Document:

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                                                                     EXHIBIT 4.6

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                          FOREST CITY ENTERPRISES, INC.

                                       AND

                     -------------------------------------,
                           AS PURCHASE CONTRACT AGENT

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

                           PURCHASE CONTRACT AGREEMENT
                       ----------------------------------

                          DATED AS OF ___________, 2002

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                                TABLE OF CONTENTS

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RECITALS

ARTICLE ONE  DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
Section 101.  Definitions
Section 102.  Form of Documents Delivered to Purchase Contract Agent
Section 103.  Acts of Holders; Record Dates
Section 104.  Notices, etc. to Purchase Contract Agent and the Company
Section 105.  Notice to Holders; Waiver
Section 106.  Effect of Headings and Table of Contents
Section 107.  Successors and Assigns
Section 108.  Separability Clause
Section 109.  Benefits of Agreement
Section 110.  Governing Law
Section 111.  Legal Holidays
Section 112.  Counterparts
Section 113.  Inspection of Agreement

ARTICLE TWO  PURCHASE CONTRACT CERTIFICATE FORMS
Section 201.  Forms of Unit Certificates Generally
Section 202.  Form of Purchase Contract Agent's Certificate of Authentication

ARTICLE THREE  THE UNITS
Section 301.  Title and Terms; Denominations
Section 302.  Rights and Obligations Evidenced by the Unit Certificates
Section 303.  Execution, Authentication, Delivery and Dating
Section 304.  Temporary Unit Certificates
Section 305.  Registration; Registration of Transfer and Exchange
Section 306.  Mutilated, Destroyed, Lost and Stolen Unit Certificates
Section 307.  Persons Deemed Owners
Section 308.  Cancellation
Section 309.  Payments on the Units

ARTICLE FOUR  THE PLEDGED SECURITIES
Section 401.  Payments on the Pledged Securities
Section 402.  Transfer of Pledged Securities Upon Occurrence of Termination Event
Section 403.  Transfer of Pledged Securities Upon Early Settlement and Merger Early Settlement

ARTICLE FIVE  THE PURCHASE CONTRACTS
Section 501.  Purchase of Shares
Section 502.  Contract Fees
Section 503.  Deferral of Payment Dates for Contract Fees
Section 504.  Payment of Purchase Price
Section 505.  Issuance of the Shares
[Section 506. Adjustment of Settlement Rate]
[Section 507. Notice of Adjustments and Certain Other Events]
Section 508.  No Fractional Shares
Section 509.  Charges and Taxes
Section 510.  Termination Event; Notice
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[Section 511. Early Settlement]
[Section 512. Early Settlement Upon Merger]

ARTICLE SIX  REMEDIES
Section 601.  Unconditional Rights of Holders
Section 602.  Restoration of Rights and Remedies
Section 603.  Rights and Remedies Cumulative
Section 604.  Delay or Omission Not Waiver
Section 605.  Undertaking for Costs
Section 606.  Waiver of Stay or Extension Laws

ARTICLE SEVEN  THE PURCHASE CONTRACT AGENT
Section 701.  Certain Duties and Responsibilities
Section 702.  Notice of Default
Section 703.  Certain Rights of Purchase Contract Agent
Section 704.  Not Responsible for Recitals or Issuance of Units
Section 705.  May Hold Units
Section 706.  Money Held in Trust
Section 707.  Compensation and Reimbursement
Section 708.  Purchase Contract Agent Required; Eligibility
Section 709.  Resignation and Removal; Appointment of Successor
Section 710.  Acceptance of Appointment by Successor
Section 711.  Merger, Conversion, Consolidation or Succession to Business
Section 712.  Preservation of Information; Communications to Holders
Section 713.  No Obligations of Purchase Contract Agent
Section 714.  Tax Compliance

ARTICLE EIGHT  SUPPLEMENTAL AGREEMENTS
Section 801.  Supplemental Agreements Without Consent of Holders
Section 802.  Supplemental Agreements With Consent of Holders
Section 803.  Execution of Supplemental Agreements
Section 804.  Effect of Supplemental Agreements
Section 805.  Reference to Supplemental Agreements

ARTICLE NINE  CONSOLIDATION, MERGER, SALE OR CONVEYANCE
Section 901.  Covenant Not to Merge, Consolidate, Sell or Convey Property Except
Under Certain Conditions
Section 902.  Rights and Duties of Successor Corporation
Section 903.  Opinion of Counsel to Purchase Contract Agent

ARTICLE TEN  COVENANTS
Section 1001.  Performance Under Purchase Contracts
Section 1002.  Maintenance of Office or Agency
Section 1003.  Company to Reserve Shares
Section 1004.  Covenants as to Shares
Section 1005.  Statements of Officers of the Company as to Default

TESTIMONIUM  SIGNATURES

EXHIBIT A    Form of Unit Certificate
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EXHIBIT B    Form of Pledge Agreement
EXHIBIT C    Election to Settle Early

                                       iii
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         PURCHASE CONTRACT AGREEMENT, dated as of _____ __, 200_, between FOREST
CITY ENTERPRISES, INC., an Ohio corporation (the "Company"), and
__________________, a ___________ corporation, acting as Purchase Contract Agent
for the Holders of Units from time to time (the "Purchase Contract Agent").

                                    RECITALS

         The Company has duly authorized the execution and delivery of this
Agreement and the Unit Certificates evidencing the Units.

         All things necessary to make the Purchase Contracts, when the Unit
Certificates are executed by the Company and authenticated, executed on behalf
of the Holders and delivered by the Purchase Contract Agent, as in this
Agreement provided, the valid obligations of the Company and the Holders, and to
constitute these presents a valid agreement of the Company and the Holders, in
accordance with its terms, have been done.

                                   WITNESSETH:

         For and in consideration of the premises and the entering into of the
Purchase Contracts by the Holders thereof, it is mutually agreed as follows:

                                   ARTICLE ONE

                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

Section 101.  Definitions.

         For all purposes of this Agreement, except as otherwise expressly
provided or unless the context otherwise requires:

                           (a) the terms defined in this Article have the
                  meanings assigned to them in this Article and include the
                  plural as well as the singular; and

                           (b) the words "herein", "hereof" and "hereunder" and
                  other words of similar import refer to this Agreement as a
                  whole and not to any particular Article, Section or other
                  subdivision.

         "Act" has the meaning specified in Section 103.

         "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

         "Agreement" means this instrument as originally executed or as it may
from time to time be supplemented or amended by one or more agreements
supplemental hereto entered into pursuant to the applicable provisions hereof.

         "Average Trading Price" has the meaning specified in Section 501.

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         "Board of Directors" means the board of directors of the Company or a
duly authorized committee of that board.

         "Board Resolution" means one or more resolutions of the Board of
Directors, a copy of which has been certified by the Secretary or an Assistant
Secretary of the Company to have been duly adopted by the Board of Directors and
to be in full force and effect on the date of such certification and delivered
to the Purchase Contract Agent.

         "Business Day" means any day other than Saturday, Sunday or any other
day on which banking institutions in The City of New York are authorized or
obligated by law or executive order to be closed.

         "Cash Merger" has the meaning specified in Section 512.

         "Closing Price" has the meaning specified in Section 501.

         "Collateral Agent" means _____________, as Collateral Agent under the
Pledge Agreement, until a successor Collateral Agent shall have become such
pursuant to the applicable provisions of the Pledge Agreement, and thereafter
"Collateral Agent" shall mean the Person who is then the Collateral Agent
thereunder.

         "Company" means the Person designated as the "Company" in the first
paragraph of this instrument until a successor shall have become such, and
thereafter "Company" shall mean such successor.

         "Contract Fee" means, with respect to each Purchase Contract, a fee
payable by the Company, accruing on the Stated Amount, accruing from and
including the date of first issuance of any Units to but excluding the Share
Purchase Date and payable quarterly in arrears on each Quarterly Payment Date to
and including the Share Purchase Date at a rate per annum equal to the Contract
Fee Rate (and computed on the basis of a 360-day year of twelve 30-day months),
plus any additional fees accrued thereon pursuant to Section 503.

         "Contract Fee Rate" means ____%.

         "Corporate Trust Office" means the principal office of the Purchase
Contract Agent, at which at any particular time its corporate trust business
shall be administered, which office at the date hereof is located at __________.

         "Current Market Price" has the meaning specified in Section 506(a)(8).

         "Depositary" means a clearing agency registered under the Exchange Act
that is designated to act as Depositary for Global Units as contemplated by
Section 305.

         "Early Settlement" has the meaning set forth in Section 511.

         "Early Settlement Amount" has the meaning set forth in Section 511.

         "Early Settlement Date" has the meaning set forth in Section 511.

         "Early Settlement Rate" has the meaning set forth in Section 511.

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         "Exchange Act" means the Securities Exchange Act of 1934 or any statute
successor thereto, in each case as amended from time to time.

         "Expiration Date" has the meaning specified in Section 103.

         "Global Unit Certificate" means a Unit Certificate that evidences all
or part of the Units and is registered in the name of the Depositary or a
nominee thereof.

         "Guarantees" means the Company's guarantees of the Notes.

         "Holder" means a Person in whose name a Unit Certificate is registered
in the Unit Register; "Holder", when used with respect to any particular Unit
Certificate (or Unit), means a Person in whose name such Unit Certificate (or
the Unit Certificate evidencing such Unit) is registered in the relevant Unit
Register.

         "Indenture" means the Indenture, dated as of __________ __, ____, among
the Company and ______________, as Trustee, as the same may be amended or
supplemented from time to time with respect to the terms of the Notes in
accordance with the terms thereof.

         "Issuer Order" or "Issuer Request" means a written order or request
signed in the name of the Company by its Chairman of the Board, its Chief
Executive Officer, its President, its Chief Financial Officer, a Vice Chairman
or a Vice President, and by its Treasurer, an Assistant Treasurer, its
Controller, an Assistant Controller, its Secretary or an Assistant Secretary,
and delivered to the Purchase Contract Agent.

         "Merger Early Settlement" has the meaning set forth in Section 512.

         "Merger Early Settlement Date" has the meaning set forth in Section
512.

         "NYSE" has the meaning specified in Section 501.

         "Notes" means the ______________.

         "Officers' Certificate" means a certificate signed by the Chairman of
the Board, the Chief Executive Officer, the President, the Chief Financial
Officer, a Vice Chairman or a Vice President, and by the Treasurer, an Assistant
Treasurer, the Controller, an Assistant Controller, the Secretary or an
Assistant Secretary of the Company and delivered to the Purchase Contract Agent.

         "Opinion of Counsel" means an opinion in writing signed by legal
counsel, who may be an employee of or counsel to the Company.

         "Outstanding Units" means, as of the date of determination, all Units
evidenced by then Outstanding Unit Certificates, except, on or after the
Termination Date or Share Purchase Date, Units for which the underlying Pledged
Securities or the Class A Common Stock purchasable upon settlement of the
underlying Purchase Contracts, as the case may be, have been theretofore
deposited with the Purchase Contract Agent in trust for the Holders of such
Units; provided, however, that in determining whether the Holders of the
requisite number of Units have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, Units owned by the Company or
any Affiliate of the Company shall be disregarded and deemed not to be
outstanding, except that, in determining whether the Purchase Contract Agent
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Units which the Purchase Contract
Agent actually knows to be so owned shall be

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so disregarded. Units so owned which have been pledged in good faith may be
regarded as Outstanding Units if the pledgee establishes to the satisfaction of
the Purchase Contract Agent the pledgee's right so to act with respect to such
Units and that the pledgee is not the Company or any Affiliate of the Company.

