<SUBMISSION>
<ACCESSION-NUMBER>0000950133-08-000875
<TYPE>424B5
<PUBLIC-DOCUMENT-COUNT>3
<FILING-DATE>20080228
<DATE-OF-FILING-DATE-CHANGE>20080228
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>NATIONAL RETAIL PROPERTIES, INC.
<CIK>0000751364
<ASSIGNED-SIC>6798
<IRS-NUMBER>561431377
<STATE-OF-INCORPORATION>MD
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>424B5
<ACT>33
<FILE-NUMBER>333-132095
<FILM-NUMBER>08651604
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>450 S ORANGE AVE
<STREET2>SUITE 900
<CITY>ORLANDO
<STATE>FL
<ZIP>32801
<PHONE>407-666-7348
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>450 SOUTH ORANGE AVE
<STREET2>SUITE 900
<CITY>ORLANDO
<STATE>FL
<ZIP>32801
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>COMMERCIAL NET LEASE REALTY INC
<DATE-CHANGED>19930510
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>CNL REALTY INVESTORS INC /DE/
<DATE-CHANGED>19930429
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>CNL REALTY INVESTORS INC
<DATE-CHANGED>19920831
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>424B5
<SEQUENCE>1
<FILENAME>w50382b5e424b5.htm
<DESCRIPTION>424(B)5
<TEXT>
<HTML>
<HEAD>
<TITLE>e424b5</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

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



<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>CALCULATION OF REGISTRATION FEE</B></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
</TR><TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="9" style="border-bottom: 3px double #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
<TD width="1%">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount to be registered/Proposed </B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
<TD width="1%">&nbsp;</TD>

    <TD nowrap align="center"><B>Title of Securities</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>maximum offering price per unit/Proposed</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount of</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
<TD width="1%">&nbsp;</TD>

    <TD nowrap align="center"><B>to be Registered</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>maximum offering price (1)(2)</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Registration Fee(1)(2)</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
                    <TD valign="top" style="border-top: 2px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">
Convertible Senior Notes</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>

<TD align="center" valign="top" style="border-top: 2px solid #000000">$253,000,000
</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>

<TD align="center" valign="top" style="border-top: 2px solid #000000">$9,943</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
                    <TD valign="top" style="border-top: 2px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">
Common Stock, par value $.01 per share</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>

<TD align="center" valign="top" style="border-top: 2px solid #000000">&#150;
</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>

<TD align="center" valign="top" style="border-top: 2px solid #000000">&#150;</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>


<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="9" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

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


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>This filing fee is calculated in accordance with Rule&#160;457(r) and relates to the Registration
Statement on Form&#160;S-3 (No.&#160;333-132095) filed by National Retail Properties, Inc. on February&#160;28, 2006.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>There are also registered an indeterminate number of shares of common stock into which the Convertible Senior Notes
may be converted.  Pursuant to Rule&#160;457(i), no separate registration fee is payable where securities and securities into
which conversion is offered are registered at the same time and no additional consideration is payable upon conversion.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">
&#160;</DIV>














<DIV align="right" 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">Filed
    Pursuant to Rule No.&#160;424(b)(5)</FONT></B>
</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>Registration Number 333-132095</B>
</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>PROSPECTUS SUPPLEMENT</B>
</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>(To Prospectus Dated February&#160;28, 2006)</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="w50382b5w5038200.gif" alt="LOGO"><B> </B>
</DIV>



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

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

    <B><FONT style="font-family: 'Times New Roman', Times">$220,000,000</FONT></B>
</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">
    <B><FONT style="font-size: 18pt">5.125%&#160;Convertible Senior
    Notes due 2028</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: 14%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=504 length=72 -->

<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">
    The notes will bear interest at the rate of 5.125% per year,
    payable on June 15 and December 15 of each year, beginning
    June&#160;15, 2008. The notes will mature on June&#160;15, 2028.
    However, on or after June&#160;17, 2013, we may redeem the notes
    in whole or in part for cash at 100% of the principal amount of
    the notes to be redeemed plus accrued and unpaid interest. We
    may not redeem the notes prior to June&#160;17, 2013 except to
    the extent necessary to preserve our status as a real estate
    investment trust. On June&#160;17, 2013, June&#160;15, 2018 and
    June&#160;15, 2023, as well as following the occurrence of a
    fundamental change transaction, holders may require us to
    repurchase notes in whole or in part for cash at 100% of the
    principal amount of the notes to be repurchased plus accrued and
    unpaid interest. We will issue the notes only in registered form
    in denominations of $1,000.
</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: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders may convert their notes at any time on or after
    June&#160;15, 2027. Prior to June&#160;15, 2027, holders may
    convert their notes only under the following circumstances:
    (i)&#160;if the closing sale price of our common stock reaches a
    specified threshold over a specified time period; (ii)&#160;if
    the trading price of the notes is below a specified threshold
    for a specified time period; (iii)&#160;if the notes have been
    called for redemption; (iv)&#160;upon the occurrence of the
    specified transactions described in this prospectus supplement;
    or (v)&#160;if our common stock ceases to be listed on a
    U.S.&#160;national securities exchange. Upon conversion of each
    $1,000 principal amount of notes, we will deliver (i)&#160;cash
    in an amount equal to the sum of the amounts calculated for each
    of the 20 trading days during the observation period (as
    described herein) of the lesser of the daily conversion value
    (as described herein) and $50 (representing 1/20th&#160;of
    $1,000), and (ii), at our option, cash, common stock or a
    combination thereof, in an amount equal to the sum of the
    amounts calculated for each of the 20 trading days during the
    observation period of any excess of the daily conversion value
    above $50. We refer to this settlement method as &#147;par cash
    settlement.&#148;
</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: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The initial conversion rate for each $1,000 principal amount of
    notes will be 39.3459&#160;shares of our common stock. This is
    equivalent to an initial conversion price of approximately
    $25.42 per share of common stock. For a discussion of the
    circumstances in which the conversion rate will be subject to
    adjustment, see &#147;Description of Notes&#160;&#151;
    Conversion Rate Adjustments&#148; in this prospectus supplement.
    In addition, if certain fundamental change transactions occur on
    or prior to June&#160;17, 2013 and a holder elects to convert
    notes in connection with any such transaction, we will increase
    the conversion rate in connection with such conversion. We do
    not intend to apply for listing of the notes on any national
    securities exchange or for quotation of the notes on any
    automated dealer quotation system. Our common stock is listed on
    the New York Stock Exchange (the &#147;NYSE&#148;) under the
    symbol &#147;NNN.&#148; On February&#160;27, 2008, the last
    reported sales price for our common stock on the NYSE was
    $21.91&#160;per share.
</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: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes will be our senior unsecured obligations and will rank
    equally with all of our other senior unsecured indebtedness and
    be effectively subordinated to our secured indebtedness and to
    all liabilities and preferred equity of our subsidiaries.
</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: 14%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=504 length=72 -->

<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: 4%; font-size: 12pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Investing in the notes and our common stock involves risks.
    See &#147;Risk Factors&#148; beginning on
    <FONT style="white-space: nowrap">page&#160;S-5</FONT>
    and beginning on page&#160;9 of our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K,</FONT>
    as amended, for the fiscal year ended December&#160;31, 2007,
    which is incorporated herein by reference, for risks relating to
    an investment in the notes and our common stock.</B>
</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: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of these
    securities or determined if this prospectus supplement or the
    accompanying prospectus is truthful or complete. Any
    representation to the contrary is a criminal offense.
</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: 14%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=504 length=72 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</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: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="79%">&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="2%">&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 -->
    <TD width="2%">&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 -->
</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 Note</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>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</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">
    Public Offering Price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,000
</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">
    220,000,000
</TD>
<TD 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">
    Underwriting Discount
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20
</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">
    4,400,000
</TD>
<TD 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">
    Proceeds to us (before expenses)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    980
</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">
    215,600,000
</TD>
<TD 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: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters will have the option to purchase up to an
    additional $33,000,000 in aggregate principal amount of notes
    within 30&#160;days of the date of this prospectus supplement to
    cover over-allotments, 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: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters expect to deliver the notes in book-entry only
    form through the facilities of The Depository Trust&#160;Company
    against payment in New York, New York on or about March&#160;4,
    2008.
</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">
    Joint Book-Running Managers
</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="33%"></TD>
    <TD width="33%"></TD>
    <TD width="33%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-size: 18pt; font-family: 'Times New Roman', Times">Citi</FONT></B></TD>
    <TD nowrap align="center">    <B><FONT style="font-size: 18pt; font-family: 'Times New Roman', Times">
    Banc of America Securities
    LLC&#160;&#160;&#160;&#160;&#160;&#160;&#160;</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 18pt; font-family: 'Times New Roman', Times">
    Wachovia Securities</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: 14%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=504 length=72 -->

<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">
    February&#160;27, 2008
</DIV>

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

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

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

<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 colspan="5" align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Prospectus Supplement</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    About this Prospectus Supplement
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-i
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Forward-Looking Statements
</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 nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Summary
</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">
    Risk Factors
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Use of Proceeds
</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">
    Ratios of Earnings to Fixed Charges and Earnings to Combined
    Fixed Charges and Preferred Stock Dividends
</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">
    Description of Notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-12
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Certain U.S. Federal Income Tax Considerations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-33
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Underwriting
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-38
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Legal Matters
</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 nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Experts
</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">
    Where You Can Find More Information
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-42
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="5">
&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">
    About this Prospectus
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    ii
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Where You Can Find More Information
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Commercial Net Lease Realty, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Use of Proceeds
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ratios of Earnings to Fixed Charges and Preferred Stock Dividends
</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">
    Description of Debt Securities
</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">
    Description of Preferred Stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Description of Depositary Shares
</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">
    Description of Common Stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Description of Warrants
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Federal Income Tax Considerations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Plan of Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Legal Matters
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Experts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36
</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>

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

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

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='102'>
<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">ABOUT
    THIS PROSPECTUS SUPPLEMENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="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 rely only on the information contained in or
    incorporated by reference into this prospectus supplement, the
    accompanying prospectus and any &#148;free writing
    prospectus&#148; we may authorize to be delivered to you. We
    have not authorized anyone to provide you with different or
    additional information. We are offering to sell, and seeking
    offers to buy, the notes only in jurisdictions where offers and
    sales are permitted. You should not assume that the information
    appearing in this prospectus supplement, the accompanying
    prospectus, any free writing prospectus or the documents
    incorporated by reference is accurate as of any date other than
    their respective dates. Our business, financial condition,
    results of operations and prospects may have changed since those
    dates.
</DIV>

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

<DIV align="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 adds to and updates information contained in
    the accompanying prospectus and the documents incorporated by
    reference into the accompanying prospectus. The second part is
    the accompanying prospectus, which gives more general
    information, some of which may not apply to this offering of
    notes. This prospectus supplement adds, updates and changes
    information contained in the accompanying prospectus and the
    information incorporated by reference.
</DIV>

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

<DIV align="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 this prospectus supplement, the words &#147;we,&#148;
    &#147;our,&#148; &#147;ours&#148; and &#147;us&#148; refer to
    National Retail Properties, Inc. and its subsidiaries and joint
    ventures, unless the context indicates otherwise. The following
    summary contains basic information about the offering.
</DIV>

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

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='103'>
<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">FORWARD-LOOKING
    STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Statements contained in this prospectus supplement and the
    accompanying prospectus, including the documents that are
    incorporated by reference, that are not historical facts are
    forward-looking statements within the meaning of
    Section&#160;27A of the Securities Act of 1933, as amended, and
    Section&#160;21E of the Securities Exchange Act of 1934, as
    amended. Also, when we use any of the words
    &#147;anticipate,&#148; &#147;assume,&#148; &#147;believe,&#148;
    &#147;estimate,&#148; &#147;expect,&#148; &#147;intend,&#148; or
    similar expressions, we are making forward-looking statements.
    Forward-looking statements in this prospectus supplement and the
    accompanying prospectus, including any documents that are
    incorporated by reference, include statements regarding the
    security of our rental income and our leases, possible property
    acquisitions and dispositions, our access to capital, expansion
    of our portfolio, our ability to pay distributions, policies and
    plans regarding investments, our tax status as a real estate
    investment trust and the ability of our properties to compete
    effectively. In part, we have based these forward-looking
    statements on possible or assumed future results of our
    operations. These are forward-looking statements and their
    ultimate outcomes cannot be guaranteed. These statements are
    based on our present intentions and on our present expectations
    and assumptions. These statements, intentions, expectations and
    assumptions involve risks and uncertainties, some of which are
    beyond our control, that could cause actual results or events to
    differ materially from those we anticipate or project, such as:
</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 ability of our tenants to make payments under their
    respective leases, including our reliance on certain major
    tenants and our ability to re-lease properties that are
    currently vacant or that become vacant;
</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 ability to locate suitable tenants for our properties;
</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 real estate market conditions;
</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 inherent risks associated with owning real estate
    (including: local real estate market conditions, governing laws
    and regulations and illiquidity of real estate investments);
</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 ability to sell properties at an attractive price;
</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 ability of borrowers to make payments of principal and
    interest under structured finance investments we make to such
    borrowers;
</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 ability to gain access to the underlying collateral for any
    structured finance investments to borrowers;
</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 ability to repay debt financing obligations;
</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 ability to refinance amounts outstanding under our credit
    facilities at maturity on terms favorable to 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">
    the loss of any member of our management team;
</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 ability to be in compliance with certain debt covenants;
</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 ability to integrate acquired properties and operations into
    existing operations;
</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">
    continued availability of proceeds from our debt or equity
    capital;
</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 availability of other debt and equity financing alternatives;
</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">
    market conditions affecting our equity capital;
</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 interest rates under our current credit facilities
    and under any additional variable rate debt arrangements that we
    may enter into in the future;
</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 ability to successfully implement our selective acquisition
    strategy or to fully realize the anticipated benefits of
    renovation or development projects;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-ii
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<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 ability to maintain internal controls and processes to
    ensure all transactions are accounted for properly, all relevant
    disclosures and filings are timely made in accordance with all
    rules and regulations, and any potential fraud or embezzlement
    is thwarted or detected;
</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 general economic conditions;
</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 U.S.&#160;federal or state tax rules or regulations
    that could have adverse tax consequences;&#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 ability to qualify as a real estate investment trust for
    U.S. 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">
    You should not place undue reliance on these forward-looking
    statements, as events described or implied in such statements
    may not occur. We undertake no obligation to update or revise
    any forward-looking statements as a result of new information,
    future events or otherwise.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-iii
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<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 -->
<A name='104'>
<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">SUMMARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="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>The following summary is qualified in its entirety by the
    more detailed information and consolidated financial statements
    and notes thereto appearing elsewhere in, or 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">The
    Company</FONT></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><I><FONT style="font-family: 'Times New Roman', Times">General</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 leading owner, operator, acquirer and developer of
    properties that are leased primarily to retail tenants under
    long term net leases (&#147;Investment Properties&#148;). As of
    December&#160;31, 2007, we owned 908 Investment Properties with
    aggregate gross leasable area of 10.6&#160;million square feet,
    located in 44&#160;states. These Investment Properties were
    leased to 198&#160;tenants in 35&#160;lines of trade, and our
    leases had a weighted average remaining lease term of
    13&#160;years.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additionally, we acquire, develop, own and operate an inventory
    of retail properties, directly or indirectly, in our taxable
    real estate investment trust (&#147;REIT&#148;) subsidiary
    entities for the purpose of selling the real estate to
    third-party purchasers (&#147;Inventory Properties&#148;). As of
    December&#160;31, 2007, we owned 56 Inventory Properties.
</DIV>

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

<DIV align="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 fully integrated REIT for U.S.&#160;federal income tax
    purposes, formed in 1984. Our executive offices are located at
    450&#160;S.&#160;Orange Avenue, Suite&#160;900, Orlando, Florida
    32801, and our telephone number is
    <FONT style="white-space: nowrap">(407)&#160;265-7348.</FONT>
</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><I><FONT style="font-family: 'Times New Roman', Times">Recent
    Developments</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>Second Quarter Dividend.</I>&#160;&#160;On February&#160;25,
    2008, we announced our intention to increase our quarterly
    common share dividend to $0.375 per share. This increase is
    scheduled to begin with the regular quarterly common share
    dividend expected to be declared in the second quarter of 2008.
</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">The
    Offering</FONT></B>
</DIV>

<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">
    Issuer</TD>
    <TD></TD>
    <TD valign="bottom">
    National Retail Properties, Inc.</TD>
</TR>


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

<TR>
    <TD valign="top">
    Notes Offered</TD>
    <TD></TD>
    <TD valign="bottom">
    $220.0&#160;million aggregate principal amount, or
    $253.0&#160;million aggregate principal amount if the
    underwriters&#146; over-allotment option is exercised in full.</TD>
</TR>


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

<TR>
    <TD valign="top">
    Ranking of Notes</TD>
    <TD></TD>
    <TD valign="bottom">
    The notes will be our senior unsecured obligations and will rank
    equally with all of our other senior unsecured indebtedness.
    However, the notes will be effectively subordinated to all of
    our secured indebtedness (to the extent of the collateral
    securing the same).</TD>
</TR>


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

<TR>
    <TD valign="top">
    Interest</TD>
    <TD></TD>
    <TD valign="bottom">
    The notes will bear interest at a rate of 5.125% per year.
    Interest will be payable semi-annually in arrears on June 15 and
    December 15 of each year, beginning June&#160;15, 2008.</TD>
</TR>


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

<TR>
    <TD valign="top">
    Maturity</TD>
    <TD></TD>
    <TD valign="bottom">
    The notes will mature on June&#160;15, 2028 unless previously
    redeemed, repurchased or converted in accordance with their
    terms prior to such date.</TD>
</TR>


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

<TR>
    <TD valign="top">
    Redemption of Notes at Our Option</TD>
    <TD></TD>
    <TD valign="bottom">
    Prior to June&#160;17, 2013, we may not redeem the notes except
    to preserve our status as a REIT for U.S. federal income tax
    purposes. On or after June&#160;17, 2013, we may redeem the
    notes in whole or in part. In either case, redemptions shall be
    made upon not less than 30 nor more than 60&#160;days&#146;
    prior written notice to holders of the </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-1
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<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">
    notes, for cash equal to 100% of the principal amount of the
    notes to be redeemed, plus any unpaid interest accrued to, but
    not including, the redemption date.</TD>
</TR>


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

<TR>
    <TD valign="top">
    Repurchase of Notes at Each Holder&#146;s Option on Certain Dates</TD>
    <TD></TD>
    <TD valign="bottom">
    Holders of notes may require us to repurchase their notes in
    whole or in part on June&#160;17, 2013, June&#160;15, 2018 and
    June&#160;15, 2023 for cash equal to 100% of the principal
    amount of the notes to be repurchased, plus any unpaid interest
    accrued to, but not including, the repurchase date.</TD>
</TR>


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

<TR>
    <TD valign="top">
    Repurchase of Notes at Each Holder&#146;s Option Upon
    Fundamental Change Transactions</TD>
    <TD></TD>
    <TD valign="bottom">
    If we undergo a fundamental change as described in this
    prospectus supplement, holders of notes may require us to
    repurchase their notes in whole or in part for cash equal to
    100% of the principal amount of the notes to be repurchased,
    plus any unpaid interest accrued to, but not including, the
    repurchase date.</TD>
</TR>


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

<TR>
    <TD valign="top">
    Conversion Rights</TD>
    <TD></TD>
    <TD valign="bottom">
    Holders may convert their notes based on the applicable
    conversion rate (described below) prior to the close of business
    on the business day immediately preceding the stated maturity
    date at any time on or after June&#160;15, 2027.</TD>
</TR>


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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    In addition, holders may convert their notes based on the
    applicable conversion rate prior to June&#160;15, 2027 but only
    under any of the following circumstances:</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;during any calendar quarter beginning after
    March&#160;31, 2008 (and only during such calendar quarter), if,
    and only if, the closing sale price of our common stock for at
    least 20 trading days (whether or not consecutive) in the period
    of 30 consecutive trading days ending on the last trading day of
    the preceding calendar quarter is greater than 130% of the
    conversion price per share of common stock in effect on the
    applicable trading day;</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;during the five consecutive business day period
    following any 10 consecutive
    <FONT style="white-space: nowrap">trading-day</FONT>
    period in which the trading price of the notes was less than 98%
    of the product of the closing sale price of our common stock
    multiplied by the applicable conversion rate on each applicable
    trading day;</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;at any time prior to the close of business on the
    second business day prior to the redemption date if those notes
    have been called for redemption;</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;upon the occurrence of specified transactions
    described under &#147;Description of Notes&#160;&#151;
    Conversion Rights&#148; in this prospectus supplement; 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;if our common stock is not listed on a national
    securities exchange.</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">
    By delivering to the holder cash, common stock or a combination
    thereof, we will satisfy our obligation with respect to the
    notes tendered for conversion. Accordingly, upon conversion of a
    note, accrued and unpaid interest will be deemed to be paid in
    full, rather than cancelled, extinguished or forfeited.</TD>
</TR>

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

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    <BR>
    S-2
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<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">
    Conversion Rate</TD>
    <TD></TD>
    <TD valign="bottom">
    The initial conversion rate for each $1,000 principal amount of
    notes is 39.3459&#160;shares of our common stock. This is
    equivalent to an initial conversion price of $25.42 per share of
    common stock. In addition, if certain fundamental change
    transactions occur on or prior to June&#160;17, 2013 and a
    holder elects to convert notes in connection with any such
    transaction, we will increase the conversion rate in connection
    with such conversion by a number of additional shares of common
    stock based on the date such transaction becomes effective and
    the price paid per share of common stock in such transaction as
    described under &#147;Description of Notes&#160;&#151;
    Conversion Rate Adjustments&#160;&#151; Make Whole Upon Certain
    Fundamental Change Transactions&#148; in this prospectus
    supplement. The conversion rate may also be adjusted under
    certain other circumstances, including the payment of cash
    dividends in excess of $0.375 per share (subject to adjustments
    in certain circumstances), but will not be adjusted for accrued
    and unpaid interest on the notes. See &#147;Description of
    Notes&#160;&#151; Conversion Rate Adjustments&#148; in this
    prospectus supplement.</TD>
</TR>


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

<TR>
    <TD valign="top">
    Conversion Settlement</TD>
    <TD></TD>
    <TD valign="bottom">
    Upon conversion of each $1,000 principal amount of notes, we
    will deliver (i)&#160;cash in an amount equal to the sum of the
    amounts calculated for each of the 20 trading days during the
    observation period (as described herein) of the lesser of the
    daily conversion value (as described herein) and $50
    (representing 1/20th of $1,000), and (ii), at our option, cash,
    common stock or a combination thereof, in an amount equal to the
    sum of the amounts calculated for each of the 20 trading days
    during the observation period of any excess of the daily
    conversion value above $50. We refer to this type of settlement
    as &#147;par cash settlement.&#148; See &#147;Description of
    Notes&#160;&#151; Conversion Settlement.&#148;</TD>
</TR>


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

<TR>
    <TD valign="top">
    Restrictions on Ownership</TD>
    <TD></TD>
    <TD valign="bottom">
    In order to assist us in maintaining our qualification as a REIT
    for U.S. federal income tax purposes, no person may own, or be
    deemed to own by virtue of the attribution rules of the Internal
    Revenue Code of 1986, as amended (hereinafter referred to as the
    &#147;Internal Revenue Code&#148; or the &#147;Code&#148;), more
    than 9.8% of the value of our outstanding capital stock, subject
    to certain exceptions. Notwithstanding any other provision of
    the notes, no holder of notes will be entitled to convert such
    notes for our common stock to the extent that receipt of such
    common stock would cause such holder (together with such
    holder&#146;s affiliates) to exceed the ownership limit
    contained in our articles of incorporation. See
    &#147;Description of Common Stock&#151;&#160;Restrictions on
    Ownership&#148; in the accompanying prospectus.</TD>
</TR>


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

<TR>
    <TD valign="top">
    No Shareholder Rights for Holders of Notes</TD>
    <TD></TD>
    <TD valign="bottom">
    Holders of notes, as such, will not have any rights as our
    shareholders (including, without limitation, voting rights and
    rights to receive dividends or other distributions on our common
    stock).</TD>
</TR>

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

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    <BR>
    S-3
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<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">
    Trading</TD>
    <TD></TD>
    <TD valign="bottom">
    The notes are a new issue of securities, and there is currently
    no established trading market for the notes. An active or liquid
    market may not develop for the notes or, if developed, be
    maintained. We have not applied, and do not intend to apply, for
    the listing of the notes on any national securities exchange or
    for quotation on any automated dealer quotation system. Our
    common stock is listed on the NYSE under the symbol
    &#147;NNN.&#148;</TD>
</TR>


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

<TR>
    <TD valign="top">
    Book-Entry Form</TD>
    <TD></TD>
    <TD valign="bottom">
    The notes will be issued in book-entry only form and will be
    represented by one or more permanent global certificates
    deposited with a custodian for, and registered in the name of a
    nominee of, The Depository Trust&#160;Company, commonly known as
    DTC, in New York, New York. Beneficial interests in a global
    certificate representing the notes will be shown on, and
    transfers will be effected only through, records maintained by
    DTC and its direct and indirect participants and such interests
    may not be exchanged for certificated notes, except in limited
    circumstances described in &#147;Description of
    Notes&#160;&#151; Book-Entry Procedures&#148; in this prospectus
    supplement.</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 intend to use the net proceeds from the sale of the notes to
    repay borrowings under our credit facility, to fund future
    acquisitions and for general corporate purposes. See &#147;Use
    of Proceeds&#148; in this prospectus supplement.</TD>
</TR>


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

<TR>
    <TD valign="top">
    Tax</TD>
    <TD></TD>
    <TD valign="bottom">
    The notes and the common stock into which the notes are
    convertible are subject to special and complex U.S. federal
    income tax rules. Holders are urged to consult their respective
    tax advisors with respect to the application of the U.S. federal
    income tax laws to their own particular situation as well as any
    tax consequences of the ownership and disposition of the notes
    and common stock arising under the U.S. federal estate or gift
    tax rules or under the laws of any state, local, foreign or
    other taxing jurisdiction or under any applicable treaty. See
    &#148;Certain U.S. Federal Income Tax Considerations.&#148;</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">
    You should read carefully the &#147;Risk Factors&#148; beginning
    on
    <FONT style="white-space: nowrap">page&#160;S-5</FONT>
    of this prospectus supplement and beginning on page&#160;9 of
    our Annual Report on Form&#160;10-K, as amended, for the fiscal
    year ended December&#160;31, 2007, which is incorporated by
    reference in this prospectus supplement and the accompanying
    prospectus, for certain considerations relevant to an investment
    in the notes and the common stock into which the notes, in
    certain circumstances, are convertible.</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-4
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='105'>
<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">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="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>You should carefully consider the risks described below, as
    well as the risks described in the documents incorporated by
    reference in this prospectus supplement and the accompanying
    prospectus, before making a decision to invest in the notes and
    the common stock into which the notes, in certain circumstances,
    are convertible. These risks are not the only ones faced by us.
    The trading price of the notes and the common stock into which
    the notes, in certain circumstances, are convertible could
    decline due to any of these risks, and you may lose all or part
    of your investment. This prospectus supplement and the
    accompanying prospectus and the documents incorporated herein
    and therein by reference also contain forward-looking statements
    that involve risks and uncertainties. Actual results could
    differ materially from those anticipated in these
    forward-looking statements as a result of certain factors,
    including the risks faced by us described below and in the
    documents incorporated herein by reference, particularly our
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K,</FONT>
    as amended, for the fiscal year ended December&#160;31, 2007.</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 This 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">The
    effective subordination of the notes may limit our ability to
    satisfy our obligations under the notes.</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 notes will be our senior unsecured obligations and will rank
    equally with all of our other senior unsecured indebtedness.
    However, the notes will be effectively subordinated to all of
    our secured indebtedness to the extent of the value of the
    collateral securing such indebtedness. As of December&#160;31,
    2007, we had outstanding $39.5&#160;million of secured
    indebtedness. The provisions of the indenture governing the
    notes do not prohibit us from incurring additional secured
    indebtedness in the future. Consequently, in the event of a
    bankruptcy, liquidation, dissolution, reorganization or similar
    proceeding with respect to us, the holders of any secured
    indebtedness will be entitled to proceed directly against the
    collateral that secures such secured indebtedness. Therefore,
    such collateral will not be available for satisfaction of any
    amounts owed under our unsecured indebtedness, including the
    notes, until such secured indebtedness is satisfied in full.
</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">We may
    not be permitted to issue common stock as part of a par cash
    settlement and we may not have the cash necessary to settle
    conversions of the notes or to repurchase the notes on specified
    dates or following certain fundamental change
    transactions.</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">
    Upon conversion of each $1,000 principal amount of notes, we
    will deliver (i)&#160;cash in an amount equal to the sum of the
    amounts calculated for each of the 20 trading days during the
    observation period (as described herein) of the lesser of the
    daily conversion value (as described herein) and $50
    (representing 1/20th&#160;of $1,000), and (ii), at our option,
    cash, common stock or a combination thereof, in an amount equal
    to the sum of the amounts calculated for each of the 20 trading
    days during the observation period of any excess of the daily
    conversion value above $50. We refer to this settlement method
    as &#147;par cash settlement.&#148; There may be circumstances
    that prevent the issuance of our common stock for any portion
    deliverable upon the conversion of notes, thereby requiring us
    to satisfy our conversion obligation entirely in cash. Holders
    of notes also have the right to require us to repurchase the
    notes for cash on June&#160;17, 2013, June&#160;15, 2018 and
    June&#160;15, 2023 or upon the occurrence of fundamental change
    transactions. Any of our future debt agreements or securities
    may contain similar provisions. We may not have sufficient funds
    to pay any such cash amounts upon a par cash settlement or make
    the required repurchase of notes at the applicable time and, in
    such circumstances, may not be able to arrange the necessary
    financing on favorable terms, if at all. In addition, our
    ability to pay cash upon a par cash settlement or make the
    required repurchase, as the case may be, may be limited by law
    or the terms of other debt agreements or securities we may have
    outstanding. However, our failure to pay such cash upon a par
    cash settlement or make the required repurchase, as the case may
    be, would constitute an event of default under the indenture
    governing the notes which, in turn, could constitute an event of
    default under other debt agreements or securities, thereby
    resulting in their acceleration and required prepayment and
    further restrict our ability to make such payments and
    repurchases.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-5
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<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
    is currently no trading market for the notes, and an active
    liquid trading market for the notes may not develop or, if it
    develops, be maintained.</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 notes are a new issue of securities, and there is currently
    no existing trading market for the notes. We do not intend to
    apply for listing of the notes on any national securities
    exchange or for quotation of the notes on any automated dealer
    quotation system. Although the underwriters have advised us that
    they intend to make a market in the notes, they are not
    obligated to do so and may discontinue any market-making at any
    time without notice. Accordingly, an active public trading
    market may not develop for the notes and, even if one develops,
    may not be maintained. If an active public trading market for
    the notes does not develop or is not maintained, the market
    price and liquidity of the notes may be volatile and is likely
    to be adversely affected and holders may not be able to sell
    their notes at desired times and prices or at all. If any of the
    notes are traded after their purchase, they may trade at a
    discount from their purchase price.
</DIV>

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

<DIV align="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 liquidity of the trading market, if any, and future trading
    prices of the notes will depend on many factors, including,
    among other things, the market price of our common stock,
    prevailing interest rates, our financial condition, results of
    operations, business, prospects and credit quality relative to
    our competitors, the market for similar securities and the
    overall securities market, and may be adversely affected by
    unfavorable changes in any of these factors, some of which are
    beyond our control and others of which would not affect debt
    that is not convertible or exchangeable into capital stock.
    Historically, the market for convertible or exchangeable debt
    has been volatile. Market volatility could materially and
    adversely affect the notes, regardless of our financial
    condition, results of operations, business, prospects or credit
    quality.
</DIV>

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

<DIV align="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 notes have a number of features that may adversely affect
    the value and trading prices of the notes, including conversion
    conditions and the lack of financial covenants. Furthermore,
    even if the conversion conditions are met, since the conversion
    value of the notes is dependent on the closing sale price of our
    common stock, volatile or depressed market prices for our common
    stock are likely to have a similar effect on the trading prices
    of the notes. It is impossible to assure holders of notes that
    the closing sale price of our common stock in the future will
    not have an adverse effect on the trading prices of the notes.
</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 notes will not be entitled to any rights with respect to our
    common stock, but will be subject to all changes made with
    respect to them.</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">
    Holders of notes will not be entitled to any rights with respect
    to our common stock (including, without limitation, voting
    rights and rights to receive any dividends or other
    distributions on our common stock), but holders of notes will be
    subject to all changes affecting our common stock. Holders of
    notes will be entitled to the rights afforded our common stock
    only if and when our common stock is delivered to them upon the
    conversion of their notes. For example, in the event that an
    amendment is proposed to our articles of incorporation or bylaws
    requiring shareholder approval and the record date for
    determining the shareholders of record entitled to vote on the
    amendment occurs prior to a holder&#146;s receipt of our common
    stock upon the conversion of notes, such holder will not be
    entitled to vote on the amendment, although such holder will
    nevertheless be subject to any changes affecting 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
    price of our common stock may fluctuate
    significantly.</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">
    During 2007, our common stock has traded below $20.00 per share
    and above $26.00 per share. The market price of our common stock
    may fluctuate significantly in response to many factors,
    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">
    actual or anticipated changes in operating results or business
    prospects;
</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 by securities 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">
    an inability to meet or exceed securities analysts&#146;
    estimates or expectations;
</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">
    conditions or trends in our industry or sector;
</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 performance of other REITs in our sector and related market
    valuations;
</TD>
</TR>

