Document:

<PAGE>

[THIS EXHIBIT 4.18 IS THE FORM OF SUBORDINATED DEBT SECURITY TO BE ISSUED TO
EACH LEHMAN BROTHERS HOLDINGS TRUST]

                                                                    EXHIBIT 4.18

                             [FORM OF FACE OF DEBENTURE]

          [IF THE DEBENTURE IS TO BE A GLOBAL DEBENTURE, INSERT THE FOLLOWING:
THIS DEBENTURE IS A GLOBAL DEBENTURE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE OF A DEPOSITARY. THIS DEBENTURE IS EXCHANGEABLE FOR DEBENTURES
REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS
DEBENTURE (OTHER THAN A TRANSFER OF THIS DEBENTURE AS A WHOLE BY THE DEPOSITARY
TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN
LIMITED CIRCUMSTANCES.

          UNLESS THIS DEBENTURE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
DEBENTURE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND
ANY PAYMENT HEREON IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL SINCE THE REGISTERED OWNER
HEREOF, CEDE CO., HAS AN INTEREST HEREIN.]

NO. D-                              $____________
CUSIP NO.

                            LEHMAN BROTHERS HOLDINGS INC.

                     ____% JUNIOR SUBORDINATED DEBENTURE DUE 20__

     Lehman Brothers Holdings Inc., a corporation duly organized and existing
under the laws of the State of Delaware (herein referred to as the
"Company"), for value received, hereby promises to pay to
[If the Debenture is held by Lehman Brothers Holdings Capital Trust __: THE
CHASE MANHATTAN BANK, as Property Trustee (the "Property Trustee") for LEHMAN
BROTHERS HOLDINGS CAPITAL TRUST __ (the "Trust")] [If the Debenture is not held
by the Trust: _______________], at the office or agency of the Company in the
Borough of Manhattan, the City of New York, the principal sum of
_________________ DOLLARS on __________ __, 20__, in such coin or currency of
the Untied States of America as at the time of payment shall be legal tender

<PAGE>

for the payment of public and private debts, and to pay interest on said
principal sum at said office or agency, in like coin or currency, at the rate
per annum specified in the title of this Debenture until the principal hereof
becomes due and payable, and on any overdue principal and (to the extent that
payment of such interest is enforceable under applicable law) on any overdue
installment of interest at the same rate per annum during the period in which
such principal is overdue, compounded [semi-annually], to the registered
holder of this Debenture, until payment of said principal sum has been made
or duly provided for.  Interest on this Debenture, (computed as set forth
herein) shall be payable [semi-annually] (subject to deferral as set forth
herein) in arrears on [__________ __ and __________ __] of each year (each an
"Interest Payment Date"), commencing ___________ __, ____, from the Interest
Payment Date next preceding the date of this Debenture to which interest has
been paid or duly provided for, unless the date hereof is a date to which
interest has been paid or duly provided for, in which case from the date of
this Debenture, or, if no interest has been paid or duly provided for on this
Debenture, from _____________ __, ____.

     The interest so payable on any Interest Payment Date will, subject to
certain exceptions provided in the Indenture referred to on the reverse hereof,
be paid to the person in whose name this Debenture (or one or more Predecessor
Securities, as defined in said Indenture) is registered at [If the Debentures
are held only by the Property Trustee or if this is a Global Debenture:  the
close of business on the Business Day prior to the relevant Interest Payment
Date] [Otherwise: the date selected by the Company and in any event at least one
Business Day before the relevant Interest Payment Date] (each a "Regular Record
Date").  Interest may, at the option of the Company, be paid by check mailed to
the person entitled thereto at such person's address as it appears in the
registry books of the Company.

     REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS DEBENTURE SET FORTH ON
THE REVERSE HEREOF.  SUCH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE
SAME EFFECT AS THOUGH FULLY SET FORTH AT THIS PLACE.

     This Debenture shall not be valid or become obligatory for any purpose
until the certificate of authentication hereon shall have been signed by the
Trustee under the Indenture referred to on the reverse hereof.

                                       2
<PAGE>

     IN WITNESS WHEREOF, LEHMAN BROTHERS HOLDINGS INC. has caused this
instrument to be signed by its Chairman of the Board, its Vice Chairman, its
President, its Chief Financial Officer, one of its Vice Presidents or its
Treasurer by manual or facsimile signature under its corporate seal, attested by
its Secretary or one of its Assistant Secretaries by manual or facsimile
signature.

                              LEHMAN BROTHERS HOLDINGS INC.

                              By:________________________________
                                   Name:
                                   Title:

Attest:

_____________________________________
Name:
Title:

                       TRUSTEE'S CERTIFICATE OF AUTHENTICATION

          This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.

Dated:

                                   THE CHASE MANHATTAN BANK,
                                      as Trustee

                                   By:___________________________
                                   Name:
                                   Title:

                                       3
<PAGE>

                            [FORM OF REVERSE OF DEBENTURE]

                                (Reverse of Debenture)

                            LEHMAN BROTHERS HOLDINGS INC.
                     ____% JUNIOR SUBORDINATED DEBENTURE DUE 20__

     This Debenture is one of a duly authorized series of Debentures of the
Company designated as the ____% Junior Subordinated Debentures Due 20__ of
the Company (herein called the "Debentures"), limited (except as otherwise
provided in the Indenture referred to below) in aggregate principal amount to
$______________.  The Debentures are one of an indefinite number of series of
debt securities of the Company (herein collectively called the "Securities"),
issued or issuable under and pursuant to an indenture, dated as of February
1, 1996, as amended and supplemented (herein called the "Indenture"), between
the Company and The Chase Manhattan Bank, formerly known as Chemical Bank, as
Trustee (herein called the "Trustee") to which Indenture and all indentures
supplemental thereto reference is hereby made for a description of rights,
limitations of rights, obligations, duties and immunities thereunder of the
Trustee, the Company and the holders of the Debentures.  The separate series
of Securities may be issued in various aggregate principal amounts, may
mature at different times, may bear interest (if any) at different rates, may
be subject to different redemption provisions or repayment or repurchase
rights (if any), may be subject to different sinking, purchase or analogous
funds (if any), may be subject to different covenants and Events of Default,
as defined in the Indenture, and may otherwise vary as provided in the
Indenture.

     Payment of the principal of and interest on this Debenture is, to the
extent provided in the Indenture, subordinated and subject in right of payment
to the prior payment in full when due of the principal of (and premium, if any)
and interest, if any, on all Senior Debt, as defined in the Indenture, of the
Company and this Debenture is issued subject to the provisions of the Indenture
with respect thereto.  Each registered holder of this Debenture, by accepting
the same, (a) agrees to and shall be bound by such provisions, (b) authorizes
and expressly directs the Trustee on his or her behalf to take such action as
may be necessary or appropriate to effectuate the subordination so provided and
(c) appoints the Trustee as his or her attorney-in-fact for any and all such
purposes.  Each registered holder hereof, by his or her acceptance hereof,
hereby waives all notice of the acceptance of the subordination provisions
contained herein and in the Indenture by each holder of Senior Debt, whether now
outstanding or hereafter incurred, and waives reliance by each such holder upon
said provisions.

                                          4

<PAGE>

     Subject to Article Eleven of the Indenture, at any time on or after
_________ __, ____, and prior to maturity, the Company shall have the right to
redeem this Debenture at the option of the Company, in whole or in part, at the
Redemption Prices (expressed as a percentage of the principal amount of such
Debentures) set forth below, plus any accrued but unpaid interest, to the
Redemption Date, if redeemed during the twelve-month period beginning on the
________ __ of the years indicated below:

YEAR                                                                  PERCENTAGE
 ........................................................................    %
 ........................................................................    %
 ........................................................................    %
 ........................................................................    %
 ........................................................................    %
 ........................................................................    %
 ........................................................................    %
 ........................................................................    %
 ........................................................................    %
and thereafter.......................................................... 100%

If an Investment Company Event (as defined in the Amended and Restated
Declaration of Trust of the Trust, dated ______ __, _____, among the Company,
as Sponsor, the Trust, and the trustees of the Trust named thereto (the
"Declaration") shall occur and be continuing, the Company may, at any time
within 90 days following the occurrence of such Investment Company Event,
redeem the Debentures (in whole but not in part) at a Redemption Price equal
to 100% of the principal amount thereof, plus accrued and unpaid interest
thereon to the Redemption Date.  Subject to certain conditions described in
the Indenture, in the event of the occurrence and continuation of a Tax Event
(as defined in the Declaration), in certain circumstances the Company may (a)
shorten the Stated Maturity of the Debentures to a date not earlier than
_______ __, ____ or (b) redeem the Debentures, in whole but not in part, at
any time within 90 days following the occurrence of a Tax Event at a
Redemption Price equal to 100% of the aggregate principal amount thereof,
plus accrued and unpaid interest thereon to the Redemption Date.  Any
redemption pursuant to this paragraph shall be made upon not less than 30 nor
more than 60 days' notice to the trustee and holders of the Debentures.  Any
redemption pursuant to this paragraph shall be made upon not less than 30 nor
more than 60 days notice to the Trustee and Holders of the Debentures.  If
less than all the Debentures are to be redeemed by the Company, the
Debentures to be redeemed will be selected by lot or by such other method as
the Trustee shall deem fair and appropriate.  The Debentures are not subject
to a sinking fund.

     In the event of redemption of this Debenture in part only, a new Debenture
or Debentures of this series for the unredeemed portion hereof will be issued in
the name of the registered holder hereof upon the surrender hereof at a Place of
Payment (as defined in the Indenture).

     In case an Event of Default with respect to the Debentures shall have
occurred and be continuing, the principal hereof may be  declared, and upon such
declaration shall become, due and payable, in the manner, with the effect and
subject to the conditions provided in the Indenture.  The omission by the
Company to pay interest during an Extension Period (as defined below) as
permitted hereby shall not constitute an Event of Default under Section 501 of
the Indenture.  An "Event of Default" means any of those events set forth in
Section 501 of the Indenture, and the event that, when the Property Trustee is
the Holder of the Debentures, the Trust shall have voluntarily or involuntarily
dissolved, wound-up its business or otherwise terminated its existence except in
connection with the (i) distribution of Debentures to holders of Preferred
Securities and Common Securities in liquidation of their

                                          5

<PAGE>

interests in the Trust, (ii) the redemption of all of the outstanding Preferred
Securities and Common Securities, or (iii) certain mergers, consolidations or
amalgamation, each as permitted by the Declaration.

     If the Debentures are held by the Trust, the Company, as borrower,
hereby covenants to pay all debts and obligations (other than with respect to
the Preferred Securities and Common Securities of the Trust) and all costs
and expenses of the Trust (including, but not limited to, all costs and
expenses relating to the organization of the Trust, the fees and expenses of
the trustees of the Trust and all costs and expenses relating to the
operation of the Trust) and to pay any and all taxes, duties, assessments or
governmental charges of whatever nature (other than United States withholding
taxes) imposed on the Trust by the United States, or any other taxing
authority, so that the net amounts received and retained by the Trust and the
Property Trustee after paying such debts, obligations, costs, expenses, taxes,
duties, assessments, or other governmental charges, will be equal to the
amounts the Trust and the Property Trustee would have received had no such
debts, obligations, costs, expenses, taxes, duties, assessments, or other
governmental charges been incurred by or imposed on the Trust. The foregoing
obligations of the Company are for the benefit of, and shall be enforceable
by, any person to whom any such debts, obligations, costs, expenses and taxes
are owed (each, a "Creditor") whether or not such Creditor has received
notice thereof.  Any such Creditor may enforce such obligations of the
Company directly against the Company, and the Company irrevocably waives any
right or remedy to require that any such Creditor take any action against the
Trust or any other person before proceeding against the Company.  The Company
shall execute such additional agreements as may be necessary or desirable to
give full effect to the foregoing.

