<SUBMISSION>
<ACCESSION-NUMBER>0000891618-05-000318
<TYPE>424B3
<PUBLIC-DOCUMENT-COUNT>3
<FILING-DATE>20050504
<DATE-OF-FILING-DATE-CHANGE>20050504
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CALPINE CORP
<CIK>0000916457
<ASSIGNED-SIC>4911
<IRS-NUMBER>770212977
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>424B3
<ACT>33
<FILE-NUMBER>333-116510
<FILM-NUMBER>05798300
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>50 WEST SAN FERNANDO ST
<CITY>SAN JOSE
<STATE>CA
<ZIP>95113
<PHONE>4089955115
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>50 W SAN FERNANDO
<STREET2>SUITE 500
<CITY>SAN JOSE
<STATE>CA
<ZIP>95113
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>f99576r3e424b3.htm
<DESCRIPTION>PROSPECTUS
<TEXT>
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<TITLE>e424b3</TITLE>
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="right" style="font-size: 10pt;">
Filed Pursuant to Rule&nbsp;424(b)(3)
</DIV>

<DIV align="right" style="font-size: 10pt;">
Registration
<FONT style="white-space: nowrap">No.&nbsp;333-116510
</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>PROSPECTUS</B>
</DIV>

<CENTER>
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<TR style="font-size: 1pt;">
    <TD width="26%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="71%">&nbsp;</TD>
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<TR>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <IMG src="f99576r3f9957699.gif" alt="(CALPINE LOGO)"></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    $900,000,000<BR>
     <B>Calpine Corporation<BR>
    <BR>
     4.75% Contingent Convertible Callable Senior Notes Due
    November&nbsp;15, 2023<BR>
    and Shares of Common Stock Issuable Upon Conversion of the
    Senior Notes</B></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 27%; 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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This prospectus covers resales by selling security holders of
our 4.75% contingent convertible senior notes due
November&nbsp;15, 2023 and shares of our common stock into which
the notes are convertible.
</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;
Our 4.75% contingent convertible senior notes have the following
provisions:
</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="16%"></TD>
    <TD width="1%"></TD>
    <TD width="83%"></TD>
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<TR>
    <TD valign="top">
    Interest Payments:</TD>
    <TD></TD>
    <TD valign="top">
    May&nbsp;15 and November&nbsp;15 of each year.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Conversion Value:</TD>
    <TD></TD>
    <TD valign="top">
    Subject to certain exceptions described under &#147;Description
    of the Notes,&#148; at the time notes are tendered for
    conversion, the conversion value of the notes will be determined
    by multiplying the conversion rate by the &#147;five day average
    closing price,&#148; which equals the average of the closing
    prices for our common stock on the five consecutive trading days
    beginning on the second trading day following the day you submit
    your notes for conversion. We will deliver the conversion value
    to you as follows:</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;an amount in cash equal to the lesser of
    (1)&nbsp;the conversion value and (2)&nbsp;the principal amount
    of the notes to be converted, plus</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;if the conversion value is greater than the
    principal amount of the notes to be converted, a number of
    shares of our common stock determined by dividing the difference
    between the conversion value and the principal amount of the
    notes to be converted by the five day average closing price.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Conversion Rate:</TD>
    <TD></TD>
    <TD valign="top">
    The initial conversion price is $6.50&nbsp;per share of common
    stock. This represents an initial conversion rate of
    153.8462&nbsp;shares of common stock per $1,000 principal amount
    of notes.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Conversion Rights:</TD>
    <TD></TD>
    <TD valign="top">
    The notes are convertible, at your option, into cash and shares
    of our common stock in the following circumstances:</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;During any calendar quarter, if the closing price of
    our common stock over a specified number of trading days during
    the previous calendar quarter is more than 120% of the
    conversion price of the notes in effect on the last trading day
    of the previous calendar quarter;</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;If we have called your notes for redemption and the
    redemption has not yet occurred;</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;If the average trading price of $1,000 principal
    amount of the notes for each day of a five consecutive trading
    day period is less than 95% of the product of the closing sale
    price of our common stock and the conversion rate;</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;Upon the occurrence of certain corporate
    transactions as described under &#147;Description of
    Notes&nbsp;&#151; Conversion Rights&nbsp;&#151; Conversion Upon
    Specified Corporate Transactions.&#148;</TD>
</TR>

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

<TR>
    <TD valign="top">
    Repurchase Options:</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;By noteholders upon a change of control;&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;By noteholders on November&nbsp;15, 2009, 2013 and
    2018</TD>
</TR>

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

<TR>
    <TD valign="top">
    Redemption:</TD>
    <TD></TD>
    <TD valign="top">
    The notes are callable by us at any time on or after
    November&nbsp;22, 2009</TD>
</TR>

</TABLE>

<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;
The notes are senior, unsecured obligations that rank equally
with our existing and future unsecured and unsubordinated
indebtedness. See &#147;Description of Notes&nbsp;&#151;
Ranking.&#148;
</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;
Prior to this offering, the notes have been eligible for trading
on the PORTAL Market of the Nasdaq Stock Market. Notes sold by
means of this prospectus are not expected to remain eligible for
trading on the PORTAL Market. We do not intend to list the notes
for trading on any national securities exchange or on the Nasdaq
Stock Market.
</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;
Our common stock trades on The New York Stock Exchange under the
symbol &#147;CPN.&#148; The last reported sales price on
April&nbsp;18, 2005 was $2.43 per share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>See &#147;Risk Factors&#148; on page&nbsp;7 of this
prospectus to read about factors you should consider before
purchasing the notes or our common stock.</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;
<B>Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these
securities or passed upon the adequacy or accuracy of this
prospectus. Any representation to the contrary is a criminal
offense.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The date of this prospectus is April&nbsp;19, 2005.
</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>

<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="90%">&nbsp;</TD>
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    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
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<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Page</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" 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">
    &nbsp;<A HREF='#102'>Summary</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" 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='#103'>Risk Factors</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#104'>Consolidated Ratio of Earnings to Fixed
    Charges</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" 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='#105'>Where You Can Find More Information About
    Us and This Offering</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" 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='#106'>Forward-Looking Statements</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#107'>Use of Proceeds</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#108'>Selling Holders</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#109'>Plan of Distribution</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#110'>Description of the Notes</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#111'>Price Range of Common Stock</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#112'>Description of Capital Stock</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#113'>Material Federal Income Tax Consequences</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#114'>Legal Matters</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>59</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#115'>Experts</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>59</TD>
    <TD>&nbsp;</TD>
</TR>

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</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='102'></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>SUMMARY</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>This summary highlights information contained elsewhere or
incorporated by reference in this prospectus. You should
carefully read the entire prospectus, including the risk
factors, the financial statements and the documents incorporated
by reference. Unless we have indicated otherwise, references
hereafter in this prospectus to &#147;Calpine,&#148;
&#147;we,&#148; &#147;us,&#148; and &#147;our&#148; or similar
terms are to Calpine Corporation and its consolidated
subsidiaries, excluding Calpine Capital Trust&nbsp;V, Calpine
Capital Trust&nbsp;IV, Calpine Capital Trust&nbsp;III, Calpine
Capital Trust&nbsp;II and Calpine Capital Trust. Unless we have
indicated otherwise, references hereafter in this prospectus to
&#147;$&#148; or &#147;dollar&#148; are to the lawful currency
of the United States.</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>Our Business</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 an integrated power company with a comprehensive and
growing power services business. Based in San&nbsp;Jose,
California, we were established as a corporation in 1984 and
operate through a variety of divisions, subsidiaries and
affiliates. We own and operate power generation facilities and
sell electricity, predominantly in the United States but also in
Canada and the United Kingdom. We focus on two efficient and
clean types of power generation technologies: natural gas-fired
combustion turbine and geothermal. We lease and operate a
significant fleet of geothermal power plants at The Geysers in
California, and have a net operating portfolio of 92 clean
burning natural gas power plants capable of producing 26,649
megawatts (&#147;MW&#148;) and an additional 11 plants in
construction. We offer to third parties energy procurement,
liquidation and risk management services through Calpine Energy
Services, L.P. (&#147;CES&#148;) and offer combustion turbine
component parts and repair and maintenance services world-wide
through Calpine Turbine Services (&#147;CTS&#148;), which
includes Power Systems Mfg., LLC (&#147;PSM&#148;) located in
Jupiter, Florida, and Netherlands-based Thomassen Turbine
Systems B.V. (&#147;TTS&#148;). We also offer engineering,
procurement, construction management, commissioning and
operations and maintenance (&#147;O&#38;M&#148;) services
through Calpine Power Services, Inc. (&#147;CPSI&#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;
Our integrated operating capabilities have given us a proven
track record in the development and construction of new power
facilities. Our Calpine Construct organization consists of an
experienced team of construction management professionals who
ensure that our projects are built using our standard design
specifications reflecting our exacting operational standards. We
have established relationships with leading equipment
manufacturers for gas turbine generators, steam turbine
generators, heat recovery steam generators and other key
equipment. While future projects will be developed only when we
have attractive power contracts in place, we will continue to
leverage these capabilities and relationships to ensure that our
power plants are completed on time and are the best built and
lowest cost energy facilities possible.
</DIV>

<DIV align="left" style="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 a sophisticated O&#38;M organization based in Folsom,
California which staffs and oversees the commissioning and
operations of our power plants. With the objective of enhancing
the performance of our modern portfolio of gas-fired power
plants and lowering our replacement parts and maintenance costs,
we capitalize on PSM&#146;s capabilities to design and
manufacture high performance combustion system and turbine blade
parts. PSM manufactures new vanes, blades, combustors and other
replacement parts for our plants and for those owned and
operated by third parties as well. It offers a wide range of Low
Emissions Combustion (&#147;LEC&#148;) systems and advanced
airfoils designed to be compatible for retrofitting or replacing
existing combustion systems or components operating in General
Electric and Siemens Westinghouse turbines.
</DIV>

<DIV align="left" style="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 have in place an experienced gas production and
management team which gives us a broad range of fuel sourcing
options, and we own 389&nbsp;billion cubic feet equivalent
(&#147;Bcfe&#148;) of net proved natural gas reserves located
primarily in the Sacramento Basin of California and Gulf Coast
regions of the United States. We are currently (as of March
2005) capable of producing, net to Calpine&#146;s interest,
approximately 100&nbsp;million cubic feet equivalent
(&#147;MMcfe&#148;) of natural gas per day.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
CES provides us with the trading and risk management services
needed to schedule power sales and to ensure fuel is delivered
to our power plants on time to meet delivery requirements and to
manage and optimize the value of our physical power generation
and gas production assets. CES currently manages approximately
3% of the U.S.&nbsp;gas and power demand. Our marketing and
sales organization complements CES&#146;s activities and is
organized not only to serve our traditional load serving client
base of local utilities, municipalities and
</DIV>
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
cooperatives but also to meet the needs of our growing list of
wholesale and large retail customers. As a general goal, we seek
to have 65% of our available capacity sold under long-term
contracts or hedged by our risk management group. Currently we
have 54% of our available capacity sold or hedged for 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;
Additionally, we continue to strengthen our system operations
management and information technology capabilities to enhance
the economic performance of our portfolio of assets in our major
markets and to provide load-following and ancillary services to
our customers. These operational optimization systems, combined
with our sales, marketing and risk management capabilities,
enable us to add value to traditional commodity products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Through our development and construction program and past
acquisitions, we have built and now operate a modern and
efficient portfolio of gas-fired generation assets. Our low cost
position, integrated operations and skill sets have allowed us
to weather a multi-year downturn in the North American energy
industry. We have demonstrated the flexibility to adapt to
fundamental market changes. Specifically, we responded to the
market downturn by reducing capital expenditures, selling or
monetizing various gas, power and contractual assets,
restructuring our equipment procurement obligations, and
reorganizing to reflect our transition from a development
focused company to a company focused on integrated operations
and services.
</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>The Market for Electricity</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 electric power industry represents one of the largest
industries in the United States and impacts nearly every aspect
of our economy, with an estimated end-user market of nearly
$268&nbsp;billion of electricity sales in 2004 based on
information published by the Energy Information Administration
of the Department of Energy (&#147;EIA&#148;). Historically, the
power generation industry has been largely characterized by
electric utility monopolies producing electricity from old,
inefficient, polluting, high-cost generating facilities selling
to a captive customer base. However, industry trends and
regulatory initiatives have transformed some markets into more
competitive grounds where load-serving entities and end-users
may purchase electricity from a variety of suppliers, including
independent power producers (&#147;IPPs&#148;), power marketers,
regulated public utilities and others. For the past decade, the
power industry has been deregulated at the wholesale level
allowing generators to sell directly to the load serving
entities such as public utilities, municipalities and electric
cooperatives. Although industry trends and regulatory
initiatives aimed at further deregulation have slowed, the power
industry continues to transform into a more competitive market.
</DIV>

<DIV align="left" style="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 North American Electric Reliability Council
(&#147;NERC&#148;) estimates that in the United States, peak
(summer) electric demand in 2004 totaled approximately
729,000&nbsp;MW, while summer generating capacity in 2004
totaled approximately 872,000&nbsp;MW, creating a peak summer
reserve margin of 143,000&nbsp;MW, or 19.6%, which compares to
an estimated peak summer reserve margin of 144,000&nbsp;MW, or
20.3% in 2003. Historically, utility reserve margins have been
targeted to be at least 15% above peak demand to provide for
load forecasting errors, scheduled and unscheduled plant outages
and local area grid protection. The United States market
consists of regional electric markets not all of which are
effectively interconnected, so reserve margins vary from region
to region.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Even though most new power plants are fueled by natural gas, the
majority of power generated in the U.S.&nbsp;is still produced
by coal and nuclear power plants. The EIA has estimated that
approximately 50% of the electricity generated in the
U.S.&nbsp;is fueled by coal, 20% by nuclear sources, 18% by
natural gas, 7% by hydro, and 5% from fuel oil and other
sources. As regulations continue to evolve, many of the current
coal plants will likely be faced with having to install a
significant amount of costly emission control devices. This
activity could cause some of the oldest and dirtiest coal plants
to be retired, thereby allowing a greater proportion of power to
be produced by cleaner natural gas-fired generation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Due primarily to the completion of gas-fired combustion turbine
projects, we have seen power supplies increase and higher
reserve margins in the last several years accompanied by a
decrease in liquidity in the energy trading markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
According to Edison Electric Institute (&#147;EEI&#148;)
published data, the growth rate of overall consumption of
electricity in 2004 compared to 2003 was estimated to be 1.9%.
The estimated growth rates in our major
</DIV>
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
markets were as follows: South Central (primarily Texas) 3.9%,
Pacific Southwest (primarily California) 3.3%, and Southeast
2.5%. The growth rate in supply has been diminishing with many
developers canceling or delaying completion of their projects as
a result of current market conditions. The supply and demand
balance in the natural gas industry continues to be strained
with gas prices averaging $6.13&nbsp;per million British thermal
unit (&#147;Btu&#148;) (&#147;MMBtu&#148;) in 2005 through
February, compared to averages of approximately $5.72 and
$6.20&nbsp;per MMBtu in the same periods in 2004 and 2003,
respectively. In addition, capital market participants are
slowly making progress in restructuring their portfolios,
thereby stabilizing financial pressures on the industry.
Overall, we expect the market to continue these trends and work
through the current oversupply of power in several regions
within the next few years. As the supply-demand picture
improves, we expect to see spark spreads (the difference between
the cost of fuel and electricity revenues) improve and capital
markets regain their interest in helping to repower America with
clean, highly efficient energy technologies.
</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>Recent Developments</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;
Please see the recent developments described in our Annual
Report on Form&nbsp;10-K for the year ended December&nbsp;31,
2004 which is incorporated by reference in this prospectus.
</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>Our Principal Executive Offices</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 corporation organized and existing under the laws of
the State of Delaware. Our principal executive offices are
located at 50 West San&nbsp;Fernando Street, San&nbsp;Jose,
California 95113. Our telephone number is (408)&nbsp;995-5115.
</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>The Notes</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">
    Interest</TD>
    <TD></TD>
    <TD valign="top">
    We will pay interest on the principal amount of the notes on May
    15 and November 15 of each year, beginning on May&nbsp;15, 2004.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Maturity</TD>
    <TD></TD>
    <TD valign="top">
    November 15, 2023.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Conversion Rights</TD>
    <TD></TD>
    <TD valign="top">
    You may surrender your notes for conversion into cash and shares
    of our common stock prior to the maturity date in the following
    circumstances:</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;during any calendar quarter commencing after the
    issuance of the notes, if our common stock price for at least 20
    trading days in the period of 30 consecutive trading days ending
    on the last trading day of the calendar quarter preceding the
    quarter in which the conversion occurs is more than 120% of the
    conversion price per share of our common stock in effect on that
    30th&nbsp;trading day;</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;if we have called the particular notes for
    redemption and the redemption has not yet occurred;</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;during the five trading day period after any five
    consecutive trading day period in which the trading price of
    $1,000 principal amount of the notes for each day of such
    five-day period was less than 95% of the product of the closing
    sale price of our common stock price on that day multiplied <BR>
     by the conversion rate;&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;upon the occurrence of specified corporate
    transactions described under &#147;Description of the
    Notes&nbsp;&#151; Conversion Rights.&#148;</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    The initial conversion price is $6.50&nbsp;per share of common
    stock. This represents an initial conversion rate of
    153.8462&nbsp;shares of</TD>
</TR>

</TABLE>
</DIV>

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

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<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>

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    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    common stock per $1,000 principal amount of notes. In certain
    circumstances the conversion rate will be subject to adjustment.
    See &#147;Description of the Notes&nbsp;&#151; Conversion Rate
    Adjustments.&#148;</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    Upon the occurrence of any of the circumstances described above,
    you may convert any of your outstanding notes for the conversion
    value. Subject to certain exceptions described in
    &#147;Description of the Notes,&#148; at the time notes are
    tendered for conversion, the conversion value you will receive
    will be determined by multiplying the conversion rate by the
    &#147;five day average closing price,&#148; which equals the
    average of the closing prices for our common stock on the five
    consecutive trading days beginning on the second trading day
    following the day you submit your notes for conversion. We will
    deliver the conversion value to you as follows:</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;an amount in cash, which we call the &#147;principal
    return,&#148; equal to the lesser of (1) the conversion value
    and (2) the principal amount of the notes to be converted,
    <I>plus</I></TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;if the conversion value is greater than the
    principal return, a number of shares of our common stock, which
    we refer to as the &#147;net shares,&#148; determined by
    dividing the &#147;net share amount,&#148; which is equal to the
    difference between the conversion value and the principal
    return, by the five day average closing price.</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    For example, if the five day average closing price were $8.20,
    you would receive $1,000 in principal return and 31&nbsp;net
    shares per $1,000 principal amount of the notes, as follows: <BR>
     <BR>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;153.8462
    (conversion price) * $8.20 (five day average closing price) =
    $1,261.54 (conversion value) <BR>
     <BR>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1,261.54
    (conversion value) &#151; $1,000 (principal return) = $261.54
    (net share amount) <BR>
     <BR>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$261.54
    (net share amount) / $8.20 (five day average closing price) = 31
    net shares</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    If the five day average closing price is $6.50 or less, you
    would receive the principal return, in cash, of $1,000 per
    $1,000 principal amount of the notes and no shares of our common
    stock, as at $6.50 or less, the conversion value would be less
    than or equal to the principal return: 153.8462 * $6.50 =
    $1,000.00.</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    We will pay the principal return and deliver the net shares as
    promptly as practicable after determination of the net share
    amount.</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    In addition, if we declare a cash dividend or distribution to
    all or substantially all of the holders of our common stock, the
    conversion price shall be decreased to equal the number
    determined by multiplying the conversion price in effect
    immediately prior to the record date for such dividend or
    distribution by the following fraction:</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: 8pt;">

<TR>
    <TD width="29%"></TD>
    <TD width="71%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <B>(Pre-Dividend Sale Price&nbsp;&#151; Dividend Adjustment
    Amount)</B></TD>
</TR>

</TABLE>

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

<TR>
    <TD width="29%"></TD>
    <TD width="71%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <B>_________________________________________________</B></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <B>(Pre-Dividend Sale Price)</B></TD>
</TR>

</TABLE>
</DIV>

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

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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%" 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">
    where &#147;Pre-Dividend Sale Price&#148; means the average
    common stock price for the three consecutive trading days ending
    on the trading day immediately preceding the ex-dividend date
    for such dividend or distribution. &#147;Dividend Adjustment
    Amount&#148; means the full amount of the dividend or
    distribution to the extent payable in cash applicable to one
    share of common stock.</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    A &#147;trading day&#148; means any regular or abbreviated
    trading day of The New York Stock Exchange.</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    Upon conversion, the holder will not receive any additional cash
    payment representing accrued but unpaid interest or liquidated
    damages, if any. See &#147;Description of the Notes&nbsp;&#151;
    Conversion Rights.&#148;</TD>
</TR>

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

<TR>
    <TD valign="top">
    Ranking</TD>
    <TD></TD>
    <TD valign="top">
    The notes will be our senior unsecured obligations and will rank
    equally in right of payment with all our existing and future
    senior indebtedness, including indebtedness under our secured
    term loans, our senior secured credit facility and our various
    series of outstanding secured and unsecured senior notes. The
    notes will be senior in right of payment to all our existing and
    future subordinated indebtedness.</TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    However, because the notes will not be guaranteed by our
    subsidiaries, they will be effectively junior to all
    indebtedness and other liabilities, including trade payables, of
    our subsidiaries. The indenture will permit our subsidiaries to
    incur unlimited additional indebtedness other than with respect
    to certain restrictions on liens and Sale and Leaseback
    Transactions. In addition, as of December&nbsp;31, 2004, we had
    $6.4&nbsp;billion ($7.1&nbsp;billion inclusive of the notes) of
    unsecured debt that would rank equally with the notes and
    $10.9&nbsp;billion of secured debt that would be effectively
    senior to the 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 cannot redeem the notes before November&nbsp;22, 2009. We may
    redeem all or a portion of the notes at any time on or after
    November&nbsp;22, 2009, at a price equal to 100% of the
    principal amount of the notes, plus accrued and unpaid interest
    and liquidated damages, if any, up to but not including the date
    of redemption, payable in cash. See &#147;Description of the
    Notes&nbsp;&#151; Optional Redemption of the Notes.&#148;</TD>
</TR>

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

<TR>
    <TD valign="top">
    Repurchase of Notes at the Option of the Holder</TD>
    <TD></TD>
    <TD valign="top">
    You may require us to repurchase all or a portion of your notes
    on November&nbsp;15, 2009, 2013 and 2018 for a purchase price
    equal to 100% of the principal amount of the notes plus accrued
    but unpaid interest and liquidated damages, if any, up to but
    not including the date of repurchase. We may choose to pay the
    repurchase price in cash or shares of our common stock, or a
    combination of cash and shares of our common stock. See
    &#147;Description of the Notes&nbsp;&#151; Repurchase Right at
    the Option of Holders.&#148;</TD>
</TR>

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

<TR>
    <TD valign="top">
    Change of Control</TD>
    <TD></TD>
    <TD valign="top">
    If we undergo a change in control, you may require us to
    repurchase all of your notes. We may pay for your notes in cash
    or registered shares of our common stock. The repurchase price
    will be equal to the issue price plus accrued but unpaid
    interest and</TD>
</TR>

</TABLE>
</DIV>

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<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">
    liquidated damages, if any, up to but not including the date of
    repurchase. If we pay the repurchase price in shares of our
    common stock, the common stock will be valued at 95% of the
    average closing prices of our common stock for the five trading
    days immediately preceding and including the third trading day
    prior to the date of repurchase. See &#147;Description of the
    Notes&nbsp;&#151; Change in Control.&#148;</TD>
</TR>

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

<TR>
    <TD valign="top">
    Book-Entry Form</TD>
    <TD></TD>
    <TD valign="top">
    We issued the notes in book-entry form without interest coupons
    and in minimum denominations of $1000. We have deposited global
    certificates with, or on behalf of, The Depository Trust
    Company, which we refer to as DTC, and registered them in the
    name of a nominee of DTC. Beneficial interests in any of the
    securities will be shown on, and transfers will be effected only
    through, records maintained by DTC or its nominee and any such
    interest may not be exchanged for certificated securities,
    except in limited circumstances. See &#147;Description of the
    Notes&nbsp;&#151; Book-Entry System.&#148;</TD>
</TR>