</TABLE>

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

<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">
    announcements by us or our competitors of significant
    acquisitions, strategic partnerships, divestitures, joint
    ventures or other strategic initiatives;
</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">
    hedging or arbitrage trading activity in our common 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>    &#149;&#160;
</TD>
    <TD align="left">
    changes in interest rates;
</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">
    capital commitments;
</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">
    additions or departures of key personnel;
</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">
    future sales of our common stock, preferred stock or securities
    convertible into, or exchangeable or exercisable for, our common
    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 matters discussed in this prospectus supplement under the
    caption &#147;Forward-Looking Statements.&#148;
</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 who receive our common stock upon the conversion of
    their notes will be subject to the risk of volatile and
    depressed market prices of our common stock. In addition, many
    of the factors listed above are beyond our control. These
    factors may cause the market price of our common stock to
    decline, regardless of our financial condition, results of
    operations, business or prospects. It is impossible to assure
    converting holders that the market price of our common stock
    will not fall in the future.
</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
    conditional conversion feature of the notes may prevent the
    conversion of notes prior to June&#160;15, 2027.</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 notes are convertible prior to the close of business on the
    business day prior to the stated maturity date at any time on or
    after June&#160;15, 2027. Prior to June&#160;15, 2027, the notes
    are convertible only if the closing sale price of our common
    stock exceeds a specified threshold over a specified time
    period, if the trading price of the notes is below a specified
    threshold for a specified time period or if certain specified
    transactions or events occur and then only at prescribed times.
    See &#147;Description of Notes&#160;&#151; Conversion
    Rights&#148; in this prospectus supplement. If these conditions
    are not met, holders of notes will not be able to convert their
    notes prior to June&#160;15, 2027 and therefore may not be able
    to receive the value of the consideration into which the notes
    would otherwise be convertible.
</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
    also have the right to deliver all cash upon the conversion of
    notes and holders may not receive any of our common stock upon
    conversion.</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">
    Even if the conditions to converting the notes are met, upon the
    conversion of notes, we will deliver (i)&#160;cash in an amount
    equal to the sum of the amounts calculated for each of the 20
    trading days during the observation period (as described herein)
    of the lesser of the daily conversion value (as described
    herein) and $50 (representing 1/20th&#160;of $1,000), and
    (ii)&#160;at our option, cash, common stock or a combination
    thereof, in an amount equal to the sum of the amounts calculated
    for each of the 20 trading days during the observation period of
    any excess of the daily conversion value above $50. We refer to
    this settlement method as &#147;par cash settlement.&#148; As a
    result, we are not required to deliver any of our common stock
    upon the conversion of notes. Therefore, holders may not be able
    to obtain any benefits of future ownership of our common stock
    upon any such conversion and would be required to incur the
    related transaction costs to purchase our common stock with the
    cash consideration received upon such conversion, including
    common stock that holders may require in order to cover short
    positions.
</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
    premium payable on notes converted in connection with certain
    fundamental change transactions on or before June&#160;17,
    2013&#160;may not adequately compensate holders for the lost
    option time value of their notes as a result of any such
    fundamental change.</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 certain transactions that constitute a fundamental change
    occur on or prior to June&#160;17, 2013, under certain
    circumstances, we will increase the conversion rate by a number
    of additional shares of common stock. This increased conversion
    rate will apply only to holders who convert their notes in
    connection with any such transaction. The number of the
    additional shares of common stock will be determined based on
    the date on which the transaction becomes effective and the
    price paid per shares of common stock in such transaction, as
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-7
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<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">
    described under &#147;Description of Notes&#160;&#151;
    Conversion Rate Adjustments&#160;&#151; Make Whole Upon Certain
    Fundamental Change Transactions&#148; in this prospectus
    supplement. While the number of additional shares of common
    stock is designed to compensate holders for the lost option time
    value of the notes as a result of such transaction, the amount
    of the premium payable is only an approximation of such lost
    value and may not adequately compensate holders for such loss.
    In addition, notwithstanding the foregoing, if (i)&#160;such
    transaction occurs after June&#160;17, 2013, or (ii)&#160;the
    price paid per common share in the transaction is less than
    $21.91 or in excess of $35.00, the conversion rate will not be
    increased. In no event will the number of shares of common stock
    issuable upon the conversion of notes exceed 45.6413 per $1,000
    principal amount of notes, subject to adjustment under certain
    circumstances, regardless of when the transaction becomes
    effective or the price paid per common share in the transaction.
</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 notes may not be adjusted for all
    dilutive events.</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 notes is subject to adjustment for
    certain events, including, but not limited to, certain dividends
    on our common stock, the issuance of certain rights, options or
    warrants to holders of our common stock, subdivisions or
    combinations of our common stock, certain distributions of
    assets, debt securities, capital stock or cash to holders of our
    common stock and certain tender or exchange offers as described
    under &#147;Description of Notes&#160;&#151; Conversion Rate
    Adjustments&#148; in this prospectus supplement. The conversion
    rate will not be adjusted for other events, such as an issuance
    of our common stock for cash, that may adversely affect the
    trading price of the notes and our common stock. There can be no
    assurance that an event will not occur that is adverse to the
    interests of the holders of the notes and their value but does
    not result in 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">The
    definition of a fundamental change requiring us to repurchase
    notes is limited and therefore the market price of the notes may
    decline if we enter into a transaction that is not a fundamental
    change under the indenture.</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 term &#147;fundamental change,&#148; as used in the notes
    and the indenture, is limited and may not include every event
    that might cause the market price of the notes to decline. As a
    result, our obligation to repurchase the notes upon a
    fundamental change does not preserve the value of the notes in
    the event of certain highly leveraged transactions, certain
    reorganizations, mergers or similar transactions.
</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">Upon
    conversion of their notes, holders may receive less
    consideration than expected because the value of our common
    stock may decline between the day that the conversion right is
    exercised and the day the value of our common stock is
    determined.</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 value that holders will receive upon conversion
    of their notes will be determined on the basis of the closing
    sale price of our common stock on the primary exchange on which
    our common stock is then listed (currently the NYSE) for each of
    the 20 consecutive trading days beginning on the third scheduled
    trading day following the date the notes are tendered for
    conversion. Accordingly, if the price of our common stock
    decreases after the conversion right is exercised, the
    conversion value will be adversely affected.
</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
    par cash settlement feature of the notes may have adverse or
    unexpected consequences to us and purchasers of the
    notes.</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 par cash settlement feature of the notes, as described under
    &#147;Description of Notes&#160;&#151; Conversion
    Settlement&#148; in this prospectus supplement, may:
</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">
    result in holders receiving no stock upon conversion or fewer
    shares of stock relative to the conversion value of the notes;
</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">
    reduce our liquidity because we will be required to pay the
    principal return only in cash and the net amount, if any, may be
    paid, at our option, in cash as well;
</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">
    delay holders&#146; receipt of the proceeds upon
    conversion;&#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">
    subject holders to market risk before receiving any shares upon
    conversion.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-8
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

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

<DIV align="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, the conversion of notes for cash or a combination
    of cash and common stock generally will be a taxable transaction
    for U.S.&#160;federal income tax purposes to the extent of the
    lesser of the amount of realized gain or the cash received. See
    &#147;Certain U.S.&#160;Federal Income Tax
    Considerations&#160;&#151; U.S. Holders&#160;&#151; Conversion
    of the Notes.&#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">Ownership
    limitations in our articles of incorporation may impair the
    ability of holders to convert notes into our 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">
    In order to assist us in maintaining our qualification as a REIT
    for U.S.&#160;federal income tax purposes, no person may own, or
    be deemed to own by virtue of the attribution rules of the
    Internal Revenue Code, more than 9.8% of the value of our
    outstanding capital stock, subject to certain exceptions.
    Notwithstanding any other provision of the notes, no holder of
    notes will be entitled to convert such notes into our common
    stock to the extent that receipt of such common stock would
    cause such holder (together with such holder&#146;s affiliates)
    to exceed the ownership limit contained in our articles of
    incorporation. See &#147;Description of Common Stock&#160;&#151;
    Restrictions on Ownership&#148; in the accompanying prospectus.
</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
    notes may be redeemable prior to June&#160;17, 2013 under
    certain circumstances.</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 may redeem all or part of the notes prior to June&#160;17,
    2013 only to preserve our status as a REIT for U.S.&#160;federal
    income tax purposes. If we do redeem the notes, the redemption
    price will be 100% of the principal amount of the notes to be
    redeemed plus accrued and unpaid interest to the redemption
    date. You will not be compensated for any forgone interest
    payments from the redemption date to June&#160;17, 2013, nor
    will you be compensated for any lost option value in connection
    with any such early redemption.
</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
    accounting method for convertible debt securities with net share
    settlement, like the notes offered hereby, may be subject to
    change.</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 Financial Accounting Standards Board, or FASB, is currently
    contemplating changes to the accounting standards applicable to
    financial instruments such as the notes. If those changes were
    to be implemented and became applicable to the notes, we would
    have to report interest expense for the notes higher than the
    interest expense we are required to report under the current
    interpretations.
</DIV>

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

<DIV align="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 the proposed new accounting standards for convertible debt
    instruments that may be settled entirely or partially in cash
    upon conversion, an entity should separately account for the
    liability and equity components of the instrument in a manner
    that reflects the issuer&#146;s economic interest cost. The
    effect of the proposed new rules on the notes and our other
    outstanding convertible notes is that the equity component would
    be included in shareholders&#146; equity on our consolidated
    balance sheets and treated as original issue discount for
    purposes of accounting for the debt component of the notes and
    our other outstanding convertible notes, which essentially
    records the debt at fair value. The debt would be subsequently
    accreted to its par value over its expected life, or the first
    scheduled conversion date, resulting in interest expense being
    recognized based on the market interest rate at issuance.
    Consideration of this proposal is ongoing and we cannot predict
    the exact methodology that will be imposed, which may differ
    materially from the foregoing description, or when any change
    will be finally implemented.
</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.
    Federal Income Tax Risks Related to the Notes</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
    failure to qualify as a REIT for U.S. federal income tax
    purposes could result in significant tax liability and adversely
    affect our ability to service the notes.</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 intend to operate in a manner that will allow us to continue
    to qualify as a REIT. We believe that we have been organized as,
    and our past and present operations qualify us as, a REIT.
    However, the IRS could successfully assert that we are not
    qualified as such. In addition, we may not remain qualified as a
    REIT in the future. This is because qualification as a REIT
    involves the application of highly technical and complex
    provisions of the Code for which there are only limited judicial
    or administrative interpretations and involves the determination
    of various factual matters and circumstances not entirely within
    our control.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-9
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="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 we fail to qualify as a REIT, we would not be allowed a
    deduction for dividends paid to shareholders in computing our
    taxable income and would become subject to U.S.&#160;federal
    income tax at regular corporate rates. In this event, we could
    be subject to potentially significant tax liabilities, and the
    amount of cash available to service the notes would be
    significantly reduced. Unless entitled to relief under certain
    statutory provisions, we would also be disqualified from
    treatment as a REIT for the four taxable years following the
    year during which we lost our qualification.
</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 the possible adjustments to the conversion rate (or the
    failure to make certain adjustments to the conversion rate) of
    the notes may result in a constructive distribution to holders
    of notes.</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 notes is subject to adjustment under
    certain circumstances. If certain of the possible adjustments to
    the conversion rate of the notes are made (or there is a failure
    to make certain adjustments to the conversion rate), a holder
    may be deemed to have received a constructive distribution.
    Because such deemed distribution would not give rise to any cash
    from which any applicable U.S.&#160;federal withholding tax can
    be satisfied, we intend to set-off any withholding tax that we
    are required to pay with respect to any such distribution
    against cash payments of interest. See &#147;Certain
    U.S.&#160;Federal Income Tax Considerations&#160;&#151; U.S.
    Holders&#160;&#151; Adjustment of Conversion Rate,&#148;
    &#147;Certain U.S.&#160;Federal Income Tax
    Considerations&#160;&#151; Information Reporting and Backup
    Withholding&#148; and &#148;Certain U.S.&#160;Federal Income Tax
    Considerations&#160;&#151;
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holders&#160;&#151;</FONT>
    Disposition&#148; in this prospectus supplement.
</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 of notes will be taxable for holders of
    notes.</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 of notes for cash or a combination of cash and
    common stock generally will be a taxable transaction for
    U.S.&#160;federal income tax purposes to the extent of the
    lesser of the amount of realized gain or the cash received. See
    &#147;Certain U.S.&#160;Federal Income Tax
    Considerations&#160;&#151; U.S. Holders&#160;&#151;  Conversion
    of the Notes.&#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">Although
    we believe that currently we would not be required to do so, we
    may be required in the future to withhold on payments to
    <FONT style="white-space: nowrap">non-U.S.</FONT>
    holders of notes in connection with a sale, redemption,
    repurchase, conversion, or retirement of the notes based on the
    facts and circumstances at the time.</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 believe that currently the notes do not constitute
    U.S.&#160;real property interests and that we therefore would
    not currently be required to withhold under the Foreign
    Investment in Real Property Tax Act, or FIRPTA. If the notes
    were to constitute U.S.&#160;real property interests in the
    future, we would be required to withhold on payments to
    <FONT style="white-space: nowrap">non-U.S.&#160;holders</FONT>
    in connection with a sale, redemption, repurchase, conversion or
    retirement of the notes regardless of whether such
    <FONT style="white-space: nowrap">non-U.S.&#160;holders</FONT>
    provided certification documenting their
    <FONT style="white-space: nowrap">non-U.S.&#160;status.</FONT>
    See &#147;Certain U.S. Federal Income Tax
    Considerations&#160;&#151; Non U.S.&#160;Holders&#160;&#151;
    Disposition&#148; in this prospectus supplement.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-10
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='106'>
<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">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="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 estimate that the net proceeds from this offering will be
    approximately $215.1&#160;million, after deducting the
    underwriting discount and other estimated expenses of this
    offering payable by us. We intend to use the net proceeds to
    repay borrowings under our $400&#160;million credit facility, to
    fund future acquisitions and for general corporate purposes.
    Borrowings outstanding under the credit facility, which expires
    on May&#160;8, 2009, were $177.6&#160;million as of
    February&#160;22, 2008, and currently bear interest at a rate of
    LIBOR plus 0.8%. Affiliates of certain of the underwriters are
    lenders under the credit facility. See &#147;Underwriting.&#148;
</DIV>
<A name='109'>
<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">RATIOS OF
    EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES
    AND PREFERRED STOCK DIVIDENDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="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 our historical ratio of earnings
    to fixed charges and ratio of earnings to combined fixed charges
    and preferred stock dividends for 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="69%">&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="3%" 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 -->
</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="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>For the Years 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(1)</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>
</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">
    Ratio of earnings to fixed charges
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.60
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.42
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.76
</TD>
<TD nowrap align="left" valign="bottom">
    x
</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">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.82
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ratio of earnings to combined fixed charges and preferred stock
    dividends
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.23
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.99
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.43
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.46
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.44
</TD>
<TD nowrap align="left" valign="bottom">
    x
</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">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (1)&#160;</TD>
    <TD align="left">
    Earnings for the year ended December&#160;31, 2006 include a
    $59.5&#160;million gain on the disposition of the two office
    buildings and related parking garage (&#147;DC Office
    Buildings&#148;) which were sold in May 2006. The ratio of
    earnings to fixed charges for the year ended December&#160;31,
    2006 excluding the DC Office Buildings gain was 3.29x.
</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">
    For the purposes of computing these ratios, earnings have been
    calculated by adding fixed charges (excluding capitalized
    interest) to income (loss) before taxes and extraordinary items.
    Fixed charges consist of interest costs, whether expensed or
    capitalized, and the amortization of debt expense and discount
    or premium relating to any indebtedness, whether expensed or
    capitalized.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-11
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='108'>
<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">DESCRIPTION
    OF NOTES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="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>The following description summarizes certain terms and
    provisions of the notes and the supplemental indenture that we
    will enter into in connection with this offering, does not
    purport to be complete and is subject to, and qualified in its
    entirety by reference to, the actual terms and provisions of the
    notes and the indenture (as supplemented by the supplemental
    indentures referred to below) which are incorporated herein by
    reference. We will provide copies of these documents to you upon
    request.</I>
</DIV>

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

<DIV align="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>Capitalized terms used but not otherwise defined herein shall
    have the meanings given to them in the notes, and the indenture.
    As used in this section, the terms &#147;we,&#148;
    &#147;us&#148; and &#147;our&#148; refer to National Retail
    Properties, Inc. and not to any of its subsidiaries.</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">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">
    The notes will be issued pursuant to an indenture, dated as of
    March&#160;25, 1998, which we have entered into with
    U.S.&#160;Bank National Association (successor to Wachovia Bank
    National Association (formerly First Union National Bank)), as
    trustee, as supplemented by the first supplemental indenture
    dated as of March&#160;25, 1998, the third supplemental
    indenture dated as of September&#160;20, 2000, the fourth
    supplemental indenture dated as of May&#160;30, 2002, the fifth
    supplemental indenture dated as of June&#160;18, 2004, the sixth
    supplemental indenture dated as of November&#160;17, 2005, the
    seventh supplemental indenture dated September&#160;13, 2006,
    the eighth supplemental indenture dated as of September&#160;10,
    2007 and the ninth supplemental indenture to be dated as of
    March&#160;4, 2008 thereto relating to the notes. We refer to
    the indenture as supplemented as the &#147;indenture.&#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 terms of the notes include those provisions contained in the
    notes and the indenture and those made part of the indenture by
    reference to the Trust&#160;Indenture Act of 1939, as amended
    (the &#147;Trust&#160;Indenture Act&#148;). The notes are
    subject to all such terms, and holders of notes are referred to
    the notes, the indenture and the Trust&#160;Indenture Act for a
    statement thereof. Copies of the indenture and the form of the
    notes are available for inspection at the corporate trust office
    of the trustee, currently located at 225 Water Street,
    7th&#160;Floor, FL0122. Jacksonville, Florida 32202.
</DIV>

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

<DIV align="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 notes will be our senior unsecured obligations and will rank
    equally with each other and with all of our other senior
    unsecured indebtedness. However, the notes will be effectively
    subordinated to our mortgages and other secured indebtedness (to
    the extent of the value of the collateral securing the same). As
    of December&#160;31, 2007, we had outstanding
    $890.8&#160;million of senior unsecured indebtedness (exclusive
    of intercompany debt, trade payables, distributions payable,
    accrued expenses and other liabilities) and $39.5&#160;million
    of secured indebtedness. The provisions of the indenture
    governing the notes do not prohibit us or any of our
    subsidiaries from incurring additional indebtedness or issuing
    preferred equity in the future. See &#147;Risk
    Factors&#160;&#151; The effective subordination of the notes may
    limit our ability to satisfy our obligations under the
    notes&#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">
    The notes will initially be limited to the aggregate principal
    amount of $220.0&#160;million (or $253.0&#160;million if the
    underwriters exercise their over-allotment option in full). We
    may, without the consent of holders of the notes, increase the
    principal amount of the notes by issuing additional notes in the
    future on the same terms and conditions, except for any
    difference in the issue price and interest accrued prior to the
    issue date of the additional notes, and with the same CUSIP
    number as the notes offered hereby, provided that such
    additional notes constitute part of the same issue as the notes
    offered hereby for U.S.&#160;federal income tax purposes. The
    notes offered by this prospectus supplement and the accompanying
    prospectus and any such additional notes would rank equally and
    ratably and would be treated as a single series of debt
    securities for all purposes 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes will be issued only in fully registered, book-entry
    form, in denominations of $1,000 and integral multiples thereof,
    except under the limited circumstances described below under
    &#147;Book-Entry Procedures&#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">
    Holders may present their notes for conversion at the office of
    the conversion agent, present notes for registration of transfer
    at the office of the registrar for the notes and present notes
    for payment at maturity at
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-12
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<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 office of the paying agent. We have appointed the trustee as
    the initial conversion agent, registrar and paying agent for the
    notes.
</DIV>

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

<DIV align="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 any interest payment date, stated maturity date, redemption
    date or repurchase date is not a business day, the payment
    otherwise required to be made on such date will be made on the
    next business day without any additional payment as a result of
    such delay. The term &#147;business day&#148; means, with
    respect to any note, any day, other than a Saturday, Sunday or
    any other day on which banking institutions in The City of New
    York are authorized or obligated by law or executive order to
    close. All payments will be made in U.S.&#160;dollars.
</DIV>

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

<DIV align="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 terms of the notes provide that we are permitted to reduce
    interest payments and payments upon a redemption, repurchase or
    conversion of notes otherwise payable to a holder for any
    amounts we are required to withhold by law. For example,
    <FONT style="white-space: nowrap">non-U.S.&#160;holders</FONT>
    of notes may, under some circumstances, be subject to
    U.S.&#160;federal withholding tax with respect to payments of
    interest on the notes. Moreover, holders of convertible debt
    instruments such as the notes may, in certain circumstances, be
    deemed to have received distributions of stock if the conversion
    price of such instruments is adjusted even though such holders
    have not received any cash or property as a result of such
    adjustments, which deemed distribution (in the case of a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder)</FONT>
    will be subject to a U.S.&#160;federal withholding tax. See
    &#147;Certain U.S.&#160;Federal Income Tax Considerations&#148;
    in this prospectus supplement. We will set off any such
    withholding tax that we are required to pay against payments of
    interest payable on the notes and payments upon a redemption,
    repurchase or conversion of notes.
</DIV>

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

<DIV align="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 indenture does not contain any provisions that would
    necessarily protect holders of notes if we become involved in a
    highly leveraged transaction, reorganization, merger or other
    similar transaction that adversely affects us or 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 or one of our affiliates may, to the extent permitted by
    applicable law, at any time purchase notes in the open market,
    by tender at any price or by private agreement. Any note
    purchased by us or our affiliates (a)&#160;after the date that
    is two years from the latest issuance of the notes may, to the
    extent permitted by applicable law, be reissued or sold or may
    be surrendered to the trustee for cancellation or (b)&#160;on or
    prior to the date referred to in clause (a), will be surrendered
    to the trustee for cancellation. Any notes surrendered for
    cancellation may not be reissued or resold and will be canceled
    promptly.
</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">Interest</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">
    Interest on the notes will accrue at the rate of 5.125% per year
    from and including March&#160;15, 2008 or the most recent
    interest payment date to which interest has been paid or
    provided for, and will be payable semi-annually in arrears on
    June 15 and December 15 of each year, beginning June&#160;15,
    2008. The interest so payable will be paid to each holder in
    whose name a note is registered at the close of business on the
    June 1 or December 1 (whether or not a business day) immediately
    preceding the applicable interest payment date. Interest on the
    notes will be computed on the basis of a
    <FONT style="white-space: nowrap">360-day</FONT> year
    consisting of twelve
    <FONT style="white-space: nowrap">30-day</FONT>
    months.
</DIV>

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

<DIV align="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 the conversion of notes, accrued interest thereon will be
    deemed to be paid by delivery of the consideration due to the
    converting holder upon such conversion, except that holders of
    notes on a record date will be entitled to receive interest
    payable on the related interest payment date even if such notes
    are converted after such record date and on or prior to such
    interest payment date. However, subject to the following
    paragraph, holders who surrender their notes for conversion
    after such record date and on or prior to such interest payment
    date must pay to the conversion agent upon conversion an amount
    in cash equal to the interest payable by us on such interest
    payment date. No other payment or adjustment will be made for
    accrued interest on a converted note.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing paragraph, holders who surrender
    their notes for conversion after a record date and on or prior
    to the related interest payment date need not pay to the
    conversion agent any amounts in cash representing interest
    payable by us on such interest payment date:
</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">
    in respect of any note surrendered for conversion after the
    record date immediately preceding the maturity date;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-13
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<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">
    in respect of any notes called for redemption on a redemption
    date that falls after a record date and on or prior to the
    related interest payment 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">
    if we have specified a repurchase date following a fundamental
    change that is after a record date and on or prior to the next
    interest payment date;&#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 the extent of any overdue interest, if any overdue interest
    exists at the time of conversion with respect to such note.
</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">
    If we redeem the notes, or if a holder surrenders a note for
    repurchase by us in accordance with the terms of such note, we
    will pay accrued and unpaid interest to the holder that
    surrenders such note for redemption or repurchase, as the case
    may be. However, if an interest payment date falls on or prior
    to the redemption date or repurchase date for a note, we will
    pay the accrued and unpaid interest due on that interest payment
    date instead to the record holder of such note at the close of
    business on the related record 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">Maturity</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 not previously redeemed or converted, the notes will mature
    on June&#160;15, 2028 and will be paid against presentation and
    surrender thereof at the corporate trust office of the trustee
    unless (1)&#160;earlier redeemed by us at our option or
    repurchased by us at a holder&#146;s option at certain times as
    described under &#147;Our Redemption&#160;Rights,&#148;
    &#147;Repurchase at Option of Holders on Certain Dates&#148; or
    &#147;Repurchase at Option of Holders Upon a Fundamental
    Change&#148; below or (2)&#160;converted at a holder&#146;s
    option as permitted under &#147;Conversion Rights&#148; below.
    The notes will not be entitled to the benefits of, or be subject
    to, any sinking fund.
</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">Our
    Redemption&#160;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">
    We will not have the right to redeem any notes prior to
    June&#160;17, 2013, except to preserve our status as a REIT. If,
    at any time, we determine it is necessary to redeem the notes in
    order to preserve our status as a REIT, we may redeem the notes,
    in whole or in part, for cash equal to 100% of the principal
    amount of the notes plus unpaid interest accrued to, but not
    including, the redemption date. In addition, on or after
    June&#160;17, 2013, we will have the right to redeem the notes
    in whole or in part, at any time or from time to time, for cash
    equal to 100% of the principal amount of the notes to be
    redeemed plus unpaid interest accrued to, but not including, the
    redemption date. Written notice of redemption must be delivered
    to holders of the notes not less than 30 nor more than
    60&#160;days prior to the redemption 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">
    If the paying agent holds money sufficient to pay the redemption
    price due on a note on the redemption date in accordance with
    the terms of the indenture, then, on and after the redemption
    date, that note will cease to be outstanding and interest on
    that note will cease to accrue, whether or not the holder
    effects a book-entry transfer of that note or delivers that note
    to the paying agent. Thereafter, all other rights of the holder
    of that note terminate, other than the right to receive the
    redemption price and additional interest, if any, due on the
    redemption 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">
    If we decide to redeem the notes in part, the trustee will
    select the notes to be redeemed by such method it deems fair and
    appropriate, which method may provide for the selection for
    redemption of portions of the principal amounts of the notes
    larger than $1,000 per note. If the trustee selects a portion of
    a note for partial redemption and a holder converts a portion of
    the same note, the converted portion will be deemed to be from
    the portion selected for redemption.
</DIV>

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

<DIV align="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 we call notes for redemption, a holder may convert its notes
    only until the close of business on the second business day
    preceding the redemption date, unless we fail to pay the
    redemption price. See &#147;Conversion Rights&#160;&#151;
    Conversion upon Notice of Redemption&#148; below.
</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">Repurchase
    at Option of Holders on Certain Dates</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">
    Holders of notes may require us to repurchase their notes in
    whole or in part (in principal amounts of $1,000 and integral
    multiples thereof) on June&#160;17, 2013, June&#160;15, 2018 and
    June&#160;15, 2023 for cash equal to
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-14
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<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">
    100% of the principal amount of the notes to be repurchased plus
    unpaid interest if accrued to, but not including, the repurchase
    date. To exercise its repurchase right, a holder must deliver a
    written repurchase notice to the paying agent, which initially
    is the trustee, during the period beginning at any time from the
    opening of business on the date that is 25 business days prior
    to the repurchase date until the close of business on the fifth
    business day prior to the repurchase date. Our repurchase
    obligation will be subject to certain additional conditions.
</DIV>

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

<DIV align="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 before the
    25<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;business
    day prior to each repurchase date, we will provide to the
    trustee, any paying agent and to all holders of the notes, and
    to beneficial owners as required by applicable law, a notice
    stating, 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="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 repurchase price;
</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 name and address of the trustee and any paying 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">
    that notes with respect to which the holder has delivered a
    repurchase notice may be converted, if otherwise convertible,
    only if the holder withdraws the repurchase notice in accordance
    with the terms of the indenture;&#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 procedures that holders must follow to require us to
    repurchase their notes.
</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">
    We will also disseminate a press release through Dow
    Jones&#160;&#038; Company, Inc., Bloomberg Business News or PR
    Newswire containing the information specified in such notice or
    publish that information in a newspaper of general circulation
    in The City of New York or on our web site, or through such
    other public medium as we deem appropriate at that 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">
    A holder&#146;s notice electing to require us to repurchase
    notes must specify:
</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 such notes are in certificated form, the certificate
    number(s) of the notes to be repurchased;
</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 principal amount of notes to be repurchased, which must be
    an integral multiple of $1,000, provided that the remaining
    principal amount of notes is in an authorized
    denomination;&#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">
    that the notes are to be repurchased by us pursuant to the
    applicable provisions of the indenture and the notes.
</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 may withdraw any repurchase notice in whole or in part
    by a written notice of withdrawal delivered to the paying agent
    prior to 10:00&#160;a.m., New York City time, on the business
    day prior to the repurchase date. If a holder of notes delivers
    a repurchase notice, it may not thereafter surrender such notes
    for conversion unless such repurchase notice is withdrawn as
    permitted below. The notice of withdrawal must specify:
</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 name of the holder;
</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 notes subject to the withdrawal notice are in
    certificated form, the certificate number(s) of all notes
    subject to the withdrawal notice;
</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 principal amount of notes in respect of which the repurchase
    notice is being withdrawn, which must be an integral multiple of
    $1,000;&#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 principal amount of notes, if any, that remains subject to
    the repurchase notice, which must be an integral multiple of
    $1,000.
</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">
    If the notes are in book-entry form, the above notices must also
    comply with the appropriate procedures of DTC.
</DIV>

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

<DIV align="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 electing to require us to repurchase notes must either
    effect book-entry transfer of notes in book-entry form in
    compliance with appropriate DTC procedures or deliver the notes
    in certificated form, together with necessary endorsements, to
    the paying agent prior to the repurchase date to receive payment
    of the repurchase price on the repurchase date. We will pay the
    repurchase price promptly after the later of the repurchase date
    or the time of such book-entry transfer or delivery of the notes.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-15
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="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 paying agent holds funds sufficient to pay the repurchase
    price of the notes on the repurchase date, then on and after
    such date:
</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">
    such notes will cease to be outstanding;
</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">
    interest on such notes will cease to accrue;&#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">
    all rights of holders of such notes will terminate except the
    right to receive the repurchase price.
</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">
    Such will be the case whether or not book-entry transfer of the
    notes in book-entry form is made and whether or not notes in
    certificated form, together with the necessary endorsements, are
    delivered to the paying 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">
    No notes may be repurchased by us at the option of the holders
    thereof if there has occurred and is continuing an event of
    default with respect to the notes (other than a default in the
    payment of the repurchase price for those notes). In addition,
    we may also be unable to repurchase the notes in accordance with
    their terms. See &#147;Risk Factors&#160;&#151; We may not be
    permitted to issue common stock as part of a par cash settlement
    and we may not have the cash necessary to settle conversions of
    the notes or to repurchase the notes on specified dates or
    following certain fundamental change transactions&#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">
    To the extent legally required in connection with a repurchase
    of notes, we will comply with the provisions of
    <FONT style="white-space: nowrap">Rule&#160;13e-4</FONT>
    and other tender offer rules under the Exchange Act then
    applicable, if any, and will file a Schedule&#160;TO or any
    other schedule required under the Exchange Act.
</DIV>

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

<DIV align="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 arrange for a third party to purchase any notes for which
    we receive a valid repurchase notice that is not withdrawn, in
    the manner and otherwise in compliance with the requirements set
    forth in the terms of the notes applicable to the offer to
    repurchase the notes. If a third party purchases any notes under
    these circumstances, then interest will continue to accrue on
    those notes and those notes will continue to be outstanding
    after the repurchase date and will be fungible with all other
    notes then outstanding. The third party subsequently may resell
    those purchased notes to other 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">Repurchase
    at Option of Holders upon a 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 a fundamental change occurs, holders of notes may require us
    to repurchase their notes in whole or in part for cash equal to
    100% of the principal amount of the notes to be repurchased plus
    unpaid interest accrued to, but not including, the repurchase
    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">
    Within 20&#160;days after the occurrence of a fundamental
    change, we are obligated to give to the holders of the notes
    written notice of the fundamental change and of the repurchase
    right arising as a result of the fundamental change and the
    repurchase date (which may be no earlier than 15&#160;days and
    no later than 30&#160;days after the date of such notice). We
    must also deliver a copy of this notice to the trustee. We will
    also disseminate a press release through Dow Jones&#160;&#038;
    Company, Inc., Bloomberg Business News or PR Newswire announcing
    the occurrence of the fundamental change or publish that
    information in a newspaper of general circulation in The City of
    New York, or on our web site, or through such other public
    medium as we deem appropriate at that 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">
    To exercise its repurchase right, a holder of notes must deliver
    to the trustee prior to 10:00&#160;a.m., New York City time, on
    the business day prior to the repurchase date written notice of
    such holder&#146;s exercise of its repurchase right. Such notice
    must state:
</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 such notes are in certificated form, the certificate
    number(s) of the notes to be repurchased;
</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 portion of the principal amount of notes to be repurchased,
    in multiples of $1,000, provided that the remaining principal
    amount of notes is in an authorized denomination;&#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">
    that the notes are to be repurchased by us pursuant to the
    applicable provisions of the indenture and the notes.
</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 may withdraw any repurchase notice in whole or in part
    by a written notice of withdrawal delivered to the paying agent
    prior to 10:00&#160;a.m., New York City time, on the business
    day prior to the repurchase date. If a holder of notes delivers
    a repurchase notice, it may not thereafter surrender such notes
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-16
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<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 conversion unless such repurchase notice is withdrawn as
    permitted below. The notice of withdrawal must specify:
</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 name of the holder;
</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 notes subject to the withdrawal notice are in
    certificated form, the certificate number(s) of all notes
    subject to the withdrawal notice;
</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 principal amount of notes in respect of which the repurchase
    notice is being withdrawn, which must be an integral multiple of
    $1,000;&#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 principal amount of notes, if any, that remains subject to
    the repurchase notice, which must be an integral multiple of
    $1,000.
</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">
    If the notes are in book-entry form, the above notices must
    comply with the appropriate procedures of DTC.
</DIV>

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

<DIV align="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 electing to require us to repurchase notes must either
    effect book-entry transfer of notes in book-entry form in
    compliance with appropriate DTC procedures or deliver the notes
    in certificated form, together with necessary endorsements, to
    the paying agent prior to the repurchase date to receive payment
    of the repurchase price on the repurchase date. We will pay the
    repurchase price promptly after the later of the repurchase date
    or the time of such book-entry transfer or delivery of the notes.
</DIV>

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

<DIV align="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 paying agent holds funds sufficient to pay the repurchase
    price of the notes on the repurchase date, then on and after
    such date:
</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">
    such notes will cease to be outstanding;
</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">
    interest on such notes will cease to accrue;&#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">
    all rights of holders of such notes will terminate except the
    right to receive the repurchase price.
</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">
    Such will be the case whether or not book-entry transfer of the
    notes in book-entry form is made and whether or not notes in
    certificated form, together with the necessary endorsements, are
    delivered to the paying 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">
    A &#147;fundamental change&#148; will be deemed to have occurred
    upon the consummation of any transaction or event (whether by
    means of a share exchange or tender offer applicable to our
    common stock, a liquidation, consolidation, recapitalization,
    reclassification, combination or merger of us) in connection
    with which 50% or more of our outstanding common stock is
    exchanged for, converted into or constitutes solely the right to
    receive consideration which is not at least 90% common equity
    (or American Depositary Shares representing common equity) that
    is or 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">
    listed on, or immediately after consummation of such transaction
    or event will be listed on, a national securities exchange;
</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">
    approved, or immediately after consummation of such transaction
    or event will be approved, for quotation on a nationally
    recognized and accepted system of automated dissemination of
    quotation of securities prices.
</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">
    No notes may be repurchased by us at the option of the holders
    thereof if there has occurred and is continuing an event of
    default with respect to the notes (other than a default in the
    payment of the repurchase price for those notes). In addition,
    we may also be unable to repurchase the notes in accordance with
    their terms. See &#147;Risk Factors&#160;&#151; We may not be
    permitted to issue common stock as part of a par cash settlement
    and we may not have the cash necessary to settle conversions of
    the notes or to repurchase the notes on specified dates or
    following certain fundamental change transactions&#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">
    To the extent legally required in connection with a repurchase
    of notes, we will comply with the provisions of
    <FONT style="white-space: nowrap">Rule&#160;13e-4</FONT>
    and other tender offer rules under the Exchange Act then
    applicable, if any, and will file a Schedule&#160;TO or any
    other required schedule under the Exchange Act.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-17
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="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 arrange for a third party to purchase any notes for which
    we receive a valid repurchase notice that is not withdrawn, in
    the manner and otherwise in compliance with the requirements set
    forth in the terms of the notes applicable to the offer to
    repurchase the notes. If a third party purchases any notes under
    these circumstances, then interest will continue to accrue on
    those notes and those notes will continue to be outstanding
    after the repurchase date and will be fungible with all other
    notes then outstanding. The third party subsequently may resell
    those purchased notes to other 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">No
    Shareholder Rights for Holders of Notes</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">
    Holders of notes, as such, will not have any rights as our
    shareholders (including, without limitation, voting rights and
    rights to receive any dividends or other distributions on 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">Conversion
    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">
    Subject to the restrictions on ownership of our common stock and
    the conditions described below, holders may convert their notes
    initially at a conversion rate of 39.3459&#160;shares of our
    common stock per $1,000 principal amount of notes (equivalent to
    an initial conversion price of $25.42 per share of common
    stock). Upon conversion of each $1,000 principal amount of
    notes, we will deliver, as described under
    &#147;&#151;&#160;Conversion Settlement&#148; below,
    (i)&#160;cash in an amount equal to the sum of the amounts
    calculated for each of the 20 trading days during the
    observation period (as described herein) of the lesser of the
    daily conversion value (as described herein) and $50
    (representing 1/20th&#160;of $1,000), and (ii), at our option,
    cash, common stock or a combination thereof, in an amount equal
    to the sum of the amounts calculated for each of the 20 trading
    days during the observation period of any excess of the daily
    conversion value above $50. The conversion rate and the
    equivalent conversion price in effect at any given time are
    referred to in this prospectus supplement as the
    &#147;conversion rate&#148; and the &#147;conversion
    price,&#148; respectively, and will be subject to adjustment as
    described herein.
</DIV>

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

<DIV align="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 conversion of a note, a holder will not receive any cash
    payment of interest (unless such conversion occurs after a
    record date and on or prior to the interest payment date to
    which it relates) and we will not adjust the conversion rate to
    account for accrued and unpaid interest. Our delivery to the
    holder of cash and, if applicable, common stock, if any, will be
    deemed to satisfy our obligation with respect to notes tendered
    for conversion. Accordingly, upon the conversion of notes, any
    accrued but unpaid interest will be deemed to be paid in full,
    rather than cancelled, extinguished or forfeited.
</DIV>