     The Company hereby covenants that, so long as any Preferred Securities
and Common Securities of the Trust remain outstanding, if (i) there shall
have occurred any Event of Default under the Indenture with respect to the
Debentures, (ii) the Company shall be in default with respect to its payment
of any obligations under its Guarantee (as defined in the Declaration) with
respect to the Trust or (iii) the Company shall have given notice of its
election of an Extension Period as provided herein and shall not have
rescinded such notice, or such Extension Period or any extension thereof
shall be continuing, then the Company will not, and will not permit any
Subsidiary to (x) declare or pay any dividends or distributions on, or
redeem, purchase, acquire or make a liquidation payment with respect to, any
of the Company's capital stock or (y) make any payment of principal, interest
or premium, if any, on or repay, repurchase or redeem any debt securities of
the Company that rank on a parity with or junior in interest to this
Debenture or make any guarantee payments with respect to any guarantee by the
Company of the debt securities of any Subsidiary of the Company if such
guarantee ranks on a parity with or junior in interest to this Debenture
(other than (a)

                                          6

<PAGE>

dividends or distributions in common stock of the Company, (b) payments under
the Guarantee made by the Company in respect of the Preferred Securities and
Commom Securities of the Trust, (c) any declaration of a dividend in
connection with the implementation of a shareholders' rights plan, or the
issuance of stock under any such plan in the future, or the redemption or
repurchase of any such rights pursuant thereto, and (d) purchases of common
stock related to the issuance of common stock or rights under any of the
Company's benefit plans).

     The Indenture contains provisions permitting the Company and the Trustee,
with the consent of the holders of not less than 66-2/3% in aggregate principal
amount of each series of the Securities at the time Outstanding to be affected
(each series voting as a class), evidenced as provided in the Indenture, to
execute supplemental indentures adding any provisions to, or changing in any
manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or modifying in any manner the rights of the holders of
the Securities of all such series; PROVIDED, HOWEVER, that no such supplemental
indenture shall, among other things, (i) change the fixed maturity of any
Security, or reduce the principal amount thereof, or reduce the rate or extend
the time of payment of interest thereon or reduce any premium payable on
redemption, or make the principal thereof, or premium, if any, or interest
thereon payable in any coin or currency other than that hereinabove provided, or
amend the Indenture to modify its provisions relating to the subordination of
each Security in a manner adverse to the holder thereof, without the consent of
the holder of each Security so affected, or (ii) change the place of payment on
any Security, or impair the right to institute suit for payment on any Security,
or reduce the aforesaid percentage of Securities, the holders of which are
required to consent to any such supplemental indenture, without the consent of
the holders of each Security so affected.  It is also provided in the Indenture
that, prior to any declaration accelerating the maturity of any series of
Securities, the holders of a majority in aggregate principal amount of the
Securities of such series Outstanding may on behalf of the holders of all the
Securities of such series waive any past default or Event of Default under the
Indenture with respect to such series and its consequences, except a default in
the payment of interest, if any, on or the principal of, or premium, if any, on
any of the Securities of such series.  Any such consent or waiver by the holder
of this Debenture shall be conclusive and binding upon such holder and upon all
future holders and owners of this Debenture and any Debentures which may be
issued in exchange or substitution herefor, irrespective of whether or not any
notation thereof is made upon this Debenture or such other Debentures.

     No reference herein to the Indenture and no provisions of this Debenture or
of the Indenture shall alter or impair the obligations of the Company, which is
absolute and unconditional, to pay the principal of this Debenture at the place,
at the time and in the coin or currency herein prescribed.

     The amount of interest payable for any period will be computed (i) for
any full 180-day semi-annual interest payment period, on the basis of a
360-day year of twelve 30-day months, (ii) for any period shorter than a full
180-day semi-annual interest payment period for

                                          7

<PAGE>

which interest payments are computed, on the basis of a 30-day month and (iii)
for periods of less than a month, the actual number of days elapsed per 30-day
month.  In the event that any date on which interest is payable on this
Debenture is not a Business Day (as defined in the Indenture), then payment of
the amount payable on such date will be made on the next succeeding day which is
a Business Day (and without any interest or other payment in respect of any such
delay) except that, if such Business Day is in the next succeeding calendar
year, such payment shall be made on the immediately preceding Business Day, in
each case with the same force and effect as if made on the original Interest
Payment Date, subject to certain rights of deferral described below.

     The Company shall have the right at any time, on one or more occasions,
so long as an Event of Default has not occurred and is not continuing under
the Indenture, to extend any interest payment period on this Debenture for a
period (an "Extension Period") not to exceed [ten consecutive semi-annual]
interest payment periods; provided that the date on which such Extension
Period ends must be on an Interest Payment Date and must be no later than
___________ __, ____ or any date on which any Debentures are fixed for
redemption, and, as a consequence, the [semi-annual] interest payment on the
Debentures would be deferred (but would continue to accrue with interest
thereon compounded [semi-annually] at the rate of interest on the Debentures,
except to the extent payment of such interest is prohibited by law) during
any such Extension Period. On the Interest Payment Date at the end of each
Extension Period, the Company shall pay all interest then accrued and unpaid
(compounded [semi-annually], at the rate of interest on the Debentures,
except to the extent payment of such interest is prohibited by law) to the
date of payment, to the persons in whose name the Debentures are registered

                                          8

<PAGE>

on the Regular Record Date immediately preceding the Interest Payment Date at
the end of such Extension Period.  [If the Property Trustee is the only holder
of Debentures:  The Company shall give written notice to the Regular Trustees
(as defined in the Declaration), the Property Trustee and the Trustee of its
election of such Extension Period one Business Day before the earlier of (i)
the next succeeding date on which distributions on the Preferred Securities of
the Trust are payable or (ii) the date the Trust is required to give notice of
the record date or the date such distributions are payable to the New York
Stock Exchange or other applicable self-regulatory organization or to holders
of the Preferred Securities issued by the Trust, but in any event at least one
Business Day before such record date.] [If the Property Trustee is not the only
registered holder of Debentures:  The Company shall give the registered holders
of Debentures (with the Trustee to be notified at least three days prior to
notice to such holders) written notice of its election to defer interest
payments or to extend the Extension Period ten Business Days prior to the
earlier of (i) the next scheduled [semi-annual] Interest Payment Date or (ii)
the date the Company is required to give notice of the record date of such
related interest payment to the New York Stock Exchange or other applicable
self-regulatory organization or to the registered holders of the
Debentures but in any event not less than two Business Days prior to such
Regular Record Date.]  During any Extension Period, the Company may continue
to extend the interest payment period by extending the Extension Period, on
one or more occasions by giving notice as aforesaid; provided that such
Extension Period, as extended, must end on an Interest Payment Date and in no
event shall the aggregate Extension Period, as extended, exceed
[ten consecutive semi-annual] interest payment periods or extend beyond
___________ __, ____ or any date on which any of the Debentures are fixed for
redemption.  No interest shall be due and payable on the Debentures during an
Extension Period except at the end thereof.

     Notwithstanding the provisions of Section 401(a)(B) of the Indenture, the
Company may satisfy and discharge the entire indebtedness on all the Debentures
as provided therein only when the Debentures are by their terms due and payable
within one year.

     The Debentures are issuable in registered form without coupons in
denominations of $1,000 and any multiple of $1,000.  At the option of the
holders thereof, either at the office or agency to be designated and maintained
by the Company for such purpose in the Borough of Manhattan, The City of New
York, pursuant to the provisions of the Indenture or at any of such other
offices or agencies as may be designated and maintained by the Company for such
purpose pursuant to the provisions of the Indenture, and in the manner and
subject

                                          9

<PAGE>

to the limitations provided in the Indenture, but without the payment of
any service charge, except for any tax or other governmental charges imposed in
connection therewith, Debentures may be exchanged for an equal aggregate
principal amount of Debentures of like tenor and of other authorized
denominations.

     The Company, the Trustee, and any agent of the Company or of the Trustee
may deem and treat the registered holder hereof as the absolute owner of this
Debenture (whether or not this Debenture shall be overdue and notwithstanding
any notation of ownership or other writing hereon), for the purpose of receiving
payment hereof, or on account hereof, and for all other purposes, and neither
the Company nor the Trustee nor any agent of the Company or of the Trustee shall
be affected by any notice to the contrary.  All such payments made to or upon
the order of such registered holder shall, to the extent of the sum or sums
paid, effectually satisfy and discharge liability for moneys payable on this
Debenture.

     No recourse for the payment of the principal of or the interest on this
Debenture, or for any claim based hereon or otherwise in respect hereof, and no
recourse under or upon any obligation, covenant or agreement of the Company in
the Indenture or any indenture supplemental thereto or in any Debenture, or
because of the creation of any indebtedness represented thereby, shall be had
against any incorporator, stockholder, officer or director as such, past,
present or future, of the Company or of any successor corporation, either
directly or through the Company or any successor corporation, whether by virtue
of any constitution, statute or rule of law or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issue hereof, expressly waived
and released.

     As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Debenture is registrable in the Security
Register, upon surrender of this Debenture for registration of transfer at
the office or agency of the Company in any place where the principal of this
Debenture is payable, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar duly executed by, the holder hereof or such holder's attorney duly
authorized in writing, and thereupon one or more new Debentures of this
series of like tenor and of authorized denominations and for the same
aggregate principal amount will be issued to the designated transferee or
transferees.

     THE INDENTURE AND THE DEBENTURES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

     All items used in this Debenture which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.

                                          10

<PAGE>

                        ______________________________________

     The following abbreviations, when used in the inscription on the face of
the within Debenture, shall be construed as though they were written out in full
according to applicable laws or regulations:

     TEN COM - as tenants in common
     TEN ENT - as tenants by their entireties
     JT TEN -  as joint tenants with right of survivorship and not
               as tenants in common

     UNIF GIFT MIN ACT - ___________ Custodian __________ under Uniform Gifts to
                           (Cut)                    (Minor)
     Minors Act__________________
               (State)

       Additional abbreviations may also be used though not in the above list.

                        ______________________________________

                                          11

<PAGE>

                                      ASSIGNMENT

   FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

       (Please insert social security or other identifying number of Assignee)

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
      (Name and address of Assignee, including zip code, must be printed or
typewritten.)

the within Debenture, and all rights thereunder, hereby irrevocably constituting
and appointing

________________________________________________________________________________
________________________________________________________________________________
_____________ to transfer the said Debenture on the books of the Company, with
full power of substitution in the premises.