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

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

</TABLE>
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
<A name='103'></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;
Investing in the notes involves risk. Before making an
investment decision, you should carefully consider the following
risks as well as other information contained or incorporated by
reference in this prospectus. Any of the following risks could
materially adversely affect our business, financial condition or
results of operations. You could lose all or part of your
investment if any of the risks and uncertainties described
actually occur.
</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>Risks Relating to Calpine</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;
Please see the risk factors described in our Annual Report on
Form&nbsp;10-K for the year ended December&nbsp;31, 2004, for a
description of the risks relating to Calpine.
</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>Risks Relating to the Notes and Our Common Stock</B>
</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="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>We may not have the ability to raise the funds necessary
    to purchase, or may otherwise be restricted from purchasing, the
    notes if you exercise your option to require us to purchase the
    notes or if a change in control event triggers a requirement for
    us to purchase the notes.</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You may require us to repurchase all or any portion of your
notes on certain specified dates. The purchase price, equal to
100% of the principal amount of the notes plus accrued and
unpaid interest, and liquidated damages, if any, up to but not
including the repurchase date, is payable, at our option, in
cash, shares of our common stock or a combination of cash and
common stock. Our outstanding debt limits our ability to
repurchase any of the notes with cash, and we may be required or
choose to satisfy any repurchase of the notes solely through the
delivery of shares.
</DIV>

<DIV align="left" style="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 a change in control under the indenture, we will be
required to offer to repurchase all of the notes then
outstanding for cash or, at our option, registered shares of our
common stock. If the purchase price is paid in cash, it will
equal 100% of the principal amount of the notes plus accrued and
unpaid interest, and liquidated damages, if any, up to but not
including the repurchase date. Since the events that constitute
a change in control under the indenture will also constitute a
change in control under certain of our other outstanding debt,
upon each occurrence, we will be required to offer to repurchase
such other debt then outstanding. If a change in control under
our outstanding debt (including the notes) containing a change
in control provision requiring us to repurchase, or causing a
default under, such debt were to occur, as of December&nbsp;31,
2004, we could be required to repay up to an aggregate principal
amount of approximately $9.8&nbsp;billion plus accrued and
unpaid interest thereon. If any of our debt were accelerated in
connection with a change of control, it could cause defaults
under our other debt obligations. We would not have the
financial resources available to repay all of our debt that
could become payable upon a change in control and to repurchase
all of the notes for cash.
</DIV>

<DIV align="left" style="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 pay in shares of our common stock in any of the
circumstances described above is also subject to conditions,
including registration under the Securities Act, if required,
and we may not be able to meet those conditions. Furthermore,
because the market price of our common stock will be determined
prior to the repurchase date, you will bear the risk that our
common stock will decline in value between the date the market
price is calculated and the repurchase date.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Upon conversion of the notes, you may receive less
    proceeds than expected because the value of our common stock may
    decline between the day that you exercise your conversion right
    and the day the value of your shares is determined.</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The conversion value that you will receive upon conversion of
your notes is in part determined by the average of the closing
price per share of our common stock for the five trading days
<I>following </I>the second trading day after which the notes
are tendered for conversion. Accordingly, if the price of our
common stock decreases after you tender your notes for
conversion, the conversion value you receive may be adversely
affected.
</DIV>

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

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

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>We may not have sufficient funds to pay the principal
    return on the notes.</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon conversion of the notes, subject to certain exceptions
including the occurrence of a repurchase at the option of the
holders or a change of control, when we may pay in shares of our
common stock, we will be required to pay the principal return on
such notes. See &#147;Description of the Notes.&#148; If a
significant number of holders were to tender their notes for
conversion at any given time, we may not have the financial
resources available to pay the principal return on all such
notes tendered for conversion.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Before conversion, holders of the notes will not be
    entitled to any shareholder rights, but will be subject to all
    changes affecting our shares.</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If you hold notes, you will not be entitled to any rights with
respect to shares of our common stock, including voting rights
and rights to receive dividends or distributions. However, the
common stock you receive upon conversion of your notes will be
subject to all changes affecting our common stock. Except for
limited cases under the adjustments to the conversion price, you
will only be entitled to rights that we may grant with respect
to shares of our common stock if and when we deliver shares to
you upon your election to convert your notes into shares. For
example, if we seek approval from shareholders for a potential
merger, or if an amendment is proposed to our certificate of
incorporation or by-laws that requires shareholder approval,
holders of notes will not be entitled to vote on the merger or
amendment.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Future issuances of our securities could dilute your
    ownership.</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A substantial number of shares of our common stock are subject
to stock options and these notes and our other outstanding
series of convertible notes may be converted into shares of
common stock. As of March&nbsp;31, 2005, there were
25,836,389&nbsp;shares of our common stock underlying vested
stock options eligible for sale and there were an additional
43,314,370&nbsp;shares of our common stock issuable upon
conversion of our other outstanding convertible securities
(including the remaining outstanding HIGH TIDES and including
the notes and our other series of contingent convertible notes,
none of which is currently convertible but each of which, if it
became convertible, could result in a substantial number of
additional shares of our common stock being issuable upon
conversion).
</DIV>

<DIV align="left" style="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 also decide to raise additional funds through public or
private debt or equity financing to fund our operations. If we
raise funds by issuing equity securities, the percentage
ownership of current stockholders will be reduced and the new
equity securities may have rights prior to those of the common
stock issuable upon conversion of the notes. We cannot predict
the effect, if any, that future sales of our common stock or
notes, or the availability of shares of our common stock or
notes for future sale, will have on the market price of our
common stock or notes. Sales of substantial amounts of our
common stock (including shares issued upon the exercise of stock
options or warrants or the conversion of the notes), or the
perception that such sales could occur, may adversely affect
prevailing market prices for our common stock and notes.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Anti-takeover provisions may delay or prevent changes in
    control or deter a third party from acquiring us, limiting our
    stockholders&#146; ability to profit from such a
    transaction.</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are subject to the anti-takeover provisions of
Section&nbsp;203 of the Delaware General Corporation Law, which
prohibits us from engaging in a &#147;business combination&#148;
with an &#147;interested stockholder&#148; for a period of three
years after the date of the transaction in which the person
becomes an interested stockholder, unless the business
combination is approved in a prescribed manner. The application
of Section&nbsp;203 could have the effect of delaying or
preventing a change in control of 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;
Our amended and restated certificate of incorporation and bylaws
contain provisions governing the election and removal of our
board of directors. The certificate of incorporation also
provides that any business combination, as defined in the
certificate of incorporation, requires a stockholder vote, which
must be effected at a duly called meeting. The certificate of
incorporation further provides that a special meeting of
stockholders may only be called in certain prescribed
circumstances. These provisions of the certificate of
incorporation and bylaws could discourage potential acquisition
proposals and could delay or prevent a change in control. See
&#147;Description of Capital Stock.&#148;
</DIV>

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

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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;
On June&nbsp;5, 1997, we adopted a stockholders&#146; rights
plan, which is scheduled to expire on May&nbsp;1, 2005, unless
the rights issued pursuant to the rights plan are exercised as
described below prior to expiration. The rights plan was
implemented by declaring a dividend of one preferred share
purchase right for each outstanding share of our common stock
held on record as of June&nbsp;18, 1997, and directing the
issuance of one preferred share purchase right with respect to
each share of our common stock that shall become outstanding
thereafter until the rights become exercisable or they expire as
described below. Each right initially represents a contingent
right to purchase, under certain circumstances, one
one-thousandth of a share, called a &#147;unit,&#148; of our
Series&nbsp;A Participating Preferred Stock, par value
$.001&nbsp;per share, at a price of $140.00&nbsp;per unit,
subject to adjustment.
</DIV>

<DIV align="left" style="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 are acquired in a merger or other business combination
transaction after a person or group has acquired 15% or more of
our common stock, each right will entitle its holder to purchase
at the right&#146;s exercise price a number of the acquiring
company&#146;s shares of common stock having a market value of
twice the right&#146;s exercise price. In addition, if a person
or group acquires 15% or more of our common stock, each right
will entitle its holder (other than the acquiring person or
group) to purchase, at the right&#146;s exercise price, a number
of fractional shares of our participating preferred stock or
shares of our common stock having a market value of twice the
right&#146;s exercise price. The rights expire on May&nbsp;1,
2005, unless earlier exercised or redeemed. We can redeem the
rights at any time before the rights become exercisable, and
thereafter only in limited circumstances. See &#147;Description
of Capital Stock.&#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;
Section&nbsp;203, the rights plan, and certain provisions of our
certificate of incorporation, our bylaws and Delaware corporate
law, may have the effect of deterring hostile takeovers, or
delaying or preventing changes in control of our management,
including transactions in which stockholders might otherwise
receive a premium for their shares over then current market
prices.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Because the notes are not listed on an exchange or other
    trading market, it is unlikely that a market will develop for
    them and you should be prepared to hold them to maturity.</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There is no public market for the notes, which may significantly
limit:
</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 liquidity of any market that may develop;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    your ability to sell your 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">
    the price at which you will be able to sell your 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;
If a market for the notes were to develop, the notes could trade
at prices that may be higher or lower than the principal amount
or purchase price, depending on many factors, including
prevailing interest rates, the market for similar notes and our
financial performance. We do not intend to list the notes for
trading on any national securities exchange or on the Nasdaq
National Market, so you should be prepared to hold the notes to
maturity unless you convert them.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Deutsche Bank Securities Inc. advised us at the time of the
initial offering and sale of the notes that it planned to make a
market in the notes. Deutsche Bank Securities is not obligated,
however, to make a market for the notes, and may discontinue any
market-making activity at any time at its sole discretion. In
addition, market-making activity will be subject to the limits
imposed by the Securities Act of 1933 and the Securities
Exchange Act of 1934. Accordingly, no assurance can be given as
to the development or liquidity of any market for the notes.
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
<A name='104'></A>
</DIV>

<!-- link1 "CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES</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 table sets forth our consolidated ratio of
earnings to fixed charges for each of the last five years.
</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="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="9" align="center" nowrap><B>Year Ended December&nbsp;31,</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 style="font-size: 8pt;">
    <TD align="center" nowrap><B>2000</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>2001</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>2004</B></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 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>
    <TD>&nbsp;</TD>
    <TD 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="center" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    1.75x</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    1.31x</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    &#151;(1)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    &#151;(2)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    &#151;(3)</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;
For purposes of computing our consolidated ratio of earnings to
fixed charges, earnings consist of pretax income before
adjustment for minority interests in our consolidated
subsidiaries and income or loss from equity investees, plus
fixed charges, amortization of capitalized interest and
distributed income of equity investees, reduced by interest
capitalized, the minority interest in pre-tax income of
subsidiaries that have not incurred fixed charges and
distributions on our company-obligated HIGH TIDES. Fixed charges
consist of interest expensed and capitalized (including
amortized premiums, discounts and capitalized expenses related
to indebtedness), an estimate of the interest within rental
expense and the distributions on our HIGH TIDES.
</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    For the year ended December&nbsp;31, 2002, we had an
    earnings-to-fixed-charges coverage deficiency of approximately
    $589.5&nbsp;million, primarily as a result of (1)&nbsp;a pre-tax
    charge to earnings of $404.7&nbsp;million for equipment
    cancellation and asset impairment, (2) increased interest
    expense costs due to recent debt financings to support our
    growth, and (3)&nbsp;a significant decrease in electricity
    prices, gas prices and spark spreads, primarily as a result of
    weak market fundamentals as compared to the year ended
    December&nbsp;31, 2001.</TD>
</TR>

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

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    For the year ended December&nbsp;31, 2003, we had an
    earnings-to-fixed-charges coverage deficiency of approximately
    $283.9&nbsp;million, primarily as a result of (1)&nbsp;a pre-tax
    charge to earnings of $64.4&nbsp;million for equipment
    cancellation and asset impairment and $16.4&nbsp;million for
    long-term service agreement cancellation charges,
    (2)&nbsp;increased interest expense costs due to recent debt
    financings to support our growth, and (3)&nbsp;a decrease in
    average spark spreads per megawatt-hour and higher fuel expense
    in 2003 as compared with the same period in 2002.</TD>
</TR>

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

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    For the year ended December&nbsp;31, 2004, we had an
    earnings-to-fixed-charges coverage deficiency of approximately
    $988.2&nbsp;million, primarily as a result of (a)&nbsp;a
    $202.1&nbsp;million pre-tax impairment charge as a result of
    decreases in proved undeveloped reserves, (b)&nbsp;increased
    interest expense costs due to recent debt financings to support
    our growth, and (c)&nbsp;a decrease in average spark spreads per
    megawatt-hour and higher fuel expense in 2004 as compared with
    the same period in 2003.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='105'></A>
</DIV>

<!-- link1 "WHERE YOU CAN FIND MORE INFORMATION ABOUT US AND THIS OFFERING" -->

<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 ABOUT US AND THIS
OFFERING</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 filed with the Securities and Exchange Commission, or
SEC, a registration statement on Form&nbsp;S-3 under the
Securities Act, to register the notes and common stock offered
by this prospectus. This prospectus does not contain all of the
information included in the registration statement and the
exhibits and the schedules to the registration statement. We
strongly encourage you to read carefully the registration
statement and the exhibits and the schedules to the registration
statement.
</DIV>

<DIV align="left" style="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 statement made in this prospectus concerning the contents of
any contract, agreement or other document is only a summary of
the actual contract, agreement or other document. If we have
filed any contract, agreement or other document as an exhibit to
the registration statement, you should read the exhibit for a
more complete understanding of the document or matter involved.
Each statement regarding a contract, agreement or other document
is qualified in its entirety by reference to the actual document.
</DIV>

<DIV align="left" style="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 file annual, quarterly and special reports, proxy statements
and other information with the SEC. You may obtain any document
we file with the SEC at the SEC&#146;s public reference room in
Washington,&nbsp;D.C. You may obtain information on the
operation of the SEC&#146;s public reference facilities by
calling the SEC at 1-800-SEC-0330. You can request copies of
these documents, upon payment of a duplicating fee, by writing
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
to the SEC at its principal office at 450&nbsp;Fifth Street,
N.W., Washington,&nbsp;D.C. 20549-1004. Our SEC filings are also
accessible through the Internet at the SEC&#146;s website at
http://www.sec.gov.
</DIV>

<DIV align="left" style="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 permits us to &#147;incorporate by reference&#148; into
this prospectus the information contained in documents that we
file with it, which means that we can disclose important
information to you by referring you to those documents. The
information incorporated by reference is considered to be a part
of this prospectus. Information in this prospectus supersedes
information incorporated by reference that we filed with the SEC
prior to the date of this prospectus, while information that we
file later with the SEC will automatically update and supersede
this information. We incorporate by reference the documents
listed below and any future filings we will make with the SEC
under Sections&nbsp;13(a), 13(c), 14 or 15(d) of the Securities
Exchange Act until the offering is completed:
</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">
    our Annual Report on Form&nbsp;10-K (File No.&nbsp;001-12079)
    for the year ended December&nbsp;31, 2004;</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 Current Reports on Form&nbsp;8-K filed with the SEC on
    January&nbsp;18, 2005, February&nbsp;3, 2005, March&nbsp;10,
    2005, March&nbsp;17, 2005, and March&nbsp;23, 2005;</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 information contained in Item&nbsp;4.02 of our Current
    Report on Form&nbsp;8-K filed with the SEC on March&nbsp;1, 2005;</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 information contained in Item&nbsp;8.01 of our Current
    Report on Form&nbsp;8-K filed with the SEC on January&nbsp;24,
    2005;</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 description of our common stock contained in our
    Registration Statement on Form&nbsp;8-A
    (File&nbsp;No.&nbsp;001-12079), filed with the SEC on
    August&nbsp;20, 1996;&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 description of rights relating to our common stock contained
    in our Registration Statement on Form&nbsp;8-A (File
    No.&nbsp;001-12079), filed with the SEC on June&nbsp;17, 1997,
    and the amendments to that Registration Statement filed on
    June&nbsp;18, 1997, June&nbsp;24, 1997, and September&nbsp;28,
    2001.</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;
You may request a copy of these filings, at no cost to you, by
writing or telephoning us at: Calpine Corporation, 50 West
San&nbsp;Fernando Street, San&nbsp;Jose, California 95113,
attention: Lisa M. Bodensteiner, Assistant Secretary, telephone:
(408)&nbsp;995-5115. If you request a copy of any or all of the
documents incorporated by reference, we will send to you the
copies you request. However, we will not send exhibits to the
documents, unless the exhibits are specifically incorporated by
reference in the 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;
<B>YOU SHOULD RELY ONLY ON THE INFORMATION PROVIDED IN THIS
PROSPECTUS OR INCORPORATED BY REFERENCE INTO THIS PROSPECTUS AND
ANY PROSPECTUS SUPPLEMENT. WE HAVE NOT AUTHORIZED ANYONE TO
PROVIDE YOU WITH DIFFERENT INFORMATION. WE ARE NOT MAKING AN
OFFER OR SOLICITING A PURCHASE OF THESE SECURITIES IN ANY
JURISDICTION IN WHICH THE OFFER OR SOLICITATION IS NOT
AUTHORIZED OR IN WHICH THE PERSON MAKING THE OFFER OR
SOLICITATION IS NOT QUALIFIED TO DO SO OR TO ANYONE TO WHOM IT
IS UNLAWFUL TO MAKE THE OFFER OR SOLICITATION. YOU SHOULD NOT
ASSUME THAT THE INFORMATION IN THIS PROSPECTUS OR THE PROSPECTUS
SUPPLEMENT IS ACCURATE AS OF ANY DATE OTHER THAN THE DATE ON THE
FRONT OF THE DOCUMENT.</B>
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
<A name='106'></A>
</DIV>

<!-- link1 "FORWARD-LOOKING STATEMENTS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>FORWARD-LOOKING STATEMENTS</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;
Some of the statements contained in this prospectus and
incorporated by reference into this prospectus are
forward-looking statements within the meaning of
Section&nbsp;27A of the Securities Act and Section&nbsp;21E of
the Securities Exchange Act and are subject to the safe harbor
created by the Private Securities Litigation Reform Act of 1995.
These statements include declarations regarding our or our
management&#146;s intents, beliefs or current expectations. In
some cases, you can identify forward-looking statements by
terminology such as &#147;may,&#148; &#147;will,&#148;
&#147;should,&#148; &#147;expects,&#148; &#147;plans,&#148;
&#147;anticipates,&#148; &#147;believes,&#148;
&#147;estimates,&#148; &#147;predicts,&#148;
&#147;potential,&#148; or &#147;continue&#148; or the negative
of these terms or other comparable terminology. Any
forward-looking statements are not guarantees of future
performance and actual results could differ materially from
those indicated by the forward-looking statements.
Forward-looking statements involve known and unknown risks,
uncertainties, and other factors that may cause our or our
industry&#146;s actual results, levels of activity, performance,
or achievements to be materially different from any future
results, levels of activity, performance, or achievements
expressed or implied by such forward-looking statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Among the important factors that could cause actual results to
differ materially from those indicated by such forward-looking
statements are 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="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the timing and extent of deregulation of energy markets and the
    rules and regulations adopted with respect thereto,</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 timing and extent of changes in commodity prices for energy,
    particularly natural gas and electricity, and the impact of
    related derivatives transactions,</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    unscheduled outages of operating plants,</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    unseasonable weather patterns that reduce demand for power,</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    economic slowdowns that can adversely affect consumption of
    power by businesses and consumers,</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    various development and construction risks that may delay or
    prevent commercial operations of new plants, such as failure to
    obtain the necessary permits to operate, failure of third-party
    contractors to perform their contractual obligations or failure
    to obtain project financing on acceptable terms,</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    uncertainties associated with cost estimates, that actual costs
    may be higher than estimated,</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    development of lower-cost power plants or of a lower cost means
    of operating a fleet of power plants by our competitors,</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    risks associated with marketing and selling power from power
    plants in the evolving energy market,</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    factors that impact exploitation of oil or gas resources, such
    as the geology of a resource, the total amount and costs to
    develop recoverable reserves and legal title, regulatory, gas
    administration, marketing and operational factors relating to
    the extraction of natural gas,</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    uncertainties associated with estimates of oil and gas reserves,</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 effects on our business resulting from reduced liquidity in
    the trading and power generation industry,</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 ability to access the capital markets on attractive terms or
    at all,</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    uncertainties associated with sources and uses of cash, that
    actual sources may be lower and actual uses may be higher than
    estimated,</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 direct or indirect effects on our business of a lowering of
    our credit rating (or actions we may take in response to
    changing credit rating criteria), including increased collateral
    requirements, refusal by our current or potential counterparties
    to enter into transactions with us and our inability to obtain
    credit or capital in desired amounts or on favorable terms,</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    present and possible future claims, litigation and enforcement
    actions,</TD>
</TR>

</TABLE>

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    effects of the application of regulations, including changes in
    regulations or the interpretation thereof, 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">
    other risks identified from time to time in our reports and
    registration statements filed with the SEC, including the risk
    factors identified in our Annual Report on Form&nbsp;10-K for
    the year ended December&nbsp;31, 2004, which is incorporated by
    reference in this prospectus.</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;
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='107'></A>
</DIV>

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

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>USE OF PROCEEDS</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 selling holders will receive all of the net proceeds of the
resale of the notes and our common stock issuable upon
conversion of the notes. We will not receive any of the proceeds
from the resale of any of these securities.
</DIV>

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<DIV align="left" style="font-size: 10pt;">
<A name='108'></A>
</DIV>

<!-- link1 "SELLING HOLDERS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SELLING 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;
We originally issued the notes to Deutsche Bank Securities Inc.,
Credit Lyonnais Securities (USA)&nbsp;Inc., Harris Nesbitt Corp.
and Williams Capital Group LP, who we refer to collectively as
the &#147;initial purchasers,&#148; in a transaction exempt from
the registration requirements of the Securities Act. The initial
purchasers immediately resold the notes in transactions exempt
from the registration requirements of the Securities Act to
persons reasonably believed by them to be qualified
institutional buyers as defined in Rule&nbsp;144A 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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This prospectus is part of a registration statement that we
filed with the SEC using a &#147;shelf&#148; registration or
continuous offering process. Under this shelf registration
process, the selling holders, including their transferees,
pledgees, donees or other successors, may from time to time
offer and sell pursuant to this prospectus any or all of the
notes and the common stock issuable upon conversion of the notes
in one or more offerings. Any selling holder may also elect not
to sell any notes or common stock issuable upon conversion of
the notes held by it. Only those notes and shares of common
stock issuable upon conversion of the notes listed below may be
offered for resale by the selling holders pursuant to this
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 prospectus provides you with a general description of the
securities that the selling holders may offer. A selling holder
may be required to provide you with a prospectus supplement
containing specific information about the selling holder and the
terms of the securities being offered. That prospectus
supplement may include additional risk factors or other special
considerations applicable to those securities. A prospectus
supplement may also add, update or change information in this
prospectus. If there is any inconsistency between the
information in this prospectus and any prospectus supplement,
you should rely on the information in that prospectus
supplement. You should read both this prospectus and any
prospectus supplement together with the additional information
described under the heading &#147;Where You Can Find More
Information About Us and this Offering.&#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 following table sets forth recent information with respect
to the selling holders of the notes and the respective number of
notes beneficially owned by each selling holder that may be
offered for each selling holder&#146;s account pursuant to this
prospectus. We prepared this table based on information supplied
to us by or on behalf of the selling holders. The selling
holders may offer and sell all, some or none of the notes and
the common stock issuable upon conversion of the notes listed
below by using this prospectus. Because the selling holders may
offer all or only some portion of the notes or the common stock
listed in the table, no estimate can be given as to the amount
of those securities that will be held by the selling holders
upon termination of any sales. In addition, the selling holders
identified in the table below may have sold, transferred or
disposed of all or a portion of their notes or shares of common
stock issuable upon conversion of the notes since the date on
which they provided the information regarding their ownership of
those securities included in this 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 shares of common stock offered by each selling holder is
equal to the net shares to be delivered upon conversion of the
notes. The net shares are determined based on the five day
average closing price of our common stock: the greater the five
day average closing price, the greater the number of net shares
that will be deliverable. See &#147;Description of the
Notes.&#148; For purposes of this prospectus, to calculate the
number of net shares that are beneficially owned and are offered
hereunder, we have assumed a five day average closing price of
$7.80, or 120% of the initial conversion price of $6.50, which
currently is the price at which the common stock price condition
to conversion of the notes may be satisfied. See
&#147;Description of the Notes&nbsp;&#151; Conversion
Rights&nbsp;&#151; Conversion Upon Satisfaction of Common Stock
Price Condition.&#148; The number of shares that are actually
delivered upon conversion of the notes will be different from
the numbers shown in the table below if, among other things, the
five day average closing price is not $7.80. Assuming a five day
average closing price of $7.80 and no change in the initial
conversion rate, for each $1,000 in principal amount of notes
converted, a holder would receive $1,000 and 25&nbsp;net shares
and, if all $900,000,000 in principal amount of the notes were
converted, holders would collectively receive $900,000,000 and
23,076,957&nbsp;net shares (plus, in each case, a dollar amount
in lieu of any fractional shares). If the five day average
closing price were $6.50 or less, holders would receive no
shares of our common stock upon conversion of the notes. We have
listed a total of 69,230,000&nbsp;shares on The New York Stock
Exchange and, if more than 69,230,000&nbsp;net shares are issued
upon
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
conversion (which would occur if all of the notes were converted
at a five day average closing price of $13.00 or more), we will
be required to list such additional shares on The New York Stock
Exchange.
</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="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&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="5%">&nbsp;</TD>
    <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="5%">&nbsp;</TD>
</TR>

