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<SEC-DOCUMENT>0000950123-05-014368.txt : 20051202
<SEC-HEADER>0000950123-05-014368.hdr.sgml : 20051202
<ACCEPTANCE-DATETIME>20051202172246
ACCESSION NUMBER:		0000950123-05-014368
CONFORMED SUBMISSION TYPE:	S-4/A
PUBLIC DOCUMENT COUNT:		17
FILED AS OF DATE:		20051202
DATE AS OF CHANGE:		20051202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERICAN REAL ESTATE PARTNERS L P
		CENTRAL INDEX KEY:			0000813762
		STANDARD INDUSTRIAL CLASSIFICATION:	OPERATORS OF NONRESIDENTIAL BUILDINGS [6512]
		IRS NUMBER:				133398766
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-4/A
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-125986
		FILM NUMBER:		051241802

	BUSINESS ADDRESS:	
		STREET 1:		100 SOUTH BEDFORD ROAD
		CITY:			MT KISCO
		STATE:			NY
		ZIP:			10549
		BUSINESS PHONE:		9142427700

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			American Real Estate Finance Corp.
		CENTRAL INDEX KEY:			0001297337
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-4/A
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-125986-02
		FILM NUMBER:		051241804

	BUSINESS ADDRESS:	
		STREET 1:		100 SOUTH BEDFORD ROAD
		CITY:			MT. KISCO
		STATE:			NY
		ZIP:			10549
		BUSINESS PHONE:		914-242-7700

	MAIL ADDRESS:	
		STREET 1:		100 SOUTH BEDFORD ROAD
		CITY:			MT. KISCO
		STATE:			NY
		ZIP:			10549

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERICAN REAL ESTATE HOLDINGS L P
		CENTRAL INDEX KEY:			0001034563
		STANDARD INDUSTRIAL CLASSIFICATION:	OPERATORS OF NONRESIDENTIAL BUILDINGS [6512]
		IRS NUMBER:				133398767
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-4/A
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-125986-01
		FILM NUMBER:		051241803

	BUSINESS ADDRESS:	
		STREET 1:		100 SOUTH BEDFORD RD
		CITY:			MT KISCO
		STATE:			NY
		ZIP:			10549
		BUSINESS PHONE:		9142419000

	MAIL ADDRESS:	
		STREET 1:		100 SOUTH BEDFORD ROAD
		CITY:			MOUNT KISCO
		STATE:			NY
		ZIP:			10153
</SEC-HEADER>
<DOCUMENT>
<TYPE>S-4/A
<SEQUENCE>1
<FILENAME>y09849a1sv4za.htm
<DESCRIPTION>AMENDMENT #1 TO FORM S-4
<TEXT>
<HTML>
<HEAD>
<TITLE>AMERICAN REAL ESTATE PARTNERS, L.P.</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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

</FONT></DIV>

<DIV align="center" style="font-size: 10pt;">
<B>As filed with the Securities and Exchange Commission on
December 2, 2005</B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="right" style="font-size: 10pt;">
<B>Registration No.&nbsp;333-125986</B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 6pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 2pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>Washington,&nbsp;D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

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

</FONT></DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Amendment No. 1 to Form&nbsp;S-4</B>
</DIV>

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

</FONT></DIV>

<DIV align="center" style="font-size: 12pt;">
<B>REGISTRATION STATEMENT</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>UNDER</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>THE SECURITIES ACT OF 1933</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AMERICAN REAL ESTATE PARTNERS, L.P.</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Exact name of registrant as specified in its charter)</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="34%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B>Delaware</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>6512</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>13-3398766</B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <I>(State or other jurisdiction of<BR>
    incorporation or organization)</I></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I>(Primary Standard Industrial<BR>
    Classification Code Number)</I></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I>(I.R.S. Employer<BR>
    Identification Number)</I></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 18pt;">
<B>AMERICAN REAL ESTATE FINANCE CORP.</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Exact name of registrant as specified in its charter)</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="34%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B>Delaware</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>6512</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>20-1059842</B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <I>(State or other jurisdiction of<BR>
    incorporation or organization)</I></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I>(Primary Standard Industrial<BR>
    Classification Code Number)</I></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I>(I.R.S. Employer<BR>
    Identification Number)</I></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AMERICAN REAL ESTATE HOLDINGS LIMITED PARTNERSHIP</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Exact name of registrant as specified in its charter)</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="34%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B>Delaware</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>6512</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>13-3398767</B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <I>(State or other jurisdiction of<BR>
    incorporation or organization)</I></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I>(Primary Standard Industrial<BR>
    Classification Code Number)</I></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I>(I.R.S. Employer<BR>
    Identification Number)</I></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>100 South Bedford Road</B>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>Mt.&nbsp;Kisco, New&nbsp;York 10549</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Address, including zip code, and telephone number,</I>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>including area code, of registrants&#146; principal executive
offices)</I>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

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

</FONT></DIV>

<DIV align="center" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Jon F. Weber</B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="center" style="font-size: 9pt;">
<B>President and Chief Financial Officer</B>
</DIV>

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

</FONT></DIV>

<DIV align="center" style="font-size: 9pt;">
<B>100 South Bedford Road</B>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>Mt. Kisco, New York 10549</B>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>Telephone: (914)&nbsp;242-7700</B>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>Facsimile: (914)&nbsp;242-9282</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Name, address, including zip code, and telephone number,</I>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>including area code, of agent for service)</I>
</DIV>

<DIV align="center" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Copies to:</I></B>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>Steven L. Wasserman,&nbsp;Esq.</B>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>James T. Seery,&nbsp;Esq.</B>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>DLA Piper Rudnick Gray Cary US LLP</B>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>1251 Avenue of the Americas</B>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>New York, New York 10020</B>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>Telephone: (212)&nbsp;835-6000</B>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>Facsimile: (212)&nbsp;835-6001</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approximate
date of commencement of the proposed sale to the public:</B> As
soon as practicable after the effective date of this
Registration Statement.
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the
securities being registered on this form are being offered in
connection with the formation of a holding company and there is
compliance with General Instruction&nbsp;G, check the following
box.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;
</FONT>
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this form is
filed to register additional securities for an offering pursuant
to Rule&nbsp;462(b) under the Securities Act of 1933, check the
following box and list the Securities Act registration statement
number of the earlier effective registration statement for the
same
offering.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;
</FONT>
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this form is
a post-effective amendment filed pursuant to Rule&nbsp;462(d)
under the Securities Act of 1933, check the following box and
list the Securities Act registration statement number of the
earlier effective registration statement for the same
offering.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;
</FONT>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CALCULATION OF REGISTRATION FEE</B>
</DIV>

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

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="29%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
</TR>


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


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

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Proposed Maximum</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Proposed Maximum</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Title of Each Class of</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Amount to be</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Offering Price</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Aggregate</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Amount of</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Securities to be Registered</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Registered(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Per Unit(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Offering Price(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Registration Fee(2)</B></TD>
</TR>


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

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;Senior
    Notes due 2013</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    $480,000,000</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    100%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    $480,000,000</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    $56,496(4)</TD>
</TR>

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

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Guarantees(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    &#151;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    &#151;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    &#151;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    &#151;</TD>
</TR>

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

</TR>

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

</TR>

</TABLE>
</CENTER>

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

</FONT></DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

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

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Estimated solely for the purpose of calculating the registration
    fee pursuant to Rule&nbsp;457 under the Securities Act of 1933,
    as amended.</TD>
</TR>

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

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Pursuant to Rule&nbsp;457(f)(2) of the Securities Act of 1933,
    as amended, the registration fee has been estimated based on the
    book value of the securities to be received by the registrant in
    exchange for the securities to be issued hereunder in the
    exchange offer described herein.</TD>
</TR>

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

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Pursuant to Rule&nbsp;457(n) under the Securities Act, no
    separate fee is payable with respect to the guarantees.</TD>
</TR>

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

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

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

<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    Previously paid.</TD>
</TR>

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

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

</TABLE>

<DIV align="left" style="font-size: 8pt; margin-top: 4pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The
Registrants hereby amend this Registration Statement on such
date or dates as may be necessary to delay its effective date
until the Registrants shall file a further amendment which
specifically states that this Registration Statement shall
thereafter become effective in accordance with Section&nbsp;8(a)
of the Securities Act of 1933, as amended, or until this
Registration Statement shall become effective on such date as
the Securities and Exchange Commission, acting pursuant to said
Section&nbsp;8(a), may determine.</B>
</DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 4pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>
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<FONT style="font-size: 8pt" color="#E8112D">The information in
this Preliminary Prospectus is not complete and may be changed.
We may not exchange these securities until the Registration
Statement filed with the Securities and Exchange Commission is
effective. This Preliminary Prospectus is not an offer to
exchange these securities and is not soliciting offers to
exchange these securities in any State where the exchange is not
permitted.</FONT><FONT style="font-size: 8pt"> <BR>


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

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

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 1pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><FONT color="#E8112D">SUBJECT TO COMPLETION DATED DECEMBER 2,
2005</FONT></B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PROSPECTUS</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>$480,000,000</B>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AMERICAN REAL ESTATE PARTNERS, L.P.</B>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AMERICAN REAL ESTATE FINANCE CORP.</B>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>OFFER TO EXCHANGE OUR
7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
SENIOR NOTES&nbsp;DUE 2013, WHICH HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, FOR ANY AND ALL OF OUR OUTSTANDING
7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;SENIOR
NOTES&nbsp;DUE 2013</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>MATERIAL TERMS OF THE EXCHANGE OFFER</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The terms of the new notes are substantially identical to the
    outstanding notes, except that the transfer restrictions and
    registration rights relating to the outstanding notes will not
    apply to the new notes and the new notes will not provide for
    the payment of liquidated damages under circumstances related to
    the timing and completion of the exchange offer.</TD>
</TR>

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

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

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

<TR valign="top">
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Expires 5:00&nbsp;p.m., New York City time, on
    January&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2006, unless
    extended.</TD>
</TR>

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

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

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

<TR valign="top">
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We will exchange your validly tendered unregistered notes for an
    equal principal amount of a new series of notes which have been
    registered under the Securities Act of 1933.</TD>
</TR>

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

<TR valign="top">
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The exchange offer is not subject to any condition other than
    that the exchange offer not violate applicable law or any
    applicable interpretation of the staff of the Securities and
    Exchange Commission and other customary conditions.</TD>
</TR>

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

<TR valign="top">
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    You may withdraw your tender of notes at any time before the
    exchange offer expires.</TD>
</TR>

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

<TR valign="top">
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The exchange of notes should not be a taxable exchange for
    U.S.&nbsp;federal income tax purposes.</TD>
</TR>

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

<TR valign="top">
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We will not receive any proceeds from the exchange offer.</TD>
</TR>

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

<TR valign="top">
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The new notes will not be traded on any national securities
    exchange and, therefore, we do not anticipate that an active
    public market in the new notes will develop.</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Please refer to &#147;Risk Factors&#148; beginning on
page&nbsp;10 of this document for certain important
information.</B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of the notes
to be issued in the exchange offer or passed upon the adequacy
or accuracy of this prospectus. Any representation to the
contrary is a criminal offense.</B>
</DIV>

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

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The date of this prospectus is
December&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2005
</DIV>

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

</FONT></DIV>
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<DIV align="left" style="font-size: 10pt;">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>TABLE OF CONTENTS</B>
</DIV>

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

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Page</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#101'>PROSPECTUS</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#102'>RISK FACTORS</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#103'>FORWARD-LOOKING STATEMENTS</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#105'>USE OF PROCEEDS</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#104'>RATIO OF EARNINGS TO FIXED CHARGES</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#106'>THE EXCHANGE OFFER</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#115'>DESCRIPTION OF NOTES</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#116'>CERTAIN U.S.&nbsp;FEDERAL INCOME TAX
    CONSEQUENCES</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>74</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#117'>PLAN OF DISTRIBUTION</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>78</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#118'>LEGAL MATTERS</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>78</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#119'>EXPERTS</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>79</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#120'>WHERE YOU CAN FIND MORE INFORMATION</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>80</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#121'>INCORPORATION OF AREP AND AREH DOCUMENTS BY
    REFERENCE</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>80</TD>
    <TD>&nbsp;</TD>
</TR>

<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y09849a1exv5w1.htm">EX-5.1: OPINION OF DLA PIPER RUDNICK GRAY CARY US LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y09849a1exv12w1.htm">EX-12.1: RATIO OF EARNINGS TO FIXED CHARGES</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y09849a1exv23w1.txt">EX-23.1: CONSENT OF GRANT THORNTON LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y09849a1exv23w2.txt">EX-23.2: CONSENT OF KPMG LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y09849a1exv23w3.txt">EX-23.3: CONSENT OF GRANT THORNTON LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y09849a1exv23w4.txt">EX-23.4: CONSENT OF GRANT THORNTON LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y09849a1exv23w5.txt">EX-23.5: CONSENT OF KPMG LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y09849a1exv23w6.txt">EX-23.6: CONSENT OF PANNELL KERR FORSTER OF TEXAS, P.C.</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y09849a1exv23w7.txt">EX-23.7: CONSENT OF ERNST & YOUNG LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y09849a1exv25w1.htm">EX-25.1: STATEMENT OF ELIGIBILITY OF TRUSTEE</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y09849a1exv99w1.htm">EX-99.1: LETTER OF TRANSMITTAL</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y09849a1exv99w2.htm">EX-99.2: NOTICE OF GUARANTEED DELIVERY</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y09849a1exv99w3.htm">EX-99.3: LETTER TO CLIENTS</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y09849a1exv99w4.htm">EX-99.4: LETTER TO BROKERS</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y09849a1exv99w5.htm">EX-99.5: FORM OF EXCHANGE AGENT AGREEMENT</A></FONT></TD></TR>
</TABLE>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have not authorized any dealer, salesperson or other person
to give any information or to make any representations to you
other than the information contained in this prospectus. You
must not rely on any information or representations not
contained in this prospectus as if we had authorized it. This
prospectus does not offer to sell or solicit any offer to buy
any securities other than the registered notes to which it
relates, nor does it offer to buy any of these notes in any
jurisdiction from any person to whom it is unlawful to make such
offer or solicitation in such jurisdiction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The information contained in this prospectus is current only as
of the date on the cover page of this prospectus, and may change
after that date. We do not imply that there has been no change
in the information contained in this prospectus or in our
affairs since that date by delivering this prospectus.
</DIV>

<P align="center" style="font-size: 10pt;">i
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<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="left" style="font-size: 10pt;">
<A name='101'></A>
</DIV>

<!-- link1 "PROSPECTUS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PROSPECTUS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>You should read the entire prospectus, including &#147;Risk
Factors&#148; and the financial statements and related notes
incorporated by reference in this prospectus, before making an
investment decision. Unless the context indicates otherwise, all
references to &#147;American Real Estate Partners, L.P.,&#148;
&#147;AREP,&#148; &#147;we,&#148; &#147;our,&#148;
&#147;ours&#148; and &#147;us&#148; refer to American Real
Estate Partners, L.P. and, unless the context otherwise
indicates, include our subsidiaries. Our general partner is
American Property Investors, Inc., or API.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
American Real Estate Partners, L.P. is a diversified holding
company engaged in a variety of businesses. Our primary business
strategy is to continue to grow our core businesses, including
home fashion, gaming, oil and gas exploration and production and
real estate. In addition, we seek to acquire undervalued assets
and companies that are distressed or in out of favor industries.
We may also seek opportunities in other sectors, including
energy, industrial manufacturing and insurance and asset
management.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our general partner is American Property Investors, Inc., a
Delaware corporation, which is a wholly owned subsidiary of
Beckton Corp., a Delaware corporation. All of the outstanding
capital stock of Beckton Corp. is owned by Carl C. Icahn.
Substantially all of our businesses are conducted and our assets
held through a subsidiary limited partnership, American Real
Estate Holdings Limited Partnership, or AREH, in which we own a
99% limited partnership interest. API also acts as the general
partner for AREH. API has a 1% general partnership interest in
each of us and AREH. As of November&nbsp;1, 2005, affiliates of
Mr.&nbsp;Icahn owned 9,346,044 preferred units and 55,655,382
depositary units, which represent 86.5% and 90.0% of the
outstanding preferred units and depositary units, respectively.
</DIV>
</DIV>

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

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<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Summary of the Exchange Offer</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
    The Offering of the Private Notes</TD>
    <TD></TD>
    <TD valign="top">
    On February&nbsp;7, 2005, we issued $480&nbsp;million aggregate
    principal amount of our private notes in an offering not
    registered under the Securities Act of 1933. At the time we
    issued the private notes, we entered into a registration rights
    agreement in which we agreed to offer to exchange the private
    notes for new notes which have been registered under the
    Securities Act of 1933. This exchange offer is intended to
    satisfy that obligation.</TD>
</TR>

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

<TR>
    <TD valign="top">
    The Exchange Offer</TD>
    <TD></TD>
    <TD valign="top">
    We are offering to exchange the new notes which have been
    registered under the Securities Act of 1933 for the private
    notes. As of this date, there is $480&nbsp;million aggregate
    principal amount of private notes outstanding.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Required Representations</TD>
    <TD></TD>
    <TD valign="top">
    In order to participate in this exchange offer, you will be
    required to make certain representations to us in a letter of
    transmittal, including that:</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;any new notes will be acquired by you in the
    ordinary course of your business;</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;you have not engaged in, do not intend to engage in,
    and do not have an arrangement or understanding with any person
    to participate in a distribution of the new notes;&nbsp;and</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;you are not an affiliate of our company.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Resale of New Notes</TD>
    <TD></TD>
    <TD valign="top">
    We believe that, subject to limited exceptions, the new notes
    may be freely traded by you without compliance with the
    registration and prospectus delivery provisions of the
    Securities Act of 1933, provided that:</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;you are acquiring new notes in the ordinary course
    of your business;</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;you are not participating, do not intend to
    participate and have no arrangement or understanding with any
    person to participate in the distribution of the new
    notes;&nbsp;and</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;you are not an affiliate of our company.</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    If our belief is inaccurate and you transfer any new note issued
    to you in the exchange offer without delivering a prospectus
    meeting the requirements of the Securities Act of 1933 or
    without an exemption from registration of your new notes from
    such requirements, you may incur liability under the Securities
    Act of 1933. We do not assume, or indemnify you against, such
    liability.</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    Each broker-dealer that is issued new notes for its own account
    in exchange for private notes which were acquired by such
    broker-dealer as a result of market-making or other trading
    activities also must acknowledge that it has not entered into
    any arrangement or understanding with us or any of our
    affiliates to distribute the new notes and will deliver a
    prospectus meeting the requirements of the Securities Act of
    1933 in connection with any resale of the new notes issued in
    the exchange offer.</TD>
</TR>

</TABLE>
</DIV>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    We have agreed in the registration rights agreement that a
    broker-dealer may use this prospectus for an offer to resell,
    resale or other retransfer of the new notes issued to it in the
    exchange offer.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Expiration Date</TD>
    <TD></TD>
    <TD valign="top">
    The exchange offer will expire at 5:00&nbsp;p.m., New York City
    time, on January&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2006,
    unless extended, in which case the term &#147;expiration
    date&#148; shall mean the latest date and time to which we
    extend the exchange offer.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Conditions to the Exchange Offer</TD>
    <TD></TD>
    <TD valign="top">
    The exchange offer is subject to certain customary conditions,
    which may be waived by us. The exchange offer is not conditioned
    upon any minimum principal amount of private notes being
    tendered.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Procedures for Tendering Private Notes</TD>
    <TD></TD>
    <TD valign="top">
    If you wish to tender your private notes for exchange, you must
    transmit to Wilmington Trust Company, as exchange agent, at the
    address set forth in this prospectus under the heading &#147;The
    Exchange Offer&nbsp;&#151; Exchange Agent,&#148; and on the
    front cover of the letter of transmittal, on or before the
    expiration date, a properly completed and duly executed letter
    of transmittal, which accompanies this prospectus, or a
    facsimile of the letter of transmittal and either:</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;the private notes and any other required
    documentation, to the exchange agent;&nbsp;or</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;a computer generated message transmitted by means of
    The Depository Trust Company&#146;s Automated Tender Offer
    Program system and received by the exchange agent and forming a
    part of a confirmation of book entry transfer in which you
    acknowledge and agree to be bound by the terms of the letter of
    transmittal.</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    If either of these procedures cannot be satisfied on a timely
    basis, then you should comply with the guaranteed delivery
    procedures described below. By executing the letter of
    transmittal, each holder of private notes will make certain
    representations to us described under &#147;The Exchange
    Offer&nbsp;&#151; Procedures for Tendering.&#148;</TD>
</TR>

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

<TR>
    <TD valign="top">
    Special Procedures for Beneficial Owners</TD>
    <TD></TD>
    <TD valign="top">
    If you are a beneficial owner whose private notes are registered
    in the name of a broker, dealer, commercial bank, trust company
    or other nominee and you wish to tender your private notes in
    the exchange offer, you should contact such registered holder
    promptly and instruct such registered holder to tender on your
    behalf. If you wish to tender on your own behalf, you must,
    prior to completing and executing the letter of transmittal and
    delivering your private notes, either make appropriate
    arrangements to register ownership of the private notes in your
    name or obtain a properly completed bond power from the
    registered holder. The transfer of registered ownership may take
    considerable time and may not be able to be completed prior to
    the expiration date.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Guaranteed Delivery Procedures</TD>
    <TD></TD>
    <TD valign="top">
    If you wish to tender private notes and time will not permit the
    documents required by the letter of transmittal to reach the
    exchange agent prior to the expiration date, or the procedure
    for book-entry transfer cannot be completed on a timely basis,
    you</TD>
</TR>

</TABLE>
</DIV>

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

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    must tender your private notes according to the guaranteed
    delivery procedures described under &#147;The Exchange
    Offer&nbsp;&#151; Guaranteed Delivery Procedures.&#148;</TD>
</TR>

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

<TR>
    <TD valign="top">
    Acceptance of Private Notes and Delivery of New Notes</TD>
    <TD></TD>
    <TD valign="top">
    Subject to the conditions described under &#147;The Exchange
    Offer&nbsp;&#151; Conditions,&#148; we will accept for exchange
    any and all private notes which are validly tendered in the
    exchange offer and not withdrawn, prior to 5:00&nbsp;p.m., New
    York City time, on the expiration date.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Withdrawal Rights</TD>
    <TD></TD>
    <TD valign="top">
    You may withdraw your tender of private notes at any time prior
    to 5:00&nbsp;p.m., New York City time, on the expiration date,
    subject to compliance with the procedures for withdrawal
    described in this prospectus under heading &#147;The Exchange
    Offer&nbsp;&#151; Withdrawal of Tenders.&#148;</TD>
</TR>

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

<TR>
    <TD valign="top">
    Federal Income Tax Consequences</TD>
    <TD></TD>
    <TD valign="top">
    For a discussion of the material federal income tax
    considerations relating to the exchange of private notes for the
    new notes as well as the ownership of the new notes, see
    &#147;Certain U.S.&nbsp;Federal Income Tax Consequences.&#148;</TD>
</TR>

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

<TR>
    <TD valign="top">
    Exchange Agent</TD>
    <TD></TD>
    <TD valign="top">
    The Wilmington Trust Company is serving as the exchange agent.
    The address, telephone number and facsimile number of the
    exchange agent are set forth in this prospectus under the
    heading &#147;The Exchange Offer&nbsp;&#151; Exchange
    Agent.&#148;</TD>
</TR>

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

<TR>
    <TD valign="top">
    Consequences of Failure to Exchange Private Notes</TD>
    <TD></TD>
    <TD valign="top">
    If you do not exchange private notes for new notes, you will
    continue to be subject to the restrictions on transfer provided
    in the private notes and in the indenture governing the private
    notes. In general, the unregistered private notes may not be
    offered or sold, unless they are registered under the Securities
    Act of 1933, except pursuant to an exemption from, or in a
    transaction not subject to, the Securities Act of 1933 and
    applicable state securities laws.</TD>
</TR>

</TABLE>
</DIV>

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

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>The New Notes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The terms of the new notes we are issuing in this exchange offer
and the private notes that are outstanding are identical in all
material respects except:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The new notes will be registered under the Securities Act of
    1933;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The new notes will not contain transfer restrictions and
    registration rights that relate to the private notes.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The new notes will evidence the same debt as the old notes and
will be governed by the same indenture. References to notes
include both private notes and new notes.
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

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

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

<TR>
    <TD valign="top">
    Issuer</TD>
    <TD></TD>
    <TD valign="top">
    AREP is a holding company. Its operations are conducted through
    its subsidiaries and substantially all of its assets consist of
    a 99% limited partnership interest in its subsidiary, AREH,
    which is a holding company for its operating subsidiaries and
    investments. The new notes will be guaranteed by AREH.</TD>
</TR>

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

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

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

<TR>
    <TD valign="top">
    Co-Issuer</TD>
    <TD></TD>
    <TD valign="top">
    American Real Estate Finance Corp., or AREP Finance, is a
    wholly-owned subsidiary of AREP. It was formed solely for the
    purpose of serving as a co-issuer of debt securities of AREP in
    order to facilitate offerings of the debt securities. Other than
    as a co-issuer of the notes, AREP Finance does not and will not
    have any operations or assets and will not have any revenues. As
    a result, holders of the notes should not expect AREP Finance to
    participate in servicing any obligations on the new notes.</TD>
</TR>

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

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

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

<TR>
    <TD valign="top">
    Notes&nbsp;Offered</TD>
    <TD></TD>
    <TD valign="top">
    $480&nbsp;million in aggregate principal amount of
    7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;senior
    notes due 2013.</TD>
</TR>

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

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

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

<TR>
    <TD valign="top">
    Maturity</TD>
    <TD></TD>
    <TD valign="top">
    February&nbsp;15, 2013.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Interest Payment Dates</TD>
    <TD></TD>
    <TD valign="top">
    February 15 and August 15 of each year, commencing
    August&nbsp;15, 2005.</TD>
</TR>

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

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

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

<TR>
    <TD valign="top">
    Ranking</TD>
    <TD></TD>
    <TD valign="top">
    The new notes and the guarantee will rank equally with all of
    our and the guarantor&#146;s existing and future senior
    unsecured indebtedness, and will rank senior to all of our and
    the guarantor&#146;s existing and future subordinated
    indebtedness. The new notes and the guarantee will be
    effectively subordinated to all of our and the guarantor&#146;s
    existing and future secured indebtedness, to the extent of the
    collateral securing such indebtedness. The new notes and the
    guarantee also will be effectively subordinated to all
    indebtedness and other liabilities, including trade payables, of
    all our subsidiaries other than AREH. As of September 30, 2005,
    the new notes and the guarantee would have been effectively
    subordinated to an aggregate of $417.7&nbsp;million of
    AREH&#146;s secured debt and our subsidiaries&#146; debt,
    excluding trade payables.</TD>
</TR>

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

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

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

<TR>
    <TD valign="top">
    Guarantee</TD>
    <TD></TD>
    <TD valign="top">
    If we cannot make payments on the new notes when they are due,
    AREH must make them instead. Other than AREH, none of our
    subsidiaries will guarantee payments on the new notes.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Optional Redemption</TD>
    <TD></TD>
    <TD valign="top">
    We may, at our option, redeem some or all of the new notes at
    any time on or after February&nbsp;15, 2009, at the redemption
    prices listed under &#147;Description of Notes&nbsp;&#151;
    Optional Redemption.&#148;</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt;">5
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    In addition, prior to February&nbsp;15, 2008, we may, at our
    option, redeem up to 35% of the new notes with the proceeds of
    certain sales of our equity at the redemption price listed under
    &#147;Description of Notes&nbsp;&#151; Optional
    Redemption.&#148; We may make the redemption only if, after the
    redemption, at least 65% of the aggregate principal amount of
    the notes issued remains outstanding.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Redemption&nbsp;Based on Gaming Laws</TD>
    <TD></TD>
    <TD valign="top">
    The new notes are subject to mandatory disposition and
    redemption requirements following certain determinations by
    applicable gaming authorities.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Certain Covenants</TD>
    <TD></TD>
    <TD valign="top">
    We will issue the new notes under an indenture with AREH and
    Wilmington Trust Company, as trustee acting on your behalf. The
    indenture will, among other things, restrict our and AREH&#146;s
    ability to:</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;Incur additional debt;</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;Pay dividends and make distributions;</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;Repurchase equity securities;</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;Create liens;</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;Enter into transactions with affiliates;&nbsp;and</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;Merge or consolidate.</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    Our subsidiaries other than AREH will not be restricted in their
    ability to incur debt, create liens or merge or consolidate.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Absence of Established Market for Notes</TD>
    <TD></TD>
    <TD valign="top">
    The new notes will be new securities for which there is
    currently no market. We cannot assure you that a liquid market
    for the new notes will develop or be maintained.</TD>
</TR>

</TABLE>
</DIV>

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

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<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AREP, AREH and AREP Finance Information</B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AREP is a publicly traded master limited partnership formed in
Delaware on February&nbsp;17, 1987. Mr.&nbsp;Icahn, through
affiliates, owns approximately 90.0% of our depositary units and
86.5% of our preferred units. Our general partner is API, a
Delaware corporation, which is a wholly-owned subsidiary of
Beckton Corp., a Delaware corporation. All of the outstanding
capital stock of Beckton is owned by Mr.&nbsp;Icahn. Affiliates
of Mr.&nbsp;Icahn acquired API in 1990. Substantially all of our
businesses are conducted and assets are held through a Delaware
limited partnership, AREH, formed on February&nbsp;17, 1987, in
which we own a 99% limited partnership interest, or its
subsidiaries. For that reason, no separate disclosure
information for AREH is provided, unless otherwise indicated.
API also acts as the general partner for AREH. API has a 1%
general partnership interest in each of us and AREH. Our,
AREH&#146;s and API&#146;s principal business address is
100&nbsp;South Bedford Road, Mt.&nbsp;Kisco, New York 10549, and
our, AREH&#146;s and API&#146;s telephone number is
(914)&nbsp;242-7700.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AREP Finance, a Delaware corporation, is a wholly-owned
subsidiary of AREP. AREP Finance was incorporated on
April&nbsp;19, 2004 and was formed solely for the purpose of
serving as a co-issuer of debt securities of AREP in order to
facilitate offerings of the debt securities. Other than as a
co-issuer of the notes and our
8<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
senior notes due 2012, AREP Finance does not have any
operations, and it does not have any assets or revenues. As a
result, prospective holders of the notes should not expect AREP
Finance to participate in servicing any obligations with respect
to the notes. AREP Finance&#146;s principal business address is
100&nbsp;South Bedford Road, Mt. Kisco, New York 10549 and its
telephone number is (914)&nbsp;242-7700.
</DIV>

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

</FONT></DIV>
</DIV>

<P align="center" style="font-size: 10pt;">7
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Structure Chart</B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following is a chart of our ownership and the structure of
the entities through which we conduct our operations. Unless
otherwise indicated, all entities are wholly-owned.
</DIV>

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

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<IMG src="y09849a1y0984901.gif" alt="(FLOWCHART)">
</DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Our partnership units consist of depositary units, representing
    limited partnership interests, and preferred units, representing
    preferred limited partnership interests. As of
    September&nbsp;30, 2005, there were 62,994,030 depositary units
    outstanding and 10,800,577 preferred units outstanding. As of
    November&nbsp;1, 2005, Mr.&nbsp;Icahn was the beneficial owner
    of 55,655,382 depositary units representing approximately 90.0%
    of the depositary units and 9,346,044 preferred units
    representing approximately 86.5% of the preferred units. The
    number of depositary units issued does not include up to an
    additional 206,897 depositary units which may be issued to
    affiliates of Mr.&nbsp;Icahn if Atlantic Holdings meets certain
    earnings targets during 2005 and 2006.</TD>
</TR>

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Substantially all of our marketable debt and equity securities
    and rental real estate properties are owned, directly or
    indirectly, by AREH.</TD>
</TR>

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    AREH contributed its 50.01% interest in NEG to its wholly-owned
    subsidiary, AREP Oil&nbsp;&#38; Gas. NEG is a publicly held
    company, the stock of which currently trades on the OTC
    Bulletin&nbsp;Board. NEG owns a membership interest in NEG
    Holding. AREP Oil&nbsp;&#38; Gas owns the other membership
    interest in NEG Holding and 100% of the equity of National
    Onshore and National Offshore.</TD>
</TR>

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    AREH, through direct and indirect wholly-owned subsidiaries, is
    engaged in real estate investment, management and development,
    focused primarily on the acquisition, development, construction
    and sale of single-family homes, custom-built homes,
    multi-family homes and lots in subdivisions and planned
    communities.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    AREH, through direct and indirect wholly-owned subsidiaries,
    owns Grand Harbor and Oak Harbor, waterfront communities located
    in Vero Beach, Florida.</TD>
</TR>

</TABLE>
</DIV>

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

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<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(6)&nbsp;</TD>
    <TD align="left">
    AREH, through direct and indirect wholly-owned subsidiaries,
    owns a 381&nbsp;acre resort community in Cape Cod, Massachusetts.</TD>
</TR>

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(7)&nbsp;</TD>
    <TD align="left">
    AREP Gaming LLC owns American Entertainment Properties Corp.,
    which owns American Casino&nbsp;&#38; Entertainment Properties
    LLC, or ACEP, and its indirect subsidiaries, which own three Las
    Vegas hotels and casinos.</TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(8)&nbsp;</TD>
    <TD align="left">
    AREP Sands owns approximately 77.5% of the outstanding GB
    Holdings common stock, approximately 58.3% of the outstanding
    Atlantic Holdings common stock and approximately
    $35.0&nbsp;million principal amount of the Atlantic Holdings
    3%&nbsp;Notes due 2008. If all outstanding Atlantic Holdings
    notes were converted and warrants exercised, AREP Sands would
    own approximately 63.4% of Atlantic Holdings common stock,
    GB&nbsp;Holdings would own approximately 28.8% of the Atlantic
    Holdings common stock and the remaining shares would be owned by
    the public. <BR>
     <BR>
     GB&nbsp;Holdings filed for protection under Chapter&nbsp;11 of
    the U.S. Bankruptcy Code. As a result, we determined that we no
    longer control GB&nbsp;Holdings under applicable accounting
    rules and have deconsolidated our investment for financial
    reporting purposes effective the date of the filing,
    September&nbsp;29, 2005.</TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(9)&nbsp;</TD>
    <TD align="left">
    NEG and AREP Oil&nbsp;&#38; Gas each owns a membership interest
    in NEG Holding. Pursuant to the NEG Holding operating agreement,
    NEG is required to be paid guaranteed payments, calculated at an
    annual interest rate of 10.75% on the outstanding priority
    amount, which includes $148.6&nbsp;million in principal amount
    of debt securities representing all of NEG&#146;s outstanding
    debt securities. As of September&nbsp;30, 2005, the priority
    amount was $148.6&nbsp;million. The NEG Holding operating
    agreement provides that the priority amount is required to be
    paid to NEG by November&nbsp;6, 2006. After NEG is paid the
    guaranteed payments and the priority amount, under the NEG
    Holding operating agreement, AREP Oil&nbsp;&#38; Gas is required
    to be paid an amount equal to the guaranteed payments and the
    priority amount plus interest. After these distributions have
    been made, any additional distributions will be made in
    accordance with the ratio of NEG&#146;s and AREP Oil&nbsp;&#38;
    Gas&#146;s respective capital accounts, as defined in the NEG
    Holding operating agreement.</TD>
</TR>

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

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

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>(10)&nbsp;</TD>
    <TD align="left">
    We currently own approximately 67.7% of the outstanding common
    stock of West Point International. West Point International owns
    100% of West Point Home, Inc., which is engaged in our home
    fashion business. Depending on the outcome of a recent court
    decision, our ownership in West Point International may be
    reduced to less than 50% of the outstanding common stock.</TD>
</TR>

</TABLE>

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

</FONT></DIV>
</DIV>

<P align="center" style="font-size: 10pt;">9
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<DIV align="left" style="font-size: 10pt;">
<A name='102'></A>
</DIV>

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

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>RISK FACTORS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>You should consider carefully each of the following risks and
all other information contained in this prospectus before
deciding to invest in the notes.</I>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Risks Relating to the Exchange Offer</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Holders who fail to exchange their private notes will
continue to be subject to restrictions on transfer.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If you do not exchange your private notes for new notes in the
exchange offer, you will continue to be subject to the
restrictions on transfer of your private notes described in the
legend on your private notes. The restrictions on transfer of
your private notes arise because we issued the private notes
under exemptions from, or in transactions not subject to, the
registration requirements of the Securities Act of 1933 and
applicable state securities laws. In general, you may only offer
or sell the private notes if they are registered under the
Securities Act and applicable state securities laws, or are
offered and sold under an exemption from these requirements. We
do not plan to register the private notes under the Securities
Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Broker-dealers or holders of notes may become subject to
the registration and prospectus delivery requirements of the
Securities Act.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any broker-dealer that:
</DIV>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    exchanges its private notes in the exchange offer for the
    purpose of participating in a distribution of the new
    notes,&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    resells new notes that were received by it for its own account
    in the exchange offer,</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
may be deemed to have received restricted securities and may be
required to comply with the registration and prospectus delivery
requirements of the Securities Act of 1933 in connection with
any resale transaction by that broker-dealer. Any profit on the
resale of the new notes and any commission or concessions
received by a broker-dealer may be deemed to be underwriting
compensation under the Securities Act. In addition to
broker-dealers, any holder of notes that exchanges its private
notes in the exchange offer for the purpose of participating in
a distribution of the new notes may be deemed to have received
restricted securities and may be required to comply with the
registration and prospectus delivery requirements of the
Securities Act in connection with any resale transaction by that
holder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>We cannot guarantee that there will be a trading market
for the new notes.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The new notes are a new issue of securities and currently there
is no market for them. We do not intend to apply to have the new
notes listed or quoted on any exchange or quotation system.
Accordingly, we cannot assure you that a liquid market will
develop for the new notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The liquidity of any market for the new notes will depend on a
variety of factors, including:
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the number of holders of the new notes;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our performance;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the market for similar securities and the interest of securities
    dealers in making a market in the new notes.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A liquid trading market may not develop for the new notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Historically, the market for non-investment grade debt has been
subject to disruptions that have caused substantial volatility
in the prices of securities similar to the new notes. The
market, if any, for the new notes may experience similar
disruptions that may adversely affect the prices at which you
may sell your new notes. If an active trading market does not
develop or is not maintained, the market price and liquidity of
the new notes may be adversely affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To the extent private notes are tendered and accepted in the
exchange offer, the trading market, if any, for the private
notes that are not so tendered would be adversely affected.
</DIV>

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

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Risks Relating to Our Structure and Indebtedness</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>We and AREH are holding companies and will depend on the
businesses of our subsidiaries to satisfy our obligations under
the notes.</I></B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We and AREH are holding companies. In addition to cash and cash
equivalents, U.S.&nbsp;government and agency obligations,
marketable equity and debt securities and other short-term
investments, and rental real estate properties and other
property development and resort properties, our assets consist
primarily of investments in our subsidiaries. Moreover, if we
make significant investments in operating businesses, it is
likely that we will reduce the liquid assets at AREP and AREH in
order to fund those investments and their ongoing operations.
Consequently, our cash flow and our ability to meet our debt
service obligations likely will depend on the cash flow of our
subsidiaries and the payment of funds to us by our subsidiaries
in the form of loans, dividends, distributions or otherwise. If
we invest our cash, we may become dependent on our subsidiaries
to provide cash to us to service our debt.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The operating results of our subsidiaries may not be sufficient
to make distributions to us. In addition, our subsidiaries are
not obligated to make funds available to us for payment on the
notes or otherwise, and distributions and intercompany transfers
from our subsidiaries to us may be restricted by applicable law
or covenants contained in debt agreements and other agreements
to which these subsidiaries may be subject or enter into in the
future. The terms of any borrowings of our subsidiaries or other
entities in which we own equity may restrict dividends,
distributions or loans to us. For example, the notes issued by
ACEP, an indirect wholly-owned subsidiary of AREH, contain
restrictions on dividends and distributions and loans to us, as
well as on other transactions with us. ACEP also has a credit
agreement which contains financial covenants that have the
effect of restricting dividends or distributions. The operating
subsidiary of NEG Holding has a credit agreement which contains
financial covenants that have the effect of restricting
dividends or distributions. We currently are negotiating a
credit facility for AREP Oil&nbsp;&#38; Gas which also will
restrict dividends and distributions other than a potential
initial distribution, and other transactions with us. These
likely will preclude our receiving payments from the operations
of our hotel and casino and certain of our oil and gas
properties. To the degree any distributions and transfers are
impaired or prohibited, our ability to make payments on the
notes will be limited.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>We, AREH or our subsidiaries may be able to incur
substantially more debt.</I></B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We, AREH or our subsidiaries may be able to incur substantial
additional indebtedness in the future. The terms of the
indenture do not prohibit us or our subsidiaries from doing so.
We and AREH may incur additional indebtedness if we comply with
certain financial tests contained in the indenture. As of
September&nbsp;30, 2005, based upon certain of these tests, we
and AREH could have incurred up to approximately
$1.3&nbsp;billion of additional indebtedness, although other
covenants could limit further or even preclude the incurrence of
additional debt. Our subsidiaries other than AREH are not
subject to any of the covenants contained in the indenture,
including the covenant restricting debt incurrence. If new debt
is added to our, AREH&#146;s and our subsidiaries&#146; current
debt levels, the related risks that we, AREH and they now face
could intensify. In addition, certain important events, such as
leveraged recapitalizations that would increase the level of our
indebtedness, would not constitute a &#147;Change of
Control&#148; under the indenture.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>The notes will be effectively subordinated to any secured
indebtedness, and all the indebtedness and liabilities of our
subsidiaries other than AREH.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The notes will be effectively subordinated to our and
AREH&#146;s existing and future secured indebtedness to the
extent of the collateral securing such indebtedness. We and AREH
may be able to incur substantial additional secured indebtedness
in the future. The terms of the indenture permit us and AREH to
do so. The notes will be effectively subordinated to our and
AREH&#146;s existing and future secured indebtedness to the
extent of the collateral securing such indebtedness. The notes
will also be effectively subordinated to all the indebtedness
and liabilities, including trade payables, of all of our
subsidiaries, other than AREH. In the event of a bankruptcy,
liquidation or reorganization of any of our subsidiaries, other
than AREH, holders of their indebtedness and their trade
creditors will generally be entitled to payment of their claims
from the assets of
</DIV>

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</FONT></DIV>

<DIV align="left" style="font-size: 10pt;">
those subsidiaries before any assets are made available for
distribution to us. As of September&nbsp;30, 2005, the notes and
the guarantee would have been effectively subordinated to an
aggregate of $417.7&nbsp;million of AREH&#146;s secured debt and
our subsidiaries&#146; debt, excluding trade payables.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Our subsidiaries, other than AREH, are not subject to any
of the covenants in the indenture for the notes and only AREH
will guarantee the notes. We may not be able to rely on the cash
flow or assets of our subsidiaries to pay our
indebtedness.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our subsidiaries, other than AREH, are not subject to the
covenants under the indenture for the notes. We may form
additional subsidiaries in the future which will not be subject
to the covenants under the indenture for the notes. Of our
existing and future subsidiaries, only AREH is required to
guarantee the notes. Our existing and future non-guarantor
subsidiaries may enter into financing arrangements that limit
their ability to make dividends, distributions, loans or other
payments to fund payments in respect of the notes. Accordingly,
we may not be able to rely on the cash flow or assets of our
subsidiaries to pay the notes.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>As of September&nbsp;30, 2005, we had significant
deficiencies in our internal control over financial reporting.
If we were to discover other significant deficiencies in the
future, including at any recently acquired entity, it may affect
adversely our ability to provide timely and reliable financial
information and satisfy our reporting obligations under federal
securities laws, which also could affect our ability to remain
listed with the New York Stock Exchange or the market price of
our depositary units.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective internal and disclosure controls are necessary for us
to provide reliable financial reports and effectively prevent
fraud and to operate successfully as a public company. If we
cannot provide reliable financial reports or prevent fraud, our
reputation and operating results would be harmed. We have
discovered significant deficiencies in our internal controls as
defined under interim standards adopted by the Public Company
Accounting Oversight Board, or PCAOB, that require remediation.
A &#147;significant deficiency&#148; is a control deficiency, or
combination of control deficiencies, that adversely affect a
company&#146;s ability to initiate, authorize, record, process,
or report external financial data reliably in accordance with
generally accepted accounting principles such that there is a
more than remote likelihood that a misstatement of a
company&#146;s annual or interim financial statements that is
more than inconsequential will not be prevented or detected.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the third quarter of 2005, we continued to implement
processes to address a significant deficiency in our
consolidation process reported by management in 2004 during its
evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures and our internal controls
over financial reporting. These processes included the
implementation and testing of our new accounting and
consolidation program and continuing to retain the services of
an independent consultant to evaluate the effectives of our
internal controls. We continue to monitor the progress of our
subsidiaries in implementing processes to correct any
significant deficiencies noted in their disclosure and control
procedures. We have not yet determined whether our year end
evaluation of internal controls will include recently acquired
entities.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the third quarter of 2005, we identified a significant
deficiency related to our periodic reconciliation, review and
analysis of investment accounts. This significant deficiency is
not believed to be a material weakness and arose from a lack of
monitoring and review controls. We have engaged additional
resources to provide the appropriate level of control and will
closely monitor the area and will reduce the number of accounts
that require reconciliation and review.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To the extent that any significant deficiency exists in our
internal control over financial reporting, such deficiencies may
adversely affect our ability to provide timely and reliable
financial information necessary for the conduct of our business
and satisfaction of our reporting obligations under federal
securities laws, which could affect our ability to remain listed
with the New York Stock Exchange. Ineffective internal and
disclosure controls could also cause investors to lose
confidence in our reported financial information, which would
likely have a negative effect on the trading price of our
depositary units.
</DIV>

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

</FONT></DIV>

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

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Risks Relating to the Notes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Our failure to comply with the covenants contained under
one of our debt instruments or the indenture governing the
notes, including our failure as a result of events beyond our
control, could result in an event of default which would
materially and adversely affect our financial condition.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If there were an event of default under one of our debt
instruments, the holders of the defaulted debt could cause all
outstanding amounts of that debt to be due and payable
immediately. In addition, any event of default or declaration of
acceleration under one debt instrument could result in an event
of default under one or more of our other debt instruments,
including the notes. It is possible that, if the defaulted debt
is accelerated, our assets and cash flow may not be sufficient
to fully repay borrowings under our outstanding debt instruments
and we cannot assure you that we would be able to refinance or
restructure the payments on those debt securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>To service our indebtedness, we will require a significant
amount of cash. Our ability to maintain our current cash
position or generate cash depends on many factors beyond our
control.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our ability to make payments on and to refinance our
indebtedness, including the notes, and to fund operations will
depend on existing cash balances and our ability to generate
cash in the future. This, to a certain extent, is subject to
general economic, financial, competitive, regulatory and other
factors that are beyond our control.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The businesses or assets we acquire may not generate sufficient
cash to service our debt, including the notes. In addition, we
may not generate sufficient cash flow from operations or
investments and future borrowings may not be available to us in
an amount sufficient to enable us to service our indebtedness,
including the notes, or to fund our other liquidity needs. We
may need to refinance all or a portion of our indebtedness,
including the notes, on or before maturity. We cannot assure you
that we will be able to refinance any of our indebtedness,
including the notes, on commercially reasonable terms or at all.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>The indenture does not restrict our ability to change our
lines of business or invest the proceeds of asset sales and
allows for the sale of all or substantially all of our and
AREH&#146;s assets without the notes being assumed by the
acquirers.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The indenture does not restrict in any way the businesses in
which we may engage and if we were to change our current lines
of business, in whole or in part, you would not be entitled to
accelerated repayment of the notes. We also are not required to
offer to purchase notes with the proceeds from asset sales,
including in the event of the sale of all or substantially all
of our assets or AREH&#146;s assets, and we may reinvest the
proceeds without the approval of noteholders. In addition, we
and AREH may sell all or substantially all of our and its assets
without the notes being assumed by the acquirers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>We may not have sufficient funds necessary to finance the
change of control offer required by the indenture.</I></B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon the occurrence of certain specific kinds of change of
control events, we will be required to offer to repurchase all
outstanding notes at 101% of their principal amount plus accrued
and unpaid interest and liquidated damages, if any, to the date
of repurchase. Mr.&nbsp;Icahn, through affiliates, currently
owns 100% of API and approximately 86.5% of our preferred units
and approximately 90.0% of our depositary units. A majority of
the depositary units have been pledged to lenders of Mr. Icahn
or his affiliates. If Mr. Icahn were to sell or otherwise
transfer some or all of his interests in us to unrelated
parties, a change of control could be deemed to have occurred
under the terms of the indenture governing the notes. However,
it is possible that we will not have sufficient funds at the
time of the change of control to make the required repurchase of
notes.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Federal and state statutes allow courts, under specific
circumstances, to void guarantees and require noteholders to
return payments received from the guarantor.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the federal bankruptcy law and comparable provisions of
state fraudulent transfer laws, a guarantee could be voided, or
claims in respect of a guarantee could be subordinated to all
other debts of that
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
guarantor if, among other things, the guarantor, at the time it
incurred the indebtedness evidenced by its guarantee:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    received less than reasonably equivalent value or fair
    consideration for the incurrence of such guarantee;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    was insolvent or rendered insolvent by reason of such
    incurrence; or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    was engaged in a business or transaction for which the
    guarantor&#146;s remaining assets constituted unreasonably small
    capital;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    intended to incur, or believed that it would incur, debts beyond
    its ability to pay such debts as they mature.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, any payment by that guarantor pursuant to its
guarantee could be voided and required to be returned to the
guarantor, or to a fund for the benefit of the creditors of the
guarantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The measures of insolvency for purposes of these fraudulent
transfer laws will vary depending upon the law applied in any
proceeding to determine whether a fraudulent transfer has
occurred. Generally, however, a guarantor would be considered
insolvent if:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the sum of its debts, including contingent liabilities, was
    greater than the fair saleable value of all of its
    assets;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the present fair saleable value of its assets was less than the
    amount that would be required to pay its probable liability on
    its existing debts, including contingent liabilities, as they
    become absolute and mature;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    it could not pay its debts as they become due.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On the basis of historical financial information, recent
operating history and other factors, we believe that AREH, after
giving effect to its guarantee of these notes, will not be
insolvent, will not have unreasonably small capital for the
businesses in which it is engaged and will not have incurred
debts beyond its ability to pay such debts as they mature. We
cannot assure you, however, as to what standard a court would
apply in making these determinations or that a court would agree
with our conclusions in this regard.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>As a noteholder you may be required to comply with
licensing, qualification or other requirements under gaming laws
and could be required to dispose of the notes.</I></B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Currently, we and AREH indirectly own the equity of subsidiaries
that hold the licenses for three hotels and casinos in Nevada.
We and AREH indirectly own Stratosphere Corporation, which owns
Stratosphere Gaming Corp. Stratosphere Gaming holds the gaming
license for the Stratosphere Casino Hotel &#38; Tower. We and
AREH also indirectly own the equity of subsidiaries that hold
the licenses for the two Arizona Charlie&#146;s hotels and
casinos. We and AREH also own approximately 58.3% of the entity
that owns The Sands Hotel and Casino, located in Atlantic City,
New Jersey.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We may be required to disclose the identities of the holders of
the notes to the New Jersey and Nevada gaming authorities upon
request. The New Jersey Casino Control Act, or NJCCA, imposes
substantial restrictions on the ownership of our securities and
our subsidiaries. A holder of the notes may be required to meet
the qualification provisions of the NJCCA relating to financial
sources and/or security holders. The indenture governing the
notes provides that if the New Jersey Casino Control Commission,
or New Jersey Commission, requires a holder of the notes
(whether the record or beneficial owner) to qualify under the
NJCCA and the holder does not so qualify, then the holder must
dispose of his interest in the notes within 30&nbsp;days after
receipt by us of notice of the finding that the holder does not
so qualify, or we may redeem the notes at the lower of the
outstanding principal amount or the notes&#146; value calculated
as if the investment had been made on the date of
disqualification of the holder (or such lesser amount as may be
required by the New
</DIV>

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

</FONT></DIV>

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

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<DIV align="left" style="font-size: 10pt;">
Jersey Commission). If a holder is found unqualified by the New
Jersey Commission, it is unlawful for the holder:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    to exercise, directly or through any trustee or nominee, any
    right conferred by such securities,&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    to receive any dividends or interest upon such securities or any
    remuneration, in any form, from its affiliated casino licensee
    for services rendered or otherwise.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Nevada Gaming Commission may, in its discretion, require a
holder of the notes to file an application, be investigated and
be found suitable to hold the notes. In addition, the Nevada
Gaming Commission may, in its discretion, require the holder of
any debt security of a company registered by the Nevada Gaming
Commission as a publicly-traded corporation to file an
application, be investigated and be found suitable to own such
debt security.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a record or beneficial holder of a note is required by the
Nevada Gaming Commission to be found suitable, such owner will
be required to apply for a finding of suitability within
30&nbsp;days after request of such gaming authority or within
such earlier time prescribed by such gaming authority. The
applicant for a finding of suitability must pay all costs of the
application and investigation for such finding of suitability.
If the Nevada Gaming Commission determines that a person is
unsuitable to own such security, then, pursuant to the Nevada
Gaming Control Act, we can be sanctioned, including the loss of
our approvals, if, without the prior approval of the Nevada
Gaming Commission, we:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    pay to the unsuitable person any dividend, interest, or any
    distribution whatsoever;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    recognize any voting right of the unsuitable person with respect
    to such securities;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    pay the unsuitable person remuneration in any form;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    make any payment to the unsuitable person by way of principal,
    redemption, conversion, exchange, liquidation or similar
    transaction.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each holder of the notes will be deemed to have agreed, to the
extent permitted by law, that if the Nevada gaming authorities
determine that a holder or beneficial owner of the notes must be
found suitable, and if that holder or beneficial owner either
refuses to file an application or is found unsuitable, that
holder shall, upon our request, dispose of its notes within
30&nbsp;days after receipt of our request, or earlier as may be
ordered by the Nevada gaming authorities. We will also have the
right to call for the redemption of notes of any holder at any
time to prevent the loss or material impairment of a gaming
license or an application for a gaming license at a redemption
price equal to:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the lesser of the cost paid by the holder or the fair market
    value of the notes, in each case, plus accrued and unpaid
    interest and liquidated damages, if any, to the earlier of the
    date of redemption, or earlier as may be required by the Nevada
    gaming authorities or the finding of unsuitability by the Nevada
    gaming authorities;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    such other lesser amount as may be ordered by the Nevada gaming
    authorities.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will notify the trustee under the indenture in writing of any
redemption as soon as practicable. We will not be responsible
for any costs or expenses you may incur in connection with your
application for a license, qualification or a finding of
suitability, or your compliance with any other requirement of a
gaming authority. The indenture also provides that as soon as a
gaming authority requires you to sell your notes, you will, to
the extent required by applicable gaming laws, have no further
right:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    to exercise, directly or indirectly, any right conferred by the
    notes or the indenture;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    to receive from us any interest, dividends or any other
    distributions or payments, or any remuneration in any form,
    relating to the notes, except the redemption price we refer to
    above.</TD>
</TR>

</TABLE>

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

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Our general partner and its control person could exercise
their influence over us to your detriment.</I></B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Icahn, through affiliates, currently owns 100% of API,
our general partner, and approximately 86.5% of our outstanding
preferred units and approximately 90.0% of our depositary units,
and, as a result, has the ability to influence many aspects of
our operations and affairs. API also is the general partner of
AREH.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have invested and may in the future invest in entities in
which Mr.&nbsp;Icahn also invests or purchase investments from
him or his affiliates. Although API has never received fees in
connection with our investments, our partnership agreement
allows for the payment of these fees. Mr.&nbsp;Icahn may pursue
other business opportunities in which we compete and there is no
requirement that any additional business opportunities be
presented to us.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The interests of Mr.&nbsp;Icahn, including his interests in
entities in which he and we have invested or may invest in the
future, may differ from your interests as a noteholder and, as
such, he may take actions that may not be in your interest. For
example, if we encounter financial difficulties or are unable to
pay our debts as they mature, Mr.&nbsp;Icahn&#146;s interests
might conflict with your interests as a noteholder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, if Mr.&nbsp;Icahn were to sell, or otherwise
transfer, some or all of his interests in us to an unrelated
party or group, a change of control could be deemed to have
occurred under the terms of the indenture governing the notes
which would require us to offer to repurchase all outstanding
notes at 101% of their principal amount plus accrued and unpaid
interest and liquidated damages, if any, to the date of
repurchase. However, it is possible that we will not have
sufficient funds at the time of the change of control to make
the required repurchase of notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Certain of our management are committed to the management
of other businesses.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain of the individuals who conduct the affairs of API,
including our chairman, Mr. Icahn, and our chief executive
officer, Keith A. Meister, are, and will in the future be,
committed to the management of other businesses owned or
controlled by Mr.&nbsp;Icahn and his affiliates. Accordingly,
these individuals will not be devoting all of their professional
time to the management of us, and conflicts may arise between
our interests and the other entities or business activities in
which such individuals are involved. Conflicts of interest may
arise in the future as such affiliates and we may compete for
the same assets, purchasers and sellers of assets or financings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Since we are a limited partnership, you may not be able to
pursue legal claims against us in U.S.&nbsp;federal
courts.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are a limited partnership organized under the laws of the
state of Delaware. Under the rules of federal civil procedure,
you may not be able to sue us in federal court on claims other
than those based solely on federal law, because of lack of
complete diversity. Case law applying diversity jurisdiction
deems us to have the citizenship of each of our limited
partners. Because we are a publicly traded limited partnership,
it may not be possible for you to sue us in a federal court
because we have citizenship in all 50 U.S.&nbsp;states and
operations in many states. Accordingly, you will be limited to
bringing any claims in state court. Furthermore, AREP Finance,
our corporate co-issuer for the notes, has only nominal assets
and no operations. While you may be able to sue the corporate
co-issuer in federal court, you are not likely to be able to
realize on any judgment rendered against it.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>We may be subject to the pension liabilities of our
affiliates.</I></B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Icahn, through certain affiliates, currently owns 100%
of API and approximately 86.5% of our outstanding depositary
units and preferred units. Applicable pension and tax laws make
each member of a &#147;controlled group&#148; of entities,
generally defined as entities in which there is at least an 80%
common ownership interest, jointly and severally liable for
certain pension plan obligations of any member of the controlled
group. These pension obligations include ongoing contributions
to fund the plan, as well as liability for any unfunded
liabilities that may exist at the time the plan is terminated.
In addition, the failure to pay these pension obligations when
due may result in the creation of liens in favor of the pension
plan or the
</DIV>