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

<DIV align="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 converts its notes and we elect to deliver any of
    our common stock, we will pay any documentary, stamp or similar
    issue or transfer tax due on the issue of our common stock upon
    the conversion, if any, unless the tax is due because the holder
    requests the stock to be issued or delivered to a person other
    than the holder, in which case the holder will pay that tax
    prior to receipt of such common 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 a holder wishes to exercise its conversion right, such holder
    must deliver an irrevocable duly completed and manually signed
    conversion notice, together, if the notes are in certificated
    form, with the certificated security, to the conversion agent
    along with appropriate endorsements and transfer documents, if
    required or, if the notes are in book-entry form, comply with
    appropriate procedures of DTC, and pay any transfer or similar
    tax, if required. The date a holder completes these requirements
    for conversion is the &#147;conversion date&#148; under the
    indenture. The conversion agent will, on the holder&#146;s
    behalf, convert the notes into cash and common stock, if any.
    Holders may obtain copies of the required form of the conversion
    notice from 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">
    If a holder has already delivered a repurchase notice as
    described under either &#147;Repurchase at Option of Holders on
    Certain Dates&#148; or &#147;Repurchase at Option of Holders
    upon a Fundamental Change&#148; above, with respect to a note,
    that holder may not tender that note for conversion until the
    holder has properly withdrawn the repurchase notice.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-18
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<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
    upon Satisfaction of Market Price Condition</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 June&#160;15, 2027, a holder may surrender any of its
    notes for conversion during any calendar quarter beginning after
    March&#160;31, 2008 (and only during such calendar quarter) if,
    and only if, the closing sale price of our common stock for at
    least 20 trading days (whether or not consecutive) in the period
    of 30 consecutive trading days ending on the last trading day of
    the preceding calendar quarter is more than 130% of the
    conversion price per share of common stock in effect on the
    applicable trading day. Our board of directors will make
    appropriate adjustments, in its good faith determination, to
    account for any adjustment to the conversion rate that becomes
    effective, or any event requiring an adjustment to the
    conversion rate where the ex-dividend date of the event occurs,
    during that 30 consecutive
    <FONT style="white-space: nowrap">trading-day</FONT>
    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">
    &#147;Closing sale price&#148; of our common stock or other
    capital stock or similar equity interests or other publicly
    traded securities on any date means the closing sale price per
    share (or, if no closing sale price is reported, the average of
    the closing bid and ask prices or, if more than one in either
    case, the average of the average closing bid and the average
    closing ask prices) on such date as reported on the principal
    United States national or regional securities exchange on which
    our common stock or such other capital stock or similar equity
    interests or other securities are traded or, if our common stock
    or such other capital stock or similar equity interests or other
    securities are not listed on a United States national or
    regional securities exchange, as reported by Pink Sheets LLC or
    another established over-the-counter trading market in the
    United States. The closing sale price will be determined without
    regard to
    <FONT style="white-space: nowrap">after-hours</FONT>
    trading or extended market making. In the absence of the
    foregoing, the &#147;closing sale price&#148; will be the
    average of the mid-point of the last bid and ask prices for our
    common stock on the relevant date from each of at least three
    nationally recognized independent investment banking firms
    selected 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">
    &#147;Market disruption event&#148; means the occurrence or
    existence for more than one-half hour period in the aggregate on
    any scheduled trading day any suspension or limitation imposed
    on trading (by reason of movements in price exceeding limits
    permitted by the applicable stock exchange or otherwise) in our
    common stock or in any options, contracts or future contracts in
    our common stock, and such suspension or limitation occurs or
    exists at any time before 1:00&#160;p.m., New York City time, on
    such day.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Trading day&#148; means a day during which
    (i)&#160;trading in our common stock generally occurs,
    (ii)&#160;there is no market disruption event, and (iii)&#160;a
    closing sale price for our common stock (other than a closing
    sale price referred to in the last sentence of such definition)
    is available for such day; provided that if our common stock is
    not admitted for trading or quotation on or by any exchange,
    bureau or organization referred to in the definition of closing
    sale price (excluding the last sentence of such definition),
    trading day shall mean any business day.
</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
    upon Satisfaction of Trading Price Condition</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 June&#160;15, 2027, a holder may surrender any of its
    notes for conversion during the five consecutive
    <FONT style="white-space: nowrap">business-day</FONT>
    period following any 10 consecutive
    <FONT style="white-space: nowrap">trading-day</FONT>
    period in which the trading price per $1,000 principal amount of
    notes determined as described below was less than 98% of the
    product of the closing sale price of our common stock and the
    applicable conversion rate on each such trading day.
</DIV>

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

<DIV align="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 &#147;trading price&#148; of the notes on any date of
    determination means the average of the secondary market bid
    quotations per $1,000 principal amount of notes obtained by the
    trustee for a $2.0&#160;million principal amount of notes at
    approximately 3:30&#160;p.m., New York City time, on such
    determination date from three independent nationally recognized
    securities dealers we select, which may include the
    underwriters; provided that if at least three such bids cannot
    reasonably be obtained by the trustee, but two such bids can
    reasonably be obtained by the trustee, then two bids shall be
    used; provided, further that if at least two such bids cannot
    reasonably be obtained by the trustee, but one such bid can
    reasonably be obtained by the trustee, then one bid shall be
    used. If the trustee cannot reasonably obtain at least one bid
    for a $2.0&#160;million principal amount of notes from a
    nationally recognized securities dealer or, in our reasonable
    judgment, the bid quotations are not indicative of the secondary
    market value of the notes, then the trading price per $1,000
    principal amount of notes will be deemed to be less than 98% of
    the product of the closing sale price of our common stock and
    the conversion rate on such determination date.
</DIV>

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

<DIV align="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 trustee shall have no obligation to determine the trading
    price of the notes unless we have requested such determination,
    and we shall have no obligation to make such request unless a
    holder or holders of at least $1.0&#160;million aggregate
    principal amount of notes provides us with reasonable evidence
    that the trading price per $1,000 principal amount of notes
    would be less than 98% of the product of the closing sale price
    of our common stock and the conversion rate, whereupon we shall
    instruct the trustee to determine the trading price of the notes
    beginning on the next trading day and on each successive trading
    day until the trading price is greater than or equal to 98% of
    the product of the closing sale price of our common stock and
    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">Conversion
    upon Notice of Redemption</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 June&#160;15, 2027, a holder may surrender for
    conversion any of the notes called for redemption at any time
    prior to the close of business on the second business day prior
    to the redemption date, even if the notes are not otherwise
    convertible at such time. The right to convert notes will expire
    at that time, unless we default in making the payment due upon
    redemption. A holder may convert fewer than all of its notes so
    long as the notes converted are an integral multiple of $1,000
    principal amount and the remaining principal amount of notes is
    in an authorized denomination. However, if a holder has already
    delivered a repurchase notice with respect to a note, such
    holder may not surrender that note for conversion until it has
    withdrawn such notice in accordance with the terms of the notes.
</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
    upon Specified Transactions</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 we elect to:
</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">
    distribute to all holders of our common stock certain rights
    entitling them to purchase, for a period expiring within
    60&#160;days, our common stock at a price per share less than
    the closing sale price of our common stock on the trading day
    immediately preceding the declaration date of such
    distribution;&#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">
    distribute to all holders of our common stock assets, debt
    securities or certain rights to purchase our securities, which
    distribution has a per share value exceeding 15% of the closing
    sale price of our common stock on the trading day immediately
    preceding the declaration date of such 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">
    we must notify the holders of notes at least 25 scheduled
    trading days prior to the ex-dividend date for such
    distribution. Once we have given that notice, holders may
    surrender their notes for conversion at any time until the
    earlier of the close of business on the business day prior to
    the ex-dividend date or an announcement that such distribution
    will not take place. The ex-dividend date is the first date upon
    which a sale of our common stock does not automatically transfer
    the right to receive the relevant distribution from the seller
    of our common stock to its buyer.
</DIV>

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

<DIV align="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 we are a party to a transaction that constitutes
    a fundamental change, a holder may surrender its notes for
    conversion at any time from and including the date that is 25
    scheduled trading days prior to the anticipated effective time
    of the transaction up to and including the related repurchase
    date (the &#147;Fundamental Change Conversion Period&#148;).
    Holders who convert notes during the Fundamental Change
    Conversion Period will be deemed to have converted their notes
    &#147;in connection with&#148; a fundamental change, regardless
    of any other condition to conversion, and will be entitled to an
    increase (if any) in the conversion rate to the extent described
    below under &#147;&#151;&#160;Conversion Rate
    Adjustments&#160;&#151; Make Whole Upon Certain Fundamental
    Change Transactions.&#148; Upon the occurrence of a fundamental
    change, holders will also have the right to require us to
    repurchase their notes as set forth above under &#147;Repurchase
    at Option of Holders upon a Fundamental Change.&#148; We will
    notify holders of the occurrence of a fundamental change and
    issue a press release no later than 30 scheduled trading days
    prior to the anticipated effective date of such transaction.
</DIV>

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

<DIV align="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 holder will also have the right to convert notes if we are a
    party to a consolidation, merger, binding share exchange or sale
    or conveyance of all or substantially all of its properties and
    assets, in each case, pursuant to which our common stock would
    be exchanged for cash, securities or other property, even if
    such transaction does not constitute a fundamental change. A
    holder may exercise this conversion right at any time from and
    including the date that is 25 scheduled trading days prior to
    the anticipated effective time of the
</DIV>

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    <BR>
    S-20
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<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">
    transaction up to and including 15&#160;days after the actual
    date of such transaction. We will notify holders at least 25
    scheduled trading days prior to the anticipated effective time
    of such transaction.
</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
    Upon Delisting of our 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">
    A holder may surrender any of its notes for conversion at any
    time beginning on the first business day after any 30
    consecutive trading day period during which our common stock has
    ceased to be listed on a United States national securities
    exchange.
</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
    On and After June&#160;15, 2027</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 holder may surrender any of its notes for conversion at any
    time on or after June&#160;15, 2027 until the close of business
    on the business day immediately preceding maturity regardless of
    the foregoing conditions to conversion.
</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
    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">
    We will settle conversion of all notes validly tendered for
    conversion by delivering, on the third business day immediately
    following the last day of the related observation period (as
    defined below), the aggregate &#147;daily settlement
    amount,&#148; which will consist of (i)&#160;cash in an amount
    equal to the sum of the amounts calculated for each of the 20
    trading days during the observation period (as described herein)
    of the lesser of the daily conversion value (as described
    herein) and $50 (representing 1/20th&#160;of $1,000), and (ii),
    at our option, cash, common stock or a combination thereof, in
    an amount equal to the sum of the amounts calculated for each of
    the 20 trading days during the observation period of any excess
    of the daily conversion value above $50. We refer to this type
    of settlement as the &#147;par cash settlement.&#148; We refer
    to the sum of the payments as the &#147;conversion value.&#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 &#147;observation period&#148; with respect to any note
    tendered for conversion means the 20 consecutive
    <FONT style="white-space: nowrap">trading-day</FONT>
    period beginning on and including the third scheduled trading
    day after the related conversion 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 &#147;daily settlement amount,&#148; for each of the 20
    trading days during the observation period, shall consist 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="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">
    cash in an amount equal to the lesser of $50 and the daily
    conversion value relating to such day;&#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">
    to the extent the daily conversion value exceeds $50, a number
    of shares of our common stock equal to the daily share amount
    (as defined below) for such trading day, subject to our right to
    deliver cash in lieu of all or a portion of such shares, as
    described below.
</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 &#147;daily conversion value&#148; means, for each of the 20
    consecutive trading days during the observation period,
    one-twentieth (1/20) of the product of (1)&#160;the applicable
    conversion rate and (2)&#160;the closing sale price of our
    common stock (or the consideration into which our common stock
    has been exchanged in connection with certain corporate
    transactions) on such day.
</DIV>

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

<DIV align="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 &#147;daily share amount&#148; on a given trading day means:
</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 excess of the daily conversion value over $50, divided by
</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 closing sale price of our common stock (or the consideration
    into which our common stock have been exchanged in connection
    with certain corporate transactions) on that trading day.
</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">
    By the close of business on the business day prior to the first
    scheduled trading day of the applicable observation period, we
    may specify a percentage of the daily share amount that will be
    settled in cash (the &#147;cash percentage&#148;) and we will
    notify holders of such cash percentage by notifying the trustee
    (the &#147;cash percentage notice&#148;). If we elect to specify
    a cash percentage, the amount of cash that we will deliver in
    respect of each trading day in the applicable observation period
    will equal the product of: (i)&#160;the cash percentage,
    (ii)&#160;the daily share amount for such trading day and
    (iii)&#160;the closing sale price of our common stock for such
    trading day (provided that after the consummation of a
    fundamental change in which the consideration is
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-21
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<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">
    comprised entirely of cash, the amount used in this
    clause&#160;(iii) shall be the cash price per share received by
    holders of common stock in such fundamental change). The number
    of shares deliverable in respect of each trading day in the
    applicable cash settlement averaging period will be a percentage
    of the daily share amount equal to 100% minus the cash
    percentage. If we do not specify a cash percentage by the close
    of business on the business day prior to the first scheduled
    trading day of the applicable observation period, we must settle
    100% of the daily share amount for each trading day in the
    applicable observation period with common stock. We may, at our
    option, revoke any cash percentage notice by notifying the
    trustee; provided that we revoke such notice by the close of
    business on the trading day prior to the scheduled first trading
    day of the applicable observation 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 will deliver cash in lieu of any fractional shares of common
    stock based on the closing sale price per share of our common
    stock on the on the last day of the applicable observation
    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 may be unable to pay the cash portion of the conversion value
    upon conversion of any notes by holders. Our ability to settle
    our conversion obligation with respect to the notes in cash may
    be limited by law or by our debt agreements in existence at the
    time of such conversion. Accordingly, we cannot assure you that
    we would have the financial resources, or would be able to
    arrange financing, to pay any portion of the conversion value in
    cash. See &#147;Risk Factors&#160;&#151; We may not be permitted
    to issue common stock as part of a par cash settlement and we
    may not have the cash necessary to settle conversions of the
    notes or to repurchase the notes on specified dates or following
    fundamental change transactions.&#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">Conversion
    Rate 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 as described below, except
    that we will not make any adjustments to the conversion rate if
    holders of the notes participate (based on the conversion rate
    then in effect), as a result of holding the notes, in any of the
    transactions described below without having to convert their
    notes.
</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
    Events</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">
    (1)&#160;If we exclusively issue common stock as a dividend or
    distribution on our common stock to all holders of our common
    stock, or if we effect a share split or share combination, the
    conversion rate will be adjusted based on the following formula:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-left: 40%; margin-right: 40%">
<TABLE border="0" width="20%" 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="17%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="7%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="7%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="15%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="7%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="7%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="32%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CR&#146;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    =
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    OS&#146;
</TD>
</TR>
<TR valign="bottom" style="font-size: 2pt"><!-- 05-19-07 -->
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=36 length=0 -->
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    OS<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</TD>
</TR>
</TABLE>
</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="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">
    where,
</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">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    = the conversion rate in effect immediately prior to the
    ex-dividend date for such dividend or distribution, or the
    effective date of such split or combination, as applicable;
</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">
    CR&#146;&#160;= the conversion rate in effect immediately after
    the ex-dividend date for such dividend or distribution, or the
    effective date of such split or combination, as applicable;
</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">
    OS<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    = the number of shares of our common stock outstanding
    immediately prior to the ex-dividend date for such dividend or
    distribution, or the effective date of such split or
    combination, as applicable;
</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">
    OS&#146;&#160;= the number of shares of our common stock
    outstanding immediately after the ex-dividend date for such
    dividend or distribution, or the effective date of such split or
    combination, as applicable.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;If we issue to all holders of our common stock any
    rights, warrants or convertible securities entitling them for a
    period of not more than 60 calendar days to subscribe for or
    purchase our common stock at a price per share less than the
    closing sale price of our common stock on the business day
    immediately preceding the record date fixed for such
    determination, the conversion rate will be adjusted based on the
    following formula (provided that the conversion rate will be
    readjusted to the extent that such rights, warrants or
    convertible securities are not exercised prior to their
    expiration):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-left: 40%; margin-right: 40%">
<TABLE border="0" width="20%" 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="15%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="40%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CR&#146;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    =
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    OS<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    + X
</TD>
</TR>
<TR valign="bottom" style="font-size: 2pt"><!-- 05-19-07 -->
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=50 length=0 -->
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    OS<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    + Y
</TD>
</TR>
</TABLE>
</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>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-22
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<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">
    where,
</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">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    = the conversion rate in effect immediately prior to the
    ex-dividend date for such issuance;
</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">
    CR&#146;&#160;= the conversion rate in effect immediately after
    the ex-dividend date for such issuance;
</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">
    OS<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    = the number of shares of our common stock outstanding
    immediately prior to the ex-dividend date for such
    issuance;&#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">
    X = the total number of shares of our common stock issuable
    pursuant to such rights;&#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">
    Y = the number of shares of our common stock equal to the
    aggregate price payable to exercise such rights, warrants or
    convertible securities divided by the average of the closing
    sale prices of our common stock over the 10 consecutive
    <FONT style="white-space: nowrap">trading-day</FONT>
    period ending on the business day immediately preceding the
    record date (or, if earlier, the ex-dividend date relating such
    distribution) for the issuance of such rights, warrants or
    convertible 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">
    (3)&#160;If we distribute capital stock, evidences of
    indebtedness or any other of our assets or property (including
    cash, and any combination of the foregoing) to all or
    substantially all holders of our common stock, excluding:
</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">
    dividends or distributions and rights or warrants referred to in
    clause&#160;(1) or (2)&#160;above;
</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">
    dividends or distributions paid exclusively in cash;&#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">
    spin-offs to which the provisions set forth below in this
    paragraph (3)&#160;shall apply;
</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">
    then the conversion rate will be adjusted based on the following
    formula:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-left: 35%; margin-right: 35%">
<TABLE border="0" width="30%" 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="18%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="44%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="right" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CR&#146;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    =
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</TD>
</TR>
<TR valign="bottom" style="font-size: 2pt"><!-- 05-19-07 -->
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=60 length=0 -->
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    &#8722; FMV
</TD>
</TR>
</TABLE>
</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="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">
    where,
</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">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    = the conversion rate in effect immediately prior to the
    ex-dividend date for such distribution;
</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">
    CR&#146;&#160;= the conversion rate in effect immediately after
    the ex-dividend date for such distribution;
</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">
    SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    = the average of the closing sale prices of our common stock
    over the ten consecutive trading day period ending on the
    business day immediately preceding the record date for such
    distribution (or, if earlier, the ex-dividend date relating to
    such distribution);&#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">
    FMV = the fair market value (as determined in good faith by our
    board of directors) of the capital stock, evidences of
    indebtedness, assets or property distributed with respect to
    each share of our outstanding common stock on the record date
    for such distribution (or, if earlier, the ex-dividend date
    relating to 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With respect to an adjustment pursuant to this clause&#160;(3)
    where there has been a payment of a dividend or other
    distribution on our common stock of any class or series, or
    similar equity interest, of or relating to a subsidiary or other
    business unit, which we refer to as a &#147;spin-off,&#148; the
    conversion rate in effect immediately before 5:00&#160;p.m., New
    York City time, on the record date fixed for determination of
    shareholders entitled to receive the distribution will be
    increased based on the following formula:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-left: 40%; margin-right: 40%">
<TABLE border="0" width="20%" 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="18%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="44%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CR&#146;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    =
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    FMV<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    +MP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</TD>
</TR>
<TR valign="bottom" style="font-size: 2pt"><!-- 05-19-07 -->
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=60 length=0 -->
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    MP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</TD>
</TR>
</TABLE>
</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="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">
    where,
</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">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    = the conversion rate in effect immediately prior to the
    effective date of this adjustment;
</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">
    CR&#146;&#160;= the conversion rate in effect immediately after
    the effective date of this adjustment;
</DIV>

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

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

<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">
    FMV<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    = the average of the closing sale prices of the capital stock or
    similar equity interest distributed to holders of our common
    stock with respect to one share of our common stock over the
    first ten consecutive
    <FONT style="white-space: nowrap">trading-day</FONT>
    period after the effective date of the spin-off;&#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">
    MP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    = the average of the closing sale prices of our common stock
    over the first ten consecutive
    <FONT style="white-space: nowrap">trading-day</FONT>
    period after the effective date of the spin-off.
</DIV>

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

<DIV align="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 adjustment to the conversion rate under the preceding
    paragraph will occur on the 10th&#160;trading day from and
    including the effective date of the spin-off; provided that in
    respect of any conversion within the ten trading days following
    the effective date of any spin-off, references within this
    paragraph (3)&#160;to &#147;10&#160;days&#148; shall be deemed
    replaced with such lesser number of trading days as have elapsed
    between the effective date of such spin-off and the conversion
    date in determining the applicable 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">
    (4)&#160;If we pay any exclusively cash dividend or distribution
    to all or substantially all holders of our common stock, and the
    aggregate of all cash dividends or distributions paid in any
    calendar quarter (including such cash dividend or distribution)
    exceeds the dividend threshold amount (as defined below) for
    such quarter, the conversion rate will be adjusted based on the
    following formula:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-left: 40%; margin-right: 40%">
<TABLE border="0" width="20%" 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="18%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="44%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CR&#146;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    =
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    &#8722; T
</TD>
</TR>
<TR valign="bottom" style="font-size: 2pt"><!-- 05-19-07 -->
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=60 length=0 -->
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    &#8722; C
</TD>
</TR>
</TABLE>
</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="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">
    where,
</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">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    = the conversion rate in effect immediately prior to the record
    date for such distribution;
</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">
    CR&#146;&#160;= the conversion rate in effect immediately after
    the record date for such distribution;
</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">
    SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    = the average of the reported closing sale prices of our common
    stock over the 10 consecutive trading day period ending on the
    business day immediately preceding the record date for such
    distribution (or, if earlier, the ex-dividend date relating to
    such distribution);
</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">
    T = the dividend threshold amount, which shall initially be
    $0.375 per share and which amount shall be appropriately
    adjusted from time to time for any share dividends on,
    subdivisions or combinations of, or any merger, consolidation,
    reclassification or other transaction, as described in the
    indenture, that changes the number of outstanding shares of, our
    common stock: provided, that if an conversion rate adjustment is
    required to be made as a result of a distribution that is not a
    quarterly dividend either in whole or in part, the dividend
    threshold amount shall be deemed to be zero;&#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">
    C = the amount in cash per share that we distribute to holders
    of our common 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">
    (5)&#160;If we or any of our subsidiaries makes a payment in
    respect of a tender offer or exchange offer for our common
    stock, if the cash and value of any other consideration included
    in the payment per share of our common stock exceeds the closing
    sale price of our common stock on the trading day next
    succeeding the last date on which tenders or exchanges may be
    made pursuant to such tender or exchange offer, the conversion
    rate will be increased based on the following formula:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-left: 38%; margin-right: 38%">
<TABLE border="0" width="24%" 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="15%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="9%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="56%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CR&#146;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    =
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    AC&#160;+&#160;(SP&#146;&#160;x&#160;OS&#146;)
</TD>
</TR>
<TR valign="bottom" style="font-size: 2pt"><!-- 05-19-07 -->
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=96 length=0 -->
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    SP&#146; x
    OS<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</TD>
</TR>
</TABLE>
</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="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">
    where,
</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">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    = the conversion rate in effect on the date such tender or
    exchange offer expires;
</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">
    CR&#146;&#160;= the conversion rate in effect on the day next
    succeeding the date such tender or exchange offer expires;
</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">
    AC = the aggregate value of all cash and any other consideration
    (as determined by our board of directors) paid or payable for
    stock purchased in such tender or exchange offer;
</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">
    OS<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    = the number of shares of our common stock outstanding
    immediately prior to the date such tender or exchange offer
    expires;
</DIV>

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

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

<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">
    OS&#146;&#160;= the number of shares of our common stock
    outstanding immediately after the date such tender or exchange
    offer expires;&#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">
    SP&#146;&#160;= the average of the reported closing sale prices
    of our common stock over the 10 consecutive
    <FONT style="white-space: nowrap">trading-day</FONT>
    period commencing on the trading day next succeeding the date
    such tender or exchange offer expires.
</DIV>

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

<DIV align="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, however, the application of the foregoing formula would
    result in a decrease in the conversion rate, no adjustment to
    the conversion rate will be made.
</DIV>

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

<DIV align="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 adjustment to the conversion rate under the preceding
    paragraph will occur on the 10th&#160;trading day from and
    including the trading day next succeeding the date the tender or
    exchange offer expires; provided that in respect of any
    conversion within the 10 trading days following the trading day
    next succeeding the date the tender or exchange offer expires,
    references within this paragraph (5)&#160;to
    &#147;10&#160;days&#148; shall be deemed replaced with such
    lesser number of trading days as have elapsed between the
    trading day next succeeding the date the tender or exchange
    offer expires and the conversion date in determining the
    applicable 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">
    Except as stated herein, we will not adjust the conversion rate
    for the issuance of shares of our common stock or any securities
    convertible into or exchangeable for shares of our common stock
    or the right to purchase shares of our common stock or such
    convertible or exchangeable securities. No adjustment in the
    conversion rate will be required unless the adjustment would
    require an increase or decrease of at least 1% of the conversion
    rate. If the adjustment is not made because the adjustment does
    not change the conversion rate by at least 1%, then the
    adjustment that is not made will be carried forward and taken
    into account in any future adjustment. All required calculations
    will be made to the nearest cent or
    1/1000<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;of
    a share, as the case may be. Notwithstanding the foregoing, if
    the notes are called for redemption, all adjustments not
    previously made will be made on the applicable redemption date.
</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">Events
    That Will Not Result in Adjustments.</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 applicable conversion rate will not be adjusted:
</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">
    upon the issuance of any of our common stock pursuant to any
    present or future plan providing for the reinvestment of
    dividends or interest payable on our securities and the
    investment of additional optional amounts in our common stock
    under any plan;
</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">
    upon the issuance of any of our common stock or options or
    rights to purchase such stock pursuant to any present or future
    employee, director or consultant benefit plan or program of or
    assumed by us or any of our subsidiaries;
</TD>
</TR>


<TR 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">
    upon the issuance of any of our common stock pursuant to any
    option, warrant, right or exercisable, exchangeable or
    convertible security outstanding as of the date the notes were
    first issued (except as described below);
</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">
    for a change in the par value of our common 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>    &#149;&#160;
</TD>
    <TD align="left">
    for accrued and unpaid interest;&#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">
    for the avoidance of doubt, for (i)&#160;the issuance of common
    stock by us (other than to all or substantially all holders of
    our common stock) or (ii)&#160;the payment of cash by us upon
    conversion, redemption or repurchase of notes.
</TD>
</TR>

</TABLE>

<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">Treatment
    of Reference Property.</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:
</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 reclassification of our common 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>    &#149;&#160;
</TD>
    <TD align="left">
    a transaction involving a fundamental change or other
    consolidation, merger or combination involving us;&#160;or
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-25
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<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 sale or conveyance to another person of all or substantially
    all of our property and assets, in which holders of our
    outstanding common stock would be entitled to receive cash,
    securities or other property for their 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: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    you will be entitled thereafter to convert your notes into cash
    in accordance with the terms hereof and in lieu of our common
    stock otherwise deliverable, the same type (in the same
    proportions) of consideration received by holders of our common
    stock in the relevant event (&#147;reference property&#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 amount of cash and any reference property you receive will
    be based on the daily conversion values of reference property
    and the applicable conversion rate, 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 purposes of the foregoing, the type and amount of
    consideration that a holder of our common stock would have been
    entitled to in the case of reclassifications, consolidations,
    mergers, sales or transfers of assets or other transactions that
    cause our common stock to be converted into the right to receive
    more than a single type of consideration (determined based in
    part upon any form of shareholder election) will be deemed to be
    the weighted average of the types and amounts of consideration
    received by the holders of our common stock that affirmatively
    make such an election.
</DIV>

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

<DIV align="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>Treatment of Rights.</I>&#160;&#160;To the extent that we
    have a rights plan in effect upon conversion of the notes into
    our common stock, you will receive, in addition to our common
    stock, the rights under the rights plan, unless prior to any
    conversion, the rights have separated from our common stock, in
    which case the conversion rate will be adjusted at the time of
    separation as if we distributed to all holders of our common
    stock, our stock of beneficial interest, evidences of
    indebtedness or assets as described in clause&#160;(3) under
    &#147;Adjustment Events&#148; 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">
    <I>Voluntary Increases of Conversion Rate.</I>&#160;&#160;We are
    permitted, to the extent permitted by law and subject to the
    applicable rules of the NYSE, to increase the conversion rate of
    the notes by any amount for a period of at least 20&#160;days if
    our board of directors determines that such increase would be in
    our best interest. We may also (but are not required to)
    increase the conversion rate to avoid or diminish income tax to
    holders of our common stock or rights to purchase our common
    stock in connection with a dividend or distribution of stock (or
    rights to acquire stock) or similar event.
</DIV>

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

<DIV align="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>Tax Effect.</I>&#160;&#160;A holder may, in some
    circumstances (generally including the distribution of cash
    dividends to holders of our common stock that triggers a
    conversion rate adjustment), be deemed to have received a
    constructive dividend subject to U.S.&#160;federal income tax as
    a result of an adjustment or the nonoccurrence of an adjustment
    to the conversion rate. Because a deemed dividend would not give
    rise to any cash from which any applicable U.S.&#160;federal
    withholding tax can be satisfied, we intend to, and the
    indenture provides that, we may, set-off any withholding tax
    that we are required to pay with respect to any such
    distribution against cash payments of interest on the notes. For
    a discussion of the U.S.&#160;federal income tax treatment of an
    adjustment to the conversion rate, see &#147;Certain
    U.S.&#160;Federal Income Tax Considerations&#160;&#151; U.S.
    Holders&#160;&#151; Adjustment of Conversion Rate,&#148;
    &#147;Certain U.S.&#160;Federal Income Tax
    Considerations&#160;&#151; Information Reporting and Backup
    Withholding&#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>
    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">Make
    Whole Upon Certain Fundamental Change Transactions</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 transaction involving a fundamental change occurs prior to
    June&#160;17, 2013, and if you elect to convert your notes in
    connection with any such fundamental change (any conversion
    during the Fundamental Change Conversion Period will be deemed
    to be &#147;in connection with&#148; a fundamental change,
    regardless of any other condition to conversion), the conversion
    rate for any such notes tendered for conversion will be
    increased by a number of additional shares of our common stock
    (the &#147;additional shares&#148;). The number of additional
    shares will be determined by reference to the table below, based
    on the date on which the fundamental change transaction occurs
    or becomes effective (the &#147;effective date&#148;) and the
    price (the &#147;share price&#148;) paid per share of our common
    stock in the fundamental change transaction. If holders of our
    common stock receive only cash in the fundamental change
    transaction, the share price will be the cash amount paid per
    share. Otherwise, the share price will be the average of the
    closing sale prices of our common stock over the five
    <FONT style="white-space: nowrap">trading-day</FONT>
    period ending on the trading day preceding the effective date of
    the fundamental change.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-26
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="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 share prices set forth in the first row of the table below
    (i.e., column headers) will be adjusted as of any date on which
    the conversion rate of the notes is otherwise adjusted. The
    adjusted share prices will equal the share 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 share price adjustment and
    the denominator of which is the conversion rate as so adjusted.
    The number of additional shares of stock will be adjusted in the
    same manner as the conversion rate as set forth under
    &#147;Conversion Rate 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 following table sets forth the share price paid per share of
    our common stock in the fundamental change transaction and the
    number of additional shares of stock per $1,000 principal amount
    of notes by which the conversion rate will be increased:
</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="29%">&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="4%" 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="4%" 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="4%" 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="4%" 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="4%" 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="4%" 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="4%" 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="4%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 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="30" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Effective Price</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<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>Effective Date</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$21.91</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$23.00</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$25.00</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$27.00</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$29.00</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$31.00</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$33.00</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$35.00</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">
    March&#160;4, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.2954
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.0430
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.1972
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.8709
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.9502
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.3519
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0000
</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">
    June&#160;15, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.2954
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.2951
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.3703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.9850
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.0170
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.3803
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0401
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0000
</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">
    June&#160;15, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.2954
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.4004
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.4101
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.9893
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.0061
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.3676
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0339
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0000
</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">
    June&#160;15, 2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.2954
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.3677
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.3029
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.8584
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.8849
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.2781
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0000
</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">
    June&#160;15, 2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.2954
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.0521
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.8753
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.4354
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.5452
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0776
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0000
</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">
    June&#160;17, 2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.2954
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.1324
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.6962
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0000
</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 exact share prices and effective dates may not be set forth
    in the table above, 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 share price is between two share price amounts in the
    table or the effective date is between two effective dates in
    the table, the number of additional shares of stock will be
    determined by a straight-line interpolation between the number
    of additional shares of stock set forth for the higher and lower
    share 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 share price is greater than $35.00 per share (subject to
    adjustment), the conversion rate will not be adjusted.
</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 share price is less than $21.91&#160;per share (subject
    to adjustment), the conversion rate will not be adjusted.
</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">
    Notwithstanding the foregoing, in no event will the total number
    of our common stock issuable upon conversion exceed
    45.6413&#160;per $1,000 principal amount of notes, subject to
    adjustments in the same manner as the conversion rate as set
    forth above under &#147;Conversion Rate Adjustments.&#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">Settlement
    of Conversions in a Fundamental Change</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;&#151;&#160;Conversion Rate
    Adjustments&#160;&#151; Treatment of Reference Property,&#148;
    upon effectiveness of any fundamental change, the notes will be
    convertible into reference property or cash and reference
    property, as applicable. If, as described above, we are required
    to increase the conversion rate by the additional shares of
    stock as a result of the fundamental change, notes surrendered
    for conversion will be settled as follows:
</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 last day of the applicable 20-trading day observation
    period related to notes surrendered for conversion is prior to
    the third trading day preceding the effective date of the
    fundamental change, we will settle such conversion as described
    above under &#147;&#151;&#160;Conversion Settlement&#148; by
    delivering the amount of cash, our common stock (based on the
    conversion rate without regard to the number of additional
    shares of stock to be added to the conversion rate as described
    above) or combination thereof, on the third trading day
    immediately following the last day of the applicable observation
    period. In addition, as soon as practicable following the
    effective date of the fundamental change, we will deliver the
    increase in such amount of cash and reference property
    deliverable in lieu of our common stock, if any, as if the
    conversion rate had been increased by such number of additional
    shares of stock during the related observation period (and based
    upon the related closing sale prices during such observation
    period). If such increased amount results in an increase to the
    amount of cash to be paid to holders, we will pay such increase
    in cash, and if such increased settlement amount results in an
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-27
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<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">
    increase to the number of shares, we will deliver such increase
    by delivering reference property based on such increased number
    of 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="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 last day of the applicable observation period related to
    notes surrendered for conversion is on or following the third
    scheduled trading day preceding the effective date of the
    fundamental change, we will settle such conversion as described
    above under &#147;&#151;&#160;Conversion Settlement&#148; (based
    on the conversion rate as increased by the additional shares of
    stock described above) on the later to occur of (1)&#160;the
    effective date of the transaction and (2)&#160;third trading day
    immediately following the last day of the applicable observation
    period.
</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">Ownership
    Limit</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 order to assist us in maintaining our qualification as a REIT
    for U.S.&#160;federal income tax purposes, no person may own, or
    be deemed to own by virtue of the attribution rules of the
    Internal Revenue Code, more than 9.8% of the value of our
    outstanding capital stock, subject to certain exceptions.
    Notwithstanding any other provision of the notes, no holder of
    notes will be entitled to convert such notes for our common
    stock to the extent that receipt of such common stock would
    cause such holder (together with such holder&#146;s affiliates)
    to exceed the ownership limit contained in our articles of
    incorporation. See &#147;Description of Common Stock&#160;&#151;
    Restrictions on Ownership Limits&#148; in 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">Calculations
    in Respect of the Notes</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 explicitly specified otherwise herein, we will be
    responsible for making all calculations required under the
    notes. These calculations include, but are not limited to,
    determinations of the closing sale price of the common stock,
    accrued interest payable on the notes, the conversion price and
    the conversion rate; and any adjustments thereto, applicable to
    the notes. We will make all these calculations in good faith
    and, absent manifest error, our calculations will be final and
    binding on holders of the notes. We will provide a schedule of
    our calculations to the trustee, and the trustee is entitled to
    rely upon the accuracy of our calculations without independent
    verification. The trustee will forward our calculations to any
    holder of notes upon request of the holder.
</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">Merger,
    Consolidation or Sale</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 addition to the conditions set forth under &#147;Description
    of Debt Securities&#160;&#151; Merger, Consolidation or
    Sale&#148; in the accompanying prospectus, we may consolidate
    with, or sell, lease or convey all or substantially all of our
    assets to, or merge with or into, any other corporation, 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="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 successor corporation (if not us), or the corporation to
    whom all or substantially all our assets are sold or leased, is
    organized in the United States or any political subdivision
    thereof;&#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">
    as a result of such transaction, the notes become convertible
    into common stock or other securities issued by a third party,
    and such third party assumes or fully and unconditionally
    guarantees all obligations under the notes and the indenture.
</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">Events of
    Default, Notice and Waiver</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 addition to the Events of Default specified under
    &#147;Description of Debt Securities&#160;&#151; Events of
    Default, Notice and Waiver&#148; in the accompanying prospectus,
    the following events shall also constitute &#147;Events of
    Default&#148; with respect to the notes:
</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">
    failure to pay principal of any of the notes when the same
    becomes due and payable prior to the stated maturity date on any
    date of redemption or repurchase or otherwise;
</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">
    default in the delivery when due of the conversion value, on the
    terms set forth in the indenture and the notes, upon exercise of
    a holder&#146;s conversion right in accordance with the
    indenture and the continuation of such default for 10&#160;days;
</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 PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<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 failure to provide notice of the occurrence of a fundamental
    change when required under the indenture, and such failure
    continues for a period of 10&#160;days;&#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 entry by a court of competent jurisdiction of one or more
    judgments, orders or decrees against the Company or any of its
    subsidiaries in an aggregate amount (excluding amounts covered
    by insurance) in excess of $25&#160;million and such judgments,
    orders or decrees remain undischarged, unstayed and unsatisfied
    in an aggregate amount (excluding amounts covered by insurance)
    in excess of $25&#160;million for a period of 30 consecutive
    days.
</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 to the exceptions for waiving past defaults as
    specified under &#147;Description of Debt Securities&#160;&#151;
    Events of Default, Notice and Waiver&#148; in the accompanying
    prospectus, holders of a majority in principal amount of the
    outstanding notes may not waive any past default and its
    consequences where the default relates to the second bullet
    above.
</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">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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the changes or modifications to the indenture
    where we are required to obtain the consent of each holder
    affected thereby as specified under &#147;Description of Debt
    Securities&#160;&#151; Modification of the Indenture&#148; in
    the accompanying prospectus, we must obtain the consent of each
    holder of the notes affected by a change to make any changes
    that:
</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">
    reduce the conversion rate or adversely affect the calculation
    of the conversion value in accordance with the 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    adversely affect the rights of a holder to convert notes in
    accordance with the 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reduce the redemption price, repurchase price or fundamental
    change repurchase price;
</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">
    adversely changes the Company&#146;s obligations to make any
    redemption or repurchase payments applicable to the notes.
</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">
    A note shall be deemed outstanding if it has been authenticated
    and delivered under the indenture unless, among other things,
    such note has matured or been canceled, converted, redeemed or
    repurchased.
</DIV>