         "Outstanding Unit Certificates" means, as of the date of determination,
all Unit Certificates theretofore authenticated, executed and delivered pursuant
to this Agreement, except:

                  (a) Unit Certificates theretofore canceled by the Purchase
         Contract Agent or delivered to the Purchase Contract Agent for
         cancellation; and

                  (b) Unit Certificates in exchange for or in lieu of which
         other Unit Certificates have been authenticated and delivered pursuant
         to this Agreement, other than any such Unit Certificate in respect of
         which there shall have been presented to the Purchase Contract Agent
         proof satisfactory to it that such Unit Certificate is held by a bona
         fide purchaser in whose hands the Units evidenced by such Unit
         Certificate are valid obligations of the Company.

         "Person" means any individual, corporation, limited liability company,
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

         "Pledge" means the pledge of the Pledged Securities under the Pledge
Agreement.

         "Pledge Agreement" means the Pledge Agreement, dated as of the date
hereof, among the Company, the Collateral Agent and the Purchase Contract Agent,
in its capacity as Purchase Contract Agent and as attorney-in-fact for the
Holders from time to time of the Units, the form of which is attached hereto as
Exhibit B, as the same may be amended from time to time in accordance with the
terms hereof and thereof.

         "Pledged Securities" has the meaning specified in the Pledge Agreement.

         "Predecessor Unit Certificate" of any particular Unit Certificate means
every previous Unit Certificate evidencing all or a portion of the rights and
obligations of the Holder under the Units evidenced thereby; and, for the
purposes of this definition, any Unit Certificate authenticated and delivered
under Section 306 in exchange for or in lieu of a mutilated, destroyed, lost or
stolen Unit Certificate shall be deemed to evidence the same rights and
obligations of the Holder as the mutilated, destroyed, lost or stolen Unit
Certificate.

         "Principal Agreements" means this Agreement (including the obligations
under the Purchase Contracts) and the Pledge Agreement.

         "Purchase Contract" means the obligation of the Company to sell and the
Holder of the related Unit to purchase Shares on the terms and subject to the
conditions set forth in Article Five hereof.

         "Purchase Contract Agent" means the Person named as the "Purchase
Contract Agent" in the first paragraph of this Agreement until a successor
Purchase Contract Agent shall have accepted an appointment as a successor
Purchase Contract Agent pursuant to the applicable provisions of this Agreement,
and thereafter "Purchase Contract Agent" shall mean the Person who is then the
Purchase Contract Agent hereunder.

         "Purchase Contract Settlement Fund" has the meaning specified in
Section 505.

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         "Quarterly Payment Date" means each _________, __________, __________
and __________ commencing _______ __, _____.

         "Record Date", when used with respect to any payment date, means the
Business Day next preceding such payment date.

         "Reorganization Event" has the meaning specified in Section 506(b).

         "Responsible Officer", when used with respect to the Purchase Contract
Agent, means any officer of the Purchase Contract Agent (a) assigned by the
Purchase Contract Agent to administer corporate trust matters and also means,
with respect to a particular corporate trust matter, any other officer to whom
such matter is referred because of his or her knowledge of and familiarity with
the particular subject and (b) who shall have direct responsibility for the
administration of this Agreement.

         "Senior Indebtedness" means indebtedness of the Company of any kind
unless the instrument under which such indebtedness is incurred expressly
provides that it is on parity with or subordinated in right of payment to the
Contract Fees.

         "Settlement Rate" has the meaning specified in Section 501.

         "Share Purchase Date" means ________ __, ____ or such earlier date on
which the Purchase Contract may be settled pursuant to Section 511 or Section
512.

         "Shares" means the [Class A Common Stock, par value $.33 1/3 per
share,] [Preferred Stock, Series __, without par value per share] of the
Company.

         "Stated Amount" means $______ per Unit.

         "Termination Date" means the date, if any, on which a Termination Event
occurs.

         "Termination Event" means the occurrence of any of the following events
at any time on or prior to the Share Purchase Date: (a) the entry by a court
having jurisdiction in the premises of (1) a decree or order for relief in
respect of the Company in an involuntary case or proceeding under any applicable
bankruptcy law or (2) a decree or order adjudging the Company a bankrupt or
insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company under any
applicable bankruptcy law, or appointing a custodian, receiver, liquidator,
assignee, trustee, sequestrator or other similar official of the Company or of
substantially all of the property of the Company, or ordering the winding up or
liquidation of the affairs of the Company, and the continuance of any decree or
order for relief or any such other decree or order unstayed and in effect for a
period of 90 consecutive days; or (b) the commencement by the Company of a
voluntary case or proceeding under any applicable bankruptcy law, or of any
other case or proceeding to be adjudicated a bankrupt or insolvent, or the
consent by the Company to the entry of a decree or order for relief in respect
of the Company in an involuntary case or proceeding under any applicable
bankruptcy law, or to the commencement of any bankruptcy or insolvency case or
proceeding against the Company, or the filing by the Company of a petition or
answer or consent seeking reorganization or relief under any applicable
bankruptcy law, or the consent by the Company to the filing of such petition or
to the appointment of or the taking possession by a custodian, receiver,
liquidator, assignee, trustee, sequestrator or similar official of the Company
or of substantially all or the property of the Company, or the making by the
Company of an assignment for the benefit of creditors, or the admission by the
Company in writing of its inability to pay its debts generally as they become
due, or the taking of corporate action by the Company in furtherance of any such
action.

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         "Threshold Appreciation Price" means $____ per Share.

         "TIA" means the Trust Indenture Act of 1939 or any statute successor
thereto, in each case as amended from time to time.

         "Trading Day" has the meaning specified in Section 501.

         "Underwriting Agreement" means the Underwriting Agreement dated _______
__, ____, among the Company, __________ and ____________, as representatives of
the Underwriters named therein.

         "Unit" means the rights to purchase Shares under a Purchase Contract,
together with ownership of the Notes or other Pledged Securities pledged to
secure the obligations owed to the Company under such Purchase Contract, and
subject to the pledge arrangements securing the foregoing obligations. The
Purchase Contracts and/or Pledged Securities constituting a part of any Units
are sometimes referred to herein as "underlying" such Units and are sometimes
herein said to "underlie" such Units.

         "Unit Certificate" means a certificate evidencing the rights and
obligations of a Holder in respect of the number of Units, as the case may be,
specified on such certificate.

         "Unit Register" and "Unit Registrar" have the respective meanings
specified in Section 305.

         "Vice President" means any vice president, whether or not designated by
a number or a word or words added before or after the title "vice president."

Section 102.  Form of Documents Delivered to Purchase Contract Agent.

         In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

         Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or Opinion of Counsel may be based, insofar as
it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.

         Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Agreement, they may, but need not, be consolidated and
form one instrument.

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Section 103.  Acts of Holders; Record Dates.

         (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Agreement to be given or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by agent duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Purchase Contract Agent and, where it is hereby expressly required, to
the Company. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the "Act" of the Holders
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Agreement and (subject to Section 701) conclusive in favor of
the Purchase Contract Agent and the Company, if made in the manner provided in
this Section.

         (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by
law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where such
execution is by a signer acting in a capacity other than his individual
capacity, such certificate or affidavit shall also constitute sufficient proof
of his authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may also be proved
in any other manner which the Purchase Contract Agent deems sufficient.

         (c) The ownership of Units shall be proved by the Unit Register.

         (d) Any request, demand, authorization, direction, notice, consent,
waiver or other Act of the Holder of any Unit shall bind every future Holder of
the same Unit and the Holder of every Unit Certificate evidencing such Unit
issued upon the registration of transfer thereof or in exchange therefor or in
lieu thereof in respect of anything done, omitted or suffered to be done by the
Purchase Contract Agent or the Company in reliance thereon, whether or not
notation of such action is made upon such Unit Certificate.

         (e) The Company may set any day as a record date for the purpose of
determining the Holders of Outstanding Units entitled to give, make or take any
request, demand, authorization, direction, notice, consent, waiver or other
action provided or permitted by this Agreement to be given, made or taken by
Holders of Units. If any record date is set pursuant to this paragraph, the
Holders of Outstanding Units on such record date, and no other Holders, shall be
entitled to take the relevant action, whether or not such Holders remain Holders
after such record date; provided that no such action shall be effective
hereunder unless taken on or prior to the applicable Expiration Date by Holders
of the requisite number of Outstanding Units on such record date. Nothing in
this paragraph shall be construed to prevent the Company from setting a new
record date for any action for which a record date has previously been set
pursuant to this paragraph (whereupon the record date previously set shall
automatically and with no action by any Person be cancelled and of no effect),
and nothing in this paragraph shall be construed to render ineffective any
action taken by Holders of the requisite number of Outstanding Units on the date
such action is taken. Promptly after any record date is set pursuant to this
paragraph, the Company, at its own expense, shall cause notice of such record
date, the proposed action by Holders and the applicable Expiration Date to be
given to the Purchase Contract Agent in writing and to each Holder of Units in
the manner set forth in Section 105.

         With respect to any record date set pursuant to this Section, the
Company may designate any date as the "Expiration Date" and from time to time
may change the Expiration Date to any earlier or later day; provided that no
such change shall be effective unless notice of the proposed new Expiration Date
is

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given to the Purchase Contract Agent in writing, and to each Holder of Units in
the manner set forth in Section 105, on or prior to the existing Expiration
Date. If an Expiration Date is not designated with respect to any record date
set pursuant to this Section, the Company shall be deemed to have initially
designated the 180th day after such record date as the Expiration Date with
respect thereto, subject to its right to change the Expiration Date as provided
in this paragraph. Notwithstanding the foregoing, no Expiration Date shall be
later than the 180th day after the applicable record date.

Section 104. Notices, etc. to Purchase Contract Agent and the Company.

         Any request, demand, authorization, direction, notice, consent, waiver
or other Act of Holders or other document provided or permitted by this
Agreement to be made upon, given or furnished to, or filed with,

                  (a) the Purchase Contract Agent by any Holder or by the
         Company shall be (unless otherwise herein expressly provided) made,
         given, furnished or filed in writing and personally delivered or
         mailed, first-class postage prepaid, or sent by facsimile to the
         Purchase Contract Agent's Corporate Trust Office, Attention:
         ____________, or at any other address previously furnished in writing
         by the Purchase Contract Agent to the Holders and the Company, and
         shall be deemed to have been duly given upon receipt by the Purchase
         Contract Agent, or

                  (b) the Company by the Purchase Contract Agent or by any
         Holder shall be sufficient for every purpose hereunder (unless
         otherwise herein expressly provided) if made, given, furnished or filed
         in writing and personally delivered or mailed, first-class postage
         prepaid, to the Company at __________________, _______________,
         _____________, _____________, Attention: _________, or at any other
         address previously furnished in writing by the Company to the Purchase
         Contract Agent.

Section 105. Notice to Holders; Waiver.

         Except as otherwise provided, where this Agreement provides for notice
to Holders of any event, such notice shall be sufficiently given (unless
otherwise herein expressly provided) if in writing and mailed, first-class
postage prepaid, to each Holder affected by such event, at his address as it
appears in the Unit Register, not later than the latest date, and not earlier
than the earliest date, prescribed for the giving of such notice. In any case
where notice to Holders is given by mail, neither the failure to mail such
notice nor any defect in any notice so mailed to any particular Holder shall
affect the sufficiency of such notice with respect to other Holders. Where this
Agreement provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall be filed with the Purchase Contract Agent, but such
filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

         In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to give such notice by mail,
then such notification as shall be made with the approval of the Purchase
Contract Agent shall constitute a sufficient notification for every purpose
hereunder.