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

</FONT></DIV>

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

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<DIV align="left" style="font-size: 10pt;">
Pension Benefit Guaranty Corporation, or the PBGC, against the
assets of each member of the controlled group.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a result of the more than 80% ownership interest in us by
Mr.&nbsp;Icahn&#146;s affiliates, we and our subsidiaries, are
subject to the pension liabilities of all entities in which
Mr.&nbsp;Icahn has a direct or indirect ownership interest of at
least 80%. One such entity, ACF&nbsp;Industries LLC, is the
sponsor of several pension plans which are underfunded by a
total of approximately $23.7&nbsp;million on an ongoing
actuarial basis and $175.4&nbsp;million if those plans were
terminated, as most recently reported by the plans&#146;
actuaries. These liabilities could increase or decrease,
depending on a number of factors, including future changes in
promised benefits, investment returns, and the assumptions used
to calculate the liability. As members of the controlled group,
we would be liable for any failure of ACF to make ongoing
pension contributions or to pay the unfunded liabilities upon a
termination of the ACF pension plans. In addition, other
entities now or in the future within the controlled group that
includes us may have pension plan obligations that are, or may
become, underfunded and we would be liable for any failure of
such entities to make ongoing pension contributions or to pay
the unfunded liabilities upon a termination of such plans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The current underfunded status of the ACF&nbsp;pension plans
requires ACF to notify the PBGC of certain &#147;reportable
events,&#148; such as if we cease to be a member of the
ACF&nbsp;controlled group, or if we make certain extraordinary
dividends or stock redemptions. The obligation to report could
cause us to seek to delay or reconsider the occurrence of such
reportable events.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Starfire Holding Corporation, which is 100% owned by
Mr.&nbsp;Icahn, has undertaken to indemnify us and our
subsidiaries from losses resulting from any imposition of
pension funding or termination liabilities that may be imposed
on us and our subsidiaries or our assets as a result of being a
member of the Icahn controlled group. The Starfire indemnity
provides, among other things, that so long as such contingent
liabilities exist and could be imposed on us, Starfire will not
make any distributions to its stockholders that would reduce its
net worth to below $250.0&nbsp;million. Nonetheless, Starfire
may not be able to fund its indemnification obligations to us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>We are subject to the risk of possibly becoming an
investment company.</I></B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Because we are a holding company and a significant portion of
our assets consists of investments in companies in which we own
less than a 50% interest, we run the risk of inadvertently
becoming an investment company that is required to register
under the Investment Company Act of 1940, as amended. Registered
investment companies are subject to extensive, restrictive and
potentially adverse regulation relating to, among other things,
operating methods, management, capital structure, dividends and
transactions with affiliates. Registered investment companies
are not permitted to operate their business in the manner in
which we operate our business, nor are registered investment
companies permitted to have many of the relationships that we
have with our affiliated companies.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To avoid regulation under the Investment Company Act, we monitor
the value of our investments and structure transactions with an
eye toward the Investment Company Act. As a result, we may
structure transactions in a less advantageous manner than if we
did not have Investment Company Act concerns, or we may avoid
otherwise economically desirable transactions due to those
concerns. In addition, events beyond our control, including
significant appreciation or depreciation in the market value of
certain of our publicly traded holdings, could result in our
inadvertently becoming an investment company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If it were established that we were an investment company, there
would be a risk, among other material adverse consequences, that
we could become subject to monetary penalties or injunctive
relief, or both, in an action brought by the SEC, that we would
be unable to enforce contracts with third parties or that third
parties could seek to obtain rescission of transactions with us
undertaken during the period it was established that we were an
unregistered investment company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>We may become taxable as a corporation.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We operate as a partnership for federal income tax purposes.
This allows us to pass through our income and deductions to our
partners. We believe that we have been and are properly treated
as a partnership for
</DIV>

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<DIV align="left" style="font-size: 10pt;">
federal income tax purposes. However, the Internal Revenue
Service, or IRS, could challenge our partnership status and we
could fail to qualify as a partnership for past years as well as
future years. Qualification as a partnership involves the
application of highly technical and complex provisions of the
Internal Revenue Code of 1986, as amended. For example, a
publicly traded partnership is generally taxable as a
corporation unless 90% or more of its gross income is
&#147;qualifying&#148; income, which includes interest,
dividends, real property rents, gains from the sale or other
disposition of real property, gain from the sale or other
disposition of capital assets held for the production of
interest or dividends, and certain other items. We believe that
in all prior years of our existence at least 90% of our gross
income was qualifying income and we intend to structure our
business in a manner such that at least 90% of our gross income
will constitute qualifying income this year and in the future.
However, there can be no assurance that such structuring will be
effective in all events to avoid the receipt of more than 10% of
non-qualifying income. If less than 90% of our gross income
constitutes qualifying income, we may be subject to corporate
tax on our net income at regular corporate tax rates. Further,
if less than 90% of our gross income constituted qualifying
income for past years, we may be subject to corporate level tax
plus interest and possibly penalties. In addition, if we
register under the Investment Company Act of 1940, it is likely
that we would be treated as a corporation for U.S.&nbsp;federal
income tax purposes and subject to corporate tax on our net
income at regular corporate tax rates. The cost of paying
federal and possibly state income tax, either for past years or
going forward, would be a significant liability and would reduce
our funds available to make interest and principal payments on
the notes.
</DIV>

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

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Risks Relating to Our Business</B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Home Fashion</B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>A recent court decision and order may reduce our ownership
of WestPoint International, Inc. to less than 50%. Uncertainties
arising from this decision and order may adversely affect
WestPoint International&#146;s operations and financing.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On November&nbsp;16, 2005, the U.S. District Court for the
Southern District of New York rendered a decision and order in
<I>Contrarian Funds Inc. v. WestPoint Stevens, Inc. et. al.</I>
with respect to the appeal by Contrarian and certain other first
lien lenders of WestPoint Stevens Inc. or other Objecting
Lenders, from certain provisions of the Order Authorizing Sale
of Substantially all of the Sellers&#146; Assets Free and Clear
of Liens, Claims, Encumbrances and Interests, the Assumption of
Certain Liabilities, Approval of Successful Bidder and certain
related matters entered by the U.S. Bankruptcy Court on
July&nbsp;8, 2005, as amended on July&nbsp;11, 2005, or the Sale
Order. The Sale Order, among other things, authorized the sale
of substantially all of the assets of WestPoint Stevens and
related entities to a newly formed company, WestPoint
International, Inc.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Court concluded, among other things, that provisions of the
Sale Order providing for the satisfaction of the Objecting
Lenders&#146; claims and the elimination of the liens in their
favor by the distribution to them of shares of common stock of
WestPoint International was not authorized by applicable law or
contracts. The Court remanded the matter to the Bankruptcy Court
for further proceedings consistent with its decision and order.
The Court&#146;s decision did not disturb the sale of assets by
WestPoint Stevens to WestPoint International.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We, through our subsidiary, Textile Holding LLC, currently own
approximately 67.7% of the 19,498,389 outstanding shares of
common stock of WestPoint International. As a result of the
decision and order, our percentage of the outstanding shares of
common stock of WestPoint International could, in certain
circumstances, be reduced to less than 50% of the outstanding
shares of common stock of WestPoint International. We disagreed
with the decision and order and intend to appeal. This
uncertainty regarding control may adversely affect WestPoint
International&#146;s ability to deal effectively with its
customers, suppliers and financing sources. Accordingly,
WestPoint International&#146;s operations and financing may be
adversely affected if WestPoint International is unable to
satisfactorily address such uncertainty.
</DIV>

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

</FONT></DIV>

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

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>WestPoint International recently acquired its business
from the former owners through bankruptcy proceedings. We cannot
assure you that it will be able to operate profitably.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WestPoint International acquired the business of WestPoint
Stevens as part of its bankruptcy reorganization. Certain of the
issues that contributed to WestPoint Stevens&#146; filing for
bankruptcy, such as intense industry competition, the inability
to produce goods at a cost competitive with overseas suppliers,
the increasing prevalence of direct sourcing by principal
customers and continued incurrence of overhead costs associated
with an enterprise larger than the current business can
profitably support, continue to exist and may continue to affect
WestPoint International&#146;s business operations and financial
condition adversely. In addition, during the protracted
bankruptcy proceedings of WestPoint Stevens, several of its
customers reduced the volume of business done with WestPoint
Stevens, apparently due to concerns about WestPoint
Stevens&#146; ability to continue to operate. Although we
believe that recent actions taken by us and WestPoint
International&#146;s management may have allayed customer
concerns about the survival of WestPoint International&#146;s
business, we cannot be certain that we will reverse the decline
that has been precipitated by doubts about WestPoint
International&#146;s future. If we are unable to successfully
address these issues relating to the operation of WestPoint
International&#146;s business, WestPoint International will
continue to lose revenues. We have installed new management to
address these issues, but we cannot assure you that new
management will be effective. We have hired a large majority of
WestPoint Stevens&#146; employees and have initiated new benefit
plans. We cannot assure you that these changes will not
adversely affect our employee relations and, ultimately, our
financial results. We expect that WestPoint International will
operate at a loss during the current year and we cannot assure
you that it will be able to operate profitably in the future.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>WestPoint International may not be able to secure
additional financing to meet its future needs.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We anticipate that operating cash flow, together with available
borrowings under a proposed WestPoint International senior
secured revolving credit facility, will be sufficient to meet
its working capital needs, fund its capital expenditures and
service requirements on its debt obligations for at least the
next 12&nbsp;months. However, WestPoint International has not
yet obtained the revolving credit facility and we cannot assure
you that it will be able to do so on terms that are acceptable
to us. In addition, we have not yet ascertained the full extent
to which additional capital will be required to retain WestPoint
International&#146;s customers and make investments required to
attain a competitive cost structure. As a result, we cannot
assure you that WestPoint International will be able to obtain
the capital that will be required to continue operations.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
From time to time, WestPoint International may explore
additional financing methods and other means to make needed
investments. Such financing methods could include stock issuance
or debt financing. If WestPoint International&#146;s business
does not improve, such financing may not be available or may be
available only on terms that are not advantageous and
potentially highly dilutive to existing stockholders. Additional
financing may not be available to WestPoint International on
acceptable terms.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>The home fashion industry is cyclical and seasonal.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The home fashion industry is both cyclical and seasonal, which
affects WestPoint International&#146;s performance.
Traditionally, the home fashion industry is seasonal, with a
peak sales season in the fall. In response to this seasonality,
WestPoint International increases its inventory levels during
the first six months of the year to meet customer demands for
the peak fall season. In addition, the home fashion industry is
traditionally cyclical and WestPoint International performance
may be negatively affected by downturns in consumer spending.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>The loss of any of our large customers could reduce
WestPoint International&#146;s revenues.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During both the nine months ended September&nbsp;30, 2005 and
the year ended December&nbsp;31, 2004, WestPoint
International&#146;s six largest customers accounted for
approximately 51%, of its net sales (including net sales by
WestPoint Stevens). WestPoint International has experienced a
significant decline in net sales to one of its largest
customers. Sales to this customer have declined from
$202.4&nbsp;million for the year ended December&nbsp;31, 2004 to
$41.0&nbsp;million for the nine months ended September&nbsp;30,
2005 (including net sales by
</DIV>

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

</FONT></DIV>

<P align="center" style="font-size: 10pt;">19
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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt;">
WestPoint Stevens). In addition, many other retailers have
indicated that they intend to significantly increase their
direct sourcing of home fashion products from foreign sources.
The loss of any of WestPoint International&#146;s largest
accounts, or a material portion of sales to those accounts,
would have an adverse effect upon its business, which could be
material.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>The $250&nbsp;million senior secured revolving credit
facility that WestPoint Home is negotiating will impose
operating and financial restrictions on WestPoint Home and may
have adverse consequences to us.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WestPoint Home, WestPoint International&#146;s primary operating
company, and its subsidiaries are negotiating to obtain a
$250&nbsp;million senior secured revolving credit facility
which, upon the entering into of the credit facility, is
expected to impose various operating and financial restrictions
on WestPoint Home and its subsidiaries. These restrictions
include limitations on indebtedness, liens, asset sales,
transactions with affiliates, acquisitions, mergers, capital
expenditures, dividends, and investments.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon entering into the senior secured revolving credit facility
and drawing upon available funding, WestPoint International will
have a substantial amount of indebtedness. This could have
important consequences, including without limitation, the
following:
</DIV>

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

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
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<TR><TD><FONT size="1">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    increase WestPoint International&#146;s vulnerability to general
    adverse economic and industry conditions;</TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    limit WestPoint International&#146;s ability to borrow money to
    fund future working capital, capital expenditures, debt service
    requirements and other general corporate requirements;</TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    require WestPoint International to dedicate a substantial
    portion of its cash flow from operations to payments on its
    indebtedness, thereby reducing its ability to use its cash flow
    for other purposes;</TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    limit WestPoint International&#146;s flexibility in planning
    for, or reacting to, changes in its business and the industry in
    which it operates;</TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    make it more difficult for WestPoint International to meet its
    debt service obligations in the event that there is a
    substantial increase in interest rates because its indebtedness
    under its senior credit facility will bear interest at
    fluctuating rates; and</TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    place WestPoint International at a competitive disadvantage
    compared to competitors that have less debt.</TD>
</TR>

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

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

</TABLE>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WestPoint International&#146;s indebtedness levels could also
limit its business opportunities. If WestPoint
International&#146;s cash flow and capital resources are
insufficient to fund its debt service obligations, it may be
forced to reduce or delay capital expenditures, sell assets or
seek to obtain additional equity capital or to refinance or
restructure our indebtedness.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>A portion of WestPoint International&#146;s sales are
derived from licensed designer brands. The loss of a significant
license could have an adverse effect on our business.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A portion of WestPoint International&#146;s sales is derived
from licensed designer brands. The license agreements for
WestPoint International&#146;s designer brands generally are for
a term of two or three years. Some of the licenses are
automatically renewable for additional periods, provided that
sales thresholds set forth in the license agreements are met.
The loss of a significant license could have an adverse effect
upon WestPoint International&#146;s business, which effect could
be material. Under certain circumstances, these licenses can be
terminated without WestPoint International&#146;s consent due to
circumstances beyond WestPoint International&#146;s control.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Although most of the significant licenses of WestPoint Stevens
were transferred to WestPoint International, WestPoint Stevens
had a nonexclusive license agreement with Disney Enterprises,
Inc. for the sale of bed and bath products under Disney
trademarks with a termination date of December&nbsp;31, 2005
that was not transferred to WestPoint International. WestPoint
International has reached an understanding with Disney that
allows for the continued sale of products under the Disney
agreement until February&nbsp;28, 2006 for sales in the United
States and March&nbsp;31, 2006 for sales in Canada. Sales of
products under the Disney agreement accounted for 3.0% of net
sales for the nine months ended September&nbsp;30, 2005 and 2.7%
of net sales for the
</DIV>

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

</FONT></DIV>

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

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt;">
year ended December&nbsp;31, 2004, including net sales by
WestPoint Stevens. The loss of the ability to sell products
under the Disney agreement after those dates will adversely
affect WestPoint International&#146;s business.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>A shortage of the principal raw materials WestPoint
International uses to manufacture its products could force
WestPoint International to pay more for those materials and,
possibly, cause WestPoint International to increase its prices,
which could have an adverse effect on operations.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any shortage in the raw materials WestPoint International uses
to manufacture its products could adversely affect its
operations. The principal raw materials that WestPoint
International uses in the manufacture of its products are cotton
of various grades and staple lengths and polyester and nylon in
staple and filament form. Since cotton is an agricultural
product, its supply and quality are subject to weather patterns,
disease and other factors. The price of cotton is also
influenced by supply and demand considerations, both
domestically and worldwide, and by the cost of polyester.
Although WestPoint International has been able to acquire
sufficient quantities of cotton for its operations in the past,
any shortage in the cotton supply by reason of weather, disease
or other factors, or a significant increase in the price of
cotton, could adversely affect its operations. The price of
man-made fibers, such as polyester and nylon, is influenced by
demand, manufacturing capacity and costs, petroleum prices,
cotton prices and the cost of polymers used in producing these
fibers. In particular, the effect of increased energy prices may
have a direct impact upon the cost of dye and chemicals,
polyester and other synthetic fibers. Any significant prolonged
petrochemical shortages could significantly affect the
availability of man-made fibers and could cause a substantial
increase in demand for cotton. This could result in decreased
availability of cotton and possibly increased prices and could
adversely affect WestPoint International&#146;s operations.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>The home fashion industry is very competitive and our
success depends on our ability to compete effectively in the
market.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The home fashion industry is highly competitive. WestPoint
International&#146;s future success will, to a large extent,
depend on its ability to remain a low-cost producer and to
remain competitive. WestPoint International competes with both
foreign and domestic companies on, among other factors, the
basis of price, quality and customer service. In the sheet and
towel markets, WestPoint International competes primarily with
Springs Industries, Inc. which has recently announced plans to
enter into a joint venture with a major Latin American textile
producer. In the other bedding and accessories markets,
WestPoint International competes with many companies. WestPoint
International&#146;s future success depends on its ability to
remain competitive in the areas of marketing, product
development, price, quality, brand names, manufacturing
capabilities, distribution and order processing. We cannot
assure you of our ability to compete effectively in any of these
areas. Any failure to compete effectively could adversely affect
WestPoint International&#146;s sales and, accordingly, its
operations. Additionally, the easing of trade restrictions over
time has led to growing competition from low priced products
imported from Asia and Latin America. The lifting of import
quotas in 2005 has accelerated the loss of WestPoint
International&#146;s market share. There can be no assurance
that the foreign competition will not grow to a level that could
have an adverse effect upon WestPoint International&#146;s
ability to compete effectively.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>WestPoint International intends to increase the percentage
of its products that are made overseas. There is no assurance
that WestPoint International will be successful in obtaining
goods of sufficient quality on a timely basis and on
advantageous terms. WestPoint International will be subject to
additional risks relating to doing business overseas.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WestPoint International intends to increase the percentage of
its products that are made overseas and may face additional
risks associated with these efforts. WestPoint International has
only limited experience in overseas procurement and,
accordingly, we cannot assure you that it will be successful in
obtaining goods of
</DIV>

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

</FONT></DIV>

<P align="center" style="font-size: 10pt;">21
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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt;">
sufficient quality on a timely basis and on advantageous terms.
Adverse factors that WestPoint International may encounter
include:
</DIV>

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

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    challenges caused by distance, language and cultural differences;</TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    legal and regulatory restrictions;</TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the difficulty of enforcing agreements with overseas suppliers;</TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    currency exchange rate fluctuations;</TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    political and economic instability;</TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    potential adverse tax consequences;&nbsp;and</TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    higher costs associated with doing business internationally.</TD>
</TR>

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

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

</TABLE>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>There has been consolidation of retailers of WestPoint
International&#146;s products that may reduce its
profitability.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Retailers of consumer goods have become fewer and more powerful
over time. As buying power has become more concentrated, pricing
pressure on vendors has grown. With the ability to buy imported
products directly from foreign sources, retailers&#146; pricing
leverage has increased and also allowed for growth in private
label that displace and compete with WestPoint
International&#146;s proprietary brands. Retailers&#146; pricing
leverage has resulted in a decline in WestPoint
International&#146;s unit pricing and margins and resulted in a
shift in product mix to more private label programs. If
WestPoint International is unable to diminish the decline in its
pricing and margins, it may not be able to maintain or achieve
profitability.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>WestPoint International is subject to various federal,
state and local environmental and health and safety laws and
regulations. If it does not comply with these regulations, it
may incur significant costs in the future to become
compliant.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WestPoint International is subject to various federal, state and
local laws and regulations governing, among other things, the
discharge, storage, handling, usage and disposal of a variety of
hazardous and non-hazardous substances and wastes used in, or
resulting from, its operations, including potential remediation
obligations under those laws and regulations WestPoint
International&#146;s operations are also governed by federal,
state and local laws and regulations relating to employee safety
and health which, among other things, establish exposure
limitations for cotton dust, formaldehyde, asbestos and noise,
and which regulate chemical, physical and ergonomic hazards in
the workplace. Although WestPoint International does not expect
that compliance with any of these laws and regulations will
adversely affect its operations, we cannot assure you that
regulatory requirements will not become more stringent in the
future or that WestPoint International will not incur
significant costs to comply with those requirements.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Hotel and Casino Operations</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>The gaming industry is highly regulated. The gaming
authorities and state and municipal licensing authorities have
significant control over our operations.</I></B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our properties currently conduct licensed gaming operations in
Nevada and New Jersey. We currently own approximately 58.3% of
the stock of Atlantic Holdings. Atlantic Holdings through its
wholly-owned subsidiary owns and operates The Sands Hotel and
Casino. Various regulatory authorities, including the Nevada
State Gaming Control Board, Nevada Gaming Commission and the New
Jersey Casino Control Commission, require our properties and The
Sands Hotel and Casino to hold various licenses and
registrations, findings of suitability, permits and approvals to
engage in gaming operations and to meet requirements of
suitability. These gaming authorities also control approval of
ownership interests in gaming operations. These gaming
authorities may deny, limit, condition, suspend or revoke our
gaming licenses, registrations, findings of suitability or the
approval of any of our ownership interests in any of the
licensed gaming operations conducted in Nevada and New Jersey,
any of which could have a significant adverse effect on our
business, financial
</DIV>

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

</FONT></DIV>

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

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<DIV align="left" style="font-size: 10pt;">
condition and results of operations, for any cause they may deem
reasonable. If we violate gaming laws or regulations that are
applicable to us, we may have to pay substantial fines or
forfeit assets. If, in the future, we operate or have an
ownership interest in casino gaming facilities located outside
of Nevada or New Jersey, we may also be subject to the gaming
laws and regulations of those other jurisdictions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The sale of alcoholic beverages at our Nevada properties is
subject to licensing and regulation by the City of
Las&nbsp;Vegas and Clark&nbsp;County, Nevada. The City of
Las&nbsp;Vegas and Clark&nbsp;County have full power to limit,
condition, suspend or revoke any such license, and any such
disciplinary action may, and revocation would, reduce the number
of visitors to our Nevada casinos to the extent the availability
of alcoholic beverages is important to them. If our alcohol
licenses become in any way impaired, it would reduce the number
of visitors. Any reduction in our number of visitors will reduce
our revenue and cash flow.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Rising operating costs for our gaming and entertainment
properties could have a negative impact on our
profitability.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The operating expenses associated with our gaming and
entertainment properties could increase due to some of the
following factors:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    potential changes in the tax or regulatory environment which
    impose additional restrictions or increase operating costs;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our properties use significant amounts of electricity, natural
    gas and other forms of energy, and energy price increases may
    reduce our working capital;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our Nevada properties use significant amounts of water and a
    water shortage may adversely affect our operations;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    an increase in the cost of health care benefits for our
    employees could have a negative impact on our profitability;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    some of our employees are covered by collective bargaining
    agreements and we may incur higher costs or work slow-downs or
    stoppages due to union activities;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our reliance on slot machine revenues and the concentration of
    manufacturing of slot machines in certain companies could impose
    additional costs on us;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our insurance coverage may not be adequate to cover all possible
    losses and our insurance costs may increase.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>We face substantial competition in the hotel and casino
industry.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The hotel and casino industry in general, and the markets in
which we compete in particular, are highly competitive.
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    we compete with many world class destination resorts with
    greater name recognition, different attractions, amenities and
    entertainment options;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    we compete with the continued growth of gaming on Native
    American tribal lands;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the existence of legalized gambling in other jurisdictions may
    reduce the number of visitors to our properties;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    certain states have legalized, and others may legalize, casino
    gaming in specific venues, including race tracks and/or in
    specific areas, including metropolitan areas from which we
    traditionally attract customers;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our properties also compete and will in the future compete with
    all forms of legalized gambling.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Many of our competitors have greater financial, selling and
marketing, technical and other resources than we do. We may not
be able to compete effectively with our competitors and we may
lose market share, which could reduce our revenue and cash flow.
</DIV>

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<B><I>Economic downturns, terrorism and the uncertainty of war,
as well as other factors affecting discretionary consumer
spending, could reduce the number of our visitors or the amount
of money visitors spend at our casinos.</I></B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The strength and profitability of our business depends on
consumer demand for hotel-casino resorts and gaming in general
and for the type of amenities we offer. Changes in consumer
preferences or discretionary consumer spending could harm our
business.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During periods of economic contraction, our revenues may
decrease while some of our costs remain fixed, resulting in
decreased earnings, because the gaming and other leisure
activities we offer at our properties are discretionary
expenditures, and participation in these activities may decline
during economic downturns because consumers have less disposable
income. Even an uncertain economic outlook may adversely affect
consumer spending in our gaming operations and related
facilities, as consumers spend less in anticipation of a
potential economic downturn. Additionally, rising gas prices
could deter non-local visitors from traveling to our properties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The terrorist attacks which occurred on September&nbsp;11, 2001,
the potential for future terrorist attacks and wars in
Afghanistan and Iraq have had a negative impact on travel and
leisure expenditures, including lodging, gaming and tourism.
Leisure and business travel, especially travel by air, remain
particularly susceptible to global geopolitical events. Many of
the customers of our properties travel by air, and the cost and
availability of air service can affect our business.
Furthermore, insurance coverage against loss or business
interruption resulting from war and some forms of terrorism may
be unavailable or not available on terms that we consider
reasonable. We cannot predict the extent to which war, future
security alerts or additional terrorist attacks may interfere
with our operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Our hotels and casinos may need to increase capital
expenditures to compete effectively.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Capital expenditures, such as room refurbishments, amenity
upgrades and new gaming equipment, may be necessary from time to
time to preserve the competitiveness of our hotels and casinos.
The gaming industry market is very competitive and is expected
to become more competitive in the future. If cash from
operations is insufficient to provide for needed levels of
capital expenditures, the competitive position of our hotels and
casinos could deteriorate if our hotels and casinos are unable
to raise funds for such purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Increased state taxation of gaming and hospitality
revenues could adversely affect our hotel and casinos&#146;
results of operations.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The casino industry represents a significant source of tax
revenues to the various jurisdictions in which casinos operate.
Gaming companies are currently subject to significant state and
local taxes and fees in addition to normal federal and state
corporate income taxes. For example, casinos in Atlantic City
pay for licenses as well as special taxes to the city and state,
including taxes on annual gaming revenues, an annual investment
alternative tax on annual gaming revenues, on casino
complimentaries and on casino service industry multi-casino
progressive slot machine revenue, a daily fee on each hotel room
in a casino hotel facility that is occupied by a guest for
consideration or as a complimentary item and a hotel parking
charge.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Future changes in state taxation of casino gaming companies
cannot be predicted and any such changes could adversely affect
the operating results of our hotels and casino.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>The Sands Hotel and Casino&#146;s operating results are
subject to seasonality.</I></B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Sands Hotel and Casino&#146;s quarterly operating results
are highly volatile and subject to unpredictable fluctuations.
The Sands Hotel and Casino historically experienced greater
revenues in the summer. Future results may be more or less
seasonal than historical results. The Sands Hotel and
Casino&#146;s operating results for any given quarter may not
meet expectations or conform to the operating results of The
Sands Hotel and Casino&#146;s local, regional or national
competitors. Conversely, favorable operating results in any
given quarter may be followed by an unexpected downturn in
subsequent quarters.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>The Sands Hotel and Casino is exposed to certain risks
related to the creditworthiness of its patrons.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Historically, The Sands Hotel and Casino has extended credit on
a discretionary basis to certain qualified patrons. For the nine
months ended September&nbsp;30, 2005, gaming credit extended to
The Sands Hotel and
</DIV>

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

</FONT></DIV>

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</FONT></DIV>

<DIV align="left" style="font-size: 10pt;">
Casino&#146;s table game patrons accounted for approximately
19.1% of overall table game wagering, and table game wagering
accounted for approximately 19.7% of overall casino wagering
during the period. At September&nbsp;30, 2005, gaming
receivables amounted to $6.1&nbsp;million before an allowance
for uncollectible gaming receivables of $3.4&nbsp;million. There
can be no assurance that defaults in the repayment of credit by
patrons of The Sands Hotel and Casino would not have a material
adverse effect on the results of operations of The Sands Hotel
and Casino.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>The Sands Hotel and Casino recently has incurred operating
losses which could result in our determining that, for financial
reporting purposes, our investment has been impaired.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During 2005, The Sands Hotel and Casino began to incur operating
losses relating to its operations. However, The Sands Hotel and
Casino continues to generate positive cash flow. We believe that
The Sands Hotel and Casino efforts to improve profitability may
lead to a reversal of these operating losses. However, as there
is no guarantee that these efforts will be successful, we
continue to evaluate whether there is an impairment under
Statement of Financial Accounting Standards No.&nbsp;144,
&#147;Accounting for the Impairment or Disposal of Long-lived
Assets&#148;, or SFAS&nbsp;144. In the event that a change in
operations results in a future reduction of cash flows, we may
determine an impairment under SFAS&nbsp;144 has occurred at The
Sands Hotel and Casino, and an impairment charge may be required.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Creditors of GB Holdings have indicated that they intend
to challenge the transactions consummated in July 2004, which,
among other things resulted in the transfer of The Sands Hotel
&#38; Casino to ACE Gaming, and intend to attempt to subordinate
our claims against GB Holdings to those of other
creditors.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We own approximately 77.5% of the outstanding GB Holdings common
stock. GB Holdings&#146; principal asset is 41.7% of the
outstanding common stock of Atlantic Holdings. On
September&nbsp;29, 2005, GB Holdings filed for protection under
Chapter&nbsp;11 of the U.S.&nbsp;Bankruptcy Code. As a result we
determined that we no longer control GB Holdings under
applicable accounting rules and have deconsolidated our
investment for financial reporting purposes. Creditors of GB
Holdings have indicated that they may challenge the transactions
in July 2004 that, among other things, resulted in the transfer
of The Sands Hotel&nbsp;&#38; Casino to ACE Gaming, the exchange
of GB Holdings&#146; notes for 3%&nbsp;Senior Secured
convertible notes of Atlantic Holdings, and, ultimately, our
owning 58.7% of the Atlantic Coast common stock. The creditors
also have indicated that, if they succeed in challenging these
transactions, they may attempt to subordinate, in bankruptcy,
AREP&#146;s claims against GB Holdings to those of the creditors.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Additionally, on September&nbsp;2, 2005, Robino Stortini
Holdings, LLC, or RSH, which claims to own beneficially
1,652,590 shares of common stock of GB Holdings, filed a
complaint in the Court of Chancery of the State of Delaware
against GB Holdings and the six members of its board or
directors. Three of the GB Holdings directors include a director
and two officers of our general partner. RSH alleges five counts
against the defendants and seeks as relief the appointment of a
custodian and receiver for GB Holdings and, among other things,
a declaration that the director defendants breached their
fiduciary duties and an award of unspecified compensatory
damages as well as attorneys&#146; fees and costs. We are not a
party in either lawsuit however claims under the RSH litigation
may be subject to indemnification by us.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Oil and Gas</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>We face substantial risks in the oil and gas
industry.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The exploration for and production of oil and gas involves
numerous risks. The cost of drilling, completing and operating
wells for oil or gas is often uncertain, and a number of factors
can delay or prevent drilling operations or production,
including:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    unexpected drilling conditions;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    pressure or irregularities in formation;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    equipment failures or repairs;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    fires or other accidents;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">25
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<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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    adverse weather conditions;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    pipeline ruptures or spills;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    shortages or delays in the availability of drilling rigs and the
    delivery of equipment.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>The oil and gas industry is subject to environmental
regulation by state and federal agencies.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our existing operations and the operations that we expect to
acquire are affected by extensive regulation through various
federal, state and local laws and regulations relating to the
exploration for and development, production, gathering and
marketing of oil and gas. Matters subject to regulation include
discharge permits for drilling operations, drilling and
abandonment bonds or other financial responsibility
requirements, reports concerning operations, the spacing of
wells, unitization and pooling of properties, and taxation. From
time to time, regulatory agencies have imposed price controls
and limitations on production by restricting the rate of flow of
oil and gas wells below actual production capacity in order to
conserve supplies of oil and gas.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our operations are also subject to numerous environmental laws,
including but not limited to, those governing management of
waste, protection of water, air quality, the discharge of
materials into the environment, and preservation of natural
resources. Non-compliance with environmental laws and the
discharge of oil, natural gas, or other materials into the air,
soil or water may give rise to liabilities to the government and
third parties, including civil and criminal penalties, and may
require us to incur costs to remedy the discharge. Oil and gas
may be discharged in many ways, including from a well or
drilling equipment at a drill site, leakage from pipelines or
other gathering and transportation facilities, leakage from
storage tanks, and sudden discharges from oil and gas wells or
explosion at processing plants. Hydrocarbons tend to degrade
slowly in soil and water, which makes remediation costly, and
discharged hydrocarbons may migrate through soil and water
supplies or adjoining property, giving rise to additional
liabilities. Laws and regulations protecting the environment
have become more stringent in recent years, and may in certain
circumstances impose retroactive, strict, and joint and several
liabilities rendering entities liable for environmental damage
without regard to negligence or fault. In the past, we have
agreed to indemnify sellers of producing properties against
certain liabilities for environmental claims associated with
those properties. We cannot assure you that new laws or
regulations, or modifications of or new interpretations of
existing laws and regulations, will not substantially increase
the cost of compliance or otherwise adversely affect our oil and
gas operations and financial condition or that material
indemnity claims will not arise with respect to properties that
we acquire. While we do not anticipate incurring material costs
in connection with environmental compliance and remediation, we
cannot guarantee that material costs will not be incurred.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>We may experience difficulty finding and acquiring
additional reserves and be unable to compensate for the
depletion of our proved reserves.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our future success and growth depends upon the ability to find
or acquire additional oil and gas reserves that are economically
recoverable. Except to the extent that we conduct successful
exploration or development activities or acquire properties
containing proved reserves, our proved reserves will generally
decline as they are produced. The decline rate varies depending
upon reservoir characteristics and other factors. Our future oil
and gas reserves and production, and, therefore, cash flow and
income are highly dependent upon the level of success in
exploiting our current reserves and acquiring or finding
additional reserves. The business of exploring for, developing
or acquiring reserves is capital intensive. To the extent cash
flow from operations is reduced and external sources of capital
become limited or unavailable, our ability to make the necessary
capital investments to maintain or expand this asset base of oil
and gas reserves could be impaired. Development projects and
acquisition activities may not result in additional reserves. We
may not have success drilling productive wells at economic
returns sufficient to replace our current and future production.
We may acquire reserves which contain undetected problems or
issues that did not initially appear to be significant to us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Reservoir engineering is a subjective process of estimating the
volumes of underground accumulations of oil and gas which cannot
be measured precisely. The accuracy of any reserve estimates is
a function of the quality of available data and of engineering
and geological interpretation and judgment. Reserve estimates
</DIV>

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<DIV align="left" style="font-size: 10pt;">
prepared by other engineers might differ from the estimates
contained herein. Results of drilling, testing, and production
subsequent to the date of the estimate may justify revision of
such estimate. Future prices received for the sale of oil and
gas may be different from those used in preparing these reports.
The amounts and timing of future operating and development costs
may also differ from those used. Accordingly, reserve estimates
are often different from the quantities of oil and gas that are
ultimately recovered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Proved reserves are the estimated quantities of natural gas,
condensate and oil that geological and engineering data
demonstrate with reasonable certainty to be recoverable in
future years from known reservoirs under existing economic and
operating conditions. Proved developed reserves are proved
reserves that can be expected to be recovered through existing
wells with existing equipment and operating methods. The
estimation of reserves requires substantial judgment on the part
of petroleum engineers, resulting in imprecise determinations,
particularly with respect to recent discoveries. The accuracy of
any reserve estimate depends on the quality of available data
and engineering and geological interpretation and judgment.
Results of drilling, testing and production after the date of
the estimate may result in revisions of the estimate.
Accordingly, estimates of reserves are often materially
different from the quantities of natural gas, condensate and oil
that are ultimately recovered, and these estimates will change
as future production and development information becomes
available. The reserve data represent estimates only and should
not be construed as being exact.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Difficulties in exploration and development could
adversely affect our financial condition.</I></B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The costs of drilling all types of wells are uncertain, as are
the quantity of reserves to be found, the prices that we will
receive for the oil or natural gas and the costs of operating
each well. While we have successfully drilled wells, you should
know that there are inherent risks in doing so, and those
difficulties could materially affect our financial condition and
results of operations. Also, just because we complete a well and
begin producing oil or natural gas, we cannot assure you that we
will recover our investment or make a profit.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Oil and gas prices are likely to be volatile.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our revenues, profitability and the carrying value of oil and
gas properties are substantially dependent upon prevailing
prices of, and demand for, oil and gas and the costs of
acquiring, finding, developing and producing reserves.
Historically, the markets for oil and gas have been volatile.
Markets for oil and gas likely will continue to be volatile in
the future. Prices for oil and gas are subject to wide
fluctuations in response to: (1)&nbsp;relatively minor changes
in the supply of, and demand for, oil and gas; (2)&nbsp;market
uncertainty; and (3)&nbsp;a variety of additional factors, all
of which are beyond our control. These factors include, among
others: domestic and foreign political conditions; the price and
availability of domestic and imported oil and gas; the level of
consumer and industrial demand; weather, domestic and foreign
government relations; and the price and availability of
alternative fuels and overall economic conditions. Our
production is weighted toward natural gas, making earnings and
cash flow more sensitive to natural gas price fluctuations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>There is inherent uncertainty in estimates of reserves
which may affect future net cash flows.</I></B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The basis for the success and long-term prospects for our oil
and gas business is the price that we receive for our oil and
gas. These prices are the primary factors for all aspects of our
business including reserve values, future net cash flows,
borrowing availability and results of operations. The reserve
valuations are prepared annually by independent petroleum
consultants. However, there are many uncertainties inherent in
preparing these reports and the third party consultants rely on
information we provide them. For example, Pretax PV-10
calculations that we report assume constant oil and gas prices,
operating expenses and capital expenditures over the lives of
the reserves. They also assume certain timing for completion of
projects and that we will have the financial ability to conduct
operations and capital expenditures without regard to factors
independent of the reserve report. The actual results realized
by the operations we propose to acquire may have historically
varied from these reports and may do so in the future. The
volumes estimated in these reports may also vary due to a
variety of reasons including incorrect assumptions, unsuccessful
drilling and the actual oil and gas prices that we receive.
</DIV>

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

</FONT></DIV>

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

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You should not assume that the Pretax PV-10 values of reserves
represent the market value for those reserves. These values are
prepared in accordance with strict guidelines imposed by the
SEC. These valuations are the estimated discounted future net
cash flows from our proved reserves. These estimates use prices
that the operations we propose to acquire received or would have
received as of a specified date and use costs for operating and
capital expenditures in effect at that date. These assumptions
are then used to calculate a future cash flow stream that is
discounted at a rate of 10%.
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<B><I>Operating hazards and uninsured risks are inherent to the
oil and gas industry.</I></B>
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Our oil and gas business involves a variety of operating risks,
including, but not limited to, natural disasters, unexpected
formations or pressures, uncontrollable flows of oil, natural
gas, brine or well fluids into the environment (including
groundwater contamination), blowouts, fires, explosions,
pollution and other risks, any of which could result in personal
injuries, loss of life, damage to properties and substantial
losses. Although we carry insurance at levels we believe are
reasonable, we are not fully insured against all risks. Losses
and liabilities arising from uninsured or under-insured events
could have a material adverse effect on our financial condition
and operations.
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<B><I>Our use of hedging arrangements have resulted in our
reporting losses.</I></B>
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We typically hedge a portion of oil and gas production during
periods when market prices for products are higher than
historical average prices. Typically, we have used swaps,
cost-free collars and options to put products to a purchaser at
a specified price, or floor. Under these arrangements, no
payments are due by either party so long as the market price is
above the floor price set in the collar and below the ceiling.
If the price falls below the floor, the counter-party to the
collar pays the difference to us and if the price is above the
ceiling, the counter-party to the collar receives the difference
from us. For the nine months ended September&nbsp;30, 2005, we
recognized unrealized losses on hedging transactions of
$111.6&nbsp;million which contributed to our net loss of
$89.2&nbsp;million for that period.
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<B><I>Government regulations impose costs on abandoning oil and
gas facilities.</I></B>
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Government regulations and lease terms require all oil and gas
producers to plug and abandon platforms and production
facilities at the end of the properties&#146; lives. Our reserve
valuations do not include the estimated costs of plugging the
wells and abandoning the platforms and equipment on their
properties, less any cash deposited in escrow accounts for these
obligations. These costs are usually higher on offshore
properties, as are most expenditures on offshore properties. As
of September&nbsp;30, 2005, the total estimated abandonment
costs, net of $22.6&nbsp;million already in escrow, were
approximately $19.5&nbsp;million. Those future liabilities are
accounted for by accruing for them in depreciation, depletion
and amortization expense over the lives of each property&#146;s
total proved reserves.
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<B><I>The oil and gas industry is highly competitive.</I></B>
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There are many companies and individuals engaged in the
exploration for and development of oil and gas properties.
Competition is particularly intense with respect to the
acquisition of oil and gas producing properties and securing
experienced personnel. We encounter competition from various oil
and gas companies in raising capital and in acquiring producing
properties. Many of our competitors have financial and other
resources considerably larger than ours.
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<B>Real Estate Operations</B>
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<B><I>Our investment in property development may be more costly
than anticipated.</I></B>
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We have invested and expect to continue to invest in unentitled
land, undeveloped land and distressed development properties.
These properties involve more risk than properties on which
development has been completed. Unentitled land may not be
approved for development. Undeveloped land and distressed
development properties do not generate any operating revenue,
while costs are incurred to develop the properties. In addition,
undeveloped land and development properties incur expenditures
prior to completion,
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including property taxes and development costs. Also,
construction may not be completed within budget or as scheduled
and projected rental levels or sales prices may not be achieved
and other unpredictable contingencies beyond our control could
occur. We will not be able to recoup any of such costs until
such time as these properties, or parcels thereof, are either
disposed of or developed into income-producing assets.
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<B><I>Competition for acquisitions could adversely affect us and
new acquisitions may fail to perform as expected.</I></B>
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We seek to acquire investments that are undervalued. Acquisition
opportunities in the real estate market for value-added
investors have become competitive to source and the increased
competition may negatively impact the spreads and the ability to
find quality assets that provide returns that we seek. These
investments may not be readily financeable and may not generate
immediate positive cash flow for us. There can be no assurance
that any asset we acquire, whether in the real estate sector or
otherwise, will increase in value or generate positive cash flow.
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<B><I>We may not be able to sell our rental properties, which
would reduce cash available for other purposes.</I></B>
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We are currently marketing for sale our rental real estate
portfolio. As of September&nbsp;30, 2005, we owned
58&nbsp;rental real estate properties with a book value of
approximately $155.6&nbsp;million, individually encumbered by
mortgage debt which aggregated approximately $82.6&nbsp;million.
As of September&nbsp;30, 2005, we had entered into conditional
sales contracts or letters of intent for six&nbsp;rental real
estate properties. Selling prices for the properties covered by
the contracts or letters of intent would total approximately
$10&nbsp;million. These properties are unencumbered by mortgage
debt. Generally, these contracts and letters of intent may be
terminated by the buyer with little or no penalty. We may not be
successful in obtaining purchase offers for our remaining
properties at acceptable prices and sales may not be
consummated. Many of our properties are net-leased to single
corporate tenants, and it may be difficult to sell those
properties that existing tenants decline to re-let. Our attempt
to market the real estate portfolio may not be successful. Even
if our efforts are successful, we cannot be certain that the
proceeds from the sales can be used to acquire businesses and
investments at prices or at projected returns which are deemed
favorable. From October&nbsp;1, through November&nbsp;30, we
sold&nbsp;three of these rental real estate properties for
approximately $4.3&nbsp;million. These properties were
unencumbered by mortgage debt. In the third quarter of 2005, we
entered into agreements to seek offers to finance or sell the
New Seabury development located in Massachusetts and Grand
Harbor/ Oak Harbor, one of Bayswater&#146;s two Florida
developments. We cannot predict whether any such offers will be
acceptable to us.
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<B><I>We face potential adverse effects from tenant bankruptcies
or insolvencies.</I></B>
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The bankruptcy or insolvency of our tenants may adversely affect
the income produced by our properties. If a tenant defaults, we
may experience delays and incur substantial costs in enforcing
our rights as landlord. If a tenant files for bankruptcy, we
cannot evict the tenant solely because of such bankruptcy. A
court, however, may authorize a tenant to reject or terminate
its lease with us.
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<B><I>We may be subject to environmental liability as an owner
or operator of development and rental real estate.</I></B>
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Under various federal, state and local laws, ordinances and
regulations, an owner or operator of real property may become
liable for the costs of removal or remediation of certain
hazardous substances, pollutants and contaminants released on,
under, in or from its property. These laws often impose
liability without regard to whether the owner or operator knew
of, or was responsible for, the release of such substances. To
the extent any such substances are found in or on any property
invested in by us, we could be exposed to liability and be
required to incur substantial remediation costs. The presence of
such substances or the failure to undertake proper remediation
may adversely affect the ability to finance, refinance or
dispose of such property. We generally conduct a Phase&nbsp;I
environmental site assessment on properties in which we are
considering investing. A Phase&nbsp;I environmental site
assessment involves record review, visual site assessment and
personnel interviews, but does not typically include invasive
testing procedures such as air, soil or groundwater sampling or
other tests performed as part of a Phase&nbsp;II environmental
site assessment. Accordingly, there can be no
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assurance that these assessments will disclose all potential
liabilities or that future property uses or conditions or
changes in applicable environmental laws and regulations or
activities at nearby properties will not result in the creation
of environmental liabilities with respect to a property.
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<B>Investments</B>
</DIV>

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<B><I>We may not be able to identify suitable investments, and
our investments may not result in favorable returns or may
result in losses.</I></B>
</DIV>

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Our partnership agreement allows us to take advantage of
investment opportunities we believe exist outside of the real
estate market. The equity securities in which we may invest
include common stocks, preferred stocks and securities
convertible into common stocks, as well as warrants to purchase
these securities. The debt securities in which we may invest
include bonds, debentures, notes, or non-rated mortgage-related
securities, municipal obligations, bank debt and mezzanine
loans. Certain of these securities may include lower rated or
non-rated securities which may provide the potential for higher
yields and therefore may entail higher risk and may include the
securities of bankrupt or distressed companies. In addition, we
may engage in various investment techniques, including
derivatives, options and futures transactions, foreign currency
transactions, &#147;short&#148; sales and leveraging for either
hedging or other purposes. We may concentrate our activities by
owning one or a few businesses or holdings, which would increase
our risk. We may not be successful in finding suitable
opportunities to invest our cash and our strategy of investing
in undervalued assets may expose us to numerous risks.
</DIV>

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<B><I>Our investments may be subject to significant
uncertainties.</I></B>
</DIV>

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Our investments may not be successful for many reasons
including, but not limited to:
</DIV>

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    fluctuation of interest rates;</TD>
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    lack of control in minority investments;</TD>
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    worsening of general economic and market conditions;</TD>
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    lack of diversification;</TD>
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    inexperience with non-real estate areas;</TD>
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    fluctuation of U.S.&nbsp;dollar exchange rates;&nbsp;and</TD>
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    adverse legal and regulatory developments that may affect
    particular businesses.</TD>
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We also have engaged in a &#147;short&#148; sale which has
resulted, to date, and in the future could result in significant
unrealized and realized losses.
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</DIV>

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<B>FORWARD-LOOKING STATEMENTS</B>
</DIV>

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Some statements in this prospectus and the documents
incorporated by reference are known as &#147;forward-looking
statements&#148; within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements may
relate to, among other things, future performance generally,
business development activities, future capital expenditures,
financing sources and availability and the effects of regulation
and competition.
</DIV>

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When we use the words &#147;believe,&#148; &#147;intend,&#148;
&#147;expect,&#148; &#147;may,&#148; &#147;will,&#148;
&#147;should,&#148; &#147;anticipate,&#148; &#147;could,&#148;
&#147;estimate,&#148; &#147;plan,&#148; &#147;predict,&#148;
&#147;project,&#148; or their negatives, or other similar
expressions, the statements which include those words are
usually forward-looking statements. When we describe strategy
that involves risks or uncertainties, we are making
forward-looking statements.
</DIV>

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We warn you that forward-looking statements are only
predictions. Actual events or results may differ as a result of
risks that we face, including those set forth in the section of
this prospectus called &#147;Risk Factors.&#148; Those risks are
representative of factors that could affect the outcome of the
forward-looking statements. These and the other factors
discussed elsewhere in this prospectus and the documents
incorporated by reference herein are not necessarily all of the
important factors that could cause our results to differ
materially from those expressed in our forward-looking
statements. Forward-looking statements speak only as of the date
they were made and we undertake no obligation to update them.
</DIV>

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</DIV>

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<B>USE OF PROCEEDS</B>
</DIV>

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We will not receive any proceeds from the exchange of the new
notes for the private notes pursuant to the exchange offer. On
February&nbsp;7, 2005, we issued and sold the private notes in a
private offering, receiving net proceeds of approximately
$471.5&nbsp;million, after deducting selling and offering
expenses.
</DIV>

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We intend to use the net proceeds of the private offering for
general business purposes, including to pursue our primary
business strategy of acquiring undervalued assets in either our
existing lines of business or other businesses and to provide
additional capital to grow our existing business.
</DIV>

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We will use the net proceeds of the private offering and conduct
our activities in a manner so as not to be deemed an investment
company under the Investment Company Act. Generally, this means
that we do not intend to enter the business of investing in
securities and that no more than 40% of our total assets will be
invested in securities. The portion of our assets invested in
each type of security or any single issuer or industry will not
be limited.
</DIV>

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<B>RATIO OF EARNINGS TO FIXED CHARGES</B>
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The table below sets forth our ratio of earnings to fixed
charges including our consolidated subsidiaries on a historical
basis for each of the periods indicated below. For the purpose
of computing the ratio of earnings to fixed charges, earnings
consist of income (loss) from continuing operations before
income taxes, income or loss from equity investees and minority
interest plus fixed charges. Fixed charges consist of interest
expense, amortization of capitalized expenses related to
indebtedness, whether expensed or capitalized, amortization of
capitalized interest and that portion of rental expense we
believe to be representative of interest.
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    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="center" nowrap><B>Nine Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="19">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="center" nowrap><B>Ended September&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Year Ended December&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2001</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2000</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>N/A</TD>
    <TD align="left" valign="top" nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.4x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.0x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.4x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.2x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.8x</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

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

</FONT></DIV>

<DIV align="left" style="font-size: 3pt;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    For the nine months ended September&nbsp;30, 2005, earnings were
    not sufficient to cover fixed charges by $97.2&nbsp;million.</TD>
</TR>

</TABLE>

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

</FONT></DIV>

<P align="center" style="font-size: 10pt;">32
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='106'></A>
</DIV>

<!-- link1 "THE EXCHANGE OFFER" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>THE EXCHANGE OFFER</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Purpose of the Exchange Offer</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with the sale of the private notes, we and the
initial purchaser entered into a registration rights agreement
in which we and AREH agreed to:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    file a registration statement with the Securities and Exchange
    Commission with respect to the exchange of the private notes for
    new notes, or the exchange offer registration statement, no
    later than 180&nbsp;days after the date we issued the private
    notes;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    use all commercially reasonable efforts to have the exchange
    offer registration statement declared effective by the SEC on or
    prior to 300&nbsp;days after the issuance date;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    commence the offer to exchange new notes for the private notes
    and use all commercially reasonable efforts to issue on or prior
    to 30 business days, or longer if required by the federal
    securities laws, after the date on which the exchange offer
    registration statement was declared effective by the SEC, new
    notes in exchange for all private notes tendered prior to that
    date in the exchange offer.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are making the exchange offer to satisfy certain of our
obligations under the registration rights agreement. We filed a
copy of the registration rights agreement as an exhibit to the
exchange offer registration statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Resale of Exchange Notes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under existing interpretations of the Securities Act of 1933 by
the staff of the SEC contained in several no-action letters to
third parties, we believe that the new notes will generally be
freely transferable by holders who have validly participated in
the exchange offer without further registration under the
Securities Act of 1933 (assuming the truth of certain
representations required to be made by each holder of notes, as
set forth below). For additional information on the staff&#146;s
position, we refer you to the following no-action letters: Exxon
Capital Holdings Corporation, available April&nbsp;13, 1988;
Morgan Stanley&nbsp;&#38; Co. Incorporated, available
June&nbsp;5, 1991; and Shearman&nbsp;&#38; Sterling, available
July&nbsp;2, 1993. However, any purchaser of private notes who
is one of our &#147;affiliates&#148; or who intends to
participate in the exchange offer for the purpose of
distributing the new notes or who is a broker-dealer who
purchased private notes from us to resell pursuant to
Rule&nbsp;144A or any other available exemption under the
Securities Act of 1933:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    will not be able to tender its private notes in the exchange
    offer;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    will not be able to rely on the interpretations of the staff of
    the SEC;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    must comply with the registration and prospectus delivery
    requirements of the Securities Act of 1933 in connection with
    any sale or transfer of the private notes unless such sale or
    transfer is made pursuant to an exemption from these
    requirements.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If you wish to exchange private notes for new notes in the
exchange offer, you will be required to make representations in
a letter of transmittal which accompanies this prospectus,
including that:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    you are not our &#147;affiliate&#148; (as defined in
    Rule&nbsp;405 under the Securities Act of 1933);</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    any new notes to be received by you will be acquired in the
    ordinary course of your business;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    you have no arrangement or understanding with any person to
    participate in the distribution of the new notes in violation of
    the provisions of the Securities Act of 1933;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    if you are not a broker-dealer, you are not engaged in, and do
    not intend to engage in, a distribution of new notes;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    if you are a broker-dealer, you acquired the private notes for
    your own account as a result of market-making or other trading
    activities (and as such, you are a &#147;participating
    broker-dealer&#148;), you have not entered into any arrangement
    or understanding with American Real Estate Partners, L.P. or an
    affiliate</TD>
</TR>