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

<DIV align="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 indenture provides that the holders of not less than a
    majority in principal amount of outstanding notes have the right
    to waive compliance by us with specified covenants in the
    indenture in respect of the notes.
</DIV>

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

<DIV align="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 to the modifications and amendments to the indenture
    not requiring the consent of any holder as specified under the
    &#147;Description of Debt Securities&#160;&#151; Modification of
    the Indenture&#148; in the accompanying prospectus, we and the
    trustee will be permitted without the consent of any holder when
    authorized by our board of directors to:
</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">
    provide for conversion rights of holders of notes if any
    reclassification or change of our common stock or any
    consolidation, merger or sale of all or substantially all of our
    property or assets occurs as set forth in the indenture;&#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">
    amend or supplement any provisions of the indenture, provided
    that no such amendment or supplement shall materially adversely
    affect the interests of the holders of any debt securities then
    outstanding under any indenture.
</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 indenture contains provisions for convening meetings of the
    holders of the notes, which are described under
    &#147;Description of Debt Securities&#160;&#151; Meetings of the
    Holders of Debt Securities&#148; in 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">Discharge,
    Defeasance and Covenant Defeasance</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 may satisfy and discharge our obligations under the indenture
    by delivering to the securities registrar for cancellation all
    outstanding notes or by depositing with the trustee or
    delivering to the holders, as applicable, after the notes have
    become due and payable, whether at stated maturity, or any
    repurchase date or
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-29
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<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">
    following the end of the related observation period upon
    conversion, or upon conversion or otherwise, cash or common
    stock (as applicable under the terms of the indenture)
    sufficient to pay all of the outstanding notes and paying all
    other sums payable under the indenture by us. Such discharge is
    subject to terms contained in the indenture. See
    &#147;Description of Debt Securities&#160;&#151; Discharge,
    Defeasance and Covenant Defeasance&#148; in the accompanying
    properties. The notes will not be subject to defeasance or
    covenant defeasance.
</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">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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The indenture is and the notes will be governed by, and
    construed in accordance with, the laws of the State of New York.
</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">Trustee</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">
    U.S.&#160;Bank National Association will be the trustee,
    registrar, conversion agent, bid solicitation agent and paying
    agent for the notes.
</DIV>

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

<DIV align="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 trustee becomes one of our creditors, it will be subject
    to limitations on its rights to obtain payment of claims or to
    realize on some property received for any such claim, as
    security or otherwise. The trustee is permitted to engage in
    other transactions with us. If, however, it acquires any
    conflicting interest, it must eliminate that conflict or resign.
</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
    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">
    The notes will be issued in the form of one or more
    fully-registered global notes in book-entry form, which will be
    deposited with, or on behalf of, The Depository
    Trust&#160;Company, New York, New York, or DTC, and registered
    in the name of DTC&#146;s nominee, Cede&#160;&#038; Co. Except
    as set forth below, the global notes may not be transferred
    except as a whole by DTC to a nominee of DTC or by a nominee of
    DTC to DTC or another nominee of DTC or by DTC or any such
    nominee to a successor of DTC or a nominee of such successor.
</DIV>

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

<DIV align="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 DTC or its nominee is the registered owner of a
    global note, DTC or its nominee, as the case may be, will be
    considered the sole holder of the notes represented by such
    global note for all purposes under the indenture and the
    beneficial owners of the notes will be entitled only to those
    rights and benefits afforded to them in accordance with
    DTC&#146;s regular operating procedures. Upon specified written
    instructions of a participant in DTC, DTC will have its nominee
    assist participants in the exercise of certain holders&#146;
    rights, such as demand for acceleration of maturity or an
    instruction to the trustee. Except as provided below, owners of
    beneficial interests in a global note will not be entitled to
    have notes registered in their names, will not receive or be
    entitled to receive physical delivery of notes in certificated
    form and will not be considered the registered 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If (i)&#160;DTC is at any time unwilling or unable to continue
    as depositary or if at any time DTC ceases to be a clearing
    agency registered under the Exchange Act and a successor
    depositary is not appointed by us within 90&#160;days,
    (ii)&#160;an Event of Default under the indenture relating to
    the notes has occurred and is continuing or (iii)&#160;we, in
    our sole discretion, determine at any time that the notes shall
    no longer be represented by a global note, we will issue
    individual notes in certificated form of the same series and
    like tenor and in the applicable principal amount in exchange
    for the notes represented by the global note. In any such
    instance, an owner of a beneficial interest in a global note
    will be entitled to physical delivery of individual notes in
    certificated form of the same series and like tenor, equal in
    principal amount to such beneficial interest and to have the
    notes in certificated form registered in its name. Notes so
    issued in certificated form will be issued in denominations of
    $1,000 or any integral multiple thereof and will be issued in
    registered form only, without coupons.
</DIV>

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

<DIV align="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 based on information furnished by DTC:
</DIV>

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

<DIV align="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 will act as securities depositary for the notes. The notes
    will be issued as fully-registered notes registered in the name
    of Cede&#160;&#038; Co. (DTC&#146;s partnership nominee) or such
    other name as may be requested by an authorized representative
    of DTC.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-30
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="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, the world&#146;s largest 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
    Exchange Act. DTC holds and provides asset servicing for over
    2&#160;million issues of U.S.&#160;and
    <FONT style="white-space: nowrap">non-U.S.&#160;equity</FONT>
    issues, corporate and municipal debt issues and money market
    instruments from over 85 countries that DTC&#146;s direct
    participants deposit with DTC.
</DIV>

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

<DIV align="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 also facilitates the post-trade settlement among direct
    participants of sales and other securities transactions in
    deposited securities, through electronic computerized book-entry
    transfers and pledges between direct participants&#146;
    accounts. This eliminates the need for physical movement of
    securities certificates. Direct participants include both
    U.S.&#160;and
    <FONT style="white-space: nowrap">non-U.S.&#160;securities</FONT>
    brokers and dealers, banks, trust companies, clearing
    corporations, and certain other organizations. DTC is a
    wholly-owned subsidiary of The Depository Trust&#160;&#038;
    Clearing Corporation (&#147;DTCC&#148;). DTCC, in turn, is owned
    by a number of direct participants of DTC and members of the
    National Securities Clearing Corporation, Government Securities
    Clearing Corporation, MBS Clearing Corporation, and Emerging
    Markets Clearing Corporation, as well as by The NYSE, the
    American Stock Exchange LLC and the National Association of
    Securities Dealers, Inc. Access to the DTC system is also
    available to others such as both U.S.&#160;and
    <FONT style="white-space: nowrap">non-U.S.&#160;securities</FONT>
    brokers and dealers, banks, trust companies and clearing
    corporations that clear through or maintain a custodial
    relationship with a direct participant, either directly or
    indirectly. DTC has Standard&#160;&#038; Poor&#146;s highest
    rating: AAA. The DTC rules applicable to its participants are on
    file with the SEC. More information about DTC can be found at
    www.dtcc.com.
</DIV>

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

<DIV align="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 the notes under the DTC system must be made by or
    through direct participants, which will receive a credit for the
    notes on DTC&#146;s records. The beneficial interest of each
    actual purchaser of each note is in turn to be recorded on the
    direct and indirect participants&#146; records. Beneficial
    owners will not receive written confirmation from DTC of their
    purchase. Beneficial owners are, however, expected to receive
    written confirmations providing details of the transaction, as
    well as periodic statements of their holdings, from the direct
    or indirect participant through which the beneficial owner
    entered into the transaction. Transfers of beneficial interests
    in the notes are to be accomplished by entries made on the books
    of direct and indirect participants acting on behalf of
    beneficial owners. Beneficial owners will not receive
    certificates representing their beneficial interests in notes,
    except in the event that use of the book-entry system for the
    notes is discontinued. The laws of some states require that
    certain persons take physical delivery in definitive form of
    securities which they own. Such limits and such laws may impair
    the ability of such persons to own, transfer or pledge
    beneficial interests in a global note.
</DIV>

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

<DIV align="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 facilitate subsequent transfers, all notes deposited by
    direct participants with DTC will be registered in the name of
    DTC&#146;s partnership nominee, Cede&#160;&#038; Co. or such
    other name as may be requested by an authorized representative
    of DTC. The deposit of the notes with DTC and their registration
    in the name of Cede&#160;&#038; Co. or such other nominee do not
    effect any change in beneficial ownership. DTC has no knowledge
    of the actual beneficial owners of the notes; DTC&#146;s records
    reflect only the identity of the direct participants to whose
    accounts the notes will be credited, which may or may not be the
    beneficial owners. The direct and indirect 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 will be governed by arrangements among them,
    subject to any statutory or regulatory requirements as may be in
    effect from time to time. Beneficial owners of the notes may
    wish to take certain steps to augment the transmission to them
    of notices of significant events with respect to the notes, such
    as redemption, tenders, defaults, and proposed amendments to the
    security documents. For example, beneficial owners of the notes
    may wish to ascertain that the nominee holding the notes for
    their benefit has agreed to obtain and transmit notices to
    beneficial owners. In the alternative, beneficial owners may
    wish to provide their names and addresses to the registrar of
    the notes and request that copies of the notices be provided to
    them directly. Any such request may or may not be successful.
</DIV>

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    <BR>
    S-31
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="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 DTC nor Cede&#160;&#038; Co. (nor any other DTC nominee)
    will consent or vote with respect to the notes unless authorized
    by a direct participant in accordance with DTC&#146;s
    procedures. Under its usual procedures, DTC mails an Omnibus
    Proxy to us as soon as possible after the regular record date.
    The Omnibus Proxy assigns Cede&#160;&#038; Co.&#146;s consenting
    or voting rights to those direct participants to whose accounts
    the notes 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 pay principal of and interest on the notes in
    <FONT style="white-space: nowrap">same-day</FONT>
    funds to the trustee and from the trustee to DTC, or such other
    nominee as may be requested by an authorized representative of
    DTC. DTC&#146;s practice is to credit direct participants&#146;
    accounts on the applicable payment date in accordance with their
    respective holdings shown on DTC&#146;s records upon DTC&#146;s
    receipt of funds and corresponding detail information. Payments
    by participants to beneficial owners will be governed by
    standing instructions and customary practices, as is the case
    with securities held for the accounts of customers in bearer
    form or registered in &#147;street name,&#148; and will be the
    responsibility of these participants and not of us, the trustee,
    DTC, or any other party, subject to any statutory or regulatory
    requirements that may be in effect from time to time. Payment of
    principal and interest to Cede&#160;&#038; Co., or such other
    nominee as may be requested by an authorized representative of
    DTC, is the responsibility of us or the trustee, disbursement of
    such payments to direct participants is the responsibility of
    DTC, and disbursement of such payments to the beneficial owners
    is the responsibility of the direct or indirect participants.
</DIV>

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

<DIV align="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 any redemption notices to DTC. If less than all of
    the notes are being redeemed, DTC&#146;s practice is to
    determine by lot the amount of the interest of each direct
    participant in such issue 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">
    A beneficial owner of notes shall give notice to elect to have
    its notes purchased or tendered, through its participant, to the
    conversion agent and shall effect delivery of such notes by
    causing the direct participant to transfer the
    participant&#146;s interest in notes, on DTC&#146;s records, to
    the conversion agent. The requirement for physical delivery of
    notes in connection with an optional tender or a mandatory
    purchase will be deemed satisfied when the ownership rights in
    the notes are transferred by direct participants on DTC&#146;s
    records and followed by a book-entry credit of tendered notes to
    the conversion agent&#146;s DTC account.
</DIV>

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

<DIV align="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 for the notes at any time by giving us reasonable
    notice. Under such circumstances, if a successor securities
    depositary is not obtained, we will print and deliver
    certificated notes. We may decide to discontinue use of the
    system of book-entry transfers through DTC (or a successor
    securities depositary). In that event, we will print and deliver
    certificated notes.
</DIV>

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

<DIV align="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, the underwriters and the trustee will have no responsibility
    or liability for any aspect of the records relating to or
    payments made on account of the beneficial interests in a global
    note, or for maintaining, supervising or reviewing any records
    relating to such beneficial 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 DTC and DTC&#146;s
    system has been obtained from sources that we believe to be
    reliable, but we take no responsibility for its accuracy.
</DIV>

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    <BR>
    S-32
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='109'>
<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">CERTAIN
    U.S. FEDERAL INCOME TAX CONSIDERATIONS</FONT></B>
</DIV>
</A>
<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">
    The following is a general discussion of the material
    U.S.&#160;federal income tax considerations applicable to
    initial beneficial owners of notes who purchase notes at their
    original issue price and hold the notes as capital assets. This
    discussion is based on the Internal Revenue Code of 1986, as
    amended (the &#147;Code&#148;), income tax regulations
    promulgated thereunder, judicial positions, published positions
    of the Internal Revenue Service (&#147;IRS&#148;) and other
    applicable authorities, all as in effect as of the date hereof
    and all of which are subject to change, possibly with
    retroactive effect. This discussion does not address all of the
    tax consequences that may be relevant to a particular holder or
    to holders subject to special treatment under the Code, such as
    financial institutions, brokers, dealers in securities and
    commodities, insurance companies, former U.S.&#160;citizens or
    long-term residents, regulated investment companies, real estate
    investment trusts, tax-exempt organizations, persons subject to
    the alternative minimum tax, persons that are, or that hold
    their notes through, partnerships or other pass-through
    entities, U.S.&#160;holders (as defined below) whose functional
    currency is not the U.S.&#160;dollar, or persons that hold notes
    as part of a straddle, hedge, conversion, synthetic security or
    constructive sale transaction for U.S.&#160;federal income tax
    purposes. Except as specifically provided below with respect to
    <FONT style="white-space: nowrap">non-U.S.&#160;holders</FONT>
    (as defined below), the discussion is limited to beneficial
    owners of notes that are U.S.&#160;holders. This discussion is a
    supplement to, and should be read in conjunction with, the
    accompanying prospectus (including the discussion in the
    prospectus under the heading &#147;Federal Income Tax
    Considerations&#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 discussion, a U.S.&#160;holder means a
    beneficial owner of notes that for U.S.&#160;federal income tax
    purposes is:
</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 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 created or organized in or under the laws of the
    United States, any of its states 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 includible in gross income for
    U.S.&#160;federal income tax purposes 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 (a)&#160;a U.S.&#160;court is able to exercise
    primary supervision over the administration of such trust; and
    one or more U.S.&#160;persons have authority to control all
    substantial decisions of the trust, or (b)&#160;it has a valid
    election in place to be treated as a U.S.&#160;person.
</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">
    If a partnership, including an entity or arrangement that is
    treated as a partnership for U.S.&#160;federal income tax
    purposes, is a beneficial owner of the notes, the treatment of a
    partner in the partnership will generally depend on the status
    of the partner and the activities of the partnership. Such
    partners and partnerships are urged to consult their 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">
    A
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    means any beneficial owner of a note that is not a
    U.S.&#160;holder or an entity or arrangement 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">
    <B>If you are considering buying the notes, we urge you to
    consult your tax advisor about the particular federal, state,
    local and foreign tax consequences of the acquisition, ownership
    and disposition of the notes and the application of the
    U.S.&#160;federal income tax laws to your particular
    situation.</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">Interest</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 U.S.&#160;holder generally will be required to report interest
    earned on the notes as ordinary income in accordance with the
    U.S.&#160;holder&#146;s regular method of tax accounting. In
    general, if the terms of a debt instrument entitle a holder to
    receive payments, other than certain fixed periodic interest
    payments, that, in aggregate, exceed the issue price of the
    instrument by an amount equal to or greater than a de minimis
    amount, the debt instrument may be treated as issued with
    &#147;original issue discount,&#148; in which case the holder
</DIV>

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    <BR>
    S-33
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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">
    would, regardless of its regular method of tax accounting, be
    required to accrue interest income using a constant yield method
    over the term of the instrument. The notes are not expected to
    be issued with original issue discount for U.S.&#160;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">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">
    Upon the sale, exchange, redemption, retirement, repurchase or
    other taxable disposition of a note (other than a conversion
    into a combination of cash and common shares), a
    U.S.&#160;holder who acquired the note upon its issuance will
    generally recognize capital gain or loss equal to the difference
    (if any) between the amount realized (other than amounts
    attributable to accrued but unpaid stated interest which will be
    taxable as ordinary income if not previously included in such
    holder&#146;s income) and such U.S.&#160;holder&#146;s tax basis
    in the note. The U.S.&#160;holder&#146;s tax basis for a note
    generally will be the purchase price for the note. Such gain or
    loss will generally be treated as long-term capital gain or loss
    if the note was held for more than one year. Long-term capital
    gain recognized by certain noncorporate U.S.&#160;holders
    generally will be subject to a preferential tax rate. In this
    regard, the Tax Increase Prevention and Reconciliation Act of
    2005 extended the 15% maximum U.S.&#160;federal income tax rate
    on net long-term capital gains recognized by domestic
    non-corporate taxpayers to taxable years beginning before
    January&#160;1, 2011. Subject to limited exceptions, capital
    losses cannot be used to offset a U.S.&#160;holder&#146;s
    ordinary income.
</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 Notes</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 we decide to satisfy the conversion obligation in part cash
    and part common shares, a U.S.&#160;holder will recognize as
    taxable income any gain realized in the conversion to the extent
    of the cash received (excluding amounts or shares allocable to
    interest, which will be taxable as ordinary income, and cash
    received in lieu of a fractional common share), but no loss will
    be recognized on such conversion. The U.S.&#160;holder&#146;s
    tax basis in the common shares permitted to be received tax-free
    will equal the U.S.&#160;holder&#146;s tax basis in the
    corresponding note (reduced by any tax basis allocable to a
    fractional common share), less the amount of cash received
    (excluding amounts allocable to accrued but unpaid interest and
    cash received in lieu of a fractional common share), plus the
    amount of taxable gain recognized on the conversion. The
    U.S.&#160;holder&#146;s holding period for the common shares
    received will include the holding period for the corresponding
    note (except for any common shares received allocable to accrued
    but unpaid interest, which will have a holding period beginning
    on the day of conversion). Cash received in lieu of a fractional
    common share upon conversion of the notes will generally be
    treated as a payment in exchange for the fractional share.
    Accordingly, the receipt of cash in lieu of a fractional common
    share generally will result in capital gain or loss measured by
    the difference between the cash received for the fractional
    share and the holder&#146;s adjusted tax basis allocable to the
    fractional share. Alternatively, in the event that we decide to
    satisfy the conversion obligation entirely in cash, the
    U.S.&#160;holder will recognize gain or loss equal to the
    difference between the proceeds received by such
    U.S.&#160;holder (excluding amounts attributable to accrued but
    unpaid interest which will be taxable as ordinary income) and
    the U.S.&#160;holder&#146;s adjusted tax basis in the note. See
    &#147;&#151;&#160;Disposition&#148; 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">
    Any common shares received upon a conversion of a note would be
    subject to the rules described in the accompanying prospectus
    regarding taxation and backup withholding of U.S.&#160;federal
    income tax on distributions on, or sales or other dispositions
    of, our common shares. See &#147;Federal Income Tax
    Considerations&#160;&#151; Taxation of Stockholders&#160;&#151;
    Taxation of Taxable U.S.&#160;Stockholders&#148; and
    &#147;Federal Income Tax Considerations&#160;&#151; Taxation of
    Stockholders&#160;&#151; Taxation of Tax-Exempt
    Stockholders&#148; in the accompanying prospectus.
</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 notes is subject to adjustment under
    certain circumstances (see &#147;Description of
    Notes&#160;&#151; Conversion Rights&#160;&#151; Conversion Rate
    Adjustments&#148;). Certain adjustments to (or the failure to
    make such adjustments to) the conversion rate of the notes that
    increase a U.S.&#160;holder&#146;s proportionate interest in our
    assets or earnings and profits may result in a taxable
    constructive distribution to the U.S.&#160;holder, whether or
    not the U.S.&#160;holder ever converts the notes. This would
    occur, for example, for an adjustment to the conversion rate to
    compensate holders of notes for distributions of cash or
    property to our shareholders. Any such constructive distribution
    will be treated as a dividend for tax purposes, resulting in
    ordinary income, to the
</DIV>

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    <BR>
    S-34
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<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">
    extent of our current or accumulated earnings and profits as
    determined for federal income tax purposes. Because we are a
    REIT, dividends paid by us will generally not be &#147;qualified
    dividends&#148; and thus will be taxed at the tax rates
    applicable to ordinary income rather than the 15% rate
    applicable to certain qualified dividends. As a result,
    U.S.&#160;holders could have taxable income as a result of an
    event pursuant to which they receive no cash or property.
    Generally, a U.S.&#160;holder&#146;s tax basis in a note will be
    increased to the extent any such constructive distribution is
    treated as a dividend. Moreover, if there is an adjustment (or a
    failure to make an adjustment) to the conversion rate of the
    notes that increases the proportionate interest of the holders
    of outstanding common shares in our assets or earnings and
    profits, then such increase in the proportionate interest of the
    holders of the common shares generally will be treated as a
    constructive distribution to such holders of common shares,
    taxable as described above.
</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">Interest</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 rules governing the U.S.&#160;federal income taxation of
    <FONT style="white-space: nowrap">non-U.S.&#160;holders</FONT>
    are complex, and no attempt will be made herein to provide more
    than a summary of such rules. Prospective
    <FONT style="white-space: nowrap">non-U.S.&#160;holders</FONT>
    should consult with their own tax advisors to determine the
    impact of U.S.&#160;federal, state, local, and
    <FONT style="white-space: nowrap">non-U.S.&#160;laws</FONT>
    with regard to the notes.
</DIV>

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

<DIV align="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>
    generally, but subject to the rules described below under
    &#147;&#151;&#160;Information Reporting and Backup
    Withholding,&#148; will not be subject to U.S.&#160;federal
    income or withholding tax on payments of interest on a note,
    provided that
</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="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
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    is not:
</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="6%"></TD>
    <TD width="2%"></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>    &#149;&#160;
</TD>
    <TD align="left">
    a direct or indirect owner of 10% or more of the total voting
    power of all our voting stock;
</TD>
</TR>


<TR style="line-height: 3pt; 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 controlled foreign corporation related (directly or
    indirectly) to us through stock ownership;&#160;or
</TD>
</TR>


<TR style="line-height: 3pt; 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 bank whose receipt of interest on a note is pursuant to a loan
    agreement entered into in the ordinary course of business;
</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="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">
    such interest payments are not effectively connected with the
    conduct by the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    of a trade or business within the United States;&#160;and
</TD>
</TR>


<TR style="line-height: 3pt; 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 or our paying agent receives certain information from the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    (or a financial institution that holds the notes in the ordinary
    course of its trade or business), including certification that
    such holder is a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder.</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">
    A
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    that is not exempt from tax under these rules generally will be
    subject to U.S.&#160;federal income tax withholding at a rate of
    30% unless:
</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="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 income is effectively connected with the conduct of a
    U.S.&#160;trade or business;&#160;or
</TD>
</TR>


<TR style="line-height: 3pt; 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 applicable income tax treaty provides for a lower rate of, or
    exemption from, withholding tax.
</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">
    Except to the extent provided by an applicable tax treaty,
    interest on a note that is effectively connected with the
    conduct by a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    of a trade or business in the U.S.&#160;generally will be
    subject to U.S.&#160;federal income tax on a net basis at the
    rates applicable to U.S.&#160;persons generally (and, if
    realized by corporate holders, may also be subject to a 30%
    branch profits tax, which is generally imposed on a foreign
    corporation on the actual or deemed repatriation from the United
    States of earnings and profits attributable to a United States
    trade or business). If interest is subject to U.S.&#160;federal
    income tax on a net basis in accordance with the rules described
    in the preceding sentence, payments of such interest or of the
    disposition proceeds will not be subject to
    U.S.&#160;withholding tax so long as the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    timely provides us or the paying agent with an IRS
    <FONT style="white-space: nowrap">Form&#160;W-8ECI.</FONT>
    To claim the benefit of an income tax treaty, the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    must timely provide the appropriate, properly executed IRS forms.
</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">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
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    generally will not be subject to U.S.&#160;federal income or
    withholding tax to the extent the note is converted into our
    common shares. To the extent a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    recognizes any gain as a result
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-35
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<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">
    of the receipt of cash in the conversion (including the receipt
    of cash in lieu of a fractional common share upon conversion),
    such gain would be subject to the rules described below with
    respect to the sale or exchange of a note. To the extent that a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    receives upon conversion any cash or common shares attributable
    to accrued but unpaid interest not previously included in
    income, such shares would be subject to the rules described
    above for interest.
</DIV>

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

<DIV align="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 common shares received upon a conversion of a note would be
    subject to the rules described in the accompanying prospectus
    regarding taxation and withholding of U.S.&#160;federal income
    tax on distributions on, or sales or other dispositions of, our
    common shares held by a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder.</FONT>
    See &#147;Federal Income Tax Considerations&#160;&#151; Taxation
    of Stockholders&#160;&#151; Taxation of
    <FONT style="white-space: nowrap">Non-U.S.&#160;Stockholders&#148;</FONT>
    in the accompanying prospectus.
</DIV>

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

<DIV align="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 notes is subject to adjustment in
    certain circumstances. Any such adjustment (or failure to make
    such adjustment) could, in certain circumstances, give rise to a
    deemed distribution to
    <FONT style="white-space: nowrap">non-U.S.&#160;holders.</FONT>
    See &#147;&#160;&#151; U.S. Holders&#160;&#151; Adjustment of
    Conversion Rate&#148; above. In such case, the deemed
    distribution would be subject to the rules described in the
    accompanying prospectus regarding taxation and withholding of
    U.S.&#160;federal income tax on dividends in respect of common
    shares. See &#147;Federal Income Tax
    Considerations&#160;&#151;&#160;Taxation of
    Stockholders&#160;&#151; Taxation of
    <FONT style="white-space: nowrap">Non-U.S.&#160;Stockholders&#148;</FONT>
    in the accompanying prospectus. Any resulting withholding tax
    attributable to deemed dividends would be collected from
    interest payments made on the notes.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Generally, but subject to the rules described below under
    &#147;&#151;&#160;Information Reporting and Backup
    Withholding&#160;&#151; Non-U.S. Holders,&#148; a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    will not be subject to U.S.&#160;federal income or withholding
    tax on gains from the sale or other taxable disposition of a
    note 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">
    such gains are effectively connected with the conduct by the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    of a trade or business within the U.S.&#160;and, if the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    is entitled to the benefits under an applicable tax treaty,
    attributable to a permanent establishment or a fixed base in the
    U.S.;
</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">
    such
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    is an individual who is present in the U.S.&#160;for
    183&#160;days or more in the taxable year of disposition and
    meets certain other requirements;&#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">
    the notes constitute a U.S.&#160;real property interest within
    the meaning of the Foreign Investment in Real Property Tax Act,
    which is referred to as FIRPTA.
</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">
    Except to the extent provided by an applicable tax treaty, a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    generally will be subject to U.S.&#160;federal income tax with
    respect to gain from the sale or disposition of a note that is
    effectively connected with the conduct by the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    of a trade or business in the United States on a net basis at
    the rates applicable to U.S.&#160;persons generally (and
    <FONT style="white-space: nowrap">non-U.S.&#160;holders</FONT>
    that are corporations may also be subject to a 30% branch
    profits tax (or at a reduced rate under an applicable income tax
    treaty), which is generally imposed on a foreign corporation on
    the actual or deemed repatriation from the United States of
    earnings and profits attributable to a United States trade or
    business). If such gains are realized by a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    who is an individual present in the United States for
    183&#160;days or more in the taxable year, then such individual
    generally will be subject to U.S.&#160;federal income tax at a
    rate of 30% (or at a reduced rate under an applicable income tax
    treaty) on the amount by which capital gains from
    U.S.&#160;sources (including gains from the sale or other
    disposition of the notes) exceed capital losses allocable to
    U.S.&#160;sources. To claim the benefit of an income tax treaty,
    the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    must timely provide the appropriate, properly executed IRS
    forms. If the notes were to constitute a U.S.&#160;real property
    interest under FIRPTA, a sale or exchange of a note would
    generally be subject to the rules described in the accompanying
    prospectus regarding taxation and withholding of
    U.S.&#160;federal income tax on sales of common shares under
    FIRPTA. The notes will not constitute a U.S.&#160;real property
    interest for purposes of FIRPTA if we are a
    domestically-controlled REIT. We believe that currently we are,
    and expect to continue to be, a domestically-controlled REIT
    and, therefore, that a sale of the notes would not be subject to
    taxation under FIRPTA. However, because our stock is publicly
    traded, we cannot assure you that we will be a
    domestically-controlled REIT at all times in the future. See
    &#147;Federal Income Tax Considerations&#160;&#151; Taxation of
    Stockholders&#160;&#151; Taxation of
    <FONT style="white-space: nowrap">Non-U.S.&#160;Stockholders&#148;</FONT>
    in the accompanying prospectus.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-36
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<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">Information
    Reporting and Backup Withholding</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">U.S.
    Holders</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 a
    U.S.&#160;holder (other than an &#147;exempt recipient,&#148;
    including a corporation and certain other persons who, when
    required, demonstrate their exempt status) with respect to:
</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 payments made of principal of and interest on the
    notes;&#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">
    payment of the proceeds of a sale or other disposition of the
    notes before maturity.
</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 addition, &#147;backup withholding&#148; at the applicable
    statutory rate may apply to such amounts if a U.S.&#160;holder
    fails to provide a correct taxpayer identification number or
    otherwise comply with applicable requirements of the backup
    withholding rules. As described in &#147;U.S.
    Holders&#160;&#151; Adjustment of Conversion Rate&#148; above,
    certain adjustments to (or failures to make an adjustment to)
    the conversion rate of the notes may result in a deemed dividend
    to the holder of a note. Any backup withholding obligation
    attributable to such deemed dividends would be collected from
    interest payments made on the notes.
</DIV>

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

<DIV align="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 backup withholding is not an additional tax and may be
    refunded or credited against the U.S.&#160;holder&#146;s
    U.S.&#160;federal income tax liability, provided that the
    required information is provided to the IRS.
</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"><FONT style="white-space: nowrap">Non-U.S.</FONT>
    Holders</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">
    Payments to a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    of interest on a note generally will be reported to the IRS and
    to the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder.</FONT>
    Copies of applicable IRS information returns may be made
    available, under the provisions of a specific tax treaty or
    agreement, to the tax authorities of the country in which the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    resides. Additional information reporting and backup withholding
    will not apply to payments of interest with respect to which
    either the requisite certification that the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    is not a U.S.&#160;person for U.S.&#160;federal income tax
    purposes, as described under the heading
    <FONT style="white-space: nowrap">&#147;Non-U.S.&#160;Holders&#160;&#151;</FONT>
    Interest&#148; above, has been received or an exemption has
    otherwise been established provided that neither we nor our
    paying agent have actual knowledge or reason to know that the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    is a U.S.&#160;person that is not an exempt recipient or that
    the conditions of any other exemption are not, in fact,
    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">
    As a general matter, backup withholding and information
    reporting will not apply to a payment of the proceeds of a sale
    of a note effected at a foreign office of a foreign broker.
    Information reporting (but not backup withholding) will apply,
    however, to a payment of the proceeds of a sale of a note by a
    foreign office of a broker that:
</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">
    is a U.S.&#160;person;
</TD>
</TR>


<TR style="line-height: 3pt; 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">
    derives 50% or more of its gross income for a specified
    three-year period from the conduct of a trade or business in the
    U.S.;
</TD>
</TR>


<TR style="line-height: 3pt; 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">
    is a &#147;controlled foreign corporation&#148; (a foreign
    corporation controlled by certain U.S.&#160;shareholders) for
    U.S.&#160;tax purposes;&#160;or
</TD>
</TR>


<TR style="line-height: 3pt; 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">
    is a foreign partnership, if at any time during its tax year
    more than 50% of its income or capital interests are held by
    U.S.&#160;persons or if it is engaged in the conduct of a trade
    or business in the U.S.,
</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">
    unless the broker has documentary evidence in its records that
    the holder or beneficial owner is a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    and certain other conditions are met, or the holder otherwise
    establishes an exemption. Payment of the proceeds of a sale of a
    note effected at a U.S.&#160;office of a broker is subject to
    both backup withholding and information reporting unless the
    holder certifies under penalty of perjury that the holder is a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder,</FONT>
    or otherwise establishes an exemption; provided that, in either
    case, neither we nor any withholding agent knows or has reason
    to know that the holder is a United States person or that the
    conditions of any other exemptions are in fact not 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">
    Upon surrender of a note for conversion, we may deduct and
    withhold from the consideration otherwise deliverable to such
    holder any amount required to be deducted and withheld under the
    backup withholding rules.
</DIV>

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

<DIV align="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 backup withholding is not an additional tax and may be
    refunded or credited against the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder&#146;s</FONT>
    U.S.&#160;federal income tax liability, provided that the
    required information is provided to the IRS.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-37
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='110'>
<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">UNDERWRITING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Citigroup Global Markets Inc., Banc of America Securities LLC
    and Wachovia Capital Markets, LLC are acting as joint
    bookrunning managers of the offering. Subject to the terms and
    conditions stated in the underwriting agreement dated the date
    of this prospectus supplement, each underwriter named below has
    agreed to purchase, and we have agreed to sell to that
    underwriter, the principal amount of notes set forth opposite
    the underwriter&#146;s name.
</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="84%">&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="12%" 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">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Principal Amount<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<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>Underwriter</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>of Notes</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">
    Citigroup Global Markets Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    73,334,000
</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">
    Banc of America Securities LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    73,333,000
</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">
    Wachovia Capital Markets, LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    73,333,000
</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: 20pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    220,000,000
</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>
</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 obligations of the
    underwriters to purchase the notes included in this offering are
    subject to approval of legal matters by counsel and to other
    conditions. The underwriters are obligated to purchase all the
    notes if they purchase any of the notes.
</DIV>

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

<DIV align="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 underwriters propose to offer some of the notes directly to
    the public at the public offering price set forth on the cover
    page of this prospectus supplement and some of the notes to
    dealers at the public offering price less a concession not to
    exceed 1.2% of the principal amount of the notes. The
    underwriters are offering the notes, subject to prior sale,
    when, as and if issued to and accepted by them, subject to
    approval of legal matters by counsel to the underwriters,
    including the validity of the notes and other conditions
    contained in the underwriting agreement. After the initial
    offering of the notes to the public, the representatives may
    change the public offering price and concessions.
</DIV>

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

<DIV align="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 to the underwriters an option, exercisable for
    30&#160;days from the date of this prospectus supplement, to
    purchase up to $33,000,000 additional principal amount of notes
    at the public offering price less the underwriting discount. The
    underwriters may exercise the option solely for the purpose of
    covering overallotments, if any, in connection with this
    offering. To the extent the option is exercised, each
    underwriter must purchase a principal amount of additional notes
    approximately proportionate to that underwriter&#146;s initial
    purchase commitment.
</DIV>