Section 106. Effect of Headings and Table of Contents.

         The Article and Section headings herein and the Table of Contents are
for convenience only and shall not affect the construction hereof.

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Section 107. Successors and Assigns.

         All covenants and agreements in this Agreement by the Company shall
bind its successors and assigns, whether so expressed or not.

Section 108. Separability Clause.

         In case any provision in this Agreement or in the Units shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions hereof and thereof shall not in any way be affected or
impaired thereby.

Section 109. Benefits of Agreement.

         Nothing in this Agreement or in the Unit Certificates, express or
implied, shall give to any Person, other than the parties hereto and their
successors hereunder and the Holders, any benefits or any legal or equitable
right, remedy or claim under this Agreement. The Holders from time to time shall
be beneficiaries of this Agreement and shall be bound by all of the terms and
conditions hereof and of the Units evidenced by their Unit Certificates by their
acceptance of delivery thereof.

Section 110. Governing Law.

         THIS AGREEMENT AND THE UNITS SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS
OF LAWS PRINCIPLES THEREOF.

Section 111. Legal Holidays.

         In any case where any Quarterly Payment Date or the Share Purchase Date
shall not be a Business Day, then (notwithstanding any other provision of this
Agreement or of the Units) payment in respect of distributions or interest on or
principal of Pledged Securities or Contract Fees shall not be made, Purchase
Contracts shall not be performed and other actions described herein shall not
occur, but such payments shall be made, the Purchase Contracts shall be
performed and such other actions shall occur, as applicable, on the next
succeeding Business Day with the same force and effect as if made on such
Quarterly Payment Date or Share Purchase Date, as the case may be; provided,
that to the extent such payment is made on the next succeeding Business Day, no
distributions or interest shall accrue or be payable by the Company or any
Holder for the period from and after any such Quarterly Payment Date or Share
Purchase Date, as the case may be, to the date of payment or performance; except
that if such next succeeding Business Day is in the next succeeding calendar
year, such payment shall be made, the Purchase Contracts shall be performed or
such other action shall occur on the immediately preceding Business Day with the
same force and effect as if made on such Quarterly Payment Date or the Share
Purchase Date.

Section 112. Counterparts.

         This Agreement may be executed in any number of counterparts, each of
which, when so executed, shall be deemed an original, but all such counterparts
shall together constitute one and the same instrument.

                                       9
<PAGE>

Section 113. Inspection of Agreement.

         A copy of this Agreement shall be available at all reasonable times at
the Corporate Trust Office for inspection by any Holder.

                                   ARTICLE TWO

                       PURCHASE CONTRACT CERTIFICATE FORMS

Section 201. Forms of Unit Certificates Generally.

         Unit Certificates evidencing Units shall be in substantially the form
set forth in Exhibit A hereto, with such letters, numbers or other marks of
identification or designation and such legends or endorsements printed,
lithographed or engraved thereon as may be required by the rules of any
securities exchange on which the Units are listed or Depositary therefor, or as
may, consistently herewith, be determined by the officers of the Company
executing such Unit Certificates, as evidenced by their execution of the Unit
Certificates.

         The definitive Unit Certificates shall be printed, lithographed or may
be produced in any other manner, all as determined by the officers of the
Company executing the Unit Certificates, consistent with the provisions of this
Agreement, as evidenced by their execution thereof.

         Every Global Unit Certificate authenticated, executed and delivered
hereunder shall bear a legend in substantially the following form:

         THIS UNIT CERTIFICATE IS A GLOBAL UNIT CERTIFICATE WITHIN THE MEANING
         OF THE PURCHASE CONTRACT AGREEMENT HEREINAFTER REFERRED TO AND IS
         REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS UNIT
         CERTIFICATE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A UNIT
         CERTIFICATE REGISTERED, AND NO TRANSFER OF THIS UNIT CERTIFICATE IN
         WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER
         THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
         CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT.

Section 202. Form of Purchase Contract Agent's Certificate of Authentication.

         The form of the Purchase Contract Agent's certificate of authentication
for the Units shall be in substantially the form set forth on the form of the
Unit Certificates.

                                  ARTICLE THREE

                                    THE UNITS

Section 301. Title and Terms; Denominations.

         The aggregate number of Units evidenced by Unit Certificates
authenticated, executed on behalf of the Holders and delivered hereunder is
limited to _________ [(subject to increase up to a maximum of _______ to the
extent the over-allotment option of the underwriters under the Underwriting
Agreement is exercised)], except for Unit Certificates authenticated, executed
and delivered upon registration of transfer of, in exchange for, or in lieu of,
other Unit Certificates pursuant to Sections 304, 305, 306 or 805.

                                       10
<PAGE>

         Unit Certificates shall be issuable only in registered form and only in
denominations of a single Unit and any integral multiple thereof.

Section 302. Rights and Obligations Evidenced by the Unit Certificates.

         Each Unit Certificate shall evidence the number of Units specified
therein. Prior to the purchase, if any, of Shares under the Purchase Contracts,
the Units shall not entitle the Holders to any of the rights or privileges of a
holder of Shares by virtue of holding such Units, including, without limitation,
the right to vote or receive any dividends or other distributions or to consent
or to receive notice as shareholders in respect of the meetings of shareholders
or for the election of directors of the Company or for any other matter.

Section 303. Execution, Authentication, Delivery and Dating.

         Subject to the provisions of Section 309 hereof, upon the execution and
delivery of this Agreement, and at any time and from time to time thereafter,
the Company may deliver Unit Certificates executed by the Company to the
Purchase Contract Agent for authentication, execution on behalf of the Holders
and delivery, together with its Issuer Order for authentication of such Unit
Certificates, and the Purchase Contract Agent in accordance with such Issuer
Order shall authenticate, execute on behalf of the Holders and make such Unit
Certificates available for delivery.

         The Unit Certificates shall be executed on behalf of the Company by its
Chairman of the Board, its Chief Executive Officer, its President, its Chief
Financial Officer or one of its Vice Presidents, under its corporate seal
reproduced thereon attested by its Secretary or one of its Assistant
Secretaries. The signature of any of these officers on the Unit Certificates may
be manual or facsimile.

         Unit Certificates bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind
the Company, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Unit
Certificates or did not hold such offices at the date of such Unit Certificates.

         Each Unit Certificate shall be dated the date of its authentication.

         No Purchase Contract evidenced by a Unit Certificate shall be valid
until such Unit Certificate has been executed on behalf of the Holder by the
manual signature of an authorized signatory of the Purchase Contract Agent, as
such Holder's attorney-in-fact. Such signature by an authorized signatory of the
Purchase Contract Agent shall be conclusive evidence that the Holder of such
Unit Certificate has entered into the Purchase Contracts evidenced by such Unit
Certificate.

         No Unit Certificate shall be entitled to any benefit under this
Agreement or be valid or obligatory for any purpose unless there appears on such
Unit Certificate a certificate of authentication substantially in the form
provided for herein executed by an authorized signatory of the Purchase Contract
Agent by manual signature, and such certificate upon any Unit Certificate shall
be conclusive evidence, and the only evidence, that such Unit Certificate has
been duly authenticated and delivered hereunder.

Section 304. Temporary Unit Certificates.

         Pending the preparation of definitive Unit Certificates, the Company
shall execute and deliver (together with an Issuer Order) to the Purchase
Contract Agent, and the Purchase Contract Agent shall authenticate, execute on
behalf of the Holders, and deliver, in lieu of such definitive Unit
Certificates,

                                       11
<PAGE>

temporary Unit Certificates which are in substantially the form set forth in
Exhibit A hereto, with such letters, numbers or other marks of identification or
designation and such legends or endorsements printed or lithographed thereon as
may be required by the rules of any securities exchange on which the Units are
listed or Depositary therefor, or as may, consistently herewith, be determined
by the officers of the Company executing such Unit Certificates, as evidenced by
their execution of the Unit Certificates.

         If temporary Unit Certificates are issued, the Company will cause
definitive Unit Certificates to be prepared without unreasonable delay. After
the preparation of definitive Unit Certificates, the temporary Unit Certificates
shall be exchangeable for definitive Unit Certificates upon surrender of the
temporary Unit Certificates at the Corporate Trust Office, at the expense of the
Company and without charge to the Holder. Upon surrender for cancellation of any
one or more temporary Unit Certificates, the Company shall execute and deliver
to the Purchase Contract Agent, and the Purchase Contract Agent shall
authenticate, execute on behalf of the Holder, and deliver in exchange therefor,
one or more definitive Unit Certificates of authorized denominations and
evidencing a like number of Units, as the case may be, as the temporary Unit
Certificate or Unit Certificates so surrendered. Until so exchanged, the
temporary Unit Certificates shall in all respects evidence the same benefits and
the same obligations with respect to the Units evidenced thereby as definitive
Unit Certificates.

Section 305.  Registration; Registration of Transfer and Exchange.

         The Purchase Contract Agent shall keep at the Corporate Trust Office
registers (the registers maintained in such office being herein referred to as
the "Unit Registers") in which, subject to such reasonable regulations as it may
prescribe, the Purchase Contract Agent shall provide for the registration of
Unit Certificates evidencing the Units and of transfers of Unit Certificates
evidencing Units (the Purchase Contract Agent, in such capacity, the "Unit
Registrar"). Upon request from any Trustee or the Company, the Purchase Contract
Agent shall furnish to such requesting party a copy of the Unit Register for the
Unit Certificates evidencing the Units as promptly as practicable.

         Upon surrender for registration of transfer of any Unit Certificate at
the Corporate Trust Office, the Company shall execute and deliver to the
Purchase Contract Agent, and the Purchase Contract Agent shall authenticate,
execute on behalf of the designated transferee or transferees, and deliver, in
the name of the designated transferee or transferees, one or more new Unit
Certificates evidencing a like number of Units.

         At the option of the Holder, Unit Certificates may be exchanged for
other Unit Certificates evidencing a like number of Units upon surrender of the
Unit Certificates to be exchanged at the Corporate Trust Office. Whenever any
Unit Certificates are so surrendered for exchange, the Company shall execute and
deliver to the Purchase Contract Agent, and the Purchase Contract Agent shall
authenticate, execute on behalf of the Holder, and deliver the Unit Certificates
which the Holder making the exchange is entitled to receive.

         All Unit Certificates issued upon any registration of transfer or
exchange of a Unit Certificate shall evidence the ownership of the same number
of Units, and be entitled to the same benefits and subject to the same
obligations, under the Principal Agreements as the Units, evidenced by the Unit
Certificate surrendered upon such registration of transfer or exchange.

         Every Unit Certificate presented or surrendered for registration of
transfer or for exchange shall (if so required by the Purchase Contract Agent)
be duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Purchase Contract Agent duly executed, by
the Holder thereof or his attorney duly authorized in writing.

                                       12
<PAGE>

         No service charge shall be made for any registration of transfer or
exchange of a Unit Certificate, but the Company and the Purchase Contract Agent
may require payment from the Holder of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Unit Certificates, other than any
exchanges pursuant to Sections 304, 306 and 805 not involving any transfer.