</TABLE>

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

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

<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>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    of American Real Estate Partners, L.P. to distribute the new
    notes and you will deliver a prospectus meeting the requirements
    of the Securities Act of 1933 in connection with any resale of
    the new notes.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Rule&nbsp;405 under the Securities Act of 1933 provides that an
&#147;affiliate&#148; of, or person &#147;affiliated&#148; with,
a specified person, is a person that directly, or indirectly
through one or more intermediaries, controls or is controlled
by, or is under common control with, the person specified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The SEC has taken the position that participating broker-dealers
may be deemed to be &#147;underwriters&#148; within the meaning
of the Securities Act of 1933, and accordingly may fulfill their
prospectus delivery requirements with respect to the new notes,
other than a resale of an unsold allotment from the original
sale of the notes, with the prospectus contained in the exchange
offer registration statement. Under the registration rights
agreement, we have agreed to use commercially reasonable efforts
to allow participating broker-dealers and other persons, if any,
subject to similar prospectus delivery requirements, to use the
prospectus contained in the exchange offer registration
statement in connection with the resale of the new notes for a
period of 270&nbsp;days from the issuance of the new notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Terms of the Exchange Offer</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This prospectus and the accompanying letter of transmittal
contain the terms and conditions of the exchange offer. Upon the
terms and subject to the conditions set forth in this prospectus
and in the accompanying letter of transmittal, we will accept
for exchange all private notes which are properly tendered and
not withdrawn on or prior to 5:00&nbsp;p.m., New York City time,
on the expiration date. After authentication of the new notes by
the trustee or an authentication agent, we will issue and
deliver $1,000 principal amount of new notes in exchange for
each $1,000 principal amount of outstanding private notes
accepted in the exchange offer. Holders may tender some or all
of their private notes in the exchange offer in denominations of
$1,000 and integral multiples thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The form and terms of the new notes are identical in all
material respects to the form and terms of the private notes,
except that:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;the offering of the new notes has been registered under
    the Securities Act of 1933;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;the new notes generally will not be subject to transfer
    restrictions or have registration rights;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;certain provisions relating to liquidated damages on
    the private notes provided for under certain circumstances will
    be eliminated.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The new notes will evidence the same debt as the private notes.
The new notes will be issued under and entitled to the benefits
of the indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of the date of this prospectus, $480&nbsp;million aggregate
principal amount of the private notes is outstanding. In
connection with the issuance of the private notes, we made
arrangements for the private notes to be issued and transferable
in book-entry form through the facilities of the Depository
Trust Company acting as a depositary. The new notes will also be
issuable and transferable in book-entry form through the
Depository Trust Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The exchange offer is not conditioned upon any minimum aggregate
principal amount of private notes being tendered. However, our
obligation to accept private notes for exchange pursuant to the
exchange offer is subject to certain customary conditions that
we describe under &#147;&#151;&nbsp;Conditions&#148; below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders who tender private notes in the exchange offer will not
be required to pay brokerage commissions or fees or, subject to
the instructions in the letter of transmittal, transfer taxes
with respect to the exchange of private notes pursuant to the
exchange offer. We will pay all charges and expenses, other than
certain applicable taxes, in connection with the exchange offer.
See &#147;&#151;&nbsp;Solicitation of Tenders; Fees and
Expenses&#148; for more detailed information regarding the
expenses of the exchange offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
By executing or otherwise becoming bound by the letter of
transmittal, you will be making the representations described
under &#147;&#151;&nbsp;Procedures for Tendering&#148; below.
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Expiration Date; Extensions; Amendments</B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The term &#147;expiration date&#148; will mean 5:00&nbsp;p.m.,
New York City time,
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006, unless we, in our sole discretion, extend the exchange
offer, in which case the term &#147;expiration date&#148; will
mean the latest date and time to which we extend the exchange
offer.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To extend the exchange offer, we will:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    notify the exchange agent of any extension orally or in
    writing;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    notify the registered holders of the private notes by means of a
    press release or other public announcement, each before
    9:00&nbsp;a.m., New York City time, on the next business day
    after the previously scheduled expiration date.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We reserve the right, in our reasonable discretion:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    to delay accepting any private notes;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    to extend the exchange offer;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    if any conditions listed below under
    &#147;&#151;&nbsp;Conditions&#148; are not satisfied, to
    terminate the exchange offer by giving oral or written notice of
    the delay, extension or termination to the exchange agent.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will follow any delay in acceptance, extension or termination
as promptly as practicable by oral or written notice to the
registered holders. If we amend the exchange offer in a manner
we determine constitutes a material change, we will promptly
disclose the amendment in a prospectus supplement that we will
distribute to the registered holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Interest on the New Notes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest on the new notes will accrue from the last interest
payment date on which interest was paid on the private notes
surrendered in exchange for new notes or, if no interest has
been paid on the private notes, from the issue date of the
private notes, February&nbsp;7, 2005. Interest on the new notes
will be payable semi-annually on February 15 and August 15 of
each year, commencing on August&nbsp;15, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Procedures for Tendering</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You may tender your private notes in the exchange offer only if
you are a registered holder of private notes. To tender in the
exchange offer, you must:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    complete, sign and date the letter of transmittal or a facsimile
    of the letter of transmittal;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    have the signatures thereof guaranteed if required by the letter
    of transmittal;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    mail or otherwise deliver the letter of transmittal or such
    facsimile to the exchange agent, at the address listed below
    under &#147;&#151;&nbsp;Exchange Agent&#148; for receipt prior
    to the expiration date.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, either:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the exchange agent must receive certificates for the private
    notes along with the letter of transmittal into its account at
    the Depository Trust Company pursuant to the procedure described
    under &#147;&#151;&nbsp;Book-Entry Transfer&#148; before the
    expiration date;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the exchange agent must receive a timely confirmation of a
    book-entry transfer, if the procedure is available, into its
    account at the Depository Trust Company pursuant to the
    procedure described under &#147;&#151;&nbsp;Book-Entry
    Transfer&#148; before the expiration date;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    you must comply with the procedures described under
    &#147;Guaranteed Delivery Procedures.&#148;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Your tender, if not withdrawn before the expiration date, will
constitute an agreement between you and us in accordance with
the terms and subject to the conditions described in this
prospectus and in the letter of transmittal.
</DIV>

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

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The method of delivery of private notes and the letter of
transmittal and all other required documents to the exchange
agent is at your election and risk. We recommend that, instead
of delivery by mail, you use an overnight or hand delivery
service. In all cases, you should allow sufficient time to
ensure delivery to the exchange agent prior to the expiration
date. You should not send letters of transmittal or private
notes to us. You may request that your respective brokers,
dealers, commercial banks, trust companies or nominees effect
the transactions described above for you.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If you are a beneficial owner whose private notes are registered
in the name of a broker, dealer, commercial bank, trust company
or other nominee and you wish to tender your private notes, you
should contact such registered holder promptly and instruct such
registered holder to tender on your behalf. If you wish to
tender on your own behalf, prior to completing and executing the
letter of transmittal and delivering your private notes, you
must either:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    make appropriate arrangements to register ownership of your
    private notes in your name;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    obtain a properly completed bond power from the registered
    holder.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The transfer of record ownership may take considerable time
unless private notes are tendered:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    by a registered holder who has not completed the box entitled
    &#147;Special Registration Instructions&#148; or &#147;Special
    Delivery Instruction&#148; on the letter of transmittal;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    for the account of an &#147;Eligible Institution&#148; which is
    either:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a member firm of a registered national securities exchange or of
    the National Association of Securities Dealers, Inc.;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a commercial bank or trust company located or having an office
    or correspondent in the United States;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    otherwise an &#147;eligible guarantor institution&#148; within
    meaning of Rule&nbsp;17Ad-15 under the Securities Exchange Act
    of 1934.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
An Eligible Institution must guarantee the signatures on a
letter of transmittal or a notice of withdrawal described below
under &#147;&#151;&nbsp;Withdrawal of Tenders.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the letter of transmittal is signed by a person other than
the registered holder, such private notes must be endorsed or
accompanied by appropriate bond powers which authorize such
person to tender the private notes on behalf of the registered
holder, in either case signed as the name of the registered
holder or holders appears on the private notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the letter of transmittal or any private notes or bond powers
are signed or endorsed by trustees, executors, administrators,
guardians, attorneys-in-fact, officers of corporations or others
acting in a fiduciary or representative capacity, such persons
should so indicate when signing, and unless waived by us, they
must submit evidence satisfactory to us of their authority to so
act with the letter of transmittal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The letter of transmittal will include representations to us as
set forth under &#147;Resale of Exchange Notes.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You should note that:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    All questions as to the validity, form, eligibility, including
    time of receipt, acceptance and withdrawal of the tendered
    private notes will be determined by us in our sole discretion,
    which determination will be final and binding;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We reserve the absolute right to reject any and all private
    notes not properly tendered or any private notes the acceptance
    of which would, in our judgment or the judgment of our counsel,
    be unlawful;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We also reserve the absolute right to waive any irregularities
    or conditions of tender as to particular private notes. Our
    interpretation of the terms and conditions of the exchange
    offer, including the instructions in the letter of transmittal,
    will be final and binding on all parties. Unless waived, any</TD>
</TR>

</TABLE>

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

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

<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>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    defects or irregularities in connection with tenders of private
    notes must be cured within such time as we shall determine;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Although we intend to notify holders of defects or
    irregularities with respect to any tender of private notes,
    neither we, the exchange agent nor any other person shall be
    under any duty to give notification of any defect or
    irregularity with respect to tenders of private notes, nor shall
    any of them incur any liability for failure to give such
    notification;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Tenders of private notes will not be deemed to have been made
    until such irregularities have been cured or waived. Any private
    notes received by the exchange agent that we determine are not
    properly tendered or the tender of which is otherwise rejected
    by us and as to which the defects or irregularities have not
    been cured or waived by us will be returned by the exchange
    agent to the tendering holder unless otherwise provided in the
    letter of transmittal, as soon as practicable following the
    expiration date.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Book-Entry Transfer</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The exchange agent will make a request promptly after the date
of this prospectus to establish accounts with respect to the
private notes at the Depository Trust Company for the purpose of
facilitating the exchange offer. Any financial institution that
is a participant in the Depository Trust Company&#146;s system
may make book-entry delivery of private notes by causing the
Depository Trust Company to transfer such private notes into the
exchange agent&#146;s account with respect to the private notes
in accordance with the Depository Trust Company&#146;s Automated
Tender Offer Program procedures for such transfer. However, the
exchange for the private notes so tendered will only be made
after timely confirmation of such book-entry transfer of private
notes into the exchange agent&#146;s account, and timely receipt
by the exchange agent of an agent&#146;s message and any other
documents required by the letter of transmittal. The term
&#147;agent&#146;s message&#148; means a message, transmitted by
the Depository Trust Company and received by the exchange agent
and forming a part of the confirmation of a book-entry transfer,
which states that the Depository Trust Company has received an
express acknowledgment from a participant that is tendering
private notes that such participant has received the letter of
transmittal and agrees to be bound by the terms of the letter of
transmittal, and that we may enforce such agreement against the
participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Although delivery of private notes may be effected through
book-entry transfer into the exchange agent&#146;s account at
the Depository Trust Company, you must transmit and the exchange
agent must receive, the letter of transmittal (or facsimile
thereof) properly completed and duly executed with any required
signature guarantee and all other required documents prior to
the expiration date, or you must comply with the guaranteed
delivery procedures described below. Delivery of documents to
the Depository Trust Company does not constitute delivery to the
exchange agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Guaranteed Delivery Procedures</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If you wish to tender your private notes but your private notes
are not immediately available, or time will not permit your
private notes or other required documents to reach the exchange
agent before the expiration date, or the procedure for
book-entry transfer cannot be completed on a timely basis, you
may effect a tender if:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;the tender is made through an Eligible Institution;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;prior to the expiration date, the exchange agent
    receives from such Eligible Institution a properly completed and
    duly executed notice of guaranteed delivery, by facsimile
    transmittal, mail or hand delivery</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    stating the name and address of the holder, the certificate
    number or numbers of such holder&#146;s private notes and the
    principal amount of such private notes tendered;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    stating that the tender is being made thereby; and</TD>
</TR>

</TABLE>

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

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

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    guaranteeing that, within three New York Stock Exchange trading
    days after the expiration date, the letter of transmittal, or a
    facsimile thereof, together with the certificate(s) representing
    the private notes to be tendered in proper form for transfer, or
    confirmation of a book-entry transfer into the exchange
    agent&#146;s account at the Depository Trust Company of private
    notes delivered electronically, and any other documents required
    by the letter of transmittal, will be deposited by the Eligible
    Institution with the exchange agent;&nbsp;and</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;such properly completed and executed letter of
    transmittal, or a facsimile thereof, together with the
    certificate(s) representing all tendered private notes in proper
    form for transfer, or confirmation of a book-entry transfer into
    the exchange agent&#146;s account at the Depository Trust
    Company of private notes delivered electronically and all other
    documents required by the letter of transmittal are received by
    the exchange agent within three New York Stock Exchange trading
    days after the expiration date.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon request, the exchange agent will send to you a notice of
guaranteed delivery if you wish to tender your private notes
according to the guaranteed delivery procedures described above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Withdrawal of Tenders</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except as otherwise provided in this prospectus, you may
withdraw tenders of private notes at any time prior to the
expiration date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For a withdrawal to be effective, the exchange agent must
receive a written or facsimile transmission notice of withdrawal
at its address set forth this prospectus prior to the expiration
date. Any such notice of withdrawal must:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    specify the name of the person who deposited the private notes
    to be withdrawn;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    identify the private notes to be withdrawn, including the
    certificate number or number and principal amount of such
    private notes or, in the case of private notes transferred by
    book-entry transfer, the name and number of the account at the
    Depository Trust Company to be credited; and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    be signed in the same manner as the original signature on the
    letter of transmittal by which such private notes were tendered,
    including any required signature guarantee.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will determine in our sole discretion all questions as to the
validity, form and eligibility, including time of receipt, of
such withdrawal notices, and our determination shall be final
and binding on all parties. We will not deem any properly
withdrawn private notes to have been validly tendered for
purposes of the exchange offer, and we will not issue new notes
with respect those private notes unless you validly retender the
withdrawn private notes. You may retender properly withdrawn
private notes following one of the procedures described above
under &#147;&#151;&nbsp;Procedures for Tendering&#148; at any
time prior to the expiration date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Conditions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Notwithstanding any other term of the exchange offer, we will
not be required to accept for exchange, or exchange the new
notes for, any private notes, and may terminate the exchange
offer as provided in this prospectus before the acceptance of
the private notes, if:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the exchange offer violates applicable law, rules or regulations
    or an applicable interpretation of the staff of the SEC;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    an action or proceeding has been instituted or threatened in any
    court or by any governmental agency which might materially
    impair our ability to proceed with the exchange offer;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    there has been proposed, adopted or enacted any law, rule or
    regulation that, in our reasonable judgment would impair
    materially our ability to consummate the exchange offer;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    all governmental approvals which we deem necessary for the
    completion of the exchange offer have not been obtained.</TD>
</TR>

</TABLE>

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

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If we determine in our reasonable discretion that any of these
conditions are not satisfied, we may:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    refuse to accept any private notes and return all tendered
    private notes to you;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    extend the exchange offer and retain all private notes tendered
    before the exchange offer expires, subject, however, to your
    rights to withdraw the private notes;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    waive the unsatisfied conditions with respect to the exchange
    offer and accept all properly tendered private notes that have
    not been withdrawn.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the waiver constitutes a material change to the exchange
offer, we will promptly disclose the waiver by means of a
prospectus supplement that we will distribute to the registered
holders of the private notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Exchange Agent</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have appointed Wilmington Trust Company, the trustee under
the indenture, as exchange agent for the exchange offer. You
should send all executed letters of transmittal to the exchange
agent at one of the addresses set forth below. In such capacity,
the exchange agent has no fiduciary duties and will be acting
solely on the basis of directions of our company. You should
direct questions, requests for assistance and requests for
additional copies of this prospectus or of the letter of
transmittal and requests for a notice of guaranteed delivery to
the exchange agent addressed as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>By Certified or Registered Mail:</I></B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
Wilmington Trust Company
</DIV>

<DIV align="center" style="font-size: 10pt;">
DC-1626 Processing Unit
</DIV>

<DIV align="center" style="font-size: 10pt;">
P.O. Box&nbsp;8861
</DIV>

<DIV align="center" style="font-size: 10pt;">
Wilmington, DE 19899-8861
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>By Overnight Courier or Hand Delivery:</I></B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
Wilmington Trust Company
</DIV>

<DIV align="center" style="font-size: 10pt;">
Corporate Capital Markets
</DIV>

<DIV align="center" style="font-size: 10pt;">
1100&nbsp;North Market Street
</DIV>

<DIV align="center" style="font-size: 10pt;">
Wilmington, DE 19890-1626
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>By Facsimile:</I></B>
</DIV>

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

</FONT></DIV>

<DIV align="center" style="font-size: 10pt;">
(302)&nbsp;636-4139
</DIV>

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

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Confirm By Telephone:</I></B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
(302)&nbsp;636-6470
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Delivery to an address or facsimile number other than those
listed above will not constitute a valid delivery.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The trustee does not assume any responsibility for and makes no
representation as to the validity or adequacy of this prospectus
or the notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Solicitation of Tenders; Fees And Expenses</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will pay all expenses of soliciting tenders pursuant to the
exchange offer. We are making the principal solicitation by
mail. Our officers and regular employees may make additional
solicitations in person or by telephone or telecopier.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have not retained any dealer-manager in connection with the
exchange offer and will not make any payments to brokers,
dealers or other persons soliciting acceptances of the exchange
offer. We will, however, pay the exchange agent reasonable and
customary fees for its services and will reimburse the exchange
agent for its reasonable out-of-pocket costs and expenses in
connection therewith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We also may pay brokerage houses and other custodians, nominees
and fiduciaries the reasonable out-of-pocket expenses incurred
by them in forwarding copies of this prospectus, letters of
transmittal and related documents to the beneficial owners of
the private notes and in handling or forwarding tenders for
exchange.
</DIV>

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

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will pay the expenses to be incurred in connection with the
exchange offer, including fees and expenses of the exchange
agent and trustee and accounting and legal fees and printing
costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will pay all transfer taxes, if any, applicable to the
exchange of private notes for new notes pursuant to the exchange
offer. If, however, certificates representing new notes or
private notes for principal amounts not tendered or accepted for
exchange are to be delivered to, or are to be registered or
issued in the name of, any person other than the registered
holder of the private notes tendered, or if tendered private
notes are registered in the name of any person other than the
person signing the letter of transmittal, or if a transfer tax
is imposed for any reason other than the exchange of private
notes pursuant to the exchange offer, then the amount of any
such transfer taxes, whether imposed on the registered holder or
any other persons, will be payable by the tendering holder. If
satisfactory evidence of payment of such taxes or exemption
therefrom is not submitted with the letter of transmittal, the
amount of such transfer taxes will be billed by us directly to
such tendering holder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Consequences of Failure to Exchange</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Participation in the exchange offer is voluntary. We urge you to
consult your financial and tax advisors in making your decisions
on what action to take. Private notes that are not exchanged for
new notes pursuant to the exchange offer will remain restricted
securities. Accordingly, those private notes may be resold only:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    to a person whom the seller reasonably believes is a qualified
    institutional buyer in a transaction meeting the requirements of
    Rule&nbsp;144A under the Securities Act of 1933;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    in a transaction meeting the requirements of Rule&nbsp;144 under
    the Securities Act of 1933;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    outside the United States to a foreign person in a transaction
    meeting the requirements of Rule&nbsp;903 or 904 of
    Regulation&nbsp;S under the Securities Act of 1933;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    in accordance with another exemption from the registration
    requirements of the Securities Act of 1933 and based upon an
    opinion of counsel if we so request;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    to us;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    pursuant to an effective registration statement.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In each case, the private notes may be resold only in accordance
with any applicable securities laws of any state of the United
States or any other applicable jurisdiction.
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
<A name='115'></A>
</DIV>

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

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DESCRIPTION OF NOTES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>General</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You can find the definitions of certain terms used in this
description under the subheading &#147;Certain
Definitions.&#148; In this description, the word
&#147;AREP&#148; refers only to American Real Estate Partners,
L.P., the words &#147;AREP Finance&#148; refer only to AREP
Finance, the word &#147;AREH&#148; refers only to American Real
Estate Holdings Limited Partnership, and the word
&#147;API&#148; refers only to American Property Investors, Inc.
and not to any of their respective Subsidiaries. For the
avoidance of doubt, AREH will be deemed to be a Subsidiary of
AREP for so long as AREH remains a Guarantor. The term
&#147;Issuers&#148; refers to AREP and AREP Finance,
collectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Issuers issued the private notes, and will issue the new
notes, under an indenture among the Issuers, AREH, as guarantor,
and Wilmington Trust&nbsp;Company, as trustee. The terms of the
notes include those stated in the indenture and those made part
of the indenture by reference to the Trust Indenture Act of 1939.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following description is a summary of the material
provisions of the indenture. It does not restate the indenture
in entirety. We urge you to read the indenture because it and
not this description, defines your rights as holders of the
notes. Copies of the indenture are available as set forth below
under &#147;&#151;&nbsp;Additional Information.&#148; Certain
defined terms used in this description but not defined below
under &#147;&#151;&nbsp;Certain Definitions&#148; have the
meanings assigned to them in the indenture and the registration
rights agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the avoidance of doubt, the inclusion of exceptions to the
provisions (including covenants and definitions) set forth
herein will not be interpreted to imply that the matters
permitted by the exception would be limited by the terms of such
provisions but for such exceptions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The registered holder of a note will be treated as the owner of
it for all purposes. Only registered holders will have rights
under the indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Brief Description of the Notes and the Note Guarantee</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>The Notes</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The notes:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    will be the general unsecured obligation of each of the Issuers;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    will be pari passu in right of payment to all existing and
    future senior Indebtedness of each of the Issuers;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    will be senior in right of payment to any future subordinated
    Indebtedness of each of the Issuers;&nbsp;and</TD>
</TR>

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    will be effectively subordinated to the secured Indebtedness of
    the Issuers to the extent of the value of the collateral
    securing such Indebtedness. As of September&nbsp;30, 2005, the
    Issuers did not have any secured Indebtedness.</TD>
</TR>

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

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

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>The Note Guarantee</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Guarantee of the notes:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    will be the general unsecured obligation of AREH;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    will be pari passu in right of payment to all existing and
    future senior Indebtedness of AREH;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    will be senior in right of payment to any future subordinated
    Indebtedness of AREH;&nbsp;and</TD>
</TR>

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    will be effectively subordinated to the secured Indebtedness of
    AREH to the extent of the value of the collateral securing such
    Indebtedness. As of September&nbsp;30, 2005, AREH had
    $39&nbsp;million of secured Indebtedness.</TD>
</TR>

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

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

</TABLE>

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

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The operations of AREP are conducted through its Subsidiaries
(including AREH) and, therefore, AREP depends on the cash flow
of AREP&#146;s Subsidiaries and AREH to meet its obligations,
including its obligations under the notes. The notes will not be
guaranteed by any of AREP&#146;s Subsidiaries other than AREH.
The notes and the guarantee will be effectively subordinated in
right of payment to all Indebtedness and other liabilities and
commitments (including trade payables and lease obligations) of
AREP&#146;s Subsidiaries (other than AREH). Any right of the
Issuers or AREH to receive assets of any of their Subsidiaries
(other than AREH) upon that Subsidiary&#146;s liquidation or
reorganization (and the consequent right of the holders of the
notes to participate in those assets) will be effectively
subordinated to the claims of that Subsidiary&#146;s creditors,
except to the extent that any of the Issuers or AREH is itself
recognized as a creditor of that Subsidiary, in which case the
claims of the Issuers and AREH would still be subordinate in
right of payment to any security in the assets of the Subsidiary
and any Indebtedness of the Subsidiary senior to that held by
the Issuers or AREH. The covenants of the notes do not restrict
the ability of AREP&#146;s Subsidiaries, other than AREH, from
incurring additional Indebtedness or creating liens, nor do the
covenants of the notes restrict the ability of AREH, AREP or its
Subsidiaries from making investments or entering into sale and
leaseback transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Principal, Maturity and Interest</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Issuers will issue $480.0&nbsp;million in aggregate
principal amount of notes. The Issuers may issue additional
notes (&#147;Additional Notes&#148;) from time to time. Any
offering of Additional Notes is subject to the covenant
&#147;&#151;&nbsp;Certain Covenants&nbsp;&#151; Incurrence of
Indebtedness and Issuance of Preferred Stock.&#148; In the case
of each series, the notes and any Additional Notes subsequently
issued under the indenture will be treated as a single class for
all purposes under the indenture, including, without limitation,
waivers, amendments, redemption and offers to purchase. The
Issuers will issue notes in denominations of $1,000 and integral
multiples of $1,000. The notes will mature on February&nbsp;15,
2013.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest on the notes will accrue at the rate of
7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;per
annum and will be payable semi-annually in arrears on
February&nbsp;15 and August&nbsp;15, commencing on
August&nbsp;15, 2005. Interest on overdue principal and interest
and Liquidated Damages, if any, will accrue at a rate that is 1%
higher than the then applicable interest rate on the notes. The
Issuers will make each interest payment to the holders of record
on the immediately preceding February&nbsp;1 and August&nbsp;1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest on the notes will accrue from the date of original
issuance or, if interest has already been paid, from the date it
was most recently paid. Interest will be computed on the basis
of a 360-day year comprised of twelve 30-day months.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Methods of Receiving Payments on the Notes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a noteholder holds at least $2.0&nbsp;million aggregate
principal amount of notes, such holder may give wire transfer
instructions to AREP and the Issuers will instruct the trustee
to pay all principal, interest and premium and Liquidated
Damages, if any, on that holder&#146;s notes in accordance with
those instructions. All other payments on the notes will be made
at the office or agency of the paying agent and registrar within
the City and State of New York unless the Issuers elect to make
interest payments by check mailed to the noteholders at their
address set forth in the register of holders. In addition, all
payments will be subject to the applicable rules and procedures
of the settlement systems (including, if applicable, those of
Euroclear and Clearstream), which may change from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Paying Agent and Registrar for the Notes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The trustee will initially act as paying agent and registrar.
The Issuers may change the paying agent or registrar without
prior notice to the holders of the notes, and the Issuers or any
of their Subsidiaries (including AREH) may act as paying agent
or registrar.
</DIV>

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

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Transfer and Exchange</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A holder may transfer or exchange notes in accordance with the
provisions of the indenture. The registrar and the trustee may
require a holder, among other things, to furnish appropriate
endorsements and transfer documents in connection with a
transfer of notes. Holders will be required to pay all taxes due
on transfer. The Issuers will not be required to transfer or
exchange any note selected for redemption. Also, the Issuers
will not be required to transfer or exchange any note for a
period of 15&nbsp;days before a selection of notes to be
redeemed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Note Guarantee</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The notes will be guaranteed by AREH. AREP may, at its option,
add subsidiary Guarantors to the notes. Each Guarantor&#146;s
obligations under its Note Guarantee will be limited as
necessary to prevent the Note Guarantee from constituting a
fraudulent conveyance under applicable law. See &#147;Risk
Factors&nbsp;&#151; Federal and state statutes allow courts,
under specific circumstances, to void guarantees and require
noteholders to return payments received from the guarantor.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any Guarantor&#146;s Note Guarantee will be released:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;upon the substitution of a successor to AREH or other
    release as described under the heading &#147;Certain
    Covenants&nbsp;&#151; Merger, Consolidation or Sale of
    Assets&#148;;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;upon legal defeasance or satisfaction and discharge of
    the indenture as provided below under the captions
    &#147;&#151;&nbsp;Covenant Defeasance&#148; and
    &#147;&#151;&nbsp;Satisfaction and Discharge.&#148;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Optional Redemption</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At any time prior to February&nbsp;15, 2008, the Issuers may on
one or more occasions redeem up to 35% of the aggregate
principal amount of notes (including Additional Notes) issued
under the indenture at a redemption price of
107<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
of the principal amount thereof, plus accrued and unpaid
interest and Liquidated Damages, if any, to the redemption date,
with the net cash proceeds of one or more Equity Offerings;
provided, however, that:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;at least 65% of the aggregate principal amount of notes
    issued under the indenture remains outstanding immediately after
    the occurrence of such redemption (excluding notes held by AREP
    and its Subsidiaries (including any Guarantor));&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;the redemption occurs within 60&nbsp;days of the date
    of the closing of such Equity Offering.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except pursuant to the preceding paragraph, the notes will not
be redeemable at the Issuers&#146; option prior to
February&nbsp;15, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On or after February&nbsp;15, 2009, the Issuers may redeem all
or a part of the notes upon not less than 15 nor more than
60&nbsp;days&#146; notice, at the redemption prices (expressed
as percentages of principal amount) set forth below plus accrued
and unpaid interest and Liquidated Damages, if any, on the notes
redeemed, to the applicable redemption date, if redeemed during
the twelve-month period beginning on one of the years indicated
below:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="82%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Year</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percentage</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2009</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>103.563</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2010</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>101.781</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2011 and thereafter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.000</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">43

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mandatory Disposition Pursuant to Gaming Laws</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If any Gaming Authority requires that a holder or Beneficial
Owner of notes be licensed, qualified or found suitable under
any applicable Gaming Law and such holder or Beneficial Owner:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;fails to apply for a license, qualification or a
    finding of suitability within 30&nbsp;days (or such shorter
    period as may be required by the applicable Gaming Authority)
    after being requested to do so by the Gaming Authority;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;is denied such license or qualification or not found
    suitable; AREP shall then have the right, at its option:</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;to require each such holder or Beneficial Owner to
    dispose of its notes within 30&nbsp;days (or such earlier date
    as may be required by the applicable Gaming Authority) of the
    occurrence of the event described in clause&nbsp;(1) or
    (2)&nbsp;above,&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;to redeem the notes of each such holder or Beneficial
    Owner, in accordance with Rule&nbsp;14e-1 of the Exchange Act,
    if applicable, at a redemption price equal to the lowest of:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;the principal amount thereof, together with accrued and
    unpaid interest and Liquidated Damages, if any, to the earlier
    of the date of redemption, the date 30&nbsp;days after such
    holder or Beneficial Owner is required to apply for a license,
    qualification or finding of suitability (or such shorter period
    that may be required by any applicable Gaming Authority) if such
    holder or Beneficial Owner fails to do so (&#147;Application
    Date&#148;) or of the date of denial of license or qualification
    or of the finding of unsuitability by such Gaming Authority;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;the price at which such holder or Beneficial Owner
    acquired the notes, together with accrued and unpaid interest
    and Liquidated Damages, if any, to the earlier of the date of
    redemption, the Application Date or the date of the denial of
    license or qualification or of the finding of unsuitability by
    such Gaming Authority;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;such other lesser amount as may be required by any
    Gaming Authority.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Immediately upon a determination by a Gaming Authority that a
holder or Beneficial Owner of the notes will not be licensed,
qualified or found suitable and must dispose of the notes, the
holder or Beneficial Owner will, to the extent required by
applicable Gaming Laws, have no further right:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;to exercise, directly or indirectly, through any
    trustee or nominee or any other person or entity, any right
    conferred by the notes, the Note Guarantee or the
    indenture;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;to receive any interest, Liquidated Damages, dividend,
    economic interests or any other distributions or payments with
    respect to the notes and the Note Guarantee or any remuneration
    in any form with respect to the notes and the Note Guarantee
    from the Issuers, any Note Guarantor or the trustee, except the
    redemption price referred to above.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AREP shall notify the trustee in writing of any such redemption
as soon as practicable. Any holder or Beneficial Owner that is
required to apply for a license, qualification or a finding of
suitability will be responsible for all fees and costs of
applying for and obtaining the license, qualification or finding
of suitability and of any investigation by the applicable Gaming
Authorities and the Issuers and any Note Guarantor will not
reimburse any holder or Beneficial Owner for such expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mandatory Redemption</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Issuers are not required to make mandatory redemption or
sinking fund payments with respect to the notes.
</DIV>

<P align="center" style="font-size: 10pt;">44

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Repurchase at the Option of Holders</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Change of Control</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a Change of Control occurs, each holder of notes will have
the right to require the Issuers to repurchase all or any part
(equal to $1,000 or an integral multiple of $1,000) of that
holder&#146;s notes pursuant to a Change of Control offer on the
terms set forth in the indenture. In the Change of Control
offer, the Issuers will offer a Change of Control payment in
cash equal to 101% of the aggregate principal amount of notes
repurchased plus accrued and unpaid interest and Liquidated
Damages, if any, on the notes repurchased, to the date of
purchase. Within 30&nbsp;days following any Change of Control,
the Issuers will mail a notice to each holder describing the
transaction or transactions that constitute the Change of
Control and offering to repurchase notes on the Change of
Control payment date specified in the notice, which date will be
no earlier than 30&nbsp;days and no later than 60&nbsp;days from
the date such notice is mailed, pursuant to the procedures
required by the indenture and described in such notice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On the Change of Control payment date, the Issuers will, to the
extent lawful:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;accept for payment all notes or portions of notes
    properly tendered and not withdrawn pursuant to the Change of
    Control offer;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;deposit with the paying agent an amount equal to the
    Change of Control payment in respect of all notes or portions of
    notes properly tendered;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;deliver or cause to be delivered to the trustee the
    notes properly accepted together with an Officers&#146;
    Certificate stating the aggregate principal amount of notes or
    portions of notes being purchased by the Issuers.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The paying agent will promptly mail to each holder of notes
properly tendered the Change of Control payment for such notes,
and the trustee will promptly authenticate and mail (or cause to
be transferred by book entry) to each holder a new note equal in
principal amount to any unpurchased portion of the notes
surrendered, if any; provided that each new note will be in a
principal amount of $1,000 or an integral multiple of $1,000.
The Issuers will publicly announce the results of the Change of
Control offer on or as soon as practicable after the Change of
Control payment date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The provisions described above that require the Issuers to make
a Change of Control offer following a Change of Control will be
applicable whether or not any other provisions of the indenture
are applicable. Except as described above with respect to a
Change of Control, the indenture does not contain provisions
that permit the holders of the notes to require that the Issuers
repurchase or redeem the notes in the event of a takeover,
recapitalization or similar transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Issuers will not be required to make a Change of Control
offer upon a Change of Control if a third party makes the Change
of Control offer in the manner, at the times and otherwise in
compliance with the requirements set forth in the indenture
applicable to a Change of Control offer made by the Issuers and
purchases all notes properly tendered and not withdrawn under
the Change of Control offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The definition of Change of Control includes a phrase relating
to the sale, lease, transfer, conveyance or other disposition by
AREP or AREH of &#147;all or substantially all&#148; of its
properties or assets. Although there is a limited body of case
law interpreting the phrase &#147;substantially all,&#148; there
is no precise established definition of the phrase under
applicable law. Accordingly, the ability of a holder of notes to
require the Issuers to repurchase its notes as a result of a
sale, lease, transfer, conveyance or other disposition of less
than all of the assets of AREP or AREH to another Person or
group may be uncertain. In addition, under certain circumstances
the definition of Change of Control excludes certain sales,
leases transfers, conveyances or other dispositions even if they
constitute &#147;all or substantially all&#148; of the
properties or assets of AREP or AREH.
</DIV>

<P align="center" style="font-size: 10pt;">45

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Certain Covenants</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Restricted Payments</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AREP will not, and will not permit any of its Subsidiaries
(including any Guarantor) to:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;declare or pay any dividend or make any other
    distribution on account of AREP&#146;s or any of its
    Subsidiaries&#146; (including any Guarantor&#146;s) Equity
    Interests or to the holders of AREP&#146;s or any of its
    Subsidiaries&#146; (including AREH&#146;s) Equity Interests in
    their capacity as such (other than dividends or distributions
    payable in Equity Interests (other than Disqualified Stock) of
    AREP or to AREP or a Subsidiary of AREP (including AREH));</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;purchase, redeem or otherwise acquire or retire for
    value (including, without limitation, in connection with any
    merger or consolidation involving AREP) any Equity Interests of
    AREP;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;make any payment on or with respect to, or purchase,
    redeem, defease or otherwise acquire or retire for value any
    Indebtedness of AREP or any Guarantor that is contractually
    subordinated to the notes or to any Note Guarantee (excluding
    any intercompany Indebtedness between or among AREP and any of
    its Subsidiaries (including any Guarantor)), except a payment of
    interest, Other Liquidated Damages or principal at the Stated
    Maturity on such subordinated Indebtedness (all such payments
    and other actions set forth in these clauses&nbsp;(1) through
    (3) (except as excluded therein) above being collectively
    referred to as &#147;Restricted Payments&#148;),</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
unless, at the time of and after giving effect to such
Restricted Payment:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;no Default or Event of Default has occurred and is
    continuing or would occur as a consequence of such Restricted
    Payment;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;AREP or any Guarantor would, at the time of such
    Restricted Payment and after giving pro forma effect thereto as
    if such Restricted Payment had been made at the beginning of the
    most recently ended four-quarter period for which financial
    statements are available, have been permitted to incur at least
    $1.00 of additional Indebtedness pursuant to the first paragraph
    of the covenant described below under the caption
    &#147;&#151;&nbsp;Incurrence of Indebtedness and Issuance of
    Preferred Stock&#148;;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;such Restricted Payment, together with the aggregate
    amount of all other Restricted Payments made by AREP and its
    Subsidiaries (including any Guarantor) after May&nbsp;12, 2004
    (excluding Restricted Payments permitted by clauses&nbsp;(2),
    (3), (4), (6)&nbsp;and (8)&nbsp;of the next succeeding
    paragraph) is less than the sum, without duplication, of:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;50% of the Consolidated Net Income of AREP for the
    period (taken as one accounting period) from July&nbsp;1, 2006
    to the end of AREP&#146;s most recently ended fiscal quarter for
    which financial statements are available at the time of such
    Restricted Payment (or, if such Consolidated Net Income for such
    period is a deficit, less 100% of such deficit); provided,
    however, that to the extent any payments of Tax Amounts were not
    deducted in the calculation of Consolidated Net Income during
    the applicable period, for purposes of this clause&nbsp;(a),
    such payments of Tax Amounts will be deducted from Consolidated
    Net Income, plus</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;100% of the aggregate net cash proceeds received by
    AREP since May&nbsp;12, 2004 as a contribution to its equity
    capital or from the issue or sale of Equity Interests of AREP
    (excluding Disqualified Stock) or from the issue or sale of
    convertible or exchangeable Disqualified Stock or convertible or
    exchangeable debt securities of AREP that have been converted
    into or exchanged for such Equity Interests (other than Equity
    Interests or Disqualified Stock or debt securities sold to a
    Subsidiary of AREP (including AREH)).</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">46

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
So long as no Default or Event of Default has occurred and is
continuing or would be caused thereby (except with respect to
clauses&nbsp;(6) and (8), which payments will be permitted
notwithstanding an Event of Default), the preceding provisions
will not prohibit:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;the payment of any dividend or the consummation of any
    irrevocable redemption or payment within 60&nbsp;days after the
    date of declaration of the dividend or giving of the redemption
    notice or becoming irrevocably obligated to make such payment,
    as the case may be, if at the date of declaration or notice or
    becoming irrevocably obligated to make such payment, the
    dividend or payment would have complied with the provisions of
    the indenture;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;the making of any Restricted Payment in exchange for,
    or out of the net cash proceeds of the substantially concurrent
    sale (other than to a Subsidiary of AREP (including any
    Guarantor)) of, Equity Interests (other than Disqualified Stock)
    or from the substantially concurrent contribution of equity
    capital to AREP; provided, however, that the amount of any such
    net cash proceeds that are utilized for any such redemption,
    repurchase, retirement, defeasance or other acquisition will be
    excluded from clause&nbsp;(3)(b) of the preceding paragraph;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;the repurchase, redemption, defeasance or other
    acquisition or retirement for value of Indebtedness of AREP or
    any Guarantor that is contractually subordinated to the notes
    with the net cash proceeds from a substantially concurrent
    incurrence of Permitted Refinancing Indebtedness;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;the declaration or payment of any dividend or
    distribution by a Subsidiary of AREP (including any Guarantor)
    to the holders of its Equity Interests; provided, that if any
    such dividend or distribution is paid to an Affiliate of the
    Principal (other than AREP or any of its Subsidiaries (including
    any Guarantor)), that any such dividend or distribution is paid
    on a pro rata basis to all holders (including AREP or any of its
    Subsidiaries (including any Guarantor)) that hold securities
    whose terms (either contractually or by law) entitle them to the
    same distribution upon which such dividend or distribution is
    paid;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (5)&nbsp;the repurchase, redemption or other acquisition or
    retirement for value of any Equity Interests of AREP or any
    Subsidiary of AREP (including any Guarantor) held by any member
    of AREP&#146;s (or any of its Subsidiaries&#146; (including any
    Guarantors)) management pursuant to any management equity
    subscription agreement, stock option agreement or similar
    agreement; provided that the aggregate price paid for all such
    repurchased, redeemed, acquired or retired Equity Interests
    shall not exceed $2.0&nbsp;million;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (6)&nbsp;for so long as AREP is a partnership or otherwise a
    pass-through entity for federal income tax purposes for any
    period, AREP may make cash distributions to its equity holders
    or partners in an amount not to exceed the Tax Amount for such
    period; provided that a distribution of the Tax Amount shall be
    made no earlier than 20&nbsp;days prior to the due date for such
    tax (or the date that quarterly estimated taxes are required to
    be paid) that would be payable by AREP if it were a Delaware
    corporation;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (7)&nbsp;the purchase, redemption or retirement for value of
    Capital Stock of AREP not owned by the Principal or any
    Affiliate of the Principal, provided that (a)&nbsp;AREP would,
    at the time of such Restricted Payment and after giving pro
    forma effect thereto as if such Restricted Payment had been made
    at the beginning of the most recently ended four-quarter period
    for which financial statements are available, have been
    permitted to incur at least $1.00 of additional Indebtedness
    pursuant to the first paragraph of the covenant described below
    under the caption &#147;&#151;&nbsp;Incurrence of Indebtedness
    and Issuance of Preferred Stock&#148; and (b)&nbsp;after giving
    effect to such purchase, redemption or retirement, the
    Partners&#146; Equity is at least $1.0&nbsp;billion;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (8)&nbsp;the payment of dividends on the Preferred Units in the
    form of additional Preferred Units or other Capital Stock of
    AREP (that is not Disqualified Stock) or the payment of cash
    dividends on the Preferred Units in lieu of fractional Preferred
    Units; provided that the aggregate amount of cash under this
    clause&nbsp;(8) does not exceed $100,000 in any calendar year;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">47

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (9)&nbsp;the purchase, redemption or retirement for value of the
    Preferred Units on or before March&nbsp;31, 2010, provided that
    (a)&nbsp;AREP would, at the time of such Restricted Payment and
    after giving pro forma effect thereto as if such Restricted
    Payment had been made at the beginning of the most recently
    ended four-quarter period for which financial statements are
    available, have been permitted to incur at least $1.00 of
    additional Indebtedness pursuant to the first paragraph of the
    covenant described below under the caption
    &#147;&#151;&nbsp;Incurrence of Indebtedness and Issuance of
    Preferred Stock&#148; and (b)&nbsp;after giving effect to such
    purchase, redemption or retirement, the Partners&#146; Equity is
    at least $1.0&nbsp;billion;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (10)&nbsp;other Restricted Payments in an aggregate amount not
    to exceed $50.0&nbsp;million since the date of the indenture.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For purposes of determining compliance with this covenant, in
the event that a proposed Restricted Payment meets the criteria
of more than one of the categories of Restricted Payments
described in clauses&nbsp;(1) through (10) above, or is
permitted to be made pursuant to the first paragraph of this
covenant, AREP shall, in its sole discretion, classify (or later
reclassify, in whole or in part, in its sole discretion) such
Restricted Payment in any manner that complies with this
covenant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The amount of all Restricted Payments (other than cash) will be
the Fair Market Value on the date of the Restricted Payment of
the assets, property or securities proposed to be transferred or
issued by AREP or such Subsidiary (including AREH), as the case
may be, pursuant to the Restricted Payment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Incurrence of Indebtedness and Issuance of Preferred
Stock</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Neither AREP nor any Guarantor will create, incur, issue,
assume, guarantee or otherwise become liable, contingently or
otherwise, with respect to (collectively, &#147;incur&#148;) any
Indebtedness (including Acquired Debt), and neither AREP nor any
Guarantor will issue any Disqualified Stock; provided, however,
that AREP or any Guarantor may incur Indebtedness (including
Acquired Debt) or issue Disqualified Stock, if immediately after
giving effect to the incurrence of additional Indebtedness
(including Acquired Debt) or issuance of Disqualified Stock
(including a pro forma application of the net proceeds
therefrom), the ratio of the aggregate principal amount of all
outstanding Indebtedness (excluding Indebtedness incurred
pursuant to clauses&nbsp;(4), (7) and (8) of the following
paragraph and any Hedging Obligations of AREP&#146;s
Subsidiaries that are not Guarantors) of AREP and its
Subsidiaries (including any Guarantor) on a consolidated basis
determined in accordance with GAAP (including an amount of
Indebtedness equal to the principal amount of any Guarantees by
AREP or its Subsidiaries (including any Guarantor) of any
Indebtedness of a Person (that is not AREP or a Subsidiary) to
the extent such Guarantees were not included in computing
AREP&#146;s or its Subsidiaries&#146; (including any
Guarantor&#146;s) outstanding Indebtedness) to the Tangible Net
Worth of AREP and its Subsidiaries (including any Guarantor) on
a consolidated basis, would have been less than 1.75 to 1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The preceding paragraph of this covenant will not prohibit the
incurrence of any of the following items of Indebtedness
(collectively, &#147;Permitted Debt&#148;):
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;the incurrence by AREP or any Guarantor of Indebtedness
    represented by the notes to be issued on the date of the
    indenture and the exchange notes to be issued pursuant to the
    registration rights agreement;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;the incurrence by AREP or any Guarantor of Permitted
    Refinancing Indebtedness in exchange for, or the net proceeds of
    which are used to refund, refinance or replace Indebtedness
    (other than intercompany Indebtedness) that was incurred under
    the first paragraph of this covenant or clauses&nbsp;(1), (2) or
    (9) of this paragraph or any Existing Indebtedness;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;the incurrence by AREP or any Guarantor of intercompany
    Indebtedness between or among AREP and any of its Subsidiaries
    (including AREH) or the issuance of Disqualified Stock by any
    Guarantor to AREP;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;the incurrence by AREP or any Guarantor of Hedging
    Obligations that are incurred in the normal course of business;</TD>
</TR>

</TABLE>

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (5)&nbsp;the incurrence by AREP or any Guarantor of Indebtedness
    arising from the honoring by a bank or other financial
    institution of a check, draft or similar instrument
    inadvertently drawn against insufficient funds, so long as such
    Indebtedness is covered within five business days;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (6)&nbsp;the incurrence by AREP or any Guarantor of the Existing
    Indebtedness;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (7)&nbsp;Indebtedness arising from any agreement entered into by
    AREP or AREH providing for indemnification, purchase price
    adjustment or similar obligations, in each case, incurred or
    assumed in connection with an asset sale;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (8)&nbsp;Indebtedness of AREP or any Guarantor attributable to
    Bad Boy Guarantees;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (9)&nbsp;the incurrence by AREP or any Guarantor of additional
    Indebtedness in an aggregate principal amount at any time
    outstanding, including all Permitted Refinancing Indebtedness
    incurred to refund, refinance or replace any Indebtedness
    incurred pursuant to this clause&nbsp;(9), not to exceed
    $10.0&nbsp;million at any one time outstanding.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Neither AREP nor any Guarantor will incur any Indebtedness
(including Permitted Debt) that is contractually subordinated in
right of payment to any other Indebtedness of AREP or any
Guarantor unless such Indebtedness is also contractually
subordinated in right of payment to the notes and the Note
Guarantee, as applicable, on substantially identical terms;
provided, however, that no Indebtedness of AREP or any Guarantor
shall be deemed to be contractually subordinated in right of
payment to any other Indebtedness of AREP or any Guarantor for
purposes of this paragraph solely by virtue of being unsecured
or secured to a lesser extent or on a junior Lien basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To the extent AREP or any Guarantor incurs any intercompany
Indebtedness, (a)&nbsp;if AREP or any Guarantor is the obligor
on such Indebtedness, such Indebtedness (other than intercompany
Indebtedness of any Guarantor to or from AREP or another
Guarantor) must be expressly subordinated to the prior payment
in full in cash of all Obligations with respect to the notes and
(b)(i) any subsequent issuance or transfer of Equity Interests
that results in any such Indebtedness being held by a Person
other than AREP or a Subsidiary of AREP (including any
Guarantor) and (ii)&nbsp;any sale or other transfer of any such
Indebtedness to a Person that is not either AREP or a Subsidiary
of AREP (including any Guarantor) shall be deemed, in each case,
to constitute an incurrence of such Indebtedness by AREP or any
Guarantor, that is not intercompany Indebtedness; provided that
in the case of clause&nbsp;(a), that no restriction on the
payment of principal, interest or other obligations in
connection with such intercompany Indebtedness shall be required
by such subordinated terms except during the occurrence and
continuation of a Default or Event of Default.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For purposes of determining compliance with this covenant, in
the event that an item of Indebtedness meets the criteria of
more than one of the categories of Permitted Debt described in
clauses&nbsp;(1) through (9) above or is entitled to be incurred
pursuant to the first paragraph of this covenant, in each case,
as of the date of incurrence thereof, AREP shall, in its sole
discretion, classify (or later reclassify in whole or in part,
in its sole discretion) such item of Indebtedness in any manner
that complies with this covenant and such Indebtedness will be
treated as having been incurred pursuant to such clauses or the
first paragraph hereof, as the case may be, designated by AREP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The accrual of interest, the accretion or amortization of
original issue discount, the payment of interest or Other
Liquidated Damages on any Indebtedness in the form of additional
Indebtedness with the same terms, the reclassification of
preferred stock as Indebtedness due to a change in accounting
principles, and the payment of dividends on Disqualified Stock
in the form of additional shares of the same class of
Disqualified Stock will not be deemed to be an incurrence of
Indebtedness or an issuance of Disqualified Stock for purposes
of this covenant. Notwithstanding any other provision of this
covenant, the maximum amount of Indebtedness that AREP or any
Guarantor may incur pursuant to this covenant shall not be
deemed to be exceeded solely as a result of fluctuations in
exchange rates or currency values.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The amount of any Indebtedness outstanding as of any date will
be:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;the accreted value of the Indebtedness, in the case of
    any Indebtedness issued with original issue discount;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">49

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;the principal amount of the Indebtedness, in the case
    of any other Indebtedness;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;in respect of Indebtedness of another Person secured by
    a Lien on the assets of the specified Person, the lesser of:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;the Fair Market Value of such assets at the date of
    determination;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;the amount of the Indebtedness of the other Person.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Limitation on Liens</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Neither AREP nor any Guarantor will, (a)&nbsp;issue, assume or
guarantee any Indebtedness if such Indebtedness is secured by a
Lien upon, or (b)&nbsp;secure any then outstanding Indebtedness
by granting a Lien upon, any Principal Property of AREP or any
Guarantor, now owned or hereafter acquired by AREP or any
Guarantor, without effectively providing that the notes and the
Note Guarantee shall be secured equally and ratably with such
Indebtedness, except that the foregoing restrictions shall not
apply to:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;Liens on any Principal Property acquired after the
    Issuance Date to secure or provide for the payment of the
    purchase price or acquisition cost thereof;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;Liens on Principal Property acquired after the Issuance
    Date existing at the time such Principal Property is acquired;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;Liens on any Principal Property acquired from a
    corporation merged with or into AREP or any Guarantor;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;Liens in favor of AREP or any Guarantor;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (5)&nbsp;Liens in existence on any Principal Property on the
    Issuance Date;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (6)&nbsp;Liens on any Principal Property constituting unimproved
    real property constructed or improved after the Issuance Date to
    secure or provide for the payment or cost of such construction
    or improvement;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (7)&nbsp;Liens in favor of, or required by, governmental
    authorities;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (8)&nbsp;pledges or deposits in connection with workers&#146;
    compensation, unemployment insurance and other social security
    legislation and deposits securing liability to insure carriers
    under insurance arrangements;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (9)&nbsp;Liens for taxes, assessments or governmental charges or
    statutory liens of landlords, carriers, warehousemen, mechanics,
    suppliers, materialmen, repairmen or other similar Liens arising
    in the ordinary course of business or in the improvement or
    repair of any Principal Property not yet due or which are being
    contested in good faith by appropriate proceedings;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (10)&nbsp;any judgment attachment or judgment Lien not
    constituting an Event of Default;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (11)&nbsp;Liens to secure the performance of statutory
    obligations, surety or appeal bonds, performance bonds or other
    obligations of a like nature incurred in the ordinary course of
    business and in the improvement or repair of any Principal
    Property and which obligations are not expressly prohibited by
    the indenture;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (12)&nbsp;Liens to secure Indebtedness of AREP or any Guarantor
    attributable to Bad Boy Guarantees;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (13)&nbsp;Liens in favor of the trustee and required by the
    covenant &#147;Maintenance of Interest Coverage&#148;;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (14)&nbsp;Liens to secure margin Indebtedness; provided that
    such Liens are secured solely by the applicable margin
    securities;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (15)&nbsp;any extension, renewal, substitution or replacement
    (or successive extensions, renewals, substitutions or
    replacements), in whole or in part, of any Lien referred to in
    the foregoing clauses&nbsp;(i) through (xiv), inclusive;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">50

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
provided that in the case of clauses&nbsp;(1), (2) and (3) such
Liens shall only extend to the Principal Property so acquired
(including through any merger or consolidation) and not to any
other Principal Property of AREP or any Guarantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Maintenance of Interest Coverage</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On each Quarterly Determination Date, the Fixed Charge Coverage
Ratio of AREP and the Guarantors will be at least 1.5 to 1.0 for
the four consecutive fiscal quarters most recently completed
prior to such Quarterly Determination Date; provided that, in
the event that the Fixed Charge Coverage Ratio of AREP and the
Guarantors is less than 1.5 to 1.0 for such four consecutive
fiscal quarters, the Issuers shall be deemed to have satisfied
this maintenance test if there is deposited, within 2 Business
Days of such Quarterly Determination Date, an amount in cash
such that the deposited funds, together with any funds
previously deposited pursuant to this covenant (and that have
not been paid out or otherwise released) are in an amount equal
to the Issuers&#146; obligations to pay interest on the notes
for one year; provided further, that the Issuers shall grant to
the trustee, on behalf of the holders of the notes, a first
priority security interest in such deposited funds. At any
subsequent Quarterly Determination Date, if the Fixed Charge
Coverage Ratio of AREP and the Guarantors is at least 1.5 to 1.0
for the four consecutive fiscal quarters most recently completed
prior to such Quarterly Determination Date, such deposited funds
will be released from the security interest granted to the
trustee and paid to or at the direction of AREP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Maintenance of Total Unencumbered Assets</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On each Quarterly Determination Date, the ratio of Total
Unencumbered Assets to the then outstanding principal amount of
the Unsecured Indebtedness will be greater than 1.5 to 1.0 as of
the last day of the fiscal quarter most recently completed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Compliance with Law</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AREP will, and will cause its Subsidiaries (including any
Guarantor) to, comply in all material respects with all
applicable laws, rules and regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>No Investment Company</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Neither AREP nor any Guarantor will register as an
&#147;investment company&#148; as such term is defined in the
Investment Company Act of 1940, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Merger, Consolidation or Sale of Assets</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AREP will not: (1)&nbsp;consolidate or merge with or into
another Person (whether or not AREP, is the surviving entity) or
(2)&nbsp;sell, assign, transfer, convey or otherwise dispose of
all or substantially all of the properties or assets of AREP in
one or more related transactions, to another Person; unless:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;either: (a)&nbsp;AREP is the surviving entity, or
    (b)&nbsp;the Person formed by or surviving any such
    consolidation or merger (if other than AREP) or to which such
    sale, assignment, transfer, conveyance or other disposition has
    been made is a corporation, limited liability company or limited
    partnership entity organized or existing under the laws of the
    United States, any state of the United States or the District of
    Columbia;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;the Person formed by or surviving any such
    consolidation or merger (if other than AREP) or the Person to
    which such sale, assignment, transfer, conveyance or other
    disposition has been made assumes all the obligations of AREP
    under the notes, the indenture and the registration rights
    agreement and upon such assumption such Person will become the
    successor to, and be substituted for, AREP thereunder and all
    references to AREP in each thereof shall then become references
    to such Person and such Person shall thereafter be able to
    exercise every right and power of AREP thereunder;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;immediately after such transaction no Default or Event
    of Default exists;</TD>
</TR>