Date:_____________

                    Signature:_______________________________________
                    NOTICE: The signature to this assignment must correspond
with the name as it appears upon the face of the within Debenture in every
particular, without alteration or enlargement or any change whatever.

Signature(s) Guaranteed:_____________________________
THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION
(BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH
MEMBERSHIP IN AN APPROVED MEDALLION SIGNATURE GUARANTEE PROGRAM), PURSUANT TO
S.E.C. RULE 17Ad-15.

                                          11<PAGE>

                                                              EXHIBIT 4.20

--------------------------------------------------------------------------

                          LEHMAN BROTHERS HOLDINGS INC.,

                        ___________________, As Depositary

                                       AND

                         THE HOLDERS FROM TIME TO TIME OF
                     THE DEPOSITARY RECEIPTS DESCRIBED HEREIN

                             ---------------------

                               Deposit Agreement
                    [Insert designation of preferred stock]

                             ---------------------

                             Dated
                                   ----------------

--------------------------------------------------------------------------

<PAGE>

                               TABLE OF CONTENTS

                                   ARTICLE I

                                  Definitions

                                   ARTICLE II

Form of Receipts, Deposit of Stock, Execution and Delivery, Transfer,
    Surrender and Redemption of Receipts
                                                                            Page

    SECTION 2.01.  Form and Transfer of Receipts............................  2
    SECTION 2.02.  Deposit of Stock; Execution and Delivery of Receipts
                        in Respect Thereof..................................  3
    SECTION 2.03.  Redemption of Stock......................................  4
    SECTION 2.04.  Registration of Transfer of Receipts.....................  5
    SECTION 2.05.  Split-ups and Combinations of Receipts;
                        Surrender of Receipts and Withdrawal of Stock.......  6
    SECTION 2.06.  Limitations on Execution and Delivery,
                        Transfer, Surrender and Exchange of Receipts........  7
    SECTION 2.07.  Lost Receipts, etc.......................................  8
    SECTION 2.08.  Cancellation and Destruction of
                        Surrendered Receipts................................  8

                                   ARTICLE III

                          Certain Obligations of Holders
                           of Receipts and the Company

    SECTION 3.01.  Filing Proofs, Certificates and Other
                        Information.........................................  8
    SECTION 3.02.  Payment of Taxes or Other Governmental
                        Charges.............................................  9
    SECTION 3.03.  Warranty as to Stock.....................................  9

                                   ARTICLE IV

                       The Deposited Securities; Notices

    SECTION 4.01.  Cash Distributions.......................................  9
    SECTION 4.02.  Distributions Other than Cash, Rights,
                        Preferences or Privileges...........................  9

                                      i
<PAGE>

    SECTION 4.03.  Subscription Rights, Preferences or
                        Privileges.......................................... 10
    SECTION 4.05.  Voting Rights............................................ 12
    SECTION 4.06.  Changes Affecting Deposited Securities and
                        Reclassifications, Recapitalizations,
                        etc................................................. 12
    SECTION 4.07.  Inspection of Reports.................................... 13
    SECTION 4.08.  Lists of Record Holders of Receipts...................... 13

                                   ARTICLE V

                    The Depositary, the Depositary's Agents,
                         the Registrar and the Company

    SECTION 5.01.  Maintenance of Offices, Agencies and Transfer
                        Books by the Depositary; Registrar.................. 13
    SECTION 5.02.  Prevention of or Delay in Performance by
                        the Depositary, the Depositary's Agents,
                        the Registrar, the Transfer Agent or the
                        Company............................................. 14
    SECTION 5.03.  Obligations of the Depositary, the
                        Depositary's Agents, the Registrar, the
                        Transfer Agent and the Company...................... 15
    SECTION 5.04.  Resignation and Removal of the
                        Depositary; Appointment of Successor
                        Depositary.......................................... 15
    SECTION 5.05.  Corporate Notices and Reports............................ 16
    SECTION 5.06.  Indemnification by the Company........................... 17
    SECTION 5.07.  Charges and Expenses..................................... 17

                                   ARTICLE VI

                           Amendment and Termination

    SECTION 6.01.  Amendment................................................ 17
    SECTION 6.02.  Termination.............................................. 18

                                   ARTICLE VII

                                  Miscellaneous

    SECTION 7.01.  Counterparts............................................. 18
    SECTION 7.02.  Exclusive Benefit of Parties............................. 18
    SECTION 7.03.  Invalidity of Provisions................................. 18
    SECTION 7.04.  Notices.................................................. 19

                                      ii
<PAGE>

    SECTION 7.05.  Depositary's Agents...................................... 19
    SECTION 7.06.  Holders of Receipts Are Parties.......................... 20
    SECTION 7.07.  GOVERNING LAW............................................ 20
    SECTION 7.08.  Inspection of Deposit Agreement.......................... 20
    SECTION 7.09.  Headings................................................. 20

                                      iii
<PAGE>

                    DEPOSIT AGREEMENT dated as of ____________, among LEHMAN
              BROTHERS HOLDINGS INC., a Delaware corporation, ___________, a
              ________ corporation, and the holders from time to time of the
              Receipts described herein.

         WHEREAS it is desired to provide, as hereinafter set forth in this
Deposit Agreement, for the deposit of shares of [insert designation of preferred
stock], par value $1.00 per share, of LEHMAN BROTHERS HOLDINGS INC. with the
Depositary for the purposes set forth in this Deposit Agreement and for the
issuance hereunder of Receipts evidencing Depositary Shares in respect of the
Stock so deposited; and

         WHEREAS the Receipts are to be substantially in the form of Exhibit A
annexed hereto, with appropriate insertions, modifications and omissions, as
hereinafter provided in this Deposit Agreement;

         NOW, THEREFORE, in consideration of the premises, the parties hereto
agree as follows:

                                   ARTICLE I

                                  Definitions

         The following definitions shall for all purposes, unless otherwise
indicated, apply to the respective capitalized terms used in this Deposit
Agreement:

         "Certificate" shall mean the Certificate of Designations filed with
the Secretary of State of Delaware establishing the Stock as a series of
preferred stock of the Company.

         "Company" shall mean Lehman Brothers Holdings Inc., a Delaware
corporation, and its successors.

         "Deposit Agreement" shall mean this Deposit Agreement, as amended or
supplemented from time to time in accordance with the terms hereof.

         "Depositary" shall mean ____________, and any successor as Depositary
hereunder.

<PAGE>

         "Depositary Shares" shall mean Depositary Shares, each representing
one _________  of a share of Stock and evidenced by a Receipt.

         "Depositary's Agent" shall mean an agent appointed by the Depositary
pursuant to Section 7.05.

         "Depositary's Office" shall mean the principal office of the
Depositary in New York City, at which at any particular time its depositary
receipt business shall be administered.

         "Receipt" shall mean one of the Depositary Receipts issued hereunder,
whether in definitive or temporary form.

         "record holder" as applied to a Receipt shall mean the person in whose
name a Receipt is registered on the books of the Depositary maintained for such
purpose.

         "Registrar" shall mean any bank or trust company which shall be
appointed pursuant to Section 7.05 to register ownership and transfers of
Receipts as herein provided.

         "Stock" shall mean shares of the Company's [insert designation of
preferred stock], par value $1.00 per share.

         "Transfer Agent" shall be as defined in Section 7.05.

                                   ARTICLE II

Form of Receipts, Deposit of Stock, Execution and Delivery, Transfer, Surrender
    and Redemption of Receipts

         SECTION 2.01.  Form and Transfer of Receipts.  Definitive Receipts
shall be engraved or printed or lithographed on steel-engraved borders and shall
be substantially in the form set forth in Exhibit A annexed to this Deposit
Agreement, with appropriate insertions, modifications and omissions, as
hereinafter provided.  Pending the preparation of definitive Receipts, the
Depositary, upon the written order of the Company or any holder of Stock, as the
case may be, delivered in compliance with Section 2.02, shall execute and
deliver temporary Receipts which are printed, lithographed, typewritten,
mimeographed or otherwise substantially of the tenor of the definitive Receipts
in lieu of which they are issued and with such appropriate insertions,
omissions, substitutions and other variations as the persons executing such
Receipts may determine,

                                      2
<PAGE>

as evidenced by their execution of such Receipts.  If temporary Receipts are
issued, the Company and the Depositary will cause definitive Receipts to be
prepared without unreasonable delay.  After the preparation of definitive
Receipts, the temporary Receipts shall be exchangeable for definitive
Receipts upon surrender of the temporary Receipts at any office described in
the third paragraph of Section 2.02, without charge to the holder. Upon
surrender for cancellation of any one or more temporary Receipts, the
Depositary shall execute and deliver in exchange therefor definitive Receipts
representing the same number of Depositary Shares as represented by the
surrendered temporary Receipt or Receipts.  Such exchange shall be made at
the Company's expense and without any charge therefor.  Until so exchanged,
the temporary Receipts shall in all respects be entitled to the same benefits
under this Agreement, and with respect to the Stock, as definitive Receipts.

         Receipts shall be executed by the Depositary by the manual signature
of a duly authorized officer of the Depositary; provided, that such signature
may be a facsimile if a Registrar for the Receipts (other than the Depositary)
shall have been appointed and such Receipts are countersigned by manual
signature of a duly authorized officer of the Registrar.  No Receipt shall be
entitled to any benefits under this Deposit Agreement or be valid or obligatory
for any purpose unless it shall have been executed manually by a duly authorized
officer of the Depositary or, if a Registrar for the Receipts (other than the
Depositary) shall have been appointed, by manual or facsimile signature of a
duly authorized officer of the Depositary and countersigned manually by a duly
authorized officer of such Registrar.  The Depositary shall record on its books
each Receipt so signed and delivered as hereinafter provided.

         Receipts shall be in denominations of any number of whole Depositary
Shares.

         Receipts may be endorsed with or have incorporated in the text thereof
such legends or recitals or changes not inconsistent with the provisions of this
Deposit Agreement as may be required by the Depositary or required to comply
with any applicable law or any regulation thereunder or with the rules and
regulations of any securities exchange upon which the Stock, the Depositary
Shares or the Receipts may be listed or to conform with any usage with respect
thereto, or to indicate any special

                                      3
<PAGE>

limitations or restrictions to which any particular Receipts are subject.

         Title to Depositary Shares evidenced by a Receipt which is properly
endorsed, or accompanied by a properly executed instrument of transfer, shall be
transferable by delivery with the same effect as in the case of a negotiable
instrument; provided, however, that until transfer of a Receipt shall be
registered on the books of the Depositary as provided in Section 2.04, the
Depositary may, notwithstanding any notice to the contrary, treat the record
holder thereof at such time as the absolute owner thereof for the purpose of
determining the person entitled to distributions of dividends or other
distributions or to any notice provided for in this Deposit Agreement and for
all other purposes.