         Notwithstanding the foregoing, the Company shall not be obligated to
execute and deliver to the Purchase Contract Agent, and the Purchase Contract
Agent shall not be obligated to authenticate, execute on behalf of the Holder
and deliver any Unit Certificate in respect of a Unit Certificate presented or
surrendered for registration of transfer or for exchange on or after the Share
Purchase Date or the Termination Date. In lieu of delivery of a new Unit
Certificate, upon satisfaction of the applicable conditions specified above in
this Section and receipt of appropriate registration or transfer instructions
from such Holder, the Purchase Contract Agent shall (a) if the Share Purchase
Date has occurred, deliver the Shares issuable in respect of the Purchase
Contracts forming a part of the Units evidenced by such Unit Certificate, or (b)
if a Termination Event shall have occurred on or prior to the Share Purchase
Date, transfer the liquidation or principal amount of the Pledged Securities
evidenced thereby, in each case subject to the applicable conditions and in
accordance with the applicable provisions of Article Five hereof.

         The provisions of Clauses (a), (b), (c) and (d) below shall apply only
to Global Unit Certificates:

                  (a) Each Global Unit Certificate authenticated and executed on
         behalf of the Holders under this Agreement shall be registered in the
         name of the Depositary designated for such Global Unit Certificate or a
         nominee thereof and delivered to such Depositary or a nominee thereof
         or custodian therefor, and each such Global Unit Certificate shall
         constitute a single Unit Certificate for all purposes of this
         Agreement.

                  (b) Notwithstanding any other provision in this Agreement, no
         Global Unit Certificate may be exchanged in whole or in part for Unit
         Certificates registered, and no transfer of a Global Unit Certificate
         in whole or in part may be registered, in the name of any Person other
         than the Depositary for such Global Unit Certificate or a nominee
         thereof unless (i) such Depositary (x) has notified the Company that it
         is unwilling or unable to continue as Depositary for such Global Unit
         Certificate or (y) has ceased to be a clearing agency registered under
         the Exchange Act or (ii) there shall have occurred and be continuing a
         default by the Company in respect of its obligations under one or more
         Principal Agreements.

                  (c) Subject to Clause (b) above, any exchange of a Global Unit
         Certificate for other Unit Certificates may be made in whole or in
         part, and all Unit Certificates issued in exchange for a Global Unit
         Certificate or any portion thereof shall be registered in such names as
         the Depositary for such Global Unit Certificate shall direct.

                  (d) Every Unit Certificate authenticated and delivered upon
         registration of transfer of, in exchange for or in lieu of a Global
         Unit Certificate or any portion thereof, whether pursuant to this
         Section, Section 304, 306 or 805 or otherwise, shall be authenticated,
         executed on behalf of the Holders and delivered in the form of, and
         shall be, a Global Unit Certificate, unless such Unit Certificate is
         registered in the name of a Person other than the Depositary for such
         Global Unit Certificate or a nominee thereof.

Section 306.  Mutilated, Destroyed, Lost and Stolen Unit Certificates.

                                       13
<PAGE>

         If any mutilated Unit Certificate is surrendered to the Purchase
Contract Agent, the Company shall execute and deliver to the Purchase Contract
Agent, and the Purchase Contract Agent shall authenticate, execute on behalf of
the Holder, and deliver in exchange therefor, a new Unit Certificate, evidencing
the same number of Units and bearing a number not contemporaneously outstanding.

         If there shall be delivered to the Company and the Purchase Contract
Agent (a) evidence to their satisfaction of the destruction, loss or theft of
any Unit Certificate, and (b) such security or indemnity as may be required by
them to save each of them and any agent of any of them harmless, then, in the
absence of notice to the Company or the Purchase Contract Agent that such Unit
Certificate has been acquired by a bona fide purchaser, the Company shall
execute and deliver to the Purchase Contract Agent, and the Purchase Contract
Agent shall authenticate, execute on behalf of the Holder, and deliver to the
Holder, in lieu of any such destroyed, lost or stolen Unit Certificate, a new
Unit Certificate, evidencing the same number of Units and bearing a number not
contemporaneously outstanding.

         Notwithstanding the foregoing, the Company shall not be obligated to
execute and deliver to the Purchase Contract Agent, and the Purchase Contract
Agent shall not be obligated to authenticate, execute on behalf of the Holder,
and deliver to the Holder, on or after the Share Purchase Date or the
Termination Date, a Unit Certificate in respect of any mutilated, destroyed,
lost or stolen Unit Certificate. In lieu of delivery of a new Unit Certificate,
upon satisfaction of the applicable conditions specified above in this Section
and receipt of appropriate registration or transfer instructions from such
Holder, the Purchase Contract Agent shall (a) if the Share Purchase Date has
occurred, deliver the Shares issuable in respect of the Purchase Contracts
forming a part of the Units evidenced by such Unit Certificate, or (b) if a
Termination Event shall have occurred on or prior to the Share Purchase Date,
transfer the liquidation or principal amount of the Pledged Securities evidenced
thereby, in each case subject to the applicable conditions and in accordance
with the applicable provisions of Article Five hereof.

         Upon the issuance of any new Unit Certificate under this Section, the
Company and the Purchase Contract Agent may require the payment by the Holder of
a sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other expenses (including the fees and
expenses of the Purchase Contract Agent) connected therewith.

         Every new Unit Certificate issued pursuant to this Section in lieu of
any destroyed, lost or stolen Unit Certificate shall constitute an original
additional contractual obligation of the Company and of the Holder, whether or
not the destroyed, lost or stolen Unit Certificate shall be at any time
enforceable by anyone, and shall be entitled to all the benefits and be subject
to all the obligations of the Principal Agreements equally and proportionately
with any and all other Unit Certificates delivered hereunder.

         The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
settlement of mutilated, destroyed, lost or stolen Unit Certificates.

Section 307. Persons Deemed Owners.

         Prior to due presentment of a Unit Certificate for registration of
transfer, the Company and the Purchase Contract Agent, and any agent of the
Company or the Purchase Contract Agent, may treat the Person in whose name such
Unit Certificate is registered as the owner of the Units evidenced thereby, for
the purpose of receiving payments of Contract Fees, distributions or interest on
the Pledged Securities and performance of the underlying Purchase Contracts and
for all other purposes whatsoever, whether or not the payment of Contract Fees,
distributions or interest on the Pledged Securities payable in respect of the
Purchase Contracts constituting a part of the Units evidenced thereby shall be
overdue and

                                       14
<PAGE>

notwithstanding any notice to the contrary, and neither the Company nor the
Purchase Contract Agent, nor any agent of the Company or the Purchase Contract
Agent, shall be affected by notice to the contrary.

         Notwithstanding the foregoing, with respect to any Global Unit
Certificate, nothing herein shall prevent the Company, the Purchase Contract
Agent or any agent of the Company or the Purchase Contract Agent, from giving
effect to any written certification, proxy or other authorization furnished by
any Depositary (or its nominee), as a Holder, with respect to such Global Unit
Certificate or impair, as between such Depositary and owners of beneficial
interests in such Global Unit Certificate, the operation of customary practices
governing the exercise of rights of such Depositary (or its nominee) as Holder
of such Global Unit Certificate.

Section 308. Cancellation.

         All Unit Certificates surrendered for delivery of Shares on or after
the Share Purchase Date, transfer of Pledged Securities after the occurrence of
a Termination Event or registration of transfer or exchange shall, if
surrendered to any Person other than the Purchase Contract Agent, be delivered
to the Purchase Contract Agent and, if not already canceled, shall be promptly
canceled by it. The Company may at any time deliver to the Purchase Contract
Agent for cancellation any Unit Certificates previously authenticated, executed
and delivered hereunder which the Company may have acquired in any manner
whatsoever, and all Unit Certificates so delivered shall, upon Issuer Order, be
promptly canceled by the Purchase Contract Agent. No Unit Certificates shall be
authenticated, executed on behalf of the Holder and delivered upon transfer of,
in exchange for or in lieu of any Unit Certificates canceled as provided in this
Section, except as expressly permitted by this Agreement. All canceled Unit
Certificates held by the Purchase Contract Agent shall be disposed of as
directed by Issuer Order; [provided, however, that the Purchase Contract Agent
shall not be required to destroy such Unit Certificates].

         If the Company or any Affiliate of the Company shall acquire any Unit
Certificate, such acquisition shall not operate as a cancellation of such Unit
Certificate unless and until such Unit Certificate is delivered to the Purchase
Contract Agent canceled or for cancellation.

Section 309. Payments on the Units.

         All amounts payable to Holders as required by Section 401, will be
payable at the office of the Purchase Contract Agent in The City of New York
maintained for that purpose or, at the option of the Company, by check mailed to
the address of the Person entitled thereto at such address as it appears on the
relevant Unit Register on the Record Date; provided, however, that for so long
as any Units are evidenced by Global Certificates, the Purchase Contract Agent
will pay each such amount payable in respect of such Units by wire transfer in
same-day funds, no later than 2:00 p.m., New York City time, on the Business Day
such amount is received by the Purchase Contract Agent from the Collateral Agent
or the Company (or, if such amount is received by the Purchase Contract Agent
after 1:00 p.m., New York City time, on a Business Day or on a day that is not a
Business Day, no later than 10:00 a.m., New York City time, on the next
succeeding Business Day), to the Depositary, to the account or accounts
designated by it for such purpose.

                                       15
<PAGE>

                                  ARTICLE FOUR

                             THE PLEDGED SECURITIES

Section 401. Payments on the Pledged Securities.

         Interest on any Pledged Security that is paid on any Quarterly Payment
Date shall, subject to receipt thereof by the Purchase Contract Agent from the
Collateral Agent as provided by the terms of the Pledge Agreement, be paid to
the Person in whose name the Unit Certificate (or one or more Predecessor Unit
Certificates) of which such Pledged Security is a part is registered at the
close of business on the Record Date next preceding such Quarterly Payment Date.

         Each Unit Certificate evidencing Pledged Securities delivered under
this Agreement upon registration of transfer of or in exchange for or in lieu of
any other Unit Certificate shall carry the rights to interest accrued and
unpaid, and to accrue, which were carried by the Pledged Securities underlying
such other Unit Certificate.

         In the case of any Unit with respect to which Early Settlement of the
underlying Purchase Contract is effected on an Early Settlement Date after any
Record Date and on or prior to the next succeeding Quarterly Payment Date,
interest on the Pledged Securities underlying such Unit otherwise payable on
such Quarterly Payment Date shall be payable on such Quarterly Payment Date
notwithstanding such Early Settlement, and such interest shall, subject to
receipt thereof by the Purchase Contract Agent, be paid to the Person in whose
name the Unit Certificate (or one or more Predecessor Unit Certificates) is
registered at the close of business on the Record Date. Except as otherwise
expressly provided in the immediately preceding sentence, in the case of any
Unit with respect to which Early Settlement of the underlying Purchase Contract
is effected on an Early Settlement Date, interest on the related Pledged
Securities that would otherwise be payable after the Early Settlement Date shall
not be payable hereunder to the Holder of such Security.

Section 402. Transfer of Pledged Securities Upon Occurrence of Termination
             Event.

         Upon the occurrence of a Termination Event and the transfer of the
Pledged Securities underlying each Holder's Units to the Purchase Contract Agent
pursuant to the terms of the Pledge Agreement, the Purchase Contract Agent shall
request transfer instructions with respect to such Pledged Securities from such
Holder by written request mailed to such Holder at his address as it appears in
the relevant Unit Register and shall give notice of such Termination Event to
the Collateral Agent. Thereafter, upon surrender to the Purchase Contract Agent
of a Unit Certificate evidencing a Holder's Units, with transfer instructions in
proper form for transfer of the underlying Pledged Securities, the Purchase
Contract Agent shall transfer the Pledged Securities evidenced by such Unit
Certificate to such Holder in accordance with such instructions; provided,
however, that if the Pledged Securities are to be transferred to a Person other
than the Person in whose name such Unit Certificate is registered, no such
transfer shall be made unless the Person requesting the transfer has paid any
transfer and other taxes required by reason of such transfer to a Person other
than the registered Holder of such Unit Certificate or has established to the
satisfaction of the Company that such tax either has been paid or is not
payable. Until the foregoing conditions to transfer any of the Pledged
Securities underlying any Units has been met, the Purchase Contract Agent shall
hold such Pledged Securities as custodian for the Holder of such Units.