</TABLE>

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;AREP or the Person formed by or surviving any such
    consolidation or merger (if other than AREP), or to which such
    sale, assignment, transfer, conveyance or other disposition has
    been made would, on the date of such transaction after giving
    pro forma effect thereto and any related financing transactions
    as if the same had occurred at the beginning of the applicable
    four-quarter period, be permitted to incur at least $1.00 of
    additional Indebtedness pursuant to the first paragraph of the
    covenant described above under the caption
    &#147;&#151;&nbsp;Incurrence of Indebtedness and Issuance of
    Preferred Stock;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (5)&nbsp;AREP has delivered to the trustee an Officers&#146;
    Certificate and opinion of counsel, which may be an opinion of
    in-house counsel of AREP or an Affiliate, each stating that such
    transaction complies with the terms of the indenture.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Clauses&nbsp;(1), (2) or (4) above will not apply to or be
required to be complied with in connection with any merger or
consolidation or the sale, assignment, transfer, conveyance or
other disposition of all or substantially all of AREP&#146;s
properties or assets to:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;an Affiliate that has no material assets or liabilities
    where the primary purpose of such transaction is to change AREP
    into a corporation or other form of business entity or to change
    the jurisdiction of formation of AREP and such transaction does
    not cause the realization of any material federal or state tax
    liability that will be paid by AREP or any of its Subsidiaries
    (including AREH). For purposes of this paragraph, the term
    material refers to any assets, liabilities or tax liabilities
    that are greater than 5.0% of the Tangible Net Worth of AREP and
    its Subsidiaries (including AREH) on a consolidated
    basis;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;any Person; provided that AREP receives consideration
    in Cash Equivalents and marketable securities with an aggregate
    Fair Market Value determined at the time of the execution of
    such relevant agreement of at least $1.0&nbsp;billion for such
    merger or consolidation or the sale, assignment, transfer,
    conveyance or other disposition of all or substantially all of
    AREP&#146;s properties or assets. In any transaction referred to
    in this clause&nbsp;(2), and subject to the terms and conditions
    thereof, the trustee shall, without the need of any action by
    the noteholders, (x)&nbsp;confirm that such Person shall not be
    liable for and release such Person from, any obligation of
    AREP&#146;s under the indenture and the notes and
    (y)&nbsp;release any Guarantor from all obligations under its
    Note Guarantee if such Guarantor was directly or indirectly
    sold, assigned, transferred, conveyed or otherwise disposed of
    to such Person in such transaction.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AREP or the Person formed by or surviving any merger or
consolidation will not have to comply with clause&nbsp;(4) above
in connection with any merger or consolidation if the effect of
the merger or consolidation is to cause the Capital Stock of
AREP not owned by the Principal or any Affiliate of the
Principal to be retired or extinguished for consideration that
was provided by the Principal or an Affiliate of the Principal
(other than AREP or its Subsidiaries (including AREH) or the
Person formed by or surviving any merger or consolidation) and
the Partners&#146; Equity immediately after giving effect to the
merger or consolidation is not less than the Partners&#146;
Equity immediately prior to such merger or consolidation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, AREP may not lease all or substantially all of its
properties or assets, in one or more related transactions, to
any other Person. In the case of a lease of all or substantially
all of the assets of AREP, AREP will not be released from its
obligations under the notes or the indenture, as applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AREH will not: (1)&nbsp;consolidate or merge with or into
another Person (whether or not AREH, is the surviving entity) or
(2)&nbsp;sell, assign, transfer, convey or otherwise dispose of
all or substantially all of the properties or assets of AREH in
one or more related transactions, to another Person; unless:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;either: (a)&nbsp;AREH is the surviving entity, or
    (b)&nbsp;the Person formed by or surviving any such
    consolidation or merger (if other than AREH) or to which such
    sale, assignment, transfer, conveyance or other disposition has
    been made is a corporation, limited liability company or limited
    partnership entity organized or existing under the laws of the
    United States, any state of the United States or the District of
    Columbia;</TD>
</TR>

</TABLE>

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;the Person formed by or surviving any such
    consolidation or merger (if other than AREH) or the Person to
    which such sale, assignment, transfer, conveyance or other
    disposition has been made assumes all the obligations of AREH
    under the Note Guarantee (and becomes a Guarantor), the notes,
    the indenture and the registration rights agreement, and upon
    such assumption such Person will become the successor to, and be
    substituted for, AREH thereunder, and all references to AREH in
    each thereof shall than become references to such Person and
    such Person shall thereafter be able to exercise every right and
    power of AREH thereunder;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;immediately after such transaction no Default or Event
    of Default exists;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;AREH or the Person formed by or surviving any such
    consolidation or merger (if other than AREP), or to which such
    sale, assignment, transfer, conveyance or other disposition has
    been made would, on the date of such transaction after giving
    pro forma effect thereto and any related financing transactions
    as if the same had occurred at the beginning of the applicable
    four-quarter period, be permitted to incur at least $1.00 of
    additional Indebtedness pursuant to the first paragraph of the
    covenant described above under the caption
    &#147;&#151;&nbsp;Incurrence of Indebtedness and Issuance of
    Preferred Stock;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (5)&nbsp;AREH has delivered to the trustee an Officers&#146;
    Certificate and opinion of counsel which may be an opinion of
    in-house counsel of AREP or an Affiliate, each stating that such
    transaction complies with the terms of the indenture.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Clauses&nbsp;(1), (2) or (4) above will not apply to or be
required to be complied with in connection with any merger or
consolidation or the sale, assignment, transfer, conveyance or
other disposition of all or substantially all of AREH&#146;s
properties or assets to:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;an Affiliate that has no material assets or liabilities
    where the primary purpose of such transaction is to change AREH
    into a corporation or other form of business entity or to change
    the jurisdiction of formation of AREH and such transaction does
    not cause the realization of any material federal or state tax
    liability that will be paid by AREH or any of its Subsidiaries.
    For purposes of this paragraph, the term material refers to any
    assets, liabilities or tax liabilities that are greater than
    5.0% of the Tangible Net Worth of AREP and its Subsidiaries
    (including AREH) on a consolidated basis;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;any Person; provided that AREP receives consideration
    in Cash Equivalents and marketable securities with an aggregate
    Fair Market Value determined at the time of the execution of
    such relevant agreement of at least $1.0&nbsp;billion for such
    merger or consolidation or the sale, assignment, transfer,
    conveyance or other disposition of all or substantially all of
    AREH&#146;s properties or assets;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;any Person; provided that AREH receives consideration
    in Cash Equivalents and marketable securities with an aggregate
    Fair Market Value determined at the time of the execution of
    such relevant agreement of at least $1.0&nbsp;billion for such
    merger or consolidation or the sale, assignment, transfer,
    conveyance or other disposition of all or substantially all of
    AREH&#146;s properties or assets and AREH remains a Subsidiary
    of AREP.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In any transaction referred to in clause&nbsp;(2) or (3) above,
and subject to the terms and conditions thereof, the trustee
shall, without the need of any action by the noteholders,
(x)&nbsp;confirm that such other Person shall not be liable for
and shall be released from any obligation of AREP&#146;s or
AREH&#146;s under the indenture, the notes and the Note
Guarantees, and (y)&nbsp;release any Guarantor from all
obligations under its Note Guarantee if such Guarantor was
directly or indirectly sold, assigned, transferred, conveyed or
otherwise disposed of to such Person in such transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This &#147;Merger, Consolidation or Sale of Assets&#148;
covenant will not apply to:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;any consolidation or merger, or any sale, assignment,
    transfer, conveyance, lease or other disposition of assets
    between or among AREP, AREH or any one or more
    Guarantors;&nbsp;or</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">53

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

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;any sale, assignment, transfer, conveyance or other
    disposition of Cash Equivalents, including, without limitation,
    any investment or capital contribution of Cash Equivalents, or
    any purchase of property and assets, including, without
    limitation, securities, debt obligations or Capital Stock, with
    Cash Equivalents.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Transactions with Affiliates</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AREP will not, and will not permit any of its Subsidiaries
(including any Guarantor) to, make any payment to, or sell,
lease, transfer or otherwise dispose of any of its properties or
assets to, or purchase any property or assets from, or enter
into or make or amend any transaction, contract, agreement,
understanding, loan, advance or guarantee with, any Affiliate of
AREP (each, an &#147;Affiliate Transaction&#148;), unless:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;the Affiliate Transaction is on terms that are not
    materially less favorable to AREP or the relevant Subsidiary
    (including any Guarantor) than those that would have been
    obtained in a comparable transaction by AREP or such Subsidiary
    (including any Guarantor) with an unrelated Person as determined
    in good faith by the Board of Directors of AREP;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;AREP delivers to the trustee:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;with respect to any Affiliate Transaction or series of
    related Affiliate Transactions involving aggregate consideration
    in excess of $2.0&nbsp;million, a resolution of the Board of
    Directors of AREP set forth in an Officers&#146; Certificate
    certifying that such Affiliate Transaction complies with this
    covenant and that such Affiliate Transaction has been approved
    by a majority of the disinterested members of the Board of
    Directors of AREP;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;with respect to any Affiliate Transaction or series of
    related Affiliate Transactions involving aggregate consideration
    in excess of $10.0&nbsp;million, an opinion as to the fairness
    to AREP or such Subsidiary (including any Guarantor) of such
    Affiliate Transaction from a financial point of view issued by
    an accounting, appraisal or investment banking firm of
    recognized standing.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following items will not be deemed to be Affiliate
Transactions and, therefore, will not be subject to the
provisions of the prior paragraph:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;any employment agreement, employee benefit plan,
    officer or director indemnification agreement or any similar
    arrangement entered into by AREP or any of its Subsidiaries
    (including any Guarantor) in the ordinary course of business and
    payments pursuant thereto including payments or reimbursement of
    payments by API with respect to any such agreement, plan or
    arrangement entered into by API with respect to or for the
    benefit of officers or directors of API (other than any such
    agreements, plans or arrangements entered into by AREP or any of
    its Subsidiaries (including AREH) with Carl Icahn (other than
    employee benefit plans and officer or director indemnification
    agreements generally applicable to officers and directors of
    API, AREP or its Subsidiaries (including AREH));</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;transactions between or among AREP, any Guarantor
    and/or their respective Subsidiaries (except any Subsidiaries of
    which Carl Icahn or Affiliates of Carl Icahn (other then AREP,
    AREH or their Subsidiaries) own more than 10% of the Voting
    Stock);</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;payment (or reimbursement of payments by API) of
    directors&#146; fees to Persons who are not otherwise Affiliates
    of AREP;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;any issuance of Equity Interests (other than
    Disqualified Stock) and Preferred Unit Distributions of AREP to
    Affiliates of AREP;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (5)&nbsp;Restricted Payments that do not violate the provisions
    of the indenture described above under the caption
    &#147;&#151;&nbsp;Restricted Payments&#148;;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (6)&nbsp;transactions between AREP and/or any of its
    Subsidiaries (including any Guarantor), on the one hand, and
    other Affiliates, on the other hand, for the provision of goods
    or services in the ordinary course of business by such other
    Affiliates; provided that such other Affiliate is in the
    business of providing such goods or services in the ordinary
    course of business to unaffiliated third parties and the terms
    and pricing for such goods and services overall are not less
    favorable to AREP and/or its</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">54

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

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Subsidiaries (including AREH) than the terms and pricing upon
    which such goods and services are provided to unaffiliated third
    parties;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (7)&nbsp;the provision or receipt of accounting, financial,
    management, information technology and other ancillary services
    to or from Affiliates, provided that AREP or its Subsidiaries
    (including any Guarantor) in the case of the provision of such
    services, are paid a fee not less than its out of pocket costs
    and allocated overhead (including a portion of salaries and
    benefits) and in the case of the receipt of such services, paid
    a fee not more than such Person&#146;s out-of-pocket costs and
    allocated overhead (including a portion of salaries and
    benefits), in each case, as determined by AREP in its reasonable
    judgment;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (8)&nbsp;the license of a portion of office space pursuant to a
    license agreement, dated as of February&nbsp;1, 1997, between
    AREP and an Affiliate of API and any renewal thereof;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (9)&nbsp;the payment to API and reimbursements of payments made
    by API of expenses relating to AREP&#146;s, AREH&#146;s or any
    Guarantors&#146; status as a public company;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (10)&nbsp;services provided and payments received by NEG from
    NEG Operating LLC, TransTexas Gas Corporation and Panaco, Inc.
    pursuant to the NEG Management Agreements;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (11)&nbsp;the pledge by NEG of its interest in the Capital Stock
    of NEG Holding LLC pursuant to the NEG Credit Agreement;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (12)&nbsp;the exchange by AREH of its GB Securities for other
    securities of GB Holdings, Inc.; provided that such exchange is
    on terms no less favorable to AREH as the exchange of GB
    Securities offered to other non-Affiliated Persons;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (13)&nbsp;payments by AREH, AREP or any Subsidiary to API in
    connection with services provided to AREH, AREP or any
    Subsidiary in accordance with the AREP Partnership Agreement; and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (14)&nbsp;the Acquisitions.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Reports</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Whether or not required by the rules and regulations of the SEC,
so long as any notes are outstanding, the Issuers will furnish
to the holders of notes or cause the trustee to furnish to the
holders of notes, within the time periods specified in the
SEC&#146;s rules and regulations:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;all quarterly and annual reports that would be required
    to be filed with the SEC on Forms&nbsp;10-Q and 10-K if the
    Issuers were required to file such reports;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;all current reports that would be required to be filed
    with the SEC on Form&nbsp;8-K if the Issuers were required to
    file such reports.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All such reports will be prepared in all material respects in
accordance with all of the rules and regulations applicable to
such reports. Each annual report on Form&nbsp;10-K will include
a report on the Issuers&#146; consolidated financial statements
by the Issuers&#146; certified independent accountants. In
addition, the Issuers will file a copy of each of the reports
referred to in clauses&nbsp;(1) and (2) above with the SEC for
public availability within the time periods specified in the
rules and regulations applicable to such reports (unless the SEC
will not accept such a filing) and, if the SEC will not accept
such a filing, will post the reports on its website within those
time periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If, at any time, the Issuers are no longer subject to the
periodic reporting requirements of the Exchange Act for any
reason, the Issuers will nevertheless continue filing the
reports specified in the preceding paragraphs of this covenant
with the SEC within the time periods specified above unless the
SEC will not accept such a filing. The Issuers will not take any
action for the purpose of causing the SEC not to accept any such
filings. If, notwithstanding the foregoing, the SEC will not
accept the Issuers&#146; filings for any reason, the Issuers
will post the reports referred to in the preceding paragraphs on
its website within the time periods that would apply if the
Issuers were required to file those reports with the SEC.
</DIV>

<P align="center" style="font-size: 10pt;">55

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the Issuers agree that, for so long as any notes
remain outstanding, if at any time they are not required to file
with the SEC the reports required by the preceding paragraphs,
they will furnish to the holders of notes and to securities
analysts and prospective investors, upon their request, the
information required to be delivered pursuant to
Rule&nbsp;144A(d)(4) under the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Events of Default and Remedies</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following constitutes an Event of Default:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;default in payment when due and payable, upon
    redemption or otherwise, of principal or premium, if any, on the
    notes;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;default for 30&nbsp;days or more in the payment when
    due of interest or Liquidated Damages on the notes;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;failure by the Issuers to call or cause to be called
    for redemption or to purchase or cause to be called any notes,
    in each case when required under the indenture;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;failure by AREP or any Guarantor for 30&nbsp;days after
    written notice from the trustee to comply with the provisions
    described under the captions &#147;&#151;&nbsp;Restricted
    Payments&#148; or &#147;&#151;&nbsp;Incurrence of Indebtedness
    and Issuance of Preferred Stock&#148;;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (5)&nbsp;failure by AREP or any Guarantor for 30&nbsp;days after
    written notice from the trustee to comply with the provisions
    described under the captions &#147;&#151;&nbsp;Maintenance of
    Interest Coverage&#148; or &#147;&#151;&nbsp;Maintenance of
    Total Unencumbered Assets&#148;;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (6)&nbsp;failure by the Issuers or any Guarantor for
    60&nbsp;days after notice from the trustee or the holders of at
    least 25% in aggregate principal amount of the notes then
    outstanding to comply with any of their other agreements in the
    indenture or the notes or the Note Guarantee;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (7)&nbsp;default under any mortgage, indenture or instrument
    under which there is issued or by which there is secured or
    evidenced any Indebtedness for money borrowed by the Issuers or
    any Guarantor or default on any Guarantee by the Issuers or AREH
    of Indebtedness, whether such Indebtedness or Guarantee now
    exists or is created after the Issuance Date, which default
    (a)&nbsp;is caused by a failure to pay when due at final
    maturity (giving effect to any grace period or waiver related
    thereto) the principal of such Indebtedness (a &#147;Payment
    Default&#148;) or (b)&nbsp;results in the acceleration of such
    Indebtedness prior to its express maturity and, in each case,
    the principal amount of any such Indebtedness as to which AREP
    or any Guarantor is obligated to pay, together with the
    principal amount of any other such Indebtedness under which a
    Payment Default then exists or with respect to which the
    maturity thereof has been so accelerated or which has not been
    paid at maturity as to which AREP or any Guarantor is obligated
    to pay, aggregates $10.0&nbsp;million or more;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (8)&nbsp;failure by the Issuers or any Guarantor to pay final
    judgments aggregating in excess of $10.0&nbsp;million, which
    final judgments remain unpaid, undischarged or unstayed for a
    period of more than 60&nbsp;days after such judgment becomes a
    final judgment;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (9)&nbsp;except as permitted by the indenture, any Note
    Guarantee is held in any judicial proceeding to be unenforceable
    or invalid or ceases for any reason to be in full force and
    effect, or AREH or any other Guarantor, or any Person acting on
    behalf of any Guarantor, denies or disaffirms its obligations
    under its Note Guarantee;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (10)&nbsp;certain events of bankruptcy or insolvency with
    respect to AREP or any Guarantor that is a Significant
    Subsidiary.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If any Event of Default (other than by reason of bankruptcy or
insolvency) occurs and is continuing, the holders of more than
25% in principal amount of the then outstanding notes may
declare the principal, premium, if any, interest, Liquidated
Damages, if any, and any other monetary obligations on all the
notes to be due and payable immediately. Notwithstanding the
foregoing, in the case of an Event of Default arising from
certain events of bankruptcy or insolvency, with respect to the
Issuers or any Guarantor that is a
</DIV>

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<DIV align="left" style="font-size: 10pt;">
Significant Subsidiary all outstanding notes will become due and
payable without further action or notice. Holders of the notes
may not enforce the indenture or the notes except as provided in
the indenture. Subject to certain limitations, holders of a
majority in principal amount of the then outstanding notes may
direct the trustee in its exercise of any trust or power
conferred on it. However, the trustee may refuse to follow any
direction that conflicts with law or the indenture that the
trustee determines may be unduly prejudicial to the rights of
other holders of notes or that may involve the trustee in
personal liability. The trustee may withhold from holders of
notes notice of any continuing Default or Event of Default
(except a Default or Event of Default relating to the payment of
principal or interest) if it determines that withholding notice
is in the interests of the holders of the notes. In addition,
the trustee shall have no obligation to accelerate the notes if
in the best judgment of the trustee acceleration is not in the
best interest of the holders of the notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At any time after a declaration of acceleration with respect to
the notes and subject to certain conditions, the holders of a
majority in aggregate principal amount of notes outstanding may
rescind and cancel such acceleration and its consequences.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The holders of at least a majority in aggregate principal amount
of the notes then outstanding by notice to the trustee may on
behalf of the holders of all of the notes waive any existing
Default or Event of Default and its consequences under the
indenture except a continuing Default or Event of Default in the
payment of interest on, premium, if any, or the principal of,
any note held by a non-consenting holder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Issuers will be required to deliver to the trustee annually
a statement regarding compliance with the indenture, and the
Issuers will be required, within ten Business Days, upon
becoming aware of any Default or Event of Default to deliver to
the trustee a statement specifying such Default or Event of
Default.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>No Personal Liability of Directors, Officers, Employees,
Incorporators and Stockholders</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No director, officer, employee, incorporator, manager (or
managing member) direct or indirect member, partner or
stockholder of the Issuers, AREH, API or any additional
Guarantor shall have any liability for any obligations of the
Issuers, AREH, API or any additional Guarantor under the notes,
the indenture, any Note Guarantee or for any claim based on, in
respect of, or by reason of such obligations or its creation.
Each holder of the notes by accepting a note waives and releases
all such liability. The waiver and release are part of the
consideration for issuance of the notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Covenant Defeasance</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Issuers may, at their option and at any time, elect to have
their obligations and the obligations of any of their
Subsidiaries or AREH released with respect to certain covenants
that are described in the indenture (&#147;Covenant
Defeasance&#148;) and, thereafter, any omission to comply with
such obligations shall not constitute a Default or Event of
Default with respect to the notes or any Note Guarantee. In the
event Covenant Defeasance occurs, certain events (not including
non-payment, bankruptcy, receivership, rehabilitation and
insolvency events) described under &#147;Events of Default&#148;
will no longer constitute an Event of Default with respect to
the notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In order to exercise Covenant Defeasance:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;the Issuers must irrevocably deposit, or cause to be
    deposited, with the trustee, in trust, for the benefit of the
    holders of the notes, cash in U.S.&nbsp;dollars, non-callable
    Government Securities, or a combination thereof, in such amounts
    as will be sufficient to pay the principal of, premium, if any,
    interest and Liquidated Damages, if any, due on the outstanding
    notes on the stated maturity date or on the applicable
    redemption date, as the case may be, in accordance with the
    terms of the indenture;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;no Default or Event of Default shall have occurred and
    be continuing with respect to certain Events of Default on the
    date of such deposit;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;such Covenant Defeasance shall not result in a breach
    or violation of, or constitute a default under any material
    agreement or instrument (other than the indenture) to which the
    Issuers or any of their Subsidiaries is a party or by which the
    Issuers or any of their Subsidiaries is bound;</TD>
</TR>

</TABLE>

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;the Issuers shall have delivered to the trustee an
    opinion of counsel, which may be an opinion of in-house counsel
    to AREP or an Affiliate, containing customary assumptions and
    exceptions, to the effect that upon and immediately following
    the deposit, the trust funds will not be subject to the effect
    of any applicable bankruptcy, insolvency, reorganization or
    similar laws affecting creditors&#146; rights generally under
    any applicable law;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (5)&nbsp;the Issuers shall have delivered to the trustee an
    Officers&#146; Certificate stating that the deposit was not made
    by the Issuers with the intent of defeating, hindering, delaying
    or defrauding any creditors of AREP or others;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (6)&nbsp;the Issuers shall have delivered to the trustee an
    Officers&#146; Certificate and an opinion of counsel in the
    United States, which may be an opinion of in-house counsel to
    AREP or an Affiliate (which opinion of counsel may be subject to
    customary assumptions and exclusions) each stating that all
    conditions precedent provided for or relating to the Covenant
    Defeasance have been complied with.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Satisfaction and Discharge</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The indenture will be discharged and will cease to be of further
effect as to all notes issued thereunder, when:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;either:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;all notes that have been authenticated, except lost,
    stolen or destroyed notes that have been replaced or paid and
    notes for whose payment money has been deposited in trust and
    thereafter repaid to AREP, have been delivered to the trustee
    for cancellation; or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;all notes that have not been delivered to the trustee
    for cancellation (1)&nbsp;have become due and payable by reason
    of the mailing of a notice of redemption or otherwise,
    (2)&nbsp;will become due and payable within one year or
    (3)&nbsp;are to be called for redemption within 12&nbsp;months
    under arrangements reasonably satisfactory to the trustee for
    the giving of notice of redemption by the trustee in the name,
    and at the reasonable expense of the Issuers, and the Issuers or
    any Guarantor have irrevocably deposited or caused to be
    deposited with the trustee as trust funds in trust solely for
    the benefit of the holders, cash in U.S.&nbsp;dollars,
    non-callable Government Securities, or a combination of cash in
    U.S.&nbsp;dollars and non-callable Government Securities, in
    amounts as will be sufficient without consideration of any
    reinvestment of interest, to pay and discharge the entire
    Indebtedness on the notes not delivered to the trustee for
    cancellation for principal and premium, if any, and accrued but
    unpaid interest to the date of maturity or redemption;</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;no Default of Event of Default has occurred and is
    continuing on the date of the deposit or will occur as a result
    of the deposit and the deposit will not result in a breach or
    violation of, or constitute a default under, any other material
    instrument to which the Issuers are a party or by which the
    Issuers are bound;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;the Issuers have paid or caused to be paid all sums
    payable by it under the indenture;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;the Issuers or any Guarantor have delivered irrevocable
    instructions to the trustee under the indenture to apply the
    deposited money toward the payment of the notes at maturity or
    the redemption date, as the case may be.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the Issuers must deliver an Officers&#146;
Certificate and an opinion of counsel to the trustee stating
that all conditions precedent to satisfaction and discharge have
been satisfied.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Amendment, Supplement and Waiver</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except as provided in the next two succeeding paragraphs, the
indenture, the notes or the Note Guarantee may be amended or
supplemented with the consent of the holders of at least a
majority in principal amount of the notes then outstanding
(including consents obtained in connection with a tender offer
or exchange offer for notes), and any existing default or
compliance with any provision of the indenture, the notes
</DIV>

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<DIV align="left" style="font-size: 10pt;">
or the Note Guarantee may be waived with the consent of the
holders of a majority in principal amount of the then
outstanding notes (including consents obtained in connection
with a tender offer or exchange offer for notes).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Without the consent of each holder affected, an amendment or
waiver may not (with respect to any notes held by a
nonconsenting holder of notes):
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;reduce the principal amount of notes whose holders must
    consent to an amendment, supplement or waiver;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;reduce the principal of or change the fixed maturity of
    any note or alter or waive the provisions with respect to the
    redemption of the notes;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;reduce the rate of or change the time for payment of
    interest on any note;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;waive a Default or Event of Default in the payment of
    principal of, premium or interest on the notes (except a
    rescission of acceleration of the notes by the holders of at
    least a majority in aggregate principal amount of the notes and
    a waiver of the payment default that resulted from such
    acceleration);</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (5)&nbsp;make any note payable in money other than that stated
    in the notes;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (6)&nbsp;make any change in the provisions of the indenture
    relating to waivers of past Defaults or the rights of holders of
    notes to receive payments of principal of or premium, if any, or
    interest on the notes;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (7)&nbsp;release AREH or any other Guarantor from any of its
    obligations under its Note Guarantee or the indenture, except in
    accordance with the terms of the indenture; or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (8)&nbsp;make any change in the foregoing amendment and waiver
    provisions.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Notwithstanding the foregoing, without the consent of any holder
of notes, the Issuers, the Guarantors and the trustee together
may amend or supplement the indenture, any Note Guarantee or the
notes to cure any ambiguity, defect or inconsistency, to comply
with the covenant relating to mergers, consolidations and sales
of assets, to provide for uncertificated notes in addition to or
in place of certificated notes, to provide for the assumption of
the Issuers&#146; or any Guarantor&#146;s obligations to holders
of the notes and any Note Guarantee in the case of a merger,
consolidation or asset sale, to make any change that would
provide any additional rights or benefits to the holders of the
notes or that does not adversely affect the legal rights under
the indenture of any such holder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Concerning the Trustee</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The indenture will contain certain limitations on the rights of
the trustee, should it become a creditor of the Issuers or AREH,
to obtain payment of claims in certain cases, or to realize on
certain property received in respect of any such claim as
security or otherwise. The trustee will be permitted to engage
in other transactions; however, if it acquires any conflicting
interest it must eliminate such conflict within 90&nbsp;days or
resign.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The holders of a majority in aggregate principal amount of the
then outstanding notes will have the right to direct the time,
method and place of conducting any proceeding for exercising any
remedy available to the trustee, subject to certain exceptions.
The indenture will provide that in case an Event of Default
shall occur (which shall not be cured), the trustee will be
required, in the exercise of its power, to use the degree of
care of a prudent person in the conduct of his own affairs.
Subject to such provisions, the trustee will be under no
obligation to exercise any of its rights or powers under the
indenture at the request of any holder of notes, unless such
holder shall have offered to the trustee security and indemnity
satisfactory to it against any loss, liability or expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Governing Law</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The indenture and the notes will be, subject to certain
exceptions, governed by and construed in accordance with the
internal laws of the State of New York, without regard to the
choice of law rules thereof.
</DIV>

<P align="center" style="font-size: 10pt;">59

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<DIV align="left" style="font-size: 10pt;">
The issuance of the notes and the Note Guarantee will also be
subject to a certain extent to the laws of the jurisdiction of
formation of AREP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Additional Information</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any holder of the notes may obtain a copy of the indenture
without charge by writing to American Real Estan Partners, L.P.,
Attn: Chief Financial Officer at 100 South Bedford Road, Mt.
Kisco, New York 10549.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Book-Entry, Delivery and Form</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The new notes will be issued in one or more notes in global form
or Global Notes. Except as set forth below, the notes will be
issued in registered, global form in minimum denominations of
$1,000 and integral multiples of $1,000 in excess of $1,000. The
Global Notes will be deposited upon issuance with the trustee as
custodian for DTC or its nominee, in each case for credit to
account of a direct or indirect participant in DTC, as described
below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except as set forth below, the Global Notes may be transferred,
in whole and not in part, only to another nominee of DTC or to a
successor of DTC or its nominee. Beneficial interests in the
Global Notes may not be exchanged for definitive notes in
registered certificated form (&#147;Certificated Notes&#148;)
except in the limited circumstances described below. See
&#147;&#151;&nbsp;Exchange of Global Notes for Certificated
Notes.&#148; Except in the limited circumstances described
below, owners of beneficial interests in the Global Notes will
not be entitled to receive physical delivery of notes in
certificated form.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, transfers of beneficial interests in the Global
Notes will be subject to the applicable rules and procedures of
DTC and its direct and indirect participants (including, if
applicable, those of Euroclear and Clearstream), which may
change from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prospective purchasers are advised that the laws of some states
require that certain Persons take physical delivery in
definitive form of securities that they own. Consequently, the
ability to transfer beneficial interests in a Global Note to
such Persons will be limited to such extent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
So long as the Global Note Holder is the registered owner of any
notes, the Global Note Holder will be considered the sole holder
under the indenture of any notes evidenced by the Global Notes.
Beneficial owners of notes evidenced by the Global Notes will
not be considered the owners of holders of the notes under the
indenture for any purpose, including with respect to the giving
of any directions, instructions or approvals to the trustee
thereunder. Neither the issuers nor the trustee will have any
responsibility or liability for any aspect of the records of DTC
or for maintaining, supervising or reviewing any record of DTC
relating to the notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Depository Procedures</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following description of the operations and procedures of
DTC, Euroclear and Clearstream are provided solely as a matter
of convenience. These operations and procedures are solely
within the control of the respective settlement systems and are
subject to changes by them. The Issuers take no responsibility
for these operations and procedures and urge investors to
contact the system or their participants directly to discuss
these matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
DTC has advised the Issuers that DTC is a limited-purpose trust
company created to hold securities for its participating
organizations (collectively, the &#147;Participants&#148;) and
to facilitate the clearance and settlement of transactions in
those securities between the Participants through electronic
book-entry changes in accounts of its Participants. The
Participants include securities brokers and dealers (including
the initial purchasers), banks, trust companies, clearing
corporations and certain other organizations. Access to
DTC&#146;s system is also available to other entities such as
banks, brokers, dealers and trust companies that clear through
or maintain a custodial relationship with a Participant, either
directly or indirectly (collectively, the &#147;Indirect
Participants&#148;). Persons who are not Participants may
beneficially own securities held by or on behalf of DTC only
through the Participants or the Indirect Participants. The
ownership interests in, and transfers of ownership interests in,
each security held by or on behalf of DTC are recorded on the
records of the Participants and Indirect Participants.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Except as described below, owners of interests in the Global
Notes will not have notes registered in their names, will not
receive physical delivery of notes in certificated form and will
not be considered the registered owners or &#147;holders&#148;
thereof under the indenture for any purpose.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Payments in respect of the principal of, and interest and
premium, if any, and Liquidated Damages, if any, on, a Global
Note registered in the name of DTC or its nominee will be
payable to DTC in its capacity as the registered holder under
the indenture. Under the terms of the indenture, the Issuers and
the trustee will treat the Persons in whose names the notes,
including the Global Notes, are registered as the owners of the
notes for the purpose of receiving payments and for all other
purposes. Consequently, neither the Issuers, the trustee nor any
agent of the Issuers or the trustee has or will have any
responsibility or liability for:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;any aspect of DTC&#146;s records or any
    Participant&#146;s or Indirect Participant&#146;s records
    relating to or payments made on account of beneficial ownership
    interest in the Global Notes or for maintaining, supervising or
    reviewing any of DTC&#146;s records or any Participant&#146;s or
    Indirect Participant&#146;s records relating to the beneficial
    ownership interests in the Global Notes; or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;any other matter relating to the actions and practices
    of DTC or any of its Participants or Indirect Participants.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
DTC has advised the Issuers that its current practice, upon
receipt of any payment in respect of securities such as the
notes (including principal and interest), is to credit the
accounts of the relevant Participants with the payment on the
payment date unless DTC has reason to believe that it will not
receive payment on such payment date. Each relevant Participant
is credited with an amount proportionate to its beneficial
ownership of an interest in the principal amount of the relevant
security as shown on the records of DTC. Payments by the
Participants and the Indirect Participants to the beneficial
owners of notes will be governed by standing instructions and
customary practices and will be the responsibility of the
Participants or the Indirect Participants and will not be the
responsibility of DTC, the trustee or the Issuers. Neither the
Issuers nor the trustee will be liable for any delay by DTC or
any of the Participants or the Indirect Participants in
identifying the beneficial owners of the notes, and the Issuers
and the trustee may conclusively rely on and will be protected
in relying on instructions from DTC or its nominee for all
purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Transfers between the Participants will be effected in
accordance with DTC&#146;s procedures, and will be settled in
same-day funds, and transfers between participants in Euroclear
and Clearstream will be effected in accordance with their
respective rules and operating procedures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cross-market transfers between the Participants, on the one
hand, and Euroclear or Clearstream participants, on the other
hand, will be effected through DTC in accordance with DTC&#146;s
rules on behalf of Euroclear or Clearstream, as the case may be,
by their respective depositaries; however, such cross-market
transactions will require delivery of instructions to Euroclear
or Clearstream, as the case may be, by the counterparty in such
system in accordance with the rules and procedures and within
the established deadlines (Brussels time) of such system.
Euroclear or Clearstream, as the case may be, will, if the
transaction meets its settlement requirements, deliver
instructions to its respective depositary to take action to
effect final settlement on its behalf by delivering or receiving
interests in the relevant Global Note in DTC, and making or
receiving payment in accordance with normal procedures for
same-day funds settlement applicable to DTC. Euroclear
participants and Clearstream participants may not deliver
instructions directly to the depositories for Euroclear or
Clearstream.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
DTC has advised the Issuers that it will take any action
permitted to be taken by a holder of notes only at the direction
of one or more Participants to whose account&nbsp;DTC has
credited the interests in the Global Notes and only in respect
of such portion of the aggregate principal amount of the notes
as to which such Participant or Participants has or have given
such direction. However, if there is an Event of Default under
the notes, DTC reserves the right to exchange the Global Notes
for legended notes in certificated form, and to distribute such
notes to its Participants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Although DTC, Euroclear and Clearstream have agreed to the
foregoing procedures to facilitate transfers of interests in the
Global Notes among participants in DTC, Euroclear and
Clearstream, they are under no obligation to perform or to
continue to perform such procedures, and may discontinue such
procedures at any
</DIV>

<P align="center" style="font-size: 10pt;">61

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<DIV align="left" style="font-size: 10pt;">
time. None of the Issuers, the trustee and any of their
respective agents will have any responsibility for the
performance by DTC, Euroclear or Clearstream or their respective
participants or indirect participants of their respective
obligations under the rules and procedures governing their
operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Exchange of Global Notes for Certificated Notes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A Global Note is exchangeable for Certificated Notes if:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;DTC (a)&nbsp;notifies the Issuers that it is unwilling
    or unable to continue as depositary for the Global Notes or
    (b)&nbsp;has ceased to be a clearing agency registered under the
    Exchange Act and, in either case, the Issuers fail to appoint a
    successor depositary;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;the Issuers, at their option, notify the trustee in
    writing that it elects to cause the issuance of the Certificated
    Notes;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;there has occurred and is continuing a Default or Event
    of Default with respect to the notes.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, beneficial interests in a Global Note may be
exchanged for Certificated Notes upon prior written notice given
to the trustee by or on behalf of DTC in accordance with the
indenture. In all cases, Certificated Notes delivered in
exchange for any Global Note or beneficial interests in Global
Notes will be registered in the names, and issued in any
approved denominations, requested by or on behalf of the
depositary (in accordance with its customary procedures).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Exchange of Certificated Notes for Global Notes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certificated Notes may not be exchanged for beneficial interests
in any Global Note unless the transferor first delivers to the
trustee a written certificate (in the form provided in the
indenture) to the effect that such transfer will comply with the
appropriate transfer restrictions applicable to such notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Same Day Settlement and Payment</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Issuers will make payments in respect of the notes
represented by the Global Notes (including principal, premium,
if any, interest and Liquidated Damages, if any) by wire
transfer of immediately available funds to the accounts
specified by DTC or its nominee. The Issuers will make all
payments of principal, interest and premium, if any, and
Liquidated Damages, if any, with respect to Certificated Notes
by wire transfer of immediately available funds to the accounts
specified by the holders of the Certificated Notes or, if no
such account is specified, by mailing a check to each such
holder&#146;s registered address. The notes represented by the
Global Notes are expected to be eligible to trade in DTC&#146;s
Same-Day Funds Settlement System, and any permitted secondary
market trading activity in such notes will, therefore, be
required by DTC to be settled in immediately available funds.
The Issuers expect that secondary trading in any Certificated
Notes will also be settled in immediately available funds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Because of time zone differences, the securities account of a
Euroclear or Clearstream participant purchasing an interest in a
Global Note from a Participant will be credited, and any such
crediting will be reported to the relevant Euroclear or
Clearstream participant, during the securities settlement
processing day (which must be a business day for Euroclear and
Clearstream) immediately following the settlement date of DTC.
DTC has advised the Issuers that cash received in Euroclear or
Clearstream as a result of sales of interests in a Global Note
by or through a Euroclear or Clearstream participant to a
Participant will be received with value on the settlement date
of DTC but will be available in the relevant Euroclear or
Clearstream cash account only as of the business day for
Euroclear or Clearstream following DTC&#146;s settlement date.
</DIV>

<P align="center" style="font-size: 10pt;">62

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Certain Definitions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Set forth below are certain defined terms used in the indenture.
Reference is made to the indenture for full disclosure of all
such terms, as well as any other capitalized terms used herein
for which no definition is provided.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Acquired Debt&#148; </I>means, with respect to any
specified Person:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;Indebtedness of any other Person existing at the time
    such other Person is merged with or into or became a Subsidiary
    of such specified Person, whether or not such Indebtedness is
    incurred in connection with, or in contemplation of, such other
    Person merging with or into, or becoming a Subsidiary of, such
    specified Person;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;Indebtedness secured by a Lien encumbering any asset
    acquired by such specified Person.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Affiliate&#148; </I>of any specified Person means any
other Person directly or indirectly controlling or controlled by
or under direct or indirect common control with such specified
Person. For purposes of this definition, &#147;control,&#148; as
used with respect to any Person, means the possession, directly
or indirectly, of the power to direct or cause the direction of
the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise;
provided that beneficial ownership of 10% or more of the Voting
Stock of a Person will be deemed to be control. For purposes of
this definition, the terms &#147;controlling,&#148;
&#147;controlled by&#148; and &#147;under common control
with&#148; have correlative meanings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;API&#148; </I>means American Property Investors, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Acquisitions&#148;</I> means:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;AREP&#146;s purchase of Gascon Partners&#146;
    membership interest of NEG Holding LLC pursuant to a purchase
    agreement with Gascon Partners dated January&nbsp;21, 2005 or,
    alternatively, if AREP does not obtain the consent of NEG
    Operating&#146;s bank lenders or refinance such debt,
    AREP&#146;s purchase of all of the general partnership interests
    of Gascon Partners;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;National Onshore&nbsp;LP&#146;s merger with TransTexas
    Gas Corporation pursuant to an agreement and plan of Merger
    dated January&nbsp;21, 2005;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;National Offshore&nbsp;LP&#146;s merger with Panaco,
    Inc. pursuant to an agreement and plan of merger dated
    January&nbsp;21, 2005;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;AREP&#146;s purchase of approximately 41.2% of the
    outstanding common stock of GB Holdings, Inc. and warrants to
    purchase approximately 11.3% of the fully diluted common stock
    of Atlantic Coast Entertainment Holdings, Inc. pursuant to a
    purchase agreement with Cyrus, LLC dated January&nbsp;21, 2005;
    and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (5)&nbsp;the transactions contemplated by clauses (1) through
    (4), above, including but not limited to the registration rights
    agreement to be entered into between AREP and the other
    signatories thereto.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;AREH&#148; </I>means American Real Estate Holdings
Limited Partnership.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;AREP&#148; </I>means American Real Estate Partners, L.P.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;AREP Finance&#148; </I>means American Real Estate
Finance Corp.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;AREP Partnership Agreement&#148; </I>means AREP&#146;s
Amended and Restated Agreement of Limited Partnership, dated
May&nbsp;12, 1987 as amended February&nbsp;22, 1995 and
August&nbsp;16, 1996.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Bad Boy Guarantees&#148; </I>means the Indebtedness of
any specified Person attributable to &#147;bad boy&#148;
indemnification or Guarantees, which Indebtedness would be
non-recourse to AREP and AREH other than recourse relating to
the specific events specified therein, which such events shall
be usual and customary exceptions typically found in
non-recourse financings at such time as determined by management
in its reasonable judgment.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Beneficial Owner&#148; </I>has the meaning assigned to
such term in Rule&nbsp;13d-3 and Rule&nbsp;13d-5 under the
Exchange Act, except that in calculating the beneficial
ownership of any particular &#147;person&#148; (as that term is
used in Section&nbsp;13(d)(3) of the Exchange Act), such
&#147;person&#148; will be deemed to have beneficial ownership
of all securities that such &#147;person&#148; has the right to
acquire by conversion or exercise of other securities, whether
such right is currently exercisable or is exercisable only after
the passage of time. The terms &#147;Beneficially Owns&#148; and
&#147;Beneficially Owned&#148; have a corresponding meaning.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Board of Directors&#148; </I>means:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;with respect to a corporation, the board of directors
    of the corporation or any committee thereof duly authorized to
    act on behalf of such board;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;with respect to a partnership, the Board of Directors
    of the general partner of the partnership;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;with respect to a limited liability company, the
    managing member or members or any controlling committee of
    managing members thereof or the Board of Directors of the
    managing member; and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;with respect to any other Person, the board or
    committee of such Person serving a similar function.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Business Day&#148; </I>means any day excluding
Saturday, Sunday and any day which is a legal holiday under the
laws of the State of New&nbsp;York or is a day on which banking
institutions located in such jurisdictions are authorized or
required by law or other governmental action to close.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Capital Lease Obligation&#148; </I>means, at the time
any determination is to be made, the amount of the liability in
respect of a capital lease that would at that time be required
to be capitalized on a balance sheet prepared in accordance with
GAAP, and the Stated Maturity thereof shall be the date of the
last payment of rent or any other amount due under such lease
prior to the first date upon which such lease may be prepaid by
the lessee without payment of a penalty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Capital Stock&#148; </I>means:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;in the case of a corporation, corporate stock;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;in the case of an association or business entity, any
    and all shares, interests, participations, rights or other
    equivalents (however designated) of corporate stock;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;in the case of a partnership or limited liability
    company, partnership interests (whether general or limited) or
    membership interests; and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;any other interest or participation that confers on a
    Person the right to receive a share of the profits and losses
    of, or distributions of assets of, the issuing Person but
    excluding from all of the foregoing any debt securities
    convertible into Capital Stock, whether or not such debt
    securities include any right of participation with Capital Stock.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Cash Equivalents&#148; </I>means:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;United States dollars;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;securities issued or directly and fully guaranteed or
    insured by the United States government or any agency or
    instrumentality of the United States government (provided that
    the full faith and credit of the United States is pledged in
    support of those securities) having maturities of not more than
    one year from the date of acquisition;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;certificates of deposit and eurodollar time deposits
    with maturities of one year or less from the date of
    acquisition, bankers&#146; acceptances with maturities not
    exceeding one year and overnight bank deposits, in each case,
    with any domestic commercial bank having capital and surplus in
    excess of $500.0&nbsp;million and a Thomson Bank Watch Rating of
    &#147;B&#148; or better;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">64

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;repurchase obligations with a term of not more than
    seven days for underlying securities of the types described in
    clauses&nbsp;(2) and&nbsp;(3) above entered into with any
    financial institution meeting the qualifications specified in
    clause&nbsp;(3) above;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (5)&nbsp;commercial paper having one of the two highest ratings
    obtainable from Moody&#146;s Investors Service, Inc. or
    Standard&nbsp;&#38; Poor&#146;s Rating Services and, in each
    case, maturing within one year after the date of acquisition; and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (6)&nbsp;money market funds at least&nbsp;95% of the assets of
    which constitute Cash Equivalents of the kinds described in
    clauses&nbsp;(1) through&nbsp;(5) of this definition.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Cash Flow of AREP and the Guarantors&#148; </I>means,
with respect to any period, the Net Income of AREP and the
Guarantors for such period plus, without duplication:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;provision for taxes based on income or profits of AREP
    and the Guarantors or any payments of Tax Amounts by AREP for
    such period, to the extent that such provision for taxes or such
    payments of Tax Amounts were deducted in computing such Net
    Income of AREP or any Guarantor; plus</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;the Fixed Charges of AREP or any Guarantor for such
    period, to the extent that such Fixed Charges of AREP and such
    Guarantor were deducted in computing such Net Income of AREP and
    such Guarantor; plus</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;depreciation, amortization (including amortization of
    intangibles but excluding amortization of prepaid cash expenses
    that were paid in a prior period) and other non-cash expenses
    (excluding any such non-cash expense to the extent that it
    represents an accrual of or reserve for cash expenses in any
    future period or amortization of a prepaid cash expense that was
    paid in a prior period) of AREP and any Guarantor for such
    period to the extent that such depreciation, amortization and
    other non-cash expenses were deducted in computing such Net
    Income of AREP and any Guarantor; minus</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;non-cash items increasing such Net Income of AREP and
    any Guarantor for such period, other than the accrual of revenue
    in the ordinary course of business,</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
in each case, consolidating such amounts for AREP and any
Guarantor but excluding any net income, provision for taxes,
fixed charges, depreciation, amortization or other amounts of
any of the Subsidiaries of AREP (other than any Guarantor) and
otherwise determined in accordance with GAAP; provided, further,
that the Net Income of AREP and any Guarantor shall include
income from investments or Subsidiaries of AREP (other than any
Guarantor) but only to the extent such income is realized in
Cash Equivalents by AREP or any Guarantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Change of Control&#148; </I>means the occurrence of any
of the following:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;the sale, lease, transfer, conveyance or other
    disposition by AREP or AREH (other than by way of merger or
    consolidation), in one or a series of related transactions, of
    all or substantially all of the properties or assets of AREP or
    AREH to any &#147;person&#148; (as that term is used in
    Section&nbsp;13(d) of the Exchange Act) other than the Principal
    or a Related Party; provided, however, that (x)&nbsp;if AREP or
    AREH receives consideration in Cash Equivalents and marketable
    securities with an aggregate Fair Market Value determined at the
    time of the execution of each relevant agreement of at least
    $1.0&nbsp;billion for such sale, lease, transfer, conveyance or
    other disposition of properties or assets, then such transaction
    shall not be deemed a Change of Control and (y)&nbsp;any sale,
    assignment, transfer or other disposition of Cash Equivalents,
    including, without limitation, any investment or capital
    contribution of Cash Equivalents or purchase of property, assets
    or Capital Stock with Cash Equivalents, will not constitute a
    sale, assignment, transfer, conveyance or other disposition of
    all or substantially all of the properties or assets for
    purposes of this clause&nbsp;(1);</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;the adoption of a plan relating to the liquidation or
    dissolution of AREP;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;the consummation of any transaction (including, without
    limitation, any merger or consolidation), the result of which is
    that any &#147;person&#148; (as defined above), other than the
    Principal or the Related</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">65

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Parties, becomes the Beneficial Owner, directly or indirectly,
    of more than&nbsp;50% of the Voting Stock of a Controlling
    Entity of AREP, measured by voting power rather than number of
    shares;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;the first day on which a majority of the members of the
    Board of Directors of the Controlling Entity are not Continuing
    Directors;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (5)&nbsp;for so long as AREP is a partnership, upon any general
    partner of AREP ceasing to be an Affiliate of the Principal or a
    Related Party.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Change of Control Offer&#148; </I>has the meaning
assigned to that term in the indenture governing the notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Consolidated Net Income&#148; </I>means, with respect
to any specified Person for any period, the aggregate of net
income (loss) of such Person, on a consolidated basis with its
Subsidiaries, determined in accordance with GAAP and before any
reduction in respect of preferred stock dividends; provided that:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;the Net Income of any Person that is accounted for by
    the equity method of accounting or that is a Subsidiary will be
    included only to the extent of the amount of dividends or
    similar distributions paid in cash to the specified Person or a
    Subsidiary of the Person;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;the Net Income of any of its Subsidiaries will be
    excluded to the extent that the declaration or payment of
    dividends or similar distributions by that Subsidiary of that
    Net Income is not at the date of determination permitted without
    any prior governmental approval (that has not been obtained) or,
    directly or indirectly, by operation of the terms of its charter
    or any agreement, instrument, judgment, decree, order, statute,
    rule or governmental regulation applicable to that Subsidiary or
    its stockholders; and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;the cumulative effect of a change in accounting
    principles will be excluded.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Continuing Directors&#148;</I> means, as of any date of
determination, any member of the Board of Directors of AREP who:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;was a member of such Board of Directors on the date of
    the indenture;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;was nominated for election or elected to such Board of
    Directors with the approval of the Principal or any of the
    Related Parties or with the approval of a majority of the
    Continuing Directors who were members of such Board of Directors
    at the time of such nomination or election.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Control&#148; </I>means the possession, directly or
indirectly, of the power to direct or cause the direction of
management and policies of a Person, whether through the
ownership of Voting Stock, by agreement or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Controlling Entity&#148; </I>means (1)&nbsp;for so long
as AREP is a partnership, any general partner of AREP,
(2)&nbsp;if AREP is a limited liability company, any managing
member of AREP or (3)&nbsp;if AREP is a corporation, AREP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Default&#148; </I>means any event that is, or with the
passage of time or the giving of notice or both would be, an
Event of Default.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Disqualified Stock&#148; </I>means any Capital Stock
that, by its terms (or by the terms of any security into which
it is convertible, or for which it is exchangeable, in each
case, at the option of the holder of the Capital Stock), or upon
the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise,
or redeemable at the option of the holder of the Capital Stock,
in whole or in part, on or prior to the date that is
91&nbsp;days after the date on which the notes mature.
Notwithstanding the preceding sentence, any Capital Stock that
would constitute Disqualified Stock solely because the holders
of the Capital Stock have the right to require AREP or any
Guarantor to repurchase such Capital Stock upon the occurrence
of a change of control, event of loss, an asset sale or other
special redemption event will not constitute Disqualified Stock
if the terms of such Capital Stock provide that AREP or any
Guarantor may not repurchase or redeem any such Capital Stock
pursuant to such provisions unless such repurchase or redemption
complies with the covenant described above under the caption
&#147;&#151;&nbsp;Certain Covenants&nbsp;&#151; Restricted
Payments&#148; or where the funds to pay for such repurchase was
from the net cash proceeds of such
</DIV>

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<DIV align="left" style="font-size: 10pt;">
Capital Stock and such net cash proceeds was set aside in a
separate account to fund such repurchase. Furthermore, any
Capital Stock that would constitute Disqualified Stock solely
because the holders of the Capital Stock have the right to
require AREP or any Guarantor to redeem such Capital Stock,
including, without limitation, upon maturity will not constitute
Disqualified Stock if the terms of such Capital Stock provide
that AREP or any Guarantor may redeem such Capital Stock for
other Capital Stock that is not Disqualified Stock. The amount
of Disqualified Stock deemed to be outstanding at any time for
purposes of the indenture will be the maximum amount that AREP
and its Subsidiaries (including any Guarantor) may become
obligated to pay upon the maturity of, or pursuant to any
mandatory redemption provisions of, such Disqualified Stock,
exclusive of accrued dividends. For the avoidance of doubt, and
by way of example, the Preferred Units, as in effect on the date
of the indenture, do not constitute Disqualified Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Equity Interests&#148; </I>means Capital Stock and all
warrants, options or other rights to acquire Capital Stock (but
excluding any debt security that is convertible into, or
exchangeable for, Capital Stock).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Equity Offering&#148; </I>means an offer and sale of
Capital Stock (other than Disqualified Stock) of AREP (other
than an offer and sale relating to equity securities issuable
under any employee benefit plan of AREP) or a capital
contribution in respect of Capital Stock (other than
Disqualified Stock) of AREP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Existing Indebtedness&#148; </I>means up to
$394.4&nbsp;million in aggregate principal amount of
Indebtedness of AREP and any Guarantor, in existence on the
Issuance Date, until such amounts are repaid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Fair Market Value&#148; </I>means the value that would
be paid by a willing buyer to an unaffiliated willing seller in
a transaction not involving distress or necessity of either
party, determined in good faith by the Board of Directors of
AREP (unless otherwise provided in the indenture).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Fixed Charge Coverage Ratio of AREP and the
Guarantors&#148; </I>means the ratio of the Cash Flow of AREP
and the Guarantors for such period to the Fixed Charges of AREP
and the Guarantors for such period. In the event that AREP, the
Guarantors or any Guarantor incurs, assumes, guarantees, repays,
repurchases, redeems, defeases or otherwise discharges any
Indebtedness (other than ordinary working capital borrowings) or
issues, repurchases or redeems preferred stock subsequent to the
commencement of the period for which the Fixed Charge Coverage
Ratio of AREP and the Guarantors is being calculated and on or
prior to the Quarterly Determination Date for which the
calculation of the Fixed Charge Coverage Ratio of AREP and the
Guarantors is being made (the &#147;Calculation Date&#148;),
then the Fixed Charge Coverage Ratio of AREP and the Guarantors
will be calculated giving pro forma effect to such incurrence,
assumption, Guarantee, repayment, repurchase, redemption,
defeasance or other discharge of Indebtedness, or such issuance,
repurchase or redemption of preferred stock, and the use of the
proceeds therefrom, as if the same had occurred at the beginning
of the applicable four-quarter reference period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, for purposes of calculating the Fixed Charge
Coverage Ratio:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;acquisitions that have been made by the specified
    Person, including through mergers or consolidations, or any
    Person acquired by the specified Person, and including any
    related financing transactions, during the four-quarter
    reference period or subsequent to such reference period and on
    or prior to the Calculation Date will be given pro forma effect
    (in accordance with Regulation&nbsp;S-X under the Securities
    Act) as if they had occurred on the first day of the
    four-quarter reference period;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;the Cash Flow of AREP and the Guarantors attributable
    to discontinued operations, as determined in accordance with
    GAAP, and operations or businesses (and ownership interests
    therein) disposed of prior to the Calculation Date, will be
    excluded;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;the Fixed Charges of AREP and the Guarantors
    attributable to discontinued operations, as determined in
    accordance with GAAP, and operations or businesses (and
    ownership interests therein) disposed of prior to the
    Calculation Date, will be excluded, but only to the extent that
    such Fixed Charges of AREP and the Guarantors are equal to or
    less than the Cash Flow of AREP and the Guarantors from the
    related discontinued operation excluded under clause&nbsp;(3)
    for such period;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;if any Indebtedness bears a floating rate of interest,
    the interest expense on such Indebtedness will be calculated as
    if the rate in effect on the Calculation Date had been the
    applicable rate for the</TD>
</TR>