         SECTION 2.02.  Deposit of Stock; Execution and Delivery of Receipts in
Respect Thereof.  Subject to the terms and conditions of this Deposit Agreement,
the Company or any holder of Stock may from time to time deposit shares of Stock
by delivery to the Depositary of a certificate or certificates representing the
Stock to be deposited, properly endorsed or accompanied, if required by the
Depositary, by a duly executed instrument of transfer or endorsement, in form
satisfactory to the Depositary, together with all such certifications as may be
required by the Depositary in accordance with the provisions of this Deposit
Agreement, and together with a written order of the Company or such holder, as
the case may be, directing the Depositary to execute and deliver to, or upon the
written order of, the person or persons stated in such order a Receipt or
Receipts for the number of Depositary Shares representing such deposited Stock.
Deposited Stock shall be held by the Depositary at the Depositary's Office or at
such other place or places as the Depositary shall determine.

         Upon receipt by the Depositary of a certificate or certificates
representing the Stock to be deposited in accordance with the provisions of this
Section, together with the other documents required as above specified, and upon
recordation of such Stock on the books of the registrar for the Stock in the
name of the Depositary or its nominee, the Depositary, subject to the terms and
conditions of this Deposit Agreement, shall execute and deliver, to or upon the
order of the person or persons named in the written order delivered to the
Depositary referred to in

                                      4
<PAGE>

the first paragraph of this Section, a Receipt or Receipts for the number of
Depositary Shares representing the Stock so deposited and registered in such
name or names as may be requested by such person or persons.

         The Depositary shall execute and deliver such Receipt or Receipts at
the Depositary's Office or such other offices, if any, as the Depositary may
designate.  Delivery at other offices shall be at the risk and expense of the
person requesting such delivery.

         SECTION 2.03.  Redemption of Stock.  Whenever the Company shall elect
to redeem shares of Stock in accordance with the provisions of the Certificate,
it shall (unless otherwise agreed in writing with the Depositary) give the
Depositary not less than 40 nor more than 70 days' notice of the date of such
proposed redemption of Stock, which notice shall be accompanied by a certificate
from the Company stating that such redemption of Stock is in accordance with the
provisions of the Certificate.  Such notice, if given more than 60 days prior to
the redemption date, shall be in addition to the notice required to be given for
redemption pursuant to the Certificate.  On the date of such redemption,
provided that the Company shall then have paid in full to the Depositary the
redemption price of the Stock held by the Depositary to be redeemed, plus any
accrued and unpaid dividends thereon, the Depositary shall redeem the number of
Depositary Shares representing such Stock.  The Depositary shall mail notice of
such redemption and the proposed simultaneous redemption of the number of
Depositary Shares representing the Stock to be redeemed, first-class postage
prepaid, not less than 30 and not more than 60 days prior to the date fixed for
redemption of such Stock and Depositary Shares (the "Redemption Date"), to the
record holders of the Receipts evidencing the Depositary Shares to be so
redeemed, at the addresses of such holders as they appear on the records of the
Depositary; but neither failure to mail any such notice to one or more such
holders nor any defect in any notice to one or more such holders shall affect
the sufficiency of the proceedings for redemption as to other holders.  Each
such notice shall state: (i) the Redemption Date; (ii) the number of Depositary
Shares to be redeemed and, if less than all the Depositary Shares held by any
such holder are to be redeemed, the number of such Depositary Shares held by
such holder to be so redeemed; (iii) the redemption price; (iv) the place or
places where Receipts

                                      5
<PAGE>

evidencing Depositary Shares are to be surrendered for payment of the
redemption price; and (v) that dividends in respect of the Stock represented
by the Depositary Shares to be redeemed will cease to accumulate on such
Redemption Date.  In case less than all the outstanding Depositary Shares are
to be redeemed, the Depositary Shares to be so redeemed shall be selected by
lot or pro rata (subject to rounding to avoid fractions of the Depositary
Shares) as may be determined by the Depositary to be equitable.

         Notice having been mailed by the Depositary as aforesaid, from and
after the Redemption Date (unless the Company shall have failed to redeem the
shares of Stock to be redeemed by it as set forth in the Company's notice
provided for in the preceding paragraph) all dividends in respect of the shares
of Stock so called for redemption shall cease to accumulate, the Depositary
Shares being redeemed from such proceeds shall be deemed no longer to be
outstanding, all rights of the holders of Receipts evidencing such Depositary
Shares (except the right to receive the redemption price, including any accrued
and unpaid dividends thereon) shall, to the extent of such Depositary Shares,
cease and terminate and, upon surrender of the Receipts evidencing any such
Depositary Shares (properly endorsed or assigned for transfer, if the Depositary
shall so require) in accordance with such notice, such Depositary Shares shall
be redeemed by the Depositary at a redemption price per Depositary Share equal
to one _________ of the redemption price per share paid in respect of the shares
of Stock, plus accrued and unpaid dividends thereon to the date fixed for
redemption.

         If less than all the Depositary Shares evidenced by a Receipt are
called for redemption, the Depositary will deliver to the holder of such Receipt
upon its surrender to the Depositary, together with the redemption payment, a
new Receipt evidencing the Depositary Shares evidenced by such prior Receipt and
not called for redemption.

         SECTION 2.04.  Registration of Transfer of Receipts.  Subject to the
terms and conditions of this Deposit Agreement, the Depositary shall register on
its books from time to time transfers of Receipts upon any surrender thereof by
the holder in person or by duly authorized attorney, properly endorsed or
accompanied by a properly executed instrument of transfer.  Thereupon the
Depositary and the Registrar shall execute a new

                                      6
<PAGE>

Receipt or Receipts evidencing the same aggregate number of Depositary Shares
as those evidenced by the Receipt or Receipts surrendered and deliver such
new Receipt or Receipts to or upon the order of the person entitled thereto.

         SECTION 2.05.  Split-ups and Combinations of Receipts; Surrender of
Receipts and Withdrawal of Stock.  Upon surrender of a Receipt or Receipts at
the Depositary's Office or at such other offices as it may designate for the
purpose of effecting a split-up or combination of such Receipt or Receipts, and
subject to the terms and conditions of this Deposit Agreement, the Depositary
shall execute and deliver a new Receipt or Receipts in the authorized
denomination or denominations requested, evidencing the aggregate number of
Depositary Shares evidenced by the Receipt or Receipts surrendered.

         Any holder of a Receipt or Receipts representing any number of whole
shares of Stock may withdraw the Stock by surrendering such Receipt or Receipts,
at the Depositary's Office or at such other offices as the Depositary may
designate for such withdrawals.  Thereafter, without unreasonable delay, the
Depositary shall deliver to such holder, or to the person or persons designated
by such holder as hereinafter provided, the number of whole shares of Stock
represented by the Receipt or Receipts so surrendered for withdrawal, but
holders of such whole shares of Stock will not thereafter be entitled to deposit
such Stock hereunder or to receive Depositary Shares therefor; provided,
however, that a record holder who withdraws Stock in order to demand appraisal
rights available under Delaware General Corporation Law ("DGCL"), will, subject
to certain conditions described below, be entitled to redeposit such Stock with
the Depositary and to receive Receipts evidencing Depositary Shares therefor in
the event (i) such record holder subsequently withdraws such demand for
appraisal pursuant to Section 262(e) of the DGCL, (ii) appraisal rights are not
available for such Stock pursuant to Section 262 of the DGCL or (iii) such
record holder loses or otherwise fails to perfect his rights to appraisal.  In
order to redeposit Stock with the Depositary, such a record holder must deliver
the certificates for such Stock, properly endorsed or accompanied, if required
by the Depositary, by a duly executed instrument of transfer or endorsement, in
form satisfactory to the Depositary, together with instructions that such Stock
be so deposited, to the Depositary's office or to such other offices as the
Depositary may designate by not later than

                                      7
<PAGE>

the 30th day after the earlier of (i) the withdrawal of such demand for
appraisal by such record holder, (ii) notice by the Company that appraisal
rights are not available for such Stock or (iii) the date on which such
record holder loses or otherwise fails to perfect his rights to appraisal.
The Company will notify any record holder of Receipts who so withdraws Stock
in the event appraisal rights in respect of Stock are not available.  Any
shares so redeposited must be free and clear of any lien, security interest
or pledge and a holder may be required to provide certification of the
foregoing and such other certifications as may be required by the Depositary
in accordance with this Agreement.  In addition, if required by the
Depositary, Stock presented for redeposit shall also be accompanied by (A) an
agreement or assignment, or other instrument satisfactory to the Depositary,
which will provide for the prompt transfer to the Depositary of any dividend
or right to subscribe for additional Stock or to receive other property which
such record holder may thereafter receive upon or in respect of such
redeposited Stock, or in lieu thereof, such agreement of indemnity or other
agreement as shall be satisfactory to the Depositary, and (B) a proxy or
proxies entitling the Depositary to vote such redeposited Stock for any and
all purposes until the Stock is transferred and recorded on the register of
stockholders of the Company in the name of the Depositary or its nominee.  If
a Receipt delivered by the holder to the Depositary in connection with such
withdrawal shall evidence a number of Depositary Shares in excess of the
number of Depositary Shares representing the number of whole shares of Stock
to be so withdrawn, the Depositary shall at the same time, in addition to
such number of whole shares of Stock to be so withdrawn, deliver to such
holder a new Receipt evidencing such excess number of Depositary Shares.
Delivery of the Stock being withdrawn may be made by the delivery of such
certificates, documents of title and other instruments as the Depositary may
deem appropriate.

         If the Stock being withdrawn is to be delivered to a person or persons
other than the record holder of the Receipt or Receipts being surrendered for
withdrawal of Stock, such holder shall execute and deliver to the Depositary a
written order so directing the Depositary and the Depositary may require that
the Receipt or Receipts surrendered by such holder for withdrawal of such shares
of Stock be properly endorsed in blank or accompanied by a properly executed
instrument of transfer in blank.

                                      8
<PAGE>

         Delivery of the Stock represented by Receipts surrendered for
withdrawal shall be made by the Depositary at the Depositary's office or at
such other offices as the Depositary may designate, except that, at the
request, risk and expense of the holder surrendering such Receipt or Receipts
and for the account of the holder thereof, such delivery may be made at such
other place as may be designated by such holder.

         SECTION 2.06.  Limitations on Execution and Delivery, Transfer,
Surrender and Exchange of Receipts.  As a condition precedent to the execution
and delivery, registration of transfer, split-up, combination, surrender or
exchange of any Receipt, the Depositary, any of the Depositary's Agents or the
Company may require (a) payment to it of a sum sufficient for the payment (or,
in the event that the Depositary or the Company shall have made such payment,
the reimbursement to it) of any charges or expenses payable by the holder of a
Receipt pursuant to Section 5.07, (b) the production of evidence satisfactory to
it as to the identity and genuineness of any signature and (c) compliance with
such regulations, if any, as the Depositary or the Company may establish
consistent with the provisions of this Deposit Agreement.

         The deposit of Stock may be refused, the delivery of Receipts against
Stock may be suspended, the registration of transfer of Receipts may be refused
and the registration of transfer, surrender or exchange of outstanding Receipts
may be suspended (i) during any period when the register of stockholders of the
Company is closed or (ii) if any such action is deemed necessary or advisable by
the Depositary, any Depositary's Agents or the Company, at any time or from time
to time, because of any requirement of law or of any government or governmental
body or commission or under any provision of this Deposit Agreement.