         If upon a Termination Event any Holder of Units would, after satisfying
the foregoing conditions, otherwise be entitled to receive (or have transferred
to such Holder's designee) treasury securities of any series having a principal
amount that is not an integral multiple of $1,000, such Holder shall instead be
entitled to receive (or have transferred to such Holder's designee) treasury
securities of such series in a

                                       16
<PAGE>

principal amount equal to the next lower integral multiple of $1,000 plus a
portion of the net proceeds from the sale of treasury securities of such series
contemplated by the succeeding sentence representing such Holder's interest
therein. As soon as practicable after transfer to the Purchase Contract Agent of
the Pledged Securities as provided in the Pledge Agreement, the Purchase
Contract Agent shall, at the direction and on behalf of all Holders who, by
virtue of the preceding sentence, will not be entitled to a portion of the
treasury securities of any series to which they would otherwise be entitled,
aggregate and sell the treasury securities of such series representing such
portion to or through one or more U.S. government securities dealers at then
prevailing prices, deduct from the proceeds of such sales all commissions and
other out-of-pocket transaction costs incurred in connection with such sales
and, until the net proceeds therefrom have been distributed to the Holders
entitled thereto or their designees, hold such proceeds in trust for such
Holders.

Section 403. Transfer of Pledged Securities Upon Early Settlement and Merger
Early Settlement.

         (a) In the event of Early Settlement as described in Section 511, the
Pledged Securities with respect to all Units which have been presented for
settlement shall be released by the Collateral Agent to the Purchase Contract
Agent who shall deliver the Pledged Securities to the Holder upon satisfaction
of the conditions precedent described in Section 511.

         (b) In the event of a Cash Merger as described in Section 512, the
Pledged Securities with respect to all Units which have been presented for
payment on the Merger Early Settlement Date shall be released by the Collateral
Agent to the Purchase Contract Agent who shall deliver the Pledged Securities to
the Unit Holder upon satisfaction of the conditions precedent described in
Section 512.

                                  ARTICLE FIVE

                             THE PURCHASE CONTRACTS

Section 501. Purchase of Shares.

         Each Holder of a Unit Certificate, by its acceptance thereof, agrees
that it has entered into and shall be bound by the underlying Purchase Contract
the terms and conditions of which are set forth in this Article Five. Each
Purchase Contract shall obligate the Holder of such Unit to purchase, and the
Company to sell, on the Share Purchase Date, at a price equal to the Stated
Amount, a number of Shares of equal to the Settlement Rate, unless, on or prior
to the Share Purchase Date, there shall have occurred a Termination Event. The
"Settlement Rate" is equal to [(a) if the Average Trading Price (as defined
below) is greater than or equal to the Threshold Appreciation Price, _______ of
a Share per Purchase Contract, (b) if the Average Trading Price is less than the
Threshold Appreciation Price but is greater than the Stated Amount, a fractional
share of a Share per Purchase Contract equal to the Stated Amount divided by the
Average Trading Price (rounded upward or downward to the nearest 1/10,000th of a
share or, if there is not a nearest 1/10,000th of a share, to the next lower
1/10,000th of a share) and (c) if the Average Trading Price is less than or
equal to the Stated Amount, one Share per Purchase Contract, in each case
subject to adjustment as provided in Section 506] [provide alternative for
Preferred Stock]. As provided in Section 508, no fractional Shares will be
issued upon settlement of Purchase Contracts.

         [The "Average Trading Price" means the average of the Closing Prices
per Share on each of the twenty consecutive Trading Days ending on the last
Trading Day immediately preceding the Share Purchase Date. The "Closing Price"
of the Shares on any date of determination means the closing sale price of the
Shares as listed on the New York Stock Exchange ( "NYSE") on such date or, if
the Shares are not listed on NYSE on any such date, as reported in the composite
transactions for the principal United States securities market on which the
Shares are so listed or, if the Shares are not so listed on a

                                       17
<PAGE>

United States national or regional securities market, the last quoted price or
if the shares are not so quoted in a United States national or regional
securities market, the last listed bid price for the Shares in the
over-the-counter market as reported by the National Quotation Bureau or similar
organization or, if such bid price is not available, the market value of the
Shares on such date as determined by a nationally recognized investment banking
firm retained for this purpose by the Company. A "Trading Day" means a day on
which the Shares (A) are not suspended from trading on any national or regional
securities exchange or association or over-the-counter market at the close of
business and (B) have traded at least once on the national or regional
securities exchange or association or over-the-counter market that is the
primary market for the trading of the Shares.]

         Each Holder of a Unit Certificate evidencing Units, by its acceptance
thereof, irrevocably authorizes the Purchase Contract Agent to enter into and
perform the underlying Purchase Contracts on its behalf as its attorney-in-fact,
agrees to be bound by the terms and provisions thereof, covenants and agrees to
perform its obligations under such Purchase Contracts, consents to the
provisions of the Principal Agreements, irrevocably authorizes the Purchase
Contract Agent to enter into the Pledge Agreement on its behalf as its
attorney-in-fact, and consents to and agrees to be bound by the Pledge of the
Pledged Securities underlying such Units pursuant to the Pledge Agreement. Each
Holder of Units, by its acceptance thereof, further irrevocably covenants and
agrees that unless such Holder satisfied its obligations to the Company under
the Purchase Contracts underlying such Units as provided in Section 504, then to
the extent and in the manner provided in Section 504 and the Pledge Agreement,
but subject to the terms thereof, payments in respect of all or a portion of the
principal of or proceeds from the Pledged Securities on the Share Purchase Date
shall be paid by the Collateral Agent to the Company in satisfaction of such
Holder's obligations under such Purchase Contract and such Holder shall acquire
no right, title or interest in such payments.

         Upon registration of transfer of a Unit Certificate, the transferee
shall be bound (without the necessity of any other action on the part of such
transferee) by the terms of the Purchase Contracts evidenced thereby and by the
Pledge Agreement and the transferor shall be released from all such obligations
evidenced by the Unit Certificate so transferred. The Company covenants and
agrees, and each Holder of a Unit Certificate, by its acceptance thereof,
likewise covenants and agrees, to be bound by the provisions of this paragraph.

Section 502. Contract Fees.

         Subject to Section 503, the Company shall pay, on each Quarterly
Payment Date, the Contract Fees payable in respect of each Purchase Contract to
the Person in whose name the Unit Certificate (or one or more Predecessor Unit
Certificates) evidencing such Purchase Contract is registered at the close of
business on the Record Date next preceding such Quarterly Payment Date. The
Contract Fees will be payable at the office of the Purchase Contract Agent in
The City of New York maintained for that purpose or, at the option of the
Company, by check mailed to the address of the Person entitled thereto at such
address as it appears on the Unit Register.

         Upon the occurrence of a Termination Event, the Company's obligation to
pay Contract Fees (including any accrued or deferred Contract Fees) shall cease.

         Each Unit Certificate delivered under this Agreement upon registration
of transfer of, in exchange for or in lieu of any other Unit Certificate shall
carry the rights to receive accrued and unpaid Contract Fees that were carried
by the Purchase Contracts evidenced by such other Unit Certificate.

         Subject to Sections 511 and 512, in the case of any Unit with respect
to which Early Settlement of the underlying Purchase Contract is effected on an
Early Settlement Date after any Record Date and on or

                                       18
<PAGE>

prior to the next succeeding Quarterly Payment Date, Contract Fees, if any,
otherwise payable on such Quarterly Payment Date shall be payable on such
Quarterly Payment Date notwithstanding such Early Settlement, and such Contract
Fees shall be paid to the Person in whose name the Unit Certificate evidencing
such Unit (or one or more Predecessor Unit Certificates) is registered at the
close of business on such Record Date. Except as otherwise expressly provided in
the immediately preceding sentence, the Company shall not be obligated to pay
Contract Fees from and after the Early Settlement Date in respect of any Unit as
to which an Early Settlement has been effected.

         The Company's obligations with respect to Contract Fees are
subordinated and junior in right of payment to the Company's obligations under
any Senior Indebtedness.

Section 503. Deferral of Payment Dates for Contract Fees.

         The Company shall have the right, at any time prior to the Share
Purchase Date, to defer the payment of any or all of the Contract Fees otherwise
payable on any Quarterly Payment Date, but only if the Company shall give the
Holders and the Purchase Contract Agent written notice of its election to defer
such payment (specifying the amount to be deferred) at least ten Business Days
prior to the earlier of (i) the next succeeding Quarterly Payment Date or (ii)
the date the Company is required to give notice of the Record Date or Quarterly
Payment Date with respect to payment of such Contract Fees to NYSE or other
applicable self-regulatory organization or to Holders of the Securities, but in
any event not less than one Business Day prior to such date. Any Contract Fees
so deferred shall bear additional Contract Fees thereon at the rate of _____%
annum (computed on the basis of a 360-day year of twelve 30-day months),
compounding on each succeeding Quarterly Payment Date, until paid in full.
Contract Fees so deferred (and additional Contract Fees accrued thereon) shall
be due on the next succeeding Quarterly Payment Date except to the extent that
payment is deferred pursuant to this Section. No Contract Fees may be deferred
to a date that is after the Final Settlement Date or, with respect to any
particular Purchase Contract, Early Settlement thereof. If the Purchase
Contracts are terminated upon the occurrence of a Termination Event, the
Holder's right to receive Contract Fees or deferred Contract Fees (and
additional Contract Fees accrued thereon) will terminate.

Section 504. Payment of Purchase Price.

         The purchase price for the Shares purchased pursuant to a Purchase
Contract shall be paid by application of payments received by the Company on the
Share Purchase Date from the Collateral Agent pursuant to the Pledge Agreement
in respect of the principal of the Pledged Securities to secure the obligations
of the relevant Holder under such Purchase Contract. Such application shall
satisfy in full the obligations under such Purchase Contract of the Holder of
the Security of which such Purchase Contract is a part. The Company shall not be
obligated to issue any Shares in respect of a Purchase Contract or deliver any
certificates therefor to the Holder of the related Unit unless the Company shall
have received payment in full of the aggregate purchase price for Shares to be
purchased thereunder in the manner herein set forth.

Section 505. Issuance of the Shares.

         As promptly as practicable on or after the Share Purchase Date, upon
receipt by the Company of payment in full of the aggregate purchase price for
the Shares purchased by the Holders pursuant to the foregoing provisions of this
Article, and subject to Section 506(b), the Company shall deposit with the
Purchase Contract Agent, for the benefit of the Holders of the Units, one or
more certificates representing the Shares registered in the name of the Purchase
Contract Agent (or its nominee) as custodian for the Holders (such certificates
for the Shares, together with any dividends or distributions with respect
thereto, being hereinafter referred to as the "Purchase Contract Settlement
Fund") to which the Holders are

                                       19
<PAGE>

entitled hereunder. Subject to the foregoing, upon surrender of a Unit
Certificate to the Purchase Contract Agent on or after the Share Purchase Date,
with the form of Settlement Instructions thereon duly completed and executed,
the Holder of such Unit Certificate shall be entitled to receive in exchange
therefor a certificate representing that number of whole Shares which such
Holder is entitled to receive pursuant to the provisions of this Article Five
(after taking into account all Units then held by such Holder) together with
cash in lieu of fractional shares as provided in Section 508 and any dividends
or distributions with respect to such shares constituting part of the Purchase
Contract Settlement Fund, but without any interest thereon, and the Unit
Certificate so surrendered shall forthwith be cancelled. Such shares shall be
registered in the name of the Holder or the Holder's designee as specified in
the form of Settlement Instructions appearing on the surrendered Unit
Certificate.