</TABLE>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    entire period (taking into account any Hedging Obligation
    applicable to such Indebtedness if such Hedging Obligation has a
    remaining term as at the Calculation Date in excess of
    12&nbsp;months).</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Fixed Charges of AREP and the Guarantors&#148;
</I>means, with respect to any period, the sum, without
duplication, of:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;the interest expense of AREP, and any Guarantor for
    such period, whether paid or accrued, including, without
    limitation, amortization of debt issuance costs and original
    issue discount, non-cash interest payments, the interest
    component of any deferred payment obligations, the interest
    component of all payments associated with Capital Lease
    Obligations, commissions, discounts and other fees and charges
    incurred in respect of letter of credit or bankers&#146;
    acceptance financings, and net of the effect of all payments
    made or received pursuant to Hedging Obligations in respect of
    interest rates; plus</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;the interest expense of AREP and any Guarantor that was
    capitalized during such period; plus</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;any interest on Indebtedness of another Person that is
    guaranteed by AREP or any Guarantor (other than Bad Boy
    Guarantees unless such Bad Boy Guarantee is called upon) or
    secured by a Lien on assets of AREP or any additional Guarantor,
    whether or not such Guarantee or Lien is called upon; provided
    that for purposes of calculating interest with respect to
    Indebtedness that is Guaranteed or secured by a Lien, the
    principal amount of Indebtedness will be calculated in
    accordance with the last two paragraphs of the definition of
    Indebtedness; plus</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;the product of (a)&nbsp;all dividends, whether paid or
    accrued and whether or not in cash, on any series of preferred
    equity of AREP, other than dividends on preferred stock to the
    extent payable in Equity Interests of AREP (other than
    Disqualified Stock) or dividends on preferred equity payable to
    AREP, times (b)&nbsp;a fraction, the numerator of which is one
    and the denominator of which is one minus the then current
    combined federal, state and local statutory income tax rate of
    AREP (however, for so long as AREP is a partnership or otherwise
    a pass-through entity for federal income tax purposes, the
    combined federal, state and local income tax rate shall be the
    rate that was utilized to calculate the Tax Amount of AREP to
    the extent that the Tax Amount was actually distributed with
    respect to such period (and if less than the Tax Amount is
    distributed, such rate shall be proportionately reduced) and if
    no Tax Amount was actually distributed with respect to such
    period, such combined federal, state and local income tax rate
    shall be zero), expressed as a decimal; provided that this
    clause&nbsp;(4) will not include any Preferred Unit Distribution
    paid in additional Preferred Units,</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
in each case, determined on a consolidated basis between AREP
and any Guarantor but on a non-consolidated basis with the
Subsidiaries of AREP (other than any Guarantor) and otherwise in
accordance with GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;GAAP&#148; </I>means generally accepted accounting
principles in the United States set forth in the statements and
pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as have been approved
by a significant segment of the accounting profession, which are
in effect on the Issuance Date. For the purposes of the
indenture, the term &#147;consolidated&#148; with respect to any
Person shall mean such Person consolidated with its Subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Gaming Authority&#148; </I>means any agency, authority,
board, bureau, commission, department, office or instrumentality
of any nature whatsoever of the United States or other national
government, any state, province or any city or other political
subdivision, including, without limitation, the State of Nevada
or the State of New Jersey, whether now or hereafter existing,
or any officer or official thereof and any other agency with
authority thereof to regulate any gaming operation (or proposed
gaming operation) owned, managed or operated by the Principal,
its Related Parties, the Issuers or any of their respective
Subsidiaries or Affiliates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Gaming Law&#148; </I>means any gaming law or regulation
of any jurisdiction or jurisdictions to which the Issuers or any
of their Subsidiaries (including AREH) is, or may at any time
after the issue date be, subject.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;GB Securities&#148; </I>means the 11%&nbsp;notes due
2005 issued by GB Property Funding Corp.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Government Instrumentality&#148; </I>means any
national, state or local government (whether domestic or
foreign), any political subdivision thereof or any other
governmental, quasi-governmental, judicial, public or statutory
instrumentality, authority, body, agency, court, tribunal,
commission, bureau or entity or any arbitrator with authority to
bind a party at law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Government Securities&#148; </I>means securities that
are (1)&nbsp;direct obligations of the United States of America
for the timely payment of which its full faith and credit is
pledged or (2)&nbsp;obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the
United States of America the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation
by the United States of America, which, in either case, are not
callable or redeemable at the option of the issuer thereof, and
shall also include a depository receipt issued by a bank (as
defined in Section&nbsp;3(a)(2) of the Securities Act), as
custodian with respect to any such Government Security or a
specific payment of principal of or interest on any such
Government Security held by such custodian for the account of
the holder of such depository receipt; provided, that (except as
required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such
depository receipt from any amount received by the custodian in
respect of the Government Security or the specific payment of
principal of or interest on the Government Security evidenced by
such depository receipt.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Guarantee&#148; </I>means a guarantee (other than by
endorsement of negotiable instruments for collection in the
ordinary course of business), direct or indirect, in any manner
(including, without limitation, by way of a pledge of assets or
through letters of credit or reimbursement agreements in respect
thereof), of all or any part of any Indebtedness (whether
arising by virtue of partnership arrangements, or by agreements
to keep-well, to purchase assets, goods, securities or services,
to take or pay or to maintain financial statement conditions or
otherwise).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Guarantor&#148; </I>means any Subsidiary of AREP
(initially only AREH) that executes a Note Guarantee in
accordance with the provisions of the indenture, and their
respective successors and assigns, in each case, until the Note
Guarantee of such Person has been released in accordance with
the provisions of the indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Hedging Obligations&#148; </I>means, with respect to
any specified Person, the obligations of such Person under:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;interest rate swap agreements (whether from fixed to
    floating or from floating to fixed), interest rate cap
    agreements and interest rate collar agreements;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;other agreements or arrangements designed to manage
    interest rates or interest rate risk;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;other agreements or arrangements designed to protect
    such Person against fluctuations in currency exchange rates or
    commodity prices.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Indebtedness&#148; </I>means, with respect to any
specified Person, any indebtedness of such Person (excluding
accrued expenses and trade payables), whether or not contingent:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;in respect of borrowed money;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;evidenced by bonds, notes, debentures or similar
    instruments or letters of credit (or reimbursement agreements in
    respect thereof);</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;in respect of banker&#146;s acceptances;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;representing Capital Lease Obligations;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (5)&nbsp;representing the balance deferred and unpaid of the
    purchase price of any property or services due more than six
    months after such property is acquired or such services are
    completed;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (6)&nbsp;representing any Hedging Obligations,</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
if and to the extent any of the preceding items (other than
letters of credit and Hedging Obligations) would appear as a
liability upon a balance sheet of the specified Person prepared
in accordance with GAAP. In addition, the term
&#147;Indebtedness&#148; includes all Indebtedness of others
secured by a Lien on any asset of the
</DIV>

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<DIV align="left" style="font-size: 10pt;">
specified Person (whether or not such Indebtedness is assumed by
the specified Person) and, to the extent not otherwise included,
the Guarantee by the specified Person of any Indebtedness of any
other Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The amount of any Indebtedness outstanding as of any date
attributable to a Guarantee shall be the maximum principal
amount guaranteed by such specified Person as of such date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The amount of any Indebtedness outstanding as of any date shall
be (a)&nbsp;the accreted value thereof, in the case of any
Indebtedness with original issue discount, (b)&nbsp;the
principal amount thereof, together with any interest thereon
that is more than 30&nbsp;days past due, in the case of any
other Indebtedness and (c)&nbsp;in respect of Indebtedness of
another Person secured by a Lien on the assets of the specified
Person, the lesser of (x)&nbsp;the Fair Market Value of such
assets at the date of determination and (y)&nbsp;the amount of
the Indebtedness of the other Person to the extent so secured.
Notwithstanding anything in the indenture to the contrary,
Indebtedness of AREP, AREH or any Note Guarantor shall not
include any Indebtedness that has been either satisfied and
discharged or defeased through covenant defeasance or legal
defeasance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Issuance Date&#148; </I>means the closing date for the
sale and original issuance of the notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Issuers&#148; </I>means AREP and AREP Finance,
collectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Lien&#148; </I>means, with respect to any asset, any
mortgage, lien, pledge, charge, security interest or encumbrance
of any kind in respect of such asset, whether or not filed,
recorded or otherwise perfected under applicable law, including
any conditional sale or other title retention agreement, any
lease in the nature thereof, any option or other agreement to
sell or give a security interest in and any filing of or
agreement to give any financing statement under the Uniform
Commercial Code (or equivalent statutes) of any jurisdiction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Liquidated Damages&#148; </I>means all liquidated
damages then owing pursuant to the registration rights agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;NEG&#148; </I>means National Energy Group, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;NEG Credit Agreement&#148; </I>means the credit
agreement, dated as of December&nbsp;&nbsp;29, 2003, among NEG
Operating LLC, certain commercial lending institutions party
thereto, including Mizuho Corporate Bank, Ltd. as the
administrative agent, Bank of Texas N.A. and Bank of Nova Scotia
as co-agents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;NEG Management Agreements&#148; </I>means the
management agreement dated September&nbsp;12, 2001, between NEG
and NEG Operating LLC, the management agreement dated
August&nbsp;28, 2003, between NEG and TransTexas Gas Corporation
and the management agreement dated November&nbsp;16, 2004,
between NEG and Panaco, Inc., each as in effect on the date
hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Net Income&#148; </I>means, with respect to any
specified Person for any four consecutive fiscal quarter period,
the net income (loss) of such Person determined in accordance
with GAAP and before any reduction in respect of preferred stock
dividends.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Note Guarantee&#148; </I>means the Guarantee by any
Subsidiary of AREP of the Issuers&#146; obligations under the
indenture and the notes, executed pursuant to the provisions of
the indenture which initially will only be by AREH.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;notes&#148; </I>means AREP&#146;s
7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;senior
notes issued under the indenture, including any Additional Notes
issued.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Obligations&#148; </I>means any principal, interest,
penalties, fees, indemnifications, reimbursements, damages and
other liabilities payable under the documentation governing any
Indebtedness.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Offering Memorandum&#148; </I>means this offering
memorandum dated February&nbsp;1, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Officer&#148; </I>means with respect to any Person, the
Chairman of the Board, the Chief Executive Officer, the
President, the Chief Operating Officer, the Chief Financial
Officer, the Treasurer, an Assistant Treasurer, the Controller,
the Secretary or any Vice President of such Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Officers&#146; Certificate&#148; </I>means a
certificate signed on behalf of API or AREP Finance by two
Officers (or if a limited liability company, two Officers of the
managing member of such limited liability company) of API
</DIV>

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<DIV align="left" style="font-size: 10pt;">
or AREP Finance, one of whom must be the principal executive
officer, the principal financial officer, the treasurer or the
principal accounting officer of API or AREP Finance that meets
the requirements set forth in the indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Other Liquidated Damages&#148; </I>means liquidated
damages arising from a registration default under a registration
rights agreement with respect to the registration of
subordinated Indebtedness permitted to be incurred under the
indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Partners&#146; Equity&#148; </I>with respect to any
Person means as of any date, the partners&#146; equity as of
such date shown on the consolidated balance sheet of such Person
and its Subsidiaries or if such Person is not a partnership, the
comparable line-item on a balance sheet, each prepared in
accordance with GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Permitted Refinancing Indebtedness&#148; </I>means any
Indebtedness of AREP or any Guarantor issued in exchange for, or
the net proceeds of which are used to renew, refund, refinance,
replace, defease or discharge other Indebtedness of AREP or any
Guarantor (other than intercompany Indebtedness); provided that:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;the principal amount (or accreted value, if applicable)
    of such Permitted Refinancing Indebtedness does not exceed the
    principal amount (or accreted value, if applicable) of the
    Indebtedness renewed, refunded, refinanced, replaced, defeased
    or discharged (plus all accrued interest on the Indebtedness and
    the amount of all fees and expenses, including premiums, and
    Other Liquidated Damages, incurred in connection therewith);</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;in the case of any Indebtedness other than notes
    redeemed in accordance with &#147;&#151;&nbsp;Mandatory
    Disposition Pursuant to Gaming Laws,&#148; such Permitted
    Refinancing Indebtedness has a final maturity date later than
    the final maturity date of, and has a Weighted Average Life to
    Maturity equal to or greater than the Weighted Average Life to
    Maturity of, the Indebtedness being renewed, refunded,
    refinanced, replaced, defeased or discharged;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;if the Indebtedness being renewed, refunded,
    refinanced, replaced, defeased or discharged is subordinated in
    right of payment to the notes, such Permitted Refinancing
    Indebtedness has a final maturity date later than the final
    maturity date of, and is subordinated in right of payment to,
    the notes on terms at least as favorable to the holders of notes
    as those contained in the documentation governing the
    Indebtedness being renewed, refunded, refinanced, replaced,
    defeased or discharged.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Person&#148; </I>means any individual, corporation,
partnership, limited liability company, joint venture,
association, joint-stock company, trust, unincorporated
organization, government or any agency or political subdivision
thereof or any other entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Preferred Stock&#148; </I>means any Equity Interest
with preferential right of payment of dividends or upon
liquidation, dissolution, or winding up.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Preferred Units&#148; </I>means AREP&#146;s 5%
Cumulative Pay-in-Kind Redeemable Preferred Units payable on or
before March&nbsp;31, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Preferred Unit Distribution&#148; </I>means the
scheduled annual Preferred Unit distribution, payable on
March&nbsp;31 of each year in additional Preferred Units at the
rate of 5% of the liquidation preference of $10.00&nbsp;per
Preferred Unit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Principal&#148; </I>means Carl Icahn.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Principal Property&#148; </I>of a specified Person
means any property, assets or revenue of such Person now owned
or hereafter acquired.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Quarterly Determination Date&#148; </I>means, in
connection with AREP&#146;s first, second and third fiscal
quarters, the earlier of (i)&nbsp;the date AREP would have been
required to file a quarterly report with the SEC on
Form&nbsp;10-Q if AREP were required to file such reports and
(ii)&nbsp;the date AREP files its quarterly report with the SEC
on Form&nbsp;&nbsp;10-Q. In connection with AREP&#146;s fourth
fiscal quarter, the earlier of (i)&nbsp;the date AREP would have
been required to file an annual report with the SEC on
Form&nbsp;10-K if AREP were required to file such a report and
(ii)&nbsp;the date AREP files its annual report with the SEC on
Form&nbsp;10-K.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Related Parties&#148; </I>means (1)&nbsp;Carl Icahn,
any spouse and any child, stepchild, sibling or descendant of
Carl Icahn, (2)&nbsp;any estate of Carl Icahn or any person
under clause&nbsp;(1), (3)&nbsp;any person who receives a
beneficial interest in any estate under clause&nbsp;(2) to the
extent of such interest, (4)&nbsp;any executor, personal
administrator or trustee who holds such beneficial interest in
AREP for the benefit of, or as fiduciary for, any person under
clauses&nbsp;(1), (2)&nbsp;or (3)&nbsp;to the extent of such
interest and (5)&nbsp;any corporation, partnership, limited
liability company, trust, or similar entity, directly or
indirectly owned or Controlled by Carl Icahn or any other person
or persons identified in clauses&nbsp;(1), (2)&nbsp;or (3).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;SEC&#148; </I>means the United States Securities and
Exchange Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Secured Indebtedness&#148; </I>of any specified Person
means any Indebtedness secured by a Lien upon the property of
such Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Securities Act&#148; </I>means the Securities Act of
1933, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Significant Subsidiary&#148; </I>means any Subsidiary
which would be a &#147;significant subsidiary&#148; as defined
in Article&nbsp;1, Rule&nbsp;1-02 of Regulation&nbsp;S-X,
promulgated pursuant to the Securities Act, as such regulation
is in effect on the Issuance Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Stated Maturity&#148; </I>means, with respect to any
installment of interest or principal on any series of
Indebtedness, the date on which such payment of interest or
principal was scheduled to be paid in the original documentation
governing such Indebtedness, and shall not include any
contingent obligations to repay, redeem or repurchase any such
interest, accreted value, or principal prior to the date
originally scheduled for the payment or accretion thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Subordinated Indebtedness&#148; </I>means any
Indebtedness that by its terms is expressly subordinated in
right of payment in any respect (either in the payment of
principal or interest) to the payment of principal, Liquidated
Damages or interest on the notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Subsidiary&#148; </I>means, with respect to any
specified Person:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;any corporation, association or other business entity
    of which more than 50% of the total Voting Stock is at the time
    owned or Controlled, directly or indirectly, by that Person or
    one or more of the other Subsidiaries of that Person (or a
    combination thereof);&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;any partnership (a)&nbsp;the sole general partner or
    the managing general partner of which is such Person or a
    Subsidiary of such Person or (b)&nbsp;the only general partners
    of which are that Person or one or more Subsidiaries of that
    Person (or any combination thereof).</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the avoidance of doubt, AREH will be deemed to be a
Subsidiary of AREP so long as AREH remains a Guarantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Tangible Net Worth&#148; </I>of any specified Person as
of any date means, the total shareholders&#146; equity (or if
such Person were not a corporation, the equivalent account) of
such Person and its Subsidiaries on a consolidated basis
determined in conformity with GAAP less any and all goodwill and
other intangible assets reflected on the consolidated balance
sheet of such Person as of the last day of the fiscal quarter
most recently completed before the date of determination for
which financial statements are then available, but taking into
account any change in total shareholders&#146; equity (or the
equivalent account) as a result of any (x)&nbsp;Restricted
Payments made, (y)&nbsp;asset sales or (z)&nbsp;contributions to
equity or from the issuance or sale of Equity Interests
(excluding Disqualified Stock) or from the exchange or
conversion (other than to Disqualified Stock) of Disqualified
Stock or debt securities, completed since such fiscal quarter
end.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Tax Amount&#148; </I>means, for any period, the
combined federal, state and local income taxes, including
estimated taxes, that would be payable by AREP if it were a
Delaware corporation filing separate tax returns with respect to
its Taxable Income for such period and owned 100% of AREH;
provided, that in determining the Tax Amount, the effect thereon
of any net operating loss carryforwards or other carryforwards
or tax attributes, such as alternative minimum tax
carryforwards, that would have arisen if AREP were a Delaware
corporation shall be taken into account; provided, further that
(i)&nbsp;if there is an adjustment in the amount of the Taxable
Income for any period, an appropriate positive or negative
adjustment shall be made in the Tax
</DIV>

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<DIV align="left" style="font-size: 10pt;">
Amount, and if the Tax Amount is negative, then the Tax Amount
for succeeding periods shall be reduced to take into account
such negative amount until such negative amount is reduced to
zero and (ii)&nbsp;any Tax Amount other than amounts relating to
estimated taxes shall be computed by a nationally recognized
accounting firm (but, including in any event, AREP&#146;s
auditors). Notwithstanding anything to the contrary, the Tax
Amount shall not include taxes resulting from AREP&#146;s change
in the status to a corporation for tax purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Taxable Income&#148; </I>means, for any period, the
taxable income or loss of AREP for such period for federal
income tax purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Total Unencumbered Assets&#148; </I>means, as of any
Quarterly Determination Date, the book value of all of the
assets of AREP and any Guarantor (including, without limitation,
the Capital Stock of their Subsidiaries, but excluding goodwill
and intangibles) that do not secure, by a Lien, any portion of
any Indebtedness (other than assets secured by a Lien in favor
of the notes and such assets are not secured by a Lien in favor
of any other Indebtedness) as of such date (determined on a
consolidated basis between AREP and any Guarantor but not on a
consolidated basis with their Subsidiaries and otherwise in
accordance with GAAP).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Unsecured Indebtedness&#148; </I>of AREP, AREH and any
additional Guarantor means any Indebtedness of such Person that
is not Secured Indebtedness.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Voting Stock&#148; </I>means, with respect to any
Person that is (a)&nbsp;a corporation, any class or series of
capital stock of such Person that is ordinarily entitled to vote
in the election of directors thereof at a meeting of
stockholders called for such purpose, without the occurrence of
any additional event or contingency, (b)&nbsp;a limited
liability company, membership interests entitled to manage, or
to elect or appoint the Persons that will manage the operations
or business of the limited liability company, or (c)&nbsp;a
partnership, partnership interests entitled to elect or replace
the general partner thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>&#147;Weighted Average Life to Maturity&#148; </I>means, when
applied to any Indebtedness or Disqualified Stock, as the case
may be, at any date, the number of years (calculated to the
nearest one-twelfth) obtained by dividing (1)&nbsp;the sum of
the products obtained by multiplying (a)&nbsp;the amount of each
then remaining installment, sinking fund, serial maturity or
other required payments of principal or liquidation preference,
including payment at final maturity, in respect thereof, by
(b)&nbsp;the number of years (calculated to the nearest
one-twelfth) that will elapse between such date and the making
of such payment, by (2)&nbsp;the then outstanding principal
amount or liquidation preference, as applicable, of such
Indebtedness or Disqualified Stock, as the case may be.
</DIV>

<P align="center" style="font-size: 10pt;">73

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<DIV align="left" style="font-size: 10pt;">
<A name='116'></A>
</DIV>

<!-- link1 "CERTAIN U.S. FEDERAL INCOME TAX CONSEQUENCES" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CERTAIN U.S.&nbsp;FEDERAL INCOME TAX CONSEQUENCES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following general discussion summarizes certain material
United States federal income tax consequences that apply to
beneficial owners of the private notes who:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;acquired the private notes at their original issue
    price for cash,</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;exchange the private notes for new notes in this
    exchange offer, and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;held the private notes and hold the new notes as
    &#147;capital assets&#148; (generally, for investment) as
    defined in the Internal Revenue Code of 1986, as amended, the
    Code.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This summary, however, does not consider state, local or foreign
tax laws. In addition, it does not include all of the rules
which may affect the United States tax treatment of your
investment in the notes. For example, special rules not
discussed here may apply to you if you are:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A broker-dealer, a dealer in securities or a financial
    institution;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    An S&nbsp;corporation;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A bank;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A thrift;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    An insurance company;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A tax-exempt organization;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A partnership or other pass-through entity;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Subject to the alternative minimum tax provisions of the Code;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Holding the private notes or the new notes as part of a hedge,
    straddle or other risk reduction or constructive sale
    transaction;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A person with a &#147;functional currency&#148; other than the
    U.S.&nbsp;dollar;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A United States expatriate.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If you are a partner in a partnership which holds the new notes,
you should consult your own tax advisor regarding special rules
that may apply.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This summary is based on the Code and applicable Treasury
Regulations, rulings, administrative pronouncements and
decisions as of the date hereof, all of which are subject to
change or differing interpretations at any time with possible
retroactive effect. We have not sought and will not seek any
rulings from the Internal Revenue Service with respect to the
statements made and the conclusions reached in this summary, and
there can be no assurance that the Internal Revenue Service will
agree with such statements and conclusions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Each holder is urged to consult his tax advisor regarding the
specific federal, state, local, and foreign income and other tax
considerations of participating in this exchange offer and
holding the new notes.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Exchange of Private Notes for New Notes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The exchange of the private notes for the new notes pursuant to
this exchange offer should not be a taxable event for
U.S.&nbsp;federal income tax purposes. Accordingly, holders
participating in this exchange offer should not recognize any
income, gain or loss in connection with the exchange. In
addition, immediately after the exchange, any such holder should
have the same adjusted tax basis and holding period in the new
notes as it had in the private notes, immediately before the
exchange.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Consequences of Holding the New Notes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>United States Holders</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If you are a &#147;United States Holder,&#148; as defined below,
this section applies to you. Otherwise, the section
&#147;Non-United States Holders,&#148; applies to you.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Definition of United States Holder</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You are a &#147;United States Holder&#148; if you are the
beneficial owner of a new note and you are, for United States
federal income tax purposes:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a citizen or resident of the United States;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a corporation organized under the laws of the United States or
    any political subdivision thereof;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    an estate the income of which is subject to U.S.&nbsp;federal
    income tax regardless of its sources;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a trust if a court within the United States can exercise primary
    supervision over the administration of the trust and one or more
    U.S.&nbsp;persons has authority to control all substantial
    decisions of the trust, or if the trust was in existence on
    August&nbsp;20, 1996, and treated as a domestic trust on
    August&nbsp;19, 1996, and it has elected to continue to be
    treated as a U.S.&nbsp;person.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Taxation of Stated Interest</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Generally, you must include the interest on the new notes in
your gross income as ordinary income:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    when it accrues, if you use the accrual method of accounting for
    United States federal income tax purposes;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    when you receive it, if you use the cash method of accounting
    for United States federal income tax purposes.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Sale or Other Taxable Disposition of the New Notes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You will generally recognize taxable gain or loss on the sale,
exchange, redemption, retirement or other taxable disposition of
a new note. The amount of your gain or loss will equal the
difference between the amount you receive for the new note (in
cash or other property, valued at fair market value), except to
the extent amounts received are attributable to accrued interest
on the note, and your adjusted tax basis in the new note. Your
tax basis in the new note generally will equal the price you
paid for the private note that was exchanged for the new note.
Your gain or loss will generally be long-term capital gain or
loss if your holding period for the new note is more than one
year at the time of the sale, exchange, redemption, retirement
or other taxable disposition. Otherwise, it will be short-term
capital gain or loss. For this purpose, your holding period for
the new note should include your holding period for the private
note that was exchanged for the new note. Long-term capital
gains recognized in years beginning before December&nbsp;31,
2008 by certain non-corporate holders are generally taxed at a
maximum rate of 15%. The ability to deduct capital losses is
subject to limitations. Payments attributable to accrued
interest which you have not yet included in income will be taxed
as ordinary interest income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Information Reporting and Backup Withholding</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will report to certain holders of the new notes and to the
IRS the amount of any interest paid on the new notes in each
calendar year and the amounts of tax withheld, if any, with
respect to such payments. You may be subject to a backup
withholding tax when you receive interest payments on a new note
or proceeds upon the sale or other disposition of the new note.
Certain holders (including, among others, corporations,
financial institutions and certain tax-exempt organizations) are
generally not subject to information reporting or backup
withholding. In addition, the backup withholding tax will not
apply to you if you provide to us or our
</DIV>

<P align="center" style="font-size: 10pt;">75

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<DIV align="left" style="font-size: 10pt;">
paying agent your correct social security or other taxpayer
identification number, or TIN, in the prescribed manner unless:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the IRS notifies us or our paying agent that the TIN you
    provided is incorrect;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    you underreport interest and dividend payments that you receive
    on your tax return and the IRS notifies us or our paying agent
    that withholding is required;&nbsp;or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    you fail to certify under penalties of perjury that you are not
    subject to backup withholding.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The backup withholding tax rate is currently 28%. Any amounts
withheld from a payment to you under the backup withholding
rules may be credited against your United States federal income
tax liability, and may entitle you to a refund, provided the
required information is properly furnished to the Internal
Revenue Service on a timely basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You should consult your tax advisor as to your qualification for
exemption from backup withholding and the procedures for
obtaining such exemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Non-United States Holders</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following general discussion is limited to the United States
federal income tax consequences relevant to a &#147;Non-United
States Holder.&#148; A &#147;Non-United States Holder&#148; is
any beneficial owner of a new note if such owner is, for United
States federal income tax purposes, a nonresident alien, or a
corporation, estate, or trust that is not a United States Holder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Interest</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Portfolio Interest Exemption.</I> You will generally not be
subject to United States federal income tax or withholding tax
on interest paid or accrued on the new notes if:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    you do not own, actually or constructively, 10% or more of our
    capital or profits interests;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    you are not a controlled foreign corporation with respect to
    which we are a &#147;related person&#148; within the meaning of
    Section&nbsp;864(d)(4) of the Code;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    you are not a bank receiving interest described in
    Section&nbsp;881(c)(3)(A) of the Code;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    such interest is not effectively connected with the conduct by
    you of a trade or business in the United States; and</TD>
</TR>

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    either (i)&nbsp;you represent that you are not a United States
    person for United States federal income tax purposes and you
    provide your name and address to us or our paying agent on a
    properly executed IRS Form&nbsp;W-8BEN (or a suitable substitute
    form) signed under penalties of perjury, or (ii)&nbsp;a
    securities clearing organization, bank, or other financial
    institution that holds customers&#146; securities in the
    ordinary course of its business holds the new note on your
    behalf, certifies to us or our paying agent under penalties of
    perjury that it has received IRS Form&nbsp;W-8BEN (or a suitable
    substitute form) from you or from another qualifying financial
    institution intermediary, and provides a copy of the
    Form&nbsp;W-8BEN (or a suitable substitute form) to us or our
    paying agent.</TD>
</TR>

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

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

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>United States Federal Income or Withholding Tax If Interest
Is Not Portfolio Interest. </I>If you do not claim, or do not
qualify for, the benefit of the portfolio interest exemption
described above, you may be subject to a 30% withholding tax on
the gross amount of interest payments, unless reduced or
eliminated by an applicable income tax treaty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
However, income from payments or accruals of interest that is
effectively connected with the conduct by you of a trade or
business in the United States will be subject to United States
federal income tax on a net basis at a rate applicable to United
States persons generally (and, if paid to corporate holders, may
also be subject to a branch profits tax at a rate of 30% or
lower applicable treaty rate). If payments are subject to United
States federal income tax on a net basis in accordance with the
rules described in the preceding sentence, such payments will
not be subject to United States withholding tax so long as you
provide us or our paying agent with a properly executed IRS
Form&nbsp;W-8ECI.
</DIV>

<P align="center" style="font-size: 10pt;">76

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Non-United States Holders should consult any applicable income
tax treaties, which may provide for a lower rate of withholding
tax, exemption from or reduction of the branch profits tax, or
other rules different from those described above. Generally, in
order to claim any treaty benefits you must submit a properly
executed IRS Form&nbsp;W-8BEN.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Reporting. </I>We may report annually to the IRS and to you
the amount of interest paid to you, and the tax withheld, if
any, with respect to you.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Sale or Other Disposition of New Notes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You will generally not be subject to United States federal
income tax or withholding tax on gain recognized on a sale,
exchange, redemption, retirement, or other disposition of a new
note unless such gain is effectively connected with the conduct
by you of a trade or business within the United States. Any gain
that is effectively connected with the conduct by you of a trade
or business within the United States will be subject to United
States federal income tax on a net basis at the rates generally
applicable to United States persons as described above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Backup Withholding and Information Reporting</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Payments From United States Office.</I> If you receive
payment of interest or principal directly from us or through the
United States office of a custodian, nominee, agent or broker,
you may be subject to both backup withholding and information
reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With respect to interest payments made on the new notes,
however, backup withholding and information reporting will not
apply if you certify, generally on a Form&nbsp;W-8BEN (or
Form&nbsp;W-8ECI) or suitable substitute form, that you are not
a United States person in the manner described above under the
heading &#147;Non-United States Holders&nbsp;&#151;
Interest,&#148; or you otherwise establish an exemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Moreover, with respect to proceeds received on the sale,
exchange, redemption, or other disposition of a new note, backup
withholding or information reporting generally will not apply if
you properly provide, generally on Form&nbsp;W-8BEN (or
Form&nbsp;W-8ECI) or a suitable substitute form, a statement
that you are an &#147;exempt foreign person&#148; for purposes
of the broker reporting rules, and other required information.
If you are not subject to United States federal income or
withholding tax on the sale or other disposition of a new note,
as described above under the heading &#147;Non-United States
Holders-Interest&nbsp;&#151; Sale or Other Disposition of New
Notes,&#148; you will generally qualify as an &#147;exempt
foreign person&#148; for purposes of the broker reporting rules.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Payments From Foreign Office.</I> If payments of principal
and interest are made to you outside the United States by or
through the foreign office of your foreign custodian, nominee or
other agent, or if you receive the proceeds of the sale of a new
note through a foreign office of a &#147;broker,&#148; as
defined in the pertinent United States Treasury Regulations, you
will generally not be subject to backup withholding or
information reporting. You will however, be subject to backup
withholding and information reporting if the foreign custodian,
nominee, agent or broker has actual knowledge or reason to know
that you are a United States person. You will also be subject to
information reporting, but not backup withholding, if the
payment is made by a foreign office of a custodian, nominee,
agent or broker that has certain relationships to the United
States unless the broker has in its records documentary evidence
that you are a Non-United States Holder and certain other
conditions are met.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Refunds.</I> Any amounts withheld from a payment to you under
the backup withholding rules may be credited against your United
States federal income tax liability, and may entitle you to a
refund, provided the required information is properly furnished
to the Internal Revenue Service on a timely basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The information reporting requirements may apply regardless of
whether withholding is required. Copies of the information
returns reporting interest and withholding also may be made
available to the tax authorities in the country in which a
Non-United States Holder is a resident under the provisions of
an applicable income tax treaty or other agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The preceding summary is for general information only and is not
tax advice. Please consult your own tax advisor to determine the
tax consequences of purchasing, holding and disposing of the
notes&nbsp;under your particular circumstances.
</DIV>

<P align="center" style="font-size: 10pt;">77

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<DIV align="left" style="font-size: 10pt;">
<A name='117'></A>
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PLAN OF DISTRIBUTION</B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each broker-dealer that receives new notes for its own account
pursuant to the exchange offer must acknowledge that it will
deliver a prospectus in connection with any resale of such new
notes. This prospectus, as it may be amended or supplemented
from time to time, may be used by a broker-dealer in connection
with resales of new notes received in exchange for old notes
where such old notes were acquired as a result of market-making
activities or other trading activities. We have agreed that,
starting on the expiration date and ending on the close of
business 270&nbsp;days after the expiration date (or such
shorter period during which participating broker-dealers are
required by law to deliver such prospectus), we will make this
prospectus, as amended or supplemented, available to any
broker-dealer for use in connection with any such resale. In
addition,
until &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006, all dealers effecting transactions in the new notes may be
required to deliver a prospectus.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will not receive any proceeds from any sale of new notes by
broker-dealers. New notes received by broker-dealers for their
own account pursuant to the exchange offer may be sold from time
to time in one or more transactions in the over-the-counter
market, in negotiated transactions, through the writing of
options on the new notes or a combination of such methods of
resale, at market prices prevailing at the time of resale, at
prices related to such prevailing market prices or negotiated
prices. Any such resale may be made directly to purchasers or to
or through brokers or dealers who may receive compensation in
the form of commissions or concessions from any such
broker-dealer and/or the purchasers of any such new notes. Any
broker-dealer that resells new notes that were received by it
for its own account pursuant to the exchange offer and any
broker or dealer that participates in a distribution of such new
notes may be deemed to be an &#147;underwriter&#148; within the
meaning of the Securities Act and any profit of any such resale
of new notes and any commissions or concessions received any
such persons may be deemed to be underwriting compensation under
the Securities Act. The letter of transmittal states that by
acknowledging that it will deliver, and by delivering a
prospectus, a broker-dealer will not be deemed to admit that it
is an &#147;underwriter&#148; within the meaning of the
Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Furthermore, any broker-dealer that acquired any of its old
notes directly from us:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    may not rely on the applicable interpretation of the staff of
    the Commission&#146;s position contained in Exxon Capital
    Holdings Corp., SEC no-action letter (May&nbsp;13, 1988),
    Morgan, Stanley&nbsp;&#38; Co. Inc., SEC no-action letter
    (June&nbsp;5, 1991) and Shearman&nbsp;&#38; Sterling, SEC
    no-action letter (July&nbsp;2, 1983); and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    must also be named as a selling noteholder in connection with
    the registration and prospectus delivery requirements of the
    Securities Act relating to any resale transaction.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For a period of 270&nbsp;days after the expiration date, we will
promptly send additional copies of this prospectus and any
amendment or supplement to this prospectus to any broker-dealer
that requests such documents in the letter of transmittal. We
have agreed to pay all expenses incident to the exchange offer
(including the expenses of one counsel for the holder of the old
notes) other than commissions or concessions of any brokers or
dealers and will indemnify the holders of the old notes
(including any broker-dealers) against certain liabilities,
including liabilities under the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='118'></A>
</DIV>

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

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>LEGAL MATTERS</B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The validity of the notes offered by this prospectus will be
passed upon for us by DLA Piper Rudnick Gray Cary US LLP, New
York, New York.
</DIV>

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

</FONT></DIV>

<P align="center" style="font-size: 10pt;">78

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<A name='119'></A>
</DIV>

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<B>EXPERTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>American Real Estate Partners, L.P. and American Real
Estate Holdings Limited Partnership</I></B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The consolidated historical and restated financial statements of
AREP as of December&nbsp;31, 2004 and for the year ended
December&nbsp;31, 2004 and the consolidated historical and
restated financial statements of AREH as of December&nbsp;31,
2004 and for the year ended December&nbsp;31, 2004 incorporated
by reference in this prospectus have each been audited by Grant
Thornton LLP, independent registered public accounting firm, as
stated in its reports with respect thereto, and are incorporated
by reference herein in reliance upon the authority of said firm
as experts in accounting and auditing in giving said reports.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The consolidated financial statements of American Real Estate
Partners, L.P. as of December&nbsp;31, 2003 and for each of the
years in the two-year period ended December&nbsp;31, 2003
incorporated by reference in this prospectus from the current
report on Form&nbsp;8-K filed by AREP on December&nbsp;2, 2005
have been incorporated by reference 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. The audit report
covering the December&nbsp;31, 2003 consolidated financial
statements refers to a change in the method of accounting for
asset retirement obligations.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Financial statements of American Real Estate Holdings Limited
Partnership as of December&nbsp;31, 2003 and for each of the
years in the two-year period ended December&nbsp;31, 2003,
incorporated by reference in this prospectus from the current
report on Form&nbsp;8-K filed by AREP on December&nbsp;2, 2005,
have been incorporated by reference 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. The audit report
covering the December&nbsp;31, 2003 consolidated financial
statements refers to a change in the method of accounting for
asset retirement obligations.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>American Property Investors, Inc.</I></B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The balance sheet of American Property Investors, Inc., as of
December&nbsp;31, 2004, incorporated by reference in this
prospectus has been audited by Grant Thornton LLP, independent
accountants, as stated in its report with respect thereto, and
are incorporated by reference herein in reliance upon the
authority of said firm as experts in accounting and auditing in
giving said report.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>WestPoint Stevens Inc.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The consolidated financial statements of WestPoint Stevens Inc.
as of December&nbsp;31, 2004 and 2003 and for each of the three
years in the period ended December&nbsp;31, 2004, appearing in
American Real Estate Partners, L.P.&#146;s Form&nbsp;8-K/A dated
October&nbsp;21, 2005 have been audited by Ernst &#38; Young
LLP, independent registered public accounting firm, as set forth
in their report thereon (which contains an explanatory paragraph
describing conditions that raise substantial doubt about
WestPoint Stevens Inc.&#146;s ability to continue as a going
concern as described in Note&nbsp;2 to the consolidated
financial statements) included therein and incorporated herein
by reference. Such consolidated financial statements are
incorporated herein by reference in reliance upon such report
given on the authority of such firm as experts in accounting and
auditing.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>GB Holdings, Inc.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On June&nbsp;15, 2005, KPMG&nbsp;LLP advised GB&nbsp;Holdings,
Inc. that it has resigned, and that the client-auditor
relationship between GB&nbsp;Holdings Inc. and KPMG had ceased.
The consolidated financial statements of GB&nbsp;Holdings, Inc.
and subsidiaries as of December&nbsp;31, 2004 and 2003 and for
each of the years in the three-year period ended
December&nbsp;31, 2004 have been audited by KPMG&nbsp;LLP as set
forth in the report of KPMG&nbsp;LLP, independent registered
public accounting firm, and such report has been incorporated by
</DIV>

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

</FONT></DIV>

<P align="center" style="font-size: 10pt;">79
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<DIV align="left" style="font-size: 10pt;">
reference herein upon the authority of said firm as experts in
accounting and auditing. The audit report covering the
December&nbsp;31, 2004 consolidated financial statements
contains an explanatory paragraph that states that
GB&nbsp;Holdings&#146; recurring net losses, net working capital
deficiency and significant debt obligations which are due within
one year raise substantial doubt about the entity&#146;s ability
to continue as a going concern. The consolidated financial
statements do not include any adjustments that might result from
the outcome of that uncertainty. During the three year period
ended December&nbsp;31, 2004 and the interim period proceeding
receipt of KPMG&#146;s letter, there were no
(1)&nbsp;disagreements with KPMG on any matters of accounting
principles or practices, financial statement disclosures, or
auditing scope or procedures, which disagreements, if not
resolved to the satisfaction of KPMG would have caused it to
make reference to the subject matter of the disagreements in
connection with its report or (2)&nbsp;&#147;reportable
events&#148; as such item is defined in
Item&nbsp;304&nbsp;(a)(1)(v) of Regulation&nbsp;S-K under the
Securities Exchange Act of 1934.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Panaco, Inc.</I></B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The balance sheet of Panaco, Inc. as of December&nbsp;31, 2004
has been audited by Pannell Kerr Forster of Texas,&nbsp;P.C.,
independent registered public accounting firm, as stated in its
report. Such report has been incorporated by reference herein.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='120'></A>
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>WHERE YOU CAN FIND MORE INFORMATION</B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AREP files annual, quarterly and current reports, proxy
statements and other information with the SEC under the
Securities Exchange Act of 1934. The Exchange Act file number
for its SEC filings is 1-9516. You may read any document AREP
files at the SEC&#146;s public reference room at 100&nbsp;F
Street, N.E., Room&nbsp;1580, Washington,&nbsp;D.C. 20549.
Please call the SEC toll free at 1-800-SEC-0330 for information
about its public reference rooms. AREP files information
electronically with the SEC. AREP&#146;s SEC filings are
available from the SEC&#146;s Internet site at http:
//www.sec.gov. AREP&#146;s SEC filings are also available at
AREP&#146;s website at <I>www.areplp.com.</I> Information
contained on our website is not part of this prospectus. AREH
filed an annual report on Form&nbsp;10-K for the year ended
December&nbsp;31, 2004 since it was required to file such report
under Section 15(d) of the Exchange Act.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This prospectus is part&nbsp;of a registration statement that we
filed with the SEC. The registration statement, including the
attached exhibits and schedules, contains additional relevant
information about us and our common stock. The rules&nbsp;and
regulations of the SEC allow us to omit some of the information
included in the registration statement from this prospectus. You
may inspect the registration statement, including exhibits, at
the SEC&#146;s public reference facilities or internet site. Our
statements in this prospectus about the contents of any contract
or other document are not necessarily complete. You should refer
to the copy of each contract or other document we have filed as
an exhibit to the registration statement for complete
information.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='121'></A>
</DIV>

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

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INCORPORATION OF AREP AND AREH DOCUMENTS BY REFERENCE</B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The SEC allows AREP and AREH to &#147;incorporate by
reference&#148; into this prospectus the information AREP and
AREH file with the SEC, which means that we can disclose
important information to you by referring you to those
documents. The information incorporated by reference is
considered to be part of this prospectus, and information in
documents that we file later with the SEC will automatically
update and supersede information in this prospectus. We
incorporate by reference the documents listed below, and they
shall be deemed to be a part hereof:
</DIV>

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

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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><TD><FONT size="1">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    AREH Annual Report on Form&nbsp;10-K for the year ended
    December&nbsp;31, 2004, filed on March&nbsp;31, 2005.</TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    AREH Current Report on Form&nbsp;8-K/A, filed on January&nbsp;5,
    2005.</TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    AREP Annual Report on Form&nbsp;10-K for the year ended
    December&nbsp;31, 2004, filed on March&nbsp;16, 2005.</TD>
</TR>

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

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

</TABLE>

<P align="center" style="font-size: 10pt;">80

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    AREP Amended Annual Report on Form&nbsp;10-K/ A for the year
    ended December&nbsp;31, 2004, filed on April&nbsp;14, 2005.</TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    AREP Quarterly Reports on Form&nbsp;10-Q for the quarter ended
    March&nbsp;31, 2005, filed on May&nbsp;10, 2005; for the year
    ended June&nbsp;30, 2005, filed on August&nbsp;9, 2005; and for
    the quarter ended September&nbsp;30, 2005, filed on
    November&nbsp;14, 2005.</TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    AREP Current Reports on Form&nbsp;8-K or Form&nbsp;8-K/A, filed
    by AREP on January&nbsp;5, 2005, January&nbsp;21, 2005,
    January&nbsp;27, 2005, February&nbsp;2, 2005, February&nbsp;10,
    2005, April&nbsp;7, 2005, April&nbsp;29, 2005, May&nbsp;10, 2005
    (only the Form&nbsp;8-K containing Item&nbsp;8.01 and 9.01
    information), May&nbsp;27, 2005, June&nbsp;3, 2005,
    June&nbsp;21, 2005, June&nbsp;23, 2005, July&nbsp;1, 2005,
    July&nbsp;6, 2005, August&nbsp;12, 2005, September&nbsp;15,
    2005, October&nbsp;21, 2005, November&nbsp;16, 2005,
    November&nbsp;23, 2005, and December&nbsp;2, 2005(4).</TD>
</TR>

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

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

</TABLE>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All documents and reports filed by AREP and AREH with the SEC
under Section&nbsp;13(a), 13(c), 14 or 15(d) of the Exchange Act
after the date of this prospectus and prior to the termination
of this offering shall be deemed incorporated herein by
reference and shall be deemed to be part hereof from the date of
filing of such documents and reports. Unless specifically stated
to the contrary, none of the information that is disclosed under
Items&nbsp;2.02 or 7.01 of any current report on Form&nbsp;8-K
that was, or may from time to time be, furnished to the SEC will
be incorporated by reference to, or otherwise included in, this
prospectus. Any statement contained in a document incorporated
or deemed to be incorporated by reference in this prospectus
shall be deemed to be modified or superseded for purposes of
this document to the extent that a statement contained herein or
in any subsequently filed document or report that also is or
deemed to be incorporated by reference herein modifies or
supersedes such statement. Any such statement so modified or
superseded shall not be deemed, except as so modified or
superseded, to constitute a part of this document. We will
provide copies of these documents, free of charge, to any
person, including any beneficial owner, who receives this
prospectus upon written or oral request of such person. To
request a copy, you should contact AREP at its headquarters
which are located at 100 South Bedford Road, Mt. Kisco, New York
10549, Attention: Chief Financial Officer.
</DIV>

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

</FONT></DIV>

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<DIV align="center" style="font-size: 2pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Until &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006, all dealers that effect transactions in these securities,
whether or not participating in this exchange offer, may be
required to deliver a prospectus. Each broker-dealer that
receives new notes for its own account pursuant to the exchange
offer must acknowledge that it will deliver a prospectus in
connection with any resale of such new notes.
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 30%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
PROSPECTUS
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 30%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>American Real Estate Partners, L.P.</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>American Real Estate Finance Corp.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 21pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Offer to exchange our
7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;Senior
Notes due 2013, which have been registered</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>under the Securities Act of 1933, for any and all of our
outstanding</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
Senior Notes due 2013.</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 11pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 4pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PART&nbsp;II</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INFORMATION NOT REQUIRED IN PROSPECTUS</B>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;20.</B></TD>
    <TD>
    <B><I>Indemnification of Directors and Officers.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Indemnification Under the Delaware Limited Partnership Act
and the American Real Estate Partners L.P. Limited Partnership
Agreement</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
American Real Estate Partners, L.P. is organized under the laws
of Delaware. Section&nbsp;17-108 of the Delaware Revised Uniform
Limited Partnership Act (the &#147;Partnership Act&#148;)
provides that a limited partnership may, and shall have the
power to, indemnify and hold harmless any partners or other
persons from and against any and all claims and demands
whatsoever, subject to such standards and restrictions set forth
in the partnership agreement. Accordingly, Section&nbsp;6.15 of
the Amended and Restated Agreement of Limited Partnership of
American Real Estate Partners, L.P., dated as of May&nbsp;12,
1987, provides that the general partner, its affiliates, and all
officers, directors, employees and agents of the general partner
and its affiliates (individually, an &#147;Indemnitee&#148;)
will be indemnified and held harmless from and against any and
all losses, claims, demands, costs, damages, liabilities, joint
and several, expenses of any nature (including attorneys&#146;
fees and disbursements), judgments, fines, settlements, and
other amounts arising from any and all claims, demands, actions,
suits or proceedings, whether civil, criminal, administrative or
investigative, in which the Indemnitee may be involved, or
threatened to be involved, as a party or otherwise by reason of
its status as (x)&nbsp;the General Partner or an Affiliate
thereof or (y)&nbsp;a partner, shareholder, director, officer,
employee or agent of the General Partner or an Affiliate thereof
or (z)&nbsp;a Person serving at the request of the Partnership
in another entity in a similar capacity, which relate to, arise
out of or are incidental to the Partnership, its property,
business, affairs, including, without limitation, liabilities
under the federal and state securities laws, regardless of
whether the Indemnitee continues to be a general partner, an
affiliate, or an officer, director, employee or agent of the
general partner or of an affiliate thereof at the time any such
liability or expense is paid or incurred, if the Indemnitee
acted in good faith and in a manner it believed to be in, or not
opposed to, the best interests of the Partnership, and, with
respect to any criminal proceeding, had no reasonable cause to
believe its conduct was unlawful and the Indemnitee&#146;s
conduct did not constitute willful misconduct. The agreement
further provides that an Indemnitee shall not be denied
indemnification in whole or in part under by reason of the fact
that the Indemnitee had an interest in the transaction with
respect to which the indemnification applies if the transaction
was otherwise permitted by the terms of this Agreement. Any
indemnification under Section&nbsp;6.15 shall be satisfied
solely out of the assets of the partnership and not from the
assets of the partners of the partnership.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Indemnification Under the Delaware General Corporation Law
and the Certificate of Incorporation and Bylaws of American Real
Estate Finance Corp.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
American Real Estate Finance Corp (&#147;AREP Finance&#148;),
the Co-issuer of the notes, is a corporation incorporated under
the laws of the State of Delaware. Section&nbsp;145 of the
Delaware General Corporation Law provides that a corporation may
indemnify directors and officers as well as other employees and
individuals against expenses (including attorneys&#146; fees),
judgments, fines and amounts paid in settlement actually and
reasonably incurred by such person in connection with any
threatened, pending or completed actions, suits or proceedings
in which such person is made a party by reason of such person
being or having been a director, officer, employee of or agent
to the Registrants. The statute provides that it is not
exclusive of other rights to which those seeking indemnification
may be entitled under any by-law, agreement, vote of
stockholders or disinterested directors or otherwise.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;21.</B></TD>
    <TD>
    <B><I>Exhibits and Financial Statement Schedules</I></B></TD>
</TR>

</TABLE>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See the Exhibit Index, which follows the signature pages and is
incorporated herein by reference.
</DIV>

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

</FONT></DIV>

<P align="center" style="font-size: 10pt;">II-1

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;22.</B></TD>
    <TD>
    <B><I>Undertakings</I></B></TD>
</TR>

</TABLE>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned registrants hereby undertake:
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)(1)&nbsp;To file during any period in which offers or sales
are being made, a post-effective amendment to this registration
statement:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;To include any prospectus required by
    Section&nbsp;10(a)(3) of the Securities Act of 1933;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ii)&nbsp;To reflect in the prospectus any facts or events
    arising after the effective date of the registration (or the
    most recent post-effective amendment thereof) which,
    individually or in the aggregate, represent a fundamental change
    in the information set forth in the registration statement.
    Notwithstanding the foregoing, any increase or decrease in
    volume of securities offered (if the total dollar value of
    securities offered would not exceed that which was registered)
    and any deviation from the low or high end of the estimated
    maximum offering range may be reflected in the form of a
    prospectus filed with the SEC pursuant to Rule&nbsp;424(b) if,
    in the aggregate, the changes in volume and price represent no
    more than a 20% change in the maximum aggregate offering price
    set forth in the &#147;Calculation of Registration Fee&#148;
    table in the effective registration statement;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iii)&nbsp;To include any material information with respect to
    the plan of distribution not previously disclosed in the
    registration statement or any material change to such
    information in the registration statement.</TD>
</TR>

</TABLE>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Provided, however, </I>That:
</DIV>

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

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (A)&nbsp;Paragraphs (a)(1)(i) and (a)(1)(ii) of this section do
    not apply if the registration statement is on Form&nbsp;S-8, and
    the information required to be included in a post-effective
    amendment by those paragraphs is contained in reports filed with
    or furnished to the Commission by the registrant pursuant to
    section 13 or section 15(d) of the Securities Exchange Act of
    1934 that are incorporated by reference in the registration
    statement; and</TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (B)&nbsp;Paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of
    this section do not apply if the registration statement is on
    Form&nbsp;S-3 or Form&nbsp;F-3 and the information required to
    be included in a post-effective amendment by those paragraphs is
    contained in reports filed with or furnished to the Commission
    by the registrant pursuant to section 13 or section 15(d) of the
    Securities Exchange Act of 1934 that are incorporated by
    reference in the registration statement, or is contained in a
    form of prospectus filed pursuant to Rule 424(b) that is part of
    the registration statement.</TD>
</TR>

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

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

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(2)&nbsp;That, for the purpose of determining any liability
under the Securities Act of 1933, each such post-effective
amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of
such securities at that time shall be deemed to be the initial
bona fide offering thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(3)&nbsp;To remove from registration by means of a
post-effective amendment any of the securities being registered
which remain unsold at the termination of the offering.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;The undersigned registrants hereby undertake that, for
purposes of determining any liability under the Securities Act
of 1933, each filing of the registrant&#146;s annual report
pursuant to section 13(a) or section 15(d) of the Securities
Exchange Act of 1934 (and, where applicable, each filing of an
employee benefit plan&#146;s annual report pursuant to section
15(d) of the Securities Exchange Act of 1934) that is
incorporated by reference in the registration statement shall be
deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide
offering thereof.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(h)&nbsp;Insofar as indemnification for liabilities arising
under the Securities Act of 1933 may be permitted to directors,
officers and controlling persons of the registrant pursuant to
the foregoing provisions, or otherwise, the registrants have
been advised that in the opinion of the Commission such
indemnification is against public
</DIV>

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

</FONT></DIV>

<P align="center" style="font-size: 10pt;">II-2

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<DIV align="left" style="font-size: 10pt;">
policy as expressed in the Securities Act of 1933 and is,
therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of
appropriate jurisdiction the question of whether such
indemnification by it is against public policy as expressed in
the Securities Act of 1933 and will be governed by the final
adjudication of such issue.
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned registrants hereby undertake to respond to
requests for information that is incorporated by reference into
the prospectus pursuant to Item&nbsp;4, 10(b), 11, or 13 of this
form, within one business day of receipt of such requests, and
to send the incorporated documents by first class mail or other
equally prompt means. This includes information contained in
documents filed subsequent to the effective date of the
registration statement through the date of responding to the
requests.
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned registrants hereby undertake to supply by means
of post-effective amendment all information concerning a
transaction, and the company being acquired involved therein,
that was not the subject of and included in the registration
statement when it becomes effective.
</DIV>

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

</FONT></DIV>

<P align="center" style="font-size: 10pt;">II-3
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SIGNATURES</B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of the Securities Act of 1933, as
amended, the registrant has duly caused this registration
statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in Mt. Kisco, New York on
December&nbsp;2, 2005.
</DIV>

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

</FONT></DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    AMERICAN REAL ESTATE</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    PARTNERS, L.P.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="2%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD align="left">
    American Property Investors, Inc.,</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    its general partner</TD>
</TR>

</TABLE>

<DIV style="margin-top: 48pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="2%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD align="center">
    /s/ Keith A. Meister</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 3pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt" align="left">&nbsp;</DIV></TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="center">
    Keith A. Meister</TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="center">
    <I>Chief Executive Officer</I></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Pursuant to the requirements of the Securities Act of 1933, as
    amended, this registration statement has been signed below by
    the following persons in the capacities and on the dates
    indicated:</TD>
</TR>

</TABLE>

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

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Keith A. Meister<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Keith
    A. Meister</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chief Executive Officer<BR>
    (Principal Executive Officer)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Jon F. Weber<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Jon
    F. Weber</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    President and Chief Financial Officer (Principal Financial
    Officer)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Adrian Tannian<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Adrian
    Tannian</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chief Accounting Officer<BR>
    (Principal Accounting Officer)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    *<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Jack
    G. Wasserman</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    *<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>William
    A. Leidesdorf</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    *<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>James
    L. Nelson</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    *<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Carl
    C. Icahn</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    *By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;Keith A. Meister<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Keith
    A. Meister<BR>
    Attorney-in-fact</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

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

</FONT></DIV>

<P align="center" style="font-size: 10pt;">II-4
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SIGNATURES</B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of the Securities Act of 1933, as
amended, the registrant has duly caused this registration
statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in Mt. Kisco, New York on
December&nbsp;2, 2005.
</DIV>

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

</FONT></DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    AMERICAN REAL ESTATE FINANCE CORP.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 48pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="2%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD align="center">
    /s/ Keith A. Meister</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 3pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt" align="left">&nbsp;</DIV></TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="center">
    Keith A. Meister</TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="center">
    <I>Chief Executive Officer</I></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Pursuant to the requirements of the Securities Act of 1933, as
    amended, this registration statement has been signed below by
    the following persons in the capacities and on the dates
    indicated:</TD>
</TR>

</TABLE>

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

</FONT></DIV>

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

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Keith A. Meister<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Keith
    A. Meister</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chief Executive Officer<BR>
    (Principal Executive Officer)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Jon F. Weber<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Jon
    F. Weber</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    President and Chief Financial Officer (Principal Financial
    Officer)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Adrian Tannian<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Adrian
    Tannian</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chief Accounting Officer<BR>
    (Principal Accounting Officer)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    *<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Jack
    G. Wasserman</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    *<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>William
    A. Leidesdorf</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    *<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>James
    L. Nelson</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    *<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Carl
    C. Icahn</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    *By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;Keith A. Meister<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Keith
    A. Meister<BR>
    Attorney-in-fact</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

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

</FONT></DIV>

<P align="center" style="font-size: 10pt;">II-5
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SIGNATURES</B>
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of the Securities Act of 1933, as
amended, the registrant has duly caused this registration
statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in Mt. Kisco, New York on
December&nbsp;2, 2005.
</DIV>

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

</FONT></DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    AMERICAN REAL ESTATE HOLDINGS LIMITED&nbsp;PARTNERSHIP</TD>
</TR>

</TABLE>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="2%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD align="left">
    American Property Investors, Inc.,</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    its general partner</TD>
</TR>

</TABLE>

<DIV style="margin-top: 48pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="2%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD align="center">
    /s/ Keith A. Meister</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 3pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt" align="left">&nbsp;</DIV></TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="center">
    Keith A. Meister</TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="center">
    <I>Chief Executive Officer</I></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Pursuant to the requirements of the Securities Act of 1933, as
    amended, this registration statement has been signed below by
    the following persons in the capacities and on the dates
    indicated:</TD>
</TR>

</TABLE>

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

</FONT></DIV>

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

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Keith A. Meister<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Keith
    A. Meister</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chief Executive Officer<BR>
    (Principal Executive Officer)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Jon F. Weber<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Jon
    F. Weber</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    President and Chief Financial Officer (Principal Financial
    Officer)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Adrian Tannian<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Adrian
    Tannian</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chief Accounting Officer<BR>
    (Principal Accounting Officer)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    *<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Jack
    G. Wasserman</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    *<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>William
    A. Leidesdorf</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    *<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>James
    L. Nelson</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    *<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Carl
    C. Icahn</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    December&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    *By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;Keith A. Meister<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Keith
    A. Meister<BR>
    Attorney-in-fact</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