         SECTION 2.07.  Lost Receipts, etc.  In case any Receipt shall be
mutilated, destroyed, lost or stolen, the Depositary in its discretion may
execute and deliver a Receipt of like form and tenor in exchange and
substitution for such mutilated Receipt, or in lieu of and in substitution for
such destroyed, lost or stolen Receipt, upon (i) the filing by the holder
thereof with the Depositary of evidence satisfactory to the Depositary of such
destruction or loss or theft of such Receipt, of the authenticity thereof and of
his or her ownership thereof and (ii) the

                                      9
<PAGE>

furnishing of the Depositary with reasonable indemnification satisfactory to
it.

         SECTION 2.08.  Cancellation and Destruction of Surrendered Receipts.
All Receipts surrendered to the Depositary or any Depositary's Agent shall be
canceled by the Depositary.  Except as prohibited by applicable law or
regulation, the Depositary is authorized to destroy all Receipts so canceled.

                                   ARTICLE III

                          Certain Obligations of Holders
                           of Receipts and the Company

         SECTION 3.01.  Filing Proofs, Certificates and Other Information.  Any
holder of a Receipt may be required from time to time to file such proof of
residence, or other matters or other information, to execute such certificates
and to make such representations and warranties as the Depositary or the Company
may reasonably deem necessary or proper.  The Depositary or the Company may
withhold the delivery, or delay the registration of transfer, redemption or
exchange, of any Receipt or the withdrawal of the Stock represented by the
Depositary Shares evidenced by any Receipt or the distribution of any dividend
or other distribution or the sale of any rights or of the proceeds thereof until
such proof or other information is filed or such certificates are executed or
such representations and warranties are made.

         SECTION 3.02.  Payment of Taxes or Other Governmental Charges.
Holders of Receipts shall be obligated to make payments to the Depositary of
certain charges and expenses, as provided in Section 5.07.  Registration of
transfer of any Receipt or any withdrawal of Stock represented by the Depositary
Shares evidenced by such Receipt may be refused until any such payment due is
made, and any dividends, interest payments or other distributions may be
withheld or any part of or all the Stock or other property represented by the
Depositary Shares evidenced by such Receipt and not theretofore sold may be sold
for the account of the holder thereof (after attempting by reasonable means to
notify such holder prior to such sale), and such dividends, interest payments or
other distributions or the proceeds of any such sale may be applied to any
payment of such charges or

                                      10
<PAGE>

expenses, the holder of such Receipt remaining liable for any deficiency.

         SECTION 3.03.  Warranty as to Stock.  The Company hereby represents
and warrants that the Stock, when issued, will be validly issued, fully paid and
nonassessable.  Such representation and warranty shall survive the deposit of
the Stock and the issuance of Receipts.

                                   ARTICLE IV

                        The Deposited Securities; Notices

         SECTION 4.01.  Cash Distributions.  Whenever the Depositary shall
receive any cash dividend or other cash distribution on Stock, the Depositary
shall, subject to Sections 3.01 and 3.02, distribute to record holders of
Receipts on the applicable record date fixed pursuant to Section 4.04 such
amounts of such dividend or distribution as are, as nearly as practicable, in
proportion to the respective numbers of Depositary Shares evidenced by the
Receipts held by such holders; provided, however, that in case the Company or
the Depositary shall be required to withhold and shall withhold from any cash
dividend or other cash distribution in respect of the Stock an amount on account
of taxes, the amount made available for distribution or distributed in respect
of Depositary Shares shall be reduced accordingly.  The Depositary shall
distribute or make available for distribution, as the case may be, only such
amount, however, as can be distributed without attributing to any holder of
Depositary Shares a fraction of one cent, and any balance not so distributable
shall be held by the Depositary (without liability for interest thereon) and
shall be added to and be treated as part of the next sum received by the
Depositary for distribution to record holders of Receipts then outstanding.

         SECTION 4.02.  Distributions Other than Cash, Rights, Preferences or
Privileges.  Whenever the Depositary shall receive any distribution other than
cash and other than any rights, preferences or privileges described in Section
4.03, upon Stock, the Depositary shall, subject to Sections 3.01 and 3.02,
distribute to record holders of Receipts on the applicable record date fixed
pursuant to Section 4.04 such amounts of the securities or property received by
it as are, as nearly as

                                      11
<PAGE>

practicable, in proportion to the respective numbers of Depositary Shares
evidenced by the Receipts held by such record holders, in any manner that the
Depositary may deem equitable and practicable for accomplishing such
distribution.  If in the opinion of the Depositary such distribution cannot
be made proportionately among such record holders, or if for any other reason
(including any requirement that the Company or the Depositary withhold an
amount on account of taxes) the Depositary deems, after consultation with the
Company, such distribution not to be feasible, the Depositary may, with the
approval of the Company, adopt such method as it deems equitable and
practicable for the purpose of effecting such distribution, including the
sale (at public or private sale) of the securities or property thus received,
or any part thereof, at such place or places and upon such terms as it may
deem proper.  The net proceeds of any such sale shall be, subject to Sections
3.01 and 3.02, distributed or made available for distribution, as the case
may be, by the Depositary to record holders of Receipts as provided by
Section 4.01 in the case of a distribution received in cash.

         The Depositary shall not make any distribution of securities received
in respect of the Stock unless the Company shall have provided an opinion of
counsel stating that such securities have been registered under the Securities
Act of 1933 or do not need to be so registered.

         SECTION 4.03.  Subscription Rights, Preferences or Privileges.  If the
Company shall at any time offer or cause to be offered to the persons in whose
names Stock is recorded on the books of the Company any rights, preferences or
privileges to subscribe for or to purchase any securities or any rights,
preferences or privileges of any other nature, such rights, preferences or
privileges shall in each such instance be made available by the Depositary to
the record holders of Receipts in such manner as the Depositary may determine,
either by the issue to such record holders of warrants representing such rights,
preferences or privileges or by such other method as may be approved by the
Depositary in its discretion with the approval of the Company; provided,
however, that in case either (i) the Depositary determines that it is not lawful
or (after consultation with the Company) not feasible to make such rights,
preferences or privileges available to holders of Receipts by the issue of
warrants or otherwise, or (ii) with respect to any portion of the rights,
preferences or privileges of a holder of

                                      12
<PAGE>

Receipts, the Depositary is instructed that such holder does not desire to
exercise such rights, preferences or privileges, then the Depositary, in its
discretion (with the approval of the Company, in any case where the
Depositary has determined that it is not feasible to make such rights,
preferences or privileges available), may (if applicable laws and the terms
of such rights, preferences or privileges permit such transfer) sell such
rights, preferences or privileges at public or private sale, at such place or
places and upon such terms as it may deem proper.  The net proceeds of any
such sale shall be, subject to Sections 3.01 and 3.02, distributed by the
Depositary to the record holders of Receipts entitled thereto as provided by
Section 4.01 in the case of a distribution received in cash.  The Depositary
shall not make any distribution of any such rights, preferences or privileges
unless the Company shall have provided an opinion of counsel stating that
such rights, preferences or privileges have been registered under the
Securities Act of 1933 or do not need to be so registered.

         If registration under the Securities Act of 1933, as amended, of the
securities to which any rights, preferences or privileges relate is required in
order for holders of Receipts to be offered or sold the securities to which such
rights, preferences or privileges relate, the Company agrees with the Depositary
that it will file promptly a registration statement pursuant to such Act with
respect to such rights, preferences or privileges and securities and use its
best efforts and take all steps available to it to cause such registration
statement to become effective sufficiently in advance of the expiration of such
rights, preferences or privileges to enable such holders to exercise such
rights, preferences or privileges.  In no event shall the Depositary make
available to the holders of Receipts any right, preference or privilege to
subscribe for or to purchase any securities unless and until such a registration
statement shall have become effective, or unless the offering and sale of such
securities to such holders are exempt from registration under the provisions of
such Act.

         If any other action under the laws of any jurisdiction or any
governmental or administrative authorization, consent or permit is required in
order for such rights, preferences or privileges to be made available to holders
of Receipts, the Company agrees with the Depositary that the Company will use
its best efforts to take such action or obtain such authorization,

                                      13
<PAGE>

consent or permit sufficiently in advance of the expiration of such rights,
preferences or privileges to enable such holders to exercise such rights,
preferences or privileges.

         SECTION 4.04.  Notice of Dividends, etc.; Fixing of Record Date for
Holders of Receipts.  Whenever any cash dividend or other cash distribution
shall become payable or any distribution other than cash shall be made, or if
rights, preferences or privileges shall at any time be offered, with respect to
Stock, or whenever the Depositary shall receive notice of any meeting at which
record holders of Stock are entitled to vote or of which holders of Stock are
entitled to notice, or whenever the Depositary and the Company shall decide it
is appropriate, the Depositary shall in each such instance fix a record date
(which shall be the same date as the record date fixed by the Company with
respect to the Stock) for the determination of the record holders of Receipts
who shall be entitled to receive such dividend, distribution, rights,
preferences or privileges or the net proceeds of the sale thereof, or to give
instructions for the exercise of voting rights at any such meeting, or who shall
be entitled to notice of such meeting or for any other appropriate reasons.

         SECTION 4.05.  Voting Rights.  Upon receipt of notice of any meeting
at which the record holders of Stock are entitled to vote, the Depositary shall,
as soon as practicable thereafter, mail to the record holders of Receipts a
notice which shall contain (i) such information as is contained in such notice
of meeting and (ii) a statement that the record holders may, subject to any
applicable restrictions, instruct the Depositary as to the exercise of the
voting rights pertaining to the amount of Stock represented by their respective
Depositary Shares (including an express indication that instructions may be
given to the Depositary to give a discretionary proxy to a person designated by
the Company) and a brief statement as to the manner in which such instructions
may be given.  Upon the written request of the record holders of Receipts on the
relevant record date, the Depositary shall endeavor insofar as practicable to
vote or cause to be voted, in accordance with the instructions set forth in such
requests, the maximum number of whole shares of Stock represented by the
Depositary Shares evidenced by all Receipts as to which any particular voting
instructions are received.  The Company hereby agrees to take all action which
may be deemed necessary by the Depositary in order to enable the Depositary to

                                      14
<PAGE>

vote such Stock or cause such Stock to be voted.  In the absence of specific
instructions from the record holder of a Receipt, the Depositary will abstain
from voting (but, at its discretion, not from appearing at any meeting with
respect to such Stock unless directed to the contrary by the holders of all the
Receipts) to the extent of the Stock represented by the Depositary Shares
evidenced by such Receipt.