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

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

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

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Aggregate Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Beneficially</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Amount of Notes</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Owned After</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Beneficially Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Beneficially</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Completion of</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Selling Holders</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>and Offered($)</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Offered</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>the Offering</B></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="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    ADAR Investment Fund LTD(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>307,693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>307,693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    AFTRA Health Fund(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>260,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    AK Steel Master Pension Trust(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>715,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Akanthos Arbitrage Master Fund, LP(4)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>80,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,051,288</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,051,288</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Argent Classic Convertible Arbitrage Fund (Bermuda) Ltd.(5)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,240,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>313,847</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>313,847</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Argent Classic Convertible Arbitrage Fund&nbsp;II, LP(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>490,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Argent Classic Convertible Arbitrage Fund LP(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,570,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65,897</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65,897</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Argent LowLev Convertible Arbitrage Fund Ltd(5)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,230,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>313,590</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>313,590</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Argent LowLev Convertible Arbitrage Fund&nbsp;II, LLC(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>406,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Argent LowLev Convertible Arbitrage Fund LLC(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,704,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Aristeia International Limited(7)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,870,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,124,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,124,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Aristeia Trading LLC(7)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,630,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>246,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>246,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Barclays Global Investors Equity Hedge Fund II*(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Barnet Partners Ltd.(9)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basso Multi-Strategy Holding Fund Ltd(10)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    BNP Paribas Arbitrage*(11)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,500,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>320,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>320,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    BNP Paribas Equity Strategies, SNC*(12)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,518,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>358,982</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>295,334</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63,648</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Canyon Capital Arbitrage Master Fund, Ltd.*(13)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,580,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>809,745</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>809,745</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Canyon Value Realization Fund, L.P.*(13)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,750,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>403,847</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>403,847</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Canyon Value Realization MAC&nbsp;18, Ltd. (RMF)*(13)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,300,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>161,538</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>161,538</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    CC Convertible Arbitage, Ltd.*(14)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>179,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>179,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Citadel Credit Trading Ltd.(15)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,415,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>159,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>97,300</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Citadel Equity Fund Ltd.(15)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,085,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>271,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>232,949</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,400</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Citigroup Global Markets, Inc.(16)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,814,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,512</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,512</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    City of Stamford Police Pension Fund(17)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>190,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Class&nbsp;C Trading Company, Ltd.(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,190,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,512</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,512</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    CNH CA Master Account, L.P.(18)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Context Convertible Arbitrage Fund LP(19)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,975,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></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="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&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="5%">&nbsp;</TD>
    <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="5%">&nbsp;</TD>
</TR>

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

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

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

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Aggregate Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Beneficially</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Amount of Notes</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Owned After</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Beneficially Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Beneficially</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Completion of</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Selling Holders</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>and Offered($)</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Offered</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>the Offering</B></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="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Context Convertible Arbitrage Offshore Ltd.(19)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,200,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>184,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>184,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    CooperNeff Convertible Strategies (Cayman) Master Fund, LP+(12)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,436,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>318,872</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>318,872</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Credit Suisse First Boston LLC+(20)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,575,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>142,949</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>142,949</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Credit Suisse First Boston Europe Ltd+</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,660,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    CSS, LLC+(21)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,500,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Custom Investments PCC Ltd.(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>300,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    DB Equity Opportunities Master Portfolio LTD(22)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    DBAG London*(23)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,370,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>419,744</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>419,744</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deam Convertible Arbitrage(22)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deutsche Bank Securities Inc.+</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,370,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>214,616</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>214,616</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    FrontPoint Convertible Arbitrage Fund, L.P.(24)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>125,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gaia Offshore Master Fund Ltd.*(25)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,200,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Geode U.S. Convertible Arbitrage Fund, a segregated account of
    Geode Capital Master Fund&nbsp;Ltd.(26)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>128,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>128,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    GLG Market Neutral Fund(27)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,250,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>262,821</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>262,821</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Goldman Sachs&nbsp;&#38; Company+</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,730,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,044,376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>326,411</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,717,965</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Grace Brothers, Ltd.+(28)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>102,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>102,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Grace Convertible Arbitrage Fund, Ltd.*(28)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Guggenheim Portfolio Co. XV, LLC(29)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,420,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Harbert Convertible Arbitrage Master Fund, Ltd.*(30)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,373,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,078,782</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>496,745</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,582,037</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Harbert Convertible Arbitrage Master Fund&nbsp;II, Ltd.*(31)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>215,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>128,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,512</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>122,623</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    HFR CA Global Select Master Trust Account(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>720,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    HFR CA Select Fund(32)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,500,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Highbridge International LLC*(33)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,500,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>628,206</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>628,206</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    JMG Capital Partners, L.P.(34)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,500,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>115,384</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>115,384</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    JMG Triton Offshore, Ltd(35)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,500,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>115,384</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>115,384</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    J.A. &#38; Kathryn Albertson Foundation(17)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>500,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,820</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,820</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kamunting Street Master Fund Ltd.(36)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>717,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>717,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    KBC Financial Products USA Inc.+(37)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    KdC Convertible Arb Master Fund C.V. *(38)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    KdC Convertible Arbitrage Fund L.P.*(38)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>230,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>230,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Lyxor/Context Fund Ltd.*(19)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,200,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></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="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&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="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="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

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

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

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

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Aggregate Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Beneficially</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Amount of Notes</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Owned After</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Beneficially Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Beneficially</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Completion of</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Selling Holders</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>and Offered($)</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Offered</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>the Offering</B></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="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Lyxor/Convertible Arbitrage Fund Limited(12)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,077,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>53,256</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>53,256</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Lyxor/Gaia&nbsp;II Fund Ltd.*(39)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>300,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Lyxor Master Fund Ref: Argent/LowLev CB c/o Argent(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,690,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mainstay Convertible Fund*(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,355,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>137,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>137,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mainstay Strategic Value Fund*(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>58,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mainstay VP Convertible Fund*(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,205,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>82,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>82,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Marathon Global Convertible Master Fund, Ltd.(40)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>153,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>153,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    MFS MidCap Value Fund of Series&nbsp;Trust XI*(41)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>900,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    MFS/Sunlife Series&nbsp;Trust MidCap Value Series*(41)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    MFS Total Return Fund A Series of Series Trust V*(42)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>153,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>153,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Morgan Stanley Convertible Securities Trust*(43)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    National Bank of Canada(19)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,350,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    New York Life Insurance Company (Post 82)*(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,025,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>154,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>154,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    New York Life Insurance Company (Pre&nbsp;82)*(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,785,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    New York Life Separate Account&nbsp;#7*(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Nisswa Master Fund Ltd.(44)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,350,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Oppenheimer Convertible Securities Fund*(45)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>179,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>179,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pandora Select Partners LP(46)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>307,693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>307,693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Partners Group Alternative Strategies PCC Ltd(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    RCG Baldwin, LP*(29)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>675,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    RCG Halifax Master Fund, LTD*(29)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>446,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,435</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,435</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    RCG Latitude Master Fund, LTD*(29)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,288,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>289,436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>289,436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    RCG Multi Strategy Master Fund LTD*(29)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,906,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ramius, LP*(29)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>169,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ramius Capital Group*(29)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,266,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ramius Master Fund, LTD*(29)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,125,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>80,128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>80,128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ramius Partners&nbsp;II, LP*(29)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>111,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Relay 3 Asset Holding Co. Limited(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Royal Bank of Canada (Norshield)*(19)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,100,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sagamore Hill Hub Fund, Ltd.(47)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></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="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&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="5%">&nbsp;</TD>
    <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="5%">&nbsp;</TD>
</TR>

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

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

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

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Aggregate Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Beneficially</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Amount of Notes</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Owned After</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Beneficially Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Beneficially</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Completion of</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Selling Holders</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>and Offered($)</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Offered</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>the Offering</B></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="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Salomon Brothers Asset Management, Inc.*(16)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,175,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>132,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>132,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    San&nbsp;Diego County Employee Retirement Association(32)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Satellite Asset Management, L.P.(48)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,512,822</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>512,822</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Satellite Convertible Arbitrage Master Fund, LLC(48)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,025,644</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,025,644</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Satellite Credit Opportunities Fund Ltd.(48)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,250,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Scorpion Offshore Investment Fund, Ltd.(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>360,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,230</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,230</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Severn River Master Fund, LTD(47)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Silver Convertible Arbitrage Fund LDC(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,200,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Singlehedge US Convertible Arbitrage Fund(12)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,227,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>82,743</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>82,743</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    SP Holdings Ltd.(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Spear, Leeds&nbsp;&#38; Kellogg+*(50)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,250,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    St. Albans Partners Ltd.(9)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Standard Fire Insurance Company(51)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>750,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,230</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,230</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Standard Global Equity Partners, L.P.(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,487,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Standard Global Equity Partners&nbsp;II, L.P.(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Standard Global Equity Partners SA, L.P.(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>635,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Standard Pacific Capital Offshore Fund, Ltd.(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,952,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>126,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>126,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Standard Pacific MAC&nbsp;16 Ltd.(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>306,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sturgeon Limited(12)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,742,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sunrise Partners Limited Partnership*(52)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,800,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>208,177</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>123,077</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>85,100</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    The Canyon Value Realization Fund (Cayman), Ltd.*(13)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,090,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,104,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,104,874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Travelers Casualty Insurance Company of America(51)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,064,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Tribeca Global Investments LTD(16)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>205,128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>205,128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Tribeca Investments LTD(16)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>153,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>153,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    UBS AG London Branch*(53)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>307,693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>307,693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    UBS AG London f/b/o HFS(54)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,600,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>246,154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>246,154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    UBS O&#146;Connor LLC f/b/o O&#146;Connor Global Convertible
    Arbitrage Master Ltd.(55)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>386,916</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>384,616</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,300</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    UIF Equity &#38; Income Fund+(56)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,500,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>64,102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>64,102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></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="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&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="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="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

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

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

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

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Aggregate Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Beneficially</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Amount of Notes</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Owned After</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Beneficially Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Beneficially</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Completion of</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Selling Holders</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>and Offered($)</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Offered</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>the Offering</B></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="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    United Overseas Bank (SGD)(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>140,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    United Overseas Bank (USD)(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Univest Convertible Arbitrage Fund&nbsp;II Ltd (Norshield)(19)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>475,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    USA2 Equity Income Fund+(54)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>500,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,820</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,820</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Van Kampen Equity and Income Fund+(54)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>50,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,282,055</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,282,055</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Van Kampen Harbor Fund+(57)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Whitebox Convertible Arbitrage Partners, LP(46)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>846,156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>846,156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Whitebox Diversified Convertible Arbitrage Partners, LP(46)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,500,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>217,949</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>217,949</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Xavex Convertible Arbitrage&nbsp;5 Fund(29)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>844,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Xavex Convertible Arbitrage&nbsp;10 Fund(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,700,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Xavex Convertible Arbitrage Fund&nbsp;10 Acct(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,100,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Xavex Risk Arbitrage Fund&nbsp;2(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>320,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Zazove Convertible Arbitrage Fund L.P.(32)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,500,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>141,026</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>141,026</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Zazove Hedged Convertible Fund L.P.(32)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,500,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>89,743</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>89,743</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Zazove Income Fund L.P.(32)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,500,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Zurich Institutional Benchmarks Master Fund Ltd.(32)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,500,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp; +&nbsp;</TD>
    <TD align="left">
    This selling holder is a broker-dealer and an underwriter with
    respect to the resale of the notes owned by it and the common
    stock issuable upon conversion of the notes owned by it.</TD>
</TR>

</TABLE>

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

<TR valign="top">
    <TD>&nbsp; *</TD>
    <TD align="left">
    This selling holder is an affiliate of a broker-dealer and
    purchased the notes owned by it (and the common stock issuable
    upon conversion of the notes owned by it) in the ordinary course
    of business, and at the time of its purchase of the notes and
    common stock to be resold by it, this selling holder had no
    agreements or understandings, directly or indirectly, with any
    person to distribute the notes or the common stock issuable upon
    conversion of the notes.</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="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp; (1)&nbsp;</TD>
    <TD align="left">
    Abby Flamhoz and Yehuda Blinder exercise voting and investment
    control over the notes owned by this selling holder and the
    common stock issuable upon conversion of the notes owned by this
    selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp; (2)&nbsp;</TD>
    <TD align="left">
    Edward Silverstein, Portfolio Manager of the investment advisor
    to this selling holder, exercises voting and dispositive control
    over the notes owned by this selling holder and the common stock
    issuable upon conversion of the notes owned by this selling
    holder.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp; (3)&nbsp;</TD>
    <TD align="left">
    Scott Schumacher, Portfolio Manager and Principal, and Eric
    Green, Director of Research and Principal, exercise voting and
    investment control over the notes owned by this selling holder
    and the common stock issuable upon conversion of the notes owned
    by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp; (4)&nbsp;</TD>
    <TD align="left">
    Michael Kao, Managing Member of Akanthos Capital Management,
    LLC, exercises voting and investment control over the notes
    owned by this selling holder and the common stock issuable upon
    conversion of the notes owned by this selling holder.</TD>
</TR>

</TABLE>

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

<!-- PAGEBREAK -->
<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: 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="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp; (5)&nbsp;</TD>
    <TD align="left">
    Henry Cox and Allan Marshall exercise voting and investment
    control over the notes owned by this selling holder and the
    common stock issuable upon conversion of the notes owned by this
    selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp; (6)&nbsp;</TD>
    <TD align="left">
    Nathaniel Brown and Robert Richardson exercise voting and
    investment control over the notes owned by this selling holder
    and the common stock issuable upon conversion of the notes owned
    by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp; (7)&nbsp;</TD>
    <TD align="left">
    Robert H. Lynch,&nbsp;Jr., Anthony Frascella and Kevin Toner,
    joint owners of Aristeia Capital LLC, the investment manager for
    this selling holder, exercise voting and investment control over
    the notes owned by this selling holder and the common stock
    issuable upon conversion of the notes owned by this selling
    holder.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp; (8)&nbsp;</TD>
    <TD align="left">
    Andrew Midler, as portfolio manager of Standard Pacific Capital
    LLC, the investment advisor or general partner of this selling
    holder, has voting and dispositive power over the notes owned by
    this selling holder and the common stock issuable upon
    conversion of the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp; (9)&nbsp;</TD>
    <TD align="left">
    Roy Astrachan, Portfolio Manager, exercise voting and investment
    control over the notes owned by this selling holder and the
    common stock issuable upon conversion of the notes owned by this
    selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(10)&nbsp;</TD>
    <TD align="left">
    Howard Fischer, the Managing Member of Basso GP, LLC, the
    General Partner of Basso Asset Management, L.P., the Investment
    Manager to Basso Multi-Strategy Holding Fund Ltd., exercises
    voting and investment control over the notes owned by this
    selling holder and the common stock issuable upon conversion of
    the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(11)&nbsp;</TD>
    <TD align="left">
    Mike Cohen exercises voting and investment control over the
    notes owned by this selling holder and the common stock issuable
    upon conversion of the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(12)&nbsp;</TD>
    <TD align="left">
    Christian Menestrier, CEO of CooperNeff Advisors Inc., exercises
    voting and investment control over the notes owned by this
    selling holder and the common stock issuable upon conversion of
    the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(13)&nbsp;</TD>
    <TD align="left">
    Joshua S. Friedman, Mitchell R. Julis, R. Christian B. Evensen
    and K. Robert Turner, Managing Partners of Canyon Capital
    Advisors LLC, exercise voting and investment power over the
    notes owned by this selling holder and the common stock issuable
    upon conversion of the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(14)&nbsp;</TD>
    <TD align="left">
    Daniel Asher and Allan Weine, managing members of Castle Creek
    Convertible Arbitrage&nbsp;LLC, an investment manager of this
    selling holder, may exercise dispositive and voting power over
    the notes owned by this selling holder and the common stock
    issuable upon conversion of the notes owned by this selling
    holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(15)&nbsp;</TD>
    <TD align="left">
    Kenneth C. Griffin indirectly controls Citadel Limited
    Partnership, the trading manager with investment discretion for
    this selling holder, and exercises voting and investment control
    over the notes owned by this selling holder and the common stock
    issuable upon conversion of the notes owned by this selling
    holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(16)&nbsp;</TD>
    <TD align="left">
    This selling holder is a wholly-owned subsidiary of Citigroup
    Inc.</TD>
</TR>

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

<TR valign="top">
    <TD>(17)&nbsp;</TD>
    <TD align="left">
    Gerald&nbsp;B. Unterman, President of GEM Capital Management
    Inc., exercises voting and investment control over the notes
    owned by this selling holder and the common stock issuable upon
    conversion of the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(18)&nbsp;</TD>
    <TD align="left">
    Robert Krail, Mark Mitchell and Todd Pulvino, Investment
    Principals for CNH Partners, LLC, the Investment Advisor to this
    selling holder, exercise sole voting and dispositive power over
    the notes of this selling holder and the common stock issuable
    upon conversion of the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(19)&nbsp;</TD>
    <TD align="left">
    Michael Rosen and William Fertig exercise voting and investment
    power over the notes owned by this selling holder and the common
    stock issuable upon conversion of the notes owned by this
    selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(20)&nbsp;</TD>
    <TD align="left">
    Jeffrey Andrewski exercises voting and investment control over
    the notes owned by this selling holder and the common stock
    issuable upon conversion of the notes owned by this selling
    holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(21)&nbsp;</TD>
    <TD align="left">
    Michael J. Carusillo, Nicholas D. Schoewe and Clayton A. Struve
    exercise voting and investment power over the notes owned by
    this selling holder and the common stock issuable upon
    conversion of the notes owned by this selling holder.</TD>
</TR>

</TABLE>

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

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

<TR valign="top">
    <TD>(22)&nbsp;</TD>
    <TD align="left">
    Eric Lobben exercises voting and investment control over the
    notes owned by this selling holder and the common stock issuable
    upon conversion of the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(23)&nbsp;</TD>
    <TD align="left">
    This selling holder is a wholly-owned subsidiary of Deutsche
    Bank Securities Inc.</TD>
</TR>

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

<TR valign="top">
    <TD>(24)&nbsp;</TD>
    <TD align="left">
    Philip Duff, W. Gillespie Caffray and Paul Ghaffari are sole
    members of the management committee of FrontPoint Partners LLC,
    the managing member of FrontPoint Convertible Arbitrage Fund GP,
    LLC, the general partner of this selling holder and exercise
    voting and investment control over the notes owned by this
    selling holder and the common stock issuable upon conversion of
    the notes owned by this selling holder. Each disclaims
    beneficial ownership of securities held by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(25)&nbsp;</TD>
    <TD align="left">
    James F. O&#146;Brien, Jr. indirectly controls Promethean Asset
    Management, LLC, the investment manager of this selling holder,
    which exercises voting and investment control over the notes
    owned by this selling holder and the common stock issuable upon
    conversion of the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(26)&nbsp;</TD>
    <TD align="left">
    Vincent Gubitosi exercises voting and investment control over
    the notes owned by this selling holder and the common stock
    issuable upon conversion of the notes owned by this selling
    holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(27)&nbsp;</TD>
    <TD align="left">
    GLG Market Neutral Fund is a publicly owned company listed on
    the Irish Stock Exchange. GLG Partners LP, an English limited
    partnership, acts as the investment manager of the fund and has
    voting and dispositive power over the securities held by the
    Fund. The general partner of GLG Partners LP is GLG Partners
    Limited, an English limited company. The shareholders of GLG
    Partners Limited are Noam Gottesman, Pierre Lagrange, Jonathan
    Green, Philippe Jabre and Lehman (Cayman) Limited, a subsidiary
    of Lehman Brothers, Inc., a publicly-held entity. GLG Partners
    LP, GLG Partners Limited, Noam Gottesman, Pierre Lagrange,
    Jonathan Green, Philippe Jabre and Lehman (Cayman) Limited
    disclaim beneficial ownership of the securities held by the
    Fund, except for their pecuniary interest therein.</TD>
</TR>

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

<TR valign="top">
    <TD>(28)&nbsp;</TD>
    <TD align="left">
    Bradford Whitmore and Michael Brailov exercise voting and
    investment control over the notes owned by this selling holder
    and the common stock issuable upon conversion of the notes owned
    by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(29)&nbsp;</TD>
    <TD align="left">
    Alex Adair exercises voting and investment control over the
    notes owned by this selling holder and the common stock issuable
    upon conversion of the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(30)&nbsp;</TD>
    <TD align="left">
    Jeff Parket, Senior Managing Director of this selling holder,
    and Michael Luce and Raymond Harbert, who may be deemed to
    control HMC Investors, LLC, the managing member of HMC
    Convertible Arbitrage Offshore Manager, LLC, the investment
    manager of this selling holder, exercise voting and investment
    control over the notes owned by this selling holder and the
    common stock issuable upon conversion of the notes owned by this
    selling holder. Each above listed person and entity disclaims
    any ownership except to the extent of their actual pecuniary
    interest.</TD>
</TR>

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

<TR valign="top">
    <TD>(31)&nbsp;</TD>
    <TD align="left">
    Jeff Parket, Senior Managing Director of this selling holder,
    and Michael Luce and Raymond Harbert, who may be deemed to
    control HMC Investors, LLC, the managing member of HMC
    Convertible Arbitrage Offshore Manager&nbsp;II, LLC, the
    investment manager of this selling holder, exercise voting and
    investment control over the notes owned by this selling holder
    and the common stock issuable upon conversion of the notes owned
    by this selling holder. Each above listed person and entity
    disclaims any ownership except to the extent of their actual
    pecuniary interest.</TD>
</TR>

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

<TR valign="top">
    <TD>(32)&nbsp;</TD>
    <TD align="left">
    Gene T. Pretti exercises voting and investment control over the
    notes owned by this selling holder and the common stock issuable
    upon conversion of the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(33)&nbsp;</TD>
    <TD align="left">
    Glenn Dubin and Harry Swiera, Principals of Highbridge Capital
    Management, trading advisor to this selling holder, exercise
    voting and investment control over the notes owned by this
    selling holder and the common stock issuable upon conversion of
    the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(34)&nbsp;</TD>
    <TD align="left">
    Jonathan M. Glaser, the Executive Officer and Director of JMG
    Capital Management, Inc., the owner of the equity interests of
    JMG Capital Management, LLC, the general partner of this selling
    holder, exercises voting and investment control over the notes
    owned by this selling holder and the common stock issuable upon
    conversion of the notes owned by this selling holder.</TD>
</TR>

</TABLE>

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

<!-- PAGEBREAK -->
<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: 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="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>(35)&nbsp;</TD>
    <TD align="left">
    Roger Richter and Jonathan M. Glaser, owners together with
    Daniel A. David of the equity interests of Pacific Capital
    Management, Inc., the owner of the equity interests of Pacific
    Assets Management LLC, the investment manager of this selling
    holder, exercise voting and investment control over the notes
    owned by this selling holder and the common stock issuable upon
    conversion of the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(36)&nbsp;</TD>
    <TD align="left">
    Allan Teh exercises voting and investment control over the notes
    owned by this selling holder and the common stock issuable upon
    conversion of the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(37)&nbsp;</TD>
    <TD align="left">
    Luke Edwards, Managing Director of this selling holder,
    exercises voting and investment control over the notes owned by
    this selling holder and the common stock issuable upon
    conversion of the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(38)&nbsp;</TD>
    <TD align="left">
    George A. Kellner exercises voting and investment control over
    the notes owned by this selling holder and the common stock
    issuable upon conversion of the notes owned by this selling
    holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(39)&nbsp;</TD>
    <TD align="left">
    James&nbsp;F. O&#146;Brien, Jr. indirectly controls Promethean
    Asset Management, LLC, the trading advisor for this selling
    holder, which exercises voting and investment control over the
    notes owned by this selling holder and the common stock issuable
    upon conversion of the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(40)&nbsp;</TD>
    <TD align="left">
    Bruce Richards, Lou Hanover and Andrew Rabinowitz exercise
    voting and investment control over the notes owned by this
    selling holder and the common stock issuable upon conversion of
    the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(41)&nbsp;</TD>
    <TD align="left">
    Constantino&nbsp;G. Mokas exercises voting and investment
    control over the notes owned by this selling holder and the
    common stock issuable upon conversion of the notes owned by this
    selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(42)&nbsp;</TD>
    <TD align="left">
    David M. Calabro, Kenneth J. Enright, Steven R. Gorham,
    Constantino&nbsp;G. Mokas, Lisa&nbsp;B. Nurme and
    Michael&nbsp;W. Roberge exercise voting and investment control
    over the notes owned by this selling holder and the common stock
    issuable upon conversion of the notes owned by this selling
    holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(43)&nbsp;</TD>
    <TD align="left">
    This selling holder is a wholly-owned subsidiary of Morgan
    Stanley.</TD>
</TR>