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

</FONT></DIV>

<P align="center" style="font-size: 10pt;">II-6
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EXHIBIT INDEX</B>
</DIV>

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

</FONT></DIV>

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

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Description</B></TD>
</TR>

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

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Indenture, dated as of February&nbsp;7, 2005, among American
    Real Estate Partners, L.P., American Real Estate Finance Corp.,
    AREH, as guarantor and Wilmington Trust Company, as Trustee
    (incorporated by reference to Exhibit&nbsp;4.9 to AREP&#146;s
    Form 8-K (SEC File No.&nbsp;1-9516), filed on February&nbsp;10,
    2005).</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Form of
    7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;Senior
    Note due 2013 (incorporated by reference to Exhibit&nbsp;4.9 to
    AREP&#146;s Form 8-K (SEC File No.&nbsp;1-9516), filed on
    February&nbsp;10, 2005).</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Registration Rights Agreement, dated as of February&nbsp;7,
    2005, among American Real Estate Partners, L.P., American Real
    Estate Finance Corp., AREH and Bear, Stearns&nbsp;&#38; Co. Inc.
    (incorporated by reference to Exhibit&nbsp;4.11 to AREP&#146;s
    Form 8-K (SEC File No.&nbsp;1-9516), filed on February&nbsp;10,
    2005).</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>5</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Opinion of DLA Piper Rudnick Gray Cary US LLP.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>12</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Ratio of Earnings to Fixed Charges.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent of Grant Thornton LLP.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent of KPMG LLP.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23</TD>
    <TD align="left" valign="top" nowrap>.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent of Grant Thornton LLP.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23</TD>
    <TD align="left" valign="top" nowrap>.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent of Grant Thornton LLP.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23</TD>
    <TD align="left" valign="top" nowrap>.5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent of KPMG LLP.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23</TD>
    <TD align="left" valign="top" nowrap>.6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent of Pannell Kerr Forster of Texas, P.C.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23</TD>
    <TD align="left" valign="top" nowrap>.7</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent of Ernst &#38; Young LLP, independent registered public
    accounting firm.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23</TD>
    <TD align="left" valign="top" nowrap>.8</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent of DLA Piper Rudnick Gray Cary US LLP. (included in
    exhibit&nbsp;5.1)</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>24</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Power of Attorney. (1)</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>25</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Statement of Eligibility of Trustee.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>99</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Letter of Transmittal.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>99</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Notice of Guaranteed Delivery.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>99</TD>
    <TD align="left" valign="top" nowrap>.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Letter to Clients.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>99</TD>
    <TD align="left" valign="top" nowrap>.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Letter to Brokers.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>99</TD>
    <TD align="left" valign="top" nowrap>.5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Form of Exchange Agent Agreement by and between AREP and
    Wilmington Trust Company.</TD>
</TR>

</TABLE>
</CENTER>

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

</FONT></DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Previously filed.</TD>
</TR>

</TABLE>

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

</FONT></DIV>

<P align="center" style="font-size: 10pt;">II-7
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>2
<FILENAME>y09849a1exv5w1.htm
<DESCRIPTION>EX-5.1: OPINION OF DLA PIPER RUDNICK GRAY CARY US LLP
<TEXT>
<HTML>
<HEAD>
<TITLE>EXHIBIT 5.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    DLA Piper Rudnick Gray Cary US LLP</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    1251 Avenue of the Americas</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    New York, New York 10020-1104</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    T 212.835.6000</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    F 212.835.6001</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    W www.dlapiper.com</TD>
</TR>

</TABLE>


<DIV align="right" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
December&nbsp;2, 2005
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
American Real Estate Partners, L.P.
</DIV>

<DIV align="left" style="font-size: 10pt;">
American Real Estate Finance Corp.
</DIV>

<DIV align="left" style="font-size: 10pt;">
100 South Bedford Road
</DIV>

<DIV align="left" style="font-size: 10pt;">
Mt. Kisco, NY 10549
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Ladies and Gentlemen:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have acted as counsel to each of American Real Estate
Partners, L.P., a Delaware limited partnership
(&#147;AREP&#148;), and American Real Estate Finance Corp., a
Delaware corporation (&#147;AREP Finance&#148; and together with
AREP, the &#147;Company&#148;), in connection with the
preparation and filing of a Registration Statement on
Form&nbsp;S-4 (File No.&nbsp;333-125986) filed by the Company
and American Real Estate Holdings Limited Partnership, a
Delaware limited partnership (&#147;AREH&#148; or the
&#147;Subsidiary Guarantor&#148;), with the Securities and
Exchange Commission (the &#147;Commission&#148;) on
June&nbsp;21, 2005, as amended by Amendment No.&nbsp;1 to such
Registration Statement to be filed with the Commission as of the
date hereof (as amended, the &#147;Registration
Statement&#148;), pursuant to which the Company is registering
$480,000,000 aggregate principal amount of its
7.125%&nbsp;Senior Notes due 2013 (the &#147;New Notes&#148;).
The Indenture, dated as of February&nbsp;7, 2005 (the
&#147;Indenture&#148;), by and among the Company, AREH and
Wilmington Trust Company, as trustee (the &#147;Trustee&#148;),
provides for the guarantee of the New Notes by AREH to the
extent set forth in the Indenture (the &#147;Guarantee&#148;).
Pursuant to the Registration Statement and the Registration
Rights Agreement, dated as of February&nbsp;7, 2005, by and
among the Company, AREH and Bear, Stearns&nbsp;&#38; Co. Inc.
(the &#147;Registration Rights Agreement&#148;), the Company is
offering to issue the New Notes in exchange for all of its
outstanding 7.125%&nbsp;Senior Notes due 2013 (the &#147;Old
Notes&#148;) (the &#147;Exchange Offer&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with this opinion, we have examined originals or
copies, certified or otherwise identified to our satisfaction,
of (i)&nbsp;an executed copy of the Indenture; (ii)&nbsp;certain
resolutions adopted by the Board of Directors of the general
partner of AREP, AREP Finance and the general partner of AREH
relating to the Exchange Offer, the issuance of the Old Notes
and the New Notes, the Indenture and related matters; and
(iii)&nbsp;the form of the New Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have also examined originals or copies, certified or
otherwise identified to our satisfaction, of such corporate or
comparable documents, certificates of public officials and
officers and representatives of the Company and such other
documents, records and instruments, and we have made such
inquiries of such officers and representatives of each of the
general
</DIV>


<DIV align="left" style="font-size: 8pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Serving clients globally
</DIV>

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

<DIV align="right" style="font-size: 10pt;">
American Real Estate Partners, L.P.
</DIV>

<DIV align="right" style="font-size: 10pt;">
American Real Estate Finance Corp.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
December&nbsp;2, 2005
</DIV>



<DIV align="right" style="font-size: 10pt;">
Page&nbsp;2
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
partner of AREP, AREP Finance and the general partner of AREH,
as we have deemed necessary or appropriate as a basis for our
opinion. In our examination, we have assumed the legal capacity
of all natural persons, the genuineness of all signatures, the
authenticity of all documents submitted to us as originals, the
conformity to original documents of all documents submitted to
us as certified or photostatic copies and the authenticity of
the originals of such latter documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based upon and subject to the foregoing and the limitations,
qualifications, exceptions and assumptions set forth herein, we
are of the opinion that when the Registration Statement becomes
effective and the New Notes (in the form examined by us) have
been duly executed by the Company and authenticated by the
Trustee in accordance with the terms of the Indenture and have
been delivered upon consummation of the Exchange Offer against
receipt of Old Notes surrendered in exchange therefor in
accordance with the terms of the Exchange Offer, (i)&nbsp;the
New Notes will constitute a valid and binding obligation of the
Company and (ii)&nbsp;the Guarantee will constitute a valid and
binding obligation of the Subsidiary Guarantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The opinion expressed above is limited by, subject to and based
on the assumptions, limitations and qualifications set forth
below:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;The validity and binding effect of the New Notes and
    the Guarantee may be limited or affected by bankruptcy,
    reorganization, insolvency, fraudulent conveyance, moratorium or
    other similar laws relating to or affecting creditors&#146;
    rights generally and by general equitable principles (regardless
    of whether such validity and binding effect are considered in a
    proceeding in equity or at law), and may be limited by
    applicable laws or policies underlying such laws.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;We express no opinion as to the legality, validity,
    enforceability or binding effect of provisions relating to
    indemnities and rights of contribution to the extent prohibited
    by public policy or which might require indemnification for
    losses or expenses caused by negligence, gross negligence,
    willful misconduct, fraud or illegality of an indemnified party.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;The foregoing opinion is limited to the laws of the
    State of New York and the General Corporation Law and the
    Revised Uniform Limited Partnership Act of Delaware. We do not
    express any opinion herein concerning the laws of any other
    jurisdiction.</TD>
</TR>

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

<DIV align="right" style="font-size: 10pt;">
American Real Estate Partners, L.P.
</DIV>

<DIV align="right" style="font-size: 10pt;">
American Real Estate Finance Corp.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
December&nbsp;2, 2005
</DIV>



<DIV align="right" style="font-size: 10pt;">
Page&nbsp;3
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We hereby consent to the filing of this opinion with the
Commission as an exhibit to the Registration Statement. We also
consent to the reference to our firm under the caption
&#147;Legal Matters&#148; in the prospectus included in the
Registration Statement. In giving this consent, we do not
thereby admit that we are included in the category of persons
whose consent is required under Section&nbsp;7 of the Securities
Act of 1933 or the rules and regulations of the Commission.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Very truly yours,</TD>
</TR>

<TR>
    <TD style="font-size: 12pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    DLA PIPER RUDNICK GRAY CARY US LLP</TD>
</TR>

</TABLE>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12.1
<SEQUENCE>3
<FILENAME>y09849a1exv12w1.htm
<DESCRIPTION>EX-12.1: RATIO OF EARNINGS TO FIXED CHARGES
<TEXT>
<HTML>
<HEAD>
<TITLE>EXHIBIT 12.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 12.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>American Real Estate Partners, L.P. and Subsidiaries<BR>
Ratio of Earnings to Fixed Charges<BR>
(Amounts in thousands)</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="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Nine Months</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000">September 30,</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000">Years Ended December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2000</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations before income taxes,
income or loss from equity investees and minority
interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">(97,158</TD>
    <TD align="left">)</TD>
    <td>&nbsp;</td>
    <TD align="left">$</TD>
    <TD align="right">89,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">40,237</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">53,863</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">61,167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">76,536</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fixed Charges:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest Expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,643</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,336</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,999</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amortized capitalized expenses related
to indebtedness</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,582</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">320</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">191</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">222</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Estimated interest within rental expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">486</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">585</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">437</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amortization
of capitalized interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">559</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">559</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">494</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">475</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">600</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings as defined</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">(15,279</TD>
    <TD align="left">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">154,196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">80,311</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">92,196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">106,713</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">96,794</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fixed Charges (including capitalized items)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest Expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">78,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">61,380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">38,643</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">37,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44,336</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,999</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest
capitalized</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,064</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">458</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amortized capitalized expenses related
to indebtedness</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,582</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">320</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">191</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">222</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Estimated interest within rental expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">486</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">585</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">437</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fixed charges as defined</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">81,879</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">64,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">39,815</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">38,605</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">48,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,116</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratio of earnings to fixed charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    For the nine months ended September&nbsp;30, 2005, earnings were
    not sufficient to cover fixed charges by $97.2&nbsp;million.</TD>
</TR>

</TABLE>




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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>4
<FILENAME>y09849a1exv23w1.txt
<DESCRIPTION>EX-23.1: CONSENT OF GRANT THORNTON LLP
<TEXT>
<PAGE>
                                                                    Exhibit 23.1


            CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



The Board of Directors and Partners of
  AMERICAN REAL ESTATE PARTNERS, L.P.

We have issued our reports dated March 11, 2005 accompanying the consolidated
financial statements of American Real Estate Partners, L.P. and subsidiaries,
and accompanying the schedule and management's assessment of the effectiveness
of internal control over financial reporting included in the Annual Report on
Form 10-K for the year ended December 31, 2004 which are incorporated by
reference in this Registration Statement. The reports dated June 2, 2005 and
November 29, 2005 on the supplemental consolidated financial statements and
accompanying consolidated financial statements, respectively, included in the
Current Reports on Forms 8-K for the year ended December 31, 2004 of American
Real Estate Partners, L.P. and subsidiaries are also incorporated by reference
in this Registration Statement. We consent to the incorporation by reference in
the Registration Statement of the aforementioned reports and to the use of our
name as it appears under the caption "Experts."

                                    /s/  Grant Thornton LLP

New York, New York
November 29, 2005


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.2
<SEQUENCE>5
<FILENAME>y09849a1exv23w2.txt
<DESCRIPTION>EX-23.2: CONSENT OF KPMG LLP
<TEXT>
<PAGE>

                                                                    Exhibit 23.2





            Consent of Independent Registered Public Accounting Firm


The Partners and the Board of Directors
American Real Estate Partners, L.P.:

We consent to the incorporation by reference in the registration statement
No. 333-125986 on Form S-4 of our reports dated November 29, 2005, with respect
to the consolidated balance sheets of each of American Real Estate Partners,
L.P. and American Real Estate Holdings Limited Partnership as of December 31,
2003, and the related consolidated statements of earnings, changes in
partners' equity and comprehensive income, and cash flows for each of the years
in the two-year period ended December 31, 2003 which reports appear in the Form
8-K of American Real Estate Partners, L.P. dated  December 2, 2005, and to the
reference to our firm under the heading "Experts" in the registration statement.


New York, New York
December 2, 2005

                                                                    /s/ KPMG LLP
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.3
<SEQUENCE>6
<FILENAME>y09849a1exv23w3.txt
<DESCRIPTION>EX-23.3: CONSENT OF GRANT THORNTON LLP
<TEXT>
<PAGE>
                                                                    Exhibit 23.3


            CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



The Board of Directors and Partners of
      AMERICAN REAL ESTATE HOLDINGS LIMITED PARTNERSHIP



We have issued our reports dated March 11, 2005 and November 29, 2005,
accompanying the consolidated financial statements of American Real Estate
Holdings Limited Partnership in the Annual Report on Form 10-K and Current
Report on Form 8-K, respectively, for the year ended December 31, 2004, which
are incorporated by reference in this Registration Statement. We consent to the
incorporation by reference of the aforementioned reports in the Registration
Statement and to the use of our name as it appears under the caption "Experts."

                                        /s/ GRANT THORNTON LLP

New York, New York
November 29, 2005

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.4
<SEQUENCE>7
<FILENAME>y09849a1exv23w4.txt
<DESCRIPTION>EX-23.4: CONSENT OF GRANT THORNTON LLP
<TEXT>
<PAGE>
                                                                    Exhibit 23.4


            CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


The Board of Directors of
     American Property Investors, Inc.

We have issued our report dated April 27, 2005, accompanying the balance sheet
of American Property Investors, Inc. as of December 31, 2004, which is
incorporated by reference in this Registration Statement. We consent to the
incorporation by reference of the aforementioned report in the Registration
Statement and to the use of our name as it appears under the caption "Experts."


                                      /s/ GRANT THORNTON LLP


New York, New York
November 29, 2005
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.5
<SEQUENCE>8
<FILENAME>y09849a1exv23w5.txt
<DESCRIPTION>EX-23.5: CONSENT OF KPMG LLP
<TEXT>
<PAGE>

                                                                    EXHIBIT 23.5

            CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the use of our report dated March 11, 2005, with respect to the
consolidated balance sheets of GB Holdings, Inc. and subsidiaries as of December
31, 2004 and 2003, and the related consolidated statements of operations,
changes in shareholder's equity, and cash flows for each of the years in the
three-year period ended December 31, 2004, incorporated by reference herein and
to the reference to our firm under the heading "Experts" in the prospectus. The
audits referred to in our report dated March 11, 2005, included the related
consolidated financial statement schedule. Our report dated March 11, 2005
contains an explanatory paragraph that states that GB Holdings' has suffered
recurring net losses, has a net working capital deficiency and has significant
debt obligations which are due within one year that raise substantial doubt
about its ability to continue as a going concern. The consolidated financial
statements and financial statement schedule do not include any adjustments that
might result from the outcome of that uncertainty.

                                                                    /S/ KPMG LLP

Short Hills, New Jersey
November 29, 2005

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.6
<SEQUENCE>9
<FILENAME>y09849a1exv23w6.txt
<DESCRIPTION>EX-23.6: CONSENT OF PANNELL KERR FORSTER OF TEXAS, P.C.
<TEXT>
<PAGE>
                                                                    Exhibit 23.6

            CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


We consent to the use in this Amendment No. 1 to Registration Statement No.
333-125986 of American Real Estate Partners, L.P. on Form S-4 of our report
dated March 18, 2005 of Panaco, Inc. as of December 31, 2004, incorporated by
reference in the Prospectus, which is part of this Registration Statement. We
also consent to the reference to us under the heading "Experts" in such
Prospectus.



/s/ Pannell Kerr Forster of Texas, P.C.

November 30, 2005
Houston, TX
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.7
<SEQUENCE>10
<FILENAME>y09849a1exv23w7.txt
<DESCRIPTION>EX-23.7: CONSENT OF ERNST & YOUNG LLP
<TEXT>
<PAGE>
                                                                    EXHIBIT 23.7

CONSENT OF ERNST & YOUNG LLP, INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the reference to our firm under the caption "Experts" in Amendment
No. 1 to the American Real Estate Partners, L.P.'s Registration Statement (Form
S-4 No. 333-125986) and related Prospectus of American Real Estate Partners,
L.P. for the registration of $480,000,000 7 1/8% Senior Notes and to the
incorporation by reference therein of our report dated August 3, 2005 (except
Note 18 as to which the date is August 8, 2005) with respect to the consolidated
financial statements of WestPoint Stevens Inc. as of December 31, 2004 and 2003
and for the three years in the period ended December 31, 2004 included in
American Real Estate Partners, L.P.'s From 8-K/A dated October 21, 2005, filed
with the Securities and Exchange Commission.


                                             /s/ Ernst & Young LLP


Atlanta, Georgia
November 30, 2005


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-25.1
<SEQUENCE>11
<FILENAME>y09849a1exv25w1.htm
<DESCRIPTION>EX-25.1: STATEMENT OF ELIGIBILITY OF TRUSTEE
<TEXT>
<HTML>
<HEAD>
<TITLE>EXHIBIT 25.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>





<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;25.1</B>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 12pt"><B>FORM T-1</B></DIV>



<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>STATEMENT OF ELIGIBILITY<BR>
UNDER THE TRUST INDENTURE ACT OF 1939<BR>
OF A CORPORATION DESIGNATED TO ACT AS TRUSTEE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Check if an Application to Determine Eligibility of a Trustee Pursuant to Section&nbsp;305(b)(2) &#95;&#95;&#95;
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>WILMINGTON TRUST COMPANY</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of Trustee as specified in its charter)</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="48%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>51-0055023</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Jurisdiction of incorporation of organization if not a U.S.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer Identification No.)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">national bank)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>1100 North Market Street<BR>
Wilmington, Delaware 19890-0001<BR>
(302)&nbsp;651-1000</B><BR>
(Address of principal executive offices, including zip code)
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Cynthia L. Corliss<BR>
Vice President and Assistant General Counsel<BR>
Wilmington Trust Company<BR>
1100 North Market Street<BR>
Wilmington, Delaware 19890-0001<BR>
(302)&nbsp;651-8516</B><BR>
(Name, address, including zip code, and telephone number, including area code, of agent of service)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>AMERICAN REAL ESTATE PARTNERS, L.P.</B></DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of obligor as specified in its charter)</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="48%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>13-3398766</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction or incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>AMERICAN REAL ESTATE FINANCE CORP.</B></DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of obligor as specified in its charter)</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="48%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>20-1059842</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction or incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>AMERICAN REAL ESTATE HOLDINGS LIMITED PARTNERSHIP</B></DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of obligor as specified in its charter)</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="48%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>13-3398767</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction or incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>100 South Bedford Road<BR>
Mt. Kisco, New York 10549</B><BR>
(Address of principal executive offices, including zip code)
</DIV>


<DIV align="center">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>7<SUP style="font-size: 85%; vertical-align: text-top">1/8%</SUP> Senior Notes due 2013</B><BR>
(Title of the indenture securities)</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





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

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD></TD><TD colspan="8"><A HREF="#000">ITEM 1. GENERAL INFORMATION</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">ITEM 2. AFFILIATIONS WITH THE OBLIGOR</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#002">ITEM 16. LIST OF EXHIBITS</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>





<!-- link2 "ITEM 1. GENERAL INFORMATION" -->
<DIV align="left"><A NAME="000"></A></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 1. GENERAL INFORMATION.</B>
</DIV>


<DIV align="left" style="margin-left: 3%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Furnish the following information as to the trustee:</DIV>


<DIV align="left" style="margin-left: 3%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">(a)&nbsp;Name and address of each examining or supervising authority to which it is subject.</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Federal Deposit Insurance Corp.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">State Bank Commissioner</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">20 Exchange Place, Room&nbsp;6014
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">555 East Loockerman Street, Suite&nbsp;210</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New York, New York 10005
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dover, Delaware 19901</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="margin-left: 3%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">(b)&nbsp;Whether it is authorized to exercise corporate trust powers.</DIV>


<DIV align="left" style="margin-left: 3%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">The trustee is authorized to exercise corporate trust powers.</DIV>

<!-- link2 "ITEM 2. AFFILIATIONS WITH THE OBLIGOR" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 2. AFFILIATIONS WITH THE OBLIGOR.</B>
</DIV>


<DIV align="left" style="margin-left: 3%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">If the obligor is an affiliate of the trustee, describe each affiliation:</DIV>


<DIV align="left" style="margin-left: 3%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Based upon an examination of the books and records of the trustee and information
available to the trustee, the obligor is not an affiliate of the trustee.</DIV>

<!-- link2 "ITEM 16. LIST OF EXHIBITS" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 16. LIST OF EXHIBITS.</B>
</DIV>


<DIV align="left" style="margin-left: 3%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">List below all exhibits filed as part of this Statement of Eligibility and
Qualification.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A copy of the Charter of Wilmington Trust Company (Exhibit&nbsp;1), which includes the
certificate of authority of Wilmington Trust Company to commence business (Exhibit
2) and the authorization of Wilmington Trust Company to exercise corporate trust
powers (Exhibit&nbsp;3).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A copy of the existing By-Laws of Wilmington Trust Company (Exhibit&nbsp;4).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Consent of Wilmington Trust Company required by Section 321(b) of the Trust
Indenture Act (Exhibit&nbsp;6).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A copy of the latest Report of Condition of Wilmington Trust Company (Exhibit&nbsp;7).</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to the requirements of the Trust Indenture Act of 1939, as amended, the trustee,
Wilmington Trust Company, a corporation organized and existing under the laws of Delaware, has duly
caused this Statement of Eligibility to be signed on its behalf by the undersigned, thereunto duly
authorized, all in the City of Wilmington and State of Delaware on the 22<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> day of
November, 2005.
</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>WILMINGTON TRUST COMPANY</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Attest:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Michael G. Oller, Jr.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Denis M. Geran</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Assistant Secretary
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: Denise M. Geran</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: Vice President</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT 1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AMENDED CHARTER</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Wilmington Trust Company</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Wilmington, Delaware</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>As existing on May&nbsp;9, 1987</B>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Amended Charter<BR>
or<BR>
Act of Incorporation<BR>
of<BR>
Wilmington Trust Company</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Wilmington Trust Company</B>, originally incorporated by an Act of the General Assembly of the
State of Delaware, entitled &#147;An Act to Incorporate the Delaware Guarantee and Trust Company&#148;,
approved March&nbsp;2, A.D. 1901, and the name of which company was changed to &#147;<B>Wilmington Trust
Company</B>&#148; by an amendment filed in the Office of the Secretary of State on March&nbsp;18, A.D. 1903, and
the Charter or Act of Incorporation of which company has been from time to time amended and changed
by merger agreements pursuant to the corporation law for state banks and trust companies of the
State of Delaware, does hereby alter and amend its Charter or Act of Incorporation so that the same
as so altered and amended shall in its entirety read as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>First: </B>- The name of this corporation is <B>Wilmington Trust Company</B>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Second: </B>- The location of its principal office in the State of Delaware is at Rodney
Square North, in the City of Wilmington, County of New Castle; the name of its resident
agent is <B>Wilmington Trust Company </B>whose address is Rodney Square North, in said City. In
addition to such principal office, the said corporation maintains and operates branch
offices in the City of Newark, New Castle County, Delaware, the Town of Newport, New Castle
County, Delaware, at Claymont, New Castle County, Delaware, at Greenville, New Castle County
Delaware, and at Milford Cross Roads, New Castle County, Delaware, and shall be empowered to
open, maintain and operate branch offices at Ninth and Shipley Streets, 418 Delaware Avenue,
2120 Market Street, and 3605 Market Street, all in the City of Wilmington, New Castle
County, Delaware, and such other branch offices or places of business as may be authorized
from time to time by the agency or agencies of the government of the State of Delaware
empowered to confer such authority.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Third: </B>- (a)&nbsp;The nature of the business and the objects and purposes proposed to be
transacted, promoted or carried on by this Corporation are to do any or all of the things
herein mentioned as fully and to the same extent as natural persons might or could do and in
any part of the world, viz.:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To sue and be sued, complain and defend in any Court of law or
equity and to make and use a common seal, and alter the seal at pleasure, to
hold, purchase, convey, mortgage or otherwise deal in real and personal estate
and property, and to appoint such officers and agents as the business of the
Corporation shall require, to make by-laws not inconsistent with the
Constitution or laws of the United States or of this State, to discount bills,
notes or other evidences of debt, to receive deposits of money, or securities
for money, to buy gold and silver bullion and foreign coins, to buy and sell
bills of exchange, and generally to use, exercise and enjoy all the powers,
rights, privileges and franchises incident to a corporation which are proper or
necessary for the transaction of the business of the Corporation hereby
created.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To insure titles to real and personal property, or any estate
or interests therein, and to guarantee the holder of such property, real or
personal, against any claim or claims, adverse to his interest therein, and to
prepare and give certificates of title for any lands or premises in the State
of Delaware, or elsewhere.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To act as factor, agent, broker or attorney in the receipt,
collection, custody, investment and management of funds, and the purchase,
sale, management and disposal of property of all descriptions, and to prepare
and execute all papers which may be necessary or proper in such business.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To prepare and draw agreements, contracts, deeds, leases,
conveyances, mortgages, bonds and legal papers of every description, and to carry on the business of
conveyancing in all its branches.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To receive upon deposit for safekeeping money, jewelry, plate,
deeds, bonds and any and all other personal property of every sort and kind,
from executors, administrators, guardians, public officers, courts, receivers,
assignees, trustees, and from all fiduciaries, and from all other persons and
individuals, and from all corporations whether state, municipal, corporate or
private, and to rent boxes, safes, vaults and other receptacles for such
property.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To act as agent or otherwise for the purpose of registering,
issuing, certificating, countersigning, transferring or underwriting the stock,
bonds or other obligations of any corporation, association, state or
municipality, and may receive and manage any sinking fund therefor on such
terms as may be agreed upon between the two parties, and in like manner may act
as Treasurer of any corporation or municipality.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To act as Trustee under any deed of trust, mortgage, bond or
other instrument issued by any state, municipality, body politic, corporation,
association or person, either alone or in conjunction with any other person or
persons, corporation or corporations.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To guarantee the validity, performance or effect of any
contract or agreement, and the fidelity of persons holding places of
responsibility or trust; to become surety for any person, or persons, for the
faithful performance of any trust, office, duty, contract or agreement, either
by itself or in conjunction with any other person, or persons, corporation, or
corporations, or in like manner become surety upon any bond, recognizance,
obligation, judgment, suit, order, or decree to be entered in any court of
record within the State of Delaware or elsewhere, or which may now or hereafter
be required by any law, judge, officer or court in the State of Delaware or
elsewhere.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(9)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To act by any and every method of appointment as trustee,
trustee in bankruptcy, receiver, assignee, assignee in bankruptcy, executor,
administrator, guardian, bailee, or in any other trust capacity in the
receiving, holding, managing, and disposing of any and all estates and
property, real, personal or mixed, and to be appointed as such trustee, trustee
in bankruptcy, receiver, assignee, assignee in bankruptcy, executor,
administrator, guardian or bailee by any persons, corporations, court, officer,
or authority, in the State of Delaware or elsewhere; and whenever this
Corporation is so appointed by any person, corporation, court, officer or
authority such trustee, trustee in bankruptcy, receiver, assignee, assignee in
bankruptcy, executor, administrator, guardian, bailee, or in any other trust
capacity, it shall not be required to give bond with surety, but its capital
stock shall be taken and held as security for the performance of the duties
devolving upon it by such appointment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(10)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>And for its care, management and trouble, and the exercise of
any of its powers hereby given, or for the performance of any of the duties
which it may undertake or be called upon to perform, or for the assumption of
any responsibility the said Corporation may be entitled to receive a proper
compensation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(11)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To purchase, receive, hold and own bonds, mortgages,
debentures, shares of capital stock, and other securities, obligations,
contracts and evidences of indebtedness, of any private, public or municipal
corporation within and without the State of Delaware, or of the Government of
the United States, or of any state, territory, colony, or possession thereof,</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">2
</DIV>

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</DIV>

<DIV align="left" style="margin-left: 9%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">or of any foreign government or country; to receive, collect, receipt for, and
dispose of interest, dividends and income upon and from any of the bonds, mortgages,
debentures, notes, shares of capital stock, securities, obligations,
contracts, evidences of indebtedness and other property held and owned by
it, and to exercise in respect of all such bonds, mortgages, debentures,
notes, shares of capital stock, securities, obligations, contracts,
evidences of indebtedness and other property, any and all the rights, powers
and privileges of individual owners thereof, including the right to vote
thereon; to invest and deal in and with any of the moneys of the Corporation
upon such securities and in such manner as it may think fit and proper, and
from time to time to vary or realize such investments; to issue bonds and
secure the same by pledges or deeds of trust or mortgages of or upon the
whole or any part of the property held or owned by the Corporation, and to
sell and pledge such bonds, as and when the Board of Directors shall
determine, and in the promotion of its said corporate business of investment
and to the extent authorized by law, to lease, purchase, hold, sell, assign,
transfer, pledge, mortgage and convey real and personal property of any name
and nature and any estate or interest therein.</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In furtherance of, and not in limitation, of the powers conferred by the laws of
the State of Delaware, it is hereby expressly provided that the said Corporation shall also
have the following powers:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To do any or all of the things herein set forth, to the same
extent as natural persons might or could do, and in any part of the world.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To acquire the good will, rights, property and franchises and
to undertake the whole or any part of the assets and liabilities of any
person, firm, association or corporation, and to pay for the same in cash,
stock of this Corporation, bonds or otherwise; to hold or in any manner to
dispose of the whole or any part of the property so purchased; to conduct in
any lawful manner the whole or any part of any business so acquired, and to
exercise all the powers necessary or convenient in and about the conduct and
management of such business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To take, hold, own, deal in, mortgage or otherwise lien, and to
lease, sell, exchange, transfer, or in any manner whatever dispose of property,
real, personal or mixed, wherever situated.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To enter into, make, perform and carry out contracts of every
kind with any person, firm, association or corporation, and, without limit as
to amount, to draw, make, accept, endorse, discount, execute and issue
promissory notes, drafts, bills of exchange, warrants, bonds, debentures, and
other negotiable or transferable instruments.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To have one or more offices, to carry on all or any of its
operations and businesses, without restriction to the same extent as natural
persons might or could do, to purchase or otherwise acquire, to hold, own, to
mortgage, sell, convey or otherwise dispose of, real and personal property, of
every class and description, in any State, District, Territory or Colony of the
United States, and in any foreign country or place.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is the intention that the objects, purposes and powers
specified and clauses contained in this paragraph shall (except where otherwise
expressed in said paragraph) be nowise limited or restricted by reference to or
inference from the terms of any other clause of this or any other paragraph in
this charter, but that the objects, purposes and powers specified in each of
the clauses of this paragraph shall be regarded as independent objects,
purposes and powers.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">3
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Fourth: </B>- (a)&nbsp;The total number of shares of all classes of stock which the Corporation
shall have authority to issue is forty-one million (41,000,000) shares, consisting of:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>One million (1,000,000) shares of Preferred stock, par value
$10.00 per share (hereinafter referred to as &#147;Preferred Stock&#148;); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Forty million (40,000,000) shares of Common Stock, par value
$1.00 per share (hereinafter referred to as &#147;Common Stock&#148;).</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Shares of Preferred Stock may be issued from time to time in one or more series as
may from time to time be determined by the Board of Directors each of said series to be
distinctly designated. All shares of any one series of Preferred Stock shall be alike in
every particular, except that there may be different dates from which dividends, if any,
thereon shall be cumulative, if made cumulative. The voting powers and the preferences and
relative, participating, optional and other special rights of each such series, and the
qualifications, limitations or restrictions thereof, if any, may differ from those of any
and all other series at any time outstanding; and, subject to the provisions of subparagraph
1 of Paragraph (c)&nbsp;of this Article <B>Fourth</B>, the Board of Directors of the Corporation is
hereby expressly granted authority to fix by resolution or resolutions adopted prior to the
issuance of any shares of a particular series of Preferred Stock, the voting powers and the
designations, preferences and relative, optional and other special rights, and the
qualifications, limitations and restrictions of such series, including, but without limiting
the generality of the foregoing, the following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The distinctive designation of, and the number of shares of
Preferred Stock which shall constitute such series, which number may be
increased (except where otherwise provided by the Board of Directors) or
decreased (but not below the number of shares thereof then outstanding) from
time to time by like action of the Board of Directors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The rate and times at which, and the terms and conditions on
which, dividends, if any, on Preferred Stock of such series shall be paid, the
extent of the preference or relation, if any, of such dividends to the
dividends payable on any other class or classes, or series of the same or other
class of stock and whether such dividends shall be cumulative or
non-cumulative;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The right, if any, of the holders of Preferred Stock of such
series to convert the same into or exchange the same for, shares of any other
class or classes or of any series of the same or any other class or classes of
stock of the Corporation and the terms and conditions of such conversion or
exchange;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Whether or not Preferred Stock of such series shall be subject
to redemption, and the redemption price or prices and the time or times at
which, and the terms and conditions on which, Preferred Stock of such series
may be redeemed.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The rights, if any, of the holders of Preferred Stock of such
series upon the voluntary or involuntary liquidation, merger, consolidation,
distribution or sale of assets, dissolution or winding-up, of the Corporation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The terms of the sinking fund or redemption or purchase
account, if any, to be provided for the Preferred Stock of such series; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The voting powers, if any, of the holders of such series of
Preferred Stock which may, without limiting the generality of the foregoing
include the right, voting as a series or by itself or together with other
series of Preferred Stock or all series of Preferred Stock as a</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">4
</DIV>

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</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>class, to elect one or more directors of the Corporation if there shall have been a default
in the payment of dividends on any one or more series of Preferred Stock or
under such circumstances and on such conditions as the Board of Directors
may determine.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(1)&nbsp;After the requirements with respect to preferential
dividends on the Preferred Stock (fixed in accordance with the provisions of
section (b)&nbsp;of this Article <B>Fourth</B>), if any, shall have been met and after the
Corporation shall have complied with all the requirements, if any, with respect
to the setting aside of sums as sinking funds or redemption or purchase
accounts (fixed in accordance with the provisions of section (b)&nbsp;of this
Article <B>Fourth</B>), and subject further to any conditions which may be fixed in
accordance with the provisions of section (b)&nbsp;of this Article <B>Fourth</B>, then and
not otherwise the holders of Common Stock shall be entitled to receive such
dividends as may be declared from time to time by the Board of Directors.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>After distribution in full of the preferential amount, if any,
(fixed in accordance with the provisions of section (b)&nbsp;of this Article
<B>Fourth</B>), to be distributed to the holders of Preferred Stock in the event of
voluntary or involuntary liquidation, distribution or sale of assets,
dissolution or winding-up, of the Corporation, the holders of the Common Stock
shall be entitled to receive all of the remaining assets of the Corporation,
tangible and intangible, of whatever kind available for distribution to
stockholders ratably in proportion to the number of shares of Common Stock held
by them respectively.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as may otherwise be required by law or by the provisions
of such resolution or resolutions as may be adopted by the Board of Directors
pursuant to section (b)&nbsp;of this Article <B>Fourth</B>, each holder of Common Stock
shall have one vote in respect of each share of Common Stock held on all
matters voted upon by the stockholders.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No holder of any of the shares of any class or series of stock or of options,
warrants or other rights to purchase shares of any class or series of stock or of other
securities of the Corporation shall have any preemptive right to purchase or subscribe for
any unissued stock of any class or series or any additional shares of any class or series to
be issued by reason of any increase of the authorized capital stock of the Corporation of
any class or series, or bonds, certificates of indebtedness, debentures or other securities
convertible into or exchangeable for stock of the Corporation of any class or series, or
carrying any right to purchase stock of any class or series, but any such unissued stock,
additional authorized issue of shares of any class or series of stock or securities
convertible into or exchangeable for stock, or carrying any right to purchase stock, may be
issued and disposed of pursuant to resolution of the Board of Directors to such persons,
firms, corporations or associations, whether such holders or others, and upon such terms as
may be deemed advisable by the Board of Directors in the exercise of its sole discretion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The relative powers, preferences and rights of each series of Preferred Stock in
relation to the relative powers, preferences and rights of each other series of Preferred
Stock shall, in each case, be as fixed from time to time by the Board of Directors in the
resolution or resolutions adopted pursuant to authority granted in section (b)&nbsp;of this
Article <B>Fourth </B>and the consent, by class or series vote or otherwise, of the holders of such
of the series of Preferred Stock as are from time to time outstanding shall not be required
for the issuance by the Board of Directors of any other series of Preferred Stock whether or
not the powers, preferences and rights of such other series shall be fixed by the Board of
Directors as senior to, or on a parity with, the powers, preferences and rights of such
outstanding series, or any of them; provided, however, that the Board of Directors may
provide in the resolution or resolutions as to any series of Preferred Stock adopted
pursuant to section (b)&nbsp;of this Article <B>Fourth </B>that the consent of the holders of a majority
(or such greater proportion as shall be therein fixed) of the outstanding shares of such
series voting thereon shall be required for the issuance of any or all other series of
Preferred Stock.
</DIV>

<P align="center" style="font-size: 10pt">5
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Subject to the provisions of section (e), shares of any series of Preferred Stock
may be issued from time to time as the Board of Directors of the Corporation shall determine
and on such terms and for such consideration as shall be fixed by the Board of Directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Shares of Common Stock may be issued from time to time as the Board of Directors of
the Corporation shall determine and on such terms and for such consideration as shall be
fixed by the Board of Directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The authorized amount of shares of Common Stock and of Preferred Stock may, without
a class or series vote, be increased or decreased from time to time by the affirmative vote
of the holders of a majority of the stock of the Corporation entitled to vote thereon.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Fifth: </B>- (a)&nbsp;The business and affairs of the Corporation shall be conducted and
managed by a Board of Directors. The number of directors constituting the entire Board
shall be not less than five nor more than twenty-five as fixed from time to time by vote of
a majority of the whole Board, provided, however, that the number of directors shall not be
reduced so as to shorten the term of any director at the time in office, and provided
further, that the number of directors constituting the whole Board shall be twenty-four
until otherwise fixed by a majority of the whole Board.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Board of Directors shall be divided into three classes, as nearly equal in
number as the then total number of directors constituting the whole Board permits, with the
term of office of one class expiring each year. At the annual meeting of stockholders in
1982, directors of the first class shall be elected to hold office for a term expiring at
the next succeeding annual meeting, directors of the second class shall be elected to hold
office for a term expiring at the second succeeding annual meeting and directors of the
third class shall be elected to hold office for a term expiring at the third succeeding
annual meeting. Any vacancies in the Board of Directors for any reason, and any newly
created directorships resulting from any increase in the directors, may be filled by the
Board of Directors, acting by a majority of the directors then in office, although less than
a quorum, and any directors so chosen shall hold office until the next annual election of
directors. At such election, the stockholders shall elect a successor to such director to
hold office until the next election of the class for which such director shall have been
chosen and until his successor shall be elected and qualified. No decrease in the number of
directors shall shorten the term of any incumbent director.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding any other provisions of this Charter or Act of Incorporation or the
By-Laws of the Corporation (and notwithstanding the fact that some lesser percentage may be
specified by law, this Charter or Act of Incorporation or the By-Laws of the Corporation),
any director or the entire Board of Directors of the Corporation may be removed at any time
without cause, but only by the affirmative vote of the holders of two-thirds or more of the
outstanding shares of capital stock of the Corporation entitled to vote generally in the
election of directors (considered for this purpose as one class) cast at a meeting of the
stockholders called for that purpose.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Nominations for the election of directors may be made by the Board of Directors or
by any stockholder entitled to vote for the election of directors. Such nominations shall
be made by notice in writing, delivered or mailed by first class United States mail, postage
prepaid, to the Secretary of the Corporation not less than 14&nbsp;days nor more than 50&nbsp;days
prior to any meeting of the stockholders called for the election of directors; provided,
however, that if less than 21&nbsp;days&#146; notice of the meeting is given to stockholders, such
written notice shall be delivered or mailed, as prescribed, to the Secretary of the
Corporation not later than the close of the seventh day following the day on which notice of
the meeting was mailed to stockholders. Notice of nominations which are proposed by the
Board of Directors shall be given by the Chairman on behalf of the Board.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each notice under subsection (d)&nbsp;shall set forth (i)&nbsp;the name, age, business
address and, if
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="margin-left: 3%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">known, residence address of each nominee proposed in such notice, (ii)&nbsp;the
principal occupation or employment of such nominee and (iii)&nbsp;the number of shares of stock of the Corporation
which are beneficially owned by each such nominee.</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Chairman of the meeting may, if the facts warrant, determine and declare to the
meeting that a nomination was not made in accordance with the foregoing procedure, and if he
should so determine, he shall so declare to the meeting and the defective nomination shall
be disregarded.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No action required to be taken or which may be taken at any annual or special
meeting of stockholders of the Corporation may be taken without a meeting, and the power of
stockholders to consent in writing, without a meeting, to the taking of any action is
specifically denied.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Sixth: </B>- The Directors shall choose such officers, agents and servants as may be
provided in the By-Laws as they may from time to time find necessary or proper.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Seventh: </B>- The Corporation hereby created is hereby given the same powers, rights and
privileges as may be conferred upon corporations organized under the Act entitled &#147;An Act
Providing a General Corporation Law&#148;, approved March&nbsp;10, 1899, as from time to time amended.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Eighth: </B>- This Act shall be deemed and taken to be a private Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Ninth: </B>- This Corporation is to have perpetual existence.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Tenth: </B>- The Board of Directors, by resolution passed by a majority of the whole Board,
may designate any of their number to constitute an Executive Committee, which Committee, to
the extent provided in said resolution, or in the By-Laws of the Company, shall have and may
exercise all of the powers of the Board of Directors in the management of the business and
affairs of the Corporation, and shall have power to authorize the seal of the Corporation to
be affixed to all papers which may require it.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Eleventh: </B>- The private property of the stockholders shall not be liable for the
payment of corporate debts to any extent whatever.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Twelfth: </B>- The Corporation may transact business in any part of the world.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Thirteenth: </B>- The Board of Directors of the Corporation is expressly authorized to
make, alter or repeal the By-Laws of the Corporation by a vote of the majority of the entire
Board. The stockholders may make, alter or repeal any By-Law whether or not adopted by
them, provided however, that any such additional By-Laws, alterations or repeal may be
adopted only by the affirmative vote of the holders of two-thirds or more of the outstanding
shares of capital stock of the Corporation entitled to vote generally in the election of
directors (considered for this purpose as one class).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Fourteenth: </B>- Meetings of the Directors may be held outside of the State of Delaware at
such places as may be from time to time designated by the Board, and the Directors may keep
the books of the Company outside of the State of Delaware at such places as may be from time
to time designated by them.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Fifteenth: </B>- (a) (1)&nbsp;In addition to any affirmative vote required by law, and
except as otherwise expressly provided in sections (b)&nbsp;and (c)&nbsp;of this Article
<B>Fifteenth:</B>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(A)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any merger or consolidation of the Corporation or any
Subsidiary (as hereinafter defined) with or into (i)&nbsp;any Interested Stockholder
(as hereinafter defined) or (ii)&nbsp;any other corporation (whether or not itself
an Interested Stockholder), which, after such merger or consolidation, would be
an Affiliate (as hereinafter defined) of an Interested Stockholder, or</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">7
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(B)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any sale, lease, exchange, mortgage, pledge, transfer or other
disposition (in one transaction or a series of related transactions) to or with
any Interested Stockholder or any Affiliate of any Interested Stockholder of
any assets of the Corporation or any Subsidiary having an aggregate fair market
value of $1,000,000 or more, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(C)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the issuance or transfer by the Corporation or any Subsidiary
(in one transaction or a series of related transactions) of any securities of
the Corporation or any Subsidiary to any Interested Stockholder or any
Affiliate of any Interested Stockholder in exchange for cash, securities or
other property (or a combination thereof) having an aggregate fair market value
of $1,000,000 or more, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(D)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the adoption of any plan or proposal for the liquidation or
dissolution of the Corporation, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(E)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any reclassification of securities (including any reverse stock
split), or recapitalization of the Corporation, or any merger or consolidation
of the Corporation with any of its Subsidiaries or any similar transaction
(whether or not with or into or otherwise involving an Interested Stockholder)
which has the effect, directly or indirectly, of increasing the proportionate
share of the outstanding shares of any class of equity or convertible
securities of the Corporation or any Subsidiary which is directly or indirectly
owned by any Interested Stockholder, or any Affiliate of any Interested
Stockholder,</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="margin-left: 3%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">shall require the affirmative vote of the holders of at least two-thirds of the
outstanding shares of capital stock of the Corporation entitled to vote generally in
the election of directors, considered for the purpose of this Article <B>Fifteenth </B>as
one class (&#147;Voting Shares&#148;). Such affirmative vote shall be required
notwithstanding the fact that no vote may be required, or that some lesser
percentage may be specified, by law or in any agreement with any national securities
exchange or otherwise.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The term &#147;business combination&#148; as used in this Article
<B>Fifteenth </B>shall mean any transaction which is referred to in any one or more of
clauses (A)&nbsp;through (E)&nbsp;of paragraph 1 of the section (a).</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The provisions of section (a)&nbsp;of this Article <B>Fifteenth </B>shall not be applicable to
any particular business combination and such business combination shall require only such
affirmative vote as is required by law and any other provisions of the Charter or Act of
Incorporation or By-Laws if such business combination has been approved by a majority of the
whole Board.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the purposes of this Article <B>Fifteenth</B>:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A &#147;person&#148; shall mean any individual, firm, corporation or other entity.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Interested Stockholder&#148; shall mean, in respect of any business
combination, any person (other than the Corporation or any Subsidiary) who or
which as of the record date for the determination of stockholders entitled to
notice of and to vote on such business combination, or immediately prior to the
consummation of any such transaction:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(A)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is the beneficial owner, directly or
indirectly, of more than 10% of the Voting Shares, or</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">8
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(B)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is an Affiliate of the Corporation and at any
time within two years prior thereto
was the beneficial owner, directly or indirectly, of not less than
10% of the then outstanding voting Shares, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(C)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is an assignee of or has otherwise succeeded in
any share of capital stock of the Corporation which were at any time
within two years prior thereto beneficially owned by any Interested
Stockholder, and such assignment or succession shall have occurred in
the course of a transaction or series of transactions not involving a
public offering within the meaning of the Securities Act of 1933.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A person shall be the &#147;beneficial owner&#148; of any Voting Shares:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(A)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>which such person or any of its Affiliates and
Associates (as hereafter defined) beneficially own, directly or
indirectly, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(B)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>which such person or any of its Affiliates or
Associates has (i)&nbsp;the right to acquire (whether such right is
exercisable immediately or only after the passage of time), pursuant to
any agreement, arrangement or understanding or upon the exercise of
conversion rights, exchange rights, warrants or options, or otherwise,
or (ii)&nbsp;the right to vote pursuant to any agreement, arrangement or
understanding, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(C)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>which are beneficially owned, directly or
indirectly, by any other person with which such first mentioned person
or any of its Affiliates or Associates has any agreement, arrangement
or understanding for the purpose of acquiring, holding, voting or
disposing of any shares of capital stock of the Corporation.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The outstanding Voting Shares shall include shares deemed owned
through application of paragraph (3)&nbsp;above but shall not include any other
Voting Shares which may be issuable pursuant to any agreement, or upon exercise
of conversion rights, warrants or options or otherwise.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Affiliate&#148; and &#147;Associate&#148; shall have the respective meanings
given those terms in Rule&nbsp;12b-2 of the General Rules and Regulations under the
Securities Exchange Act of 1934, as in effect on December&nbsp;31, 1981.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Subsidiary&#148; shall mean any corporation of which a majority of
any class of equity security (as defined in Rule&nbsp;3a11-1 of the General Rules
and Regulations under the Securities Exchange Act of 1934, as in effect on
December&nbsp;31, 1981) is owned, directly or indirectly, by the Corporation;
provided, however, that for the purposes of the definition of Investment
Stockholder set forth in paragraph (2)&nbsp;of this section (c), the term
&#147;Subsidiary&#148; shall mean only a corporation of which a majority of each class of
equity security is owned, directly or indirectly, by the Corporation.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) majority of the directors shall have the power and duty to determine for the
purposes of this Article <B>Fifteenth </B>on the basis of information known to them, (1)&nbsp;the number
of Voting Shares beneficially owned by any person (2)&nbsp;whether a person is an Affiliate or
Associate of another, (3)&nbsp;whether a person has an agreement, arrangement or understanding
with another as to the matters referred to in paragraph (3)&nbsp;of section (c), or (4)&nbsp;whether
the assets subject to any business combination or the consideration received for the
issuance or transfer of securities by the Corporation, or any Subsidiary has an aggregate
fair market value of $1,000,000 or more.
</DIV>

<P align="center" style="font-size: 10pt">9
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Nothing contained in this Article <B>Fifteenth </B>shall be construed to relieve any
Interested Stockholder from any fiduciary obligation imposed by law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Sixteenth: </B>Notwithstanding any other provision of this Charter or Act of
Incorporation or the By-Laws of the Corporation (and in addition to any other vote that may
be required by law, this Charter or Act of Incorporation by the By-Laws), the affirmative
vote of the holders of at least two-thirds of the outstanding shares of the capital stock of
the Corporation entitled to vote generally in the election of directors (considered for this
purpose as one class) shall be required to amend, alter or repeal any provision of Articles
<B>Fifth, Thirteenth, Fifteenth </B>or <B>Sixteenth </B>of this Charter or Act of Incorporation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Seventeenth:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a Director of this Corporation shall not be liable to the Corporation or its
stockholders for monetary damages for breach of fiduciary duty as a Director, except to the
extent such exemption from liability or limitation thereof is not permitted under the
Delaware General Corporation Laws as the same exists or may hereafter be amended.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any repeal or modification of the foregoing paragraph shall not adversely affect
any right or protection of a Director of the Corporation existing hereunder with respect to
any act or omission occurring prior to the time of such repeal or modification.&#148;
</DIV>


<P align="center" style="font-size: 10pt">10
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT 4</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BY-LAWS</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WILMINGTON TRUST COMPANY</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WILMINGTON, DELAWARE</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>As existing on December&nbsp;16, 2004</B>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BY-LAWS OF WILMINGTON TRUST COMPANY</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>ARTICLE 1</B><BR>
<U><B>Stockholders&#146; Meetings</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Annual Meeting</U>. The annual meeting of stockholders shall be held on the
third Thursday in April each year at the principal office at the Company or at such other date,
time or place as may be designated by resolution by the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Special Meetings</U>. Special meetings of stockholders may be called at any
time by the Board of Directors, the Chairman of the Board, the Chief Executive Officer or the
President.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Notice</U>. Notice of all meetings of the stockholders shall be given by
mailing to each stockholder at least ten (10)&nbsp;days before said meeting, at his last known address,
a written or printed notice fixing the time and place of such meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Quorum</U>. A majority in the amount of the capital stock of the Company
issued and outstanding on the record date, as herein determined, shall constitute a quorum at all
meetings of stockholders for the transaction of any business, but the holders of a smaller number
of shares may adjourn from time to time, without further notice, until a quorum is secured. At
each annual or special meeting of stockholders, each stockholder shall be entitled to one vote,
either in person or by proxy, for each share of stock registered in the stockholder&#146;s name on the
books of the Company on the record date for any such meeting as determined herein.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 2</B><BR>
<U><B>Directors</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Management</U>. The affairs and business of the Company shall be managed by
or under the direction of the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Number</U>. The authorized number of directors that shall constitute the
Board of Directors shall be fixed from time to time by or pursuant to a resolution passed by a
majority of the Board of Directors within the parameters set by the Charter of the Company. No more
than two directors may also be employees of the Company or any affiliate thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Qualification</U>. In addition to any other provisions of these Bylaws, to be
qualified for nomination for election or appointment to the Board of Directors, a person must have
not attained the age of sixty-nine years at the time of such election or appointment, provided
however, the Nominating and Corporate Governance Committee may waive such qualification as to a
particular candidate otherwise qualified to serve as a director upon a good faith determination by
such committee that such a waiver is in the best interests of the Company and its stockholders.
The Chairman of the Board and the Chief Executive Officer shall not be qualified to continue to
serve as directors upon the termination of their service in those offices for any reason.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Meetings</U>. The Board of Directors shall meet at the principal office of
the Company or elsewhere in its discretion at such times to be determined by a majority of its
members, or at the call of the Chairman of the Board of Directors, the Chief Executive Officer or
the President.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Special Meetings</U>. Special meetings of the Board of Directors may be
called at any time by the Chairman of the Board, the Chief Executive Officer or the President, and
shall be called upon the written request of a majority of the directors.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>Quorum</U>. A majority of the directors elected and qualified shall be
necessary to constitute a quorum for the transaction of business at any meeting of the Board of
Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <U>Notice</U>. Written notice shall be sent by mail to each director of any
special meeting of the Board of Directors, and of any change in the time or place of any regular
meeting, stating the time and place of such meeting, which shall be mailed not less than two days
before the time of holding such meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8. <U>Vacancies</U>. In the event of the death, resignation, removal, inability to
act or disqualification of any director, the Board of Directors, although less than a quorum, shall
have the right to elect the successor who shall hold office for the remainder of the full term of
the class of directors in which the vacancy occurred, and until such director&#146;s successor shall
have been duly elected and qualified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9. <U>Organization Meeting</U>. The Board of Directors at its first meeting after
its election by the stockholders shall appoint an Audit Committee, a Compensation Committee and a
Nominating and Corporate Governance Committee, and shall elect from its own members a Chairman of
the Board, a Chief Executive Officer and a President, who may be the same person. The Board of
Directors shall also elect at such meeting a Secretary and a Chief Financial Officer, who may be
the same person, and may appoint at any time such committees as it may deem advisable. The Board
of Directors may also elect at such meeting one or more Associate Directors. The Board of
Directors, or a committee designated by the Board of Directors may elect or appoint such other
officers as they may deem advisable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10. <U>Removal</U>. The Board of Directors may at any time remove, with or without
cause, any member of any committee appointed by it or any associate director or officer elected by
it and may appoint or elect his successor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11. <U>Responsibility of Officers</U>. The Board of Directors may designate an
officer to be in charge of such departments or divisions of the Company as it may deem advisable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;12. <U>Participation in Meetings</U>. The Board of Directors or any committee of
the Board of Directors may participate in a meeting of the Board of Directors or such committee, as
the case may be, by conference telephone, video facilities or other communications equipment. Any
action required or permitted to be taken at any meeting of the Board of Directors or any committee
thereof may be taken without a meeting if all of the members of the Board of Directors or the
committee, as the case may be, consent thereto in writing, and the writing or writings are filed
with the minutes of the Board of Directors or such committee.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 3</B><BR>
<U><B>Committees of the Board of Directors</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Audit Committee.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;The Audit Committee shall be composed of not more than five (5)&nbsp;members, who shall be
selected by the Board of Directors from its own members, none of whom shall be an officer or
employee of the Company, and shall hold office at the pleasure of the Board.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;The Audit Committee shall have general supervision over the Audit Services Division in all
matters however subject to the approval of the Board of Directors; it shall consider all matters
brought to its attention by the officer in charge of the Audit Services Division, review all
reports of examination of the Company made by any governmental agency or such independent auditor
employed for that purpose, and make such recommendations to the Board of Directors with respect
thereto or with respect to any other matters pertaining to auditing the Company as it shall deem
desirable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;The Audit Committee shall meet whenever and wherever its Chairperson, the Chairman of the
Board, the Chief Executive Officer, the President or a majority of the Committee&#146;s members shall
deem it to be proper
</DIV>