         SECTION 4.06.  Changes Affecting Deposited Securities and
Reclassifications, Recapitalizations, etc.  Upon any change in par or stated
value, split-up, combination or any other reclassification of the Stock, or upon
any recapitalization, reorganization, merger, amalgamation or consolidation
affecting the Company or to which it is a party, the Depositary may in its
discretion with the approval of, and shall upon the instructions of, the
Company, and (in either case) in such manner as the Depositary may deem
equitable, (i) make such adjustments as are certified by the Company in (x) the
fraction of an interest represented by one Depositary Share in one share of
Stock and (y) the ratio of the redemption price per Depositary Share to the
redemption price of a share of Stock, in each case as may be necessary fully to
reflect the effects of such change in par or stated value, split-up, combination
or other reclassification of Stock, or of such recapitalization, reorganization,
merger, amalgamation or consolidation and (ii) treat any securities which shall
be received by the Depositary in exchange for or upon conversion of or in
respect of the Stock as new deposited securities so received in exchange for or
upon conversion or in respect of such Stock.  In any such case the Depositary
may in its discretion, with the approval of the Company, execute and deliver
additional Receipts, or may call for the surrender of all outstanding Receipts
to be exchanged for new Receipts specifically describing such new deposited
securities.  Anything to the contrary herein notwithstanding, holders of
Receipts shall have the right from and after the effective date of any such
change in par or stated value, split-up, combination or other reclassification
of the Stock or any such recapitalization, reorganization, merger, amalgamation
or consolidation to surrender such Receipts to the Depositary with instructions
to convert, exchange or surrender the Stock represented thereby only into or
for, as the case may be, the kind and amount of shares of stock and other
securities and property and cash into which the Stock represented by such
Receipts might have been converted or

                                      15
<PAGE>

for which such Stock might have been exchanged or surrendered immediately
prior to the effective date of such transaction.

         SECTION 4.07.  Inspection of Reports.  The Depositary shall make
available for inspection by record holders of Receipts at the Depositary's
Office, and at such other places as it may from time to time deem advisable, any
reports and communications received from the Company which are received by the
Depositary as the holder of Stock.

         SECTION 4.08.  Lists of Record Holders of Receipts.  Promptly upon
request from time to time by the Company, the Depositary shall furnish to it a
list, as of a recent date, of the names, addresses and holdings of Depositary
Shares of all persons in whose names Receipts are registered on the books of the
Depositary.

                                   ARTICLE V

                    The Depositary, the Depositary's Agents,
                         the Registrar and the Company

         SECTION 5.01.  Maintenance of Offices, Agencies and Transfer Books by
the Depositary; Registrar.  The Depositary shall maintain at the Depositary's
Office facilities for the execution, delivery, registration and registration of
transfer, surrender and exchange of Receipts, and at the offices of the
Depositary's Agents, if any, facilities for the delivery, registration of
transfer, surrender and exchange of Receipts, all in accordance with the
provisions of this Deposit Agreement.

         The Depositary shall keep books at the Depositary's Office for the
registration and registration of transfer of Receipts, which books at all
reasonable times shall be open for inspection by the record holders of Receipts;
provided, that any such holder requesting to exercise such right shall certify
to the Depositary that such inspection shall be for a proper purpose reasonably
related to such person's interest as an owner of Depositary Shares evidenced by
the Receipts.

         The Depositary may close such books, at any time or from time to time,
when deemed expedient by it in connection with the performance of its duties
hereunder.

                                      16
<PAGE>

         The Depositary may, with the approval of the Company, appoint a
Registrar for registration of the Receipts or the Depositary Shares evidenced
thereby.  If the Receipts or the Depositary Shares evidenced thereby or the
Stock represented by such Depositary Shares shall be listed on the New York
Stock Exchange, the Depositary will appoint a Registrar (acceptable to the
Company) for registration of such Receipts or Depositary Shares in accordance
with any requirements of such Exchange.  Such Registrar (which may be the
Depositary if so permitted by the requirements of such Exchange) may be removed
and a substitute registrar appointed by the Depositary upon the request or with
the approval of the Company.  If the Receipts, such Depositary Shares or such
Stock are listed on one or more other stock exchanges, the Depositary will, at
the request of the Company, arrange such facilities for the delivery,
registration, registration of transfer, surrender and exchange of such Receipts,
such Depositary Shares or such Stock as may be required by law or applicable
stock exchange regulation.

         SECTION 5.02.  Prevention of or Delay in Performance by the
Depositary, the Depositary's Agents, the Registrar, the Transfer Agent or the
Company.  Neither the Depositary nor any Depositary's Agent nor any Registrar
nor any Transfer Agent nor the Company shall incur any liability to any holder
of any Receipt if by reason of any provision of any present or future law, or
regulation thereunder, of the United States of America or of any other
governmental authority or, in the case of the Depositary, the Depositary's Agent
or the Registrar, by reason of any provision, present or future, of the
Company's Certificate of Incorporation (including the Certificate) or by reason
of any act of God or war or other circumstance beyond the control of the
relevant party, the Depositary, the Depositary's Agent, the Registrar, the
Transfer Agent or the Company shall be prevented or forbidden from, or subjected
to any penalty on account of, doing or performing any act or thing which the
terms of this Deposit Agreement provide shall be done or performed; nor shall
the Depositary, any Depositary's Agent, any Registrar, any Transfer Agent or the
Company incur any liability to any holder of a Receipt (i) by reason of any
nonperformance or delay, caused as aforesaid, in the performance of any act or
thing which the terms of this Deposit Agreement provide shall or may be done or
performed, or (ii) by reason of any exercise of, or failure to exercise, any
discretion provided for in this Deposit Agreement except, in case of any such
exercise or failure to exercise

                                      17
<PAGE>

discretion not caused as aforesaid, if caused by the negligence or willful
misconduct of the party charged with such exercise or failure to exercise.

         SECTION 5.03.  Obligations of the Depositary, the Depositary's Agents,
the Registrar, the Transfer Agent and the Company.  Neither the Depositary nor
any Depositary's Agent nor any Registrar nor any Transfer Agent nor the Company
assumes any obligation or shall be subject to any liability under this Deposit
Agreement to holders of Receipts other than for its negligence or willful
misconduct.

         Neither the Depositary nor any Depositary's Agent nor any Registrar
nor any Transfer Agent nor the Company shall be under any obligation to appear
in, prosecute or defend any action, suit or other proceeding in respect of the
Stock, the Depositary Shares or the Receipts which in its opinion may involve it
in expense or liability unless indemnity satisfactory to it against all expense
and liability be furnished as often as may be required.

         Neither the Depositary nor any Depositary's Agent nor any Registrar
nor any Transfer Agent nor the Company shall be liable for any action or any
failure to act by it in reliance upon the written advice of legal counsel or
accountants, or information from any person presenting Stock for deposit, any
holder of a Receipt or any other person believed by it in good faith to be
competent to give such information.  The Depositary, any Depositary's Agent, any
Registrar, any Transfer Agent and the Company may each rely and shall each be
protected in acting upon any written notice, request, direction or other
document believed by it to be genuine and to have been signed or presented by
the proper party or parties.

         The Depositary and any Depositary's Agent shall not be responsible for
any failure to carry out any instruction to vote any of the shares of Stock or
for the manner or effect of any such vote made, as long as any such action or
non-action is in good faith.  The Depositary undertakes, and any Registrar and
Transfer Agent shall be required to undertake, to perform such duties and only
such duties as are specifically set forth in this Agreement, and no implied
covenants or obligations shall be read into this Agreement against the
Depositary, any Registrar or any Transfer Agent.  The Depositary will indemnify
the Company

                                      18
<PAGE>

against any liability which may arise out of acts performed or omitted by the
Depositary or its agents due to its or their negligence or bad faith.  The
Depositary, the Depositary's Agents, any Registrar and any Transfer Agent may
own and deal in any class of securities of the Company and its affiliates and
in Receipts.  The Depositary may also act as transfer agent or registrar of
any of the securities of the Company and its affiliates.

         SECTION 5.04.  Resignation and Removal of the Depositary; Appointment
of Successor Depositary.  The Depositary may at any time resign as Depositary
hereunder by notice of its election to do so delivered to the Company, such
resignation to take effect upon the appointment of a successor Depositary and
its acceptance of such appointment as hereinafter provided.

         The Depositary may at any time be removed by the Company by notice of
such removal delivered to the Depositary, such removal to take effect upon the
appointment of a successor Depositary and its acceptance of such appointment as
hereinafter provided.

         In case at any time the Depositary acting hereunder shall resign or be
removed, the Company shall, within 60 days after the delivery of the notice of
resignation or removal, as the case may be, appoint a successor Depositary,
which shall be a bank or trust company having its principal office in the United
States of America and having a combined capital and surplus of at least
$50,000,000.  If no successor Depositary shall have been so appointed and have
accepted appointment within 60 days after delivery of such notice, the resigning
or removed Depositary may petition any court of competent jurisdiction for the
appointment of a successor Depositary.  Every successor Depositary shall execute
and deliver to its predecessor and to the Company an instrument in writing
accepting its appointment hereunder, and thereupon such successor Depositary,
without any further act or deed, shall become fully vested with all the rights,
powers, duties and obligations of its predecessor and for all purposes shall be
the Depositary under this Deposit Agreement, and such predecessor, upon payment
of all sums due it and on the written request of the Company, shall execute and
deliver an instrument transferring to such successor all rights and powers of
such predecessor hereunder, shall duly assign, transfer and deliver all right,
title and interest in the Stock to such successor, and

                                      19
<PAGE>

shall deliver to such successor a list of the record holders of all
outstanding Receipts.  Any successor Depositary shall promptly mail notice of
its appointment to the record holders of Receipts.

         Any corporation into or with which the Depositary may be merged,
consolidated or converted shall be the successor of such Depositary without the
execution or filing of any document or any further act, and notice thereof shall
not be required hereunder.  Such successor Depositary may authenticate the
Receipts in the name of the predecessor Depositary or in the name of the
successor Depositary.

         SECTION 5.05.  Corporate Notices and Reports.  The Company agrees that
it will transmit to the record holders of Receipts, in each case at the
addresses furnished to it pursuant to Section 4.08, all notices and reports
(including without limitation financial statements) required by law, by the
rules of any national securities exchange upon which the Stock, the Depositary
Shares or the Receipts are listed or by the Company's Certificate of
Incorporation (including the Certificate) to be furnished by the Company to
holders of Receipts.  Such transmission will be at the Company's expense.

         SECTION 5.06.  Indemnification by the Company.
The Company shall indemnify the Depositary, any Depositary's Agent, any
Registrar and any Transfer Agent against, and hold each of them harmless from,
any loss, liability or expense (including the costs and expenses of defending
itself) which may arise out of (a) acts performed or omitted in connection with
this Agreement and the Receipts by (i) the Depositary, any Registrar, any
Transfer Agent or any of their respective agents (including any Depositary's
Agent), except for any liability arising out of negligence or bad faith on the
respective parts of any such person or persons, or (ii) the Company or any of
its agents, or (b) the offer, sale or registration of the Receipts or the Stock
pursuant to the provisions hereof.  The obligations of the Company set forth in
this Section 5.06 shall survive any succession of any Depositary, Registrar,
Transfer Agent or Depositary's Agent.

         SECTION 5.07.  Charges and Expenses.  The Company shall pay all
transfer and other taxes and governmental charges arising solely from the
existence of the depositary arrangements.  The

                                      20
<PAGE>

Company shall pay all charges of the Depositary in connection with the
initial deposit of the Stock and the initial issuance of the Depositary
Shares and any redemption of the Stock at the option of the Company.  All
other transfer and other taxes and governmental charges and fees for the
withdrawal of Stock upon surrender of Receipts shall be at the expense of
holders of Depositary Shares.  The Depositary's fee for the withdrawal of
Stock shall be at the rate of $_____ per 100 Depositary Receipts. If, at the
request of a holder of Receipts, the Depositary incurs charges or expenses
for which it is not otherwise liable hereunder, such holder will be liable
for such charges and expenses.  All other charges and expenses of the
Depositary and any Depositary's Agent hereunder and of any Registrar and
Transfer Agent (including, in each case, fees and expenses of counsel)
incident to the performance of their respective obligations hereunder will be
paid upon consultation and agreement between the Depositary and the Company
as to the amount and nature of such charges and expenses.  The Depositary
shall present its statement for charges and expenses to the Company once
every three months or at such other intervals as the Company and the
Depositary may agree.