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

<DIV align="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 certain of our officers, have agreed that, for a period
    of 60&#160;days from the date of this prospectus supplement, we
    and they will not, without the prior written consent of
    Citigroup Global Markets Inc., Banc of America Securities LLC
    and Wachovia Capital Markets, LLC, dispose of or hedge any
    shares of our common stock or any securities convertible into or
    exchangeable for shares of our common stock, except for
    issuances (i)&#160;pursuant to the conversion or exchange of
    convertible or exchangeable securities or the exercise of
    warrants or options, in each case outstanding at the time the
    underwriting agreement is executed and delivered, (ii)&#160;of
    employee stock options and restricted shares pursuant to the
    terms of any equity incentive plan in effect at the time the
    underwriting agreement is executed and delivered, (iii)&#160;in
    connection with acquisitions, joint ventures and similar types
    of arrangements as long as the recipients of those securities
    also agree not to sell or transfer those securities without the
    prior written consent of the underwriters for a period of
    60&#160;days after the date of this prospectus supplement,
    (iv)&#160;pursuant to our dividend reinvestment and stock
    purchase plan of the Company in effect at the time the
    underwriting agreement is executed and delivered, and
    (v)&#160;of no more than 100&#160;shares, for no consideration,
    to one or more persons unaffiliated with us as door or drawing
    prizes in connection with our marketing efforts. Citigroup
    Global Markets Inc., Banc of America Securities LLC and Wachovia
    Capital Markets, LLC, in their sole discretion, may release any
    of the securities subject to these
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements at any time without notice.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-38
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="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 the underwriting discounts and
    commissions that we are to pay to the underwriters in connection
    with this offering. These amounts are shown assuming both no
    exercise and full exercise of the underwriters&#146; option to
    purchase additional notes.
</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="73%">&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="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="5%">&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="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Paid by National Retail Properties, Inc.</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">
    <B>No<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Full<BR>
    </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>Exercise</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>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 note
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</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">
    2
</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">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,400,000
</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">
    5,060,000
</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">
    In connection with the offering, the underwriters may purchase
    and sell notes in the open market. These transactions may
    include overallotment, syndicate covering transactions and
    stabilizing transactions. Overallotment involves syndicate sales
    of notes in excess of the principal amount of notes to be
    purchased by the underwriters in the offering, which creates a
    syndicate short position. &#147;Covered&#148; short sales are
    sales of notes made in an amount up to the principal amount
    represented by the underwriters&#146; overallotment option. In
    determining the source of notes to close out the covered
    syndicate short position, the underwriters will consider, among
    other things, the price of notes available for purchase in the
    open market as compared to the price at which they may purchase
    notes through the overallotment option. Transactions to close
    out the covered syndicate short involve either purchases of the
    notes in the open market after the distribution has been
    completed or the exercise of the overallotment option. The
    underwriters may also make &#147;naked&#148; short sales of
    notes in excess of the overallotment option. The underwriters
    must close out any naked short position by purchasing notes in
    the open market. A naked short position is more likely to be
    created if the underwriters are concerned that there may be
    downward pressure on the price of the notes in the open market
    after pricing that could adversely affect investors who purchase
    in the offering. Stabilizing transactions consist of bids for or
    purchases of notes in the open market while the offering is in
    progress.
</DIV>

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

<DIV align="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 underwriters also may impose a penalty bid. Penalty bids
    permit the underwriters to reclaim a selling concession from a
    syndicate member when the underwriters, in covering syndicate
    short positions or making stabilizing purchases, repurchases
    notes originally sold by that syndicate member in order to cover
    syndicate short positions or make stabilizing purchases.
</DIV>

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

<DIV align="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 of these activities may have the effect of preventing or
    retarding a decline in the market price of the notes. They may
    also cause the price of the notes to be higher than the price
    that otherwise would exist in the open market in the absence of
    these transactions. The underwriters may conduct these
    transactions in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market or otherwise. If the underwriters commence any of these
    transactions, they may discontinue them at any time without
    notice.
</DIV>

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

<DIV align="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 estimate that our total expenses for this offering will be
    approximately $500,000.
</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">
    The notes are a new issue of securities with no established
    trading market. We do not intend to apply for listing of the
    notes on any national securities exchange or for quotation of
    the notes on any automated dealer quotation system. We have been
    advised by the underwriters that they presently intend to make a
    market in the notes after completion of the offering. However,
    they are under no obligation to do so and may discontinue any
    market-making activities at any time without any notice. We
    cannot assure the liquidity of the trading market for the notes
    or that an active public market for the notes will develop. If
    an active public trading market for the notes does not develop,
    the market price and liquidity of the notes may be adversely
    affected.
</DIV>

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

<DIV align="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 deliver the notes against payment for the notes on
    or about the date specified in the last paragraph of the cover
    page of this prospectus supplement, which will be the fourth
    business day following the date of the pricing of the notes.
    Under
    <FONT style="white-space: nowrap">Rule&#160;15c6-1</FONT>
    of the Exchange Act, trades in the secondary market generally
    are required to settle in three business days, unless the
    parties to a trade expressly agree otherwise. Accordingly,
    purchasers who wish to trade notes on the date of pricing or the
    next succeeding business day will be required, by virtue of the
    fact that the notes initially will settle in T+4, to specify
    alternative settlement arrangements to prevent a failed
    settlement.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-39
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="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 underwriters have performed investment banking and advisory
    services for us from time to time for which they have received
    customary fees and expenses. The underwriters may, from time to
    time, engage in transactions with and perform services for us in
    the ordinary course of their business. We intend to use a
    portion of the net proceeds of this offering to reduce
    borrowings under our $400&#160;million unsecured revolving
    credit facility. Wachovia Capital Markets, LLC was the sole lead
    arranger and book manager for the credit facility. In addition,
    an affiliate of Wachovia Capital Markets, LLC is the
    administrative and co-syndication agent and a lender, and
    affiliates of Citigroup Global Markets Inc. and Banc of America
    Securities LLC are lenders under the credit facility. Both
    entities will receive their proportionate share of the amount
    repaid under the credit facility with the net proceeds of 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">
    The base prospectus and the prospectus supplement, together the
    prospectus, in electronic format may be made available on the
    websites maintained by one or more of the underwriters.
</DIV>

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

<DIV align="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 of
    1933, or to contribute to payments the underwriters may be
    required to make because of any of those 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">Selling
    Restrictions</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 underwriter intends to comply with all applicable laws and
    regulations in each jurisdiction in which it acquires, offers,
    sells or delivers notes or has in its possession or distributes
    the prospectus or any other material with respect to 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">
    Each underwriter has represented, warranted and agreed that:
</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 has not made or will not make an offer of Securities to the
    public in the United Kingdom within the meaning of
    section&#160;102B of the Financial Services and Markets Act 2000
    (as amended) (FSMA) except to legal entities which are
    authorised or regulated to operate in the financial markets or,
    if not so authorised or regulated, whose corporate purpose is
    solely to invest in securities or otherwise in circumstances
    which do not require the publication by the Company of a
    prospectus pursuant to the Prospectus Rules of the Financial
    Services Authority (FSA);
</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">
    it has only communicated or caused to be communicated and will
    only communicate or cause to be communicated an invitation or
    inducement to engage in investment activity (within the meaning
    of section&#160;21 of FSMA) in relation to the Securities to
    persons who have professional experience in matters relating to
    investments falling with Article&#160;19(5) of the Financial
    Services and Markets Act 2000 (Financial Promotion) Order 2005
    or in circumstances in which the financial promotion restriction
    in section&#160;21 of FSMA does not apply;&#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">
    it has complied and will comply with all applicable provisions
    of the FSMA with respect to anything done by it in relation to
    the notes included in this offering in, from or otherwise
    involving the United Kingdom.
</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">
    Any investor purchasing the notes in the offering is solely
    responsible for ensuring that any offer or resale of the notes
    it purchased in the offering occurs in compliance with
    applicable laws and regulations.
</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 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 notes
    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 notes 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
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-40
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<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">
    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">
    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 notes 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;qualified investor&#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;Prospectus Directive&#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">
    The sellers of the notes have not authorized and do not
    authorize the making of any offer of notes through any financial
    intermediary on their behalf, other than offers made by the
    underwriters with a view to the final placement of the notes as
    contemplated in this prospectus supplement. Accordingly, no
    purchaser of the notes, other than the underwriters, is
    authorized to make any further offer of the notes on behalf of
    the sellers 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&#160;Kingdom that are
    qualified investors within the meaning of Article&#160;2(1)(e)
    of the Prospectus Directive (&#147;Qualified Investors&#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;Order&#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;relevant persons&#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>

<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 France</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">
    Neither this prospectus supplement nor any other offering
    material relating to the notes described in this prospectus
    supplement has been submitted to the clearance procedures of the
    Autorit&#233; des March&#233;s Financiers or by the competent
    authority of another member state of the European Economic Area
    and notified to the Autorit&#233; des March&#233;s Financiers.
    The notes have not been offered or sold and will not be offered
    or sold, directly or indirectly, to the public in France.
    Neither this prospectus supplement nor any other offering
    material relating to the notes has been or will be
</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">
    released, issued, distributed or caused to be released, issued
    or distributed to the public in France&#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">
    used in connection with any offer for subscription or sale of
    the notes to the public in France.
</TD>
</TR>

</TABLE>

<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 PAGE WIDTH -->

<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">

    <FONT style="font-family: 'Times New Roman', Times">Such offers,
    sales and distributions will be made in France only
    </FONT>
</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 qualified investors (<I>investisseurs qualifi&#233;s</I>)
    <FONT style="white-space: nowrap">and/or</FONT> to a
    restricted circle of investors (<I>cercle
    restreint&#160;d&#146;investisseurs</I>), in each case investing
    for their own account, all as defined in, and in accordance
    with,
    <FONT style="white-space: nowrap">Article&#160;L.411-2,</FONT>
    D.411-1, D.411-2, D.734-1, D.744-1, D.754-1 and D.764-1 of the
    French <I>Code mon&#233;taire et financier </I>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 investment services providers authorized to engage in
    portfolio management on behalf of third parties&#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 a transaction that, in accordance with article
    L.411-2-II-1&#176;-or-2&#176;-or 3&#176; of the French <I>Code
    mon&#233;taire et financier </I>and
    <FONT style="white-space: nowrap">article&#160;211-2</FONT>
    of the General Regulations (<I>R&#232;glement
    G&#233;n&#233;ral</I>) of the Autorit&#233; des March&#233;s
    Financiers, does not constitute a public offer (<I>appel public
    &#224; l&#146;&#233;pargne</I>).
</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 notes may be resold directly or indirectly, only in
    compliance with
    <FONT style="white-space: nowrap">Articles&#160;L.411-1,</FONT>
    L.411-2, L.412-1 and L.621-8 through L.621-8-3 of the French
    <I>Code mon&#233;taire et financier</I>.
</DIV>
<A name='111'>
<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">LEGAL
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="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 legal matters will be passed upon for us by Pillsbury
    Winthrop Shaw Pittman LLP, Washington,&#160;D.C., as our
    securities and tax counsel. Certain legal matters will be passed
    upon for the underwriters by Hunton&#160;&#038; Williams LLP.
</DIV>
<A name='112'>
<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">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="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 of National Retail
    Properties, Inc. and subsidiaries at December&#160;31, 2007, and
    for each of the years in the two-year period ended
    December&#160;31, 2007, appearing in National Retail Properties,
    Inc. Annual Report
    <FONT style="white-space: nowrap">(Form&#160;10-K),</FONT>
    as amended, for the year ended December&#160;31, 2007 (including
    schedules appearing therein), and National Retail Properties,
    Inc.&#146;s management&#146;s assessment of the effectiveness of
    internal control over financial reporting as of
    December&#160;31, 2007 included therein, have been audited by
    Ernst&#160;&#038; Young LLP, independent registered public
    accounting firm, as set forth in their reports thereon, included
    therein, and incorporated herein by reference. Such consolidated
    financial statements and management&#146;s assessment are
    incorporated herein by reference in reliance upon such reports
    given on the authority of such firm as experts in accounting and
    auditing.
</DIV>

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

<DIV align="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 statements of earnings, stockholders&#146;
    equity, and cash flows of National Retail Properties, Inc. and
    subsidiaries for the year ended December&#160;31, 2005 have been
    incorporated by reference herein, and in the registration
    statement in reliance upon the report of KPMG LLP, independent
    registered public accounting firm, incorporated by reference
    herein, and upon the authority of said firm as experts in
    accounting and auditing.
</DIV>
<A name='113'>
<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">WHERE YOU
    CAN FIND MORE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="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 SEC. Our SEC filing number is
    <FONT style="white-space: nowrap">001-11290.</FONT>
    You may read and copy any document that we have filed at the
    SEC&#146;s Public Reference Room at 100&#160;F&#160;Street,
    N.E., Washington,&#160;D.C. 20549. Please call the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information on the operation of the Public Reference
    Room. The SEC maintains an Internet site that contains reports,
    proxy and information statements, and other information
    regarding issuers that file electronically with the SEC. Our
    filings are available to the public at the SEC&#146;s Internet
    site at
    <FONT style="white-space: nowrap">http://www.sec.gov.</FONT>
    Our common stock is listed on the New York Stock Exchange under
    the ticker symbol &#147;NNN.&#148; You may inspect our reports,
    proxy statements and other information at the New York Stock
    Exchange, 20&#160;Broad Street, New York, New York 10005.
</DIV>

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

<DIV align="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 filed with the SEC a registration statement (of which
    this prospectus supplement and the accompanying prospectus is a
    part) on
    <FONT style="white-space: nowrap">Form&#160;S-3</FONT>
    under the Securities Act of 1933 with respect to our securities.
    This prospectus supplement and the accompanying prospectus do
    not contain all of the information
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-42
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<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">
    set forth in the registration statement, including the exhibits
    and schedules thereto, certain parts of which are omitted as
    permitted by the rules and regulations of 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">
    We are incorporating by reference the information we file with
    the SEC, which means that we can disclose important information
    to you by referring you to those documents. The information we
    incorporate by reference is considered to be part of this
    prospectus supplement and the accompanying prospectus, except
    for any information superseded by information in this prospectus
    supplement. We incorporate by reference the documents listed
    below, which we have filed with the SEC under
    Sections&#160;13(a), 13(c), 14 and 15(d) of 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">
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K,</FONT>
    as amended, for the fiscal year ended December&#160;31, 2007,
    filed with the SEC on February&#160;25, 2008.
</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">
    Proxy Statement on Schedule&#160;14A relating to the 2007 annual
    meeting of stockholders, filed with the SEC on April&#160;3,
    2007.
</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">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    dated February&#160;18, 2007, filed with the SEC on
    February&#160;20, 2007.
</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 description of our common stock contained in the
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;8-A,</FONT>
    filed with the SEC on July&#160;22, 1992.
</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">
    All documents that we file after the date of this prospectus
    supplement but before we terminate the offering of our
    securities shall be deemed to be incorporated by reference in
    this prospectus supplement and the accompanying prospectus and
    will be part of this prospectus supplement and the accompanying
    prospectus from the date we file that document. Any information
    in that document that is meant to supersede or modify any
    existing statement in this prospectus supplement will so
    supersede or modify the statement as appropriate.
</DIV>

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

<DIV align="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 any or all of the documents
    incorporated by reference in this prospectus supplement, except
    the exhibits to such documents (unless such exhibits are
    specifically incorporated by reference in such documents), at no
    cost, by writing or telephoning our offices at the following
    address:
</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">
    National Retail Properties, Inc.<BR>
    450 South Orange Avenue, Suite&#160;900<BR>
    Orlando, Florida 32801<BR>
    Attention: Kevin B. Habicht<BR>
    (telephone number
    <FONT style="white-space: nowrap">(407)&#160;265-7348)</FONT>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-43
</DIV><!-- END PAGE WIDTH -->
<!-- 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" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PROSPECTUS</B>
</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">
    <B><FONT style="font-size: 30pt">Commercial Net Lease Realty,
    Inc.</FONT></B>
</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">
    <IMG src="w50382b5x5038200.gif" alt="(COMMERCIAL NET LOGO)" ><FONT style="font-size: 30pt">
    </FONT>
</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">
    <B><FONT style="font-size: 18pt">Debt Securities, Preferred
    Stock, Depositary Shares,</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: 18pt">Common Stock and
    Warrants</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: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=72 -->

<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">
    We, Commercial Net Lease Realty, Inc., may from time to time
    offer, in one or more series, separately or together, the
    following:
</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 debt securities, which may be either 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    shares of our 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>    &#149;&#160;
</TD>
    <TD align="left">
    shares of our preferred stock represented by depositary shares;
</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 our common stock; and/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">
    warrants to purchase shares of our common or 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 common stock is listed on the New York Stock Exchange under
    the trading symbol &#147;NNN.&#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">
    We will offer our securities in amounts, at prices and on terms
    to be determined at the time we offer such 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">
    When we sell a particular series of securities, we will prepare
    a prospectus supplement describing the offering and the terms of
    that series of securities. Such terms may include limitations on
    direct or beneficial ownership and restrictions on transfer of
    our securities being offered that we believe are appropriate to
    preserve our status as a real estate investment trust for
    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">
    We may offer our securities directly, through agents we may
    designate from time to time, or to or through underwriters or
    dealers. If any agents or underwriters are involved in the sale
    of any of our securities, their names and any applicable
    purchase price, fee, commission or discount arrangement between
    or among them will be set forth or will be calculable from the
    information set forth in the applicable prospectus supplement.
    None of our securities may be sold without delivery of the
    applicable prospectus supplement describing the method and terms
    of the offering of such class or series of the securities.
</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: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=72 -->

<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>Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of these
    securities or passed upon the adequacy or accuracy of this
    prospectus. Any representation to the contrary is a criminal
    offense.</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: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=72 -->

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

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</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">
    The date of this prospectus is February&#160;28, 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 -->


<!-- link1 "TABLE OF CONTENTS" -->


<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">TABLE
    OF CONTENTS</FONT></B>
</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 -->
<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="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 -->
</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>Page</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">
    <FONT style="font-size: 10pt">About this Prospectus
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    ii
</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">
    <FONT style="font-size: 10pt">Where You Can Find More Information
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</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">
    <FONT style="font-size: 10pt">Commercial Net Lease Realty
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</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">
    <FONT style="font-size: 10pt">Use of Proceeds
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</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">
    <FONT style="font-size: 10pt">Ratio of Earnings to Fixed Charges
    and Preferred Stock Dividends
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</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">
    <FONT style="font-size: 10pt">Description of Debt Securities
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</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">
    <FONT style="font-size: 10pt">Description of Preferred Stock
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14
</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">
    <FONT style="font-size: 10pt">Description of Depositary Shares
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19
</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">
    <FONT style="font-size: 10pt">Description of Common Stock
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</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">
    <FONT style="font-size: 10pt">Description of Warrants
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24
</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">
    <FONT style="font-size: 10pt">Federal Income Tax Considerations
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</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">
    <FONT style="font-size: 10pt">Plan of Distribution
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</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">
    <FONT style="font-size: 10pt">Legal Matters
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36
</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">
    <FONT style="font-size: 10pt">Experts
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36
</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>
    i
</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 -->


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


<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">ABOUT
    THIS PROSPECTUS</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 is part of a registration statement that we
    filed with the Securities and Exchange Commission using a
    &#147;shelf&#148; registration process. Under this shelf
    process, we may sell:
</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">
    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>    &#149;&#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>    &#149;&#160;
</TD>
    <TD align="left">
    preferred stock represented by depositary shares,
</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">
    common 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">
    warrants to purchase shares of 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: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    either separately or in units, in one or more offerings. This
    prospectus provides you with a general description of those
    securities. Each time we sell securities, we will provide a
    prospectus supplement that will contain specific information
    about the terms of that offering. The prospectus supplement may
    also add, update or change information contained in this
    prospectus. You should read this prospectus and the applicable
    prospectus supplement together with the additional information
    described under the heading &#147;Where You Can Find More
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The registration statement that contains this prospectus
    (including the exhibits to the registration statement) contains
    additional information about Commercial Net Lease Realty, Inc.
    and the securities offered under this prospectus. That
    registration statement can be read at the SEC&#146;s Internet
    site or at the SEC offices mentioned under the heading
    &#147;Where You Can Find More Information.&#148;
</DIV>

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


<!-- link1 "WHERE YOU CAN FIND MORE INFORMATION" -->


<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">WHERE
    YOU CAN FIND MORE 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">
    We file annual, quarterly and current reports, proxy statements
    and other information with the Securities and Exchange
    Commission, or SEC. You may read and copy any document that we
    have filed at the SEC&#146;s Public Reference Room at 100 F
    Street, N.E., Washington,&#160;D.C. 20549. Please call the SEC
    at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information on the operation of the Public Reference
    Room. The SEC maintains an Internet site that contains reports,
    proxy and information statements, and other information
    regarding issuers that file electronically with the SEC. Our
    filings are available to the public at the SEC&#146;s Internet
    site at <I>http://www.sec.gov.</I> Our common stock is listed on
    the New York Stock Exchange under the ticker symbol
    &#147;NNN.&#148; You may inspect our reports, proxy statements
    and other information at the New York Stock Exchange,
    20&#160;Broad Street, New York, New York 10005.
</DIV>

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

<DIV align="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 filed with the SEC a registration statement (of which
    this prospectus is a part) on
    <FONT style="white-space: nowrap">Form&#160;S-3</FONT>
    under the Securities Act of 1933 with respect to our securities.
    This prospectus does not contain all of the information set
    forth in the registration statement, including the exhibits and
    schedules thereto, certain parts of which are omitted as
    permitted by the rules and regulations of 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">
    We are incorporating by reference the information we file with
    the SEC, which means that we can disclose important information
    to you by referring you to those documents. The information we
    incorporate by reference is considered to be part of this
    prospectus, except for any information superseded by information
    in this prospectus. We incorporate by reference the documents
    listed below, which we have filed with the SEC under
    Sections&#160;13(a), 13(c), 14 and 15(d) of 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">
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the fiscal year ended December&#160;31, 2005, filed with the
    SEC on February&#160;27, 2006 (File
    <FONT style="white-space: nowrap">No.&#160;001-11290).</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">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    dated February&#160;3, 2006, filed with the SEC on
    February&#160;8, 2006
    <FONT style="white-space: nowrap">(File&#160;No.&#160;001-11290).</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">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    dated February&#160;8, 2006, filed with the SEC on
    February&#160;14, 2006
    <FONT style="white-space: nowrap">(File&#160;No.&#160;001-11290).</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">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    dated February&#160;9, 2006, filed with the SEC on
    February&#160;15, 2006
    <FONT style="white-space: nowrap">(File&#160;No.&#160;001-11290).</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="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 description of our common stock contained in the
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;8-A,</FONT>
    filed with the SEC on July&#160;22, 1992 (File No.
    <FONT style="white-space: nowrap">001-11290).</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All documents that we file after the date of this prospectus but
    before we terminate the offering of our securities shall be
    deemed to be incorporated by reference in this prospectus and
    will be part of the prospectus from the date we file that
    document. Any information in that document that is meant to
    supersede or modify any existing statement in this prospectus
    will so supersede or modify the statement as appropriate.
</DIV>

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

<DIV align="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 any or all of the documents
    incorporated by reference in this prospectus, except the
    exhibits to such documents (unless such exhibits are
    specifically incorporated by reference in such documents), at no
    cost, by writing or telephoning our offices at the following
    address:
</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">
    Commercial Net Lease Realty, 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">
    450 South Orange Avenue, Suite&#160;900
</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">
    Orlando, Florida 32801
</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: Kevin B. Habicht
</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 number:
    <FONT style="white-space: nowrap">(407)&#160;265-7348)</FONT>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    1
</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 -->


<!-- link1 "COMMERCIAL NET LEASE REALTY" -->


<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">COMMERCIAL
    NET LEASE REALTY</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 are a fully integrated real estate investment trust
    (&#147;REIT&#148;) for federal income tax purposes, formed in
    1984. Our operations are divided into two primary business
    segments: (i)&#160;investment assets, including real estate
    assets, structured finance investments and mortgage residual
    interests, and (ii)&#160;inventory real estate assets
    (&#147;Inventory Assets&#148;). The real estate investment
    assets and structured finance investments (included in mortgages
    and notes receivable on the balance sheet), are operated through
    us and our wholly owned qualified REIT subsidiaries. We directly
    and indirectly, through investment interests, acquire, own,
    invest in, manage and develop primarily retail properties that
    are generally leased to established tenants under long-term
    commercial net leases (&#147;Investment Properties&#148;). As of
    December&#160;31, 2005, we owned 524 Investment Properties, with
    an aggregate gross leasable area of 9,227,000&#160;square feet,
    located in 41&#160;states and leased to established tenants,
    including Academy, Barnes&#160;&#038; Noble, Best Buy, Susser
    (Circle K), CVS, Eckerd, OfficeMax, The Sports Authority and the
    United States of America. In addition to the Investment
    Properties, as of December&#160;31, 2005, we had $27,805,000 and
    $55,184,000 in structured finance investments and mortgage
    residual interest assets, respectively.
</DIV>

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

<DIV align="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 Inventory Assets are operated through our wholly owned
    qualified REIT subsidiaries as well as our taxable REIT
    subsidiaries and their majority-owned and controlled
    subsidiaries (the &#147;TRS&#148;). The TRS, directly and
    indirectly, through investment interests, owns real estate
    primarily for the purpose of selling the real estate to
    purchasers who are looking for replacement like-kind exchange
    property or to other purchasers with different investment
    objectives (&#147;Inventory Properties&#148;). The TRS develops
    Inventory Properties (&#147;Development Properties&#148;) and
    also acquires existing Inventory Properties (&#147;Exchange
    Properties&#148;). As of December&#160;31, 2005, the TRS owned
    17 Development Properties (one completed, 12 under construction,
    and four land parcels) and 46 Exchange Properties.
</DIV>

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

<DIV align="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 address and phone number are:
</DIV>

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

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Commercial Net Lease Realty, Inc.
</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    450&#160;S.&#160;Orange Avenue
</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Suite&#160;900
</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Orlando, Florida 32801
</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">(407)&#160;265-7348</FONT>
</DIV>


<!-- 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='112'></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">
    Unless otherwise specified in the applicable prospectus
    supplement, we will use the net proceeds from the sale of
    securities for one or more of the following:
</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">
    repayment of debt,
</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">
    acquisition of additional properties,
</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">
    facility improvements and expansion fundings,
</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">
    redemption or repurchase of any preferred stock or debt
    outstanding, 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">
    working capital and general corporate purposes.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</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 -->


<!-- link1 "RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK 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='113'></A><B><FONT style="font-family: 'Times New Roman', Times">RATIO
    OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK
    DIVIDENDS</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 -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="66%">&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 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" 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>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>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2001</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="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Consolidated ratio of earnings to
    fixed charges
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.76
</TD>
<TD 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>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.82
</TD>
<TD 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">
    2.08
</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">
    <FONT style="font-size: 10pt">Consolidated ratio of earnings to
    fixed charges and preferred dividends
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.43
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.44
</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">
    2.43
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.08
</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>



<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">
    *&#160;Prior to 2002, we did not have preferred dividends.
</DIV>

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

<DIV align="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 the purposes of computing these ratios, earnings have been
    calculated by adding fixed charges (excluding capitalized
    interest) to income before taxes and extraordinary items. Fixed
    charges consist of interest costs, whether expensed or
    capitalized, and amortization of debt expense and discount or
    premium relating to any indebtedness, whether expensed or
    capitalized. The ratios of earnings to fixed charges and
    preferred dividends were computed by dividing our earnings by
    fixed charges and preferred dividends.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<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">DESCRIPTION
    OF DEBT 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a general description of the debt securities
    that we may offer from time to time. The particular terms of the
    debt securities being offered and the extent to which such
    general provisions may apply are set forth in the Indenture (as
    defined in the following paragraph) or will be set forth in one
    or more indenture supplements and described in the applicable
    prospectus supplement. Therefore, you should read both the
    applicable prospectus supplement and the description of the debt
    securities set forth in this prospectus for a description of the
    terms of any series of our debt securities.
</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 debt securities will be secured or unsecured direct
    obligations and may be senior or subordinated to our other
    indebtedness. Our debt securities will be issued under the
    Indenture, dated as of March&#160;25, 1998, between us and
    Wachovia Bank, National Association (successor to First Union
    National Bank, a national banking association organized under
    the laws of the United States of America), as trustee (the
    &#147;Indenture&#148;). The Indenture is filed as an exhibit to
    the registration statement of which this prospectus is a part.
    The Indenture is, and any supplement thereto will be, subject
    to, and governed by, the Trust&#160;Indenture Act of 1939. Any
    statements made in this prospectus that relate to the Indenture
    and our debt securities are only summaries of those provisions
    and are not meant to replace or modify those provisions.
    Capitalized terms used but not defined in this prospectus shall
    have the respective meanings set forth in 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Indenture permits:
</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 debt securities to be issued without limits as to aggregate
    principal amount,
</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 debt securities to be issued in one or more series, in each
    case as established from time to time by our Board of Directors
    or as set forth in the Indenture or one or more indentures
    supplemental to the 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    debt securities of one series to be issued at varying
    times,&#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">
    a series to be reopened, without the consent of the holders of
    the debt securities of such series, for issuance of additional
    debt securities of such series.
</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">
    We may, but need not, designate more than one trustee in
    connection with the Indenture, each with respect to one or more
    series of debt securities. Any trustee under the Indenture may
    resign or be removed with respect to one or more series of debt
    securities, and a successor trustee may be appointed to act with
    respect to such series. If two or more persons are acting as
    trustee with respect to different series of debt securities,
    each of those trustees will be considered a trustee of a trust
    under the Indenture separate and apart from the trust
    administered by any other trustee. Unless this prospectus states
    otherwise, a trustee will only be permitted to take action with
    respect to the one or more series of debt securities for which
    it is trustee 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following summaries set forth certain general terms and
    provisions of the Indenture and our debt securities. The
    prospectus supplement relating to the series of debt securities
    being offered will contain further terms of the debt securities
    of that series, including the following specific terms:
</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 title of the debt securities;
</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 aggregate principal amount of the debt securities
    and any limit on the aggregate principal amount;
</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">
    (3)&#160;the percentage of the principal amount at which the
    debt securities will be issued and, if applicable, the portion
    of the principal amount that is payable upon declaration of
    acceleration of the maturity of the debt securities, the portion
    of the principal amount of the debt securities that is
    convertible into shares of our common stock or other equity
    securities, or the method by which any such portion shall be
    determined;
</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;if such debt securities are convertible into equity,
    any limitation to the ownership or transferability of shares of
    our common stock or other equity securities into which such debt
    securities are convertible in connection with the preservation
    of our status as a REIT;
</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;the date or dates, or the method for determining the
    date or dates, on which the principal of such debt securities
    will be payable;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</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: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (6)&#160;the rate or rates (which may be fixed or variable), or
    the method by which such rate or rates shall be determined, at
    which such debt securities will bear interest, if any;
</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">
    (7)&#160;the date or dates, or the method for determining the
    date or dates, from which any interest will accrue, the interest
    payment dates, the record dates for interest payment, the
    persons to whom interest shall be payable, and how interest will
    be calculated if other than that of a
    <FONT style="white-space: nowrap">360-day</FONT> year
    of twelve
    <FONT style="white-space: nowrap">30-day</FONT>
    months;
</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">
    (8)&#160;the place or places where the principal of (and
    premium, if any) or interest, if any, on the debt securities
    will be payable, where the debt securities may be surrendered
    for conversion or registration of transfer or exchange, and
    where notices or demands to or upon us in respect to the debt
    securities and the applicable indenture may be served;
</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">
    (9)&#160;the period or periods within which, the price or prices
    at which, and the terms and conditions upon which the debt
    securities may be redeemed, as a whole or in part, at our
    option, if we have such an option;
</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">
    (10)&#160;our obligation, if any, to redeem, repay or purchase
    the debt securities, in whole or in part, pursuant to any
    sinking fund or analogous provision or at the option of a holder
    of the debt securities, and the periods, the prices, and other
    terms and conditions of such redemption, repayment or purchase;
</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">
    (11)&#160;if other than U.S.&#160;dollars, the currency or
    currencies, including terms and conditions, in which the debt
    securities are denominated and payable, which may be a foreign
    currency or units of two or more foreign currencies or a
    composite currency or currencies;
</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">
    (12)&#160;whether the amount of payments of principal (and
    premium, if any) or interest, if any, on the debt securities may
    be determined with reference to an index, formula or other
    method (which index, formula or method may, but need not be,
    based on a currency, currencies, currency unit or units or
    composite currency or currencies) and the manner in which any
    amounts shall be determined;
</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">
    (13)&#160;any additions to, modifications of or deletions from
    the terms of the debt securities with respect to the events of
    default or covenants set forth in the applicable indenture;
</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">
    (14)&#160;whether the debt securities will be issued in
    certificated or book-entry form;
</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">
    (15)&#160;whether the debt securities will be in registered or
    bearer form or both and, if and to the extent in registered
    form, the denominations of the debt securities if other than
    $1,000 or any integral multiple of $1,000 and, if and to the
    extent in bearer form, the denominations and their terms and
    conditions;
</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">
    (16)&#160;the applicability (or modification), if any, of the
    defeasance and covenant defeasance provisions described in this
    prospectus or in the applicable indenture;
</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">
    (17)&#160;the terms (and the class), if any, upon which such
    debt securities may be convertible into shares of our common
    stock or other equity securities and the terms and conditions
    upon which such conversion will be effected, including, without
    limitation, the initial conversion price or rate and the
    conversion period;
</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">
    (18)&#160;whether and under what circumstances we will pay
    additional amounts on the debt securities in respect of any tax,
    assessment or governmental charge and, if so, whether we will
    have the option to redeem the debt securities in lieu of making
    a payment;
</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">
    (19)&#160;the provisions, if any, relating to the security
    provided for the debt securities;&#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">
    (20)&#160;any other terms of the debt securities not
    inconsistent with the provisions of the applicable indenture.
</DIV>

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

<DIV align="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 our debt securities may provide that if the maturity
    date is accelerated, we will be required to pay less than the
    entire principal amount. These securities are referred to as
    original issue discount securities. The prospectus supplement
    relating to these securities will describe any material
    U.S.&#160;federal income tax, accounting and other
    considerations that apply.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</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">
    Except as may be set forth in the applicable prospectus
    supplement, our debt securities will not contain any provisions
    that would limit our ability to incur indebtedness or that would
    afford holders of our debt securities protection in the event of:
</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;a highly leveraged or similar action involving
    us,&#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">
    (2)&#160;a change of control of 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">
    However, the requirements for an entity to qualify as a REIT
    include certain restrictions on ownership and transfers of our
    shares of common stock and other equity securities. These
    restrictions may act to prevent or hinder a change of control.
    See &#147;Description of Common Stock&#160;&#151; Restrictions
    on Ownership.&#148; Provided below is a general description of
    the events of default and covenants contained in the Indenture.
    You should refer to the applicable prospectus supplement for
    information on any variances from this general description.
</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">Denominations,
    Interest, 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise described in the applicable prospectus
    supplement, our debt securities of any series will be issuable
    in denominations of $1,000 and integral multiples of $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">
    Unless otherwise specified in the applicable prospectus
    supplement, the principal of (and premium, if any) and interest
    on any series of debt securities will be payable at the
    applicable trustee&#146;s corporate trust office, the address of
    which will be set forth in the applicable prospectus supplement.
    We will retain the option to make interest payments by check,
    mailed to the address of the person entitled to the interest as
    it appears in the applicable register for such debt securities.
    We can also pay by wire transfer of funds to that person at an
    account maintained within the United States.
</DIV>

