Business: Acusphere Inc., 6.5% Convertible Exchangeable Preferred Stock, liquidation preference $50 per share, redeemable at the issuer's option on or after 3/6/2009 at $51.95 per share which declines to $50 on 3/1/2015 (see chart on page S-22 of the prospectus) plus accrued and unpaid dividends, with no stated maturity, and with distributions of 6.5% ($3.25) per annum paid quarterly on 3/1, 6/1, 9/1 & 12/1 to holders of record on the date fixed by the board, not more than 60 days or less than 10 days prior to the payment date. The preferred shares are convertible any time at the holder's option into 7.2886 common shares of Acusphere Inc. (Nasdaq: ACUS), an initial conversion price of $6.86 per common share. If the price of the common stock exceeds $10.30 (150% of the conversion price) for 20 of any 30 consecutive trading days, the company may, at their option, force the preferred shares to be converted into common shares at the then prevailing conversion price. If the preferred is converted prior to 3/1/2009 at either the company's or the holder's option, the company will make an additional payment equal to the aggregrate amount of the cumulative dividends to that date. In regards to payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the convertible preferred stock and the conversion provisions by clicking on the ‘Link to IPO Prospectus’ provided below.