<P align="center" style="font-size: 10pt">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">for the transaction of its business. A majority of the Committee&#146;s members shall constitute a
quorum for the transaction of business. The acts of the majority at a meeting at which a quorum is
present shall constitute action by the Committee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Compensation Committee.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;The Compensation Committee shall be composed of not more than five (5)&nbsp;members, who shall
be selected by the Board of Directors from its own members, none of whom shall be an officer or
employee of the Company, and shall hold office at the pleasure of the Board of Directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;The Compensation Committee shall in general advise upon all matters of policy concerning
compensation, including salaries and employee benefits.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;The Compensation Committee shall meet whenever and wherever its Chairperson, the Chairman
of the Board, the Chief Executive Officer, the President or a majority of the Committee&#146;s members
shall deem it to be proper for the transaction of its business. A majority of the Committee&#146;s
members shall constitute a quorum for the transaction of business. The acts of the majority at a
meeting at which a quorum is present shall constitute action by the Committee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Nominating and Corporate Governance Committee.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;The Nominating and Corporate Governance Committee shall be composed of not more than five
members, who shall be selected by the Board of Directors from its own members, none of whom shall
be an officer or employee of the Company, and shall hold office at the pleasure of the Board of
Directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;The Nominating and Corporate Governance Committee shall provide counsel and make
recommendations to the Chairman of the Board and the full Board with respect to the performance of
the Chairman of the Board and the Chief Executive Officer, candidates for membership on the Board
of Directors and its committees, matters of corporate governance, succession planning for the
Company&#146;s executive management and significant shareholder relations issues.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;The Nominating and Corporate Governance Committee shall meet whenever and wherever its
Chairperson, the Chairman of the Board, the Chief Executive Officer, the President, or a majority
of the Committee&#146;s members shall deem it to be proper for the transaction of its business. A
majority of the Committee&#146;s members shall constitute a quorum for the transaction of business. The
acts of the majority at a meeting at which a quorum is present shall constitute action by the
Committee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Other Committees</U>. The Company may have such other committees with such
powers as the Board may designate from time to time by resolution or by an amendment to these
Bylaws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Associate Directors.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;Any person who has served as a director may be elected by the Board of Directors as an
associate director, to serve at the pleasure of the Board of Directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;Associate directors shall be entitled to attend all meetings of directors and participate
in the discussion of all matters brought to the Board of Directors, but will not have a right to
vote.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>Absence or Disqualification of Any Member of a Committee.</U> In the absence
or disqualification of any member of any committee created under Article&nbsp;III of these Bylaws, the
member or members thereof present at any meeting and not disqualified from voting, whether or not
he or they constitute a quorum, may unanimously appoint another member of the Board of Directors to
act at the meeting in the place of any such absent or disqualified member.
</DIV>

<P align="center" style="font-size: 10pt">3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 4</B><BR>
<U><B>Officers</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Chairman of the Board</U>. The Chairman of the Board shall preside at all
meetings of the Board of Directors and shall have such further authority and powers and shall
perform such duties the Board of Directors may assign to him from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Chief Executive Officer</U>. The Chief Executive Officer shall have the
powers and duties pertaining to the office of Chief Executive Officer conferred or imposed upon him
by statute, incident to his office or as the Board of Directors may assign to him from time to
time. In the absence of the Chairman of the Board, the Chief Executive Officer shall have the
powers and duties of the Chairman of the Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>President</U>. The President shall have the powers and duties pertaining to
the office of the President conferred or imposed upon him by statute, incident to his office or as
the Board of Directors may assign to him from time to time. In the absence of the Chairman of the
Board and the Chief Executive Officer, the President shall have the powers and duties of the
Chairman of the Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Duties</U>. The Chairman of the Board, the Chief Executive Officer or the
President, as designated by the Board of Directors, shall carry into effect all legal directions of
the Board of Directors and shall at all times exercise general supervision over the interest,
affairs and operations of the Company and perform all duties incident to his office.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Vice Presidents</U>. There may be one or more Vice Presidents, however
denominated by the Board of Directors, who may at any time perform all of the duties of the
Chairman of the Board, the Chief Executive Officer and/or the President and such other powers and
duties incident to their respective offices or as the Board of Directors, the Chairman of the
Board, the Chief Executive Officer or the President or the officer in charge of the department or
division to which they are assigned may assign to them from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>Secretary</U>. The Secretary shall attend to the giving of notice of meetings
of the stockholders and the Board of Directors, as well as the committees thereof, to the keeping
of accurate minutes of all such meetings, recording the same in the minute books of the Company and
in general notifying the Board of Directors of material matters affecting the Company on a timely
basis. In addition to the other notice requirements of these Bylaws and as may be practicable
under the circumstances, all such notices shall be in writing and mailed well in advance of the
scheduled date of any such meeting. He shall have custody of the corporate seal, affix the same to
any documents requiring such corporate seal, attest the same and perform other duties incident to
his office.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <U>Chief Financial Officer</U>. The Chief Financial Officer shall have general
supervision over all assets and liabilities of the Company. He shall be custodian of and
responsible for all monies, funds and valuables of the Company and for the keeping of proper
records of the evidence of property or indebtedness and of all transactions of the Company. He
shall have general supervision of the expenditures of the Company and periodically shall report to
the Board of Directors the condition of the Company, and perform such other duties incident to his
office or as the Board of Directors, the Chairman of the Board, the Chief Executive Officer or the
President may assign to him from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8. <U>Controller</U>. There may be a Controller who shall exercise general
supervision over the internal operations of the Company, including accounting, and shall render to
the Board of Directors or the Audit Committee at appropriate times a report relating to the general
condition and internal operations of the Company and perform other duties incident to his office.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There may be one or more subordinate accounting or controller officers however denominated,
who may perform the duties of the Controller and such duties as may be prescribed by the
Controller.
</DIV>

<P align="center" style="font-size: 10pt">4
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9. <U>Audit Officers</U>. The officer designated by the Board of Directors to be in
charge of the Audit Services Division of the Company, with such title as the Board of Directors
shall prescribe, shall report to and be directly responsible to the Audit Committee and the Board
of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There shall be an Auditor and there may be one or more Audit Officers, however denominated,
who may perform all the duties of the Auditor and such duties as may be prescribed by the officer
in charge of the Audit Services Division.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10. <U>Other Officers</U>. There may be one or more officers, subordinate in rank
to all Vice Presidents with such functional titles as shall be determined from time to time by the
Board of Directors, who shall ex officio hold the office of Assistant Secretary of the Company and
who may perform such duties as may be prescribed by the officer in charge of the department or
division to which they are assigned.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11. <U>Powers and Duties of Other Officers</U>. The powers and duties of all other
officers of the Company shall be those usually pertaining to their respective offices, subject to
the direction of the Board of Directors, the Chairman of the Board, the Chief Executive Officer or
the President and the officer in charge of the department or division to which they are assigned.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;12. <U>Number of Offices</U>. Any one or more offices of the Company may be held by
the same person, except that (A)&nbsp;no individual may hold more than one of the offices of Chief
Financial Officer, Controller or Audit Officer and (B)&nbsp;none of the Chairman of the Board, the Chief
Executive Officer or the President may hold any office mentioned in Section&nbsp;12(A).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 5</B><BR>
<U><B>Stock and Stock Certificates</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Transfer</U>. Shares of stock shall be transferable on the books of the
Company and a transfer book shall be kept in which all transfers of stock shall be recorded.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Certificates</U>. Every holder of stock shall be entitled to have a
certificate signed by or in the name of the Company by the Chairman of the Board, the Chief
Executive Officer or the President or a Vice President, and by the Secretary or an Assistant
Secretary, of the Company, certifying the number of shares owned by him in the Company. The
corporate seal affixed thereto, and any of or all the signatures on the certificate, may be a
facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile
signature has been placed upon a certificate shall have ceased to be such officer, transfer agent
or registrar before such certificate is issued, it may be issued by the Company with the same
effect as if he were such officer, transfer agent or registrar at the date of issue. Duplicate
certificates of stock shall be issued only upon giving such security as may be satisfactory to the
Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Record Date</U>. The Board of Directors is authorized to fix in advance a
record date for the determination of the stockholders entitled to notice of, and to vote at, any
meeting of stockholders and any adjournment thereof, or entitled to receive payment of any
dividend, or to any allotment of rights, or to exercise any rights in respect of any change,
conversion or exchange of capital stock, or in connection with obtaining the consent of
stockholders for any purpose, which record date shall not be more than 60 nor less than 10&nbsp;days
preceding the date of any meeting of stockholders or the date for the payment of any dividend, or
the date for the allotment of rights, or the date when any change or conversion or exchange of
capital stock shall go into effect, or a date in connection with obtaining such consent.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 6</B><BR>
<U><B>Seal</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The corporate seal of the Company shall be in the following form:
</DIV>

<P align="center" style="font-size: 10pt">5
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="margin-left: 8%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Between two concentric circles the words &#147;Wilmington Trust Company&#148;
within the inner circle the words &#147;Wilmington, Delaware.&#148;</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 7</B><BR>
<U><B>Fiscal Year</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fiscal year of the Company shall be the calendar year.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 8</B><BR>
<U><B>Execution of Instruments of the Company</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Chairman of the Board, the Chief Executive Officer, the President or any Vice President,
however denominated by the Board of Directors, shall have full power and authority to enter into,
make, sign, execute, acknowledge and/or deliver and the Secretary or any Assistant Secretary shall
have full power and authority to attest and affix the corporate seal of the Company to any and all
deeds, conveyances, assignments, releases, contracts, agreements, bonds, notes, mortgages and all
other instruments incident to the business of this Company or in acting as executor, administrator,
guardian, trustee, agent or in any other fiduciary or representative capacity by any and every
method of appointment or by whatever person, corporation, court officer or authority in the State
of Delaware, or elsewhere, without any specific authority, ratification, approval or confirmation
by the Board of Directors, and any and all such instruments shall have the same force and validity
as though expressly authorized by the Board of Directors.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 9</B><BR>
<U><B>Compensation of Directors and Members of Committees</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors and associate directors of the Company, other than salaried officers of the Company,
shall be paid such reasonable honoraria or fees for attending meetings of the Board of Directors as
the Board of Directors may from time to time determine. Directors and associate directors who
serve as members of committees, other than salaried employees of the Company, shall be paid such
reasonable honoraria or fees for services as members of committees as the Board of Directors shall
from time to time determine and directors and associate directors may be authorized by the Company
to perform such special services as the Board of Directors may from time to time determine in
accordance with any guidelines the Board of Directors may adopt for such services, and shall be
paid for such special services so performed reasonable compensation as may be determined by the
Board of Directors.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 10</B><BR>
<U><B>Indemnification</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Persons Covered</U>. The Company shall indemnify and hold harmless, to the
fullest extent permitted by applicable law as it presently exists or may hereafter be amended, any
person who was or is made or is threatened to be made a party or is otherwise involved in any
action, suit or proceeding, whether civil, criminal, administrative or investigative (a
&#147;proceeding&#148;) by reason of the fact that he, or a person for whom he is the legal representative,
is or was a director or associate director of the Company, a member of an advisory board the Board
of Directors of the Company or any of its subsidiaries may appoint from time to time or is or was
serving at the request of the Company as a director, officer, employee, fiduciary or agent of
another corporation, partnership, limited liability company, joint venture, trust, enterprise or
non-profit entity that is not a subsidiary or affiliate of the Company, including service with
respect to employee benefit plans, against all liability and loss suffered and expenses reasonably
incurred by such person. The Company shall be required to indemnify such a person in connection
with a proceeding initiated by such person only if the proceeding was authorized by the Board of
Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company may indemnify and hold harmless, to the fullest extent permitted by applicable law
as it presently exists or may hereafter be amended, any person who was or is made or threatened to
be made a party or is otherwise
</DIV>

<P align="center" style="font-size: 10pt">6
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">involved in any proceeding by reason of the fact that he, or a person for whom he is the legal
representative, is or was an officer, employee or agent of the Company or a director, officer,
employee or agent of a subsidiary or affiliate of the Company, against all liability and loss
suffered and expenses reasonably incurred by such person. The Company may indemnify any such
person in connection with a proceeding (or part thereof) initiated by such person only if such
proceeding (or part thereof) was authorized by the Board of Directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Advance of Expenses</U>. The Company shall pay the expenses incurred in
defending any proceeding involving a person who is or may be indemnified pursuant to Section&nbsp;1 in
advance of its final disposition, provided, however, that the payment of expenses incurred by such
a person in advance of the final disposition of the proceeding shall be made only upon receipt of
an undertaking by that person to repay all amounts advanced if it should be ultimately determined
that the person is not entitled to be indemnified under this Article&nbsp;10 or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Certain Rights</U>. If a claim under this Article&nbsp;10 for (A)&nbsp;payment of
expenses or (B)&nbsp;indemnification by a director, associate director, member of an advisory board the
Board of Directors of the Company or any of its subsidiaries may appoint from time to time or a
person who is or was serving at the request of the Company as a director, officer, employee,
fiduciary or agent of another corporation, partnership, limited liability company, joint venture,
trust, enterprise or nonprofit entity that is not a subsidiary or affiliate of the Company,
including service with respect to employee benefit plans, is not paid in full within sixty days
after a written claim therefor has been received by the Company, the claimant may file suit to
recover the unpaid amount of such claim and, if successful in whole or in part, shall be entitled
to be paid the expense of prosecuting such claim. In any such action, the Company shall have the
burden of proving that the claimant was not entitled to the requested indemnification or payment of
expenses under applicable law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Non-Exclusive</U>. The rights conferred on any person by this Article&nbsp;10
shall not be exclusive of any other rights which such person may have or hereafter acquire under
any statute, provision of the Charter or Act of Incorporation, these Bylaws, agreement, vote of
stockholders or disinterested directors or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Reduction of Amount</U>. The Company&#146;s obligation, if any, to indemnify any
person who was or is serving at its request as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust, enterprise or nonprofit entity shall be reduced by
any amount such person may collect as indemnification from such other corporation, partnership,
joint venture, trust, enterprise or nonprofit entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>Effect of Modification</U>. Any amendment, repeal or modification of the
foregoing provisions of this Article&nbsp;10 shall not adversely affect any right or protection
hereunder of any person in respect of any act or omission occurring prior to the time of such
amendment, repeal or modification.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 11</B><BR>
<U><B>Amendments to the Bylaws</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These Bylaws may be altered, amended or repealed, in whole or in part, and any new Bylaw or
Bylaws adopted at any regular or special meeting of the Board of Directors by a vote of a majority
of all the members of the Board of Directors then in office.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 12</B><BR>
<U><B>Miscellaneous</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whenever used in these Bylaws, the singular shall include the plural, the plural shall include
the singular unless the context requires otherwise and the use of either gender shall include both
genders.
</DIV>


<P align="center" style="font-size: 10pt">7
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT 6</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;321(b) Consent</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to Section 321(b) of the Trust Indenture Act of 1939, as amended, Wilmington Trust
Company hereby consents that reports of examinations by Federal, State, Territorial or District
authorities may be furnished by such authorities to the Securities and Exchange Commission upon
request therefor.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>WILMINGTON TRUST COMPANY</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dated: November&nbsp;22. 2005
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Denise M. Geran</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Name: Denise M. Geran</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Title: Vice President</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT 7</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>NOTICE</B>
</DIV>


<DIV align="left" style="margin-left: 6%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">This form is intended to assist state nonmember banks and savings
banks with state publication requirements. It has not been approved
by any state banking authorities. Refer to your appropriate state
banking authorities for your state publication requirements.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>R E P O R T O F C O N D I T I O N</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Consolidating domestic subsidiaries of the
</DIV>

<DIV align="left">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="60%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">WILMINGTON TRUST COMPANY
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">of
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">WILMINGTON</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name of Bank
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">City</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">in the State of <U> DELAWARE </U>, at the close of business on September&nbsp;30, 2005.
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Thousands of dollars</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>ASSETS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>    <TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and balances due from depository institutions:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Noninterest-bearing balances and currency and coins</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">246,525</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest-bearing balances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Held-to-maturity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,472</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Available-for-sale securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,587,116</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal funds sold in domestic offices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">385,754</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities purchased under agreements to resell</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,385</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans and lease financing receivables:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loans and leases held for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loans and leases, net of unearned income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,695,164</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">LESS: Allowance for loan and lease losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,852</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loans and leases, net of unearned income, allowance, and reserve</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,611,312</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets held in trading accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Premises and fixed assets (including capitalized leases)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">136,049</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other real estate owned</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">199</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments in unconsolidated subsidiaries and associated companies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,550</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Customers&#146; liability to this bank on acceptances outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Intangible assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">a. Goodwill</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,116</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">b. Other intangible assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,628</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196,569</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,242,675</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">CONTINUED ON NEXT PAGE
</DIV>



<P align="center" style="font-size: 10pt">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Thousands of dollars</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>LIABILITIES</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deposits:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">In domestic offices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,392,517</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Noninterest-bearing </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,054,682</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest-bearing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,337,835</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal funds purchased in domestic offices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">246,375</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities sold under agreements to repurchase</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">354,404</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Trading liabilities (from Schedule&nbsp;RC-D)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other borrowed money (includes mortgage indebtedness and obligations under capitalized leases:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">378,739</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank&#146;s liability on acceptances executed and outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Subordinated notes and debentures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other liabilities (from Schedule&nbsp;RC-G)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144,486</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,516,521</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>EQUITY CAPITAL</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Perpetual preferred stock and related surplus</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Surplus (exclude all surplus related to preferred stock)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112,358</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">a. Retained earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">647,388</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">b. Accumulated other comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(34,092</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total equity capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">726,154</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total liabilities, limited-life preferred stock, and equity capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,242,675</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">3
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>12
<FILENAME>y09849a1exv99w1.htm
<DESCRIPTION>EX-99.1: LETTER OF TRANSMITTAL
<TEXT>
<HTML>
<HEAD>
<TITLE>EXHIBIT 99.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="right">
    <B>Exhibit&nbsp;99.1</B></TD>
</TR>

</TABLE>


<DIV align="center" style="font-size: 16pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>LETTER OF TRANSMITTAL</B>
</DIV>

<DIV align="center" style="font-size: 16pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AMERICAN REAL ESTATE PARTNERS, L.P.</B>
</DIV>

<DIV align="center" style="font-size: 16pt;">
<B>AMERICAN REAL ESTATE FINANCE CORP.</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>OFFER TO EXCHANGE ALL OUTSTANDING</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>$480,000,000 AGGREGATE PRINCIPAL AMOUNT OF</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
SENIOR NOTES&nbsp;DUE 2013</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>IN EXCHANGE FOR</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>$480,000,000 AGGREGATE PRINCIPAL AMOUNT OF</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
SENIOR NOTES&nbsp;DUE 2013</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>WHICH HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>PURSUANT TO THE PROSPECTUS DATED
DECEMBER&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2005</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 21pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">

</DIV>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="left" style="font-size: 12pt;">
<B>THE EXCHANGE OFFER WILL EXPIRE AT 5:00&nbsp;P.M., NEW YORK
CITY TIME, ON JANUARY&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006 UNLESS EXTENDED BY THE COMPANY (THE &#147;EXPIRATION
DATE&#148;). PRIVATE NOTES TENDERED PURSUANT TO THE EXCHANGE
OFFER MAY BE WITHDRAWN AT ANY TIME BEFORE THE EXPIRATION
DATE.</B>
</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>The Exchange Agent for the Exchange Offer is:</I>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Wilmington Trust Company</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="32%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <I>By Certified or Registered Mail:<BR>
    <BR>
    </I>Wilmington Trust Company<BR>
    DC-1626 Processing Unit<BR>
    P.O. Box&nbsp;8861<BR>
    Wilmington, DE 19899-8861</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I>By Overnight Courier or Hand:<BR>
    <BR>
    </I>Wilmington Trust Company<BR>
    Corporate Capital Markets<BR>
    1100 North Market Street<BR>
    Wilmington, DE 19890-1626</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I>By Facsimile Transmission:<BR>
    <BR>
    </I>(302) 636-4139<BR>
     <I>Attention: </I>Exchanges<BR>
     <I>Confirm by Telephone:<BR>
    </I>(302) 636-6470<BR>
     <I>For Information Call:<BR>
    </I>(302) 636-6470</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Delivery of this letter of transmittal to an address other
than as set forth above, or transmission of instructions via
facsimile other than as set forth above, does not constitute a
valid delivery to the exchange agent.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned acknowledges that the undersigned has received
the Prospectus dated
December&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2005 (as amended
or supplemented from time to time, the &#147;Prospectus&#148;),
of American Real Estate Partners, L.P., a Delaware limited
partnership (&#147;AREP&#148;), and American Real Estate Finance
Corp., a Delaware corporation (&#147;AREP Finance,&#148; and
together with AREP, the &#147;Company&#148;), and this Letter of
Transmittal (as amended or supplemented from time to time, the
&#147;Letter of Transmittal&#148;), which together constitute
the Company&#146;s offer (the &#147;Exchange Offer&#148;) to
exchange up to $480,000,000 aggregate principal amount of
7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;Senior
Notes due 2013 (the &#147;New Notes&#148;) of the Company, for
an equal principal amount of the Company&#146;s issued and
outstanding
7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;Senior
Notes due 2013 (the &#147;Private Notes&#148;). The terms of the
New Notes are substantially identical to those of the Private
Notes, except that (1)&nbsp;the New Notes will be registered
under the Securities Act of 1933, as amended (the
&#147;Securities Act&#148;), (2)&nbsp;the transfer restrictions
and registration rights relating to the Private Notes will not
apply to the New Notes and (3)&nbsp;the New Notes will not
provide for the payment of liquidated damages under
circumstances related to the timing and completion of the
Exchange Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of New Notes will not be entitled to certain rights of
holders of the Private Notes under the Registration Rights
Agreement, dated as of February&nbsp;7, 2005, among the Company,
American Real Estate Holdings Limited
</DIV>

<P align="center" style="font-size: 10pt;">
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt;">
Partnership, a Delaware limited partnership, and Bear,
Stearns&nbsp;&#38; Co. Inc., as initial purchaser (the
&#147;Registration Rights Agreement&#148;), which rights will be
terminated upon consummation of the Exchange Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>THE INSTRUCTIONS CONTAINED HEREIN SHOULD BE READ CAREFULLY
BEFORE THIS LETTER OF TRANSMITTAL IS COMPLETED.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Capitalized terms used but not defined herein have the meanings
given to such terms in the Prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This Letter of Transmittal is to be completed by holders of
Private Notes (a)&nbsp;if Private Notes are to be forwarded
herewith or (b)&nbsp;if tenders of Private Notes are to be made
by book-entry transfer to an account maintained by Wilmington
Trust Company (the &#147;Exchange Agent&#148;) at The Depository
Trust Company (&#147;DTC&#148; or &#147;Book-Entry Transfer
Facility&#148;) pursuant to the procedures set forth in the
Prospectus under &#147;The Exchange Offer&nbsp;&#151; Procedures
for Tendering.&#148; Delivery of this Letter of Transmittal and
any other required documents should be made to the Exchange
Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a holder desires to tender Private Notes pursuant to the
Exchange Offer but the Private Notes are not immediately
available, or time will not permit this Letter of Transmittal,
the certificates representing Private Notes or other required
documents to reach the Exchange Agent on or before the
Expiration Date, or the procedure for book-entry transfer cannot
be completed on a timely basis, such holder may effect a tender
of such Private Notes in accordance with the guaranteed delivery
procedures set forth in the Prospectus under &#147;The Exchange
Offer&nbsp;&#151; Guaranteed Delivery Procedures.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>DELIVERY OF DOCUMENTS TO THE BOOK-ENTRY TRANSFER FACILITY
DOES NOT CONSTITUTE DELIVERY TO THE EXCHANGE AGENT.</B>
</DIV>

<P align="center" style="font-size: 10pt;">2

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>NOTE: SIGNATURES MUST BE PROVIDED BELOW.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned has completed the appropriate boxes below and
signed this Letter of Transmittal to indicate the action the
undersigned desires to take with respect to the Exchange Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
List below the Private Notes to which the Letter of Transmittal
relates. If the space provided below is inadequate, the
certificate numbers and principal amount of Private Notes should
be listed on a separate schedule affixed hereto.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="37%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="7" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="7" align="center" nowrap><B>DESCRIPTION OF PRIVATE NOTES</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="7" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD align="center" nowrap><B>Name(s) and Address(es) of Registered Holder(s)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>(3)</B></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD align="center" nowrap><B>(Please fill in, if blank)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Certificate</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Aggregate</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Principal Amount</B></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Number(s)*</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>of Private Notes</B></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Amount of</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Tendered</B></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Private Notes</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>(if less than</B></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>all)**</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="7" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="7" align="left" valign="top">
    *&nbsp;Need not be completed if Private Notes are being tendered
    by book-entry holders.</TD>
</TR>

<TR>
    <TD colspan="7" align="left" valign="top">
    **&nbsp;Private Notes may be tendered in whole or in part in
    integral multiples of $1,000. Unless this column is completed, a
    holder will be deemed to have tendered the full aggregate
    principal amount of the Private Notes represented by the Private
    Notes indicated in column 2.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="7" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">3

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
(BOXES BELOW TO BE CHECKED BY ELIGIBLE INSTITUTIONS ONLY)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">

</DIV>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT face="wingdings">&#111;</FONT>&nbsp;</TD>
    <TD align="left">
    <B>CHECK HERE IF TENDERED PRIVATE NOTES&nbsp;ARE BEING DELIVERED
    BY BOOK-ENTRY TRANSFER MADE TO THE ACCOUNT MAINTAINED BY THE
    EXCHANGE AGENT WITH DTC AND COMPLETE THE FOLLOWING</B>:</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Name of Tendering
Institution:&nbsp;____________________________________________________________________________&nbsp;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Account
Number:&nbsp;________________________________________________________________________________&nbsp;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Transaction Code
Number:&nbsp;________________________________________________________________________________&nbsp;
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT face="wingdings">&#111;</FONT>&nbsp;</TD>
    <TD align="left">
    <B>CHECK HERE AND ENCLOSE A PHOTOCOPY OF THE NOTICE OF
    GUARANTEED DELIVERY IF TENDERED PRIVATE NOTES&nbsp;ARE BEING
    DELIVERED PURSUANT TO A NOTICE OF GUARANTEED DELIVERY PREVIOUSLY
    SENT TO THE EXCHANGE AGENT AND COMPLETE THE FOLLOWING:</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Name(s) of Registered
Holder(s):&nbsp;________________________________________________________________________________&nbsp;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Window Ticket Number (if
any):&nbsp;________________________________________________________________________________&nbsp;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Name of Eligible Institution that Guaranteed
Delivery:&nbsp;____________________________________________________________&nbsp;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Date of Execution of Notice of Guaranteed
Delivery:&nbsp;____________________________________________________________&nbsp;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
If Guaranteed Delivery is to be made by Book-Entry Transfer:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Name of Tendering
Institution:&nbsp;________________________________________________________________________________&nbsp;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
DTC Account
Number:&nbsp;________________________________________________________________________________&nbsp;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Transaction Code
Number:&nbsp;________________________________________________________________________________&nbsp;
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT face="wingdings">&#111;</FONT>&nbsp;</TD>
    <TD align="left">
    <B>CHECK HERE IF TENDERED BY BOOK-ENTRY TRANSFER AND
    NON-EXCHANGED PRIVATE NOTES&nbsp;ARE TO BE RETURNED BY CREDITING
    DTC ACCOUNT NUMBER SET FORTH ABOVE.</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT face="wingdings">&#111;</FONT>&nbsp;</TD>
    <TD align="left">
    <B>CHECK HERE IF YOU ARE A BROKER-DEALER THAT ACQUIRED THE
    PRIVATE NOTES&nbsp;FOR ITS OWN ACCOUNT AS A RESULT OF
    MARKET-MAKING OR OTHER TRADING ACTIVITIES AND WISH TO RECEIVE 10
    ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY
    AMENDMENTS OR SUPPLEMENTS THERETO.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Name:&nbsp;________________________________________________________________________________&nbsp;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Address:&nbsp;________________________________________________________________________________&nbsp;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Area Code and Telephone
Number:&nbsp;________________________________________________________________________________&nbsp;
</DIV>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<P align="center" style="font-size: 10pt;">4

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Ladies and Gentlemen:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon the terms and subject to the conditions of the Exchange
Offer, the undersigned hereby tenders to the Company the
aggregate principal amount of Private Notes indicated above in
exchange for a like aggregate principal amount of New Notes.
Subject to, and effective upon, the acceptance for exchange of
the Private Notes tendered hereby, the undersigned hereby
exchanges, assigns and transfers to, or upon the order of, the
Company all right, title and interest in and to such Private
Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned hereby irrevocably constitutes and appoints the
Exchange Agent as the undersigned&#146;s true and lawful agent
and attorney-in-fact (with full knowledge that the Exchange
Agent also acts as the agent of the Company) with respect to the
tendered Private Notes with the full power of substitution (such
power of attorney being deemed to be an irrevocable power
coupled with an interest), to (i)&nbsp;deliver certificates for
such Private Notes to the Company and deliver all accompanying
evidences of transfer and authenticity to, or upon the order of,
the Company, (ii)&nbsp;present such Private Notes for transfer
on the books of the Company, and (iii)&nbsp;receive all benefits
and otherwise exercise all rights of beneficial ownership of
such Private Notes, all in accordance with the terms of the
Exchange Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned hereby represents and warrants that the
undersigned has full power and authority to tender, exchange,
assign and transfer the Private Notes tendered hereby and that,
when the same are accepted for exchange, the Company will
acquire good and unencumbered title thereto, free and clear of
all liens, restrictions, charges and encumbrances and not
subject to any adverse claims or proxies. The undersigned will,
upon request, execute and deliver any additional documents
deemed by the Exchange Agent or the Company to be necessary or
desirable to complete the exchange, assignment and transfer of
the Private Notes tendered hereby, and the undersigned will
comply with its obligations under the Registration Rights
Agreement. The undersigned has read and agreed to all of the
terms of the Exchange Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned agrees that acceptance of any tendered Private
Notes by the Company and the issuance of New Notes in exchange
for Private Notes will constitute performance in full by the
Company of its obligations under the Registration Rights
Agreement and that the Company will have no further obligations
or liabilities thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The name(s) and address(es) of the registered holders of the
Private Notes tendered hereby should be printed above, if they
are not already set forth above, as they appear on the Private
Notes. The certificate number(s) and the principal amount(s) of
the Private Notes that the undersigned wishes to tender should
be indicated in the appropriate boxes above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>The undersigned also acknowledges that this Exchange Offer is
being made in reliance on certain interpretive letters by the
staff of the Securities and Exchange Commission (the
&#147;SEC&#148;) to third parties in unrelated transactions. On
the basis thereof, the New Notes issued in exchange for the
Private Notes pursuant to the Exchange Offer may be offered for
resale, resold and otherwise transferred by holders of the New
Notes (other than any such holder that is an
&#147;affiliate&#148; of the Company within the meaning of
Rule&nbsp;405 under the Securities Act) without compliance with
the registration and prospectus delivery provisions of the
Securities Act, provided that such New Notes are acquired in the
ordinary course of such holders&#146; business and such holders
are not participating in, and have no arrangement or
understanding with any person to participate in, the
distribution of such New&nbsp;Notes.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>The undersigned acknowledges that any holder of Private Notes
using the Exchange Offer to participate in a distribution of the
New Notes (i)&nbsp;cannot rely on the position of the staff of
the SEC enunciated in its interpretive letters and
(ii)&nbsp;must comply with the registration and prospectus
delivery requirements of the Securities Act in connection with a
secondary resale transaction.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the undersigned is not a broker-dealer, the undersigned
represents that it is not engaged in, and does not intend to
engage in, a distribution of New Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the undersigned is a broker-dealer that will receive New
Notes for its own account in exchange for Private Notes that
were acquired as a result of market-making activities or other
trading activities, it acknowledges that it will deliver a
prospectus in connection with any resale of such New Notes;
however, by so acknowledging and by delivering a prospectus, the
undersigned will not be deemed to admit that it is an
&#147;underwriter&#148; within the meaning of the Securities Act.
</DIV>

<P align="center" style="font-size: 10pt;">5

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned represents that (i)&nbsp;it is not an affiliate
(as defined in Rule&nbsp;405 under the Securities Act) of the
Company; (ii)&nbsp;it is not a broker-dealer tendering Private
Notes acquired for its own account directly from the Company;
(iii)&nbsp;any New Notes to be received by it will be acquired
in the ordinary course of its business whether or not such
person is the holder; and (iv)&nbsp;it is not engaged in, and
does not intend to engage in, a distribution of such New Notes
and has no arrangement or understanding with any person to
participate in a distribution of Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a holder of Private Notes is engaged in or intends to engage
in a distribution of New Notes or has any arrangement or
understanding with respect to the distribution of New Notes to
be acquired pursuant to the Exchange Offer, such holder may not
rely on the applicable interpretations of the staff of the
Commission and must comply with the registration and prospectus
delivery requirements of the Securities Act in connection with
any secondary resale transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company agrees that, subject to the provisions of the
Registration Rights Agreement, the Prospectus may be used by a
Participating Broker-Dealer (as defined below) in connection
with resales of New Notes received in exchange for Private
Notes, where such Private Notes were acquired by such
Participating Broker-Dealer for its own account as a result of
market-making activities or other trading activities and has not
entered into any arrangement or understanding with the Company
or any &#147;affiliate&#148; of the Company (within the meaning
of Rule&nbsp;405 under the Securities Act) to distribute the New
Notes to be received in the Exchange Offer, for a period of time
of up to 270&nbsp;days after the date on which the exchange
offer is consummated or, if earlier, when all such New Notes
have been disposed of by such Participating Broker-Dealer. In
that regard, each broker-dealer who acquired Private Notes for
its own account as a result of market-making or other trading
activities (a &#147;Participating Broker-Dealer&#148;), by
tendering such Private Notes and executing this Letter of
Transmittal, agrees that, upon receipt of notice from the
Company of the occurrence of any event or the discovery of any
fact which makes any statement contained or incorporated by
reference in the Prospectus untrue in any material respect or
which causes the Prospectus to omit to state a material fact
necessary in order to make the statements contained or
incorporated by reference therein, in light of the circumstances
under which they were made, not misleading or of the occurrence
of certain other events specified in the Registration Rights
Agreement, such Participating Broker-Dealer will suspend the
sale of New Notes pursuant to the Prospectus until the Company
has amended or supplemented the Prospectus and has furnished
copies of the amended or supplemented Prospectus to the
Participating Broker-Dealer or the Company has given notice that
the sale of the New Notes may be resumed, as the case may be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned understands that tenders of the Private Notes
pursuant to any one of the procedures described under &#147;The
Exchange Offer&nbsp;&#151; Procedures for Tendering&#148; in the
Prospectus and in the instructions hereto will constitute a
binding agreement between the undersigned and the Company in
accordance with the terms and subject to the conditions set
forth herein and in the Prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned recognizes that under certain circumstances set
forth in the Prospectus under &#147;The Exchange
Offer&nbsp;&#151; Conditions&#148; the Company will not be
required to accept for exchange any of the Private Notes
tendered. Private Notes not accepted for exchange or withdrawn
will be returned to the undersigned at the address set forth
below unless otherwise indicated under &#147;Special Delivery
Instructions&#148; below (or, in the case of Private Notes
tendered by book-entry transfer, credited to an account
maintained by the tendering holder at DTC).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Unless otherwise indicated herein in the box entitled
&#147;Special Issuance Instructions&#148; below, the undersigned
hereby directs that the New Notes (and, if applicable, any
substitute certificates representing Private Notes not exchanged
or not accepted for exchange) be issued in the name(s) of the
undersigned and be delivered to the undersigned at the address,
or, in the case of book-entry transfer of Private Notes, be
credited to the account at DTC shown above in the box entitled
&#147;Description of Private Notes.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of the Private Notes whose Private Notes are accepted
for exchange will not receive accrued interest on such Private
Notes for any period from and after the last interest payment
date to which interest has been paid or duly provided for on
such Private Notes prior to the original issue date of the New
Notes or, if no such interest has been paid or duly provided
for, will not receive any accrued interest on such Private
Notes. The undersigned waives the right to receive any interest
on such Private Notes accrued from and after such interest
payment date or, if no such interest has been paid or duly
provided for, from and after the original issue date of the New
Notes. Interest on the New Notes will accrue from the last
interest payment date on which interest was paid on the Private
Notes surrendered in exchange for New Notes.
</DIV>

<P align="center" style="font-size: 10pt;">6

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned will, upon request, execute and deliver any
additional documents deemed by the Company to be necessary or
desirable to complete the sale, assignment and transfer of the
Private Notes tendered hereby. All authority herein conferred or
agreed to be conferred in this Letter of Transmittal shall
survive the death or incapacity of the undersigned and any
obligation of the undersigned hereunder shall be binding upon
the heirs, executors, administrators, personal representatives,
trustees in bankruptcy, legal representatives, successors and
assigns of the undersigned. This tender may be withdrawn only in
accordance with the procedures set forth in the Prospectus and
in the instructions contained in this Letter of Transmittal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>THE UNDERSIGNED, BY COMPLETING THE BOX ENTITLED
&#147;DESCRIPTION OF PRIVATE NOTES&#148; ABOVE AND SIGNING THIS
LETTER OF TRANSMITTAL AND DELIVERING SUCH PRIVATE NOTES AND THIS
LETTER OF TRANSMITTAL TO THE EXCHANGE AGENT, WILL BE DEEMED TO
HAVE TENDERED THE PRIVATE NOTES&nbsp;AS SET FORTH IN SUCH BOX
ABOVE. ANY FINANCIAL INSTITUTION THAT IS A PARTICIPANT IN THE
BOOK-ENTRY TRANSFER FACILITY&#146;S SYSTEM MAY MAKE BOOK-ENTRY
DELIVERY OF PRIVATE NOTES&nbsp;BY CAUSING THE BOOK-ENTRY
TRANSFER FACILITY TO TRANSFER SUCH PRIVATE NOTES&nbsp;INTO THE
EXCHANGE AGENT&#146;S ACCOUNT AT THE BOOK-ENTRY TRANSFER
FACILITY IN ACCORDANCE WITH SUCH BOOK-ENTRY TRANSFER
FACILITY&#146;S PROCEDURES. ALTHOUGH DELIVERY OF PRIVATE
NOTES&nbsp;MAY BE EFFECTED THROUGH BOOK-ENTRY TRANSFER AT THE
BOOK-ENTRY TRANSFER FACILITY, THIS LETTER OF TRANSMITTAL WITH
ALL REQUIRED SIGNATURE GUARANTEES AND ALL OTHER REQUIRED
DOCUMENTS MUST BE TRANSMITTED TO AND RECEIVED BY THE EXCHANGE
AGENT.</B>
</DIV>

<P align="center" style="font-size: 10pt;">7

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PLEASE SIGN HERE</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(TO BE COMPLETED BY ALL TENDERING HOLDERS)</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(COMPLETE ACCOMPANYING SUBSTITUTE FORM W-9)</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="57%">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    X&nbsp;<DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Date:&nbsp;------------------------------------------------------------&nbsp;,
    200&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    X&nbsp;<DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Date:&nbsp;------------------------------------------------------------&nbsp;,
    200&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B>Signature(s) of Owner</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The above lines must be signed by the registered holder(s)
exactly as their name(s) appear(s) on the Private Notes, or by
person(s) authorized to become registered holder(s) by a
properly completed bond power from the registered holder(s), a
copy of which must be transmitted with this Letter of
Transmittal. If Private Notes to which this Letter of
Transmittal relate are held of record by two or more joint
holders, then all such holders must sign this Letter of
Transmittal. If signature is by a trustee, executor,
administrator, guardian, attorney-in-fact, officer of a
corporation or other person acting in a fiduciary or
representative capacity, then please set forth full title. See
Instruction&nbsp;4.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Name(s):
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<B>(Please Type or Print)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 4pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Capacity:
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Address:
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<B>(Including Zip Code)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Area Code and Telephone Number:
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Tax Identification or Social Security Number(s):
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SIGNATURE GUARANTEED</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(IF REQUIRED BY INSTRUCTION 4)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Signatures Guaranteed
</DIV>

<DIV align="left" style="font-size: 10pt;">
by an Eligible Institution:
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<B>(Authorized Signature)</B>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<B>(Title)</B>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<B>(Name of Firm)</B>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<B>(Address and Telephone Number)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Dated:&nbsp;______________________________&nbsp;,&nbsp;200
</DIV>

<P align="center" style="font-size: 10pt;">8

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>SPECIAL ISSUANCE INSTRUCTIONS</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(See Instructions 4 and 5)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To be completed ONLY if certificates for Private Notes not
exchanged and/or New Notes are to be issued in the name of and
sent to someone other than the person or persons whose
signature(s) appear(s) on the Letter of Transmittal above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Issue New Notes and/or Private Notes to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Name(s):
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<B>(Please Type or Print)</B>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 4pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<B>(Please Type or Print)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 4pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Address:
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<B>(Zip Code)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 4pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Telephone Number:
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Tax Identification or
</DIV>

<DIV align="left" style="font-size: 10pt;">
Social Security Number(s):
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SPECIAL DELIVERY INSTRUCTIONS</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(See Instructions 4 and 5)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To be completed ONLY if certificates for Private Notes not
exchanged and/or New Notes are to be sent to someone other than
the person or persons whose signature(s) appear(s) on the Letter
of Transmittal above or to such person or persons at an address
other than that shown in the box above entitled
&#147;Description of Private Notes&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Deliver New Notes and/or Private Notes to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Name(s):
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<B>(Please Type or Print)</B>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 4pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<B>(Please Type or Print)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 4pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Address:
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<B>(Zip Code)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 4pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Telephone Number:
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Tax Identification or
</DIV>

<DIV align="left" style="font-size: 10pt;">
Social Security Number(s):
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
(Complete Substitute Form&nbsp;W-9)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>IMPORTANT: UNLESS GUARANTEED DELIVERY PROCEDURES ARE COMPLIED
WITH, THIS LETTER OF TRANSMITTAL OR A FACSIMILE HEREOF (TOGETHER
WITH THE CERTIFICATE(S) FOR PRIVATE NOTES&nbsp;AND ALL OTHER
REQUIRED DOCUMENTS) MUST BE RECEIVED BY THE EXCHANGE AGENT PRIOR
TO 5:00&nbsp;P.M., NEW YORK CITY TIME, ON THE EXPIRATION
DATE.</B>
</DIV>

<P align="center" style="font-size: 10pt;">9

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<DIV align="center" style="font-size: 12pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INSTRUCTIONS</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>FORMING PART&nbsp;OF THE TERMS AND CONDITIONS OF THE EXCHANGE
OFFER</B>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>1.</B></TD>
    <TD>
    <B>DELIVERY OF THIS LETTER OF TRANSMITTAL AND PRIVATE NOTES.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This Letter of Transmittal must accompany (i)&nbsp;all
certificates representing Private Notes tendered pursuant to the
Exchange Offer and (ii)&nbsp;all tenders of Private Notes made
pursuant to the procedures for book-entry transfer set forth in
the Prospectus under &#147;The Exchange Offer&nbsp;&#151;
Procedures for Tendering.&#148; Certificates representing the
Private Notes in proper form for transfer, or a timely
confirmation of a book-entry transfer of such Private Notes into
the Exchange Agent&#146;s account at DTC, as well as a properly
completed and duly executed copy of this Letter of Transmittal
(or facsimile thereof), with any required signature guarantees,
a Substitute Form&nbsp;W-9 (or facsimile thereof) and any other
documents required by this Letter of Transmittal must be
received by the Exchange Agent at its address set forth herein
on or before the Expiration Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The method of delivery of this Letter of Transmittal, the
Private Notes and all other required documents is at the
election and risk of the tendering holders, but delivery will be
deemed made only when actually received or confirmed by the
Exchange Agent. If such delivery is by mail, it is recommended
that registered mail properly insured, with return receipt
requested, be used. In all cases, sufficient time should be
allowed to permit timely delivery.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company will not accept any alternative, conditional or
contingent tenders. Each tendering holder, by execution of a
Letter of Transmittal (or facsimile thereof), waives any right
to receive any notice of the acceptance of such tender.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>2.</B></TD>
    <TD>
    <B>GUARANTEED DELIVERY PROCEDURES.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a holder desires to tender Private Notes, but time will not
permit a Letter of Transmittal, certificates representing the
Private Notes to be tendered or other required documents to
reach the Exchange Agent on or before the Expiration Date, or if
the procedure for book-entry transfer cannot be completed on or
prior to the Expiration Date, such holder&#146;s tender may be
effected if:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;such tender is made by or through an Eligible
    Institution (as defined below);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;on or before the Expiration Date, the Exchange Agent
    has received a properly completed and duly executed Notice of
    Guaranteed Delivery, substantially in the form made available by
    the Company (or a facsimile thereof with receipt confirmed by
    telephone and an original delivered by guaranteed overnight
    courier) from such Eligible Institution setting forth the name
    and address of the holder of such Private Notes, the name(s) in
    which the Private Notes are registered and the principal amount
    of Private Notes tendered and stating that the tender is being
    made thereby and guaranteeing that, within three New York Stock
    Exchange trading days after the Expiration Date, certificates
    representing Private Notes to be tendered, in proper form for
    transfer, or a Book-Entry confirmation, as the case may be,
    together with a duly executed Letter of Transmittal and any
    other documents required by this Letter of Transmittal and the
    instructions hereto, will be deposited by such Eligible
    Institution with the Exchange Agent;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;a Letter of Transmittal (or a facsimile thereof) and
    certificates representing the Private Notes to be tendered, in
    proper form for transfer, or a book-entry confirmation, as the
    case may be, and all other required documents are received by
    the Exchange Agent within three New York Stock Exchange trading
    days after the Expiration Date.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>3.</B></TD>
    <TD>
    <B>PARTIAL TENDERS AND WITHDRAWAL RIGHTS.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Tenders of Private Notes will be accepted only in integral
multiples of $1,000. If less than all the Private Notes
evidenced by any Certificate submitted are to be tendered, fill
in the principal amount of Private Notes which are to be
tendered in the box entitled &#147;Principal Amount of Private
Notes&nbsp;Tendered (if less than all).&#148; In such case, new
certificate(s) for the remainder of the Private Notes that were
evidenced by your old certificate(s) will only be sent to the
holder of the Private Notes (or, in the case of Private Notes
tendered pursuant to book-entry transfer, will only be
</DIV>

<P align="center" style="font-size: 10pt;">10

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<DIV align="left" style="font-size: 10pt;">
credited to the account at DTC maintained by the holder of the
Private Notes) promptly after the Expiration Date. All Private
Notes represented by certificates or subject to a book-entry
confirmation delivered to the Exchange Agent will be deemed to
have been tendered unless otherwise indicated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any holder who has tendered Private Notes may withdraw the
tender by delivering written notice of withdrawal (which may be
sent by facsimile) to the Exchange Agent at its address set
forth herein prior to the Expiration Date. Any such notice of
withdrawal must specify the name of the person having tendered
the Private Notes to be withdrawn, identify the Private Notes to
be withdrawn (including the principal amount of such Private
Notes) and (where certificates for Private Notes have been
transmitted) specify the name in which such Private Notes are
registered, if different from that of the withdrawing holder. If
certificates for Private Notes have been delivered or otherwise
identified to the Exchange Agent, then, prior to the withdrawal
of such certificates, the withdrawing holder must also submit
the serial numbers of the particular certificates to be
withdrawn and a signed notice of withdrawal with signatures
guaranteed by an Eligible Institution unless such holder is an
Eligible Institution. If Private Notes have been tendered
pursuant to the procedure for book-entry transfer described
above, any notice of withdrawal must specify the name and number
of the account at the Book-Entry Transfer Facility to be
credited with the withdrawn Private Notes and otherwise comply
with the procedures of such facility. All questions as to the
validity, form and eligibility (including time of receipt) of
such notices will be determined by the Company, whose
determination shall be final and binding on all parties. Any
Private Notes so withdrawn will be deemed not to have been
validly tendered for exchange for purposes of the Exchange
Offer. Any Private Notes which have been tendered for exchange
but which are not exchanged for any reason will be returned to
the holder thereof without cost to such holder (or, in the case
of Private Notes tendered by book-entry transfer into the
Exchange Agent&#146;s account at the book-entry transfer
facility pursuant to the book-entry transfer procedures
described above, such Private Notes will be credited to an
account maintained with such book-entry transfer facility for
the Private Notes) as soon as practicable after withdrawal,
rejection of tender or termination of the Exchange Offer.
Properly withdrawn Private Notes may be retendered following one
of the procedures described in the Prospectus under &#147;The
Exchange Offer&nbsp;&#151; Procedures for Tendering.&#148;
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>4.</B></TD>
    <TD>
    <B>SIGNATURES ON THIS LETTER OF TRANSMITTAL; BOND POWERS AND
    ENDORSEMENTS; GUARANTEE OF SIGNATURES.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If this Letter of Transmittal is signed by the registered holder
of the Private Notes tendered herewith, the signature must
correspond exactly with the name as written on the face of the
certificates without any alteration, enlargement or change
whatsoever.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If any tendered Private Notes are owned of record by two or more
joint owners, all such owners must sign this Letter of
Transmittal. If any tendered Private Notes are registered in
different names on several certificates, it will be necessary to
complete, sign and submit as many separate copies of this Letter
of Transmittal as there are names in which tendered Private
Notes are registered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If this Letter of Transmittal is signed by the registered
holder, and New Notes are to be issued and any untendered or
unaccepted principal amount of Private Notes are to be reissued
or returned to the registered holder, then the registered holder
need not and should not endorse any tendered Private Notes nor
provide a separate bond power. In any other case, the registered
holder must either properly endorse the Private Notes tendered
or transmit a properly completed separate bond power with this
Letter of Transmittal (in either case, executed exactly as the
name of the registered holder appears on such Private Notes),
with the signature on the endorsement or bond power guaranteed
by an Eligible Institution, unless such certificates or bond
powers are signed by an Eligible Institution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If this Letter of Transmittal or any Private Notes or bond
powers are signed by trustees, executors, administrators,
guardians, attorneys-in-fact, officers of corporations or others
acting in a fiduciary or representative capacity, such persons
should so indicate when signing and submit with this Letter of
Transmittal evidence satisfactory to the Company of their
authority to so act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The signatures on this Letter of Transmittal or a notice of
withdrawal, as the case may be, must be guaranteed unless the
Private Notes surrendered for exchange pursuant thereto are
tendered (i)&nbsp;by a registered holder (which term, for
purposes of this document, shall include any participant in DTC
whose name appears on the register of holders
</DIV>

<P align="center" style="font-size: 10pt;">11

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<DIV align="left" style="font-size: 10pt;">
maintained by the Company as owner of the Private Notes) who has
not completed the box entitled &#147;Special Issuance
Instructions&#148; or &#147;Special Delivery Instructions&#148;
in this Letter of Transmittal or (ii)&nbsp;for the account of an
Eligible Institution. In the event that the signatures in this
Letter of Transmittal or a notice of withdrawal, as the case may
be, are required to be guaranteed, such guarantees must be by a
commercial bank or trust company located or having an office or
correspondent in the United States, or by a member firm of a
national securities exchange or of the National Association of
Securities Dealers, Inc., or which is otherwise an
&#147;eligible guarantor institution&#148; within the meaning of
Rule&nbsp;17Ad-15 under the United States Securities Exchange
Act of 1934, as amended (any of the foregoing being referred to
herein as an &#147;Eligible Institution&#148;). If Private Notes
are registered in the name of a person other than the signer of
this Letter of Transmittal, the Private Notes surrendered for
exchange must be endorsed by, or be accompanied by a written
instrument or instruments of transfer or exchange, in
satisfactory form as determined by the Company in its sole
discretion, duly executed by the registered holder with the
signature thereon guaranteed by an Eligible Institution.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>5.</B></TD>
    <TD>
    <B>SPECIAL ISSUANCE AND DELIVERY INSTRUCTIONS.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Tendering holders of Private Notes should indicate in the
applicable box the name and address or account at DTC to which
New Notes issued pursuant to the Exchange Offer and/or
substitute Private Notes for principal amounts not tendered or
not accepted for exchange are to be issued, sent or deposited if
different from the name and address or account of the person
signing this Letter of Transmittal. In the case of issuance in a
different name, the employer identification or Social Security
number of the person named must also be indicated. If no such
instructions are given, any New Notes will be issued in the name
of, and delivered to, the name and address (or account at DTC,
in the case of any tender by book-entry transfer) of the person
signing this Letter of Transmittal, and any Private Notes not
accepted for exchange will be returned to the name and address
(or account at DTC, in the case of any tender by book-entry
transfer) of the person signing this Letter of Transmittal.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>6.</B></TD>
    <TD>
    <B>BACKUP FEDERAL INCOME TAX WITHHOLDING AND SUBSTITUTE FORM
    W-9.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the federal income tax laws, payments that may be made by
the Company on account of New Notes issued pursuant to the
Exchange Offer may be subject to backup withholding. Currently,
the backup withholding rate is 28%. In order to avoid such
backup withholding, each tendering holder should complete and
sign the Substitute Form&nbsp;W-9 included in this Letter of
Transmittal and either (a)&nbsp;provide the correct taxpayer
identification number (&#147;TIN&#148;) and certify, under
penalties of perjury, that the TIN provided is correct and that
(i)&nbsp;the holder has not been notified by the Internal
Revenue Service (the &#147;IRS&#148;) that the holder is subject
to backup withholding as a result of failure to report all
interest or dividends or (ii)&nbsp;the IRS has notified the
holder that the holder is no longer subject to backup
withholding; or (b)&nbsp;provide an adequate basis for
exemption. If the tendering holder has not been issued a TIN and
has applied for one, or intends to apply for one in the near
future, such holder should write &#147;Applied For&#148; in the
space provided for the TIN in Part&nbsp;I of the Substitute
Form&nbsp;W-9, sign and date the Substitute Form&nbsp;W-9 and
sign the Certificate of Payee Awaiting Taxpayer Identification
Number. If &#147;Applied For&#148; is written in Part&nbsp;I,
the Company (or the Paying Agent under the Indenture governing
the New Notes) will retain a portion of payments made to the
tendering holder during the 60-day period following the date of
the Substitute Form&nbsp;W-9 in an amount sufficient to cover
the backup withholding tax on such payments. If the holder
furnishes the Exchange Agent or the Company with its TIN within
60&nbsp;days after the date of the Substitute Form&nbsp;W-9, the
Company (or Paying Agent) will remit such amounts retained
during the 60-day period to the holder and no further amounts
shall be retained or withheld from payments made to the holder
thereafter. If, however, the holder has not provided the
Exchange Agent or the Company with its TIN within such 60-day
period, the Company (or the Paying Agent) will remit such
previously retained amounts to the IRS as backup withholding. In
general, if a holder is an individual, the taxpayer
identification number is the Social Security Number of such
individual. If the Exchange Agent or the Company is not provided
with the correct taxpayer identification number, the holder may
be subject to a U.S.&nbsp;$50 penalty imposed by the IRS.
Certain holders (including, among others, all corporations and
certain foreign individuals) are not subject to these backup
withholding and reporting requirements. In order for a foreign
individual to qualify as an exempt recipient, such holder must
submit a statement (generally, IRS Form&nbsp;W-8BEN), signed
under penalties of perjury, attesting to that individual&#146;s
exempt status. Such statements can be obtained from the Exchange
Agent. For further information concerning backup withholding and
instructions for completing the Substitute Form&nbsp;W-9
(including how to obtain a taxpayer identification number if you
do not have one and how to complete the Substitute Form&nbsp;W-9
if
</DIV>