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

<TR valign="top">
    <TD>(44)&nbsp;</TD>
    <TD align="left">
    Brian Taylor exercises voting and investment control over the
    notes owned by this selling holder and the common stock issuable
    upon conversion of the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(45)&nbsp;</TD>
    <TD align="left">
    Ted Everett, Portfolio Manager, exercises voting and investment
    control over the notes owned by this selling holder and the
    common stock issuable upon conversion of the notes owned by this
    selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(46)&nbsp;</TD>
    <TD align="left">
    Andrew Redleaf, Managing Member of the general partner of this
    selling holder, exercises voting and investment control over the
    notes owned by this selling holder and the common stock issuable
    upon conversion of the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(47)&nbsp;</TD>
    <TD align="left">
    Steven Bloom, Manager of Sagamore Hill Managers, LLC, general
    partner of Sagamore Hill Capital Mgmt., L.P., the investment
    manager of this selling holder, exercises voting and investment
    control over the notes owned by this selling holder and the
    common stock issuable upon conversion of the notes owned by this
    selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(48)&nbsp;</TD>
    <TD align="left">
    Lief Rosenblatt, Mark Sonnino, Gabriel Nechamkin, Christopher
    Tuzzo, Brian Kriftcher, Stephen Shapiro and David Ford exercise
    voting and investment control over the notes owned by this
    selling holder and the common stock issuable upon conversion of
    the notes owned by this selling holder. Each disclaims
    beneficial ownership of securities held by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(49)&nbsp;</TD>
    <TD align="left">
    S. Scott Roth, Managing Partner and Portfolio Manager of this
    selling holder, exercises voting and investment control over the
    notes owned by this selling holder and the common stock issuable
    upon conversion of the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(50)&nbsp;</TD>
    <TD align="left">
    This selling holder is a wholly-owned subsidiary of Goldman
    Sachs.</TD>
</TR>

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

<TR valign="top">
    <TD>(51)&nbsp;</TD>
    <TD align="left">
    This selling holder is a wholly-owned subsidiary of The St. Paul
    Travelers Companies, Inc.</TD>
</TR>

</TABLE>

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

<!-- PAGEBREAK -->
<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: 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="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>(52)&nbsp;</TD>
    <TD align="left">
    S. Donald Sussman exercises voting and investment control over
    the notes owned by this selling holder and the common stock
    issuable upon conversion of the notes owned by this selling
    holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(53)&nbsp;</TD>
    <TD align="left">
    Tom Klein and Charles Dietz exercise voting and investment
    control over the notes owned by this selling holder and the
    common stock issuable upon conversion of the notes owned by this
    selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(54)&nbsp;</TD>
    <TD align="left">
    Stephen Sheedy exercised voting and investment control over the
    notes owned by this selling holder and the common stock issuable
    upon conversion of the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(55)&nbsp;</TD>
    <TD align="left">
    This selling holder is a wholly-owned subsidiary of UBS AG.</TD>
</TR>

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

<TR valign="top">
    <TD>(56)&nbsp;</TD>
    <TD align="left">
    James Gilligan, as Portfolio Manager for Van Kampen Asset
    Management, the investment advisor for this selling holder,
    exercises voting and investment control over the notes owned by
    this selling holder and the common stock issuable upon
    conversion of the notes owned by this selling holder.</TD>
</TR>

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

<TR valign="top">
    <TD>(57)&nbsp;</TD>
    <TD align="left">
    Ellen Gold, as Portfolio Manager for Van Kampen Asset
    Management, the investment advisor for this selling holder,
    exercises voting and investment control over the notes owned by
    this selling holder and the common stock issuable upon
    conversion of the notes owned by this selling 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;
To our knowledge, other than their ownership of the securities
described in the above table, none of the selling holders has,
or has had within the past three years, any position, office or
other material relationship with us or any of our predecessors
or affiliates, except that Deutsche Bank Securities acted as the
initial purchaser of the notes and each of Deutsche Bank
Securities, Goldman Sachs&nbsp;&#38; Co. and Credit Suisse First
Boston, an affiliate of certain of the selling holders, act as
an adviser to us from time to time with respect to other matters.
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
<A name='109'></A>
</DIV>

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

<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" style="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 and the common stock issuable upon conversion of the
notes may be offered and sold from time to time to purchasers
directly by the selling holders. Alternatively, the selling
holders may from time to time offer those securities to or
through underwriters, broker-dealers or agents, who may receive
compensation in the form of underwriting discounts, concessions
or commissions from the selling holders or the purchasers of the
securities for whom they act as agents. The selling holders and
any underwriters, broker-dealers or agents that participate in
the distribution of the securities may be deemed to be
&#147;underwriters&#148; within the meaning of the Securities
Act, and any profit on the sale of securities and any discounts,
commissions, concessions or other compensation received by any
underwriter, broker-dealer or agent may be deemed to be
underwriting discounts and commissions 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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The securities may be sold from time to time in one or more
transactions at fixed prices, at prevailing market prices at the
time of sale, at varying prices determined at the time of sale
or at negotiated prices. The sale of the securities may be
effected in transactions, which may involve crosses or block
transactions:
</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">
    on any national securities exchange or quotation service on
    which the securities may be listed or quoted at the time of sale;</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 the over-the-counter market;</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 transactions otherwise than on exchanges or in the
    over-the-counter market;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    through the writing and exercise of options;&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">
    through the settlement of short sales.</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 connection with the sale of the notes and the underlying
common stock or otherwise, the selling holders may enter into
hedging transactions with broker-dealers or other financial
institutions. These broker-dealers or financial institutions may
in turn engage in short sales of the common stock in the course
of hedging the positions they assume with selling holders. The
selling holders may also sell the notes and the underlying
common stock short and deliver these securities to close out
such short positions, or loan or pledge the notes or the
underlying common stock to broker-dealers that in turn may sell
these securities.
</DIV>

<DIV align="left" style="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 the time a particular offering of the securities is made, if
required, a prospectus and/or prospectus supplement will be
distributed, which will set forth the names of the selling
holders, the aggregate amount and type of securities being
offered and the terms of the offering, including the name or
names of any underwriters, broker-dealers or agents, any
discounts, commissions and other terms constituting compensation
from the selling holders and any discounts, commissions or
concessions allowed or reallowed to paid broker-dealers.
</DIV>

<DIV align="left" style="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 comply with the securities laws of some jurisdictions, if
applicable, the securities will be offered or sold in some
jurisdictions only through registered or licensed brokers or
dealers. In addition, in some jurisdictions the securities may
not be offered or sold unless they have been registered or
qualified for sale in those jurisdictions or any exemption from
registration or qualification is available and is complied with.
</DIV>

<DIV align="left" style="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 selling holders and any other person participating in the
distribution of securities will be subject to applicable
provisions of the Securities Exchange Act and the rules and
regulations under the Securities Exchange Act, including,
without limitation, Regulation&nbsp;M of the Securities Exchange
Act, which may limit the timing of purchases and sales of any of
the offered securities by the selling holders and any other
person. Furthermore, Regulation M may restrict the ability of
any person engaged in the distribution of the offered securities
to engage in market-making activities with respect to the
particular offered securities being distributed. Compliance with
the Securities Exchange Act, as described in this paragraph, may
affect the marketability of the offered securities and the
ability of any person or entity to engage with respect to the
offered securities.
</DIV>

<DIV align="left" style="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 outstanding common stock is listed for trading on the New
York Stock Exchange. We do not intend to list the notes for
trading on any national securities exchange or on the New York
Stock Exchange and can give no assurance about the development
of any trading market for the notes.
</DIV>

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

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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;
Pursuant to a registration rights agreement, we have borne all
fees and expenses incurred in connection with the registration
of the notes and the common stock issuable upon conversion of
the notes, except that selling holders will pay all
broker&#146;s commissions and underwriting discounts and
commissions, if any, in connection with any sales effected
pursuant to this prospectus. We will indemnify the selling
holders against some civil liabilities, including some
liabilities under the Securities Act or the Securities Exchange
Act or otherwise, or alternatively the selling holders will be
entitled to contribution in connection with those liabilities.
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
<A name='110'></A>
</DIV>

<!-- link1 "DESCRIPTION OF THE 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 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;
We issued the notes under a document called the
&#147;indenture&#148;. The indenture is a contract between us
and Wilmington Trust Company, who is serving as trustee. The law
of the State of New York governs both the indenture and the
notes. In this section, references to &#147;Calpine,&#148;
&#147;we,&#148; &#147;our&#148; or &#147;us&#148; refer solely
to Calpine Corporation and not its subsidiaries.
</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>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 notes are our senior, unsecured obligations and rank equally
in right of payment with all of our existing and future
unsecured and unsubordinated indebtedness. The notes are limited
to an aggregate initial principal amount of $900,000,000, plus
accrued and unpaid interest. The notes will mature on
November&nbsp;15, 2023 unless earlier repurchased by us as
described under &#147;&#151;&nbsp;Optional Redemption of the
Notes,&#148; repurchased by us at a holder&#146;s option on
certain dates as described under &#147;&#151;&nbsp;Repurchase
Right at the Option of Holders&#148; or upon a change of control
of Calpine as described under &#147;&#151;&nbsp;Change of
Control&#148; or converted at a holder&#146;s option as
described under &#147;&#151;&nbsp;Conversion Rights.&#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;
We issued the notes at a price to investors of $1,000&nbsp;per
note. Interest on the notes will accrue at the rate of
4.75%&nbsp;per annum on the principal amount of each note. We
will make interest payments on the notes semiannually on May 15
and November&nbsp;15 of each year, commencing on May&nbsp;15,
2004. 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. We will make each interest
payment to holders of record of the notes on the immediately
preceding May&nbsp;1 and November&nbsp;1, whether or not this
day is a business day. Interest on the notes 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>Ranking</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 are our senior unsecured obligations and rank equally
in right of payment with all our existing and future senior
indebtedness, including indebtedness under our secured term
loans, our senior secured credit facility and our various series
of secured and unsecured senior notes. The notes will be senior
in right of payment to all our existing and future subordinated
indebtedness. However, because the notes will not be guaranteed
by our subsidiaries, they will be effectively junior to all
existing and future indebtedness and other liabilities,
including trade payables, of our subsidiaries. Additionally,
because the notes are unsecured, they will be effectively junior
to all of our existing and future secured debt. Under the
indenture, we and our subsidiaries will be permitted to incur
unlimited additional indebtedness other than with respect to
certain restrictions on liens and Sale and Leaseback
Transactions. See &#147;&#151;&nbsp;Limitation on Liens&#148;
and &#147;&#151;&nbsp;Limitation on Sale and Leaseback
Transactions.&#148; Our subsidiaries had approximately
$13.5&nbsp;billion of indebtedness and other liabilities,
including trade payables and excluding deferred tax liabilities,
as of December&nbsp;31, 2004. In addition, as of
December&nbsp;31, 2004, we had $6.4&nbsp;billion
($7.1&nbsp;billion inclusive of the notes) of unsecured debt
that would rank equally with the notes and $10.9&nbsp;billion of
secured debt that would be effectively senior 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>Conversion Rights</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;
Subject to the restrictions described in this Description of the
Notes, a holder may convert any outstanding notes into cash and
shares of our common stock based on an initial conversion price
per share of $6.50 in accordance with the conversion mechanism
set forth below under &#147;&#151;&nbsp;Conversion Rights.&#148;
This represents an initial conversion rate of approximately
153.8462&nbsp;shares per $1,000 principal amount of the notes.
The conversion price (and resulting conversion rate) is,
however, subject to adjustment as described below under
&#147;&#151;&nbsp;Conversion Rate Adjustments.&#148; A holder
may convert notes only in denominations of $1,000 and integral
multiples of $1,000.
</DIV>

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

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

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>General</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders may surrender notes for conversion into cash and shares
of our common stock prior to the maturity date in the following
circumstances:
</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;during any calendar quarter commencing after the
    issuance of the notes, if our common stock price for at least 20
    trading days in the period of 30 consecutive trading days ending
    on the last trading day of the calendar quarter preceding the
    calendar quarter in which the conversion occurs is more than
    120% of the conversion price then in effect on that 30th trading
    day;</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;if we have called the particular notes for redemption
    and the redemption has not yet occurred;</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;during the five trading day period after any five
    consecutive trading day period in which the average trading
    price of the notes for each day of such five-day period was less
    than 95% of the product of the common stock price on that day
    multiplied by the conversion rate;&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;
    (4)&nbsp;upon the occurrence of specified corporate transactions
    described below under &#147;&#151;&nbsp;Conversion Upon
    Specified Corporate Transactions.&#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;
Subject to certain exceptions described below under
&#147;&#151;&nbsp;Conversion Upon Satisfaction of Trading Price
Condition&#148; and &#147;&#151;&nbsp;Conversion Upon Specified
Corporate Transactions,&#148; once notes are tendered for
conversion, holders tendering the notes will be entitled to
receive cash and shares of our common stock, the value of which
(the &#147;conversion value&#148;) will be equal to the product
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 conversion rate;&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 &#147;five day average closing stock price,&#148;
    which is the average of the closing prices per share of our
    common stock for the five consecutive trading days
    (appropriately adjusted to take into account the occurrence
    during such period of stock splits and similar events) including
    and immediately following the second trading day following the
    day the notes are tendered for conversion.</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 certain exceptions described below and under
&#147;&#151;&nbsp;Conversion Upon Satisfaction of Trading Price
Condition&#148; and &#147;&#151;&nbsp;Conversion Upon Specified
Corporate Transactions,&#148; we will deliver the conversion
value to tendering holders as follows:
</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 amount in cash, referred to as the &#147;principal
    return,&#148; equal to the lesser of (a)&nbsp;the conversion
    value and (b)&nbsp;the principal amount of the notes to be
    converted;</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;if the conversion value is greater than the principal
    return, a number of shares of our common stock, which we refer
    to as the &#147;net shares,&#148; determined by dividing the
    &#147;net share amount,&#148; which is equal to the difference
    between the conversion value and the principal return, by the
    five day average closing price;&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;an amount paid in cash to account for any fractional
    shares of common stock, based on the five day average closing
    stock price.</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 conversion value, principal return and net share amount will
be determined at the end of the fifth consecutive trading day
including and immediately following the second trading day after
the day the notes are tendered for conversion. We will pay the
principal return and cash for fractional shares and deliver the
net shares as promptly as practicable after the determination
date, but in no event later than four business days thereafter.
</DIV>

<DIV align="left" style="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 of the principal return, net shares and cash in lieu of
fractional shares will be deemed to satisfy our obligation to
pay the principal amount of the notes, including accrued
interest and liquidated damages payable on the notes, except as
described below. Accrued interest will be deemed paid in full
rather than canceled, extinguished or forfeited. We will not
adjust the conversion price to account for the accrued interest.
</DIV>

<DIV align="left" style="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 described in the following sentence, upon conversion
of any notes on a date that is not an interest payment date,
holders will not be entitled to receive any additional cash
payment representing accrued and unpaid interest (and liquidated
damages, if any) for the period from the immediately preceding
interest
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
payment date to the conversion date with respect to the
converted notes, and, as provided above, such interest (and
liquidated damages, if any) will be deemed paid in full.
Nonetheless, if notes are converted after a regular record date
and prior to the opening of business on the next interest
payment date, including the date of maturity, holders of such
notes at the close of business on the regular record date will
receive the interest (and liquidated damages, if any) payable on
such notes on the corresponding interest payment date
notwithstanding the conversion.
</DIV>

<DIV align="left" style="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 exercise your conversion right, you must deliver
an irrevocable conversion notice in accordance with the
provisions of the indenture, together, if the notes are in
certificated form, with the certificated security, to the
conversion agent who will, on your behalf, convert the notes
into cash and shares of our common stock. You may obtain copies
of the required form of the conversion notice from the
conversion agent. If a holder of a note has delivered notice of
its election to have such note repurchased at the option of such
holder or as a result of a change of control, such note may be
converted only if the notice of election is withdrawn as
described under &#147;&#151;&nbsp;Repurchase Right at the Option
of Holders&#148; or &#147;&#151;&nbsp;Change of Control.&#148;
If an event of default, as described under
&#147;&#151;&nbsp;Events of Default,&#148; has occurred and is
continuing (other than a default in a cash payment upon
conversion of the notes), we may not pay cash upon conversion of
any notes (other than cash in lieu of fractional shares) and
instead will make payment only through the delivery of shares.
The number of shares to be delivered will be equal to the
conversion rate.
</DIV>

<DIV align="left" style="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 &#147;common stock price&#148; on any date means the closing
sale price per share (or if no closing sale price is reported,
the average of the bid and ask prices or, if more than one in
either case, the average of the average bid and the average ask
prices) on such date for our common stock as reported in
composite transactions on the principal United States securities
exchange on which our common stock is traded or, if our common
stock is not listed on a United States national or regional
securities exchange, as reported by The Nasdaq System.
</DIV>

<DIV align="left" style="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 &#147;trading day&#148; means any regular or abbreviated
trading day of The New York Stock 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;
The &#147;trading price&#148; of the notes on any date of
determination means the average of the secondary market bid
quotations per $1,000 principal amount of notes obtained by the
bid solicitation agent for $5,000,000 principal amount of the
notes at approximately 3:30&nbsp;p.m., New York City time, on
such determination date from three independent nationally
recognized securities dealers we select, which may include any
of the initial purchasers; <I>provided </I>that if at least
three such bids cannot reasonably be obtained by the bid
solicitation agent, but two such bids are obtained, then the
average of the two bids shall be used, and if only one such bid
can reasonably be obtained by the bid solicitation agent, this
one bid shall be used. If the bid solicitation agent cannot
reasonably obtain at least one such bid or, in our reasonable
judgment, the bid quotations are not indicative of the secondary
market value of the notes, then the trading price of the notes
will be determined in good faith by the bid solicitation agent,
taking into account in such determination such factors as it, in
its sole discretion after consultation with us, deems
appropriate. The bid solicitation agent shall not be required to
determine the trading price of the notes unless requested in
writing by us.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Conversion Upon Satisfaction of Common Stock Price
    Condition</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A holder may surrender any of its notes for conversion during
any calendar quarter commencing after the issuance of the notes
by delivering the notes to the conversion agent, if our common
stock price for at least 20 trading days in the period of 30
consecutive trading days ending on the last trading day of the
calendar quarter preceding the calendar quarter in which the
conversion occurs is more than 120% of the conversion price on
that 30th trading day.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Conversion Upon Satisfaction of Trading Price
    Condition</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A holder may surrender any of its notes for conversion during
the five trading day period immediately after the occurrence of
the &#147;trading price condition.&#148; The trading price
condition occurs when, for any five consecutive trading day
period in which the trading price of the notes, as determined
following a request by a holder of the notes in accordance with
the procedures described below, for each day of such five-day
period is less than 95% of the product of the common stock price
on that day multiplied by the conversion rate; <I>provided
</I>that if on the date of any conversion pursuant to the
trading price condition, our common stock price
</DIV>

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<DIV align="left" style="font-size: 10pt;">
is greater than the conversion price on such date but less than
120% of the conversion price on such date, then the conversion
value you will be entitled to receive will be equal to the
principal amount of your notes plus accrued and unpaid interest
(and liquidated damages, if any) as of the conversion date.
Shares of our common stock and any cash in lieu of fractional
shares delivered upon a conversion in those circumstances will
be valued at the greater of the conversion price on the
conversion date and our common stock price as of the conversion
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 bid solicitation agent shall have no obligation to determine
the trading price of the notes unless we have requested such
determination, and we shall have no obligation to make such
request unless a holder of the notes provides us with reasonable
evidence that the trading price of the notes would be less than
95% of the product of the common stock price and the conversion
rate. At such time, we shall instruct the bid solicitation agent
in writing to determine the trading price beginning on the next
trading day and on each successive trading day until the trading
price of the notes is greater than or equal to 95% of the
product of the common stock price and the conversion rate.
</DIV>

<DIV align="left" style="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 bid solicitation agent will initially be American Stock
Transfer&nbsp;&#38; Trust Company, but we may select any bank,
trust company or similar fiduciary agent to serve as bid
solicitation agent.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Conversion Upon Notice of Redemption</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A holder may surrender for conversion any note called for
redemption by delivering the notes to the conversion agent at
any time prior to the close of business on the day that is two
business days prior to the redemption date, even if the notes
are not otherwise convertible at such time.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Conversion Upon Specified Corporate Transactions</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If we elect 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;distribute to all or substantially all holders of our
    common stock rights, warrants or options entitling them to
    subscribe for or purchase, for a period expiring within
    60&nbsp;days of the date of distribution, shares of our common
    stock at less than the closing price per share of our common
    stock on the day prior to the date upon which such a
    distribution is announced;&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;distribute to all or substantially all holders of
    shares of our common stock any assets, debt securities or
    certain rights to purchase our securities, which distribution
    has a per share value exceeding 12.5% of the closing price of
    our common stock on the day preceding the declaration date for
    such distribution,</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;">
we must notify the holders of notes at least 20&nbsp;days prior
to the ex-dividend date for such distribution. Once we have
given such notice, holders may surrender their notes for
conversion by delivering the notes to the conversion agent until
the earlier of the close of business on the business day prior
to the ex-dividend date or our announcement that such
distribution will not take place. This provision shall not apply
if we provide that holders of notes will participate in the
distribution without conversion.
</DIV>

<DIV align="left" style="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 we are a party to a consolidation, merger, share
exchange, sale of all or substantially all of our assets or
other similar transaction, in each case pursuant to which the
shares of our common stock would be converted into cash,
securities or other property, a holder may surrender its notes
for conversion by delivering the notes to the conversion agent
at any time from and after the date that is 15&nbsp;days prior
to the anticipated date of such transaction until and including
the date that is 15&nbsp;days after the actual date of such
transaction. If we are a party to a consolidation, merger, share
exchange, sale of all or substantially all of our assets or
other similar transaction, in each case pursuant to which the
shares of our common stock are converted into cash, securities,
or other property, then at the effective time of the
transaction, a holder&#146;s right to receive any shares of our
common stock upon conversion of its notes will be changed into a
right to receive the kind and amount of cash, securities and
other property that such holder would have received for such
shares if such holder had converted such notes immediately prior
to the transaction. Alternatively, if the transaction also
constitutes a change of control, such holder can instead require
us to repurchase all or a portion of its notes as described
under &#147;&#151;&nbsp;Change of Control.&#148;
</DIV>

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

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

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Conversion Rate Adjustments</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The conversion price will be subject to adjustment (without
duplication) upon the following events:
</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 dividends and other distributions on our
    common stock that are payable exclusively in shares of our
    common 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;the issuance to all holders of our common stock of
    rights, warrants or options that allow the holders to purchase
    shares of our common stock at less than the current market
    price; <I>provided </I>that no adjustment will be made if
    holders of the notes may participate in the transaction on a
    basis and with notice that our board of directors determines to
    be fair and appropriate;</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 subdivision or combination of our common 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;
    (4)&nbsp;the declaration of a cash dividend or distribution to
    all or substantially all of the holders of our common stock. If
    we declare such a cash dividend or distribution, the conversion
    price shall be decreased to equal the number determined by
    multiplying the conversion price in effect immediately prior to
    the record date for such dividend or distribution by the
    following fraction:</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
(Pre-Dividend Sale Price&nbsp;&#151; Dividend Adjustment Amount)
</DIV>