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

<DIV align="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 interest not paid or otherwise provided for when due with
    respect to a debt security will not be payable to the holder in
    whose name the debt security is registered on the date we have
    specified as the date a registered holder of the debt security
    as of that date would be entitled to receive the interest
    payment due (the record date). Instead, the interest may be paid
    to the person in whose name such debt security is registered at
    the close of business on the date the trustee has set as the
    date on which a registered holder as of that date would be
    entitled to receive the defaulted interest payment (the special
    record date). Notice of the payment will be given to the holder
    of that debt security not less than 10&#160;days before the
    special record date. It may also be paid at any time in any
    other lawful manner, all as more completely described in the
    Indenture. If interest is not paid within 30&#160;days of the
    due date, the trustee or holders of not less than 25% of the
    principal amount of the outstanding debt securities of that
    series may accelerate the securities. See
    &#147;&#151;&#160;Events of Default, Notice and Waiver.&#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">
    Subject to certain limitations applicable to debt securities
    issued in book-entry form, our debt securities of any series:
</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">
    will be exchangeable for other debt securities of the same
    series and of a like aggregate principal amount and tenor of
    different authorized denominations upon surrender of such debt
    securities at the corporate trust office of the applicable
    trustee;&#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">
    may be surrendered for conversion or registration of transfer at
    the corporate trust office of the applicable trustee.
</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">
    Every debt security surrendered for conversion, registration of
    transfer or exchange must be duly endorsed or accompanied by a
    written instrument of transfer. No service charge will be made
    for any registration of transfer or exchange of any debt
    securities, but we may require payment of a sum sufficient to
    cover any tax or other governmental charge payable in connection
    with the registration or exchange. We may at any time change
    transfer agents or approve a change in the location through
    which any transfer agent acts. However, 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>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="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 trustee will be required:
</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 issue, exchange or register the transfer of any 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 the day of mailing of the relevant notice of
    redemption;
</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 exchange or register the transfer of any debt security, or
    portion of the security, called for redemption, except the
    unredeemed portion of any debt security being redeemed in
    part;&#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 issue, exchange or register the transfer of any debt security
    which has been surrendered for repayment at the option of the
    holder, except the portion, if any, of such debt security not to
    be so repaid.
</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">Merger,
    Consolidation or Sale</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 Indenture provides that we may consolidate with, or sell,
    lease or convey all or substantially all of our assets to, or
    merge with or into, any other corporation. Those transactions
    are permitted 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">
    we are the continuing corporation, or, if not, the resulting or
    acquiring entity assumes all of our responsibilities and
    liabilities under the Indenture, including the payment of all
    amounts due on the debt securities and performance of the
    covenants and conditions contained in the 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    immediately after giving effect to such transaction and treating
    any indebtedness which becomes our obligation or an obligation
    of any of our subsidiaries as a result thereof as having been
    incurred by us or such subsidiary at the time of such
    transaction, no event of default under the Indenture, and no
    event which, after notice or the lapse of time, or both, would
    become such an event of default, shall have occurred and be
    continuing;&#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">
    an officer&#146;s certificate and legal opinion covering these
    conditions are delivered to the trustee.
</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">Certain
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Existence.</I>&#160;&#160;Except as permitted under
    &#147;&#151;&#160;Merger, Consolidation or Sale,&#148; the
    Indenture requires that we do or cause to be done all things
    necessary to preserve and keep in full force and effect our
    corporate existence, rights (by articles of incorporation,
    bylaws or statute) and franchises. We may, however, dispose of
    any right or franchise if we determine that the right or
    franchise is no longer desirable in the conduct of our business.
</DIV>

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

<DIV align="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>Maintenance of Properties.</I>&#160;&#160;As required in the
    Indenture, we will maintain, keep in good condition and make all
    necessary repairs, renewals, replacements, betterments and
    improvements of our, or our subsidiaries&#146; properties that
    we deem necessary so that the business carried on in connection
    with those properties may be properly and advantageously
    conducted at all times. We, or our subsidiaries may, however,
    sell or otherwise dispose for value our properties 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Insurance.</I>&#160;&#160;We, and our subsidiaries, will
    maintain the customary policies of insurance with responsible
    companies, taking into consideration prevailing market
    conditions and availability, for all of our properties and
    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">
    <I>Payment of Taxes and Other Claims.</I>&#160;&#160;We will pay
    or discharge or cause to be paid or discharged (or, if
    applicable, cause to be transferred to bond or other security),
    before the same shall become delinquent,
</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">
    all taxes, assessments and governmental charges levied or
    imposed upon us or any of our subsidiaries or upon our income,
    profits or property or any of our subsidiaries,&#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">
    all lawful claims for labor, materials and supplies which, if
    unpaid, might by law become a lien upon our property or the
    property of any of our subsidiaries.
</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 will not however, pay or discharge (or transfer to bond or
    other security) or cause to be paid or discharged any such tax,
    assessment, charge or claim whose amount, applicability or
    validity is being contested in good faith by appropriate
    proceedings.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="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>Provision of Financial Information.</I>&#160;&#160;Whether or
    not we are subject to Section&#160;13 or 15(d) of the Securities
    Exchange Act of 1934, the Indenture requires that we, within
    15&#160;days after each of the respective dates by which we
    would have been required to file annual reports, quarterly
    reports and other documents with the SEC if we were so subject,
</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">
    transmit by mail to all holders of debt securities, as their
    names and addresses appear in the applicable register for such
    debt securities, without cost to such holders, copies of the
    annual reports, quarterly reports and other documents that we
    would have been required to file with the Securities and
    Exchange Commission pursuant to Section&#160;13 or 15(d) of the
    Securities Exchange Act of 1934 if we were subject to such
    Sections,
</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">
    file with the trustee copies of the annual reports, quarterly
    and other documents that we would have been required to file
    with the Securities and Exchange Commission pursuant to
    Section&#160;13 or 15(d) of the Securities Exchange Act of 1934
    if we were subject to such Sections,&#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">
    supply promptly upon written request and payment of the
    reasonable cost of duplication and delivery, copies of such
    documents to any prospective holder of 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Additional Covenants.</I>&#160;&#160;If we make any
    additional covenants with respect to any series of debt
    securities we will describe those covenants in the applicable
    prospectus supplement.
</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">Events of
    Default, Notice and Waiver</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 Indenture provides that the following events are
    &#147;Events of Default&#148; with respect to any series of debt
    securities issued:
</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">
    failure to pay interest on any debt security of that series for
    30&#160;days after the payment is due;
</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">
    failure to pay the principal of or any premium on any debt
    security of that series at its 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    failure to deposit any sinking fund payment when due on debt
    securities of that 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">
    failure to perform any of our other covenants in the Indenture
    (unless the covenant applies to a different series of debt
    securities issued under the Indenture), for 60&#160;days after
    we receive written notice as provided in the 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    default under any evidence of our indebtedness or any mortgage,
    indenture or other instrument under which such indebtedness is
    issued or by which such indebtedness is secured which results in
    the acceleration of indebtedness in an aggregate principal
    amount exceeding $10,000,000, but only if such indebtedness is
    not discharged or such acceleration is not rescinded or annulled
    as provided in the 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any case, proceeding or other action under bankruptcy,
    insolvency, reorganization or relief of debtors laws is
    initiated by or against us (or any of our Significant
    Subsidiaries) in which the entity initiating the case,
    proceeding or other action seeks to have an order for relief
    entered with respect to it, or seeks to adjudicate us (or any of
    our Significant Subsidiaries) bankrupt or insolvent, or seeks
    reorganization, arrangement, adjustment,
    <FONT style="white-space: nowrap">winding-up,</FONT>
    liquidation, dissolution, composition or other relief with
    respect to our (or any of our Significant Subsidiaries&#146;)
    debts;
</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 court grants relief in connection with any of the cases,
    proceedings or other actions described above;
</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 (or any of our Significant Subsidiaries) seek appointment of
    a receiver, trustee, custodian, conservator or other similar
    official for us (or any of our Significant Subsidiaries) or for
    all or any substantial part of our (or any of our Significant
    Subsidiaries&#146;) assets, or we (or any of our Significant
    Subsidiaries) make a general assignment for the benefit of our
    (or any of our Significant Subsidiaries&#146;)
    creditors;&#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">
    any other event of default provided with respect to that series
    of 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">
    The term &#147;Significant Subsidiary&#148; means each of our
    significant subsidiaries (as defined in
    <FONT style="white-space: nowrap">Regulation&#160;S-X</FONT>
    promulgated under the Securities Act of 1933)&#160;that, in
    general, meets any of the following tests:
</DIV>

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

<DIV align="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)&#160;our investments in the subsidiary or advances to it
    exceed 10% of our total assets;&#160;or
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;our proportionate share of the subsidiary&#146;s total
    assets exceeds 10% of our total assets;&#160;or
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;our equity in the income from the subsidiary&#146;s
    continuing operations exceeds 10% of our 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">
    If an Event of Default for any series of our outstanding debt
    securities occurs and is continuing, then the applicable trustee
    or the holders of at least 25% of the principal amount of the
    outstanding debt securities of that series may declare the
    principal amount (or, where applicable such portion of the
    principal amount as may be specified in the terms) of all of the
    debt securities of that series to be due and payable immediately
    by written notice to us (and to the applicable trustee if given
    by the holders). However, at any time after a declaration of
    acceleration has been made, the holders of a majority of the
    principal amount of debt securities of that series (or of each
    series of debt securities then outstanding under the Indenture,
    as the case may be) can rescind and annul the declaration and
    its consequences 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">
    we have deposited with the applicable trustee all required
    payments of the principal, premium and interest on the debt
    securities of such series (or of all debt securities then
    outstanding under the Indenture, as the case may be), plus
    certain fees, expenses, disbursements and advances of the
    applicable trustee;&#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">
    all events of default, other than the nonpayment of accelerated
    principal (or specified portion thereof), with respect to debt
    securities of such series (or of all debt securities then
    outstanding under the Indenture, as the case may be) have been
    cured or waived as provided in the Indenture.
</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 Indenture also provides that the holders of not less than a
    majority in principal amount of the debt securities of any
    series (or of each series of debt securities then outstanding
    under the Indenture, as the case may be) may waive any past
    default with respect to such series and its consequences, except
    a default:
</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">
    in the payment of the principal, any premium or interest on any
    debt security of the 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">
    in respect of a covenant or provision contained in the Indenture
    that cannot be modified or amended without the consent of the
    holder of each outstanding debt security affected by that
    default.
</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 Indenture provides that the trustee is required to give
    notice to the holders of the debt securities within 90&#160;days
    of a default under the indenture unless such default shall have
    been cured or waived. However, the trustee may withhold notice
    to the holders of any such series of debt securities of any
    default with respect to that series (except a default in the
    payment of the principal, any premium or interest on any debt
    security of that series or in the payment of any sinking fund
    installment in respect of any debt security of that series) if
    specified responsible officers of the trustee consider such
    withholding to be in the interest of the holders.
</DIV>

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

<DIV align="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 Indenture provides that no holder of our debt securities of
    any series may institute any proceeding, judicial or otherwise,
    with respect to the Indenture or for any remedy, except in the
    case of the failure of the applicable trustee, for 60&#160;days,
    to act after it has received a written request to institute
    proceedings in respect of an event of default from the holders
    of not less than 25% in principal amount of the outstanding debt
    securities of the series, as well as an offer of reasonable
    indemnity. This provision will not prevent, however, any holder
    of debt securities from instituting suit for the enforcement of
    payment of the principal of (and premium, if any) and interest
    on the debt securities held by that holder at the respective due
    dates.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to provisions in the Indenture relating to its duties in
    case of default, the trustee is under no obligation to exercise
    any of its rights or powers under the Indenture at the request
    or direction of any holders of any series of debt securities
    then outstanding under the Indenture, unless those holders have
    offered to the trustee reasonable security or indemnity. The
    holders of a majority in principal amount of the outstanding
    debt securities of any series (or of each series of debt
    securities then outstanding under the Indenture, as the case may
    be) shall have the right to direct the time, method and place of
    conducting any proceeding for any remedy available to the
    trustee, or of exercising any trust or power conferred upon the
    trustee. However, the trustee may refuse to follow any direction
    which is in conflict with any law or the Indenture, which may
    involve such trustee in personal liability or which may be
    unduly prejudicial to the holders of debt securities of such
    series not involved.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Within 120&#160;days after the close of each fiscal year, we are
    required to deliver to each trustee under the Indenture a
    certificate, signed by one of several specified officers,
    stating whether such officer has knowledge of any default under
    the Indenture and, if so, specifying the nature and status of
    each such default.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</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 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">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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Modifications and amendments of the Indenture may be made only
    with the consent of the holders of a majority in principal
    amount of all of our outstanding debt securities issued which
    are affected by such modification or amendment. The following
    modifications or amendments will not be effective against a
    holder without its consent:
</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 change in the stated maturity of the principal of, installment
    of interest or premium (if any) on the debt security;
</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 reduction in the principal amount of, or the rate of amount of
    interest on, or any premium payable upon redemption of, the debt
    security;
</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 reduction in the principal amount of an original issue
    discount security that would be due and payable upon declaration
    of acceleration of the maturity thereof or would be provable in
    bankruptcy, or adversely affect any right of repayment of the
    holder of any such debt security;
</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 change in the place of payment, or the currency or currencies,
    for payment of principal of, or premium, if any, or interest on
    any such debt security;
</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 impairment of the right to institute suit for the enforcement
    of any payment on or with respect to any such debt security;
</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 reduction in the percentage of outstanding debt securities of
    any series necessary to modify or amend the Indenture, to waive
    compliance with certain provisions of or certain defaults and
    consequences under, or to reduce the quorum or voting
    requirements set forth in the 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a modification of any of the foregoing provisions or any of the
    provisions relating to the waiver of certain past defaults or
    certain covenants, except to increase the required percentage to
    effect such action or to provide that certain other provisions
    may not be modified or waived without the consent of the holder
    of such debt security.
</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 holders of a majority in aggregate principal amount of
    outstanding debt securities of each series may, on behalf of all
    holders of debt securities of that series, waive, insofar as
    that series is concerned, our compliance with certain of our
    covenants in the Indenture, including those described in
    &#147;&#151;&#160;Certain Covenants.&#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">
    We, and the trustee may modify or amend the Indenture without
    the consent of any holder of debt securities for any of the
    following 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">
    to evidence the succession of another person to us as obligor
    under the 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to add to our covenants for the benefit of the holders of all or
    any series of debt securities issued or to surrender any right
    or power conferred upon us in the 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to add events of default for the benefit of the holders of all
    or any series of debt securities 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to add or change any provisions of the Indenture to facilitate
    the issuance of, or to liberalize certain terms of, debt
    securities issued in bearer form, or to permit or facilitate the
    issuance of debt securities in uncertificated form, provided
    that such action shall not adversely affect the interests of the
    holders of such debt securities of any series in any material
    respect;
</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 change or eliminate any provision of the Indenture, provided
    that any such change or elimination shall become effective only
    when there are no debt securities outstanding of any previously
    created series issued which are entitled to the benefit of such
    provision;
</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 secure the debt securities 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to establish the form or terms of debt securities of any series
    issued, including the provisions and procedures, if applicable,
    for the conversion of such debt securities into shares of our
    common 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>    &#149;&#160;
</TD>
    <TD align="left">
    to provide for the acceptance of appointment by a successor
    trustee or facilitate the administration of the trusts under the
    Indenture by more than one trustee;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</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 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 cure any ambiguity, defect or inconsistency in the Indenture,
    provided that such action shall not adversely affect in any
    material respect the interests of holders of debt securities of
    any series issued;&#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 supplement any of the provisions of the Indenture to the
    extent necessary to permit or facilitate defeasance and
    discharge of any series of such debt securities issued, provided
    that such action shall not adversely affect in any material
    respect the interests of the holders of the debt securities of
    any series issued.
</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 Indenture provides that in determining whether the holders
    of the requisite principal amount of outstanding debt securities
    of a series have given any request, demand, authorization,
    direction, notice, consent or waiver or whether a quorum is
    present at a meeting of holders of the 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="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 principal amount of an original issue discount security that
    shall be deemed to be outstanding shall be the amount of the
    principal that would be due and payable as of the date of such
    determination if the maturity were to be accelerated;
</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 principal amount of a debt security denominated in a foreign
    currency that shall be deemed outstanding shall be the
    U.S.&#160;dollar equivalent, determined on the issue date for
    such debt security, of the principal amount (or, in the case of
    an original issue discount security, the U.S.&#160;dollar
    equivalent on the issue date of such debt security of the amount
    determined as provided above);
</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 principal amount of an indexed security that shall be deemed
    outstanding shall be the principal face amount of such indexed
    security at original issuance, unless the Indenture otherwise
    provides;&#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">
    debt securities we own or any other obligor upon the debt
    securities or any of our affiliates or of such other obligor
    shall be disregarded.
</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">Meetings
    of the Holders of Debt 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Indenture contains provisions for convening meetings of the
    holders of an issued series of debt securities. A meeting may be
    called at any time by the trustee and also, upon our request, or
    the request of holders of at least 10% in principal amount of
    the outstanding debt securities of such series, in any such case
    upon notice given as provided in the Indenture. Except for any
    consent that must be given by the holder of each debt security
    affected by certain modifications and amendments of the
    Indenture, any resolution presented at a meeting or adjourned
    meeting duly reconvened at which a quorum is present may be
    adopted by the affirmative vote of the holders of a majority in
    principal amount of the outstanding debt securities of that
    series. However, except as referred to above, any resolution
    with respect to any request, demand, authorization, direction,
    notice, consent, waiver or other action that may be made, given
    or taken by the holders of a specified percentage which is less
    than a majority, in principal amount of the outstanding debt
    securities of a series may be adopted at a meeting or adjourned
    meeting duly reconvened. Such resolution must be adopted at a
    meeting or adjourned meeting at which a quorum is present by the
    affirmative vote of the holders of that specified percentage in
    principal amount of the outstanding debt securities of that
    series. Any resolution passed or decision taken at any meeting
    of holders of debt securities of any series duly held in
    accordance with the Indenture will be binding on all holders of
    debt securities of that series. The quorum at any meeting called
    to adopt a resolution, and at any reconvened meeting, will be
    persons holding or representing a majority in principal amount
    of the outstanding debt securities of a series. However, if any
    action is to be taken at such meeting with respect to a consent
    or waiver which may be given by the holders of not less than a
    specified percentage in principal amount of the outstanding debt
    securities of a series, the persons holding or representing such
    specified percentage in principal amount of the outstanding debt
    securities of such series will constitute a quorum.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the provisions described above, if any action is
    to be taken at a meeting of holders of debt securities of any
    series with respect to any request, demand, authorization,
    direction, notice, consent, waiver or other action that the
    Indenture expressly provides may be made, given or taken by the
    holders of a specified percentage in principal amount of all
    outstanding debt securities affected thereby, or of the holders
    of such series and one or more additional series:
</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">
    there shall be no minimum quorum requirement for such
    meeting;&#160;and
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</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 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 principal amount of the outstanding debt securities of such
    series that vote in favor of such request, demand,
    authorization, direction, notice, consent, waiver or other
    action shall be taken into account in determining whether such
    request, demand, authorization, direction, notice, consent,
    waiver or other action has been made, given or taken under the
    Indenture.
</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">Discharge,
    Defeasance and Covenant Defeasance</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">
    Unless otherwise indicated in the applicable prospectus
    supplement, we may discharge certain obligations to holders of
    any series of debt securities that have not already been
    delivered to the trustee for cancellation and that either have
    become due and payable or will become due and payable within one
    year (or scheduled for redemption within one year) by
    irrevocably depositing with the trustee, in trust, funds in such
    currency or currencies, currency unit or units or composite
    currency or currencies in which such debt securities are payable
    in an amount sufficient to pay the entire indebtedness on such
    debt securities in respect of principal (and premium, if any)
    and interest to the date of such deposit (if such debt
    securities have become due and payable) or to the stated
    maturity or redemption date, as the case may be.
</DIV>

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

<DIV align="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 indicated in the applicable prospectus
    supplement, we may elect 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">
    to defease and be discharged from any and all obligations
    (except for the obligation to pay additional amounts, if any,
    upon the occurrence of certain events of tax, assessment or
    governmental charge with respect to payments on such debt
    securities and the obligations to register the transfer or
    exchange of such debt securities, to replace temporary or
    mutilated, destroyed, lost or stolen debt securities, to
    maintain an office or agency in respect of such debt securities
    and to hold moneys for payment in trust) with respect to such
    debt securities (&#147;defeasance&#148;);&#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 be released from our obligations with respect to those debt
    securities under the Indenture (being the restrictions described
    under the caption &#147;&#151;&#160;Certain Covenants&#148;) or
    if provided in the applicable prospectus supplement, our
    obligations with respect to any other covenant, and any omission
    to comply with such obligations shall not constitute a default
    or an event of default with respect to such debt securities
    (&#147;covenant defeasance&#148;), in either case upon our
    irrevocable deposit with the applicable trustee, in trust, of an
    amount, in such currency or currencies, currency unit or units
    or composite currency or currencies in which such debt
    securities are payable at stated maturity, or Government
    Obligations (as defined below), or both, applicable to such debt
    securities which through the scheduled payment of principal and
    interest in accordance with their terms will provide money in an
    amount sufficient to pay the principal of (and premium, if any)
    and interest on such debt securities, and any mandatory sinking
    fund or analogous payments thereon, on the scheduled due dates.
</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">
    Such a trust may only be established if, among other things, we
    have delivered to the applicable trustee an opinion of counsel
    (as specified in the Indenture) confirming that:
</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 holders of such debt securities will not recognize income,
    gain or loss for U.S.&#160;federal income tax purposes as a
    result of such defeasance or covenant defeasance;&#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 holders will be subject to U.S.&#160;federal income tax on
    the same amounts, in the same manner and at the same times as
    would have been the case if such defeasance or covenant
    defeasance had not occurred.
</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 opinion of counsel, in the case of defeasance, must refer to
    and be based upon a ruling of the Internal Revenue Service or a
    change in applicable U.S.&#160;federal income tax law occurring
    after the date of the Indenture. In the event of such
    defeasance, the holders of such debt securities would thereafter
    be able to look only to such trust fund for payment of principal
    (and premium, if any) and interest.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Government Obligations&#148; means securities that 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">
    of the same government that issued the currency in which the
    series of debt securities are denominated and in which interest
    is payable;&#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">
    of government agencies backed by the full faith and credit of
    such government.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
</DIV><!-- END LOGICAL PAGE -->
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<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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="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 provided in the applicable prospectus
    supplement, if after we have deposited funds
    <FONT style="white-space: nowrap">and/or</FONT>
    Government Obligations to effect defeasance or covenant
    defeasance with respect to debt securities of any series,
</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 holder of a debt security of such series is entitled to, and
    does, elect pursuant to the Indenture or the terms of such debt
    security to receive payment in a currency, currency unit or
    composite currency other than that in which such deposit has
    been made in respect of such debt security;&#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 conversion event (as described below) occurs in respect of the
    currency, currency unit or composite currency in which such
    deposit has been made, the indebtedness represented by such debt
    security shall be deemed to have been, and will be, fully
    discharged and satisfied through the payment of the principal of
    (and premium, if any) and interest on such debt security as they
    become due out of the proceeds yielded by converting the amount
    so deposited in respect of such debt security into the currency,
    currency unit or composite currency in which such debt security
    becomes payable as a result of such election or such cessation
    of usage based on the applicable market exchange rate.
</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">
    A conversion event is the cessation of use 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="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 currency, currency unit or composite currency both by the
    government of the country which issued such currency and for the
    settlement of actions by a central bank or other public
    institution of or within the international banking community;
</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 European currency unit (the &#147;ECU&#148;) both within the
    European Monetary System and for the settlement of transactions
    by public institutions of or within the European
    Communities;&#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">
    any currency unit or composite currency other than the ECU for
    the purposes for which it was established.
</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">
    Unless otherwise described in the applicable prospectus
    supplement, all payments of principal of (and premium, if any)
    and interest on any debt security that is payable in a foreign
    currency that ceases to be used by its government of issuance
    shall be made in U.S.&#160;dollars.
</DIV>

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

<DIV align="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 we effect covenant defeasance with respect to any
    debt securities and such debt securities are declared due and
    payable because of the occurrence of any event of default, other
    than the event of default described in the fourth clause under
    &#147;&#151;&#160;Events of Default, Notice and Waiver&#148;
    with respect to the specified sections in the Indenture (which
    sections would no longer be applicable to such debt securities)
    or the ninth clause with respect to any other covenants as to
    which there has been covenant defeasance, the amount in such
    currency, currency unit or composite currency in which such debt
    securities are payable and Government Obligations on deposit
    with the applicable trustee, will be sufficient to pay amounts
    due on such debt securities at the time of their stated maturity
    but may not be sufficient to pay amounts due on such debt
    securities at the time of the acceleration resulting from such
    event of default. In any such event, we would remain liable to
    make payments of such amounts due at the time of acceleration.
</DIV>

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

<DIV align="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 prospectus supplement may further describe the
    provisions, if any, permitting such defeasance or covenant
    defeasance, including any modifications to the provisions
    described above, with respect to the debt securities of or
    within a particular series.
</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">Convertible
    Debt 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The terms and conditions, if any, upon which the debt securities
    are convertible into shares of our common stock will be set
    forth in the applicable prospectus supplement. Such terms will
    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">
    whether such debt securities are convertible into shares of
    common 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>    &#149;&#160;
</TD>
    <TD align="left">
    the conversion price (or manner of calculation thereof),
</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 conversion period,
</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">
    provisions as to whether conversion will be at our option or at
    the option of the holders,&#160;and
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</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">
    the events requiring an adjustment of the conversion price and
    provisions affecting conversion in the event of the redemption
    of such debt securities and any restrictions on conversion,
    including restrictions directed at maintaining our REIT status.
</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">
    Reference is made to the section captioned &#147;Description of
    Common Stock&#148; for a general description of shares of our
    common stock to be acquired upon the conversion of debt
    securities, including a description of certain restrictions on
    the ownership of 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">Book-Entry
    Debt 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: 4%; 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 in the form of one or more global securities that will be
    deposited with, or on behalf of, a depositary identified in the
    applicable prospectus supplement relating to such series. Global
    securities may be issued in either registered or bearer form.
    The specific terms of the depositary arrangement with respect to
    a series of debt securities will be described in the applicable
    prospectus supplement relating to such series.
</DIV>


<!-- link1 "DESCRIPTION OF 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='115'></A><B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF 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 is a general description of the preferred stock
    that we may offer from time to time. The particular terms of the
    preferred stock being offered and the extent to which such
    general provisions may apply will be set forth in the applicable
    prospectus supplement. The statements below describing our
    preferred stock are in all respects subject to and qualified in
    their entirety by reference to the applicable provisions of our
    articles of incorporation and our bylaws.
</DIV>

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

<DIV align="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 authorized capital stock consists of 190,000,000&#160;shares
    of common stock, par value $0.01&#160;per share,
    15,000,000&#160;shares of preferred stock, par value
    $0.01&#160;per share, and 205,000,000&#160;shares of excess
    stock, par value $0.01 per share, issuable in exchange for
    capital stock as described below under &#147;Description of
    Common Stock&#160;&#151; Restrictions on Ownership.&#148; As of
    December&#160;31, 2005, we had 1,781,589&#160;shares of 9%
    Non-Voting Series&#160;A Preferred Stock outstanding, all of
    which was issued in connection with our merger with Captec Net
    Lease Realty, Inc. in December 2001, and we had
    10,000&#160;shares of 6.70% Non-Voting Series&#160;B Cumulative
    Convertible Perpetual 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: '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">
    Under our articles of incorporation, our Board of Directors may
    from time to time establish and issue one or more series of
    preferred stock without stockholder approval. Our Board of
    Directors may, subject to the express provisions of any other
    series of preferred stock then outstanding, alter the
    designation, classify or reclassify any unissued preferred stock
    by setting or changing the number, designation, preference,
    conversion or other rights, voting powers, restrictions,
    limitations as to dividends, qualifications and terms or
    conditions of redemption of such series. The issuance of
    preferred stock could adversely affect the voting power,
    dividend rights and other rights of holders of common stock.
    Preferred stock will, when issued, be fully paid and
    nonassessable.
</DIV>

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

<DIV align="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 prospectus supplement relating to any preferred stock
    offered under it will contain the specific terms, 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 number of shares, designation or title of the shares and
    offering price of the shares;
</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 dividend rate on the shares of the series, if any, whether
    any dividends shall be cumulative and, if so, from which date or
    dates, and the relative rights of priority, if any, of payment
    of dividends on shares of the 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">
    the date from which dividends on the preferred stock will
    accumulate, if applicable;
</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 redemption rights, including conditions and the price(s), if
    any, for shares of the 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">
    the terms and amounts of any sinking fund for the purchase or
    redemption of shares of the 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">
    the rights of the shares of the series in the event of any
    voluntary or involuntary liquidation, dissolution or winding up
    of our affairs, and the relative rights of priority, if any, of
    payment of shares of the series;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</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>

<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">
    whether the shares of the series will be convertible into shares
    of any other class or series, or any of our other securities, or
    securities of any other corporation or other entity, and, if so,
    the specification of the other class or series of the other
    security, the conversion price(s) or dates on which the shares
    will be convertible and all other terms and conditions upon
    which the conversion may be made;
</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">
    restrictions on the issuance of shares of the same series or of
    any other 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">
    the voting rights, if any, of the holders of shares of the
    series;&#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">
    any other relative rights, preferences and limitations on that
    series.
</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">Rank</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">
    Unless otherwise specified in the prospectus supplement, our
    preferred stock, of a particular series, being issued will, with
    respect to dividend rights and rights upon our liquidation,
    dissolution or winding up, rank:
</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">
    senior to all classes or series of our common stock, and to all
    equity securities ranking junior to preferred stock we have
    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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    on a parity with our existing 9% Non-Voting Series&#160;A
    Preferred Stock and 6.70% Non-Voting Series&#160;B Cumulative
    Convertible Perpetual Preferred Stock and all equity securities
    we have issued, the terms of which specifically provide that
    such equity securities rank on a parity with the 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">
    junior to all preferred stock of a different series that we have
    issued the terms of which specifically provide that such equity
    securities rank senior to preferred stock of another series.
</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 term &#147;equity securities&#148; does not include
    convertible debt securities.
</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">
    Holders of preferred stock of each series will be entitled to
    receive, when, as and if declared by our Board of Directors, out
    of our assets legally available for payment, cash dividends (or
    dividends in kind or in other property if expressly permitted
    and described in the applicable prospectus supplement) at such
    rates and on such dates as will be set forth in the applicable
    prospectus supplement. Each such dividend shall be payable to
    holders of record as they appear on our share transfer books on
    such record dates as shall be fixed 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dividends on any series of preferred stock may be cumulative or
    non-cumulative, as provided in the applicable prospectus
    supplement. Dividends, if cumulative, will be cumulative from
    and after the date set forth in the applicable prospectus
    supplement. If our Board of Directors fails to declare a
    dividend payable on a dividend payment date on any series of
    preferred stock for which dividends are noncumulative, then the
    holders of such series of preferred stock will have no right to
    receive a dividend in respect of the dividend period ending on
    such dividend payment date. We will have no obligation to pay
    the dividend accrued for such period, whether or not dividends
    on such series are declared payable on any future dividend
    payment 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">
    If preferred stock of any series is outstanding, we will not pay
    or declare a full dividend on a series of parity or junior
    preferred stock or common stock 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">
    for preferred stock with cumulative dividends, we have declared
    and paid, or declared and set apart a sum sufficient to pay full
    cumulative dividends on the preferred stock through the
    then-current dividend period;&#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">
    for preferred stock lacking cumulative dividends, we have
    declared and paid, or declared and set apart a sum sufficient to
    pay full dividends for the then-current dividend 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If dividends are not paid in full (or if a sum sufficient has
    not been set aside for full payment), then dividends for both
    that series and any parity series will be declared pro rata.
    Therefore, the amount of dividends declared per share of both
    series will maintain the same ratio that accrued dividends per
    share of each series bear to each other. Accrued dividends will
    not include any accumulation in respect of unpaid dividends for
    prior dividend periods if such shares of preferred stock do not
    have a cumulative dividend. No interest, or sum of money in lieu
    of interest, shall be payable for any dividend payment or
    payments on preferred stock of such series which may be in
    arrears.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
</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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="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 in the immediately preceding paragraph,
    unless we have paid, or declared and set apart a sum sufficient
    to pay the then current dividend (including dividend payments in
    arrears if dividends are cumulative) for a series of preferred
    stock, we will not declare dividends (other than in common stock
    or preferred stock ranking junior to the preferred stock of such
    series as to dividends and upon liquidation) or pay or set aside
    for payment or declare or make any other distribution upon
    shares of the common stock, junior stock or parity stock as to
    dividends or upon liquidation. Additionally, we shall not
    redeem, purchase or otherwise acquire for any consideration (or
    any moneys be paid to or made available for a sinking fund for
    the redemption of any such shares) any shares of common stock,
    junior stock or parity stock as to dividends or upon
    liquidation. However, we may convert or exchange those shares
    into junior stock as to dividends and upon liquidation.
</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">
    If so provided in the applicable prospectus supplement, any
    series of our preferred stock will be subject to mandatory
    redemption or redemption at our option, in whole or in part, in
    each case upon the terms, at the times and at the redemption
    prices set forth in such 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 prospectus supplement relating to a series of our preferred
    stock that is subject to mandatory redemption will specify:
</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 number of shares of such preferred stock that we will redeem
    in each 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">
    the year the redemption will commence;
</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 redemption price per share, together with an amount equal to
    all accrued and unpaid dividends to the date of redemption; 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">
    whether the redemption price may be payable in cash 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: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the redemption price for our preferred stock of any series is
    payable only from the net proceeds of the issuance of our
    capital stock, the terms of such preferred stock may provide
    that, if we have not issued capital stock or to the extent the
    net proceeds from any issuance are insufficient to pay in full
    the aggregate redemption price then due, such preferred stock
    shall automatically and mandatorily be converted into the
    applicable class or series of our capital stock pursuant to
    conversion provisions specified 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We cannot redeem, purchase or otherwise acquire shares of a
    series of preferred stock 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">
    for preferred stock with cumulative dividends, we have declared
    and paid, or declared and set apart a sum sufficient to pay full
    cumulative dividends on the preferred stock through the
    then-current dividend period;&#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">
    for preferred stock lacking cumulative dividends, we have
    declared and paid, or declared and set apart a sum sufficient to
    pay full dividends for the then-current dividend 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">
    The foregoing shall not prevent the purchase or acquisition of
    preferred stock of such series to preserve our REIT status or
    pursuant to a purchase or exchange offer made on the same terms
    to holders of all outstanding preferred stock 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If fewer than all of our outstanding preferred stock of any
    series are to be redeemed, we will determine the number of
    shares to be redeemed. We may redeem the shares on a pro rata
    basis from the holders of record of those shares in proportion
    to the number of those shares held or for which redemption is
    requested by the holder (with adjustments to avoid redemption of
    fractional shares) or by lot in a manner we determine.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notice of redemption will be mailed at least 30&#160;days but
    not more than 60&#160;days before the redemption date to each
    holder of record of preferred stock of any series to be redeemed
    at the address shown on our share transfer books. Each notice
    shall state:
</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 redemption 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 and the series of preferred stock to be
    redeemed;
</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 redemption price;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
</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 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 place or places where certificates for such shares are to be
    surrendered for payment of the redemption price;
</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">
    that dividends on the shares to be redeemed will cease to accrue
    on such redemption date;&#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 date upon which the holder&#146;s conversion rights, if any,
    as to such shares shall terminate.
</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">
    If fewer than all of the preferred stock of any series are to be
    redeemed, the notice mailed to each holder shall also specify
    the number of shares of preferred stock to be redeemed from each
    holder. If notice of redemption of any preferred stock has been
    given and if we have set aside the funds necessary for such
    redemption in trust for the benefit of the holders of any of our
    preferred stock so called for redemption, then from and after
    the redemption date dividends will cease to accrue on the
    preferred stock, and all rights of the holders of the redeemable
    shares will terminate, except the right to receive the
    redemption price.
</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
    Preference</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">
    Upon any voluntary or involuntary liquidation, dissolution or
    winding up of our affairs, then, before any distribution or
    payment will be made to the holders of any shares of common
    stock or any other class or series of preferred stock ranking
    junior to the preferred stock in the distribution of assets upon
    any liquidation, dissolution or winding up of us, the holders of
    each series of preferred stock will be entitled to receive out
    of our assets legally available for distribution to stockholders
    liquidating distributions in the amount of the liquidation
    preference per share (set forth in the applicable prospectus
    supplement), plus an amount equal to all dividends accrued and
    unpaid (which shall not include any accumulation in respect of
    unpaid dividends for prior dividend periods if such preferred
    stock does not have a cumulative dividend). After payment of the
    full amount of the liquidating distributions to which they are
    entitled, the holders of preferred stock will have no right or
    claim to any of our remaining assets. In the event that, upon
    any such voluntary or involuntary liquidation, dissolution or
    winding up, our available assets are insufficient to pay the
    amount of the liquidating distributions on all our outstanding
    preferred stock and the corresponding amounts payable on all
    shares of other classes or series of our capital stock ranking
    on a parity with the preferred stock in the distribution of
    assets, then the holders of the preferred stock and all other
    such classes or series of capital stock shall share ratably in
    any such distribution of assets in proportion to the full
    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">
    If liquidating distributions shall have been made in full to all
    holders of preferred stock, our remaining assets will be
    distributed among the holders of any other classes or series of
    capital stock ranking junior to the preferred stock upon
    liquidation, dissolution or winding up, according to their
    respective rights and preferences and in each case according to
    their respective number of shares. For such purposes, our
    consolidation or merger with or into any other corporation,
    trust or entity, or the sale, lease or conveyance of all or
    substantially all of our property or business, shall not be
    deemed to constitute a liquidation, dissolution or winding up of
    us.
</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">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">
    Holders of preferred stock will not have any voting rights,
    except as set forth below or as otherwise from time to time
    required by law or as indicated 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless provided otherwise for any series of preferred stock, so
    long as any shares of preferred stock remain outstanding, we
    will not, without the affirmative vote or consent of the holders
    of at least two-thirds of each series of preferred stock
    outstanding at the time, given in person or by proxy, either in
    writing or at a meeting (such series voting separately as a
    class),
</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">
    authorize or create, or increase the authorized or issued amount
    of, any class or series of our capital stock ranking senior to
    such series of preferred stock with respect to the payment of
    dividends or the distribution of assets upon liquidation,
    dissolution or winding up or reclassify any of our authorized
    capital shares into such shares, or create, authorize or issue
    any obligation or security convertible into or evidencing the
    right to purchase any such shares;&#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">
    amend, alter or repeal the provisions of our articles of
    incorporation or the designating amendment for such series of
    preferred stock, whether by merger, consolidation or otherwise
    (an &#147;Event&#148;), so as to materially and
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<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">
    adversely affect any right, preference, privilege or voting
    power of such series of preferred stock or the holders thereof.
</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">
    However, with respect to the occurrence of any of the Events set
    forth above, so long as the preferred stock remains outstanding
    with the terms materially unchanged, taking into account that
    upon the occurrence of an Event, we may not be the surviving
    entity, the occurrence of any such Event shall not be deemed to
    materially and adversely affect such rights, preferences,
    privileges or voting power of holders of preferred stock.
    Further,
</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 increase in the amount of the authorized preferred stock or
    the creation or issuance of any other series of preferred
    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">
    any increase in the amount of authorized shares of such series
    or any other series of preferred stock, in each case ranking on
    a parity with or junior to the preferred stock of such series
    with respect to payment of dividends or the distribution of
    assets upon liquidation, dissolution or winding up,
</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">
    shall not be deemed to materially and adversely affect such
    rights, preferences, privileges or voting powers.
</DIV>