<P align="center" style="font-size: 10pt;">12

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<DIV align="left" style="font-size: 10pt;">
Private Notes are registered in more than one name), consult the
enclosed Guidelines for Certification of Taxpayer Identification
Number on Substitute Form&nbsp;W-9 (the &#147;Guidelines&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Failure to complete the Substitute Form&nbsp;W-9 will not, by
itself, cause Private Notes to be deemed invalidly tendered, but
may require the Company (or the Paying Agent) to backup withhold
with respect to any payments made on account of the New Notes.
Backup withholding is not an additional federal income tax.
Rather, the federal income tax liability of a person subject to
backup withholding will be reduced by the amount of tax
withheld. If withholding results in an overpayment of taxes, a
refund may be obtained.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>7.</B></TD>
    <TD>
    <B>TRANSFER TAXES.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company will pay all transfer taxes, if any, applicable to
the exchange of Private Notes for New Notes pursuant to the
Exchange Offer. If, however, certificates representing New Notes
or Private Notes for principal amounts not tendered or accepted
for exchange are to be delivered to, or are to be registered or
issued in the name of, any person other than the registered
holder of the Private Notes tendered, or if tendered Private
Notes are registered in the name of any person other than the
person signing this Letter of Transmittal, or if a transfer tax
is imposed for any reason other than the exchange of Private
Notes pursuant to the Exchange Offer, then the amount of any
such transfer taxes, whether imposed on the registered holder or
any other persons, will be payable by the tendering holder. If
satisfactory evidence of payment of such taxes or exemption
therefrom is not submitted with the letter of transmittal, the
amount of such transfer taxes will be billed by the Company
directly to such tendering holder.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>8.</B></TD>
    <TD>
    <B>WAIVER OF CONDITIONS.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company reserves the absolute right to waive, in whole or in
part, any of the conditions to the Exchange Offer set forth in
the Prospectus.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>9.</B></TD>
    <TD>
    <B>NO CONDITIONAL TENDERS.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No alternative, conditional, irregular or contingent tenders of
Private Notes or transmittals of this Letter of Transmittal will
be accepted. All tendering holders of Private Notes, by
execution of this Letter of Transmittal, shall waive any right
to receive notice of the acceptance of their Private Notes for
exchange.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Neither the Company, the Exchange Agent nor any other person is
obligated to give notice of defects or irregularities in any
tender, nor shall any of them incur any liability for failure to
give any such notice.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>10.</B></TD>
    <TD>
    <B>INADEQUATE SPACE.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the space provided herein is inadequate, the aggregate
principal amount of Private Notes being tendered and the
certificate number or numbers (if applicable) should be listed
on a separate schedule attached hereto and separately signed by
all parties required to sign this Letter of Transmittal.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>11.</B></TD>
    <TD>
    <B>MUTILATED, LOST, STOLEN OR DESTROYED PRIVATE NOTES.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If any certificate has been lost, mutilated, destroyed or
stolen, the holder should promptly notify Wilmington Trust
Company at (302)&nbsp;636-6470. The holder will then be
instructed as to the steps that must be taken to replace the
certificate. This Letter of Transmittal and related documents
cannot be processed until the Private Notes have been replaced.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>12.</B></TD>
    <TD>
    <B>REQUESTS FOR ASSISTANCE OR ADDITIONAL COPIES.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Questions relating to the procedure for tendering, as well as
requests for additional copies of the Prospectus and this Letter
of Transmittal, may be directed to the Exchange Agent at the
address and telephone number indicated above.
</DIV>

<P align="center" style="font-size: 10pt;">13

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>13.</B></TD>
    <TD>
    <B>VALIDITY OF TENDERS.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All questions as to the validity, form, eligibility (including
time of receipt) and acceptance of tendered Private Notes will
be determined by the Company, in its sole discretion, which
determination will be final and binding. The Company reserves
the right to reject any and all Private Notes not validly
tendered or any Private Notes, the Company&#146;s acceptance of
which may, in the opinion of the Company or counsel to the
Company, be unlawful. The Company also reserves the right to
waive any conditions of the Exchange Offer or defects or
irregularities in tenders of Private Notes as to any
ineligibility of any holder who seeks to tender Private Notes in
the Exchange Offer, whether or not similar conditions or
irregularities are waived in the case of other holders. Any such
waiver shall not constitute a general waiver of the conditions
of the Exchange Offer by the Company. The interpretation of the
terms and conditions of the Exchange Offer (including this
Letter of Transmittal and the instructions hereto) by the
Company shall be final and binding on all parties. Unless
waived, any defects or irregularities in connection with tenders
of Private Notes must be cured within such time as the Company
shall determine. The Company will use reasonable efforts to give
notification of defects or irregularities with respect to
tenders of Private Notes, but neither the Company nor the
Exchange Agent shall incur any liability for failure to give
such notification.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>14.</B></TD>
    <TD>
    <B>ACCEPTANCE OF TENDERED PRIVATE NOTES&nbsp;AND ISSUANCE OF NEW
    NOTES; RETURN OF PRIVATE NOTES.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to the terms and conditions of the Exchange Offer, the
Company will accept for exchange all validly tendered Private
Notes as soon as practicable after the Expiration Date and will
issue New Notes therefor as soon as practicable thereafter. For
purposes of the Exchange Offer, the Company shall be deemed to
have accepted tendered Private Notes when, as and if the Company
has given written and oral notice thereof to the Exchange Agent.
If any tendered Private Notes are not exchanged pursuant to the
Exchange Offer for any reason, such unexchanged Private Notes
will be returned, without expense, to the name and address shown
above or, if Private Notes have been tendered by book-entry
transfer, to the account at DTC shown above, or at a different
address or account at DTC as may be indicated under
&#147;Special Delivery Instructions.&#148;
</DIV>

<P align="center" style="font-size: 10pt;">14

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="44%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="27%">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="5" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="5" align="center" nowrap><B>TO BE COMPLETED BY ALL TENDERING HOLDERS</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="5" align="center" nowrap><B>(SEE INSTRUCTION 6)</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="5" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="5" align="center" nowrap><B>PAYOR&#146;S NAME:</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="5" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <B>SUBSTITUTE FORM<BR>
    W-9<BR>
    <BR>
    Department of the Treasury<BR>
    Internal Revenue Service</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    PART&nbsp;I&nbsp;&#151; TAXPAYER IDENTIFICATION<BR>
    NUMBER<BR>
     Enter your taxpayer identification number in the appropriate
    box. For most individuals, this is your social security number.
    If you do not have a number, see how to obtain a &#147;TIN&#148;
    in the enclosed Guidelines.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Social
    Security Number<BR>
    <BR>
    OR</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <BR>
    NOTE: If the account is in more than one name, see the chart on
    page&nbsp;2 of the enclosed Guidelines to determine what number
    to give.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Employer
    Identification Number</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <B>PART&nbsp;II&nbsp;&#151; </B>FOR PAYEES EXEMPT FROM BACKUP
    WITHHOLDING<BR>
    (SEE ENCLOSED GUIDELINES)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Payor&#146;s Request for Taxpayer<BR>
    Identification Number (TIN)<BR>
    and Certification</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    CERTIFICATION&nbsp;&#151; UNDER THE PENALTIES OF PERJURY, I
    CERTIFY THAT:</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    (1)&nbsp;I am a U.S.&nbsp;person and the number shown on this
    form is my correct Taxpayer Identification Number (or I am
    waiting for a number to be issued to me), and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    (2)&nbsp;I am not subject to backup withholding either because I
    have not been notified by the Internal Revenue Service (the
    &#147;IRS&#148;) that I am subject to backup withholding as a
    result of a failure to report all interest or dividends or the
    IRS has notified me that I am no longer subject to backup
    withholding.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    SIGNATURE&nbsp;<DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    DATE&nbsp;<DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt;">

</DIV>

<DIV align="left" style="font-size: 10pt;">

</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
    <TD width="1%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Certificate Guidelines&nbsp;&#151; You must cross out Item
    (2)&nbsp;of the above certification if you have been notified by
    the IRS that you are subject to backup withholding because of
    under-reporting of interest on dividends on your tax return.
    However, if after being notified by the IRS that you were
    subject to backup withholding, you received another notification
    from the IRS that you are no longer subject to backup
    withholding, do not cross out Item&nbsp;2.</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 6pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt;">

</DIV>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="center" style="font-size: 10pt;">
<B>CERTIFICATION OF PAYEE AWAITING TAXPAYER IDENTIFICATION
NUMBER</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>I certify, under penalties
of perjury, that a Taxpayer Identification Number has not been
issued to me and that I mailed or delivered an application to
receive a Taxpayer Identification Number to the appropriate
Internal Revenue Service Center or Social Security
Administration Office (or I intend to mail or deliver an
application in the near future). I understand that if I do not
provide a Taxpayer Identification Number to the payor, an amount
sufficient to cover the backup withholding tax at the specified
rate, currently 28%, will be retained on payments made to me on
account of the New Notes until I provide a Taxpayer
Identification Number to the payor and that, if I do not provide
my Taxpayer Identification Number within 60&nbsp;days, such
retained amounts shall be remitted to the Internal Revenue
Service as a backup withholding and all reportable payments made
to me thereafter will be subject to backup withholding and
remitted to the Internal Revenue Service until I provide a
Taxpayer Identification Number.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
SIGNATURE&nbsp;__________________________________________________&nbsp;&nbsp;DATE&nbsp;________________________________________&nbsp;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOTE: FAILURE TO COMPLETE AND
RETURN THIS FORM MAY RESULT IN BACKUP WITHHOLDING ON ANY
PAYMENTS MADE TO YOU ON ACCOUNT OF THE NEW NOTES. PLEASE REVIEW
THE ENCLOSED GUIDELINES FOR CERTIFICATION OF TAXPAYER
IDENTIFICATION NUMBER ON SUBSTITUTE FORM W-9 FOR ADDITIONAL
DETAILS.</B>
</DIV>
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>13
<FILENAME>y09849a1exv99w2.htm
<DESCRIPTION>EX-99.2: NOTICE OF GUARANTEED DELIVERY
<TEXT>
<HTML>
<HEAD>
<TITLE>EXHIBIT 99.2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<DIV align="right" style="font-size: 10pt;">
 <B>Exhibit&nbsp;99.2</B>
</DIV>


<DIV align="center" style="font-size: 16pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>NOTICE OF GUARANTEED DELIVERY</B>
</DIV>

<DIV align="center" style="font-size: 14pt;">
<B>FOR TENDER OF ANY AND ALL OUTSTANDING
7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
SENIOR NOTES</B>
</DIV>


<DIV align="center" style="font-size: 14pt;">
<B>DUE 2013 IN EXCHANGE FOR</B>
</DIV>


<DIV align="center" style="font-size: 14pt;">
<B>7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
SENIOR NOTES&nbsp;DUE 2013</B>
</DIV>

<DIV align="center" style="font-size: 14pt;">
<B>OF</B>
</DIV>

<DIV align="center" style="font-size: 16pt;">
<B>AMERICAN REAL ESTATE PARTNERS, L.P.</B>
</DIV>

<DIV align="center" style="font-size: 16pt;">
<B>AMERICAN REAL ESTATE FINANCE CORP.</B>
</DIV>

<DIV align="center" style="font-size: 14pt;">
<B>PURSUANT TO THE PROSPECTUS DATED
DECEMBER &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2005</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">

</DIV>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="left" style="font-size: 10pt;">
<B>THE EXCHANGE OFFER WILL EXPIRE AT 5:00&nbsp;P.M., NEW YORK
CITY TIME, ON JANUARY&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2006
OR SUCH LATER DATE AND TIME TO WHICH THE EXCHANGE OFFER MAY BE
EXTENDED (THE &#147;EXPIRATION DATE&#148;). TENDERS MAY BE
WITHDRAWN PRIOR TO 5:00&nbsp;P.M., NEW YORK CITY TIME, ON THE
EXPIRATION DATE.</B>
</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This Notice of Guaranteed Delivery, or one substantially
equivalent to this form, must be used by registered holders of
outstanding
7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;Senior
Notes due 2013 (the &#147;Private Notes&#148;) of American Real
Estate Partners, L.P., a Delaware limited partnership
(&#147;AREP&#148;), and American Real Estate Finance Corp., a
Delaware corporation (&#147;AREP Finance,&#148; and together
with AREP, the &#147;Company&#148;), who wish to tender their
Private Notes for an equal principal amount of new
7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;Senior
Notes due 2013 (the &#147;Exchange Notes&#148;) that have been
registered under the Securities Act of 1933, as amended (the
&#147;Securities Act&#148;), if (i)&nbsp;the Private Notes, a
duly completed and executed Letter of Transmittal (the
&#147;Letter of Transmittal&#148;) and all other required
documents cannot be delivered to Wilmington Trust Company (the
&#147;Exchange Agent&#148;) prior to 5:00&nbsp;p.m., New York
City time, on January&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2006,
or such later date and time to which the exchange offer may be
extended (the &#147;Expiration Date&#148;) or (ii)&nbsp;the
procedures for delivery of the Private Notes being tendered by
book-entry transfer, together with a duly completed and executed
Letter of Transmittal, cannot be completed on or prior to the
Expiration Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This Notice of Guaranteed Delivery may be delivered by hand,
overnight courier or mail, or transmitted by facsimile
transmission (receipt confirmed by telephone and an original
delivered by guaranteed overnight delivery) to the Exchange
Agent. See &#147;The Exchange Offer&nbsp;&#151; Procedures for
Tendering&#148; in the Prospectus (as defined herein). The
Company has the right to reject a tender of Private Notes made
pursuant to the guaranteed delivery procedures unless the
registered holder using the guaranteed delivery procedure
submits either (a)&nbsp;the Private Notes tendered thereby, in
proper form for transfer, or (b)&nbsp;confirmation of book-entry
transfer in the manner set forth in the Prospectus, in either
case together with one or more properly completed and duly
executed Letter(s) of Transmittal (or facsimile thereof) and any
other required documents by 5:00&nbsp;p.m., New York City time,
on the third New York Stock Exchange trading day following the
Expiration Date. Capitalized terms not defined herein have the
meanings assigned to them in the Prospectus.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The Exchange Agent for the Exchange Offer is:
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Wilmington Trust Company</B>
</DIV>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="33%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>By Certified or Registered Mail:</I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I>By Overnight Courier or Hand:</I></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I>By Facsimile Transmission:</I></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Wilmington Trust Company<BR>
    DC-1626 Processing Unit<BR>
    P.O. Box&nbsp;8861<BR>
    Wilmington, DE 19899-8861</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Wilmington Trust Company<BR>
    Corporate Capital Markets<BR>
    1100 North Market Street<BR>
    Wilmington, DE 19890-1626</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    (302) 636-4139<BR>
     <I>Attention: </I>Exchanges<BR>
     <I>Confirm by Telephone:<BR>
    </I>(302) 636-6470<BR>
     <I>For Information Call:<BR>
    </I>(302) 636-6470</TD>
</TR>

</TABLE>
</CENTER>


<P align="center" style="font-size: 10pt;">
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>DELIVERY OF THIS NOTICE OF GUARANTEED DELIVERY TO AN ADDRESS
OTHER THAN AS SET FORTH ABOVE OR TRANSMISSION OF THIS NOTICE OF
GUARANTEED DELIVERY VIA FACSIMILE TO A NUMBER OTHER THAN AS SET
FORTH ABOVE WILL NOT CONSTITUTE A VALID DELIVERY.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>THIS NOTICE OF GUARANTEED DELIVERY IS NOT TO BE USED TO
GUARANTEE SIGNATURES. IF A SIGNATURE ON A LETTER OF TRANSMITTAL
IS REQUIRED TO BE GUARANTEED BY AN &#147;ELIGIBLE
INSTITUTION&#148; UNDER THE INSTRUCTIONS THERETO, SUCH SIGNATURE
GUARANTEE MUST APPEAR IN THE APPLICABLE SPACE PROVIDED IN THE
SIGNATURE BOX ON THE LETTER OF TRANSMITTAL.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Ladies and Gentlemen:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned hereby tenders to the Company, upon the terms
and subject to the conditions set forth in the Prospectus dated
December&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2005 (as the same
may be amended or supplemented from time to time, the
&#147;Prospectus&#148;), and the related Letter of Transmittal
(which together constitute the &#147;Exchange Offer&#148;),
receipt of which is hereby acknowledged, the aggregate principal
amount of the Private Notes set forth below pursuant to the
guaranteed delivery procedures set forth in the Prospectus under
the caption &#147;The Exchange Offer&nbsp;&#151; Guaranteed
Delivery Procedures&#148; and in Instruction&nbsp;2 to the
Letter of Transmittal.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DESCRIPTION OF SECURITIES TENDERED</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="28%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Name and Address of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Registered Holder</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Certificate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>as it Appears on</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Number(s) of</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Aggregate Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Principal Amount of</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>the Private Notes</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Private Notes</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Amount Represented</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Private Notes</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>(Please Print)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Tendered</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>by Private Notes</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Tendered*</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    Must be tendered only in integral multiples of $1,000.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the Private Notes will be tendered by book-entry transfer,
provide the following information:
</DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<FONT style="font-size: 10pt">DTC Account
Number:&nbsp;<DIV style="width: 50%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</FONT>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PLEASE SIGN HERE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All authority herein conferred or agreed to be conferred shall
survive the death or incapacity of the undersigned and every
obligation of the undersigned hereunder shall be binding upon
the heirs, personal representatives, successors and assigns of
the undersigned.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="15%"></TD>
    <TD width="85%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    x
    <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
    Date:
    <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    200&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>

<TR>
    <TD style="font-size: 12pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    x
    <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
    Date:
    <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    200&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Signature(s) of Owner(s)
</DIV>

<DIV align="left" style="font-size: 10pt;">
Or Authorized Signatory
</DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<FONT style="font-size: 10pt">Area Code and Telephone
Number:&nbsp;<DIV style="width: 50%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</FONT>
</DIV>

<P align="center" style="font-size: 10pt;">2

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Must be signed by the holder(s) of the Private Notes as their
name(s) appear(s) on certificates of the Private Notes or on a
security position listing, or by person(s) authorized to become
registered holder(s) by endorsement and documents transmitted
with this Notice of Guaranteed Delivery. If signature is by a
trustee, executor, administrator, guardian, attorney-in-fact,
officer or other person acting in a fiduciary or representative
capacity, such person must set forth his or her full title below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 30pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Please print name(s) and address(es)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Name(s):</B>
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Capacity:</B>
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Address(es):</B>
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="right" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<P align="center" style="font-size: 10pt;">3

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>THE FOLLOWING GUARANTEE MUST BE COMPLETED</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>GUARANTEE OF DELIVERY</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(NOT TO BE USED FOR SIGNATURE GUARANTEE)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned, a firm or other entity identified in
Rule&nbsp;17Ad-15 under the Securities Exchange Act of 1934, as
amended, as an &#147;eligible guarantor institution,&#148;
including (as such terms are defined therein): (i)&nbsp;a bank;
(ii)&nbsp;a broker, dealer, municipal securities broker,
municipal securities dealer, government securities broker or
government securities dealer; (iii)&nbsp;a credit union;
(iv)&nbsp;a national securities exchange, registered securities
association or clearing agency; or (v)&nbsp;a savings
association that is a participant in a Securities Transfer
Association recognized program (each of the foregoing being
referred to as an &#147;Eligible Institution&#148;), hereby
guarantees to deliver to the Exchange Agent, at one of its
addresses set forth above, either (a)&nbsp;the Private Notes
tendered hereby, in proper from for transfer, or
(b)&nbsp;confirmation of the book-entry transfer of such Private
Notes to the Exchange Agent&#146;s account at the Depository
Trust Company maintained for such purpose, pursuant to the
procedures for book-entry transfer set forth in the Prospectus,
in either case together with one or more properly completed and
duly executed Letter(s) of Transmittal (or facsimile thereof)
and any other required documents by 5:00&nbsp;p.m., New York
City time, on the third New York Stock Exchange trading day
following the Expiration Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned acknowledges that it must deliver the Letter(s)
of Transmittal and the Private Notes tendered hereby to the
Exchange Agent within the time period set forth above and that
failure to do so could result in a financial loss to the
undersigned.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 18pt; ">

<TR style="font-size: 1pt;">
    <TD width="49%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Name of
    Firm:<DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV><B>(Authorized
    Signature)</B></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Address:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Title:</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    &nbsp</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV><B>(zip
    code)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Name:<DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>(Please type or print)</B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV><B>Area
    Code and Telephone Number:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Date:<DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></TD>
</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B>NOTE:</B></TD>
    <TD align="left">
    <B>DO NOT SEND CERTIFICATES FOR PRIVATE NOTES&nbsp;WITH THIS
    FORM. CERTIFICATES FOR PRIVATE NOTES&nbsp;SHOULD ONLY BE SENT
    WITH YOUR LETTER OF TRANSMITTAL.</B></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">4

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>14
<FILENAME>y09849a1exv99w3.htm
<DESCRIPTION>EX-99.3: LETTER TO CLIENTS
<TEXT>
<HTML>
<HEAD>
<TITLE>EXHIBIT 99.3</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<DIV align="right" style="font-size: 10pt;">
<B>Exhibit&nbsp;99.3</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AMERICAN REAL ESTATE PARTNERS, L.P.</B>
</DIV>

<DIV align="center" style="font-size: 14pt;">
<B>AMERICAN REAL ESTATE FINANCE CORP.</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>OFFER TO EXCHANGE ALL OUTSTANDING</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>$480,000,000 AGGREGATE PRINCIPAL AMOUNT OF</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
SENIOR NOTES&nbsp;DUE 2013</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>IN EXCHANGE FOR</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>$480,000,000 AGGREGATE PRINCIPAL AMOUNT OF</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
SENIOR NOTES&nbsp;DUE 2013</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>WHICH HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>PURSUANT TO THE PROSPECTUS DATED
DECEMBER &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2005</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
To Our Clients:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Enclosed for your consideration is a Prospectus, dated
December&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2005 (the
&#147;Prospectus&#148;), and the related Letter of Transmittal
(the &#147;Letter of Transmittal&#148;), relating to the offer
(the &#147;Exchange Offer&#148;) of American Real Estate
Partners, L.P., a Delaware limited partnership
(&#147;AREP&#148;), and American Real Estate Finance Corp., a
Delaware corporation (&#147;AREP Finance,&#148; and together
with AREP, the &#147;Company&#148;), to exchange the
Company&#146;s
7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;Senior
Notes due 2013 (the &#147;New Notes&#148;), which have been
registered under the Securities Act of 1933, as amended, for the
Company&#146;s outstanding
7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;Senior
Notes (the &#147;Private Notes&#148;), upon the terms and
subject to the conditions described in the Prospectus and the
Letter of Transmittal. The Exchange Offer is being made in order
to satisfy certain obligations of the Company and American Real
Estate Holdings Limited Partnership, a Delaware limited
partnership (&#147;AREH&#148; or the &#147;Guarantor&#148;),
contained in the Registration Rights Agreement, dated as of
February&nbsp;7, 2005, among the Company, the Guarantor and
Bear, Stearns&nbsp;&#38; Co. Inc., as initial purchaser.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This material is being forwarded to you as the beneficial owner
of the Private Notes held by us for your account but not
registered in your name. A TENDER OF SUCH PRIVATE NOTES&nbsp;MAY
ONLY BE MADE BY US AS THE HOLDER OF RECORD AND PURSUANT TO YOUR
INSTRUCTIONS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Accordingly, we request instructions as to whether you wish us
to tender on your behalf the Private Notes held by us for your
account, pursuant to the terms and conditions set forth in the
enclosed Prospectus and Letter of Transmittal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Your instructions should be forwarded to us as promptly as
possible in order to permit us to tender the Private Notes on
your behalf in accordance with the provisions of the Exchange
Offer. The Exchange Offer will expire at 5:00&nbsp;p.m., New
York City time, on January&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006, (the &#147;Expiration Date&#148;) unless extended by the
Company. Any Private Notes tendered pursuant to the Exchange
Offer may be withdrawn at any time before the Expiration Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Your attention is directed to the following:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    1.&nbsp;The Exchange Offer is for any and all Private Notes.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    2.&nbsp;The Exchange Offer is subject to certain conditions set
    forth in the Prospectus in the section captioned &#147;The
    Exchange Offer&nbsp;&#151; Conditions.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    3.&nbsp;Any transfer taxes incident to the transfer of Private
    Notes from the holder to the Company will be paid by the
    Company, except as otherwise provided in the Instructions in the
    Letter of Transmittal.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    4.&nbsp;The Exchange Offer expires at 5:00&nbsp;p.m., New York
    City time, on January&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2006,
    unless extended by the Company.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If you wish to have us tender your Private Notes, please so
instruct us by completing, executing and returning to us the
instruction form on the back of this letter. THE LETTER OF
TRANSMITTAL IS FURNISHED TO YOU FOR INFORMATION ONLY AND MAY NOT
BE USED DIRECTLY BY YOU TO TENDER YOUR PRIVATE NOTES.
</DIV>

<P align="center" style="font-size: 10pt;">
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INSTRUCTIONS WITH RESPECT TO</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>THE EXCHANGE OFFER</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned acknowledge(s) receipt of your letter and the
enclosed material referred to therein relating to the Exchange
Offer made by American Real Estate Partners, L.P. and American
Real Estate Finance Corp. with respect to the Company&#146;s
Private Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This will instruct you to tender the Private Notes held by you
for the account of the undersigned, upon and subject to the
terms and conditions set forth in the Prospectus and the related
Letter of Transmittal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned expressly agrees to be bound by the enclosed
Letter of Transmittal and that such Letter of Transmittal may be
enforced against the undersigned.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">

</DIV>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT face="wingdings">&#111;</FONT>&nbsp;Please tender the
Private Notes held by you for my account as indicated below:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;Senior
Notes due 2013
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
$&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>

<DIV align="center" style="font-size: 10pt;">
(Aggregate Principal Amount of Private Notes)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT face="wingdings">&#111;</FONT>&nbsp;Please do not tender
any Private Notes held by you for my account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Dated:&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
200<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Signature(s):
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Print Name(s) here:
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Print Address(es) here:
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Area Code and Telephone Number(s):
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Tax Identification or Social Security Number(s):
</DIV>

<DIV align="right" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
None of the Private Notes held by us for your account will be
tendered unless we receive written instructions from you to do
so. Unless a specific contrary instruction is given in the space
provided, your signature(s) hereon shall constitute an
instruction to us to tender all the Private Notes held by us for
your account.
</DIV>
</DIV>

<P align="center" style="font-size: 10pt;">2

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>15
<FILENAME>y09849a1exv99w4.htm
<DESCRIPTION>EX-99.4: LETTER TO BROKERS
<TEXT>
<HTML>
<HEAD>
<TITLE>EXHIBIT 99.4</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<DIV align="right" style="font-size: 10pt;">
<B>Exhibit&nbsp;99.4</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AMERICAN REAL ESTATE PARTNERS, L.P.</B>
</DIV>

<DIV align="center" style="font-size: 14pt;">
<B>AMERICAN REAL ESTATE FINANCE CORP.</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>OFFER TO EXCHANGE ALL OUTSTANDING</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>$480,000,000 AGGREGATE PRINCIPAL AMOUNT OF</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
SENIOR NOTES&nbsp;DUE 2013</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>IN EXCHANGE FOR</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>$480,000,000 AGGREGATE PRINCIPAL AMOUNT OF</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
SENIOR NOTES&nbsp;DUE 2013</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>WHICH HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>PURSUANT TO THE PROSPECTUS DATED
DECEMBER &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2005</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 15pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">

</DIV>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="left" style="font-size: 10pt;">
<B>YOUR PROMPT ACTION IS REQUESTED. THE EXCHANGE OFFER WILL
EXPIRE AT 5:00&nbsp;P.M., NEW YORK CITY TIME ON
JANUARY &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006, UNLESS EXTENDED BY THE COMPANY (THE &#147;EXPIRATION
DATE&#148;). PRIVATE NOTES&nbsp;TENDERED PURSUANT TO THE
EXCHANGE OFFER MAY BE WITHDRAWN AT ANY TIME BEFORE THE
EXPIRATION DATE.</B>
</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
To: Brokers, Dealers, Commercial Banks, Trust Companies and
Other Nominees
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
American Real Estate Partners, L.P., a Delaware limited
partnership (&#147;AREP&#148;), and American Real Estate Finance
Corp., a Delaware Corporation (&#147;AREP Finance,&#148; and
together with AREP, the &#147;Company&#148;), is offering, upon
and subject to the terms and conditions set forth in the
Prospectus, dated December&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2005 (the &#147;Prospectus&#148;), and the enclosed Letter of
Transmittal (the &#147;Letter of Transmittal&#148;), to exchange
(the &#147;Exchange Offer&#148;) the Company&#146;s
7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;Senior
Notes due 2013 (the &#147;New Notes&#148;), which have been
registered under the Securities Act of 1933, as amended, for the
Company&#146;s outstanding
7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;Senior
Notes due 2013 (the &#147;Private Notes&#148;). The Exchange
Offer is being made in order to satisfy certain obligations of
the Company and American Real Estate Holdings Limited
Partnership, a Delaware limited partnership (&#147;AREH&#148; or
the &#147;Guarantor&#148;), contained in the Registration Rights
Agreement, dated as of February&nbsp;7, 2005, among the Company,
the Guarantor and Bear, Stearns&nbsp;&#38; Co. Inc., as initial
purchaser.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are requesting that you contact your clients for whom you
hold Private Notes regarding the Exchange Offer. For your
information and for forwarding to your clients for whom you hold
Private Notes registered in your name or in the name of your
nominee, or who hold Private Notes registered in their own
names, we are enclosing the following documents:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    1.&nbsp;Prospectus dated
    December&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2005;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    2.&nbsp;The Letter of Transmittal for your use and for the
    information of your clients;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    3.&nbsp;A Notice of Guaranteed Delivery to be used to accept the
    Exchange Offer if certificates for Private Notes are not
    immediately available or time will not permit all required
    documents to reach Wilmington Trust Company prior to the
    Expiration Date (as defined below) or if the procedure for
    book-entry transfer cannot be completed on a timely basis;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    4.&nbsp;A form of letter which may be sent to your clients for
    whose account you hold Private Notes registered in your name or
    the name of your nominee, with space provided for obtaining such
    clients&#146; instructions with regard to the Exchange
    Offer;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    5.&nbsp;Guidelines for Certification of Taxpayer Identification
    Number on Substitute Form&nbsp;W-9.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To participate in the Exchange Offer, a duly executed and
properly completed Letter of Transmittal (or facsimile thereof
or Agent&#146;s Message in lieu of), with any required signature
guarantees and any other required documents, should be sent to
the Wilmington Trust Company, and certificates representing the
Private Notes should be delivered to the Wilmington Trust
Company, all in accordance with the instructions set forth in
the Letter of Transmittal and the Prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a holder desires to tender Private Notes pursuant to the
Exchange Offer but the Private Notes are not immediately
available, or time will not permit this Letter of Transmittal,
the certificates representing Private Notes or other required
documents to reach the Wilmington Trust Company on or before the
Expiration Date, or the procedure for book-entry transfer cannot
be completed on a timely basis, such holder may effect a tender
of such Private Notes in accordance with the guaranteed delivery
procedures set forth in the Prospectus under &#147;The Exchange
Offer&nbsp;&#151; Guaranteed Delivery Procedures.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any transfer taxes incident to the transfer of Private Notes
from the holder to the Company will be paid by the Company,
except as otherwise provided in the Instructions in the Letter
of Transmittal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any inquiries you may have with respect to the Exchange Offer,
or requests for additional copies of the enclosed materials,
should be directed to Wilmington Trust Company, at Wilmington
Trust Company&#146;s address and telephone number set forth on
the front of the Letter of Transmittal.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Very truly yours,</TD>
</TR>

<TR>
    <TD style="font-size: 24pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    American Real Estate Partners, L.P.</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    American Real Estate Finance Corp.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>NOTHING HEREIN OR IN THE ENCLOSED DOCUMENTS SHALL CONSTITUTE
YOU OR ANY PERSON AS AN AGENT OF THE COMPANY OR WILMINGTON TRUST
COMPANY, OR AUTHORIZE YOU OR ANY OTHER PERSON TO USE ANY
DOCUMENT OR MAKE ANY STATEMENTS ON BEHALF OR EITHER THE COMPANY
OR WILMINGTON TRUST COMPANY WITH RESPECT TO THE EXCHANGE OFFER,
EXCEPT FOR STATEMENTS EXPRESSLY MADE IN THE PROSPECTUS OR THE
LETTER OF TRANSMITTAL.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Enclosures
</DIV>

<P align="center" style="font-size: 10pt;">2

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<TYPE>EX-99.5
<SEQUENCE>16
<FILENAME>y09849a1exv99w5.htm
<DESCRIPTION>EX-99.5: FORM OF EXCHANGE AGENT AGREEMENT
<TEXT>
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<B>EXHIBIT&nbsp;99.5</B>
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    <TD>&nbsp;</TD>
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    <B>December&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2005</B></TD>
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<B>EXCHANGE AGENT AGREEMENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Wilmington Trust Company
</DIV>

<DIV align="left" style="font-size: 10pt;">
Rodney Square North
</DIV>

<DIV align="left" style="font-size: 10pt;">
1100 North Market Street
</DIV>

<DIV align="left" style="font-size: 10pt;">
Wilmington, Delaware 19890
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Ladies and Gentlemen:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
American Real Estate Partners, L.P., a Delaware limited
partnership (&#147;AREP&#148;), and American Real Estate Finance
Corp., a Delaware corporation (&#147;AREP Finance&#148;, and
together with AREP, the &#147;Company&#148;), proposes to make
an offer (the &#147;Exchange Offer&#148;) to exchange its
7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;Senior
Notes due 2013 (the &#147;New Notes&#148;) for a like principal
amount of its outstanding
7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;Senior
Notes due 2013 (the &#147;Old Notes&#148;). The terms and
conditions of the Exchange Offer as currently contemplated are
set forth in a prospectus (the &#147;Prospectus&#148;) included
in the Company&#146;s registration statement on Form&nbsp;S-4
(File No.&nbsp;333-125986), as amended, filed with the
Securities and Exchange Commission (the &#147;SEC&#148;), and
proposed to be distributed to all record holders of the Old
Notes. The Old Notes and the New Notes are collectively referred
to in this Exchange Agent Agreement (this &#147;Agreement&#148;)
as the &#147;Notes&#148;. Capitalized terms used herein and not
defined shall have the respective meanings ascribed to them in
the Prospectus or the accompanying letter of transmittal (the
&#147;Letter of Transmittal&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company hereby appoints Wilmington Trust Company, a
corporation organized and existing under the laws of the State
of Delaware, to act as exchange agent (the &#147;Exchange
Agent&#148;) in connection with the Exchange Offer. References
hereinafter to &#147;you&#148; shall refer to Wilmington Trust
Company, as Exchange Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Exchange Offer is expected to be commenced by the Company on
or about December&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2005. The
Letter of Transmittal accompanying the Prospectus (or, in the
case of book-entry securities, either the Letter of Transmittal
or the Automated Tender Offer Program (&#147;ATOP&#148;) system
of the Depository Trust Company (&#147;DTC&#148;) is to be used
by the holders of the Old Notes to tender into the Exchange
Offer, and contains instructions with respect to the delivery of
Old Notes tendered. The Exchange Agent&#146;s obligations with
respect to receipt and inspection of the Letter of Transmittal
in connection with the Exchange Offer shall be satisfied for all
purposes hereof by (1)&nbsp;inspection of the electronic message
transmitted to the Exchange Agent by Exchange Offer participants
in accordance with ATOP of the Depository Trust Company
(&#147;DTC&#148;), and by otherwise observing and complying with
all procedures established by DTC in connection with ATOP, to
the extent that ATOP is utilized by Exchange Offer participants,
or (2)&nbsp;by inspection of the Letter of Transmittal by each
respective holder of Old Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Exchange Offer shall expire at 5:00 pm, New York City time,
on [January&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], 2006, or on
such later date or time to which the Company may extend the
Exchange Offer (the &#147;Expiration Date&#148;). Subject to the
terms and conditions set forth in the Prospectus, the Company
expressly reserves the right to extend the Exchange Offer from
time to time and may extend the Exchange Offer by giving oral
(confirmed in writing) or written notice to you at any time
before 9:00&nbsp;a.m., New&nbsp;York City time, on the business
day following the previously scheduled Expiration Date, and in
such case the term &#147;Expiration Date&#148; shall mean the
time and date on which the Exchange Offer as so extended shall
expire.
</DIV>

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The Company expressly reserves the right, in its sole
discretion, to delay, amend or terminate the Exchange Offer, and
not to accept for exchange any Old Notes not theretofore
accepted for exchange, in among other cases upon the occurrence
of any of the conditions of the Exchange Offer specified in the
Prospectus under the caption &#147;The Exchange
Offer&nbsp;&#151; Conditions&#148; The Company will give to you
as promptly
</DIV>

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as practicable oral (confirmed in writing) or written notice of
any delay, amendment, termination or non-acceptance.
</DIV>

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In carrying out your duties as Exchange Agent, you are to act in
accordance with the following instructions:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1.&nbsp;You will perform such duties and only such duties as are
specifically set forth herein or in the section of the
Prospectus captioned the &#147;The Exchange Offer&#148;, in the
Letter of Transmittal accompanying the Prospectus and such
duties which are necessarily incidental thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.&nbsp;You will establish a book-entry account with respect to
the Old Notes at DTC for purposes of the Exchange Offer as soon
as practicable after the date of the Prospectus, and any
financial institution that is a participant in DTC&#146;s
systems may make book-entry delivery of the Old Notes by causing
DTC to transfer such Old Notes into your account in accordance
with DTC&#146;s procedure for such transfer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3.&nbsp;You are to examine each of the Letters of Transmittal
and certificates for Old Notes (or confirmation of book-entry
transfers into your account at DTC) and any other documents
delivered or mailed to you by or for holders of the Old Notes to
ascertain whether: (i)&nbsp;the Letters of Transmittal,
certificates and any such other documents are duly executed and
properly completed in accordance with instructions set forth
therein and in the Prospectus and that such book-entry
confirmations are in due and proper form and contain the
information required to be set forth therein, and (ii)&nbsp;the
Old Notes have otherwise been properly tendered. In each case
where the Letter of Transmittal or any other document has been
improperly completed or executed or where book-entry
confirmations are not in due and proper form or omit certain
information or any of the certificates for Old Notes are not in
proper form for transfer or some other irregularity in
connection with the acceptance of the Exchange Offer exists, you
will (i)&nbsp;endeavor to inform the presenters of the need for
fulfillment of all requirements and to take any other action as
may be necessary or advisable to cause such irregularity to be
corrected and (ii)&nbsp;as soon as reasonably practicable inform
the Company of any uncorrected irregularity.
</DIV>

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4.&nbsp;With the approval of the Chief Executive Officer or
Chief Financial Officer of the Company (such approval, if given
orally, promptly to be confirmed in writing) or any other party
designated by such officer in writing, you are authorized to
waive any irregularities in connection with any tender of Old
Notes pursuant to the Exchange Offer. You are not otherwise
authorized to waive any such irregularities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5.&nbsp;A the written request of the Company or its counsel, you
shall notify tendering holders of Old Notes in the event of any
extension, termination or amendment of the Exchange Offer. In
the event of a termination of the Exchange Offer, you shall as
soon as reasonably practicable, return all tendered Old Notes to
the persons entitled thereto, at the request and expense of the
Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
6.&nbsp;Tenders of Old Notes may be made only as set forth in
the Letter of Transmittal and in the section of the Prospectus
captioned &#147;The Exchange Offer&nbsp;&#151; Procedures for
Tendering&#148; and Old Notes shall be considered properly
tendered to you only when tendered in accordance with the
procedures set forth therein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Notwithstanding the provisions of this paragraph&nbsp;5, Old
Notes which the Chief Executive Officer or Chief Financial
Officer of the Company or any other party designated by any such
officer in writing shall approve as having been properly
tendered shall be considered to be properly tendered (such
approval, if given orally, shall be promptly confirmed in
writing).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
7.&nbsp;You shall promptly advise the Company with respect to
any Old Notes delivered subsequent to the Expiration Date and
accept its instructions with respect to disposition of such Old
Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
8.&nbsp;You shall accept tenders:
</DIV>

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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;in cases where the Old Notes are registered in two or
    more names only if signed by all named holders;</TD>
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    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;in cases where the signing person (as indicated on the
    Letter of Transmittal) is acting in a fiduciary or a
    representative capacity only when proper evidence of his or her
    authority so to act is submitted;&nbsp;and</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;from persons other than the registered holder of Old
    Notes provided that customary transfer requirements, including
    any payment of applicable transfer taxes, are fulfilled.</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You shall accept partial tenders of Old Notes where so indicated
and as permitted in the Letter of Transmittal and return any
untendered Old Notes to the holder (or such other person as may
be designated in the Letter of Transmittal) as promptly as
practicable after expiration or termination of the Exchange
Offer. If physical certificates have been delivered to you, a
new certificate for the remainder of the principal amount of the
Old Notes will be sent to the holders of Old Notes unless
otherwise indicated by partial tendering holders of Old Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
9.&nbsp;Upon satisfaction or waiver of all of the conditions to
the Exchange Offer, the Company will notify you (such notice if
given orally, promptly to be confirmed in writing) of its
acceptance, promptly after the Expiration Date, of all Old Notes
properly tendered and you, on behalf of the Company, will cause
the exchange of such Old Notes for New Notes and cause such Old
Notes to be cancelled. Delivery of New Note, will be made on
behalf of the Company by the trustee at the rate of $1,000
principal amount of New Notes for each $1,000 principal amount
of the Old Notes tendered, and, in the case of Old Notes
tendered, promptly after notice (such notice if given orally,
promptly to be confirmed in writing) of acceptance of said Old
Notes by the Company; <I>provided</I>, <I>however</I>, that in
all cases, Old Notes tendered pursuant to the Exchange Offer
will be exchanged only after timely receipt by you of
certificates for such Old Notes (or confirmation of book-entry
transfer into your account at DTC), a properly completed and
duly executed Letter of Transmittal (or facsimile thereof) and
an agent&#146;s message (as defined in the Prospectus) with any
required signature guarantees and any other required document.
Unless otherwise instructed by the Company, you shall issue New
Notes only in denominations of $1,000 or any integral multiple
thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
10.&nbsp;Tenders pursuant to the Exchange Offer are irrevocable
after the Expiration Date, except that, subject to the terms and
upon the conditions set forth in the Prospectus and the Letter
of Transmittal, Old Notes tendered pursuant to the Exchange
Offer may be withdrawn at any time on or prior to the Expiration
Date in accordance with the terms of the Exchange Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
11.&nbsp;The Company shall not be required to exchange any Old
Notes tendered if any of the conditions set forth in the
Prospectus are not met. Notice of any decision by the Company
not to exchange any Old Notes tendered shall be given (such
notices if given orally, promptly shall be confirmed in writing)
by the Chief Executive Officer or Chief Financial Officer of the
Company to you.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
12.&nbsp;If, pursuant to the Prospectus, the Company does not
accept for exchange all or part of the Old Notes tendered
because of an invalid tender, the occurrence of certain other
events set forth in the Prospectus or otherwise, you shall as
soon as practicable after the expiration or termination of the
Exchange Offer return those certificates for unaccepted Old
Notes (or effect appropriate book-entry transfer), together with
any related required documents and the Letters of Transmittal
relating thereto that are in your possession, to the persons who
deposited them (or effected such book-entry transfer).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
13.&nbsp;All certificates for reissued Old Notes, unaccepted Old
Notes or New Notes, as the case may be (other than those
effected by book-entry transfer), shall be forwarded by
(a)&nbsp;first-class mail, postage pre-paid under a blanket
surety bond protecting you and the Company from loss or
liability arising out of the non-receipt or non-delivery of such
certificates or (b)&nbsp;by registered mail insured separately
for the replacement value of each of such certificates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
14.&nbsp;You are not authorized to pay or offer to pay any
concessions, commissions or solicitation fees to any broker,
dealer, bank or other persons or to engage or utilize any
persons to solicit tenders.
</DIV>

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15.&nbsp;As Exchange Agent hereunder you:
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    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;will be regarded as making no representations and
    having no responsibilities as to the validity, sufficiency,
    value or genuineness of any of the Old Notes deposited with you
    pursuant to the Exchange Offer, and will not be required to and
    will make no representation as to the validity, value or
    genuineness of the Prospectus;</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;shall not be obligated to take any legal action
    hereunder which might in your reasonable judgment involve any
    expense or liability, unless you shall have been furnished with
    reasonable indemnity;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;shall not be liable to the Company for any action taken
    or omitted by you, or any action suffered by you to be taken or
    omitted, without negligence, misconduct or bad faith on your
    part, by reason of or as a result of the administration of your
    duties hereunder in accordance with the terms and conditions of
    this Agreement or by reason of your compliance with the
    instructions set forth herein or with any instructions, whether
    written or oral or otherwise, delivered to you pursuant hereto,
    and may reasonably rely on and shall be protected in acting in
    good faith in reliance upon any certificate, instrument,
    opinion, notice, letter, facsimile or other document or security
    delivered to you and reasonably believed by you to be genuine
    and to have been signed by the proper party or parties;</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (d)&nbsp;may reasonably act upon any tender, statement, request,
    comment, agreement or other instrument whatsoever not only as to
    its due execution and validity and effectiveness of its
    provisions, but also as to the truth and accuracy of any
    information contained therein, which you shall in good faith
    reasonably believe to be genuine or to have been signed or
    represented by a proper person or persons;</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (e)&nbsp;may rely on and shall be protected in acting upon
    notice or instructions, whether written or oral or otherwise,
    from the Chief Executive Officer or Chief Financial Officer of
    the Company or any other party designated by any such officer of
    the Company;</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (f)&nbsp;shall not advise any person tendering Old Notes
    pursuant to the Exchange Offer as to whether to tender or
    refrain from tendering all or any portion of Old Notes or as to
    the market value, decline or appreciation in market value of any
    Old Notes that may or may not occur as a result of the Exchange
    Offer or as to the market value of the New Notes;</TD>
</TR>

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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (g)&nbsp;may consult with counsel with respect to any questions
    relating to your duties and responsibilities, and the written
    advice or opinion of such counsel shall be full and complete
    authorization and protection in respect of any action taken,
    suffered or omitted by you hereunder in good faith and in
    reliance thereon;&nbsp;and</TD>
</TR>

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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (h)&nbsp;shall act solely as agent of the Company and shall not
    assume any obligation, or relationship of agency or trust for
    or, with any of the owners or holders of the Old Notes.</TD>
</TR>

</TABLE>

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16.&nbsp;You shall send to all holders of Old Notes a copy of
the Prospectus, the Letter of Transmittal, the Notice of
Guaranteed Delivery (as defined in the Prospectus) and such
other documents (collectively, the &#147;Exchange Offer
Documents&#148;) as may be furnished by the Company to commence
the Exchange Offer and take such other action as may from time
to time be requested by the Company or its counsel (and such
other action as you may reasonably deem appropriate) to furnish
copies of the Exchange Offer Documents or such other forms as
may be approved from time to time by the Company, to all holders
of Old Notes and to all persons requesting such documents and to
accept and comply with telephone requests for information
relating to the Exchange Offer, provided that such information
shall relate only to the procedures for accepting (or
withdrawing from) the Exchange Offer. The Company will furnish
you with copies of such documents at your request. All other
requests for information relating to the Exchange Offer shall be
directed to the Company, Attention: Chief Executive Officer or
Chief Financial Officer, at the Company&#146;s offices at
767&nbsp;Fifth Avenue, New York, NY, telephone number:
(212)&nbsp;702-4300.
</DIV>

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17.&nbsp;You shall advise by facsimile transmission, email, or
by telephone, and promptly thereafter confirm&nbsp;in writing to
the Chief Financial Officer or Controller of the Company and to
Steven&nbsp;L. Wasserman,&nbsp;Esq., at&nbsp;DLA Piper Rudnick
Gray Cary US LLP, our outside counsel (email
address:&nbsp;steven.wasserman@dlapiper.com and facsimile
(212)&nbsp;835-6001), and such other person or persons as the
Company may request orally and confirmed in writing, daily, and
more frequently during the week immediately preceding the
Expiration Date and if otherwise requested, up to and including
the Expiration Date, as to the aggregate principal amount of Old
Notes which have been tendered pursuant to the Prospectus and
the items received by you pursuant to the Exchange Offer and
this Agreement, separately reporting and giving cumulative
totals as to items properly received and items improperly
received. In addition, you will also inform, and cooperate in
making available to, the Company or any such other person or
persons designated by the Company upon oral request confirmed in
writing from time to time prior to the Expiration Date of such
other information as it or he or she may reasonably request.
Such cooperation shall include, without limitation, the granting
by you to the Company and such person as the Company may request
of access to those persons on your staff who are responsible for
receiving tenders, in order to ensure that immediately prior to
the Expiration Date the Company shall have received information
in sufficient detail to enable it to decide whether to extend
the Exchange Offer, including the identity of the holders of Old
Notes who have not tendered such Old Notes as of the date such
request was made. As soon as reasonably practicable following
the Expiration Date, you shall prepare a final list of all
persons whose tenders were accepted, the aggregate principal
amount of Old Notes tendered, the aggregate principal amount of
Old Notes accepted and the identity of any participating
broker-dealers and the aggregate principal amount of New Notes
delivered to each, and deliver said list to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
18.&nbsp;Letters of Transmittal and Notices of Guaranteed
Delivery shall be stamped by you as to the date and, after the
expiration of the Exchange Offer, the time of receipt thereof
shall be preserved by you for a period of time at least equal to
the period of time you customarily preserve other records
pertaining to the transfer of securities, or one year, whichever
is longer, and thereafter shall be delivered by you to the
Company. You shall dispose of unused Letters of Transmittal and
other surplus materials in accordance with your customary
procedures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
19.&nbsp;You hereby expressly waive any lien, encumbrance or
right of set-off whatsoever that you may have with respect to
funds deposited with you for the payment of transfer taxes by
reasons of amounts, if any, borrowed by the Company, or any of
its subsidiaries or affiliates pursuant to any loan or credit
agreement with you or for compensation owed to you hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
20.&nbsp;For services rendered as Exchange Agent hereunder you
shall be entitled to such compensation and reimbursement of
out-of-pocket expenses as agreed in the attached
<U>Schedule&nbsp;A.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
21.&nbsp;You hereby acknowledge receipt of the Prospectus, the
Letter of Transmittal and the other documents associated with
the Exchange Offer attached hereto and further acknowledge that
you have examined each of them. Any inconsistency between this
Agreement, on the one hand, and the Prospectus, the Letter of
Transmittal and such other forms (as they may be amended from
time to time), on the other hand, shall be resolved in favor of
the Prospectus, the Letter of Transmittal and such other forms,
except with respect to the duties, liabilities and
indemnification of you as Exchange Agent which shall be
controlled by this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
22.&nbsp;The Company agrees to indemnify and hold you harmless
in your capacity as Exchange Agent hereunder against any
liability, cost or expense, including reasonable attorneys&#146;
fees and expenses, arising out of or in connection with your
appointment as Exchange Agent and the performance of your duties
hereunder, including, without limitation, any act, omission,
delay or refusal made by you in reasonable reliance upon any
signature, endorsement, assignment, certificate, order, request,
notice, instruction or other instrument or document reasonably
believed by you to be valid, genuine and sufficient and in
accepting any tender or effecting any transfer of Old Notes
reasonably believed by you in good faith to be authorized, and
in delaying or refusing in good faith to accept any tenders or
effect any transfer of Old Notes; <U>provided</U>,
<U>however</U>, that, anything in this Agreement to the contrary
notwithstanding the Company shall not be liable for indemnifica-
</DIV>

<P align="center" style="font-size: 10pt;">5

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt;">
tion or otherwise for any loss, liability, cost or expense to
the extent arising out of your gross negligence, willful
misconduct or bad faith. Failure by you to notify the Company of
any claim for which you may seek indemnity shall not relieve the
Company of its obligations under this paragraph&nbsp;22. The
Company shall be entitled to participate, at its own expense, in
the defense of any such claim or other action and, if the
Company so elects, the Company may assume the defense of any
pending or threatened actions against you in respect of which
indemnification may be sought hereunder. Notwithstanding the
foregoing, you may have separate counsel and the Company shall
pay the reasonable fees and expenses of such counsel. Without
the prior written consent of the Company, which consent will not
be unreasonably withheld, you shall not settle, compromise or
consent to the entry of any judgment in any pending or
threatened claim, action or proceeding in respect of which
indemnification could be sought in accordance with the
indemnification provisions of this Agreement. The Company&#146;s
obligations under this paragraph&nbsp;22 shall survive the
termination of this Agreement and the discharge of your
obligation hereunder and any other termination of this Agreement
under any federal or state bankruptcy law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
23.&nbsp;You shall arrange to comply with all requirements under
the tax laws of the United States, including those relating to
missing Tax Identification Numbers, and shall file any
appropriate reports with the Internal Revenue Service. The
Company understands that you are required, in certain instances,
to deduct twenty-eight percent (28%) with respect to interest
paid on the New Notes and proceeds from the sale, exchange,
redemption or retirement of the New Notes from holders who have
not supplied their correct Taxpayer Identification Numbers or
required certification. Such funds will be turned over to the
Internal Revenue Service in accordance with applicable
regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
24.&nbsp;You shall notify the Company of the amount of any
transfer taxes payable in respect of the exchange of Old Notes
and shall deliver or cause to be delivered, in a timely manner,
to each governmental authority to which any transfer taxes are
payable in respect of the exchange of Old Notes your check in
the amount of all transfer taxes so payable, and the Company
shall reimburse you for the amount of any and all transfer taxes
payable in respect of the exchange of Old Notes;
<U>provided</U>, <U>however</U>, that you shall reimburse the
Company for amounts refunded to you in respect of your payment
of any such transfer taxes, at such time as such refund is
received by you.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
25.&nbsp;This Agreement and your appointment as Exchange Agent
hereunder shall be construed and enforced in accordance with the
laws of the State of New York applicable to agreements made and
to be performed entirely within such state, and without regard
to conflicts of law principles, and shall inure to the benefit
of, and the obligations created hereby shall be binding upon,
the successors and assigns of each of the parties hereto and
nothing in this Agreement, express or implied, is intended to or
shall confer upon any other person any right, benefit or remedy
of any nature whatsoever under or by reason of this Agreement.
Without limitation of the foregoing, the parties hereto
expressly agree that no holder of Old Notes or New Notes shall
have any right, benefit or remedy of any nature whatsoever under
or by reason of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
26.&nbsp;This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original
and all of which taken together shall constitute one and the
same agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
27.&nbsp;In case any provision of this Agreement shall be
invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way
be affected or impaired thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
28.&nbsp;This Agreement shall not be deemed or construed to be
modified, amended, rescinded, canceled or waived, in whole or in
part, except by a written instrument signed by a duly authorized
representative of the party to be charged.
</DIV>

<P align="center" style="font-size: 10pt;">6

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
29.&nbsp;Unless otherwise provided herein, all notices, requests
and other communications to any party hereunder shall be in
writing (including facsimile) and shall be given to such party,
addressed to it, as its address or telecopy number set forth
below:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
     If to the Company:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    American Real Estate Partners, L.P.</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    American Real Estate Finance Corp.</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    767 Fifth Avenue</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    New York, NY</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Facsimile: (212)&nbsp;386-7663</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Attention: Jon F. Weber</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
     With a copy to:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    DLA Piper Rudnick Gray Cary US LLP</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    1251 Avenue of the Americas</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    New York, New York 10020</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Facsimile: (212)&nbsp;835-6001</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Attention: Steven L. Wasserman</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James
    T. Seery</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
     If to the Exchange Agent:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Wilmington Trust Company</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Rodney Square North</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    1100 North Market Street</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Wilmington, Delaware 19890</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Facsimile: (302)&nbsp;636-4145</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Attention: Corporate Trust&nbsp;Operations</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
     With a copy to:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Curtis, Mallet-Prevost, Colt&nbsp;&#38; Mosle LLP</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    101 Park Avenue, Suite&nbsp;3500</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    New York, New York 10178</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Facsimile: (212)&nbsp;697-1559</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Attention: Lawrence Goodman</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kathryn
    Alisbah</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
30.&nbsp;Unless terminated earlier by the parties hereto, this
Agreement shall terminate 90&nbsp;days following the Expiration
Date. Notwithstanding the foregoing, Paragraphs&nbsp;19, 20, 22
and 23 shall survive the termination of this Agreement. Upon any
termination of this Agreement, you shall promptly deliver to the
Company any certificates for notes, funds or property
(including, without limitation, Letters of Transmittal and any
other documents relating to the Exchange Offer) then held by you
as Exchange Agent under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
31.&nbsp;This Agreement shall be binding and effective as of the
date hereof.
</DIV>

<DIV align="center" style="font-size: 10pt;">
[Remainder of page intentionally left blank.]
</DIV>

<P align="center" style="font-size: 10pt;">7

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Please acknowledge receipt of this Agreement and confirm the
arrangements herein provided by
</DIV>

<DIV align="center" style="font-size: 10pt;">
signing and returning the enclosed copy.
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B>AMERICAN REAL ESTATE PARTNERS, L.P.</B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 48pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="2%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD align="left">
     </TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 3pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt" align="left">&nbsp;</DIV></TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="left">
    Name:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Keith A.
    Meister</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="8%"></TD>
    <TD width="52%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>Title:</TD>
    <TD align="left">
    Chief Executive Officer</TD>
</TR>

</TABLE>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B>AMERICAN REAL ESTATE FINANCE CORP.</B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 48pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="2%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD align="left">
     </TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 3pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt" align="left">&nbsp;</DIV></TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="left">
    Name:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Keith A.
    Meister</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="8%"></TD>
    <TD width="52%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>Title:</TD>
    <TD align="left">
    Chief Executive Officer</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 48pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Accepted as the date
</DIV>

<DIV align="left" style="font-size: 10pt;">
first above written:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>WILMINGTON TRUST COMPANY,</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<B>as Exchange Agent</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
By:&nbsp;
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="left">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt" align="left">&nbsp;</DIV></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
Name:&nbsp;
</DIV>

<DIV align="left" style="font-size: 10pt;">
Title:&nbsp;&nbsp;&nbsp;
</DIV>

<P align="center" style="font-size: 10pt;">8

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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