<DIV align="center" style="font-size: 3pt;">
<DIV style="width: 43%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt;">
(Pre-Dividend Sale Price)
</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">
    <I>provided </I>that no adjustment to the conversion price or
    the ability of a holder of a note to convert will be made if we
    provide that holders of notes will participate in the cash
    dividend or distribution without conversion. In addition, if the
    numerator of the foregoing fraction is less than $1.00
    (including a negative amount), then in lieu of any adjustment
    under this clause&nbsp;(4), we shall make adequate provision so
    that each holder of notes shall have the right to receive upon
    conversion, in addition to the shares of common stock (and any
    cash in lieu of fractional shares) deliverable upon such
    conversion, the amount of cash such holder would have received
    had such holder converted such notes on the record date for such
    cash dividend or distribution at the conversion rate and for the
    conversion value in effect on such record date.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    &#147;Pre-Dividend Sale Price&#148; means the average common
    stock price for the three consecutive trading days ending on the
    trading day immediately preceding the ex-dividend date for such
    dividend or distribution. &#147;Dividend Adjustment Amount&#148;
    means the full amount of the dividend or distribution to the
    extent payable in cash applicable to one share of common stock;</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;
    (5)&nbsp;the payment of dividends and other distributions to all
    holders of our common stock, consisting of evidences of our
    indebtedness, securities or capital stock, cash or assets,
    except for (a)&nbsp;those rights or warrants referred to in
    clause&nbsp;(2) above or (b)&nbsp;any cash dividend or
    distribution referred to in clause&nbsp;(4) above; <I>provided
    </I>that no adjustment will be made if all holders of the notes
    may participate in the transactions;&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 payment to holders of our common stock in respect
    of a tender or exchange offer, other than an odd-lot offer, by
    us or any of our subsidiaries for our common stock to the extent
    that the offer involves aggregate consideration that, together
    with any cash and the fair market value of any other
    consideration payable in respect of any tender offer by us or
    any of our subsidiaries for shares of our common stock
    consummated within the preceding 12&nbsp;months not triggering a
    conversion price adjustment, and all-cash distributions to all
    or substantially all holders of our common stock made within the
    preceding 12&nbsp;months not triggering a Conversion Price
    adjustment exceeds an amount equal to 12.5% of the market
    capitalization of our common stock on the expiration date of the
    tender offer.</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">
    The applicable conversion price will not be adjusted:</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;
    (1)&nbsp;upon the issuance of any shares of our common stock
    pursuant to any present or future plan providing for the
    reinvestment of dividends or interest payable on our securities
    and the investment of additional optional amounts in shares of
    our common stock under any plan,</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;upon the issuance of any shares of our common stock or
    options or rights to purchase those shares pursuant to any of
    our present or future employee, director or consultant benefit
    plans or programs,</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;
    (3)&nbsp;upon the issuance of any shares of our common stock
    pursuant to any option, warrant, right, or exercisable,
    exchangeable or convertible security outstanding as of the date
    the notes were first issued,&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;
    (4)&nbsp;upon the issuance of any rights, any distribution of
    separate certificates representing the rights, any exercise or
    redemption of any rights or any termination or invalidation of
    the rights pursuant to our stockholders rights plan.</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 may decrease the conversion price for at least 20&nbsp;days,
so long as the decrease is irrevocable during that 20-day
period. No adjustment in the applicable conversion price will be
required unless the adjustment would require an increase or
decrease of at least 1% of the applicable conversion price
(other than an adjustment described in
paragraph&nbsp;(6)&nbsp;above). If the adjustment is not made
because the adjustment does not change the applicable conversion
price by more than 1%, then the adjustment that is not made will
be carried forward and taken into account in any future
adjustment. Except as specifically described above, the
applicable conversion price will not be subject to adjustment in
the case of the issuance of any of our common stock, or
securities convertible into or exchangeable for our common stock.
</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>Optional Redemption of 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;
Beginning on November&nbsp;22, 2009, we may redeem the notes, in
whole at any time, or in part from time to time, for cash at a
price equal to 100% of the principal amount of the notes plus
accrued and unpaid interest (and liquidated damages, if any) up
to but not including the date of redemption. We will give not
less than 30&nbsp;days&#146; nor more than 60&nbsp;days&#146;
notice of redemption by mail to holders of the notes. If we opt
to redeem less than all of the notes at any time, the trustee
will select or cause to be selected the notes to be redeemed by
any method that it deems fair and appropriate. In the event of a
partial redemption, the trustee may provide for selection for
redemption of portions of the principal amount of any note of a
denomination larger than $1,000.
</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>Repurchase Right 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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders have the right to require us to repurchase all or a
portion of their notes on November&nbsp;15, 2009,
November&nbsp;15, 2013 and November&nbsp;15, 2018. We will be
required to repurchase any outstanding notes for which holders
deliver a written repurchase notice to the paying agent. This
notice must be delivered during the period beginning at any time
from the opening of business on the date that is 20 business
days prior to the repurchase date until the close of business on
the last business day prior to the repurchase date. If the
repurchase notice is given and withdrawn during the period, we
will not be obligated to repurchase the related 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 repurchase price payable will be equal to 100% of the
principal amount of the notes plus any accrued and unpaid
interest (and liquidated damages, if any) to such repurchase
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;
We may choose, in our sole discretion, to pay the repurchase
price in cash or shares of our common stock, or a combination of
cash and shares of our common 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;
If we choose to pay the repurchase price, in whole or in part,
in shares of our common stock or a combination of cash and
shares of our common stock, we will be required to give notice
on a date not less than 20 business days prior to the repurchase
date to all holders at their addresses shown in the register of
the registrar, and to beneficial owners as required by
applicable law (i.e. if no notice is given, we will pay the
repurchase price with cash), stating among other things:
</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;whether we will pay the repurchase price of the notes
    in cash, in shares of our common stock, or any combination
    thereof, and specifying the percentages of each;</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;if we elect to pay with shares of our common stock, the
    method of calculating the price of the common 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;
    (3)&nbsp;the procedures that holders must follow to require us
    to repurchase their 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;
Simultaneously with such notice of purchase, we will disseminate
a press release through Dow Jones&nbsp;&#38; Company, Inc.,
Business Wire, Bloomberg Business News or Reuters, or, if such
organizations are not in
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
existence at the time of issuance of such press release, such
other news or press organization as is reasonably calculated to
broadly disseminate the relevant information to the public,
containing this information and publish the information on our
website or through such other public medium as we may use at
that 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;
If we pay the repurchase price with shares of our common stock,
the shares will be valued at 100% of the average closing prices
of our common stock for the five trading days immediately
preceding and including the third trading day prior to the date
of repurchase, appropriately adjusted to take into account the
occurrence, during the period commencing on the first of the
trading days during the five trading day period and ending on
the repurchase date, of certain events that would result in an
adjustment of the conversion rate with respect to our common
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;
A notice electing to require us to repurchase notes must state:
</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;if certificated notes have been issued, the notes&#146;
    certificate numbers, or if not certificated, the notice must
    comply with appropriate DTC procedures;</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 portion of the principal amount of notes to be
    repurchased, in multiples of $1,000;</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;that the notes are to be repurchased by us pursuant to
    the applicable provisions of the notes;&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;in the event we elect, pursuant to the notice that we
    are required to give, to pay the repurchase price in shares of
    common stock, in whole or in part, but the repurchase price is
    ultimately to be paid to the holder entirely in cash because any
    of the conditions to payment of the repurchase price or portion
    of the repurchase price in shares of common stock is not
    satisfied prior to the close of business on the last day prior
    to the repurchase date, as described below, whether the holder
    elects:</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;to withdraw the repurchase notice as to some or all of
    the notes to which it relates,&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;
    (b)&nbsp;to receive cash in respect of the entire repurchase
    price for all notes or portions of notes subject to the
    repurchase notice.</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 holder fails to indicate the holder&#146;s choice with
respect to the election described in clause&nbsp;(4) above, the
holder will be deemed to have elected to receive cash in respect
of the entire repurchase price for all notes subject to the
repurchase notice in these circumstances.
</DIV>

<DIV align="left" style="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 may withdraw any repurchase notice by a written notice
of withdrawal delivered to the paying agent prior to the close
of business on the last day prior to the repurchase date. The
notice of withdrawal must state:
</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 of the withdrawn 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;if certificated notes have been issued, the certificate
    numbers of the withdrawn notes, or if not certificated, the
    notice must comply with appropriate DTC procedures;&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;the principal amount, if any, which remains subject to
    the repurchase notice.</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 we elect to pay the repurchase price, in whole or in part, in
shares of our common stock, the number of shares to be delivered
by us will be equal to the portion of the repurchase price to be
paid in shares of our common stock divided by the market price
of one share of our common stock as determined by us in our
repurchase notice. We will pay cash based on the market price
for all fractional shares. We may only pay the repurchase price
in shares of our common stock if we satisfy conditions provided
in the indenture relating to the qualification or registration
of the shares under applicable securities laws.
</DIV>

<DIV align="left" style="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 the market price of our common stock is determined prior
to the repurchase date, holders of notes bear the market risk
with respect to the value of the common stock to be received
from the date the market price is determined to the repurchase
date. We may pay the repurchase price or any portion of the
repurchase price in shares of common stock only if the
information necessary to calculate the market price is published
in a daily newspaper of national circulation or is otherwise
publicly available.
</DIV>

<DIV align="left" style="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 determination of the actual number of shares of common
stock to be paid upon repurchase of the notes, we will
disseminate a press release not later than two business days
prior to the repurchase date through
</DIV>

<P align="center" style="font-size: 10pt;">32

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<DIV align="left" style="font-size: 10pt;">
Dow Jones&nbsp;&#38; Company, Inc., Bloomberg Business News or
Reuters, or, if such organizations are not in existence at the
time of issuance of such press release, such other news or press
organization as is reasonably calculated to broadly disseminate
the relevant information to the public, containing this
information and publish the information on our website or
through such other public medium as we may use at that 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;
A holder must either effect book-entry transfer or deliver the
notes, together with necessary endorsements, to the office of
the paying agent after delivery of the repurchase notice to
receive payment of the repurchase price. Holders will receive
payment on the later of the repurchase date or the time of
book-entry transfer or the delivery of the notes. If the paying
agent holds money or securities sufficient to pay the repurchase
price of the notes on the business day following the repurchase
date, then:
</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 notes will cease to be outstanding;</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;interest (and liquidated damages, if any) will cease to
    accrue;&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;all other rights of the holder of the notes will
    terminate.</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 will be the case whether or not book-entry transfer of the
notes is made or whether or not the notes are delivered to the
paying 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;
We will comply with the provisions of Rule&nbsp;13e-4 and any
other tender offer rules under the Securities Exchange Act which
may be applicable at the time. We will file Schedule&nbsp;TO or
any other schedule required in connection with any offer by us
to repurchase 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>Change of Control</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 (as defined below) occurs, a holder of
notes will have the right, at its option, to require us to
repurchase all of its notes, or any portion of the principal
amount thereof that is equal to $1,000 or an integral multiple
of $1,000. The price we will be required to pay is equal to the
issue price plus any accrued and unpaid interest (and liquidated
damages, if any) up to but excluding the date of repurchase.
</DIV>

<DIV align="left" style="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 our option, instead of paying the repurchase price in cash,
we may pay the repurchase price in registered shares of our
common stock valued at 95% of the average closing prices of our
common stock for the five trading days immediately preceding and
including the third trading day prior to the date of repurchase,
appropriately adjusted to take into account the occurrence,
during the period commencing on the first of the trading days
during the five trading day period and ending on the repurchase
date, of certain events that would result in an adjustment of
the conversion rate with respect to our common stock. We may
only pay the repurchase price in shares of our common stock if
we satisfy conditions 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;
Within 30&nbsp;days after the occurrence of a change of control,
we are obligated to give to the holders of notes notice of a
change of control and of the repurchase right arising as a
result of the change of control. We must also deliver a copy of
this notice to the trustee. To exercise the repurchase right, a
holder of notes must deliver on or before the 30th day after the
date of our notice irrevocable written notice to the trustee of
the holder&#146;s exercise of its repurchase right, together
with the notes with respect to which the right is being
exercised. We are required to repurchase the notes on the date
that is 45&nbsp;days after the date of our 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;
Simultaneously with such notice of the change of control, we
will disseminate a press release through Dow Jones&nbsp;&#38;
Company, Inc., Business Wire, Bloomberg Business News or
Reuters, or, if such organizations are not in existence at the
time of issuance of such press release, such other news or press
organization as is reasonably calculated to broadly disseminate
the relevant information to the public) containing this
information and publish the information on our website or
through such other public medium as we may use at that 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;
A &#147;change of control&#148; will be deemed to have occurred
if any of the following occurs:
</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 person, including any syndicate or group deemed to
    be a &#147;person&#148; under Section&nbsp;13(d)(3) of the
    Securities Exchange Act, acquires beneficial ownership, directly
    or indirectly, through a purchase, merger or other acquisition
    transaction or series of transactions, of shares of our capital
    stock entitling the person to exercise 50% or more of the total
    voting power of all shares of our capital stock that is entitled
    to</TD>
</TR>

</TABLE>

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

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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">
    vote generally in elections of directors, other than an
    acquisition by us, any of our subsidiaries or any of our
    employee benefit plans;&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;we merge or consolidate with or into any other person,
    any merger of another person into us, or we convey, sell,
    transfer or lease all or substantially all of our assets to
    another person, other than any transaction:</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;that does not result in any reclassification,
    conversion, exchange or cancellation of outstanding shares of
    our capital 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;
    (b)&nbsp;pursuant to which the holders of our common stock
    immediately prior to the transaction have the entitlement to
    exercise, directly or indirectly, 50% or more of the total
    voting power of all shares of capital stock entitled to vote
    generally in the election of directors of the continuing or
    surviving corporation immediately after the transaction,&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;
    (c)&nbsp;which is effected solely to change our jurisdiction of
    incorporation and results in a reclassification, conversion or
    exchange or outstanding shares of our common stock solely into
    shares of common stock of the surviving entity.</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;
However, a change of control will not be deemed to have occurred
if either (A)&nbsp;the closing price per share of our common
stock on the New York Stock Exchange for any five trading days
within the period of 10 consecutive trading days ending
immediately after the later of the event, that, but for this
provision, would constitute a change of control or the public
announcement of such event, in the case of a change of control
relating to an acquisition of capital stock, or the period of 10
consecutive trading days ending immediately before such event,
in the case of change of control relating to a merger,
consolidation or asset sale, equals or exceeds 105% of the
conversion price of the notes in effect on each of those trading
days or (B)&nbsp;all of the consideration (excluding cash
payments for fractional shares and cash payments made pursuant
to dissenters&#146; appraisal rights) in a merger or
consolidation otherwise constituting a change of control under
clause&nbsp;(1) and/or (2)&nbsp;above consists of shares of
common stock traded on a national securities exchange or quoted
on the Nasdaq National Market (or will be so traded or quoted
immediately following the merger or consolidation) and as a
result of the merger or consolidation the notes become
convertible into such common 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;
For purposes of these provisions:
</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 conversion price is equal to $1,000 divided by the
    conversion rate in effect as of the date of the change of
    control;</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;whether a person is a &#147;beneficial owner&#148; will
    be determined in accordance with Rule&nbsp;13d-3 under the
    Securities Exchange Act;&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;&#147;person&#148; includes any syndicate or group that
    would be deemed to be a &#147;person&#148; under
    Section&nbsp;13(d)(3) of the Securities Exchange Act.</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;13e-4 under the Securities Exchange Act requires the
dissemination of prescribed information to security holders in
the event of an issuer tender offer and may apply in the event
that the repurchase option becomes available to the holders of
notes. We will comply with this rule to the extent it applies at
that 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;
The definition of change of control includes a phrase relating
to the conveyance, transfer, sale, lease or disposition of
&#147;all or substantially all&#148; of our assets. There is no
precise, established definition of the phrase
&#147;substantially all&#148; under applicable law. Accordingly,
the ability of a holder of notes to require us to repurchase its
notes as a result of the conveyance, transfer, sale, lease or
other disposition of less than all of our assets may be
uncertain.
</DIV>

<DIV align="left" style="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 foregoing provisions would not necessarily provide the
holders of notes with protection if we are involved in a highly
leveraged transaction or other transaction that may adversely
affect the holders.
</DIV>

<DIV align="left" style="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 were to occur, we may not have enough
funds to pay the repurchase price. We have previously incurred,
and may in the future incur, other indebtedness with similar
change of control provisions
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
permitting its holders to accelerate or to require us to
repurchase our indebtedness upon the occurrence of similar
events or on some specified dates. If we fail to repurchase the
notes when required following a change of control, we will be in
default 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>Merger and Sales of Assets</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 may not consolidate with or merge with or into any other
person or sell, assign, convey, transfer, or otherwise dispose
of all or substantially all of our properties and assets as an
entirety to any 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;we are the surviving 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;
    (2)&nbsp;the person formed by the consolidation or into which we
    are merged or the person to which our properties and assets are
    so sold, assigned, conveyed, transferred, leased or otherwise
    disposed of, shall be a corporation organized and existing under
    the laws of the United States, any state within the United
    States or the District of Columbia and shall expressly assume,
    in a form reasonably satisfactory to the trustee, all of our
    obligations under the indenture and the notes;&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;immediately after giving effect to the transaction, no
    event of default with respect to the notes will have occurred
    and be continuing.</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, we may not, directly or indirectly, lease all or
substantially all of our properties or assets, in one or more
related transactions, to any other person.
</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>Limitation on Sale and Leaseback Transactions</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 terms of the indenture, we shall not, and shall not
permit any of our Restricted Subsidiaries to, enter into any
Sale and Leaseback Transaction 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;we or the Restricted Subsidiary would be entitled to
    create a Lien on the property or asset subject to the Sale and
    Leaseback Transaction securing Indebtedness in an amount equal
    to the Attributable Debt with respect to that transaction
    without equally and ratably securing the notes pursuant to the
    covenant described below under &#147;&#151;&nbsp;Limitation on
    Liens;&#148;&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;the net proceeds of the sale are at least equal to the
    fair value (as determined by our board of directors) of the
    property or asset subject to the Sale and Leaseback Transaction
    and we, or the Restricted Subsidiary, apply or cause to be
    applied, within 180&nbsp;days of the effective date of the Sale
    and Leaseback Transaction, an amount in cash equal to the net
    proceeds of the sale to the retirement of our Indebtedness, or
    Indebtedness of the Restricted 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;
In addition to the transactions permitted pursuant to the
clauses&nbsp;(1) and (2)&nbsp;above, we or any of our Restricted
Subsidiaries may enter into a Sale and Leaseback Transaction as
long as the sum 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 Attributable Debt with respect to that Sale and
    Leaseback Transaction and all other Sale and Leaseback
    Transactions entered into pursuant to this provision, 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 amount of outstanding Indebtedness secured by Liens
    incurred pursuant to the final paragraph of the covenant
    described under &#147;&#151;&nbsp;Limitation on Liens&#148;
    below,</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;">
does not exceed 15% of our Consolidated Net Tangible Assets as
determined based on our consolidated balance sheet as of the end
of the most recent fiscal quarter for which financial statements
are available. In addition, any Restricted Subsidiary may enter
into a Sale and Leaseback Transaction with respect to property
or assets owned by that Restricted Subsidiary so long as the
proceeds of that Sale and Leaseback Transaction are used to
explore, drill, develop, construct, purchase, repair, improve or
add to property or assets of any Restricted Subsidiary, or to
repay (within 365&nbsp;days of the commencement of full
commercial operation of any such property or assets)
Indebtedness incurred to explore, drill, develop, construct
purchase, repair, improve or add to property or assets of any
Restricted Subsidiary.
</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;
As used in the indenture, the following terms are defined as
follows:
</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;
    &#147;Attributable Debt,&#148; in respect of a Sale and
    Leaseback transaction, means, as of the date of determination,
    the present value (discounted at the rate of interest set forth
    or implicit in terms of the lease (or, if not practicable to
    determine that rate, the rate of interest borne by the notes),
    compounded annually) of the total obligations of the lessee for
    rental payments during the remaining term of the lease included
    in such Sale and Leaseback Transaction (including any period for
    which such lease has been extended).</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;
    &#147;Capitalized Lease Obligations&#148; of a person means the
    rental obligations under any lease of any property (whether
    real, personal or mixed) of which the discounted present value
    of the rental obligations of that person as lessee, in
    conformity with generally accepted accounting principles, is
    required to be capitalized on the balance sheet of that person.
    The stated maturity of any such lease 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 terminated
    by the lessee without payment of a penalty.</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;
    &#147;Consolidated Current Liabilities&#148; means, as of the
    date of determination, our aggregate amount of consolidated
    liabilities, and those of our Restricted Subsidiaries, which may
    properly be classified as current liabilities (including taxes
    accrued as estimated), after eliminating (i)&nbsp;all
    inter-company items between Calpine and its subsidiaries and
    (ii)&nbsp;all current maturities of long-term Indebtedness, all
    as determined in accordance with generally accepted accounting
    principles.</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;
    &#147;Consolidated Net Tangible Assets&#148; means, as of the
    date of determination, the total amount of consolidated assets
    (less accumulated depreciation or amortization, allowances for
    doubtful receivables, other applicable reserves and other
    properly deductible items) under generally accepted accounting
    principles which would appear on our consolidated balance sheet
    and that of our subsidiaries, determined in accordance with
    generally accepted accounting principles, and after giving
    effect to purchase accounting and after deducting therefrom, to
    the extent otherwise included, the amounts 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;Consolidated Current Liabilities;</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;minority interests in our Restricted Subsidiaries held
    by a third person or another Restricted Subsidiary;</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;excess of cost over fair value of assets of businesses
    acquired, as determined in good faith by Calpine&#146;s board of
    directors;</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;
    (d)&nbsp;any revaluation or other write-up in value of assets
    subsequent to December&nbsp;31, 1993 as a result of a change in
    the method of valuation in accordance with generally accepted
    accounting principles;</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;
    (e)&nbsp;unamortized debt discount and expenses and other
    unamortized deferred charges, goodwill, patents, trademarks,
    service marks, trade names, copyrights, licenses, organization
    or developmental expenses and other intangible items;</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;
    (f)&nbsp;treasury 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;
    (g)&nbsp;any cash set apart and held in a sinking fund or other
    analogous fund established for the purpose of redemption or
    other retirement of capital stock to the extent such obligation
    is not reflected in Consolidated Current Liabilities.</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;
    &#147;Indebtedness&#148; of any person means, without
    duplication:</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 of and premium (if any premium is then
    due and owing) in respect of indebtedness of that person for
    money borrowed;</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 Capitalized Lease Obligations of that 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;
    (c)&nbsp;all obligations of that person for the reimbursement of
    any obligor on any letter of credit, banker&#146;s acceptance or
    similar credit transaction, other than obligations with respect
    to letters of</TD>
</TR>