         If any Shares issued in respect of a Purchase Contract are to be
registered to a Person other than the Person in whose name the Unit Certificate
evidencing such Purchase Contract is registered, no such registration shall be
made unless the Person requesting such registration has paid any transfer and
other taxes required by reason of such registration in a name other than that of
the registered Holder of the Unit Certificate evidencing such Purchase Contract
or has established to the satisfaction of the Company that such tax either has
been paid or is not payable.

[Section 506. Adjustment of Settlement Rate.]

         [(a) Adjustments for Dividends, Distributions, Share Splits, Etc.]

         [(1) In case the Company shall pay or make a dividend or other
distribution on any class of Class A Common Stock of the Company in Shares, the
Settlement Rate in effect at the opening of business on the day following the
date fixed for the determination of shareholders entitled to receive such
dividend or other distribution shall be increased by dividing such Settlement
Rate by a fraction of which the numerator shall be the number of Shares
outstanding at the close of business on the date fixed for such determination
and the denominator shall be the sum of such number of shares and the total
number of shares constituting such dividend or other distribution, such increase
to become effective immediately after the opening of business on the day
following the date fixed for such determination. For the purposes of this
paragraph (1), the number of Shares at any time outstanding shall not include
shares held in the treasury of the Company but shall include shares issuable in
respect of scrip certificates issued in lieu of fractions of Shares. The Company
will not pay any dividend or make any distribution on the Shares held in the
treasury of the Company.]

         [(2) In case the Company shall issue rights, options or warrants to all
holders of its Shares (not being available on an equivalent basis to Holders of
the Units upon settlement of the Purchase Contracts underlying such Units)
entitling them, for a period expiring within 45 days after the record date for
the determination of shareholders entitled to receive such rights, options or
warrants, to subscribe for or purchase Shares at a price per share less than the
Current Market Price per Share on the date fixed for the determination of
shareholders entitled to receive such rights, options or warrants (other than
pursuant to a dividend reinvestment plan), the Settlement Rate in effect at the
opening of business on the day following the date fixed for such determination
shall be increased by dividing such Settlement Rate by a fraction of which the
numerator shall be the number of Shares outstanding at the close of business on
the date fixed for such determination plus the number of Shares which the
aggregate of the offering price of the total number of Shares so offered for
subscription or purchase would purchase at such Current Market Price and the
denominator shall be the number of Shares outstanding at the close of business
on the date fixed for such determination plus the number of Shares so offered
for subscription or purchase, such increase to become effective immediately
after the opening of business on the day following the date fixed for such
determination. For the purposes of this paragraph (2), the number of Shares at
any time outstanding shall not include shares held in the treasury of the
Company but shall include shares issuable

                                       20
<PAGE>

in respect of scrip certificates issued in lieu of fractions of Shares. The
Company shall not issue any such rights, options or warrants in respect of
Shares held in the treasury of the Company.]

         [(3)In case outstanding Shares shall be subdivided into a greater
number of Shares, the Settlement Rate in effect at the opening of business on
the day following the day upon which such subdivision becomes effective shall be
proportionately increased, and, conversely, in case outstanding Shares shall
each be combined into a smaller number of Shares, the Settlement Rate in effect
at the opening of business on the day following the day upon which such
combination becomes effective shall be proportionately reduced, such increase or
reduction, as the case may be, to become effective immediately after the opening
of business on the day following the day upon which such subdivision or
combination becomes effective.]

         [(4) In case the Company shall, by dividend or otherwise, distribute to
all holders of its Share evidences of its indebtedness or assets (including
securities, but excluding any rights or warrants referred to in paragraph (2) of
this Section, any dividend or distribution paid exclusively in cash and any
dividend or distribution referred to in paragraph (1) of this Section), the
Settlement Rate shall be increased so that the same shall equal the rate
determined by dividing the Settlement Rate in effect immediately prior to the
close of business on the date fixed for the determination of shareholders
entitled to receive such distribution by a fraction of which the numerator shall
be the Current Market Price per share of the Shares on the date fixed for such
determination less the then fair market value (as determined by the Board of
Directors, whose determination shall be conclusive and described in a Board
Resolution filed with the Purchase Contract Agent) of the portion of the assets
or evidences of indebtedness so distributed applicable to one Share and the
denominator shall be such Current Market Price per Common Share, such adjustment
to become effective immediately prior to the opening of business on the day
following the date fixed for the determination of shareholders entitled to
receive such distribution. In any case in which this paragraph (4) is
applicable, paragraph (2) of this Section shall not be applicable.]

         [(5) In case the Company shall, by dividend or otherwise, distribute to
all holders of its Shares cash (excluding any cash that is distributed in a
Reorganization Event to which Section 506(b) applies or as part of a
distribution referred to in paragraph (4) of this Section) in an aggregate
amount that, when combined with (I) the aggregate amount of any other
distributions to all holders of its Shares made exclusively in cash within the
12 months preceding the date of payment of such distribution to the extent such
amount has not already been applied in a prior adjustment pursuant to this
paragraph (5) and (II) the aggregate of the cash plus the fair market value (as
determined by the Board of Directors, whose determination shall be conclusive
and described in a Board Resolution), as of the date of expiration of such
tender or exchange offer, of the consideration paid in respect of any tender or
exchange offer by the Company or any of its subsidiaries for all or any portion
of the Class A Common Stock expiring within the 12 months preceding the date of
payment of such distribution and in respect of which no adjustment pursuant to
paragraph (6) of this Section has been made, exceeds __% of the product of the
Current Market Price per Share on the date fixed for the determination of
shareholders entitled to receive such distribution times the number of Shares
outstanding on such date (such excess portion of such distribution being herein
referred to as the "Excess Amount"), the Settlement Rate shall be increased so
that the same shall equal the rate determined by dividing the Settlement Rate in
effect immediately prior to the close of business on the date fixed for the
determination of shareholders entitled to receive such distribution by a
fraction of which (i) the numerator shall be the Current Market Price per Share
on the date fixed for such determination less an amount equal to (x) such Excess
Amount divided by (y) the number of Shares outstanding at the close of business
on the date fixed for such determination and (ii) the denominator shall be the
Current Market Price per Share on the date fixed for such determination, such
adjustment to become effective immediately prior to the opening of business on
the day following the date fixed for the determination of shareholders entitled
to receive such distribution.]

                                       21
<PAGE>

         [(6) In case the Company or any subsidiary of the Company shall
consummate a tender or exchange offer for all or any portion of the Shares
(other than normal course issuer bids in accordance with applicable laws) and
pay an aggregate consideration in respect thereof having a fair market value (as
determined by the Board of Directors, whose determination shall be conclusive
and described in a Board Resolution) that, when combined with (I) the aggregate
of the cash plus the fair market value (as determined by the Board of Directors,
whose determination shall be conclusive and described in a Board Resolution), as
of the date of expiration of such tender or exchange offer, of the consideration
paid in respect of any other tender or exchange offer by the Company or any of
its subsidiaries for all or any portion of the Shares expiring within the 12
months preceding the date of expiration of such tender or exchange offer and in
respect of which no adjustment pursuant to this paragraph (6) has been made and
(II) the aggregate amount of any distributions to all holders of the Company's
Shares made exclusively in cash within 12 months preceding the date of
expiration of such tender or exchange offer to the extent such amount has not
already been applied in a prior adjustment pursuant to paragraph (5) of this
Section, exceeds __% of the product of the Current Market Price per share of the
Class A Common Stock on the date of expiration of such tender or exchange offer
times the number of Shares outstanding (including any tendered shares) at the
close of business on the date of such expiration, the Settlement Rate shall be
increased so that the same shall equal the rate determined by dividing the
Settlement Rate in effect immediately prior to the close of business on the date
of such expiration by a fraction of which (i) the numerator shall be (A) the
product of (I) the Current Market Price per Share on the date of such expiration
and (II) the number of Shares outstanding (including any tendered shares) at the
close of business on the date of such expiration less (B) the amount of cash
plus the fair market value (determined as aforesaid) of the aggregate
consideration paid in respect of such tender or exchange offer and (ii) the
denominator shall be the product of (A) the Current Market Price per share of
the Class A Common Stock on the date of such expiration and (B) the number of
Shares outstanding (including any tendered shares) at the close of business on
the date of such expiration less the number of shares acquired pursuant to such
tender or exchange, such adjustment to become effective immediately prior to the
opening of business on the day following the date of such expiration.]

         [(7) The reclassification of Shares into securities including
securities other than Shares (other than any reclassification upon a
Reorganization Event to which Section 506(b) applies) shall be deemed to involve
(i) a distribution of such securities other than Shares to all holders of Shares
(and the effective date of such reclassification shall be deemed to be "the date
fixed for the determination of shareholders entitled to receive such
distribution" and the "date fixed for such determination" within the meaning of
paragraph (4) of this Section), and (ii) a subdivision or combination, as the
case may be, of the number of Shares outstanding immediately prior to such
reclassification into the number of Shares outstanding immediately thereafter
(and the effective date of such reclassification shall be deemed to be "the day
upon which such subdivision becomes effective" or "the day upon which such
combination becomes effective", as the case may be, and "the day upon which such
subdivision or combination becomes effective" within the meaning of paragraph
(3) of this Section).]

         [(8) The "Current Market Price" per Share on any day means the average
of the daily Closing Prices for the 5 consecutive Trading Days selected by the
Company commencing not more than 20 Trading Days before, and ending not later
than, the earlier of the day in question and the day before the "ex" date with
respect to the issuance or distribution requiring such computation. For purposes
of this paragraph, the term " 'ex' date", when used with respect to any issuance
or distribution, shall mean the first date on which the Shares trade regular way
on such exchange or in such market without the right to receive such issuance or
distribution.]

         [(9) All adjustments to the Settlement Rate shall be calculated to the
nearest 1/10,000th of a Share (or, if there is not a nearest 1/10,000th of a
share, to the next lower 1/10,000th of a share). No adjustment in the Settlement
Rate shall be required unless such adjustment would require an increase or

                                       22
<PAGE>

decrease of at least one percent therein; provided, however, that any
adjustments which by reason of this subparagraph are not required to be made
shall be carried forward and taken into account in any subsequent adjustment. If
an adjustment is made to the Settlement Rate pursuant to paragraph (1), (2),
(3), (4), (5), (6), (7) or (10) of this Section 506(a), an adjustment shall also
be made to the Average Trading Price solely to determine which of clauses (a),
(b) or (c) of the definition of Settlement Rate in Section 501 will apply on the
Share Purchase Date. Such adjustment shall be made by multiplying the Average
Trading Price by a fraction of which the numerator shall be the Settlement Rate
immediately after such adjustment pursuant to paragraph (1), (2), (3), (4), (5),
(6), (7) or (10) of this Section 506(a) and the denominator shall be the
Settlement Rate immediately before such adjustment.]

         [(10) The Company may make such increases in the Settlement Rate, in
addition to those required by this Section, as it considers to be advisable in
order to avoid or diminish any income tax to any holders of Shares resulting
from any dividend or distribution of stock or issuance of rights or warrants to
purchase or subscribe for stock or from any event treated as such for income tax
purposes or for any other reasons.]

