt">&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-size: 10pt">there has been a final
    distribution on the underlying preferred stock in connection
    with our liquidation, dissolution or winding up and the
    distribution has been made to the holders of the related
    depositary shares
    </FONT>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">CHARGES OF
    DEPOSITARY</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will pay all transfer and other taxes and governmental
    charges arising solely from the existence of the depositary
    arrangements. We will pay charges of the depositary in
    connection with its duties under
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">20</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the deposit agreement. Holders of depositary shares will pay
    transfer and other taxes and governmental charges and any other
    charges that are stated to be their responsibility in the
    deposit agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">MISCELLANEOUS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The depositary will forward to the holders of depositary shares
    all reports and communications that we must furnish to the
    holders of the preferred stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Neither we nor the depositary will be liable if either of us is
    prevented or delayed by law or any circumstance beyond our
    control in performing our respective obligations under the
    deposit agreement. Our obligations and the depositary&#146;s
    obligations under the deposit agreement will be limited to
    performance in good faith of duties set forth in the deposit
    agreement. Neither we nor the depositary will be obligated to
    prosecute or defend any legal proceeding connected with any
    depositary shares or preferred stock unless satisfactory
    indemnity is furnished. We and the depositary may rely upon
    written advice of counsel or accountants, or information
    provided by persons presenting preferred stock for deposit,
    holders of depositary shares or other persons believed to be
    competent and on documents believed to be genuine.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">RESIGNATION AND
    REMOVAL OF DEPOSITARY</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The depositary may resign at any time by delivering notice to
    us. We may also remove the depositary at any time. Resignations
    or removals will take effect upon the appointment of a successor
    depositary and its acceptance of the appointment. The successor
    depositary must be appointed within 60&#160;days after delivery
    of the notice of resignation or removal.
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">21</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "Plan of distribution" -->

</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='311'></A><FONT style="font-family: Arial, Helvetica">Plan
    of distribution
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may sell the securities being offered hereby:
    (i)&#160;directly to purchasers, (ii)&#160;through agents,
    (iii)&#160;through dealers, (iv)&#160;through underwriters, or
    (v)&#160;through a combination of any such methods of sale.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The distribution of the securities may be effected from time to
    time in one or more transactions either (i)&#160;at a fixed
    price or prices, which may be changed, (ii)&#160;at market
    prices prevailing at the time of sale, (iii)&#160;at prices
    related to such prevailing market prices, or (iv)&#160;at
    negotiated prices.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Offers to purchase the securities may be solicited directly by
    us or by agents designated by us from time to time. Any such
    agent, which may be deemed to be an underwriter as that term is
    defined in the Securities Act, involved in the offer or sale of
    the debt securities in respect of which this prospectus is
    delivered will be named, and any commissions payable by us to
    such agent will be set forth in the prospectus supplement
    relating to the offering of the securities. Unless otherwise
    indicated in the applicable prospectus supplement, any such
    agent will be acting on a best efforts basis for the period of
    its appointment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a dealer is utilized in the sale of the securities in respect
    of which this prospectus is delivered, we will sell the
    securities to the dealer, as principal. The dealer, which may be
    deemed to be an underwriter as that term is defined in the
    Securities Act, may then resell the securities to the public at
    varying prices to be determined by such dealer at the time of
    resale. Dealer trading may take place in certain of the
    securities, including securities not listed on any securities
    exchange.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If an underwriter or underwriters are utilized in the sale, we
    will execute an underwriting agreement with such underwriters at
    the time of sale to them and the names of the underwriters will
    be set forth in the applicable prospectus supplement, which will
    be used by the underwriters to make resales of the securities in
    respect of which this prospectus is delivered to the public. The
    obligations of underwriters to purchase securities will be
    subject to certain conditions precedent and the underwriters
    will be obligated to purchase all of the securities of a series
    if any are purchased.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Underwriters, dealers, agents and other persons may be entitled,
    under agreements that may be entered into with us, to
    indemnification against certain civil liabilities, including
    liabilities under the Securities Act, or to contribution with
    respect to payments that they may be required to make in respect
    thereof. Underwriters, dealers and agents may engage in
    transactions with, or perform services for, us in the ordinary
    course of business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as indicated in the applicable prospectus supplement, the
    securities are not expected to be listed on a securities
    exchange, except for our common stock, which is listed on The
    New York Stock Exchange, and any underwriters or dealers will
    not be obligated to make a market in securities. We cannot
    predict the activity or liquidity of any trading in the
    securities.
</DIV>

<DIV style="margin-top: 15pt; font-size: 1pt">&nbsp;</DIV>


<!-- link1 "Legal matters" -->


<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='312'></A><FONT style="font-family: Arial, Helvetica">Legal
    matters
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The legality of the securities offered by this prospectus will
    be passed upon by Heller Ehrman LLP, Seattle, Washington. As of
    November&#160;30, 2005, Heller Ehrman LLP and individual
    attorneys at the firm who participated in this transaction owned
    an aggregate of 12,992&#160;shares of our common stock.
</DIV>


<!-- link1 "Experts" -->


<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='313'></A><FONT style="font-family: Arial, Helvetica">Experts
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The auditors of the Issuer are Deloitte&#160;&#038; Touche LLP
    (&#147;Deloitte&#148;), an independent registered public
    accounting firm, who have audited the Issuer&#146;s consolidated
    financial statements, without qualification,
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">22</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    in accordance with generally accepted auditing standards in the
    United States of America for each of the financial periods ended
    December&#160;31, 2004, 2003 and 2002, respectively, and who
    have audited management&#146;s report on the effectiveness of
    internal control over financial reporting for the year ended
    December&#160;31, 2004. Deloitte&#146;s report on the
    Issuer&#146;s consolidated financial statements for the year
    ended December&#160;31, 2003 includes an explanatory paragraph
    referring to the Issuer&#146;s adoption of Statement of
    Financial Accounting Standards (SFAS)&#160;No.&#160;142,
    Goodwill and Other Intangible Assets, on January&#160;1, 2002
    and an explanatory paragraph referring to the Issuer&#146;s 2002
    restatement of Note&#160;2 to the consolidated financial
    statements. Deloitte&#146;s report on the Issuer&#146;s
    consolidated financial statements for the year ended
    December&#160;31, 2002 includes an explanatory paragraph
    referring to the Issuer&#146;s adoption of
    a)&#160;SFAS&#160;No.&#160;133, Accounting for Derivative
    Instruments and Hedging Activities, as amended, on
    January&#160;1, 2001, b)&#160;SFAS&#160;No.&#160;142, Goodwill
    and Other Intangible Assets, on January&#160;1, 2002, and
    c)&#160;SFAS&#160;No.&#160;147, Acquisitions of Certain
    Financial Institutions, on October&#160;1, 2002.
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">23</FONT></B>
</DIV>
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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