</TABLE>

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

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<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">
    credit securing obligations (other than obligations described in
    clauses&nbsp;(a) and (b)&nbsp;above) entered into in the
    ordinary course of business of that person to the extent such
    letters of credit are not drawn upon or, if and to the extent
    drawn upon, that drawing is reimbursed no later than the tenth
    business day following receipt by that person of a demand for
    reimbursement following payment on the letter of credit;</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;
    (d)&nbsp;all obligations of the type referred to in
    clauses&nbsp;(a) through (c)&nbsp;above of other persons and all
    dividends of other persons for the payment of which, in either
    case, that person is responsible or liable, directly or
    indirectly, as obligor, guarantor or otherwise;&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;
    (e)&nbsp;all obligations of the type referred to in
    clauses&nbsp;(a) through (d)&nbsp;above of other persons secured
    by any Lien on any property or asset of that person (whether or
    not such obligation is assumed by that person), the amount of
    the obligation on any date of determination being deemed to be
    the lesser of the value of the property or assets or the amount
    of the obligation so secured.</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;
    The amount of Indebtedness of any person at any date shall be,
    with respect to unconditional obligations, the outstanding
    balance at such date of all such obligations as described above
    and, with respect to any contingent obligations at such date,
    the maximum liability determined by that person&#146;s board of
    directors, in good faith, in light of the facts and
    circumstances existing at the time, as reasonably likely to be
    incurred upon the occurrence of the contingency giving rise to
    such obligation.</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;
    &#147;Lien&#148; means any mortgage, lien, pledge, charge, or
    other security interest or encumbrance of any kind (including
    any conditional sale or other title retention agreement and any
    lease in the nature 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;
    A &#147;Restricted Subsidiary&#148; means any subsidiary of a
    person that is not designated an Unrestricted Subsidiary by that
    person&#146;s board of directors.</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;
    A &#147;Sale and Leaseback Transaction&#148; means an
    arrangement relating to property now owned or later acquired
    whereby a person or one of such person&#146;s subsidiaries
    transfers that property to another person and then leases it
    back from that person, other than leases for a term of not more
    than 36&nbsp;months or leases between such person and a
    wholly-owned subsidiary of such person or between such
    person&#146;s wholly-owned subsidiaries.</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;
    &#147;Unrestricted Subsidiary&#148; means (i)&nbsp;any
    subsidiary that at the time of determination shall be designated
    an Unrestricted Subsidiary by a person&#146;s board of directors
    in the manner provided below and (ii)&nbsp;any subsidiary of an
    Unrestricted Subsidiary. A person&#146;s board of directors may
    designate any subsidiary (including any newly acquired or newly
    formed subsidiary) to be an Unrestricted Subsidiary unless such
    subsidiary owns any capital stock of, or owns or holds any Lien
    on any property of, that person or any other subsidiary of that
    person that is not a subsidiary of the subsidiary to be so
    designated, so long as the subsidiary to be designated an
    Unrestricted Subsidiary and all other subsidiaries previously so
    designated at the time of any determination hereunder shall, in
    the aggregate, have total assets not greater than 5% of our
    Consolidated Net Tangible Assets as determined based on the
    consolidated balance sheet of such person as of the end of the
    most recent financial quarter for which financial statements are
    available. A person&#146;s board of directors may designate any
    Unrestricted Subsidiary to be a Restricted Subsidiary;
    <I>provided, however,</I> that immediately after giving effect
    to that designation no Default or Event of Default under the
    indenture shall have occurred and be continuing. Any such
    designation by a person&#146;s board of directors shall be
    evidenced to the trustee by promptly filing with the trustee a
    copy of the board resolution giving effect to the designation
    and a certificate signed by two of that person&#146;s officers
    certifying that the designation complied with these provisions.
    However, the failure to file the resolution and/or certificate
    with the trustee shall not impair or affect the validity of the
    designation.</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>Limitation on Liens</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 terms of the indenture, we shall not, and shall not
permit any of our Restricted Subsidiaries to, directly or
indirectly incur any Lien upon any properties or assets
(including capital stock), whether owned at the date of issuance
of the notes or thereafter acquired, in each case to secure
Indebtedness of the Company or
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
any Restricted Subsidiary, without effectively providing that
the notes shall be secured equally and ratably with or prior to
that Indebtedness, so long as that Indebtedness shall be so
secured. The above restriction on Liens will not, however, 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;(a)&nbsp;Liens on assets or property incurred by us or
    any Restricted Subsidiary to secure Indebtedness incurred to
    finance the exploration, drilling, development, construction or
    purchase of or by, or repairs, improvements or additions to,
    property or assets of Calpine or such Restricted Subsidiary,
    which Liens may include Liens on the capital stock of a
    Restricted Subsidiary or (b)&nbsp;Liens incurred by any
    Restricted Subsidiary that does not own, directly or indirectly,
    at the time of such original incurrence of such Lien under this
    clause&nbsp;(1)(b) any operating properties or assets securing
    Indebtedness incurred to finance the exploration, drilling,
    development, construction or purchase of or by or repairs,
    improvements or additions to, property or assets of any
    Restricted Subsidiary that does not, directly or indirectly, own
    any operating properties or assets at the time of such original
    incurrence of such Lien, which Liens contemplated by this
    clause&nbsp;(1) may include Liens on the capital stock of one or
    more Restricted Subsidiaries that do not, directly or
    indirectly, own any operating properties or assets at the time
    of such original incurrence of such Lien, <I>provided,
    however,</I> that the Indebtedness secured by any such Lien may
    not be issued more than 365&nbsp;days after the later of the
    exploration, drilling, development, completion of construction,
    purchase, repair, improvement, addition or commencement of full
    commercial operation of the property or assets being so financed;</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 existing on the date of issuance of the notes,
    other than Liens relating to Indebtedness or other obligations
    being repaid or Liens that are otherwise extinguished with the
    proceeds 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;Liens on property, assets or shares of stock of a
    person at the time that person becomes a subsidiary of ours;
    <I>provided, however,</I> that any such Lien may not extend to
    any other property or assets owned by us or any of its
    Restricted Subsidiaries;</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 on property or assets existing at the time that
    we or one of our subsidiaries acquires the property or asset,
    including any acquisition by means of a merger or consolidation
    with or into us or one of our subsidiaries; <I>provided,
    however,</I> that such Liens are not incurred in connection
    with, or in contemplation of, that merger or consolidation; and
    <I>provided, further,</I> that the Lien may not extend to any
    other property or asset owned by us or any of our Restricted
    Subsidiaries;</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 securing Indebtedness or other obligations of one
    of our subsidiaries that is owing to us or any of our Restricted
    Subsidiaries, or Liens securing our Indebtedness or other
    obligations that are owing to one of our subsidiaries;</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 incurred on assets that are the subject of a
    Capitalized Lease Obligation to which we or any of our
    subsidiaries is a party, which shall include Liens on the stock
    or other ownership interest in one or more of our Restricted
    Subsidiaries leasing such assets;</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 to secure any refinancing, refunding, extension,
    renewal or replacement (or successive refinancings, refundings,
    extensions, renewals or replacements) as a whole, or in part, of
    any Indebtedness secured by any Lien referred to in
    clauses&nbsp;(1), (2), (3), (4)&nbsp;or (6)&nbsp;above;
    <I>provided, however,</I> that (a)&nbsp;such new Lien shall be
    limited to all or part of the same property or assets that
    secured the original Lien (plus repairs, improvements or
    additions to that property or assets and Liens on the stock or
    other ownership interest in one or more Restricted Subsidiaries
    beneficially owning that property or assets) and (b)&nbsp;the
    amount of Indebtedness secured by such Lien at such time (or, if
    the amount that may be realized in respect of such Lien is
    limited, by contract or otherwise, such limited lesser amount)
    is not increased, other than by an amount necessary to pay fees
    and expenses, including premiums, related to the refinancing,
    refunding, extension, renewal or replacement of the
    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;
    (8)&nbsp;Liens by which the notes are secured equally and
    ratably with other Indebtedness pursuant to this covenant.</TD>
</TR>

</TABLE>

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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;
However, we and any of our Restricted Subsidiaries may incur
other Liens to secure Indebtedness as long as the sum 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 lesser of (a)&nbsp;the amount of outstanding
    Indebtedness secured by Liens incurred pursuant to this
    provision (or, if the amount that may be realized in respect of
    such Lien is limited, by contract or otherwise, such limited
    lesser amount) and (b)&nbsp;the fair market value of the
    property securing that item 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;
    (2)&nbsp;the Attributable Debt with respect to all Sale and
    Leaseback Transactions entered into pursuant to clause&nbsp;(1)
    described under the covenant &#147;&#151;&nbsp;Limitation on
    Sale and Leaseback Transactions,&#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;">
does not exceed 15% of Calpine&#146;s Consolidated Net Tangible
Assets as determined based on our consolidated balance sheet as
of the end of the most recent fiscal quarter for which financial
statements are available.
</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</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 are events of default with respect to 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="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;default for 30&nbsp;days in payment of any interest
    installment due and payable 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 in payment of principal of the notes and
    accrued interest at maturity, upon repurchase or following a
    change of control, when the same becomes due and payable;</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;material default in our performance of any other
    covenants or agreements in the notes or the indenture which
    default continues for 30&nbsp;days after the date on which
    written notice of such default is given to us by the trustee or
    to us and trustee by the holders of at least 25% in principal
    amount of the then outstanding 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;
    (4)&nbsp;default by us under any instrument or instruments under
    which there is or may be secured or evidenced any of our
    indebtedness (other than the notes) having an outstanding
    principal amount of $50,000,000 (or its equivalent in any other
    currency or currencies) or more, individually or in the
    aggregate, that has caused the holders thereof to declare such
    indebtedness to be due and payable prior to its stated maturity,
    unless such declaration has been rescinded within 30&nbsp;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;
    (5)&nbsp;default in the payment of the principal of any bond,
    debenture, note or other evidence of our indebtedness, in each
    case for money borrowed, or in the payment of principal under
    any mortgage, indenture, agreement or instrument under which
    there may be issued or by which there may be secured or
    evidenced any indebtedness of ours for money borrowed, which
    default for payment of principal is individually or in an
    aggregate principal amount exceeding $50,000,000 (or its
    equivalent in any other currency or currencies) when such
    indebtedness becomes due and payable (whether at maturity, upon
    redemption or acceleration or otherwise), if such default shall
    continue unremedied or unwaived for more than 30&nbsp;days after
    the expiration of any grace period or extension of the time for
    payment applicable thereto;&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;certain events of bankruptcy, insolvency and
    reorganization of Calpine.</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 indenture requires that we file annually with the trustee a
certificate describing any default by us in the performance of
any conditions or covenants that has occurred under the
indenture and its status. We must give the trustee, within
30&nbsp;days after the occurrence thereof, written notice of any
event which with the giving of notice or lapse of time or both
would become an event of default described in clauses&nbsp;(3),
(4)&nbsp;or (5)&nbsp;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;
The indenture provides that if an event of default (other than
an event of default relating to certain events of bankruptcy,
insolvency and reorganization) occurs and is continuing with
respect to the notes, either the trustee or the registered
holders of at least 25% in aggregate principal amount of the
notes may declare the issue price plus accrued and unpaid
interest (and liquidated damages, if any) on the notes to be due
and payable immediately. If an event of default relating to
certain events of bankruptcy, insolvency or reorganization
occurs, the issue price plus accrued and unpaid interest (and
liquidated damages, if any) on the notes will become immediately
due and payable without any action on the part of the trustee or
any holder. At any time
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
after a declaration of acceleration, but before a judgment or
decree for payment of money has been obtained, if all events of
default with respect to the notes have been cured or waived
(other than the nonpayment of the issue price or accrued and
unpaid interest (and liquidated damages, if any) on the notes
which has become due solely by reason of the declaration of
acceleration), then the declaration of acceleration shall be
automatically annulled and rescinded.
</DIV>

<DIV align="left" style="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 of notes may pursue any remedy under the indenture only
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 holder gives the trustee written notice of a
    continuing event of default for 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;the registered holders of at least 25% in principal
    amount of the outstanding notes make a written request to the
    trustee to pursue the remedy;</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 registered holder offers to the trustee security
    and indemnity reasonably satisfactory to the trustee against any
    loss, liability or expense;</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 trustee fails to act for a period of 60&nbsp;days
    after receipt of notice, request and offer of security or
    indemnity;&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;during that 60-day period, the holders of a majority in
    principal amount of the notes do not give the trustee a
    direction inconsistent with the request.</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 provision does not, however, affect the right of a holder
of notes to sue for enforcement of payment of the principal and
interest (and liquidated damages, if any) on the holder&#146;s
notes on or after the respective due dates expressed or provided
for in its notes or the holder&#146;s right to convert its notes
in accordance with 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;
The trustee will be entitled under the indenture, subject to the
duty of the trustee during a default to act with the required
standard of care, to be indemnified before proceeding to
exercise any right or power under the indenture at the direction
of the registered holders of the notes or which requires the
trustee to expend or risk its own funds or otherwise incur any
financial liability. The indenture will also provide that the
registered holders of a majority in principal amount of the
outstanding notes may direct the time, method and place of
conducting any proceeding for any remedy available to the
trustee or exercising any trust or power conferred on the
trustee with respect to the notes. The trustee, however, may
refuse to follow any such direction that the trustee determines
is unduly prejudicial to the rights of other registered holders
of the notes, or would involve the trustee in personal
liability; <I>provided </I>that the trustee may take any other
action deemed proper by it that is not inconsistent with such
direction.
</DIV>

<DIV align="left" style="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 provide that while the trustee generally must
mail notice of a default or Event of Default to the registered
holders of the notes within 90&nbsp;days of the trustee&#146;s
actual knowledge of the occurrence, the trustee may withhold
notice of any default or Event of Default (except in payment on
the notes) if the trustee in good faith determines that the
withholding of such notice is in the interest of the holders 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>Modification 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;
We may amend or supplement the indenture if the holders of a
majority in principal amount of the notes consent to it. Without
the consent of each noteholder affected, however, no
modification 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="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;reduce the 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 rate of interest or change the time for
    payment of 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;
    (3)&nbsp;reduce the issue price or change the stated maturity 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;
    (4)&nbsp;make any change in any repurchase right to the
    detriment of such holder;</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 change in any conversion right to the
    detriment of such holder;</TD>
</TR>

</TABLE>

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

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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;
    (6)&nbsp;make payments on the notes payable in currency or
    consideration other than as originally 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;
    (7)&nbsp;impair the holder&#146;s right to receive payment of
    principal and interest on the notes or to institute suit for the
    enforcement of any payment 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;
    (8)&nbsp;make any change in the percentage of principal amount
    of notes necessary to waive compliance with some provisions of
    the indenture or to make any change in this provision for
    modification;&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;
    (9)&nbsp;waive a continuing default or Event of Default
    regarding any payment on 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;
We may amend or supplement the indenture or waive any provision
of it without the consent of any holders of notes in certain
circumstances, 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="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;to cure any ambiguity, omission, defect or
    inconsistency;</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 provide for the assumption of our obligations under
    the indenture by a successor upon any merger, consolidation or
    asset transfer permitted 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;
    (3)&nbsp;to provide for uncertificated notes in addition to or
    in place of certificated notes or to provide for bearer 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;
    (4)&nbsp;to provide any security for or guarantees 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;
    (5)&nbsp;to comply with any requirement to effect or maintain
    the qualification of the indenture under the Trust Indenture Act
    of 1939, as amended;</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;to add covenants that would benefit the holders of
    notes or to surrender any rights we have under 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;
    (7)&nbsp;to make any change that does not adversely affect the
    rights of any holder of the notes, including, without
    limitation, changing any payment record dates as necessary to
    conform to the then current market practice.</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 holders of a majority in principal amount of the outstanding
notes may waive any existing or past default or event of
default. Those holders may not, however, waive any default or
event of default in any payment of principal or interest on any
note or compliance with a provision that cannot be amended or
supplemented without the consent of each holder affected.
</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>Registration Rights</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 entered into a registration rights agreement with
Deutsche Bank Securities, as the representative of the initial
purchasers, for the benefit of the holders of the notes and the
shares of our common stock issuable upon conversion of the notes
(together, the &#147;Registrable Securities&#148;) providing
that we will, at our expense:
</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;file with the SEC, within 210&nbsp;days after the date
    the notes are originally issued, a registration statement
    covering resales of the Registrable Securities;</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;use all reasonable efforts to cause the registration
    statement to be declared effective under the Securities Act
    within 270&nbsp;days after the date the notes are originally
    issued, subject to our right to postpone having the registration
    statement declared effective for an additional 90&nbsp;days in
    limited circumstances;&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;use all reasonable efforts to keep effective the
    registration statement until two years after the date the notes
    are issued or, if earlier, until there are no outstanding
    Registrable Securities, subject to the exceptions set forth
    below.</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 be permitted to suspend the use of the prospectus that
is part of the registration statement in connection with the
sales of Registrable Securities for a period not to exceed
30&nbsp;days in any 90-day period or 90&nbsp;days in any 365-day
period for reasons relating to the acquisition or divestiture of
assets, pending corporate
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
developments, and similar events. We will provide to each holder
of Registrable Securities copies of the prospectus that is a
part of the registration statement, notify each holder when the
registration statement has become effective and take certain
other actions required to permit public resales of the
Registrable Securities.
</DIV>

<DIV align="left" style="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, upon written notice to all the holders of Registrable
Securities, be able to postpone having the registration
statement declared effective for a reasonable period not to
exceed 90&nbsp;days in any 365-day period if we possess material
non-public information, the disclosure of which would have a
material adverse effect on us and our subsidiaries, taken as a
whole. Notwithstanding any such postponement, liquidated damages
will accrue on the notes (or on the shares of our common stock
into which any notes have been converted) if any of the
following events (each a &#147;Registration Default&#148;) occur:
</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;on or prior to 210&nbsp;days following the date the
    notes were originally issued, a registration statement has not
    been filed with the SEC;</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;on or prior to 270&nbsp;days following the date the
    notes were originally issued, the registration statement is not
    declared effective;&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;following the effectiveness of the registration
    statement, such registration statement (i)&nbsp;ceases to be
    effective before the earliest of (a)&nbsp;two years from its
    effective date, (b)&nbsp;the sale of all securities registered
    under the registration statement or (c)&nbsp;the expiration of
    the applicable period under Rule&nbsp;144(k) of the Securities
    Act, or (ii)&nbsp;the registration statement ceases to be
    reusable (including if the use of the prospectus is suspended
    for a period longer than the time permitted) in connection with
    the resale of the Registrable Securities due to certain
    specified circumstances, both subject to certain exceptions
    provided in the registration rights agreement.</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 that case, liquidated damages will accrue on the Registrable
Securities from and including the day of the Registration
Default up to but excluding the day on which the Registration
Default has been cured; provided that, if any Registration
Default has occurred and not earlier cured, such Registration
Default will cease as of the earliest of (a)&nbsp;the date that
is two years from the effective date of the registration
statement, (b)&nbsp;the sale of all securities registered under
the registration statement and (c)&nbsp;the expiration of the
applicable period under Rule&nbsp;144(k) of the Securities Act,
and liquidated damages shall no longer accrue after such date.
Liquidated damages will be paid semi-annually in arrears, with
the first semi-annual payment due on the first interest payment
date following the date of such Registration Default. Liquidated
damages will accrue on the principal amount of the notes at a
rate of 0.50%&nbsp;per annum of the principal amount of the
notes from and including the date on which any such Registration
Default shall occur up to but excluding the date on which all
such Registration Defaults have been cured or have ceased. If a
holder has converted some or all of its notes into cash and
shares of our common stock, the holder will be entitled to
receive equivalent amounts based on the principal amount of the
notes converted.
</DIV>

<DIV align="left" style="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 who elects to sell any Registrable Securities pursuant
to the registration statement will be required to deliver a
notice and questionnaire and be named as a selling security
holder in the related prospectus, may be required to deliver a
prospectus to purchasers, may be subject to certain civil
liability provisions under the Securities Act in connection with
those sales and will be bound by the provisions of the
registration rights agreement that apply to a holder making such
an election, including certain indemnification provisions.
</DIV>

<DIV align="left" style="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 mail a notice and questionnaire to the holders of
Registrable Securities not less than 30 calendar days prior to
the time we intend to have the registration statement declared
effective.
</DIV>

<DIV align="left" style="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 holder of Registrable Securities will be entitled to be named
as a selling security holder in the registration statement or
have its Registrable Securities included therein, and no holder
of Registrable Securities will be entitled to use the prospectus
forming a part of the registration statement for offers and
resales of Registrable Securities at any time, unless such
holder has returned a completed and signed notice and
questionnaire to us by the deadline for response set forth in
the notice and questionnaire, which shall be not less than
28&nbsp;days from the time such notice is sent by first class
mail.
</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;
Beneficial owners of Registrable Securities who have not
returned a notice and questionnaire by the questionnaire
deadline described above may receive another notice and
questionnaire from us upon request. Following our receipt of a
completed and signed notice and questionnaire, we will include
the Registrable Securities covered thereby in the registration
statement, subject to restrictions on the timing and number of
supplements to the registration statement provided in 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;
We have agreed in the registration rights agreement to use our
best efforts to cause the shares of our common stock issuable
upon conversion of the notes to be listed on The New York Stock
Exchange or other stock exchange or trading system on which
shares of our common stock primarily trade on or prior to the
time the registration statement is declared effective.
</DIV>

<DIV align="left" style="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 of certain provisions of the registration rights
agreement is not complete and is subject to, and qualified in
its entirety by reference to, all the provisions of the
registration rights agreement, a copy of which has been filed
with the SEC.
</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>Calculations in Respect of 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;
We will be responsible for making all calculations called for
under the notes. These calculations include, but are not limited
to, determinations of the market prices of the notes and shares
of our common stock and accrued interest payable (and liquidated
damages, if any) on the notes. We will make all these
calculations in good faith and, absent manifest error, our
calculations will be final and binding on holders of notes. We
will provide a schedule of our calculations to the trustee, and
the trustee is entitled to rely upon the accuracy of our
calculations without independent verification. The trustee will
forward our calculations to any holder of notes upon the request
of that 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>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 governed by, and construed
in accordance with, the laws of the State of New York.
</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>Trustee and Paying 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;
Wilmington Trust Company will initially act as trustee, paying
agent and conversion agent for 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;
If an event of default occurs and is continuing, the trustee
will be required to use the degree of care and skill of a
prudent man under the circumstances in the conduct of his own
affairs. The trustee will become obligated to exercise any of
its powers under the indenture at the request of any of the
holders of any notes only after those holders have offered the
trustee indemnity reasonably satisfactory to it.
</DIV>

<DIV align="left" style="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 trustee becomes one of our creditors, it will be subject
to limitations in the indenture on its rights to obtain payment
of claims or to realize on some property received for any such
claim, as security or otherwise. The trustee is permitted to
engage in other transactions with us. If, however, it acquires
any conflicting interest, it must eliminate that conflict or
resign.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Form, Exchange, Registration and 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;
We will issue the notes in registered form, without interest
coupons. We will not charge a service charge for any
registration of transfer or exchange of the notes. We may,
however, require the payment of any tax or other governmental
charge payable for that registration.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Notes will be exchangeable for other notes, for the same total
principal amount and for the same terms but in different
authorized denominations in accordance with the indenture.
Holders may present notes for registration of transfer at the
office of the security registrar or any transfer agent we
designate. The security registrar or transfer agent will effect
the transfer or exchange when it is satisfied with the documents
of title and identity of the person making the request.
</DIV>

<DIV align="left" style="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 the trustee as security registrar for the
notes. We may at any time rescind that designation or approve a
change in the location through which any registrar acts. We are
required to maintain
</DIV>

<P align="center" style="font-size: 10pt;">43

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<DIV align="left" style="font-size: 10pt;">
an office or agency for transfers and exchanges in each place of
payment. We may at any time designate additional registrars for
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>Payment and Paying Agents</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 on the notes will be made in U.S.&nbsp;dollars at the
office of the trustee. At our option, however, we may make
payments by check mailed to the holder&#146;s registered address
or, with respect to global notes, by wire transfer. We will make
interest payments to the person in whose name the notes is
registered at the close of business on the regular record date
for the interest payment.
</DIV>

<DIV align="left" style="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 be designated as our paying agent for payments
on notes. We may at any time designate additional paying agents
or rescind the designation of any paying agent or approve a
change in the office through which any paying agent acts.
</DIV>

<DIV align="left" style="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 requirements of any applicable abandoned property
laws, the trustee and paying agent shall pay to us upon written
request any money held by them for payments on the notes that
remain unclaimed for two years after the date upon which that
payment has become due. After payment to us, holders entitled to
the money must look to us for payment. In that case, all
liability of the trustee or paying agent with respect to that
money will cease.
</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>Notices</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 described in this offering circular, notice
to registered holders of the notes will be given by mail to the
holders at the addresses as they appear in the security
register. Notices will be deemed to have been given on the date
of such mailing.
</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>Replacement of 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;
We will replace any notes that become mutilated, destroyed,
stolen or lost at the expense of the holder upon delivery to the
trustee of the mutilated notes or evidence of the loss, theft or
destruction satisfactory to us and the trustee. In the case of
lost, stolen or destroyed notes, indemnity satisfactory to the
trustee and us may be required at the expense of the holder of
the notes before a replacement note will be issued.
</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>Payment of Stamp and Other Taxes</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 stamp and other duties, if any, which may be
imposed by the United States or any political subdivision
thereof or taxing authority thereof or therein with respect to
the issuance of the notes. We will not be required to make any
payment with respect to any other tax, assessment or
governmental charge imposed by any government or any political
subdivision thereof or taxing authority thereof or therein.
</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;
Anyone who receives this offering circular may obtain a copy of
the indenture and the registration rights agreement without
charge by writing to Calpine Corporation, 50 West
San&nbsp;Fernando Street, San&nbsp;Jose, California 95113,
Attention: Investor Relations.
</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 notes are represented by several global securities. Each
global security is deposited with, or on behalf of, DTC and
registered in the name of a nominee of DTC. Except under
circumstances described below, the notes will not be issued in
definitive 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;
Upon the issuance of a global security, DTC will credit on its
book-entry registration and transfer system the accounts of
persons designated by the underwriter with the respective
principal amounts of the notes represented by the global
security. Ownership of beneficial interests in a global security
will be limited to persons that have accounts with DTC or its
nominee, known as participants, or persons that may hold
interests through participants. Ownership of beneficial
interests in a global security will be shown on, and the
transfer of
</DIV>

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<DIV align="left" style="font-size: 10pt;">
that ownership will be effected only through, records maintained
by DTC or its nominee with respect to interests of persons other
than 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;
So long as DTC or its nominee is the registered owner of a
global security, DTC or its nominee, as the case may be, will be
considered the sole owner or holder of the notes represented by
that global security for all purposes under the indenture.
Except as provided below, owners of beneficial interests in a
global security will not be entitled to have notes represented
by that global security registered in their names, will not
receive or be entitled to receive physical delivery of notes in
definitive form and will not be considered the owners or holders
thereof under the indenture. Principal and interest payments, if
any, on notes registered in the name of DTC or its nominee will
be made to DTC or its nominee, as the case may be, as the
registered owner of the relevant global security. Neither we,
the trustee, any paying agent nor the registrar for the notes
will have any responsibility or liability for any aspect of the
records relating to, or payments made on account of beneficial
interests in, a global security or for maintaining, supervising
or reviewing any records relating to beneficial interests.
</DIV>