                                   ARTICLE VI

                           Amendment and Termination

         SECTION 6.01.  Amendment.  The form of the Receipts and any provisions
of this Deposit Agreement may at any time and from time to time be amended by
agreement between the Company and the Depositary in any respect which they may
deem necessary or desirable; provided, however, that no such amendment (other
than any change in the fees of any Depositary, Registrar or Transfer Agent,
which shall go into effect not sooner than three months after notice thereof to
the record holders of the Receipts) which shall materially and adversely alter
the rights of the holders of Receipts shall be effective unless such amendment
shall have been approved by the record holders of at least a majority of the
Depositary Shares then outstanding.  Every holder of an outstanding Receipt at
the time any such amendment becomes effective shall be deemed, by continuing to
hold such Receipt, to consent and agree to such amendment and to be bound by the
Deposit Agreement as amended thereby.

                                      21
<PAGE>

         SECTION 6.02.  Termination.  This Agreement may be terminated by the
Company or the Depositary only after (i) all outstanding Depositary Shares shall
have been redeemed pursuant to Section 2.03 or (ii) there shall have been made a
final distribution in respect of the Stock in connection with any liquidation,
dissolution or winding up of the Company and such distribution shall have been
distributed to the holders of Depositary Shares pursuant to Section 4.01 or
4.02, as applicable.

         Upon the termination of this Deposit Agreement, the Company shall be
discharged from all obligations under this Deposit Agreement except for its
obligations to the Depositary, any Depositary's Agent, any Registrar and any
Transfer Agent under Sections 5.06 and 5.07.

                                   ARTICLE VII

                                  Miscellaneous

         SECTION 7.01.  Counterparts.  This Deposit Agreement may be executed
in any number of counterparts, and by each of the parties hereto on separate
counterparts, each of which counterparts, when so executed and delivered, shall
be deemed an original, but all such counterparts taken together shall constitute
one and the same instrument.

         SECTION 7.02.  Exclusive Benefit of Parties.  This Deposit Agreement
is for the exclusive benefit of the parties hereto, and their respective
successors hereunder, and shall not be deemed to give any legal or equitable
right, remedy or claim to any other person whatsoever.

         SECTION 7.03.  Invalidity of Provisions.  In case any one or more of
the provisions contained in this Deposit Agreement or in the Receipts should be
or become invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein or
therein shall in no way be affected, prejudiced or disturbed thereby.

         SECTION 7.04.  Notices.  Any and all notices to be given to the
Company hereunder or under the Receipts shall be in

                                      22
<PAGE>

writing and shall be deemed to have been duly given if personally delivered
or sent by mail or telegram or telex confirmed by letter, addressed to the
Company at 3 World Financial Center, New York, New York 10285, to the
attention of the Secretary, or at any other address of which the Company
shall have notified the Depositary in writing.

         Any and all notices to be given to the Depositary hereunder or under
the Receipts shall be in writing and shall be deemed to have been duly given if
personally delivered or sent by mail or by telegram or telex confirmed by
letter, addressed to the Depositary at the Depositary's Office, at
_________________, or at any other address of which the Depositary shall have
notified the Company in writing.

         Any and all notices to be given to any record holder of a Receipt
hereunder or under the Receipts shall be in writing and shall be deemed to have
been duly given if personally delivered or sent by mail or by telegram or telex
confirmed by letter, addressed to such record holder at the address of such
record holder as it appears on the books of the Depositary, or if such holder
shall have filed with the Depositary a written request that notices intended for
such holder be mailed to some other address, at the address designated in such
request.

         Delivery of a notice sent by mail or by telegram or telex shall be
deemed to be effected at the time when a duly addressed letter containing the
same (or a confirmation thereof in the case of a telegram or telex message) is
deposited, postage prepaid, in a post office letter box.  The Depositary or the
Company may, however, act upon any telegram or telex message received by it from
the other or from any holder of a Receipt, notwithstanding that such telegram or
telex message shall not subsequently be confirmed by letter or as aforesaid.

         SECTION 7.05.  Depositary's Agents.  Except as otherwise set forth
herein, the Depositary may from time to time appoint Depositary's Agents to act
in any respect for the Depositary for the purposes of this Deposit Agreement and
may at any time appoint additional Depositary's Agents and vary or terminate the
appointment of such Depositary's Agents.  The Depositary will notify the Company
of any such action.

                                      23
<PAGE>

         The Company has authorized the appointment of, and has requested the
Depositary to appoint hereunder, _________________, as transfer agent (the
"Transfer Agent") for the Depositary Shares.  The Depositary hereby appoints
____________ as Transfer Agent and Registrar for the Depositary Shares and
delegates to _____________ the duties of the Depositary hereunder customarily
performed by a transfer agent, a registrar and a depositary.  Without otherwise
affecting the liability of the Depositary hereunder, it is hereby agreed that if
_____________ shall have agreed in writing to be bound by all the terms and
conditions of this Deposit Agreement and to assume the obligations of the
Depositary hereunder to be performed by it, then in no event shall the
Depositary be liable for any acts or omissions of ____________ as Transfer
Agent, Registrar or Depositary's Agent with respect to the Depositary Shares.

         SECTION 7.06.  Holders of Receipts Are Parties.  The holders of
Receipts from time to time shall be parties to this Deposit Agreement and shall
be bound by all of the terms and conditions hereof and of the Receipts by
acceptance of delivery thereof.

         SECTION 7.07.  GOVERNING LAW.  THIS DEPOSIT AGREEMENT AND THE RECEIPTS
AND ALL RIGHTS HEREUNDER AND THEREUNDER AND PROVISIONS HEREOF AND THEREOF SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

         SECTION 7.08. Inspection of Deposit Agreement.  Copies of this Deposit
Agreement shall be filed with the Depositary and the Depositary's Agents and
shall be open to inspection during business hours at the Depositary's office and
the respective offices of the Depositary's Agents, if any, by any holder of a
Receipt.

                                      24
<PAGE>

         SECTION 7.09.  Headings.  The headings of articles and sections in
this Deposit Agreement and in the form of the Receipt set forth in Exhibit A
hereto have been inserted for convenience only and are not to be regarded as a
part of this Deposit Agreement or the Receipts or to have any bearing upon the
meaning or interpretation of any provision contained herein or in the Receipts.

         IN WITNESS WHEREOF, the Company and the Depositary have duly executed
this Agreement as of the day and year first above set forth, and all holders of
Receipts shall become parties hereto by and upon acceptance by them of delivery
of Receipts issued in accordance with the terms hereof.

                                            LEHMAN BROTHERS HOLDINGS INC.,

                                            By:
                                               ---------------------------

                                            _____________, as Depositary,

                                            By:
                                               ---------------------------

                                      25
<PAGE>

                                                                       EXHIBIT A

                             [FORM OF DEPOSITARY RECEIPT]

                                  DEPOSITARY RECEIPT
                                         FOR
                                  DEPOSITARY SHARES
                        EACH REPRESENTING A ONE-____ INTEREST
                        (SUBJECT TO ADJUSTMENT) IN A SHARE OF
                     ________________,  par value $1.00 per share
                                          OF
                             LEHMAN BROTHERS HOLDINGS INC
                (Incorporated under the laws of the State of Delaware)

                            ______________________________

No. ____________________          EACH DEPOSITARY SHARE REPRESENTS
                             A ONE-________ INTEREST
                             (SUBJECT TO ADJUSTMENT) IN A
                             SHARE OF_________________,
                             _______________________________
                             _______________________________

         1.   _______________, a __________ corporation, as Depositary (the
"Depositary"), hereby certifies that
____________________________________________________ is the registered owner of
____________ Depositary Shares ("Depositary Shares"), each Depositary Share
representing a one-____ (as such fraction may from time to time be adjusted as
provided in the Deposit Agreement, as defined below) interest in a share of
__________ (the "Stock") of Lehman Brothers Holdings Inc, a corporation duly
organized and existing under the laws of the State of Delaware (the "Company")
deposited with, and held by, the Depositary.  The rights, preferences and
limitations of the Stock are set forth in the Certificate of Designations
adopted by the Company's Board of Directors (the "Authorizing Resolutions"),
copies of which are on file at the Depositary's office at ____________.

         2.   THE DEPOSIT AGREEMENT.  Depositary Receipts (the "Receipts"), of
which this Receipt is one, are made available upon the terms and conditions set
forth in the Deposit Agreement, dated as of __________ (the "Deposit
Agreement"), among the Company, the Depositary and all holders from time to time
of Receipts.  The Deposit Agreement (copies of which are on file at the
Depositary's Office) sets forth the rights of holders of Receipts and the rights
and duties of the Depositary in respect

<PAGE>

                                                                               2

of the Stock deposited, and any and all money and other property from time to
time held thereunder.  The statements made in this Receipt are summaries of
certain provisions of the Deposit Agreement and are subject to the detailed
provisions thereof, to which reference is hereby made. The holder of this
Receipt from time to time shall be deemed to be a party to the Deposit
Agreement and shall be bound by, and entitled to all of the rights and
benefits under, all the terms and conditions hereof and of the Deposit
Agreement by acceptance of delivery of this Receipt.  Unless otherwise
expressly herein provided, all defined terms shall have the meanings ascribed
thereto in the Deposit Agreement.

         3.   REDEMPTION.  Wherever the Company shall be permitted and shall
elect, under the Certificate of Designation relating to the Stock (the
"Certificate"), to redeem shares of the Stock, it shall give the Depositary not
less than 40 nor more then 70 days' notice thereof.  The Depositary shall mail
notice of such redemption and the simultaneous redemption of the corresponding
Depositary Shares not less than 30 and not more than 60 days prior to the date
fixed for redemption to the holders of record of Receipts representing the
number of Depositary Shares to be redeemed.  Each such notice shall state:  (a)
the date of such proposed redemption; (b) the number of Depositary Shares to be
redeemed; (c) the redemption price (which shall include full cumulative
dividends thereon to the redemption date); (d) the place or places where
Receipts evidencing Depositary Shares are to be surrendered for payment of the
redemption price; and (e) that dividends in respect of the Stock represented by
the Depositary Shares to be redeemed will cease to accumulate at the close of
business on such redemption date.  In case less than all the outstanding
Depositary Shares are to be redeemed, the Depositary Shares to be so redeemed
shall be selected by lot or pro rata as may be determined by the Depositary to
be equitable.  From and after the date set for redemption, all dividends in
respect of the Depositary Shares so called for redemption shall cease to accrue,
such Depositary Shares shall no longer be deemed outstanding and all rights of
the holders of Receipts representing such Depositary Shares (except the right to
receive the redemption price) shall cease and terminate.  From and after the
redemption date, upon surrender in accordance with the redemption notice of the
Receipts representing any such Depositary Shares (properly endorsed or assigned
for transfer, if the Depositary shall so require), such Depositary Share shall
be redeemed by the Depositary at the redemption price per share equal to one-
________ (1/__th) of the redemption price per share paid in respect of the
shares of Stock plus any money or other property represented thereby.