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

<DIV align="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 preferred stock of such series shall have been redeemed or
    called for redemption and sufficient funds shall have been
    deposited in trust to effect such redemption.
</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
    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">
    The terms and conditions, if any, upon which any series of
    preferred stock is convertible into shares of our common stock
    will be set forth in the applicable prospectus supplement. Such
    terms will 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">
    the number of shares of common stock into which the shares of
    preferred stock are convertible,
</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 conversion price (or manner of calculation),
</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 conversion period,
</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">
    provisions as to whether conversion will be at the option of the
    holders of preferred stock or 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">
    the events requiring an adjustment of the conversion
    price,&#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">
    provisions affecting conversion in the event of the redemption
    of such series of preferred stock.
</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">Restrictions
    on Ownership</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">
    As discussed below under &#147;Description of Common
    Stock&#160;&#151; Restrictions on Ownership,&#148; for us to
    qualify as a REIT under the U.S.&#160;Internal Revenue Code (the
    &#147;Code&#148;), not more than 50% in value of our outstanding
    equity securities of all classes may be owned, directly or
    indirectly, by five or fewer individuals (as defined in the Code
    to include certain entities) during the last half of a taxable
    year. To assist us in meeting this requirement, we may take
    certain actions to limit the beneficial ownership, directly or
    indirectly, by a single person of our outstanding equity
    securities, including any of our preferred stock. Therefore, the
    designating amendment for each series of preferred stock may
    contain provisions restricting the ownership and transfer 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: 'Times New Roman', Times">Book-Entry
    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 preferred stock of a series may be issued in whole or in
    part in the form of one or more global securities that will be
    deposited with, or on behalf of, a depositary identified in the
    applicable prospectus supplement relating to such series. Global
    securities may be issued in either registered or bearer form and
    in either temporary or permanent form. The specific terms of the
    depositary arrangement with respect to a series of preferred
    stock will be described in the applicable prospectus supplement
    relating to such series.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<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">Registrar
    and Transfer 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">
    The registrar and transfer agent for the preferred stock will be
    set forth in the applicable prospectus supplement. Wachovia
    Bank, N.A. is the transfer agent of our existing 9% Non-Voting
    Series&#160;A Preferred Stock and 6.70% Non-Voting Series&#160;B
    Cumulative Convertible Perpetual Preferred Stock.
</DIV>


<!-- link1 "DESCRIPTION OF DEPOSITARY 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='116'></A><B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF DEPOSITARY 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 following is a general description of the depositary shares
    that we may offer from time to time. The particular terms of the
    depositary shares being offered and the extent to which such
    general provisions may apply will be set forth in the applicable
    prospectus supplement.
</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">
    We may issue receipts for depositary shares, each of which will
    represent a fractional interest of a share of a particular
    series of a class of our preferred stock, as specified in the
    applicable prospectus supplement. We will deposit shares of
    preferred stock of each series represented by depositary shares
    under a separate deposit agreement among us, the applicable
    depositary and the holders from time to time of the depositary
    receipts. Generally, each owner of a depositary receipt will be
    entitled, in proportion to the fractional interest of a share of
    the particular series of shares of preferred stock represented
    by the appropriate depositary shares, to all the rights and
    preferences of those shares of preferred stock (including
    dividend, voting, conversion, redemption and liquidation
    rights). As of December&#160;31, 2005, we had no depositary
    shares issued or 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">
    The depositary shares will be evidenced by depositary receipts
    issued pursuant to the applicable deposit agreement. Immediately
    following our issuance and delivery of our preferred stock to
    the depositary, we will cause the preferred stock depositary to
    issue, on our behalf, the depositary receipts. Upon request we
    will provide you with copies of the applicable form of deposit
    agreement and depositary receipt.
</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
    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: 4%; 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 in respect of the preferred stock to the
    record holders of the applicable depositary receipts in
    proportion to the number of depositary receipts owned by 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event of a distribution other than in cash, the
    depositary will distribute property received by it to the
    appropriate record holders of depositary receipts. If the
    depositary determines that it is not feasible to make such
    distribution, then it may, with our approval, sell such property
    and distribute the net proceeds to the record 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">Withdrawal
    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">
    Generally, if a holder surrenders depositary receipts at the
    corporate trust office of the preferred stock depositary (unless
    the related depositary shares have previously been called for
    redemption), the holder will be entitled to receive at that
    office the number of whole or fractional shares of preferred
    stock and any money or other property represented by the
    depositary shares. Holders of depositary receipts will be
    entitled to receive whole or fractional shares of the related
    preferred stock on the basis of the proportion of shares of
    preferred stock represented by each depositary share as
    specified in the applicable prospectus supplement. Thereafter,
    holders of such preferred stock will not be entitled to receive
    depositary shares for the preferred stock. If a holder seeks to
    withdraw more depositary shares than are available, then the
    preferred stock depositary will deliver to such holder at the
    same time a new depositary receipt evidencing such excess number
    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: 'Times New Roman', Times">Redemption
    of Depositary 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">
    Whenever we redeem preferred stock held by the preferred stock
    depositary, the depositary will redeem as of the same redemption
    date the appropriate number of depositary shares, provided we
    shall have paid in full to the depositary the redemption price
    of the preferred stock to be redeemed plus an amount equal to
    any accrued and unpaid dividends (except, with respect to
    noncumulative shares of preferred stock, dividends for the
    current
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    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">
    dividend period only) to the date fixed for redemption. The
    redemption price per depositary share will be equal to the
    redemption price and any other amounts per share payable with
    respect to the preferred stock specified in the applicable
    prospectus supplement. If less than all the depositary shares
    are to be redeemed, the amount redeemed will be selected by the
    depositary by lot.
</DIV>

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

<DIV align="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 date fixed for redemption, the depositary shares
    called for redemption will no longer be outstanding. All rights
    of the holders will cease, except the right to receive money or
    other property that the holders of the depositary shares were
    entitled to receive upon such redemption. Payments will be made
    when holders surrender their depositary receipts to 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: 'Times New Roman', Times">Voting of
    the Underlying 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">
    Upon receipt of notice of any meeting at which the holders of
    shares of preferred stock are entitled to vote, the depositary
    will mail the information contained in such notice of meeting to
    the record holders of the applicable depositary receipts. Each
    record holder of depositary receipts 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 the
    exercise of the voting rights pertaining to the amount of shares
    of preferred stock represented by such holder&#146;s depositary
    shares. The depositary will vote in accordance with such
    instructions, and we will agree to take all reasonable action
    that may be deemed necessary by the depositary in order to
    enable the depositary to do so. The depositary will abstain from
    voting to the extent it does not receive specific instructions
    from the depositary receipts 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">Liquidation
    Preference</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 our liquidation, dissolution or winding up,
    whether voluntary or involuntary, each holder of a depositary
    receipt will be entitled to the fraction of the liquidation
    preference accorded each share of applicable preferred stock, as
    set forth in the appropriate prospectus supplement.
</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
    of 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">
    Our depositary shares, as such, are not convertible into shares
    of our common stock or any of our other securities or property.
    Nevertheless, if so specified in the applicable prospectus
    supplement, the depositary receipts may be surrendered by their
    holders to the depositary with written instructions to the
    depositary to instruct us to cause conversion of the shares of
    represented preferred stock into whole shares of common stock or
    preferred stock, as the case may be, and we will agree that upon
    receipt of such instructions and any amounts payable, we will
    convert the depositary shares utilizing the same procedures as
    those provided for delivery of shares of preferred stock to
    effect such conversion. If the depositary shares are to be
    converted in part only, one or more new depositary receipts will
    be issued for any depositary shares not to be converted. No
    fractional shares of common stock will be issued upon
    conversion, and if such conversion will result in a fractional
    share being issued, we will pay an amount in cash equal to the
    value of the fractional interest based upon the closing price of
    the common stock on the last business day prior to the
    conversion.
</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">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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We and the depositary may, at any time, agree to amend the form
    of depositary receipt and any provision of the deposit
    agreement. However, any amendment that materially and adversely
    alters the rights of the holders of depositary receipts will not
    be effective unless that amendment has been approved by the
    existing holders of at least a majority of the depositary 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 may terminate the deposit agreement upon not less than
    30&#160;days&#146; prior written notice to the preferred stock
    depositary 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">
    the termination is to preserve our status as a REIT&#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 majority of each class of preferred stock affected by the
    termination consents to the termination,
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
</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: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    whereupon the depositary will deliver or make available to each
    holder of depositary receipts, upon surrender of the depositary
    receipts held by such holder, such number of whole or fractional
    shares of preferred stock as are represented by the depositary
    shares evidenced by such depositary receipts.
</DIV>

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

<DIV align="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, the deposit agreement will automatically terminate
    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">
    all outstanding depositary shares shall have been redeemed;
</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 shall have been a final distribution in respect of the
    related preferred stock in connection with our liquidation,
    dissolution or winding up and such distribution shall have been
    distributed to the holders of the applicable depositary
    receipts;&#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">
    each share of related preferred stock shall have been converted
    into capital stock not so represented by depositary shares.
</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">Charges
    of Preferred Stock 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: 4%; 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 deposit
    agreement. In addition, we will pay the fees and expenses of the
    depositary in connection with the performance of its duties
    under the deposit agreement. However, unless otherwise specified
    in the applicable prospectus supplement, holders of depositary
    receipts will pay the fees and expenses of the depositary for
    any duties requested by such holders to be performed which are
    outside of those expressly provided for 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: 'Times New Roman', Times">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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The depositary may resign at any time by delivering to us notice
    of its election to do so. We may at any time remove the
    depositary. Any such resignation or removal will take effect
    upon the appointment of a successor depositary, which must be
    appointed within 60&#160;days after delivery of the notice of
    resignation or removal and, as in the case of the original
    preferred stock depositary, 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 $50,000,000.
</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">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">
    The depositary will forward to holders of depositary receipts
    any reports and communications from us, including our annual
    reports and Exchange Act filings, which are received by the
    depositary with respect to the related 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, as well as the depositary, will not be liable if either of
    us is prevented from or delayed in, by law or any circumstances
    beyond its control, performing its obligations under the deposit
    agreement. Our obligations and those of the depositary under the
    deposit agreement will be limited to performing our respective
    duties in good faith and without negligence, gross negligence or
    willful misconduct, and neither of us will be obligated to
    prosecute or defend any legal proceeding relating to any
    depositary receipts, depositary shares or shares of preferred
    stock unless satisfactory indemnity is furnished. We and the
    depositary may rely on written advice of counsel or accountants,
    or information provided by persons presenting shares of
    preferred stock represented by depositary receipts, holders of
    depositary receipts or other persons believed to be competent to
    give such information, and on documents believed to be genuine
    and signed by a proper party.
</DIV>

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

<DIV align="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 depositary shall receive conflicting claims, requests or
    instructions from any holders of depositary receipts, on the one
    hand, and us, on the other hand, the depositary shall be
    entitled to act on our claims, requests or instructions.
</DIV>


<!-- link1 "DESCRIPTION OF COMMON 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='117'></A><B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following description of our common stock sets forth certain
    general terms and provisions of the common stock to which any
    prospectus supplement may relate, including a prospectus
    supplement providing that common stock will be issuable upon
    conversion of our debt securities or our preferred stock or upon
    the exercise of our
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
</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">
    warrants to purchase common stock. The statements below
    describing the common stock are in all respects subject to and
    qualified in their entirety by reference to the applicable
    provisions of our articles of incorporation and bylaws.
</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 authorized capital stock consists of 190,000,000&#160;shares
    of common stock and 15,000,000&#160;shares of preferred stock.
    There also is authorized 205,000,000&#160;shares of excess
    stock, issuable in exchange for capital stock, as described
    below under &#147;&#151;&#160;Restrictions on Ownership.&#148;
    As of December&#160;31, 2005, we had outstanding
    55,130,876&#160;shares of common stock. All issued and
    outstanding shares of common stock are duly authorized, validly
    issued, fully paid and nonassessable.
</DIV>

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

<DIV align="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 holders of common stock elect all directors and are entitled
    to one vote per share on all matters submitted to a vote of the
    stockholders. Stockholders are entitled to receive dividends
    when, as and if declared by our Board of Directors out of funds
    legally available for that purpose. Upon our liquidation,
    dissolution or winding up, holders of common stock are entitled
    to share pro rata in any distribution to stockholders. Holders
    of common stock have no preemptive, subscription or conversion
    rights. The common stock will, when issued, be fully paid and
    nonassessable and will not be subject to preemptive or other
    similar rights.
</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">Restrictions
    on Ownership</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">
    For us to qualify as a REIT, not more than 50% in value of our
    outstanding capital stock may be owned, directly or indirectly,
    by five or fewer individuals (as defined in the Code to include
    certain entities) during the last half of a taxable year. The
    shares must be beneficially owned (without reference to any
    rules of attribution) by 100 or more persons during at least
    335&#160;days of a taxable year of 12&#160;months or during a
    proportionate part of a shorter taxable year; and certain other
    requirements must be satisfied. See &#147;Federal Income Tax
    Considerations&#160;&#151; Taxation of Commercial Net Lease
    Realty, Inc.&#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">
    To ensure that five or fewer individuals do not own more than
    50% in value of the outstanding common stock, our articles of
    incorporation provide that, subject to certain exceptions, no
    holder may own, or be deemed to own by virtue of the attribution
    provisions of the Code, more than 9.8% in value of the
    outstanding capital stock. Our Board of Directors may waive this
    ownership limit if evidence satisfactory to us and our tax
    counsel is presented that such ownership will not then or in the
    future jeopardize our status as a REIT. As a condition of such
    waiver, our Board of Directors may require opinions of counsel
    satisfactory to it
    <FONT style="white-space: nowrap">and/or</FONT> an
    undertaking from the applicant with respect to preserving our
    status as a REIT.
</DIV>

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

<DIV align="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 ownership limit will not be automatically removed even if
    the REIT provisions of the Code are changed so as to no longer
    contain any ownership concentration limitation or if the
    ownership concentration limitation is increased. In addition to
    preserving our status as a REIT, this ownership limit may
    prevent any person or small group of persons from acquiring
    unilateral control of 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">
    If the ownership, transfer or acquisition of shares of common
    stock, or change in our capital structure or other event or
    transaction would result in:
</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 person owning (applying certain attribution rules) capital
    stock in excess of the ownership limit,
</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">
    fewer than 100 persons owning our capital 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>    &#149;&#160;
</TD>
    <TD align="left">
    our being &#147;closely held&#148; within the meaning of
    Section&#160;856(h) of the Code,&#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">
    our otherwise failing to qualify as a REIT,
</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">
    then the ownership, transfer or acquisition, or change in
    capital structure or other event or transaction that would have
    such effect will be void as to the purported transferee or
    owner, and the purported transferee or owner will not have or
    acquire any rights to the capital stock to the extent required
    to avoid such a result. Capital stock owned, transferred or
    proposed to be transferred in excess of the ownership limit or
    which would otherwise jeopardize our status as a REIT will
    automatically be converted to excess stock. A holder of excess
    stock is not entitled to distributions, voting rights, and other
    benefits with respect to such shares except for the right to
    payment of the purchase price for the shares (or, in the case of
    a devise or gift or similar event which results in the issuance
    of excess
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
</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">
    stock, the fair market value at the time of such devise or gift
    or event) and the right to certain distributions upon
    liquidation. Any dividend or distribution paid to a proposed
    transferee or holder of excess stock shall be repaid to us upon
    demand. Excess stock shall be subject to our repurchase at our
    election. The purchase price of any excess stock shall be equal
    to the lesser 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="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 price paid in such purported transaction (or, in the case of
    a devise or gift or similar event resulting in the issuance of
    excess stock, the fair market value at the time of such devise
    or gift or event),&#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">
    the fair market value of such common stock on the date on which
    we or our designee determines to exercise its repurchase right.
</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 the foregoing transfer restrictions are determined to be void
    or invalid by virtue of any legal decision, statute, rule or
    regulation, then the purported transferee of any excess stock
    may be deemed, at our option, to have acted as an agent on our
    behalf in acquiring such excess stock and to hold such excess
    stock on our 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">
    For purposes of our articles of incorporation, the term
    &#147;person&#148; shall mean:
</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,
</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,
</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,
</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,
</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 (including a trust qualified under Section&#160;401(a)
    or 501(c)(17) of the Code),
</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 portion of a trust permanently set aside to be used
    exclusively for the purposes described in Section&#160;642(c) of
    the Code,
</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 association,
</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 private foundation within the meaning of Section&#160;509(a)
    of the Code,
</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 joint stock company or other entity,&#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 group as that term is used for purposes of
    Section&#160;13(d)(3) of the Securities Exchange Act of 1934;
</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">
    but does not include an underwriter which participated in a
    public offering of our capital stock for a period of sixty
    (60)&#160;days following the purchase by such underwriter of
    capital stock therein, provided that the foregoing exclusions
    shall apply only if the ownership of such capital stock by such
    underwriter would not cause us to fail to qualify as a REIT by
    reason of being &#147;closely held&#148; within the meaning of
    Section&#160;856(a) of the Code or otherwise cause us to fail to
    qualify as a REIT.
</DIV>

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

<DIV align="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 certificates representing capital stock will bear a legend
    referring to the restrictions 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">
    Our articles of incorporation provide that all persons who own,
    directly or by virtue of the attribution provisions of the Code,
    more than 5.0% of the outstanding capital stock, or such lower
    percentage as may be required pursuant to regulations under the
    Code or as may be requested by our Board of Directors, must file
    a written notice with us no later than January 31 of each year
    with respect to the prior year containing:
</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 name and address of such owner,
</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 capital stock owned by such
    holder&#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">
    a description of how such shares are held.
</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 addition, each stockholder shall be required to disclose,
    upon demand, to us in writing such information that we may
    request in good faith in order to determine our status as a REIT
    or to comply with the requirements of any taxing authority or
    governmental agency.
</DIV>

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

<DIV align="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 ownership limitations described above may have the effect of
    precluding acquisitions of control of us by a third party.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<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">Certain
    Provisions of Maryland Law and Our Articles of Incorporation and
    Bylaws</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 summary of certain provisions of the Maryland
    General Corporation Law and our articles of incorporation and
    bylaws is not complete. You should read the Maryland General
    Corporation Law and our articles of incorporation and bylaws for
    more complete information.
</DIV>

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

<DIV align="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>Limitation of Liability of Directors and
    Officers.</I>&#160;&#160;Our articles of incorporation provide
    that, to the fullest extent that limitations on the liability of
    directors and officers are permitted by the Maryland General
    Corporation Law, no director or officer shall be liable to us or
    our stockholders for money damages. The Maryland General
    Corporation Law provides that we may restrict or limit the
    liability of directors or officers for money damages except
</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 the extent anyone actually received an improper benefit or
    profit in money, property or services;&#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 judgment or other final adjudication adverse to the person is
    entered in a proceeding based on a finding that the
    person&#146;s action was material to the cause of action
    adjudicated and the action or failure to act was the result of
    bad faith or active and deliberate dishonesty.
</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">
    <I>Indemnification of Directors and Officers.</I>&#160;&#160;Our
    articles of incorporation and bylaws permit us to indemnify any
    of our employees or agents. The bylaws require us to indemnify
    each director or officer who has been successful in defending
    any proceeding to which he or she is made a party by reason of
    his or her service to us. We have also entered into separate
    indemnification agreements with certain of our directors and
    certain of our executive officers. The agreements require that
    we indemnify our directors and officers to the fullest extent
    permitted by Maryland General Corporation Law. The agreements
    also require us to indemnify and advance all expenses incurred
    by directors and officers seeking to enforce their
    indemnification agreements. We must also cover directors and
    officers under our directors&#146; and officers&#146; liability
    insurance. Although the form indemnification agreement offers
    substantially the same scope of coverage as our articles of
    incorporation and bylaws, the agreements provide greater
    assurance to the directors and officers that indemnification
    will be available because, as a contract, it cannot be modified
    unilaterally in the future by the Board of Directors or by our
    stockholders.
</DIV>

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

<DIV align="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 Maryland General Corporation Law provides that we may
    indemnify directors and officers 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 director actually received an improper benefit or profit in
    money, property or services;
</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 act or omission of the director was material to the matter
    giving rise to the proceeding and was committed in bad faith or
    was the result of active and deliberate dishonesty;&#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 a criminal proceeding, the director had reasonable cause to
    believe that the act or omission was unlawful.
</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">
    <I>Meetings of Stockholders.</I>&#160;&#160;Our bylaws provide
    for an annual meeting of stockholders to elect individuals to
    the Board of Directors and transact such other business as may
    properly be brought before the meeting. Special meetings of
    stockholders may be called by the Chairman of the Board of
    Directors, the Chief Executive Officer or a majority of the
    members of the Board of Directors and shall be called by the
    Secretary at the request in writing of the holders of not less
    than a majority of the outstanding shares of common stock
    entitled to vote.
</DIV>

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

<DIV align="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 bylaws provide that any action required or permitted to be
    taken at a meeting of stockholders may be taken by unanimous
    written consent without a meeting. The written consent must,
    among other items, specify the action to be taken and be signed
    by each stockholder entitled to vote on the matter.
</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</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">
    Wachovia Bank, N.A. is the transfer agent of the common stock.
</DIV>


<!-- link1 "DESCRIPTION OF WARRANTS" -->


<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='118'></A><B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF WARRANTS</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 may issue warrants for the purchase of common or preferred
    stock. If we offer warrants, we will describe the terms in a
    prospectus supplement. Warrants may be offered independently,
    together with other securities offered by any prospectus
    supplement, or through a dividend or other distribution to
    stockholders and may be attached to or separate from other
    securities. We will issue the warrants under warrant agreements
    to be entered into between us
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</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">
    and a bank or trust company, as warrant agent, all as shall be
    set forth in the applicable prospectus supplement. A warrant
    agent would act solely as our agent in connection with the
    warrants of a particular series and would not assume any
    obligation or relationship of agency or trust for or with any
    holders or beneficial owners of such warrants.
</DIV>

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

<DIV align="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 are some of the warrant terms that could be
    described in a prospectus supplement:
</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 title of the warrant;
</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 aggregate number of 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    price or prices at which the warrant 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the designation, number and terms of the preferred shares or
    common shares that may be purchased on exercise of the warrant;
</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 date, if any, on and after which the warrant and the related
    securities will be separately transferable;
</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 price at which each security purchasable on exercise of the
    warrant may be 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 dates on which the right to purchase the securities
    purchasable on exercise of the warrant will begin and end;
</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 minimum or maximum number of securities that may be
    purchased at any one time;
</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 anti-dilution protection;
</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">
    information with respect to book-entry procedures, if any;
</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 discussion of material federal income tax
    considerations;&#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">
    any other warrant terms, including terms relating to
    transferability, exchange or exercise of the warrant.
</TD>
</TR>

</TABLE>


<!-- link1 "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='119'></A><B><FONT style="font-family: 'Times New Roman', Times">FEDERAL
    INCOME TAX CONSIDERATIONS</FONT></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">Introduction</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 are the material federal income tax consequences
    of the ownership of our capital stock, prepared by Pillsbury
    Winthrop Shaw Pittman LLP, our tax counsel. This discussion is
    based on the Internal Revenue Code of 1986, as amended,
    applicable Treasury Department regulations, administrative
    interpretations and court decisions as in effect as of the date
    of this prospectus, all of which may change, retroactively or
    prospectively, and may be subject to differing interpretations.
</DIV>

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

<DIV align="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 discussion addresses only shares of our stock held as
    capital assets. It does not address all aspects of federal
    income taxation that may be relevant to a stockholder based upon
    that stockholder&#146;s particular circumstances or to a
    stockholder subject to special rules, such as:
</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 stockholder who is not a 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 foreign corporation, foreign estate or foreign 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">
    a financial institution or 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 dealer or broker in 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 stockholder that holds its stock as part of a hedge,
    appreciated financial position, straddle or conversion
    transaction;&#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 stockholder who acquired stock pursuant to the exercise of
    options or otherwise as compensation.
</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 discussion below is intended to provide only a general
    summary of the material federal income tax consequences of the
    ownership and disposition of our stock, and is not a complete
    analysis or description of our tax
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
</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 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">
    treatment as a REIT, or of the ownership and disposition of our
    stock. This discussion does not address tax consequences that
    may vary with, or are contingent on, individual circumstances or
    any non-income tax or any foreign, state or local tax
    consequences. You are strongly urged to consult your own tax
    advisor to determine the particular tax consequences of these
    matters.
</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">Taxation
    of Commercial Net Lease Realty, 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">
    <I>General.</I>&#160;&#160;Since our inception, we have elected,
    and believe we have qualified, to be taxed as a REIT for federal
    income tax purposes, as defined in Sections&#160;856 through 860
    of the Code. The provisions of the Code pertaining to REITs are
    highly technical and complex. If various conditions imposed by
    the Code are met, a REIT is, with limited exceptions, not taxed
    at the corporate level on income that is currently distributed
    to the REIT&#146;s stockholders. Undistributed income is taxed
    at regular corporate rates and may be subject to a 4% excise
    tax. In addition, a REIT may be subject to the &#147;alternative
    minimum tax&#148; on its items of tax preference and is subject
    to income tax at the highest corporate rate on income from
    foreclosure property and to penalty taxes on excessive
    unqualified income and prohibited transactions.
</DIV>

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

<DIV align="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 we fail to qualify as a REIT for any taxable year and certain
    relief provisions do not apply, we will be subject to federal
    income tax (including alternative minimum tax) as an ordinary
    corporation on our taxable income at regular corporate rates
    without any deduction or adjustment for distributions to holders
    of common stock or preferred stock. To the extent that we would,
    as a consequence, be subject to tax liability for any such year,
    the amount of cash available for satisfaction of our liabilities
    and for distribution to holders of common stock or preferred
    stock would be reduced. Distributions to holders of common stock
    or preferred stock generally would be taxable as ordinary income
    to the extent of current and accumulated earnings and profits,
    but there can be no assurance that any such distributions would
    be made. Such distributions would, however, be &#147;qualified
    dividend income,&#148; which is potentially taxable at long-term
    capital gain rates for individual stockholders. Furthermore,
    subject to certain limitations of the Code, corporate
    stockholders might be eligible for the dividends received
    deduction. We would not be eligible to elect REIT status for the
    four subsequent taxable years, unless our failure to qualify was
    due to reasonable cause and not willful neglect and unless
    certain other requirements were 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">
    <I>Opinion of Pillsbury Winthrop Shaw Pittman
    LLP.</I>&#160;&#160;Based upon representations made by our
    officers with respect to relevant factual matters, upon the
    existing Code provisions, rules and regulations promulgated
    thereunder (including proposed regulations) and reported
    administrative and judicial interpretations thereof, upon
    Pillsbury Winthrop Shaw Pittman LLP&#146;s independent review of
    such documents and other information as Pillsbury Winthrop Shaw
    Pittman LLP deemed relevant in the circumstances and upon the
    assumption that we will operate in the manner described in this
    prospectus, Pillsbury Winthrop Shaw Pittman LLP has advised us
    that, in its opinion, (a)&#160;we have, for the years 1984
    through 2005, met the requirements for qualification and
    taxation as a REIT and (b)&#160;our proposed method of operation
    will enable us to meet the requirements for qualification and
    taxation as a REIT for 2006 and future taxable years. It must be
    emphasized, however, that our ability to qualify as a REIT is
    dependent upon our actual operating results and future actions
    and events and no assurance can be given that the actual results
    of our operations and the future actions and events will enable
    us to satisfy in any given year the requirements for
    qualification and taxation as a REIT.
</DIV>

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

<DIV align="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>Requirements for Qualification as a REIT.</I>&#160;&#160;As
    discussed more fully below, the Code defines a REIT as a
    corporation:
</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">
    which is managed by one or more trustees or directors;
</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 beneficial ownership of which is evidenced by transferable
    shares, or by transferable certificates of beneficial interest;
</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">
    which would be taxable, but for Sections&#160;856 through 860 of
    the Code, as a domestic corporation;
</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">
    which is neither a financial institution nor 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">
    the beneficial ownership of which is held by 100 or more persons;
</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">
    which is not closely held;&#160;and
</TD>
</TR>

</TABLE>

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    <BR>
    26
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<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">
    which meets certain other tests regarding the nature of its
    assets and income and the amount of its distributions.
</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">
    <I>Corporate Subsidiaries and Partnerships.</I>&#160;&#160;We
    currently have several direct corporate subsidiaries and may
    have additional corporate subsidiaries in the future. A
    corporation that is a &#147;qualified REIT subsidiary&#148; is
    not treated as a corporation separate from its parent REIT. All
    assets, liabilities, and items of income, deduction, and credit
    of a qualified REIT subsidiary are treated as assets,
    liabilities, and items of income, deduction, and credit of the
    REIT. A qualified REIT subsidiary is a corporation, all of the
    capital stock of which is owned by the parent REIT, unless we
    and the subsidiary have jointly elected to have it treated as a
    &#147;taxable REIT subsidiary&#148; (&#147;TRS&#148;), in which
    case it is treated separately from us and will be subject to
    federal corporate income taxation. Thus, in applying the
    requirements described herein, any qualified REIT subsidiary of
    ours will be ignored, and all assets, liabilities, and items of
    income, deduction, and credit of such subsidiary will be treated
    as our assets, liabilities, and items of income, deduction, and
    credit. We believe our direct corporate subsidiaries are
    qualified REIT subsidiaries, except for those which are TRSs.
    Accordingly, our qualified REIT subsidiaries are not subject to
    federal corporate income taxation, though they may be subject to
    state and local taxation.
</DIV>

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

<DIV align="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 REIT is treated as owning its proportionate share of the
    assets of any partnership in which it is a partner and as
    earning its allocable share of the gross income of the
    partnership for purposes of the applicable REIT qualification
    tests. Thus, our proportionate share of the assets, liabilities
    and items of income of any partnership (or limited liability
    company treated as a partnership) in which we have acquired or
    will acquire an interest, directly or indirectly, are treated as
    our assets and gross income for purposes of applying the various
    REIT qualification 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">
    <I>Ownership Tests.</I>&#160;&#160;More specifically, the
    ownership requirements that we must satisfy as a REIT are that
    (a)&#160;during the last half of each taxable year not more than
    50% of our outstanding shares may be owned, directly or
    indirectly, by five or fewer individuals and (b)&#160;there must
    be at least 100 stockholders on at least 335&#160;days of such
    <FONT style="white-space: nowrap">12-month</FONT>
    taxable year (or a proportionate number of days of a short
    taxable year). In order to meet these requirements, or to
    otherwise obtain, maintain or reestablish REIT status, and for
    no other purpose, our articles of incorporation empower our
    Board of Directors to redeem, at its option, a sufficient number
    of shares or to restrict the transfer thereof to bring or to
    maintain the ownership of our shares in conformity with the
    requirements of the Code. The redemption price to be paid will
    be fair market value as reflected in the latest quotations, or,
    if no quotations are available, the net asset value of the
    shares as 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under our articles of incorporation, each holder of our capital
    stock is required, upon demand, to disclose to our Board of
    Directors in writing such information with respect to direct and
    indirect ownership of our shares as the Board of Directors deems
    necessary to comply with provisions of the Code applicable to
    us, or to comply with the requirements of any other appropriate
    taxing authority. Certain Treasury regulations govern the method
    by which we are required to demonstrate compliance with these
    stock ownership requirements and the failure to satisfy such
    regulations could subject us to substantial penalties. We have
    represented that we have met, and expect to meet, these stock
    ownership requirements for each taxable year.
</DIV>

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

<DIV align="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>Asset Tests.</I>&#160;&#160;At the end of each quarter of our
    taxable year, at least 75% of the value of our total assets must
    consist of &#147;real estate assets,&#148; cash and cash items
    (including receivables) and government securities (the &#147;75%
    asset test&#148;). The term &#147;real estate assets&#148;
    includes real property, interests in real property, leaseholds
    of land or improvements thereon, shares in other REITs, and any
    property attributable to the temporary investment of new capital
    (but only if such property is stock or a debt instrument and
    only for the one-year period beginning on the date we receive
    such capital). The balance of our assets generally may be
    invested without restriction, except that holdings of securities
    not within the 75% class of assets generally must not, with
    respect to any issuer except a TRS, exceed 5% of the value of
    our assets (the &#147;5% asset test&#148;) or 10% of the voting
    power or value of the issuer&#146;s outstanding securities (the
    &#147;10% asset tests&#148;), and our combined securities
    holdings in TRSs cannot exceed 20% of our total assets. For
    purposes of the 10% asset test that relates to value, the
    following are not treated as securities: (i)&#160;loans to
    individuals and estates, (ii)&#160;securities issued by REITs,
    (iii)&#160;accrued obligations to pay rent; (iv)&#160;certain
    debt meeting the definition of &#147;straight debt&#148; if
    neither we nor a TRS that we control hold more than a de minimis
    amount of the issuer&#146;s securities that do not qualify as
    &#147;straight debt,&#148; and (v)&#160;debt issued by a
    partnership if the partnership meets the 75% gross income test
    (described below) with respect to its own gross income. We have
</DIV>