<DIV align="left" style="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 expect that DTC or its nominee, upon receipt of any payment
of principal or interest, if any, will credit immediately
participants&#146; accounts with payments in amounts
proportionate to their respective beneficial interests in the
principal amount of the relevant global security as shown on the
records of DTC or its nominee. We also expect that payments by
participants to owners of beneficial interests in a global
security held through these participants will be governed by
standing instructions and customary practices, as is the case
with securities held for the accounts of customers in bearer
form or registered in &#147;street name,&#148; and will be the
responsibility of the participants.
</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>DTC 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;
DTC has advised us that it is a limited-purpose trust company
created to hold securities for its participants and to
facilitate the clearance and settlement of transactions in those
securities between participants through electronic book-entry
changes in accounts of 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, &#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 indirect
participants. The ownership interest and transfer of ownership
interest of each actual purchaser of each security held by or on
behalf of DTC are recorded on the records of the participants
and indirect 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;
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 may be limited to that extent.
Because DTC can act only on behalf of the participants, which in
turn act on behalf of the indirect participants and certain
banks, the ability of a person having beneficial interests in a
global note to pledge such interests to persons or entities that
do not participate in DTC&#146;s system, or otherwise take
actions in respect of such interests, may be affected by the
lack of a physical certificate evidencing such interests. For
certain other restrictions on the transferability of the notes,
see &#147;&#151;&nbsp;Depository Procedures&nbsp;&#151; Exchange
of Book-Entry Notes for Certificated Notes&#148; and
&#147;&#151;&nbsp;Certificated 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;
EXCEPT AS DESCRIBED BELOW, OWNERS OF INTERESTS IN THE GLOBAL
NOTES&nbsp;WILL NOT HAVE NOTES&nbsp;REGISTERED IN THEIR NAMES,
WILL NOT RECEIVE PHYSICAL DELIVERY OF NOTES IN CERTIFICATED FORM
AND WILL NOT BE CONSIDERED THE REGISTERED OWNERS, OR HOLDERS
THEREOF UNDER THE INDENTURE FOR ANY PURPOSE.
</DIV>

<DIV align="left" style="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 and premium, if any, and
interest (including special interest), if any, on a global note
registered in the name of DTC or its nominee will be payable by
the trustee to DTC or its nominee in its capacity as the
registered holder under the indenture. Under the terms of the
indenture, we and the trustee will treat the persons in whose
names the notes, including the global notes, are registered as
the owners thereof for the purpose of receiving such payments
and for any and all other purposes whatsoever.
</DIV>

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<DIV align="left" style="font-size: 10pt;">
Consequently, none of us, the trustee, or any agent of us 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
    interests 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 us that its current practices, upon receipt of
any payment in respect of securities such as the notes
(including principal and interest (including special interest),
if any), is to credit the accounts of the relevant participants
with the payment on the payment date, in amounts proportionate
to their respective holdings in principal amount of beneficial
interests in the relevant security such as the global notes as
shown on DTC&#146;s records. Payments by the participants and
indirect participants to the beneficial owners of notes will be
governed by standing instructions and customary practices and
will not be the responsibility of DTC, the trustee or us.
Neither we nor the trustee will be liable for any delay by DTC
or its participants in identifying the beneficial owners of the
notes, and we and the trustee may conclusively rely on and will
be protected in relying on instructions from DTC or its nominee
as the registered owner of the notes 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;
Interests in the global notes will trade in DTC&#146;s Same-Day
Funds Settlement System and secondary market trading activity in
such interests will, therefore, settle in immediately available
funds, subject in all cases to the rules and procedures of DTC
and 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;
Transfers between participants will be effective in accordance
with DTC&#146;s procedures, and will be settled in same-day
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;
DTC has advised us 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 interests in the global
notes are credited 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 direction.
However, if there is an event of default under the notes, DTC
reserves the right to exchange global notes for 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;
The information in this section concerning DTC and its
book-entry systems has been obtained from sources that we
believe to be reliable, but we take no responsibility for the
accuracy of that information.
</DIV>

<DIV align="left" style="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 has agreed to the foregoing procedures, it is under
no obligation to perform or to continue to perform such
procedures, and such procedures may be discontinued at any time.
Neither we nor the trustee will have any responsibility for the
performance by DTC or its 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 Book-Entry 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 definitive notes in registered
certificated form if (1)&nbsp;DTC (A)&nbsp;notifies us that it
is unwilling or unable to continue as depository for the global
note and we thereupon fail to appoint a successor depository or
(B)&nbsp;has ceased to be a clearing agency registered under the
Securities Exchange Act or (2)&nbsp;we, at our option, notify
the trustee in writing that we elect to cause issuance of the
notes in certificated form. In addition, beneficial interests in
a global note may be exchanged for certificated notes upon
request but only upon at least 20&nbsp;days prior written notice
given to the trustee by or on behalf of DTC in accordance with
customary procedures. In all cases, certificated notes delivered
in exchange for any global note or beneficial interest therein
will be registered in names, and issued in any approved
denominations, requested by or on behalf of DTC 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>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;
Subject to certain conditions, any person having a beneficial
interest in the global note may, upon request to the trustee,
exchange such beneficial interest for notes in the form of
certificated notes. Upon any such
</DIV>

<P align="center" style="font-size: 10pt;">46

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<DIV align="left" style="font-size: 10pt;">
issuance, the trustee is required to register such certificated
notes in the name of, and cause the same to be delivered to,
such person or persons (or the nominee of any thereof). In
addition, if (1)&nbsp;Calpine notifies the trustee in writing
that DTC is no longer willing or able to act as a depository and
we are unable to locate a qualified successor within
90&nbsp;days or (2)&nbsp;we, at our option, notify the trustee
in writing that we elect to cause the issuance of notes in the
form of certificated notes under the indenture, then, upon
surrender by the global note holder of its global note, notes in
such form will be issued to each person that the global note
holder and DTC identify as being the beneficial owner of the
related notes. Neither we nor the trustee will be liable for any
delay by the global note holder or DTC in identifying the
beneficial owners of notes and we and the trustee may
conclusively rely on, and will be protected in relying on,
instructions from the global note holder or DTC for all purposes.
</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 indenture requires that payments in respect of the notes
represented by the global note (including principal, premium, if
any, and interest (including special interest), if any) be made
by wire transfer of immediately available funds to the accounts
specified by the global note holder. With respect to
certificated notes, we will make all payments of principal,
premium, if any, interest (including special interest), if any,
by wire transfer of immediately available funds to the accounts
specified by the holders thereof or, if no such account is
specified, by mailing a check to each such holder&#146;s
registered address. We expect that secondary trading in the
certificated notes will also be settled in immediately available
funds.
</DIV>

<P align="center" style="font-size: 10pt;">47

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<DIV align="left" style="font-size: 10pt;">
<A name='111'></A>
</DIV>

<!-- link1 "PRICE RANGE OF COMMON STOCK" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PRICE RANGE OF COMMON STOCK</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 common stock is traded on The New York Stock Exchange under
the symbol &#147;CPN.&#148; The following table sets forth, for
the periods indicated, the range of high and low sale prices for
our common stock. On April&nbsp;18, 2005, the closing price of
our common stock was $2.43 per share.
</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="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="center" nowrap><B>Common</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="center" nowrap><B>Stock&nbsp;Price&nbsp;($)</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

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

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

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year ended December&nbsp;31, 2003</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    First Quarter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.51</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Second Quarter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.33</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Third Quarter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.76</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fourth Quarter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.28</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year ending December&nbsp;31, 2004</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    First Quarter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.35</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Second Quarter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.04</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Third Quarter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.87</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fourth Quarter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.24</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year ending December&nbsp;31, 2005</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    First Quarter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.52</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Second Quarter (through April&nbsp;18, 2005)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.31</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of April&nbsp;18, 2005, there were 2,377&nbsp;holders of
record of our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='112'></A>
</DIV>

<!-- link1 "DESCRIPTION OF CAPITAL STOCK" -->

<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 CAPITAL STOCK</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;
Calpine&#146;s authorized capital stock consists of
2,000,000,000&nbsp;shares of common stock, $.001&nbsp;par value,
and 10,000,000&nbsp;shares of preferred stock, $.001&nbsp;par
value. The following summary is qualified in its entirety by the
provisions of Calpine&#146;s amended and restated certificate of
incorporation and by-laws, which have been incorporated by
reference as exhibits to Calpine&#146;s Annual Report on
Form&nbsp;10-K for the year ended December&nbsp;31, 2004.
</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>Common Stock</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;
As of March&nbsp;31, 2005, there were 538,017,458&nbsp;shares of
our common stock outstanding. In addition, as of March&nbsp;31,
2005, there were 25,836,389&nbsp;shares of our common stock
underlying vested stock options eligible for sale and there were
an additional 43,314,370&nbsp;shares of our common stock
issuable upon conversion of our other outstanding convertible
securities (including the remaining outstanding HIGH TIDES and
including the notes and our other series of contingent
convertible notes, none of which is currently convertible but
each of which, if it became convertible, could result in a
substantial number of additional shares of our common stock
being issuable upon conversion). The holders of common stock are
entitled to one vote per share on all matters to be voted upon
by the stockholders. Subject to preferences that may be
applicable to any outstanding preferred stock, the holders of
common stock are entitled to receive ratably such dividends, if
any, as may be declared from time to time by our board of
directors out of legally available funds. See
&#147;&#151;&nbsp;Dividend Policy,&#148; below. In the event of
our liquidation, dissolution or winding up, the holders of our
common stock are entitled to share ratably in all assets
remaining after payment of liabilities, subject to prior
liquidation rights of preferred stock, if any, then outstanding.
The common stock has no preemptive or conversion rights or other
subscription rights. There are no redemption or sinking fund
provisions applicable to the common stock. Pursuant to a rights
agreement entered into in June 1997, as amended, Calpine&#146;s
shares of common stock outstanding prior to the occurrence of
events specified in the rights agreement have certain preferred
share purchase rights, which are set forth in more detail in the
rights agreement incorporated by reference as an exhibit to our
Annual Report on Form 10-K for the year ended December&nbsp;31,
2004, which is
</DIV>

<P align="center" style="font-size: 10pt;">48

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<DIV align="left" style="font-size: 10pt;">
incorporated by reference herein. See
&#147;&#151;&nbsp;Anti-Takeover Effects of Provisions of the
Certificate of Incorporation, Bylaws and Delaware
Law&nbsp;&#151; Rights Plan,&#148; below.
</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>Dividend Policy</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 not declared any cash dividends on our common stock
during the past two fiscal years. We do not anticipate paying
any cash dividends on our common stock in the foreseeable future
because we intend to retain our earnings to finance the
expansion of our business and for general corporate purposes. In
addition, our ability to pay cash dividends is restricted under
certain of our indentures and our other debt agreements. Future
cash dividends, if any, will be at the discretion of our board
of directors and will depend upon, among other things, our
future operations and earnings, capital requirements, general
financial condition, contractual restrictions and such other
factors as the board of directors may deem relevant.
</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>Preferred Stock</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;
As of March&nbsp;31, 2005, there were no shares of
Calpine&#146;s preferred stock outstanding. Our board of
directors has the authority, without further vote or action by
the stockholders, to issue from time to time up to
10,000,000&nbsp;shares of preferred stock in one or more series,
and to fix the rights, preferences, privileges, qualifications,
limitations and restrictions granted to or imposed upon any
wholly unissued shares of undesignated preferred stock,
including without limitation dividend rights, if any, voting
rights, if any, and liquidation and conversion rights, if any.
The board of directors has the authority to fix the number of
shares constituting any series and the designations of such
series without any further vote or action by the stockholders.
The board of directors, without stockholder approval, can issue
preferred stock with voting and conversion rights which could
adversely affect the voting power of the holders of common
stock. The issuance of preferred stock may have the effect of
delaying, deferring or preventing a change in control of
Calpine, or could delay or prevent a transaction that might
otherwise give our stockholders an opportunity to realize a
premium over the then prevailing market price of the common
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;
Our board of directors has authorized the issuance of up to
1,000,000&nbsp;shares of Series&nbsp;A Participating Preferred
Stock, par value $.001&nbsp;per share, pursuant to a rights plan
adopted by our board of directors on June&nbsp;5, 1997, which
was amended on September&nbsp;19, 2001, September&nbsp;28, 2004
and March&nbsp;18, 2005. As of March&nbsp;31, 2005, no shares of
our participating preferred stock were outstanding. A
description of the rights plan and the participating preferred
stock is set forth under &#147;&#151;&nbsp;Anti-Takeover Effects
of Provisions of Certificate of Incorporation, Bylaws and
Delaware Law&nbsp;&#151; Rights Plan,&#148; below.
</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>Anti-Takeover Effects of Provisions of the Certificate of
Incorporation, Bylaws and Delaware Law</B>
</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="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Certificate of Incorporation and Bylaws</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our amended and restated certificate of incorporation and bylaws
provide that our board of directors is classified into three
classes of directors serving staggered, three-year terms. The
certificate of incorporation also provides that directors may be
removed only by the affirmative vote of the holders of
two-thirds of the shares of our capital stock entitled to vote.
Any vacancy on the board of directors may be filled only by vote
of the majority of directors then in office. Further, the
certificate of incorporation provides that any business
combination (as therein defined) requires the affirmative vote
of the holders of two-thirds of the shares of our capital stock
entitled to vote, voting together as a single class. The
certificate of incorporation also provides that all stockholder
actions must be effected at a duly called meeting and not by a
consent in writing. Our certificate of incorporation provides
that a special meeting of stockholders may be called only by the
chairman of our board of directors, or by the chairman or
secretary upon the written request of a majority of the total
number of directors we would have if there were no vacancies on
our board of directors. The provisions of the certificate of
incorporation and bylaws could discourage potential acquisition
proposals and could delay or prevent a change in control of
Calpine. These provisions are intended to enhance the likelihood
of continuity and stability in the composition of the board of
directors and in the policies formulated by the board of
directors and to discourage certain types of transactions that
may involve an actual or threatened change of control of
Calpine. These provisions are designed to reduce our
vulnerability to an unsolicited acquisition
</DIV>

<P align="center" style="font-size: 10pt;">49

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<DIV align="left" style="font-size: 10pt;">
proposal. The provisions also are intended to discourage certain
tactics that may be used in proxy fights. However, such
provisions could have the effect of discouraging others from
making tender offers for our shares and, as a consequence, they
also may inhibit fluctuations in the market price of our shares
that could result from actual or rumored takeover attempts. Such
provisions also may have the effect of preventing changes in our
management.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Rights Plan</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On June&nbsp;5, 1997, we adopted a stockholders&#146; rights
plan to strengthen our ability to protect our stockholders. The
rights plan was amended on September&nbsp;19, 2001,
September&nbsp;28, 2004 and March&nbsp;18, 2005. The rights plan
was designed to protect against abusive or coercive takeover
tactics that are not in the best interests of our Company or our
stockholders. To implement the rights plan, we declared a
dividend of one preferred share purchase right for each
outstanding share of our common stock held on record as of
June&nbsp;18, 1997, and directed the issuance of one preferred
share purchase right with respect to each share of our common
stock that shall become outstanding thereafter until the rights
become exercisable or they expire as described below. Each right
initially represents a contingent right to purchase, under
certain circumstances, one one-thousandth of a share, called a
&#147;unit,&#148; of our Series&nbsp;A Participating Preferred
Stock, par value $.001&nbsp;per share, at a price of
$140.00&nbsp;per unit, subject to adjustment. The rights will
become exercisable and trade independently from our common stock
upon the public announcement of the acquisition by a person or
group of 15% or more of our common stock, or ten days after
commencement of a tender or exchange offer that would result in
the acquisition of 15% or more of our common stock. Each unit
purchased upon exercise of the rights will be entitled to a
dividend equal to any dividend declared per share of common
stock and will have one vote, voting together with the common
stock. In the event of our liquidation, each unit of the
participating preferred stock will be entitled to any payment
made per share of common 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;
If we are acquired in a merger or other business combination
transaction after a person or group has acquired 15% or more of
our common stock, each right will entitle its holder to purchase
at the right&#146;s exercise price a number of the acquiring
company&#146;s shares of common stock having a market value of
twice the right&#146;s exercise price. In addition, if a person
or group acquires 15% or more of our common stock, each right
will entitle its holder (other than the acquiring person or
group) to purchase, at the right&#146;s exercise price, a number
of fractional shares of our participating preferred stock or
shares of our common stock having a market value of twice the
right&#146;s exercise price.
</DIV>

<DIV align="left" style="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 rights remain exercisable for up to 90&nbsp;days following a
triggering event (such as a person acquiring 15% or more of our
common stock). The rights expire on May&nbsp;1, 2005, unless
earlier exercised or redeemed. We can redeem the rights at a
price of $.01&nbsp;per right, subject to adjustment as set forth
in the rights plan, including for stock splits since
June&nbsp;5, 1997, at any time before the rights become
exercisable, and thereafter only in limited circumstances.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Delaware Anti-Takeover Statute</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are subject to Section&nbsp;203 of the Delaware General
Corporation Law, which, subject to certain exceptions, prohibits
a Delaware corporation from engaging in any business combination
with any interested stockholder for a period of three years
following the date that such stockholder became an interested
stockholder, unless: (1)&nbsp;prior to such time, the board of
directors of the corporation approved either the business
combination or the transaction that resulted in the stockholder
becoming an interested stockholder; (2)&nbsp;upon consummation
of the transaction that resulted in the stockholder becoming an
interested stockholder, the interested stockholder owned at
least 85% of the voting stock of the corporation outstanding at
the time of the transaction commenced, excluding for purposes of
determining the voting stock outstanding (but not the
outstanding voting stock owned by the interested stockholder)
those shares owned (x)&nbsp;by persons who are directors and
also officers and (y)&nbsp;by employee stock plans in which
employee participants do not have the right to determine
confidentially whether shares held subject to the plan will be
tendered in a tender or exchange offer; or (3)&nbsp;on or
subsequent to such time, the business combination is approved by
the board of directors and authorized at an annual or special
meeting of stockholders, and not by written consent, by the
</DIV>

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<DIV align="left" style="font-size: 10pt;">
affirmative vote of at least
66<FONT style="font-size: 70%"><SUP>2</SUP></FONT>/<FONT style="font-size: 60%">3</FONT>%
of the outstanding voting stock that is not owned by the
interested stockholder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section&nbsp;203 of the Delaware General Corporation Law defines
the term business combination to include: (1)&nbsp;any merger or
consolidation involving the corporation or any of its direct or
indirect majority-owned subsidiaries and the interested
stockholder; (2)&nbsp;any sale, transfer, pledge or other
disposition of 10% or more of the assets of the corporation or
any of its direct or indirect majority-owned subsidiaries
involving the interested stockholder; (3) subject to certain
exceptions, any transaction that results in the issuance or
transfer by the corporation of any stock of the corporation or
any of its direct or indirect majority-owned subsidiaries of any
stock of the corporation or that subsidiary to the interested
stockholder; (4)&nbsp;any transaction involving the corporation
or any of its direct or indirect majority-owned subsidiaries
that has the effect of increasing the proportionate share of the
stock of any class or series of the corporation or that
subsidiary beneficially owned by the interested stockholder; or
(5)&nbsp;the receipt by the interested stockholder of the
benefit of any loans, advances, guarantees, pledges or other
financial benefit provided by or through the corporation or any
of its direct or indirect majority-owned subsidiaries. In
general, Section&nbsp;203 defines an interested stockholder as
any entity or person beneficially owning 15% or more of the
outstanding voting stock of the corporation and any entity or
person affiliated with or controlling or controlled by such
entity or person.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='113'></A>
</DIV>

<!-- link1 "MATERIAL 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>MATERIAL 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 is a summary of the material United States federal
income tax consequences of the ownership and disposition of the
notes and shares of common stock into which the notes are
convertible (the &#147;securities&#148;). Unless otherwise
specified, this summary deals only with U.S.&nbsp;holders who
hold the notes and any shares of common stock into which the
notes are converted as capital assets. The discussion regarding
United States federal income tax laws assumes that transfers of
the notes and payments thereon will be made in accordance with
the applicable 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 used herein, &#147;U.S.&nbsp;holders&#148; are any beneficial
owners of the securities, that are, for United States federal
income tax purposes, (1) citizens or residents of the United
States, (2)&nbsp;corporations created or organized in, or under
the laws of, the United States, any state thereof or the
District of Columbia, (3)&nbsp;estates, the income of which is
subject to United States federal income taxation regardless of
its source, or (4)&nbsp;trusts if (A)&nbsp;a court within the
United States is able to exercise primary supervision over the
administration of the trust and (B)&nbsp;one or more United
States persons have the authority to control all substantial
decisions of the trust. In addition, certain trusts in existence
on August&nbsp;20, 1996 and treated as a U.S.&nbsp;holder prior
to such date may also be treated as U.S.&nbsp;holders. As used
herein, &#147;non-U.S.&nbsp;holders&#148; are beneficial owners
of the securities, other than partnerships, that are not
U.S.&nbsp;holders as defined above. If a partnership (including
for this purpose any entity treated as a partnership for United
States federal tax purposes) is a beneficial owner of the
securities, the treatment of a partner in the partnership will
generally depend upon the status of the partner and upon the
activities of the partnership. Partnerships and partners in such
partnerships should consult their tax advisors about the United
States federal income tax consequences of owning and disposing
of the securities.
</DIV>

<DIV align="left" style="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 does not describe all of the tax consequences that
may be relevant to a holder in light of its particular
circumstances. For example, it does not deal with special
classes of holders such as banks, thrifts, real estate
investment trusts, regulated investment companies, insurance
companies, dealers and traders in securities or currencies, or
tax-exempt investors. It also does not discuss securities held
as part of a hedge, straddle, &#147;synthetic security&#148; or
other integrated transaction. This summary also does not address
the tax consequences to (i)&nbsp;U.S.&nbsp;holders that have a
functional currency other than the U.S.&nbsp;dollar,
(ii)&nbsp;certain U.S.&nbsp;expatriates or
(iii)&nbsp;shareholders, partners or beneficiaries of a holder
of the securities. Further, it does not include any description
of any alternative minimum tax consequences or the tax laws of
any state or local government or of any foreign government that
may be applicable to the securities. This summary is based on
the Internal Revenue Code of 1986, as amended (the
&#147;Code&#148;), the Treasury regulations promulgated
thereunder and administrative and judicial interpretations
thereof, all as of the date hereof, and all of which are subject
to change or differing interpretations, possibly on a
retroactive basis.
</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>You should consult with your own tax advisor regarding the
federal, state, local and foreign income, franchise, personal
property and any other tax consequences of the ownership and
disposition of the securities.</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>Taxation of U.S.&nbsp;Holders</B>
</DIV>

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

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

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Interest Income</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Payments of interest on the notes generally will be taxable to a
U.S. holder as ordinary interest income at the time such
payments are accrued or received (in accordance with the
holder&#146;s regular method of tax accounting).
</DIV>

<DIV align="left" style="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 required to pay liquidated damages on the notes
if we fail to comply with certain obligations under the
registration rights agreement (see &#147;Description of the
Notes &nbsp;&#151; Registration Rights&#148;), the notes could
be subject to the rules applicable to contingent payment debt
instruments. Under these rules, however, a payment is not a
contingent payment merely because of a contingency that, as of
the issue date, is either &#147;remote&#148; or
&#147;incidental.&#148; We believe (and the remainder of this
discussion assumes) that the payment of such amounts was a
remote or incidental contingency as of the issue date and that
the payments of liquidated damages that we were required to make
because of the delay in complying with certain obligations under
the registration rights agreement are &#147;insignificant&#148;
under the applicable rules. As a result, we intend to take the
position that our payment of such liquidated damages did not
cause the notes to be treated as reissued for United States
federal income tax purposes and that the notes are not subject
to the contingent payment debt rules. Our position that the
notes were not deemed to be reissued and are not subject to the
contingent payment debt rules is binding on each holder unless
such holder properly discloses to the Internal Revenue Service
that it is taking a different position. Our position is not
binding, however, on the Internal Revenue Service and,
accordingly, no assurance can be given that this position will
not be challenged by the Internal Revenue Service or, if
challenged, that such a challenge will not be successful. If
such challenge is successful, the notes could be deemed to be
reissued or subject to the rules applicable to contingent
payment debt instruments which would affect the amount, timing
and character of income, gain or loss in respect of an
investment in the notes. Holders should consult their tax
advisors regarding the tax consequences relating to notes
providing for payments of liquidated damages.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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    <TD></TD>
    <TD>
    <B><I>Notes Purchased with Market Discount</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A holder will be considered to have purchased a note with
&#147;market discount&#148; if the holder&#146;s tax basis in
the note immediately after purchase is less than the note&#146;s
stated redemption price at maturity. A note is not treated as
having market discount if the amount of market discount is de
minimis. For this purpose, the amount of market discount is de
minimis if it is less than the product of 0.25&nbsp;percent of
the stated redemption price at maturity on the purchase date
multiplied by the number of complete years to maturity remaining
as of such date. If the note has de minimis market discount, a
holder must generally include such de minimis amount in income
(as capital gain) as stated principal payments are made.
</DIV>