         [(b) Adjustment for Consolidation, Merger or Other Reorganization
Event. In the event of (i) any consolidation or merger of the Company with or
into another Person (other than a merger or consolidation in which the Company
is the continuing corporation and in which the Shares outstanding immediately
prior to the merger or consolidation is not exchanged for cash, securities or
other property of the Company or another corporation), (ii) any sale, transfer,
lease or conveyance to another Person of the property of the Company as an
entirety or substantially as an entirety, (iii) any statutory exchange of
securities of the Company with another Person (other than in connection with a
merger or acquisition) or (iv) any liquidation, dissolution or winding up of the
Company (any such event, a "Reorganization Event"), each Holder of Units will
thereafter be entitled to receive on the Share Purchase Date with respect to
each Purchase Contract forming a part thereof, the kind and amount of
securities, cash and other property receivable upon such Reorganization Event by
a Holder of the number of Shares issuable on account of such Purchase Contract
if the Share Purchase Date had occurred immediately prior to such Reorganization
Event, assuming such Holder of Shares is not a Person with which the Company
consolidated or into which the Company merged or which merged into the Company
or to which such sale or transfer was made, as the case may be ("constituent
Person"), or an Affiliate of a constituent Person, and failed to exercise its
rights of election, if any, as to the kind or amount of securities, cash and
other property receivable upon such Reorganization Event (provided that if the
kind or amount of securities, cash and other property receivable upon such
Reorganization Event is not the same for each Share held immediately prior to
such Reorganization Event by other than a constituent Person or an Affiliate
thereof and in respect of which such rights of election shall not have been
exercised ("non-electing share"), then for the purpose of this Section the kind
and amount of securities, cash and other property receivable upon such
Reorganization Event by each non-electing share shall be deemed to be the kind
and amount so receivable per share by a plurality of the non-electing shares).
In the event of such a Reorganization Event, the Person formed by such
consolidation, merger or exchange or the Person which acquires the assets of the
Company or, in the event of a liquidation or dissolution of the Company, the
Company or a liquidating trust created in connection therewith, shall execute
and deliver to the Purchase Contract Agent an agreement supplemental hereto
providing that the Holders of Outstanding Units shall have the rights provided
by this Section 506. Such supplemental agreement shall provide for adjustments
which, for events subsequent to the effective date of such supplemental
agreement, shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Section. The above provisions of this Section
shall similarly apply to successive Reorganization Events.]

                                       23
<PAGE>

[Section 507. Notice of Adjustments and Certain Other Events.

         (a) Whenever the Settlement Rate is adjusted as herein provided, the
         Company shall:

             (i) forthwith compute the adjusted Settlement Rate in accordance
         with Section 506 and prepare and transmit to the Purchase Contract
         Agent an Officers' Certificate setting forth the Settlement Rate, the
         method of calculation thereof in reasonable detail, and the facts
         requiring such adjustment and upon which such adjustment is based; and

             (ii) within 10 Business Days following the occurrence of an event
         that permits or requires an adjustment to the Settlement Rate pursuant
         to Section 506 (or if the Company is not aware of such occurrence, as
         soon as practicable after becoming so aware), provide a written notice
         to the Holders of the Units of the occurrence of such event and a
         statement in reasonable detail setting forth the method by which the
         adjustment to the Settlement Rate was determined and setting forth the
         adjusted Settlement Rate.

         (b) The Purchase Contract Agent shall not at any time be under any duty
or responsibility to any holder of Units to determine whether any facts exist
which may require any adjustment of the Settlement Rate, or with respect to the
nature or extent or calculation of any such adjustment when made, or with
respect to the method employed in making the same. The Purchase Contract Agent
shall not be accountable with respect to the validity or value (or the kind or
amount) of any Shares, or of any securities or property, which may at the time
be issued or delivered with respect to any Purchase Contract; and the Purchase
Contract Agent makes no representation with respect thereto. The Purchase
Contract Agent shall not be responsible for any failure of the Company to issue,
transfer or deliver any Shares pursuant to a Purchase Contract or to comply with
any of the duties, responsibilities or covenants of the Company contained in
this Article.]

Section 508. No Fractional Shares.

         No fractional shares or scrip representing fractional Shares shall be
issued or delivered upon settlement on the Share Purchase Date. If Unit
Certificates evidencing more than one Purchase Contract shall be surrendered for
settlement at one time by the same Holder, the number of full Shares which shall
be delivered upon settlement shall be computed on the basis of the aggregate
number of Purchase Contracts evidenced by the Unit Certificates so surrendered.
Instead of any fractional Share which would otherwise be deliverable upon
settlement of any Purchase Contracts on the Share Purchase Date, the Company,
through the Purchase Contract Agent, shall make a cash payment in respect of
such fractional interest in an amount equal to such fraction times the Average
Trading Price. The Company shall provide the Purchase Contract Agent from time
to time with sufficient funds to permit the Purchase Contract Agent to make all
cash payments required by this Section 508 in a timely manner.

Section 509. Charges and Taxes.

         The Company will pay all share transfer and similar taxes attributable
to the initial issuance and delivery of the Shares pursuant to the Purchase
Contracts; provided, however, that the Company shall not be required to pay any
such tax or taxes which may be payable in respect of any exchange of or
substitution for a Unit Certificate evidencing a Purchase Contract or any
issuance of a Share in a name other than that of the registered Holder of a Unit
Certificate surrendered in respect of the Purchase Contracts evidenced thereby,
other than in the name of the Purchase Contract Agent, as custodian for such
Holder, and the Company shall not be required to issue or deliver such share
certificates or Unit Certificates unless or until the Person or Persons
requesting the transfer or issuance thereof shall have

                                       24
<PAGE>

paid to the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid.

Section 510. Termination Event; Notice.

         The Purchase Contracts and the obligations and rights of the Company
and the Holders thereunder, including, without limitation, all obligations and
rights to pay or receive any accrued or deferred Contract Fees or to settle such
Purchase Contracts pursuant to this Article Five, shall immediately and
automatically terminate, without the necessity of any notice or action by any
Holder, the Purchase Contract Agent or the Company, if, on or prior to the Share
Purchase Date, a Termination Event shall have occurred. Upon the occurrence of a
Termination Event, the Company shall give written notice to the Purchase
Contract Agent, the Collateral Agent and to the Holders at their addresses as
they appear in the Unit Registers. Upon and after the occurrence of a
Termination Event, the provisions of this Article Five (other than this Section
510) shall automatically terminate and be of no further force or effect, and the
Unit Certificates shall thereafter represent only the right to receive the
Pledged Securities forming a part of the Units theretofore evidenced thereby in
accordance with the provisions of Section 402 and the Pledge Agreement.

[Section 511. Early Settlement.]

         [(a) Subject to and upon compliance with the provisions of this Section
511, at the option of the Holder thereof, Purchase Contracts underlying Units
may be settled early ("Early Settlement") on or prior to _______ on the _______
Business Day immediately preceding ______ __, ____, as provided herein. In order
to exercise the right to effect Early Settlement with respect to any Purchase
Contracts, the Holder of a Unit Certificate shall deliver such Unit Certificate
to the Purchase Contract Agent at the Corporate Trust Office duly endorsed for
transfer to the Company or in blank with the form of Election to Settle Early on
the reverse side thereof duly completed and accompanied by payment (which
payment shall be made in lawful money of the United States by certified or
cashier's check payable to the order of the Company in immediately available
funds) in an amount ( the "Early Settlement Amount") equal to (i) the product of
(A) the Stated Amount per Unit times (B) the number of Purchase Contracts with
respect to which the Holder has elected to effect Early Settlement minus (ii)
the aggregate amount of Contract Fees, if any, otherwise payable on or prior to
the immediately preceding Quarterly Payment Date deferred at the option of the
Company pursuant to the Purchase Contract Agreement and remaining unpaid as of
such immediately preceding Quarterly Payment Date plus (iii) if such delivery is
made with respect to any Purchase Contracts during the period from the close of
business on any Record Date next preceding any Quarterly Payment Date to the
opening of business on such Quarterly Payment Date, an amount equal to the sum
of (x) the Contract Fees payable on such Quarterly Payment Date with respect to
such Purchase Contracts plus (y) the interest with respect to the related
Underlying Securities payable on such Quarterly Payment Date. If the foregoing
requirements are first satisfied with respect to Purchase Contracts underlying
Units at or prior to _______ New York City time, on a Business Day, such date
shall be the "Early Settlement Date" with respect to such Units and if such
requirements are first satisfied after _________, New York City time, on a
Business Day or on a day that is not a Business Day, the "Early Settlement Date"
with respect to such Units shall be the next succeeding Business Day.]

         [(b) Upon Early Settlement of Purchase Contracts by a Holder of the
related Units, the Company shall issue, and the Holder shall be entitled to
receive regardless of the market price of the Shares on the Early Settlement
Date, ________ Shares on account of each Purchase Contract as to which Early
Settlement is effected (the "Early Settlement Rate"). The Early Settlement Rate
shall be adjusted in the manner and at the same time as the Settlement Rate is
adjusted.]

                                       25
<PAGE>

         [(c) No later than the ______ Business Day after the applicable Early
Settlement Date the Company shall cause (i) the Shares issuable upon Early
Settlement of Purchase Contracts to be issued and delivered, together with
payment in lieu of any fraction of a share, as provided in Section 508, and (ii)
the related Notes to be released from the Pledge by the Collateral Agent and
transferred, in each case, in book-entry form through the facilities of the
Depository Trust Company to the Purchase Contract Agent for delivery to the
Holder thereof or its designee.]

         [(d) Upon Early Settlement of any Purchase Contracts, and subject to
receipt of Shares from the Company and the Notes from the Collateral Agent, as
applicable, the Purchase Contract Agent shall, in accordance with the
instructions provided by the Holder thereof on the applicable form of Election
to Settle Early on the reverse of the Unit Certificate evidencing the related
Units, (i) transfer to the Holder the Notes forming a part of such Units in
book-entry form through the facilities of the Depository Trust Company, and (ii)
deliver to the Holder a certificate or certificates for the full number of
Shares issuable upon such Early Settlement, together with payment in lieu of any
fraction of a share, as provided in Section 508.]

         [(e) In the event that Early Settlement is effected (i) no Contract
Fees will accrue following the Early Settlement Date, and (ii) with respect to
Purchase Contracts underlying less than all the Units evidenced by a Unit
Certificate, upon such Early Settlement the Company shall execute and the
Purchase Contract Agent shall authenticate, execute on behalf of the Holder and
deliver to the Holder thereof, at the expense of the Company, a Unit Certificate
evidencing the Units as to which Early Settlement was not effected.]

[Section 512. Early Settlement Upon Merger.]

         [(a) In the event of a merger or consolidation of the Company of the
type described in clause (i) of Section 506(b) in which the Shares outstanding
immediately prior to such merger or consolidation are exchanged for
consideration consisting of at least 30% cash or cash equivalents (any such
event a "Cash Merger"), then the Company (or the successor to the Company
hereunder) shall be required to offer the Holder of each Unit the right to
settle the Purchase Contract underlying such Unit prior to the Share Purchase
Date ("Merger Early Settlement") as provided herein. On or before the fifth
Business Day after the consummation of a Cash Merger the Company or, at the
request and expense of the Company, the Purchase Contract Agent shall give all
Holders notice, in the manner provided in Section 105, of the occurrence of the
Cash Merger and of the right of Merger Early Settlement arising as a result
thereof. The Company shall also deliver a copy of such notice to the Purchase
Contract Agent and the Collateral Agent.]