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    <BR>
    27
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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">
    represented that at the end of each quarter we have met, and
    expect in the future to continue to meet, all of these asset
    tests.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Should we fail to satisfy the 5% asset test or the 10% asset
    tests for any quarter of a taxable year, we nevertheless may
    qualify as a REIT for such year if (i)&#160;the failure is due
    to the ownership of assets that do not exceed the lesser of 1%
    of our total assets or $10&#160;million, and (ii)&#160;the
    failure is corrected or we otherwise return to compliance with
    the tests within 6&#160;months following the quarter in which it
    was discovered. In addition, should we fail to satisfy any of
    the asset tests other than failures addressed in the preceding
    sentence, we nevertheless may qualify as a REIT for such year if
    (i)&#160;the failure is due to reasonable cause and not due to
    willful neglect, (ii)&#160;we file a schedule with a description
    of each asset causing the failure in accordance with regulations
    prescribed by the Treasury, (iii)&#160;the failure is corrected
    or we otherwise return to compliance with the asset tests within
    6&#160;months following the quarter in which it was discovered,
    and (iv)&#160;we pay a tax consisting of the greater of $50,000
    or a tax computed at the highest corporate rate on the amount of
    net income generated by the assets causing the failure from the
    date of failure until the assets are disposed of or we otherwise
    return to compliance with the asset tests. We may not qualify
    for the relief provisions in all 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">
    <I>Income Tests.</I>&#160;&#160;We currently must meet two
    separate tests with respect to our sources of income for each
    taxable year. In general, at least 75% of our gross income
    (excluding income from prohibited transactions) for each taxable
    year must be from rents from real property, interest on
    obligations secured by mortgages on real property, gains from
    the sale or other disposition of real property and certain other
    sources (the &#147;75% gross income test&#148;). In addition, we
    must derive at least 95% of our gross income (excluding income
    from prohibited transactions and from certain real estate
    liability hedges) for each taxable year from any combination of
    the items of income which qualify under the 75% gross income
    test, from dividends and interest and from gains from the sale,
    exchange or other disposition of certain stocks and securities
    (the &#147;95% gross income test&#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">
    Rents received by us will qualify as &#147;rents from real
    property&#148; in satisfying the gross income requirements
    described above only if several conditions are met. First, the
    amount of rent must not be based in whole or in part on the
    income or profits of any person. However, an amount received or
    accrued generally will not be excluded from the term &#147;rents
    from real property&#148; solely by reason of being based on a
    fixed percentage or percentages of receipts of sales. Our leases
    provide for either fixed rent, sometimes with scheduled
    escalations, or a fixed minimum rent and a percentage of gross
    receipts in excess of some threshold. Second, the Code provides
    that rents received from a tenant will not qualify as
    &#147;rents from real property&#148; in satisfying the gross
    income tests if we, or an owner of 10% or more of our aggregate
    capital stock, directly or constructively own 10% or more of
    such tenant (referred to as a &#147;related party tenant&#148;).
    Third, if rent attributable to personal property, leased in
    connection with a lease of real property, is greater than 15% of
    the total rent received under the lease, then the portion of
    rent attributable to such personal property will not qualify as
    &#147;rents from real property.&#148; We anticipate that none of
    our gross annual income will be considered attributable to rents
    that are based in whole or in part on the income or profits of
    any person, and that no more than a de minimis amount of our
    gross annual income will be considered attributable to the
    rental of personal property or be derived from related party
    tenants. Finally, for rents received to qualify as &#147;rents
    from real property,&#148; we generally must not operate or
    manage the property or furnish or render services to tenants,
    other than through an &#147;independent contractor&#148; from
    whom we derive no revenue or a TRS. The &#147;independent
    contractor&#148; or TRS requirement, however, does not apply to
    the extent the services provided by us are &#147;usually or
    customarily rendered&#148; in connection with the rental of
    space for occupancy only and are not otherwise considered
    &#147;rendered to the occupant.&#148; In addition, we are
    currently permitted to earn up to one percent of our gross
    income from tenants, determined on a
    <FONT style="white-space: nowrap">property-by-property</FONT>
    basis, by furnishing services that are noncustomary or provided
    directly to the tenants, without causing the rental income to
    fail to quality as rents from real property. We will provide
    certain services with respect to our properties. We do not
    anticipate that any of these services will be (a)&#160;of a type
    other than those usually or customarily rendered in connection
    with the rental space for occupancy only or (b)&#160;of a type
    considered rendered to any of the occupants of our properties.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Should we fail to satisfy either or both of the 75% or 95% gross
    income tests for any taxable year, we may still qualify as a
    REIT 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">
    such failure is due to reasonable cause and not willful
    neglect;&#160;and
</TD>
</TR>

</TABLE>

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    <BR>
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<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">
    we file a description of each item of our income on a schedule
    for such year in accordance with regulations prescribed by the
    Treasury.
</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">
    However, even if these two requirements were met and we were not
    disqualified, a penalty tax of 100% would be imposed by
    reference to the amount by which we failed the 75% or 95% gross
    income test (whichever amount is greater), multiplied by a
    fraction intended to reflect our profitability.
</DIV>

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

<DIV align="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>Treatment of Structured Finance
    Loans.</I>&#160;&#160;Structured finance loans that we originate
    generally will not be secured by a direct interest in real
    property, but by ownership interests in an entity owning real
    property. In Revenue Procedure
    <FONT style="white-space: nowrap">2003-65,</FONT> the
    IRS established a safe harbor under which interest from loans
    secured by a first priority security interest in ownership
    interests in a partnership or limited liability company owning
    real property will be treated as qualifying income for both the
    75% and 95% gross income tests, and such loans will be treated
    as qualifying &#147;real estate assets&#148; for purposes of the
    75% asset test, provided several requirements are satisfied. If
    a structured finance loan does not qualify for the Revenue
    Procedure
    <FONT style="white-space: nowrap">2003-65</FONT> safe
    harbor, the interest income from the loan will be qualifying
    income for purposes of the 95% gross income test, but may not be
    qualifying income for purposes of the 75% gross income test. In
    addition, if the structured finance loan is not a real estate
    asset and does not qualify as &#147;straight debt&#148; or as
    one of certain other disregarded instruments, we will be subject
    to the 10% asset test relating to value with respect to such
    loan. We believe that our structured finance loans generally
    either qualify for the Revenue Procedure
    <FONT style="white-space: nowrap">2003-65</FONT> safe
    harbor or are treated as &#147;real estate assets&#148; that
    generate qualifying income under both the 75% and 95% gross
    income tests and are qualifying assets for purposes of the asset
    tests.
</DIV>

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

<DIV align="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>Tax on Prohibited Transactions.</I>&#160;&#160;A REIT will
    incur a 100% tax on net income derived from any &#147;prohibited
    transaction.&#148; A &#147;prohibited transaction&#148;
    generally is a sale or other disposition of property (other than
    foreclosure property) that the REIT holds primarily for sale to
    customers in the ordinary course of a trade or business. We
    believe that none of our assets are held for sale to customers
    and that a sale of any such asset would not be in the ordinary
    course of our business. Whether a REIT holds an asset
    &#147;primarily for sale to customers in the ordinary course of
    a trade or business&#148; depends, however, on the facts and
    circumstances in effect from time to time, including those
    related to a particular asset. Nevertheless, we will attempt to
    comply with the terms of safe-harbor provisions in the Code
    prescribing when an asset sale will not be characterized as a
    prohibited transaction. We may fail to comply with such
    safe-harbor provisions or may own property that could be
    characterized as property held &#147;primarily for sale to
    customers in the ordinary course of a trade or business.&#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">
    <I>Tax and Deduction Limits on Certain Transactions with Taxable
    REIT Subsidiaries.</I>&#160;&#160;A REIT will incur a 100% tax
    on certain transactions between a REIT and a TRS to the extent
    the transactions are not on an arms-length basis. In addition,
    under certain circumstances the interest paid by a TRS may not
    be deductible by the TRS. We believe that none of the
    transactions we have had with our TRSs will give rise to the
    100% tax and that none of our TRSs will be subject to the
    interest deduction limits.
</DIV>

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

<DIV align="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>Distribution Requirements.</I>&#160;&#160;We must distribute
    annually to our stockholders ordinary income dividends in an
    amount equal to at least:
</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">
    90% of the sum of (i)&#160;our &#147;real estate investment
    trust taxable income&#148; (before deduction of dividends paid
    and excluding any net capital gains) and (ii)&#160;the excess of
    net income from foreclosure property over the tax on such
    income, minus
</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">
    certain excess non-cash income.
</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">
    Real estate investment trust taxable income generally is our
    taxable income computed as if we were an ordinary corporation,
    with certain adjustments. Distributions must be made in the
    taxable year to which they relate or, if declared before the
    timely filing of our tax return for such year and paid not later
    than the first regular dividend payment after such declaration,
    in the following taxable year. To the extent that we do not
    distribute all of our net capital gain or distribute at least
    90%, but less than 100%, of our real estate investment trust
    taxable income, as adjusted, we will be subject to tax thereon
    at regular ordinary and capital gain corporate tax rates.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Furthermore, if we should fail to distribute during each
    calendar year at least the sum 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="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">
    85% of our ordinary income,
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    29
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</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">
    95% of our net capital gain net income for such year&#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">
    any undistributed taxable income from prior periods,
</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 would be subject to a 4% excise tax on the excess of such
    required distribution over the amounts actually distributed.
</DIV>

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

<DIV align="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 represented that we have made and intend to make
    distributions to stockholders that will be sufficient to meet
    the annual distribution requirements. Under some circumstances,
    however, it is possible that we may not have sufficient funds
    from our operations to pay cash dividends to satisfy these
    distribution requirements. If the cash available to us is
    insufficient, we might raise cash in order to make the
    distributions by borrowing funds, issuing new securities or
    selling assets. If we ultimately were unable to satisfy the 90%
    distribution requirement, we would (subject to certain relief
    provisions) fail to qualify as a REIT and, as a result, would be
    subject to federal income tax as an ordinary corporation without
    any deduction or adjustment for distributions to holders of
    common stock or 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 we were to fail to meet the 90% distribution requirement as a
    result of an adjustment to our tax returns, we could maintain
    our qualification as a REIT by paying a &#147;deficiency
    dividend&#148; (plus a penalty and interest) within a specified
    period which will be permitted as a deduction in the taxable
    year with respect to which the adjustment is made.
</DIV>

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

<DIV align="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>Relief from Certain Other Failures of the REIT Qualification
    Provisions.</I>&#160;&#160;Should we fail to satisfy one or more
    of the requirements for REIT qualification (other than the
    income tests or the asset tests), we nevertheless may avoid
    termination of our REIT election in such year if the failure is
    due to reasonable cause and not due to willful neglect and we
    pay a penalty of $50,000 for each failure to satisfy the REIT
    qualification requirements. We may not qualify for this relief
    provision in all circumstances.
</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">Taxation
    of Stockholders</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>Taxation of Taxable U.S.&#160;Stockholders.</I>&#160;&#160;As
    used herein, the term &#147;taxable U.S.&#160;stockholder&#148;
    means a taxable holder of our common or preferred stock that for
    U.S.&#160;federal income tax purposes is:
</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 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, partnership, or other entity created or organized
    in or under the laws of the United States, any of its states 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 whose income 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">
    any trust with respect to which (A)&#160;a U.S.&#160;court is
    able to exercise primary supervision over the administration of
    such trust and (B)&#160;one or more U.S.&#160;persons have the
    authority to control all substantial decisions of the trust.
    Notwithstanding the preceding sentence, to the extent provided
    in the Treasury Regulations, some trusts in existence on
    August&#160;20, 1996, and treated as United States persons prior
    to this date that elect to continue to be treated as United
    States persons, shall be considered taxable
    U.S.&#160;stockholders.
</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">
    If a partnership, including an entity that is treated as a
    partnership for U.S.&#160;federal income tax purposes, is a
    beneficial owner of our stock, the treatment of a partner in the
    partnership will generally depend on the status of the partner
    and the activities of the partnership.
</DIV>

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

<DIV align="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 U.S.&#160;federal income tax purposes, holders of depositary
    share receipts will be treated as if they held the equivalent
    fraction of the underlying preferred shares. Accordingly, the
    discussion below of the consequences of holding our preferred
    shares applies equally to holders of our depositary receipts.
</DIV>

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

<DIV align="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 any taxable year in which we qualify as a REIT for federal
    income tax purposes, our distributions to our taxable
    U.S.&#160;stockholders generally will be taxed as ordinary
    income. Amounts received by such taxable U.S.&#160;stockholders
    that we have properly designated as capital gain dividends
    generally will be taxed as long-term capital gain (to the extent
    that they do not exceed our actual net capital gain for the
    taxable year) without regard to the period for which the taxable
    U.S.&#160;stockholder has held his common stock or preferred
    stock. However, corporate taxable U.S.&#160;stockholders may be
    required to treat up to 20% of certain capital gain dividends as
    ordinary
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    30
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</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">
    income. Such ordinary income and capital gain are not eligible
    for the dividends received deduction allowed to corporations.
    Distributions to taxable U.S.&#160;stockholders in excess of our
    current or accumulated earnings and profits will be considered
    first a tax-free return of capital, reducing the tax basis of
    each stockholder&#146;s common stock or preferred stock and
    then, to the extent the distribution exceeds each
    stockholder&#146;s basis, a gain realized from the sale of
    common stock or preferred stock. We will notify each taxable
    U.S.&#160;stockholder as to the portions of each distribution
    which, in our judgment, constitute ordinary income, capital gain
    or return of capital. Any dividend that is (a)&#160;declared by
    us in October, November or December of any calendar year and
    payable to stockholders of record on a specified date in such
    months and (b)&#160;actually paid by us in January of the
    following year, shall be deemed to have been both paid by us and
    received by the stockholders on December&#160;31 of such
    calendar year and, as a result, will be includable in gross
    income of the stockholders for the taxable year which includes
    such December&#160;31.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Taxable U.S.&#160;stockholders may not deduct on their income
    tax returns any net operating or net capital losses we may have.
    We may carry forward net operating losses for 20&#160;years and
    may use such losses to reduce taxable income and the amounts
    that we will be required to distribute in order to remain
    qualified as a REIT. We may carry forward net capital losses for
    five years and we may use such losses to reduce capital gains.
    Losses not used within the relevant period expire.
</DIV>

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

<DIV align="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 the sale or other disposition of our common stock or
    preferred stock, a taxable U.S.&#160;stockholder generally will
    recognize capital gain or loss equal to the difference between
    the amount realized on the sale or other disposition and the
    adjusted basis of the shares involved in the transaction. Such
    gain or loss will be long-term capital gain or loss if, at the
    time of sale or other disposition, the shares involved have been
    held for more than one year. In addition, if a taxable
    U.S.&#160;stockholder receives a capital gain dividend with
    respect to a share of common stock or preferred stock which he
    has held for six months or less at the time of sale or other
    disposition, any loss recognized by the stockholder will be
    treated as long-term capital loss to the extent of the amount of
    the capital gain dividend that was treated as long-term capital
    gain.
</DIV>

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

<DIV align="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 from us and gain from the disposition of common
    stock or preferred stock will not be treated as passive activity
    income and, therefore, taxable U.S.&#160;stockholders will not
    be able to apply any passive activity losses against such
    income. Dividends from us (to the extent they do not constitute
    a return of capital or capital gain dividends) and, on an
    elective basis, capital gain dividends and gain from the
    disposition of common stock or preferred stock generally will be
    treated as investment income for purposes of the investment
    income limitation.
</DIV>

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

<DIV align="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 state and local income tax treatment of us and our taxable
    U.S.&#160;stockholders may not conform to the federal income tax
    treatment described above. (For example, in most states,
    individual stockholders who are residents of the state will be
    subject to state income tax on dividends and gains on their
    shares in us, but the state of Delaware&#160;&#151; unlike most,
    if not all, other states&#160;&#151; also taxes nonresident
    stockholders of a REIT on dividends and gains from the REIT to
    the extent, if any, that such income is attributable to property
    located in Delaware.) As a result, investors should consult
    their own tax advisors for an explanation of how other state and
    local tax laws would affect their investment in common stock or
    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">
    <I>Redemption of Preferred Stock for Cash.</I>&#160;&#160;The
    treatment accorded to any redemption by us for cash (as
    distinguished from a sale, exchange or other disposition) of
    preferred stock can only be determined on the basis of
    particular facts as to each holder at the time of redemption. As
    stated above, in general a holder of preferred stock will
    recognize capital gain or loss measured by the difference
    between the amount received by the holder of preferred stock
    upon the redemption and such holder&#146;s adjusted tax basis in
    the preferred stock redeemed (provided the preferred stock is
    held as a capital asset) if such redemption (i)&#160;results in
    a &#147;complete termination&#148; of the holder&#146;s interest
    in all classes of our stock under Section&#160;302(b)(3) of the
    Code, (ii)&#160;is &#147;substantially disproportionate&#148;
    with respect to the holder&#146;s interest in our stock under
    Section&#160;302(b)(2) of the Code (which will not be the case
    if only preferred stock is redeemed, since they generally do not
    have voting rights), or (iii)&#160;is &#147;not essentially
    equivalent to a dividend&#148; with respect to the holder of
    preferred stock under Section&#160;302(b)(1) of the Code. In
    applying these tests, there must be taken into account not only
    the preferred stock owned by the holder, but also such
    holder&#146;s ownership of our common stock and any other
    options (including stock purchase rights) to acquire any of the
    foregoing. The holder of preferred stock also must take into
    account any such securities (including options) which are
    considered to be owned by such holder by reason of the
    constructive ownership rules set forth in Sections&#160;318 and
    302(c) of the Code.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    31
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</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 particular holder of preferred stock owns (actually or
    constructively) none of our common stock or an insubstantial
    percentage of our outstanding common stock, then based upon
    current law, it is probable that the redemption of preferred
    stock from such a holder would be considered &#147;not
    essentially equivalent to a dividend.&#148; However, whether a
    dividend is &#147;not essentially equivalent to a dividend&#148;
    depends on all of the facts and circumstances, and a holder of
    preferred stock intending to rely on any of these tests at the
    time of redemption should consult the holder&#146;s own tax
    advisor to determine their application to the holder&#146;s
    particular situation. If the redemption does not meet any of the
    tests under Section&#160;302 of the Code, then the redemption
    proceeds received from the preferred stock will be treated as a
    distribution on the preferred stock. If the redemption is taxed
    as a dividend, the holder&#146;s adjusted tax basis in the
    preferred stock will be transferred to any other shares held by
    the holder. If the holder of preferred stock owns none of our
    other stock, under certain circumstances, such basis may be
    transferred to a related person, or it may be lost entirely.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Proposed Treasury Regulations would, if adopted, alter the
    method for recovering a holder&#146;s adjusted tax basis in any
    of our stock redeemed in a dividend equivalent redemption. Under
    the Proposed Treasury Regulations, a holder would be treated as
    realizing a capital loss on the date of the dividend equivalent
    redemption equal to the adjusted tax basis of the stock
    redeemed, subject to adjustments. The recognition of such loss
    would generally be deferred until the occurrence of specified
    events, such as, for example, the holder&#146;s ceasing to
    actually or constructively own any stock. There can be no
    assurance that the Proposed Treasury Regulations will be
    adopted, or that they will be adopted in their current form.
</DIV>

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

<DIV align="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>Redemption or Conversion of Preferred Stock to Common
    Stock.</I>&#160;&#160;Assuming that preferred stock will not be
    redeemed or converted at a time when there are distributions in
    arrears, in general, no gain or loss will be recognized for
    federal income tax purposes upon the redemption or conversion of
    our preferred stock at the option of the holder solely into
    common stock. The basis that a holder will have for tax purposes
    in the common stock received will be equal to the adjusted basis
    the holder had in the preferred stock so redeemed or converted
    and, provided that the preferred stock was held as a capital
    asset, the holding period for the common stock received will
    include the holding period for the preferred stock redeemed or
    converted. A holder, however, will generally recognize gain or
    loss on the receipt of cash in lieu of a fractional share of
    common stock in an amount equal to the difference between the
    amount of cash received and the holder&#146;s adjusted basis in
    such fractional share.
</DIV>

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

<DIV align="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 redemption or conversion occurs when there is a dividend
    arrearage on the preferred stock and the fair market value of
    the common stock exceeds the issue price of the preferred stock,
    a portion of the common stock received might be treated as a
    dividend distribution taxable as ordinary 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">
    <I>Adjustments to Conversion Price.</I>&#160;&#160;Under
    Section&#160;305 of the Code, holders of preferred stock may be
    deemed to have received a constructive distribution of stock
    that is taxable as a dividend where the conversion ratio is
    adjusted to reflect a cash or property distribution with respect
    to the common stock into which it is convertible. An adjustment
    to the conversion price made pursuant to a bona fide, reasonable
    adjustment formula that has the effect of preventing dilution of
    the interest of the holders, however, will generally not be
    considered to result in a constructive distribution of stock.
    Certain of the possible adjustments provided in the preferred
    stock may not qualify as being pursuant to a bona fide,
    reasonable adjustment formula. If a nonqualifying adjustment
    were made, the holders of preferred stock might be deemed to
    have received a taxable stock dividend.
</DIV>

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

<DIV align="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>Current Tax Rates.</I>&#160;&#160;The maximum tax rate on the
    long-term capital gains of domestic non-corporate taxpayers is
    15% for taxable years beginning on or before December&#160;31,
    2008. The tax rate on &#147;qualified dividend income&#148; is
    the same as the maximum capital gains rate, and is substantially
    lower than the maximum rate on ordinary income. Because, as a
    REIT, we are not generally subject to tax on the portion of our
    REIT taxable income or capital gains distributed to our
    stockholders, our distributions are not generally eligible for
    the tax rate on qualified dividend income. As a result, our
    ordinary REIT distributions are taxed at the higher tax rates
    applicable to ordinary income. However, the 15% rate does
    generally apply to:
</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 U.S.&#160;stockholder&#146;s long-term capital gain, if any,
    recognized on the disposition of our 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>    &#149;&#160;
</TD>
    <TD align="left">
    distributions we designate as long-term capital gain dividends
    (except to the extent attributable to Section&#160;1250
    property, in which case the 25% tax rate applies);
</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">
    distributions attributable to dividends we receive from non-REIT
    corporations, including our TRSs; and
</TD>
</TR>

</TABLE>

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    32
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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>    &#149;&#160;
</TD>
    <TD align="left">
    distributions to the extent attributable to income upon which we
    have paid corporate tax (for example, the tax we would pay if we
    distributed less than all of our taxable REIT income).
</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">
    Without legislation, the maximum tax rate on long-term capital
    gains will increase to 20% in 2009, and qualified dividend
    income will no longer be taxed at a preferential rate compared
    to ordinary 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">
    <I>Backup Withholding.</I>&#160;&#160;We will report to our
    stockholders and the Internal Revenue Service the amount of
    distributions paid during each calendar year, and the amount of
    tax withheld, if any. Under the backup withholding rules, a
    taxable U.S.&#160;stockholder may be subject to backup
    withholding at a rate of 28% with respect to distributions paid
    unless such holder (i)&#160;is a corporation or comes within
    certain other exempt categories and, when required, demonstrates
    this fact, or (ii)&#160;provides a taxpayer identification
    number, certifies as to no loss of exemption from backup
    withholding and otherwise complies with applicable requirements
    of the backup withholding rules. A taxable U.S.&#160;stockholder
    that does not provide us with his correct taxpayer
    identification number also may be subject to penalties imposed
    by the Internal Revenue Service. Any amount paid as backup
    withholding will be creditable against the taxable
    U.S.&#160;stockholder&#146;s income tax liability. In addition,
    we may be required to withhold a portion of capital gain
    distributions to any taxable U.S.&#160;stockholders who fail to
    certify their non-foreign status 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">
    <I>Taxation of Tax-Exempt
    Stockholders.</I>&#160;&#160;Distributions by us to a
    stockholder that is a tax-exempt entity generally will not
    constitute &#147;unrelated business taxable income&#148;
    (&#147;UBTI&#148;) as defined in Section&#160;512(a) of the
    Code, provided that the tax-exempt entity has not financed the
    acquisition of its shares with &#147;acquisition
    indebtedness&#148; within the meaning of the Code and the shares
    are not otherwise used in an unrelated trade or business of the
    tax-exempt entity. However, qualified trusts that hold more than
    10% (by value) of the shares of certain REITs may be required to
    treat a certain percentage of the distributions of such REITs as
    UBTI. The conditions which trigger this requirement do not
    currently exist, and we do not anticipate that they will ever
    exist. This requirement will apply only if (a)&#160;we would not
    qualify as a REIT for federal income tax purposes but for the
    application of a &#147;look-through&#148; exception to the five
    or fewer requirement applicable to shares being held by
    qualified trusts and (b)&#160;we are &#147;predominantly
    held&#148; by qualified trusts. A REIT is predominantly held if
    either (i)&#160;a single qualified trust holds more than 25% by
    value of the REIT interests or (ii)&#160;one or more qualified
    trusts, each owning more than 10% by value of the REIT
    interests, hold in the aggregate more than 50% of the REIT
    interests. The percentage of any REIT dividend treated as UBTI
    is equal to the ratio of (i)&#160;the UBTI earned by the REIT
    (treating the REIT as if it were a qualified trust and therefore
    subject to tax on UBTI) to (ii)&#160;the total gross income
    (less certain associated expenses of the REIT). A de minimis
    exception applies where the ratio set forth in the preceding
    sentence is less than 5% for any year. For these purposes, a
    qualified trust is any trust described in Section&#160;401(a) of
    the Code and exempt from tax under Section&#160;501(a) of the
    Code. The provisions requiring qualified trusts to treat a
    portion of REIT distributions as UBTI will not apply if we are
    able to satisfy the five or fewer requirements without relying
    upon the &#147;look-through&#148; exception. The existing
    restrictions on ownership of shares in our articles of
    incorporation will prevent the application of the provisions
    treating a portion of the REIT distributions as UBTI to
    tax-exempt entities purchasing shares pursuant to the offering,
    absent a waiver of the restrictions 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Taxation of
    <FONT style="white-space: nowrap">Non-U.S.&#160;Stockholders.</FONT></I>&#160;&#160;The
    rules governing United States federal income taxation of
    <FONT style="white-space: nowrap">&#147;non-U.S.&#160;stockholders&#148;</FONT>
    (taxable beneficial owners of our stock that are not taxable
    U.S.&#160;stockholders) are complex, and no attempt will be made
    herein to provide more than a summary of such rules. The
    following discussion assumes that the income from investment in
    the capital stock will not be effectively connected with the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder&#146;s</FONT>
    conduct of a United States trade or business. Prospective
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholders</FONT>
    should consult with their own tax advisors to determine the
    impact of federal, state and local laws with regard to an
    investment in our capital stock, including any reporting
    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">
    Distributions that are not attributable to gain from sales or
    exchanges by us of United States real property interests and not
    designated by us as capital gain dividends will be treated as
    dividends of ordinary income to the extent that they are made
    out of our current and accumulated earnings and profits. Such
    dividends ordinarily will be subject to a withholding tax equal
    to 30% of the gross amount of the dividend, unless an applicable
    tax treaty reduces or eliminates that tax. A number of
    U.S.&#160;tax treaties that reduce the rate of withholding tax
    on corporate dividends do not reduce, or reduce to a lesser
    extent, the rate of withholding applied to dividends from a
    REIT. We expect to withhold U.S.&#160;income tax at the rate of
    30% on the gross amount of any such distributions paid to a
</DIV>

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    <BR>
    33
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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">
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    unless (i)&#160;a lower treaty rate applies and the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    files IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    with us and, if the capital stock is not traded on an
    established securities market, acquires a taxpayer
    identification number from the Internal Revenue Service or
    (ii)&#160;the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    files IRS
    <FONT style="white-space: nowrap">Form&#160;W-8ECI</FONT>
    with us claiming that the distribution is effectively connected
    income. Distributions in excess of our current and accumulated
    earnings and profits will not be taxable to a stockholder to the
    extent that such distributions do not exceed the adjusted basis
    of the stockholder&#146;s shares, but rather will reduce the
    adjusted basis of such shares. To the extent that distributions
    in excess of current and accumulated earnings and profits exceed
    the adjusted basis of a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder&#146;s</FONT>
    shares, such distributions will give rise to tax liability if
    the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    would otherwise be subject to tax on any gain from the sale or
    disposition of the shares, as described below. If it cannot be
    determined at the time a distribution is paid whether or not
    such distribution will be in excess of current and accumulated
    earnings and profits, the distribution will be subject to
    withholding at the rate of 30%. However, a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    may seek a refund of such amounts from the Internal Revenue
    Service if it is subsequently determined that such distribution
    was, in fact, in excess of our current and accumulated earnings
    and profits. We are permitted, but not required, to make
    reasonable estimates of the extent to which distributions exceed
    current or accumulated earnings and profits. Such distributions
    will generally be subject to a 10% withholding tax, which may be
    refunded to the extent it exceeds the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder&#146;s</FONT>
    actual U.S.&#160;tax liability, provided the required
    information is furnished to the Internal Revenue Service.
</DIV>

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

<DIV align="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 any year in which we qualify as a REIT, distributions that
    are attributable to gain from sales or exchanges by us of United
    States real property interests will be taxable to a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    as dividends of ordinary income not effectively connected to a
    U.S.&#160;trade or business, as described above, provided the
    class of stock the distributions relate to is &#147;regularly
    traded&#148; on an established securities market in the United
    States, and the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    does not own more than 5% of such class of stock at any time
    during the one-year period ending on the date of the
    distribution. Should these requirements not be met, however,
    such distributions are taxable to a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    under certain provisions of the Foreign Investment in Real
    Property Tax Act of 1980, as amended (&#147;FIRPTA&#148;). These
    FIRPTA provisions tax such distributions to a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    as if such gain were effectively connected with a United States
    business.
    <FONT style="white-space: nowrap">Non-U.S.&#160;stockholders</FONT>
    would thus be taxed at the normal capital gain rates applicable
    to taxable U.S.&#160;stockholders (subject to applicable
    alternative minimum tax and a special alternative minimum tax in
    the case of nonresident alien individuals). Also, distributions
    subject to these FIRPTA provisions may be subject to a 30%
    branch profits tax in the hands of a corporate
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    not entitled to treaty exemption or rate reduction. We are
    required by applicable Treasury Regulations to withhold 35% of
    any such distribution that could be designated by us as a
    capital gain dividend. This amount is creditable against the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder&#146;s</FONT>
    FIRPTA tax liability.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Gain recognized by a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    upon a sale of shares generally will not be taxed under FIRPTA
    if we are a &#147;domestically controlled REIT,&#148; defined
    generally as a REIT in which at all times during a specified
    testing period less than 50% in value of the stock was held
    directly or indirectly by foreign persons. We currently believe
    that we are, and expect to continue to be, a &#147;domestically
    controlled REIT,&#148; and in such case the sale of shares would
    not be subject to taxation under FIRPTA. However, gain not
    subject to FIRPTA nonetheless will be taxable to a
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    if (i)&#160;investment in the shares is treated as
    &#147;effectively connected&#148; with the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholders&#146;</FONT>
    U.S.&#160;trade or business, or (ii)&#160;the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    is a nonresident alien individual who was present in the United
    States for 183&#160;days or more during the taxable year and
    certain other conditions are met. Effectively connected gain
    realized by a corporate
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    may be subject to an additional 30% branch profits tax, subject
    to possible exemption or rate reduction under an applicable tax
    treaty. If the gain on the sale of shares were to be subject to
    taxation under FIRPTA, the
    <FONT style="white-space: nowrap">non-U.S.&#160;stockholder</FONT>
    would be subject to the same treatment as taxable
    U.S.&#160;stockholders with respect to such gain (subject to
    applicable alternative minimum tax and a special alternative
    minimum tax in the case of nonresident alien individuals), and
    the purchaser of the shares would be required to withhold and
    remit to the Internal Revenue Service 10% of the purchase price.
</DIV>


<!-- link1 "PLAN OF DISTRIBUTION" -->


<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='120'></A><B><FONT style="font-family: 'Times New Roman', Times">PLAN
    OF 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">
    We may sell our securities to one or more underwriters for
    public offering and sale by them or may sell the offered
    securities to investors directly or through agents. Any such
    underwriter or agent involved in the offer and sale of the
    offered securities will be named in the applicable prospectus
    supplement.
</DIV>

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    <BR>
    34
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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">
    Underwriters may offer and sell our securities at a fixed price
    or prices, which may be changed, related to the prevailing
    market prices at the time of sale, or at negotiated prices. We
    also may, from time to time, authorize underwriters acting as
    our agents to offer and sell our securities upon the terms and
    conditions set forth in an applicable prospectus supplement. In
    connection with the sale of our securities, underwriters may be
    deemed to have received compensation from us in the form of
    underwriting discounts or commissions and may also receive
    commissions from purchasers of our securities for whom they may
    act as agent. Underwriters may sell our securities to or through
    dealers, and such dealers may receive compensation in the form
    of discounts, concessions from the underwriters or commissions
    from the purchasers for whom they may act as 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">
    Any underwriting compensation we pay to underwriters or agents
    in connection with the offering of our securities and any
    discounts, concessions or commissions allowed by underwriters to
    participating dealers will be set forth in the applicable
    prospectus supplement. Underwriters, dealers and agents
    participating in the distribution of the offered securities may
    be deemed to be underwriters, and any discounts and commissions
    received by them and any profit realized by them on resale of
    the our securities may be deemed to be underwriting discounts
    and commissions under the Securities Act of 1933. Underwriters,
    dealers and agents may be entitled, under agreements entered
    into with us, to indemnification against and contribution toward
    certain civil liabilities, including liabilities under the
    Securities Act of 1933.
</DIV>

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

<DIV align="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 so indicated in the applicable prospectus supplement, we will
    authorize dealers acting as our agents to solicit offers by
    certain institutions to purchase our securities from us at the
    public offering price set forth in such prospectus supplement
    pursuant to delayed delivery contracts providing for payment and
    delivery on the date or dates stated in such prospectus
    supplement. Each contract will be for an amount not less than,
    and the aggregate principal amount of securities sold pursuant
    to contracts shall be not less or more than, the respective
    amounts stated in the applicable prospectus supplement.
    Institutions with whom contracts, when authorized, may be made
    include commercial and savings banks, insurance companies,
    pension funds, investment companies, educational and charitable
    institutions, and other institutions, but will in all cases be
    subject to our approval. Contracts will not be subject to any
    conditions except (i)&#160;the purchase by an institution of the
    offered securities covered by its contracts shall not at the
    time of delivery be prohibited under the laws of any
    jurisdiction in the United States to which such institution is
    subject and (ii)&#160;if the offered securities are being sold
    to underwriters, we shall have sold to such underwriters the
    total principal amount of our securities less the principal
    amount thereof covered by contracts.
</DIV>

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

<DIV align="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 affiliates may be
    customers of, engage in transactions with and perform services
    for us and our subsidiaries 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The securities may or may not be listed on a national securities
    exchange or traded in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market. No assurance can be given as to the liquidity of the
    trading market for any such 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 underwriters or dealers are used in the sale, until the
    distribution of the securities is completed, the SEC rules may
    limit the ability of any such underwriters and selling group
    members to bid for and purchase the securities. As an exception
    to these rules, representatives of any underwriters are
    permitted to engage in certain transactions that stabilize the
    price of the securities. Such transactions may consist of bids
    or purchases for the purpose of pegging, fixing or maintaining
    the price of the securities. If the underwriters create a short
    position in the securities in connection with the offerings (in
    other words, if they sell more securities than are set forth on
    the cover page of the prospectus supplement) the representatives
    of the underwriters may reduce that short position by purchasing
    securities in the open market. The representatives of the
    underwriters may also elect to reduce any short position by
    exercising all or part of any over-allotment option described in
    the prospectus supplement. The representatives of the
    underwriters may also impose a penalty bid on certain
    underwriters and selling group members. This means that if the
    representatives purchase securities in the open market to reduce
    the underwriters&#146; short position or to stabilize the price
    of the securities, they may reclaim the amount of the selling
    concession from the underwriters and selling group members who
    sold those shares as part of the offering. In general, purchases
    of a security for the purpose of stabilization or to reduce a
    short position could cause the price of the security to be
    higher than it might be in the absence of such purchases. The
    imposition of a penalty bid might also have an effect on the
    price of the securities to the extent that it discourages
    resales of the securities. We make no representation or
    prediction as to the direction or magnitude of any effect that
    the transactions described above may have on the price of the
    securities. In addition, the
</DIV>

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    <BR>
    35
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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">
    representatives of any underwriters may determine not to engage
    in such transactions or that such transactions, once commenced,
    may be discontinued without notice.
</DIV>


<!-- link1 "LEGAL MATTERS" -->


<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='121'></A><B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    MATTERS</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 our securities will be passed upon for us by
    Pillsbury Winthrop Shaw Pittman LLP, a limited liability
    partnership including professional corporations. In addition,
    the description of federal income tax consequences contained in
    this prospectus under &#147;Federal Income Tax
    Considerations&#148; is, to the extent that it constitutes
    matters of law, summaries of legal matters or legal conclusions,
    the opinion of Pillsbury Winthrop Shaw Pittman LLP.
</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='122'></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 schedules of
    Commercial Net Lease Realty, Inc. as of December&#160;31, 2005
    and 2004, and the related consolidated statements of earnings,
    stockholders&#146; equity and cash flows for each of the years
    in the three-year period ended December&#160;31, 2005 and
    management&#146;s assessment of the effectiveness of internal
    control over financial reporting as of December&#160;31, 2005,
    have been incorporated by reference herein, and in the
    registration statement in reliance upon the reports of KPMG LLP,
    independent registered public accounting firm, incorporated by
    reference herein, and upon the authority of said firm as experts
    in accounting and auditing. Our report with respect to the
    consolidated financial statements refers to the implementation
    of Financial Accounting Standards Board Interpretation
    No.&#160;46, revised December 2003, &#147;Consolidation of
    Variable Interest Entities&#148; (FIN&#160;46R).
</DIV>

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    <BR>
    36
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
</DIV><!-- END PAGE WIDTH -->
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<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=504 length=0 -->

<DIV style="margin-top: 60pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-size: 18pt">$220,000,000</FONT></B>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-size: 18pt">5.125%&#160;Convertible Senior
    Notes due 2028</FONT></B>
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<DIV style="margin-top: 36pt; font-size: 1pt">&nbsp;</DIV>

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

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    <IMG src="w50382b5w5038200.gif" alt="(NATIONAL RETAIL LOGO)"><FONT style="font-size: 18pt">
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 9%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=504 length=48 -->

<DIV style="margin-top: 24pt; 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>PROSPECTUS SUPPLEMENT</B>
</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">
    <B>February&#160;27, 2008</B>
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 9%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=504 length=48 -->

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

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    <B><FONT style="font-size: 20pt">Citi</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: 20pt">Banc of America Securities
    LLC</FONT></B>
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<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: 20pt">Wachovia Securities</FONT></B>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

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