         4.   TRANSFERS, SPLIT-UPS, COMBINATIONS.  This Receipt is transferable
on the books of the Depositary upon surrender of this Receipt to the Depositary,
properly endorsed or accompanied by a properly executed instrument of transfer,
and upon such

<PAGE>

                                                                              3

transfer the Depositary shall execute a new Receipt to or upon the order of the
person entitled thereto, as provided in the Deposit Agreement.  This Receipt may
be split into other Receipts or combined with other Receipts into one Receipt,
representing the same aggregate number of Depositary Shares as the Receipt or
Receipts surrendered.

         5.  SUSPENSION OF DELIVERY, TRANSFER, ETC.  The transfer or surrender
of this Receipt may be suspended during any period when the register of
stockholders of the Company is closed or if any such action is deemed necessary
or advisable by the Depositary, any agent of the Depositary, or the Company at
any time or from time to time because of any requirement of law or of any
government or governmental body or commission, or under any provision of the
Deposit Agreement.

         6.   PAYMENT OF TAXES OR OTHER GOVERNMENTAL CHARGES.  If any tax or
other government charge shall become payable by or on behalf of the Depositary
with respect to this Receipt, such tax (including transfer taxes, if any) or
governmental charge shall be payable by the holder hereof.  Transfer of this
Receipt may be refused until such payment is made, and any dividends, interest
payments or other distributions may be withheld or any part of or all the Stock
or other property represented by this Receipt and not theretofore sold may be
sold for the account of the holder thereof (after attempting by reasonable means
to notify such holder prior to such sale), and such dividends, interest payments
or other distributions or the proceeds of any such sale may be applied to any
payment of such tax or charge, the holder of this Receipt remaining liable for
any deficiency.

         7.   WARRANTY BY COMPANY.  The Company has warranted that the Stock,
when issued, will be validly issued, fully paid and nonassessable.

         8.   AMENDMENT.  The form of the Receipts and any provisions of the
Deposit Agreement may at any time and from time to time be amended by agreement
between the Company and the Depositary in any respect which they may deem
necessary or desirable; PROVIDED, HOWEVER, that no such amendment which shall
materially and adversely alter the rights of the holders of Receipts shall be
effective unless such amendment shall have been approved by the holders of at
least a majority of the Depositary Shares then outstanding.  A holder of a
Receipt at the time any such amendment so becomes effective shall be deemed, by
continuing to hold such Receipt, to consent and agree to such amendment and to
be bound by the Deposit Agreement as amended thereby.

         9.   CHARGES OF DEPOSITARY.  The Company will pay all transfer and
other taxes and governmental charges arising solely from the existence of the
depositary arrangements, and all charges of the Depositary in connection with
the initial deposit of the Stock and the initial issuance of the Depositary
Shares

<PAGE>

                                                                              4

and redemption of the Stock at the option of the Company.  All other transfer
and other taxes and other governmental charges shall be at the expense of
holders of Depositary Shares.  All other charges and expenses of the Depositary
and any agent of the Depositary will be paid in consultation and agreement
between the Depositary and the Company.

         10.  TITLE OF RECEIPTS.  This Receipt (and the Depositary Shares
evidenced hereby), when properly endorsed or accompanied by a properly executed
instrument of transfer, is transferable by delivery with the same effect as in
the case of a negotiable instrument; PROVIDED, HOWEVER, that until transfer of a
Receipt shall be registered on the books of the Depositary, the Depositary may,
notwithstanding any notice to the contrary, treat the record holder hereof at
such time as the absolute owner hereof for the purpose of determining the person
entitled to distributions of dividends or other distributions or to any notice
provided for in the Deposit Agreement, and for all other purposes.

         11.  DIVIDENDS AND DISTRIBUTIONS.  Whenever the Depositary receives
any cash dividend or other cash distribution on the Stock, the Depositary will,
subject to the provisions of the Deposit Agreement, make such distribution to
the Receipt holders as nearly as practicable in proportion to the number of
Depositary Shares held by them; PROVIDED, HOWEVER, that the amount distributed
will be reduced by any amounts required to be withheld by the Company or the
Depositary on account of taxes.  Other distributions received on the Stock may
be distributed to holders of Receipts as provided in the Deposit Agreement.

         12.  FIXING OF RECORD DATE.  Whenever any cash dividend or other cash
distribution shall become payable or any distribution other than cash shall be
made, or if rights, preferences or privileges shall at any time be offered, with
respect to Stock, or whenever the Depositary shall receive notice of any meeting
at which holders of Stock are entitled to vote or of which holders of Stock are
entitled to notice, the Depositary shall in each instance fix a record date
(which shall be the record date fixed by the Company with respect to the Stock),
for the determination of the holders of Receipts who shall be entitled to
receive such dividend, distribution, rights, preferences or privileges or the
net proceeds of the sale thereof, or to give instructions for the exercise of
voting rights at any such meeting, or who shall be entitled to notice of such
meeting.

         13.  VOTING RIGHTS.  Upon receipt of notice of any meeting at which
holders of Stock are entitled to vote, the Depositary shall, as soon as
practicable thereafter, mail to the record holders of Receipts a notice which
shall contain (i) such information as is contained in such notice of meeting and
(ii) a statement informing holders of Receipts that they may instruct the
Depositary as to the exercise of the voting rights pertaining

<PAGE>

                                                                              5

to the amount of Stock represented by their respective Depositary Shares and a
brief statement as to the manner in which such instructions may be given.  Upon
the written request of a holder of a Receipt on such record date, the Depositary
shall endeavor insofar as practicable to vote or cause to be voted the amount of
Stock represented by such Receipt in accordance with the instructions set forth
in such request.  In the absence of specific instructions from the holder of a
Receipt, the Depositary will abstain from voting (but, at its discretion, not
from appearing at any meeting with respect to such Stock unless directed to the
contrary by the holders of Receipts) to the extent of the Stock represented by
the Depositary Shares evidenced by such Receipt.

         14.  CHANGES AFFECTING DEPOSITED SECURITIES.  Upon any change in par
or stated value, split-up, combination or any other reclassification of the
Stock or upon any recapitalization, reorganization, merger, amalgamation or
consolidation affecting the Company or to which it is a party, or upon the sale
of all or substantially all the Company's assets, the Depositary may in its
discretion with the approval of the Company, and in such manner as the
Depositary may deem equitable, (i) make such adjustments in (x) the fraction of
an interest represented by one Depositary Share in one share of Stock and (y)
the ratio of the redemption price of a share of Stock, in each case as may be
necessary fully to reflect the effect of such change and (ii) treat any
securities which shall be received by the Depositary in exchange for or upon
conversion or in respect of the Stock as new deposited securities so received in
exchange for or upon conversion or in respect of such Stock. In any such case
the Depositary may in its discretion, with the approval of the Company, execute
and deliver additional Receipts, or may call for the surrender of outstanding
Receipts to be exchanged for new Receipts specifically describing such new
deposited securities.

         15.  LIABILITY AND OBLIGATIONS OF THE DEPOSITARY, THE DEPOSITARY'S
AGENTS OR THE COMPANY.  Neither the Depositary nor any Depositary's Agent nor
any Registrar nor the Company assumes any obligation or shall be subject to any
liability under this Deposit Agreement to any holder of any Receipt, other than
for its gross negligence or willful misconduct.  Neither the Depositary nor any
Depositary's Agent nor any Registrar nor the Company shall incur any liability
to any holder of any Receipt if by reason of any provision of any present or
future law or regulation thereunder of the United States of America or any other
governmental authority or, in the case of the Depositary, the Depositary's Agent
or the Registrar, by reason of any provision, present or future, of the
Company's Certificate of Incorporation (including the Certificate) or by reason
of any act of God or war or other circumstances beyond their control, the
Depositary, the  Depositary's Agent, the Registrar or the Company shall be
prevented or forbidden from doing or performing any act or thing which the terms
of this Deposit Agreement provide shall be done or performed; nor shall the
Depositary, any Depositary's

<PAGE>

                                                                              6

Agent, any Registrar or the Company incur any liability to any holder of a
Receipt by reason of nonperformance or delay, caused as aforesaid, in
performance of any act or thing which by the terms of the Deposit Agreement it
is provided shall or may be done or performed, or by reason of any exercise of,
or failure to exercise, any discretion provided for in the Deposit Agreement,
other than for its gross negligence or willful misconduct.  Neither the
Depositary nor any Depositary's Agent nor the Company assumes any obligation or
shall be subject to any liability under the Deposit Agreement to holders of
Receipts other than to use its best judgment and good faith in the performance
of such duties as are specifically set forth in the Deposit Agreement.  Neither
the Depositary nor any Depositary's Agent nor any Registrar nor the Company
shall be under any obligation to appear in, prosecute or defend any action, suit
or other proceeding in respect of the Stock, the Depositary Shares or the
Receipts, which in its opinion may involve it in expense or liability, unless
indemnity satisfactory to it against all expense and liability be furnished.
The Deposit Agreement contains various other exculpancy, indemnification and
related provisions, to which reference is hereby made.

         16.   RESIGNATION AND REMOVAL OF DEPOSITARY.  The Depositary may at
any time (a) resign by written notice of its election to do so delivered to the
Company, such resignation to take effect upon the appointment of a successor
Depositary and its acceptance of such appointment, or (b) be removed by the
Company effective upon the appointment of a successor Depositary and its
acceptance of such appointment.

         17.  TERMINATION OF DEPOSIT AGREEMENT.  The Deposit Agreement may be
terminated by the Company or the Depositary only upon or after the occurrence of
any of the following events:  (i) all outstanding Depositary Shares shall have
been redeemed or (ii) there shall have been made a final distribution in respect
of the Stock in connection with any liquidation, dissolution or winding up of
the Company and such distribution shall have been distributed to the holders of
Receipts.  Upon the termination of the Deposit Agreement, the Company shall be
discharged from all obligations thereunder except for its obligations to the
Depositary with respect to indemnification, charges and expenses.

         18.  GOVERNING LAW.  This Receipt and the Deposit Agreement and all
rights hereunder and thereunder and provisions hereof and thereof shall be
governed by and construed in accordance with the laws of the State of New York.

         This Receipt shall not be entitled to any benefits under the Deposit
Agreement or be valid or obligatory for any purpose unless this Receipt shall
have been executed manually by a duly authorized signatory of the Depositary or,
if a Registrar for the Receipts (other than the Depositary) shall have been
appointed, by facsimile by the Depositary provided this Receipt

<PAGE>

                                                                              7

is countersigned manually by the signature of a duly authorized signatory of
such Registrar.

         The corporation will furnish without charge to each stockholder who so
requests the powers, designations, preferences and rights of each class of stock
or series thereof and the qualifications, limitations or restrictions of such
preferences and/or rights.

Dated:                       ___________________,
                               as Depositary and Registrar

                             By ______________________________
                                       Authorized Officer

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