<DIV align="left" style="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 note is treated as having market discount, any gain
recognized upon the receipt of any principal payment on, or upon
the disposition of, the note will generally be treated as
ordinary income to the extent that such gain does not exceed the
accrued market discount on the note that has not been previously
included in income. Alternatively, a holder of a note may elect
to include market discount in income currently over the life of
the note. Such an election applies to all notes with market
discount acquired by the electing holder on or after the first
day of the first taxable year to which the election applies and
may not be revoked without the consent of the Internal Revenue
Service. Market discount accrues on a straight-line basis unless
the holder elects to accrue such discount on a constant yield to
maturity basis. This latter election is applicable only to the
note with respect to which it is made and is irrevocable. A
holder of a note that does not elect to include market discount
in income currently generally will be required to defer
deductions for interest on borrowings allocable to such note in
an amount not exceeding the accrued market discount on such note
until the maturity or disposition of such note.
</DIV>

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<DIV style="margin-top: 12pt; 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="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Notes Purchased at a Premium</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A holder will be considered to have purchased a note at a
premium if the holder&#146;s tax basis in the note immediately
after the purchase (which does not include any amount paid in
respect of accrued interest on the note) is greater than the
amount payable at maturity. For this purpose only, a
holder&#146;s basis in a note is reduced by an amount equal to
the value of the option to convert the note into common stock;
the value of this conversion option may be determined under any
reasonable method. A holder may elect to treat such premium as
&#147;amortizable bond premium,&#148; in which case the amount
of interest required to be included in the holder&#146;s income
each year with respect to the note will be reduced by the amount
of the amortizable bond premium allocable (generally under a
constant yield method based on the holder&#146;s yield to
maturity) to such year with a corresponding decrease in the
holder&#146;s tax basis in the note. Any election to amortize
bond premium is applicable to all notes (other than a tax-exempt
note) held by the holder at the beginning of the first taxable
year to which the election applies or thereafter acquired by the
holder, and may not be revoked without the consent of the
Internal Revenue Service.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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    <TD></TD>
    <TD>
    <B><I>Conversion of Notes</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a U.S.&nbsp;holder converts a note and we deliver a
combination of shares of common stock and cash, the tax
treatment to the holder is uncertain. A holder may be required
to recognize any gain (but not loss) realized, but only to the
extent such gain does not exceed the amount of cash received
(other than cash received in lieu of a fractional share or
attributable to accrued but unpaid interest). In such case, a
holder&#146;s basis in the common stock received in the
conversion (including any basis allocable to a fractional share
but excluding shares of common stock attributable to accrued but
unpaid interest) would be equal to such holder&#146;s adjusted
tax basis in the note, reduced by any cash received in the
conversion (other than cash received in lieu of a fractional
share or attributable to accrued but unpaid interest) and
increased by the amount of any gain recognized on the conversion
(other than gain with respect to a fractional share).
Alternatively, the cash payment may be treated as proceeds from
a sale of a portion of the note, as described below under
&#147;&#151;&nbsp;Sale, Exchange or Redemption of Notes.&#148;
In such case, a holder&#146;s basis in the note would be
allocated pro rata between the common stock received and the
portion of the note that is treated as sold for cash (including
any fractional share treated as received but excluding any
amounts attributable to accrued and unpaid interest). If cash is
received in lieu of a fractional share, the holder will be
treated as having received the fractional share and as having
immediately sold it for an amount equal to such cash.
Accordingly, the receipt of cash in lieu of a fractional share
will generally result in capital gain or loss, if any, measured
by the difference between the cash received for the fractional
share and the U.S.&nbsp;holder&#146;s adjusted tax basis in the
fractional share. The holding period for any common stock
received in a conversion (including any fractional share treated
as received but excluding any common stock received that is
attributable to accrued but unpaid interest) will include the
holding period for the note. <B>Holders should consult their tax
advisors regarding the proper treatment to them of the receipt
of a combination of cash and common stock upon a conversion of
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 U.S.&nbsp;holder converts a note and we deliver solely cash
in satisfaction of our obligation, such cash payment will
generally be treated as received from a sale of the note by the
U.S.&nbsp;holder as described below under
&#147;&#151;&nbsp;Sale, Exchange or Redemption of 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;
The amount of cash and the fair market value of any common stock
received by the holder that is attributable to accrued but
unpaid interest not previously included in the income will be
taxable to the holder as ordinary income. A holder&#146;s tax
basis in any such shares of common stock will equal such accrued
interest and the holding period will begin on the day following
the conversion.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Adjustment of Conversion Rate</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If at any time we make a distribution of property to
shareholders that would be taxable as a dividend for United
States federal income tax purposes (for example, distributions
of evidences of indebtedness or assets, but generally not stock
dividends or rights to subscribe for common stock) and, pursuant
to the anti-dilution provisions of the indenture, the conversion
rate of the notes is increased, such increase may be deemed to
be the payment of a taxable dividend to a U.S.&nbsp;holder of
the notes to the extent of our current and accumulated
</DIV>

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<DIV align="left" style="font-size: 10pt;">
earnings and profits. If the conversion rate is increased at our
discretion or in certain other circumstances, such increase also
may be deemed to be the payment of a taxable dividend to the
U.S.&nbsp;holder.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Repurchase at the Option of Holder</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a U.S.&nbsp;holder requires us to repurchase a note and we
deliver solely shares of common stock, as described under
&#147;Description of the Notes&nbsp;&#151; Repurchase Right at
the Option of Holders&#148; and &#147;Description of the
Notes&nbsp;&#151; Change of Control,&#148; such holder will
generally not recognize gain or loss (except with respect to
cash in lieu of a fractional share and shares attributable to
accrued but unpaid interest not previously included in the
income of the holder). A U.S.&nbsp;holder&#146;s tax basis in
the common stock received (other than common stock attributable
to accrued but unpaid interest) will be the same as the
U.S.&nbsp;holder&#146;s adjusted tax basis in the note at the
time of repurchase (exclusive of any tax basis allocable to a
fractional share). If cash is received in lieu of a fractional
share, the holder will be treated as having received the
fractional share and as having immediately sold it for an amount
equal to such cash. Accordingly, the receipt of cash in lieu of
a fractional share will generally result in capital gain or
loss, if any, measured by the difference between the cash
received for the fractional share and the
U.S.&nbsp;holder&#146;s adjusted tax basis in the fractional
share.
</DIV>

<DIV align="left" style="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 U.S.&nbsp;holder requires us to repurchase a note and we
deliver a combination of shares of common stock and cash, such
amounts will generally be treated in the same manner as the
receipt of shares of common stock and cash upon a conversion of
the note as described in &#147;&#151;&nbsp;Conversion of
Notes&#148; 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;
If a U.S.&nbsp;holder requires us to repurchase a note and we
deliver solely cash in satisfaction of our obligation, such cash
payment will generally be treated as a sale of the note by the
U.S.&nbsp;holder as described below under
&#147;&#151;&nbsp;Sale, Exchange or Redemption of 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;
The holding period for any common stock received pursuant to a
repurchase of a note (including any fractional share treated as
received but excluding common stock attributable to accrued but
unpaid interest) will include the holding period for the note.
</DIV>

<DIV align="left" style="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 cash and the fair market value of the common stock
received by the holder that is attributable to accrued but
unpaid interest not previously included in the holder&#146;s
income will be taxable to the holder as ordinary income. A
holder&#146;s tax basis in such shares of common stock will
equal such accrued interest and the holding period will begin on
the day following the conversion or repurchase.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Sale, Exchange or Redemption of Notes</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except as set forth under &#147;&#151;&nbsp;Conversion of
Notes&#148; and &#147;&#151;&nbsp;Repurchase at the Option of
Holder,&#148; above, a U.S.&nbsp;holder will generally recognize
capital gain or loss equal to the difference between the amount
realized on the sale, exchange, redemption or other disposition
of a note (except to the extent the amount realized is
attributable to accrued unpaid interest not previously included
in income, which will be taxable as ordinary interest income)
and the holder&#146;s adjusted tax basis in such note. A
holder&#146;s adjusted tax basis in the note generally will be
the initial purchase price for such note increased by any market
discount previously included in income with respect to the note
and reduced by any amortizable bond premium and any principal
payments previously received by the holder. In the case of a
holder other than a corporation, preferential tax rates may
apply to gain recognized on the sale of a note if such
holder&#146;s holding period for such note exceeds one year.
Subject to certain limited exceptions, capital losses cannot be
applied to offset ordinary income for United States federal
income tax purposes.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Distributions on Common Stock</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The amount of any distribution we make in respect of the common
stock will be equal to the amount of cash and the fair market
value, on the date of distribution, of any property distributed.
Generally, distributions will be treated as a dividend to the
extent of our current or accumulated earnings and profits, then
as a tax-free return of capital to the extent of a holder&#146;s
tax basis in the common stock and thereafter as gain from the
sale or exchange of such common stock as described below. In
general, a dividend distribution to a corporate
</DIV>

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<DIV align="left" style="font-size: 10pt;">
holder will qualify for the dividends-received deduction. The
dividends-received deduction is subject to certain holding
period, taxable income, and other limitations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Dividends received by an individual taxpayer during taxable
years before 2009 will be taxed at a maximum rate of 15%,
provided the taxpayer held the stock for more than 60&nbsp;days
during a specified period of time and certain other requirements
are met. Dividends received by an individual taxpayer for
taxable years after 2008 will be subject to tax at ordinary
income rates.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Sale or Exchange of Common Stock</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon the sale or exchange of common stock, a holder generally
will recognize capital gain or loss equal to the difference
between the amount realized on the sale or exchange and the
holder&#146;s adjusted tax basis in the common stock. In the
case of a holder other than a corporation, preferential tax
rates may apply to such gain if the holder&#146;s holding period
for the common stock exceeds one year. Subject to certain
limited exceptions, capital losses cannot be applied to offset
ordinary income for United States federal income tax purposes.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Information Reporting and Backup Withholding Tax</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In general, information reporting requirements will apply to
payments of principal and interest on the notes, payments of
dividends on the common stock and payments of the proceeds of
the sale of the notes or common stock. A backup withholding tax
may apply to such payments if the holder fails to comply with
certain identification requirements. Backup withholding is
currently imposed at a rate of 28%. Any amounts withheld under
the backup withholding rules from a payment to a holder will be
allowed as a credit against such holder&#146;s United States
federal income tax and may entitle the holder to a refund,
provided that the required information is furnished to the
Internal Revenue Service.
</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>Taxation of Non-U.S.&nbsp;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 rules governing United States federal income taxation of a
non-U.S.&nbsp;holder of notes or common stock are complex and no
attempt will be made herein to provide more than a summary of
such rules. Non-U.S.&nbsp;holders should consult with their own
tax advisors to determine the effect of United States federal,
state and local and foreign tax laws, as well as treaties, with
regard to an investment in the securities, including any
reporting requirements.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Interest Income</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Generally, interest income of a non-U.S.&nbsp;holder that is not
effectively connected with a United States trade or business is
subject to a withholding tax at a 30% rate (or, if applicable, a
lower tax rate specified by a treaty). However, interest income
earned on a note by a non-U.S.&nbsp;holder will qualify for the
&#147;portfolio interest&#148; exemption and therefore will not
be subject to United States federal income tax or withholding
tax, provided that such interest income is not effectively
connected with a United States trade or business of the
non-U.S.&nbsp;holder and provided that (1)&nbsp;the
non-U.S.&nbsp;holder does not actually or constructively own 10%
of more of the total combined voting power of all classes of our
stock entitled to vote; (2)&nbsp;the non-U.S.&nbsp;holder is not
a controlled foreign corporation that is related to us through
stock ownership; (3)&nbsp;the non-U.S.&nbsp;holder is not a bank
which acquired the note in consideration for an extension of
credit made pursuant to a loan agreement entered into in the
ordinary course of business; and (4)&nbsp;either (A)&nbsp;the
non-U.S.&nbsp;holder certifies to the payor or the payor&#146;s
agent, under penalties of perjury, that it is not a United
States person and provides its name, address, and certain other
information on a properly executed Internal Revenue Service
Form&nbsp;W-8BEN or a suitable substitute form or (B)&nbsp;a
securities clearing organization, bank or other financial
institution that holds customer securities in the ordinary
course of its trade or business and holds the notes in such
capacity, certifies to the payor or the payor&#146;s agent,
under penalties of perjury, that such a statement has been
received from the beneficial owner by it or by a financial
institution between it and the beneficial owner, and furnishes
the payor or the payor&#146;s agent with a copy thereof. The
applicable United States Treasury regulations also provide
alternative methods for satisfying the certification
requirements of clause&nbsp;(4), above. If a
non-U.S.&nbsp;holder holds the note through certain foreign
intermediaries or partnerships, such holder and the
</DIV>

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<DIV align="left" style="font-size: 10pt;">
foreign intermediary or partnership may be required to satisfy
certification requirements under applicable United States
Treasury 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;
Except to the extent that an applicable income tax treaty
otherwise provides, a non-U.S.&nbsp;holder generally will be
taxed with respect to interest in the same manner as a
U.S.&nbsp;holder if the interest is effectively connected with a
United States trade or business of the non-U.S.&nbsp;holder.
Effectively connected interest income received or accrued by a
corporate non-U.S.&nbsp;holder may also, under certain
circumstances, be subject to an additional &#147;branch
profits&#148; tax at a 30% rate (or, if applicable, at a lower
tax rate specified by a treaty). Even though such effectively
connected income is subject to income tax, and may be subject to
the branch profits tax, it is not subject to withholding tax if
the non-U.S.&nbsp;holder delivers a properly executed Internal
Revenue Service Form&nbsp;W-8ECI (or successor form) to the
payor or the payor&#146;s agent.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Conversion of Notes</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In general, a non-U.S.&nbsp;holder will not recognize gain upon
conversion of a note to the extent such holder receives common
stock (except with respect to shares attributable to accrued but
unpaid interest not previously included in the income of the
holder, which would be subject to the rules described under
&#147;&#151;&nbsp;Interest Income&#148; above). To the extent a
non-U.S.&nbsp;holder receives cash upon conversion of a note
(other than cash attributable to accrued but unpaid interest not
previously included in the income of the holder, which would be
subject to the rules described under &#147;&#151;&nbsp;Interest
Income&#148; above), such cash may give rise to gain that would
be subject to the rules described under &#147;&#151;&nbsp;Sale,
Exchange or Redemption of Notes; Sale or Exchange of Common
Stock&#148; below.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Adjustment of Conversion Rate</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain adjustments in the conversion rate of the notes may be
treated as a taxable dividend to a non-U.S.&nbsp;holder. See
&#147;Taxation of U.S.&nbsp;Holders&nbsp;&#151; Adjustment of
Conversion Rate&#148; above and
&#147;&#151;&nbsp;Dividends&#148; below.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Repurchase at the Option of Holder</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a non-U.S.&nbsp;holder requires us to repurchase a note and
we deliver solely common stock, such repurchase will generally
not be a taxable event (except with respect to shares
attributable to accrued but unpaid interest not previously
included in the income of the holder, which would be subject to
the rules described under &#147;&#151;&nbsp;Interest
Income&#148; above). To the extent a non-U.S.&nbsp;holder
receives cash upon a repurchase (other than cash attributable to
accrued but unpaid interest not previously included in the
income of the holder, which would be subject to the rules
described under &#147;&#151;&nbsp;Interest Income&#148; above),
such cash may give rise to gain that would be subject to the
rules described under &#147;&#151;&nbsp;Sale, Exchange or
Redemption of Notes; Sale or Exchange of Common Stock&#148;
below.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Dividends</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Distributions we make with respect to the common stock that are
treated as dividends paid, as described above under
&#147;Taxation of U.S.&nbsp;Holders&nbsp;&#151; Distributions on
Common Stock,&#148; to a non-U.S.&nbsp;holder (excluding
dividends that are effectively connected with the conduct of a
United States trade or business by such holder and are taxable
as described below) will be subject to United States federal
withholding tax at a 30% rate (or a lower rate provided under an
applicable income tax treaty). Except to the extent that an
applicable income tax treaty otherwise provides, a
non-U.S.&nbsp;holder will be taxed in the same manner as a
U.S.&nbsp;holder on dividends paid (or deemed paid) that are
effectively connected with the conduct of a United States trade
or business by the non-U.S.&nbsp;holder. If such
non-U.S.&nbsp;holder is a foreign corporation, it may also be
subject to a United States branch profits tax on such
effectively connected income at a 30% rate (or such lower rate
as may be specified by an applicable income tax treaty). Even
though such effectively connected dividends are subject to
income tax and may be subject to the branch profits tax, they
will not be subject to United States federal withholding tax if
the holder delivers a properly executed Internal Revenue Service
Form&nbsp;W-8ECI (or successor form) to the payor or the
payor&#146;s agent. A non-U.S.&nbsp;holder who wishes to claim
the benefit of an applicable income tax
</DIV>

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<DIV align="left" style="font-size: 10pt;">
treaty is required to satisfy certain certification and other
requirements. If you are eligible for a reduced rate of United
States withholding tax pursuant to an income tax treaty, you may
obtain a refund of any excess amounts withheld by filing an
appropriate claim for refund with the Internal Revenue Service.
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Sale, Exchange or Redemption of Notes; Sale or Exchange of
    Common Stock</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except as set forth under &#147;&#151;&nbsp;Conversion of
Notes&#148; and &#147;&#151;&nbsp;Repurchase at the Option of
Holder&#148; above, a non-U.S.&nbsp;holder generally will be
subject to United States federal income tax on any gain realized
on the sale, exchange, redemption or other disposition of a note
or the sale or exchange of common stock if (1)&nbsp;the gain is
effectively connected with a United States trade or business of
the non-U.S.&nbsp;holder, (2)&nbsp;in the case of a
non-U.S.&nbsp;holder who is an individual, such holder is
present in the United States for a period or periods aggregating
183&nbsp;days or more during the taxable year of the
disposition, and either (A)&nbsp;such holder has a &#147;tax
home&#148; in the United States or (B)&nbsp;the disposition is
attributable to an office or other fixed place of business
maintained by such holder in the United States, or (3)&nbsp;in
the event that we are characterized as a United States real
property holding corporation and the non-U.S.&nbsp;holder does
not qualify for certain exemptions (see discussion below under
&#147;Foreign Investment in Real Property Tax Act&#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 an individual non-U.S.&nbsp;holder falls under
clause&nbsp;(1) above, such individual generally will be taxed
on the net gain derived from a sale in the same manner as a
U.S.&nbsp;holder. If an individual non-U.S.&nbsp;holder falls
under clause&nbsp;(2) above, such individual generally will be
subject to a 30% tax on the gain derived from a sale, which may
be offset by certain United States capital losses
(notwithstanding the fact that such individual is not considered
a resident of the United States). Individual
non-U.S.&nbsp;holders who have spent (or expect to spend)
183&nbsp;days or more in the United States in the taxable year
in which they contemplate a disposition of Notes or common stock
are urged to consult their tax advisors as to the tax
consequences of such sale. If a non-U.S.&nbsp;holder that is a
foreign corporation falls under clause&nbsp;(1), it generally
will be taxed on the net gain derived from a sale in the same
manner as a U.S.&nbsp;holder and, in addition, may be subject to
the branch profits tax on such effectively connected income at a
30% rate (or such lower rate as may be specified by an
applicable income tax treaty).
</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="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Information Reporting and Backup Withholding Tax</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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
United States backup withholding tax will not apply to payments
on the notes or payments of dividends on the common stock to a
non-U.S.&nbsp;holder if the statement described in
clause&nbsp;(4) of &#147;Interest Income&#148; is duly provided
by such holder, provided that the payor does not have actual
knowledge or reason to know that the holder is a United States
person. Information reporting requirements may apply with
respect to interest payments on the notes and dividend payments
on the common stock, in which event the amount of interest or
dividends paid and tax withheld (if any) with respect to each
non-U.S.&nbsp;holder will be reported annually to the Internal
Revenue Service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Information reporting requirements and backup withholding tax
will not apply to any payment of the proceeds of the sale of
notes or common stock effected outside the United States by a
foreign office of a &#147;broker&#148; as defined in applicable
Treasury regulations, unless such broker (1)&nbsp;is a United
States person as defined in the Internal Revenue Code,
(2)&nbsp;is a foreign person that derives 50% or more of its
gross income for certain periods from the conduct of a trade or
business in the United States, (3)&nbsp;is a controlled foreign
corporation for United States federal income tax purposes or
(4)&nbsp;is a foreign partnership with certain
U.S.&nbsp;connections. Payment of the proceeds of any such sale
effected outside the United States by a foreign office of any
broker that is described in the preceding sentence may be
subject to information reporting (but not backup withholding),
unless such broker has documentary evidence in its records that
the beneficial owner is a non-U.S.&nbsp;holder and certain other
conditions are met, or the beneficial owner otherwise
establishes an exemption. Payment of the proceeds of any such
sale to or through the United States office of a broker is
subject to information reporting and backup withholding
requirements unless the beneficial owner of the Notes provides
the statement described in clause&nbsp;(4) of &#147;Interest
Income&#148; and certain other conditions are met, or the
beneficial owner otherwise establishes an exemption.
</DIV>

<P align="center" style="font-size: 10pt;">57

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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>Foreign Investment in Real Property Tax Act</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 Foreign Investment in Real Property Tax Act, any
person who acquires a &#147;United States real property
interest&#148; (as described below) from a foreign person must
deduct and withhold a tax equal to 10% of the amount realized by
the foreign transferor. In addition, a foreign person who
disposes of a United States real property interest generally is
required to recognize gain or loss that is subject to United
States federal income tax. A &#147;United States real property
interest&#148; generally includes any interest (other than an
interest solely as a creditor) in a United States corporation
unless it is established under specified procedures that the
corporation is not (and was not for the prior five-year period)
a &#147;United States real property holding corporation.&#148;
We believe it is likely that we are a United States real
property holding corporation and we can give no assurance that
we will not continue to be a United States real property holding
corporation in the future. However, so long as our common stock
is regularly traded on an established securities market, an
exemption should apply to the notes and the common stock except
(i)&nbsp;in the case of notes, if the notes are or become
regularly traded, with respect to a non-U.S.&nbsp;holder that
owns more than 5% of the notes, and (ii)&nbsp;otherwise, and in
the case of the common stock, with respect to a
non-U.S.&nbsp;holder whose beneficial and/or constructive
ownership of the notes or the common stock, as the case may be,
exceeds 5% of the total fair market value of the common 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;
Any investor that may approach or exceed the 5% ownership
threshold discussed above, either alone or in conjunction with
related persons, should consult its own tax advisor concerning
the United States tax consequences that may result. A
non-U.S.&nbsp;holder who sells or otherwise disposes of a note
or common stock may be required to inform its transferee whether
such note or common stock constitutes a United States real
property interest.
</DIV>

<DIV align="left" style="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 United States federal income tax discussion set forth
above is included for general information only and may not be
applicable depending upon a holder&#146;s particular situation.
Holders should consult their tax advisors with respect to the
tax consequences to them of the ownership and disposition of the
securities, including the tax consequences under state, local,
foreign and other tax laws and the possible effects of changes
in United States federal or other tax laws.</B>
</DIV>

<P align="center" style="font-size: 10pt;">58

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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='114'></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" style="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 and any shares of common stock
issuable upon conversion of the notes offered hereby will be
passed upon for us by Covington&nbsp;&#38; Burling, New York,
New York.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='115'></A>
</DIV>

<!-- link1 "EXPERTS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<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;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The consolidated financial statements of Calpine Corporation as
of December&nbsp;31, 2004 and for the two years then ended and
management&#146;s assessment of the effectiveness of internal
control over financial reporting (which is included in
Management&#146;s Report on Internal Control over Financial
Reporting) as of December&nbsp;31, 2004, incorporated in this
prospectus by reference to Calpine Corporation&#146;s Annual
Report on Form&nbsp;10-K for the year ended December&nbsp;31,
2004, have been so incorporated in reliance on the report of
PricewaterhouseCoopers LLP, an independent registered public
accounting firm, given on the authority of said firm as experts
in auditing and accounting.
</DIV>

<DIV align="left" style="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 financial statements of Acadia Power Partners, LLC and
Subsidiary as of December&nbsp;31, 2004 and 2003 and for each of
the two years in the period ended December&nbsp;31, 2004
included in this Prospectus have been so included in reliance on
the report of PricewaterhouseCoopers LLP, an independent
registered public accounting firm, given on the authority of
said firm as experts in auditing and accounting.
</DIV>

<DIV align="left" style="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 2002 consolidated financial statements and related financial
statement schedules of Calpine Corporation incorporated in this
prospectus by reference from Calpine Corporation&#146;s Annual
Report on Form&nbsp;10-K for the year ended December 31, 2004
have been audited by Deloitte &#38; Touche LLP, an independent
registered public accounting firm, as stated in their report,
which is incorporated herein by reference (which report
expresses an unqualified opinion and includes emphasis relating
to the adoption of a new accounting standard in 2002 and
divestitures), and have been so incorporated in reliance upon
the report of such firm given upon their authority as experts in
accounting and auditing.
</DIV>

<P align="center" style="font-size: 10pt;">59

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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;">

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
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