         [Each such notice shall contain:

             (i) the date, which shall be not less than 20 nor more than 30 days
         after the date of such notice, on which the Merger Early Settlement
         will be effected (the "Merger Early Settlement Date");

             (ii) the date, which shall be three Business Days prior to the
         Merger Early Settlement Date, by which the Merger Early Settlement
         right must be exercised;

             (iii) the Settlement Rate in effect as a result of such Cash Merger
         and the kind and amount of securities, cash and other property
         receivable by the Holder upon settlement of each Purchase Contract
         pursuant to Section 506(b);

                                       26
<PAGE>

             (iv) a statement to the effect that all or a portion of the Stated
         Amount payable by the Holder to settle the Purchase Contract will be
         offset against the amount of cash so receivable upon exercise of Merger
         Early Settlement, as applicable;

             (v) the instructions a Holder must follow to exercise the Merger
         Early Settlement right; and

             (vi) a statement to the effect that accrued and unpaid Contract
         Fees in respect of the Purchase Contracts for which Merger Early
         Settlement shall have been effected shall be payable on the Merger
         Early Settlement Date and that upon such payment Contract Fees on such
         Purchase Contracts shall cease to accrue.]

         [(b) To exercise a Merger Early Settlement right, a Holder shall
deliver to the Purchase Contract Agent on or before _______, New York City time
on the date specified in the notice the Unit Certificate(s) with respect to
which the Merger Early Settlement right is being exercised with the form of
"Election to Settle Early" on the reverse thereof, duly completed accompanied by
payment of the purchase price for the property to be purchased pursuant to the
Purchase Contracts underlying such Units, which payment shall be made in lawful
money of the United States by certified or cashier's check payable to the order
of the Company in immediately available funds in an amount equal to the Early
Settlement Amount.]

         [(c) In the event a Merger Early Settlement right shall be exercised by
a Holder in accordance with the terms hereof, (i) on the Merger Early Settlement
Date the Company shall deliver or cause to be delivered by the Purchase Contract
Agent to each such exercising Holder the net cash, securities and other property
to be received, as provided herein, by such exercising Holder in respect of the
number of Purchase Contracts for which such Merger Early Settlement right was
exercised in accordance with the settlement instructions provided by such Holder
and (ii) all references herein to Share Purchase Date shall be deemed to refer
to such Merger Early Settlement Date and all references to the form of
Settlement Instruction shall be deemed to refer to the form of Election to
Settle Early, as applicable.]

         [(d) In the event that Merger Early Settlement is effected with respect
to less than all of the Purchase Contracts underlying the Units evidenced by a
Unit Certificate, upon such Merger Early Settlement the Company shall execute
and the Purchase Contract Agent shall authenticate, execute on behalf of the
Holders and deliver to the Holder thereof, at the expense of the Company, a Unit
Certificate evidencing the Units as to which Merger Early Settlement was not
effected.]

                                   ARTICLE SIX

                                    REMEDIES

Section 601. Unconditional Rights of Holders.

         Notwithstanding any other provision in this Agreement, the Holder of
any Unit shall have the right, which is absolute and unconditional but which is
subject to Section 510, to purchase Shares pursuant to the Purchase Contract
underlying such Unit and, in each such case, to institute suit for the
enforcement of any such right, and such rights shall not be impaired without the
consent of such Holder.

Section 602. Restoration of Rights and Remedies.

         If any Holder of Units has instituted any proceeding to enforce any
right or remedy under this Agreement and such proceeding has been discontinued
or abandoned for any reason, or has been

                                       27
<PAGE>

determined adversely to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company and such Holder shall be restored
severally and respectively to their former positions hereunder and thereafter
all rights and remedies of such Holder shall continue as though no such
proceeding had been instituted.

Section 603. Rights and Remedies Cumulative.

         Except as otherwise provided with respect to the replacement of
mutilated, destroyed, lost or stolen Unit Certificates in the last paragraph of
Section 306, no right or remedy herein conferred upon or reserved to the Holders
of Units is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

Section 604. Delay or Omission Not Waiver.

         No delay or omission of any Holder to exercise any right or remedy
shall impair any such right or remedy or constitute a waiver of any such right.
Every right and remedy given by this Article or by law to the Holders may be
exercised from time to time, and as often as may be deemed expedient, by such
Holders.

Section 605. Undertaking for Costs.

         All parties to this Agreement agree, and each Holder of any Unit by its
acceptance of the Unit Certificate evidencing such Unit shall be deemed to have
agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Agreement, or in any suit against
the Purchase Contract Agent for any action taken, suffered or omitted by it as
Purchase Contract Agent, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; provided that
the provisions of this Section shall not apply to any suit instituted by the
Company, to any suit instituted by the Purchase Contract Agent, to any suit
instituted by any Holder of Units, or group of Holders, holding in the aggregate
more than 10% of the number of Outstanding Units, or to any suit instituted by
any Holder of Units for the enforcement of payments due in respect of Pledged
Securities or Contract Fees on Purchase Contracts underlying such Units on or
after the respective due dates therefor, or for enforcement of the right to
purchase Shares under the Purchase Contracts constituting a part of such Units.

Section 606. Waiver of Stay or Extension Laws.

         The Company covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, or plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the
performance of this Agreement; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such law
and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Purchase Contract Agent or the Holders, but will
suffer and permit the execution of every such power as though no such law had
been enacted.

                                       28
<PAGE>

                                  ARTICLE SEVEN

                           THE PURCHASE CONTRACT AGENT

Section 701.  Certain Duties and Responsibilities.

                  (a)(i) The Purchase Contract Agent undertakes to perform, with
         respect to the Units, 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 Purchase
         Contract Agent; and

                  (ii) the Purchase Contract Agent may, with respect to the
         Units, conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon certificates or
         opinions furnished to the Purchase Contract Agent and conforming to the
         requirements of this Agreement, but in the case of any certificates or
         opinions which by any provision hereof are specifically required to be
         furnished to the Purchase Contract Agent, the Purchase Contract Agent
         shall be under a duty to examine the same to determine whether or not
         they conform to the requirements of this Agreement but shall have no
         duty to confirm or investigate the accuracy or mathematical
         calculations or other facts stated therein.

         (b) Purchase Contract Agent shall not be liable for any action taken or
omitted or for any loss or injury resulting from its actions or its performance
or lack of performance of its duties hereunder in the absence of gross
negligence or willful misconduct on its part;

                  (i) the Purchase Contract Agent shall not be liable for any
         error of judgment made in good faith by a Responsible Officer, unless
         it shall be proved that the Purchase Contract Agent was grossly
         negligent in ascertaining the pertinent facts;

                  (ii) no provision of this Agreement shall require the Purchase
         Contract Agent to expend or risk its own funds or otherwise incur any
         financial liability in the performance of any of its duties hereunder,
         or in the exercise of any of its rights or powers, if it shall have
         reasonable grounds for believing that repayment of such funds or
         adequate indemnity against such risk or liability is not reasonably
         assured to it; and

                  (iii) In no event shall the Purchase Contract Agent be liable
         for any indirect, consequential, punitive or special damages,
         regardless of the form of action and whether or not such damages were
         foreseeable or contemplated.

         (c) Whether or not therein expressly so provided, every provision of
this Agreement relating to the conduct or affecting the liability of or
affording protection to the Purchase Contract Agent shall be subject to the
provisions of this Section.

Section 702. Notice of Default.

         Within 90 days after the occurrence of any default by the Company
hereunder, of which a Responsible Officer of the Purchase Contract Agent has
actual knowledge, the Purchase Contract Agent shall transmit by mail to all
Holders of Units, as their names and addresses appear in the Unit Registers,
notice of such default hereunder, unless such default shall have been cured or
waived.

                                       29
<PAGE>

Section 703. Certain Rights of Purchase Contract Agent.

         Subject to the provisions of Section 701:

                  (a) the Purchase Contract Agent may conclusively rely and
         shall be protected in acting or refraining from acting upon any
         resolution, certificate, statement, instrument, opinion, report,
         notice, request, direction, consent, order, bond, debenture, note,
         other evidence of indebtedness or other paper or document believed by
         it to be genuine and to have been signed or presented by the proper
         party or parties;

                  (b) any request or direction of the Company mentioned herein
         shall be sufficiently evidenced by an Officers' Certificate, Issuer
         Order or Issuer Request, and any resolution of the Board of Directors
         of the Company may be sufficiently evidenced by a Board Resolution;

                  (c) whenever in the administration of this Agreement the
         Purchase Contract Agent shall deem it desirable that a matter be proved
         or established prior to taking, suffering or omitting any action
         hereunder, the Purchase Contract Agent (unless other evidence be herein
         specifically prescribed) may, in the absence of bad faith on its part,
         conclusively rely upon an Officers' Certificate of the Company;

                  (d) the Purchase Contract Agent may consult with counsel of
         its selection and the advice of such counsel or any Opinion of Counsel
         shall be full and complete authorization and protection in respect of
         any action taken, suffered or omitted by it hereunder in good faith and
         in reliance thereon;

                  (e) the Purchase Contract Agent shall not be bound to make any
         investigation into the facts or matters stated in any resolution,
         certificate, statement, instrument, opinion, report, notice, request,
         direction, consent, order, bond, debenture, note, other evidence of
         indebtedness or other paper or document; and

                  (f) the Purchase Contract Agent may execute any of its powers
         hereunder or perform any duties hereunder either directly or by or
         through agents or attorneys and the Purchase Contract Agent shall not
         be responsible for any misconduct or negligence on the part of any
         agent or attorney appointed with due care by it hereunder.

Section 704. Not Responsible for Recitals or Issuance of Units.

         The recitals contained herein and in the Unit Certificates shall be
taken as the statements of the Company and the Purchase Contract Agent assumes
no responsibility for their correctness. The Purchase Contract Agent makes no
representations as to the validity or sufficiency of this Agreement or of the
Units. The Purchase Contract Agent shall not be accountable for the use or
application by the Company of the proceeds in respect of the Notes or Purchase
Contracts.

Section 705. May Hold Units.

         Any Unit Registrar or any other agent of the Company, or the Purchase
Contract Agent, in its individual or any other capacity, may become the owner or
pledgee of Units and may otherwise deal with the Company with the same rights it
would have if it were not Unit Registrar or such other agent, or the Purchase
Contract Agent.

                                       30
<PAGE>

Section 706. Money Held in Trust.

         Money held by the Purchase Contract Agent hereunder need not be
segregated from other funds except to the extent required by law. The Purchase
Contract Agent shall be under no obligation to invest or pay interest on any
money received by it hereunder except as otherwise agreed in writing with the
Company.

Section 707. Compensation and Reimbursement.

         The Company agrees:

             (a) to pay to the Purchase Contract Agent from time to time such
         compensation for all services rendered by it hereunder as the Company
         and the Purchase Contract Agent shall from time to time agree in
         writing;

             (b) except as otherwise expressly provided herein, to reimburse the
         Purchase Contract Agent upon its request for all reasonable expenses,
         disbursements and advances incurred or made by the Purchase Contract
         Agent in accordance with any provision of this Agreement (including the
         reasonable compensation and the expenses and disbursements of its
         agents and counsel), except any such expense, disbursement or advance
         as may be attributable to its gross negligence or bad faith; and

             (c) to indemnify the Purchase Contract Agent and any predecessor
         Purchase Contract Agent and their agents for, and to hold each of them
         harmless against, any and all loss, damage, claim, liability or
         expense, including taxes (other than taxes based upon, measured by or
         determined by the income of the Purchase Contract Agent), incurred
         without gross negligence or bad faith on its part, arising out of or in
         connection with the acceptance or administration of its duties
         hereunder, including the costs and expenses of defending itself against
         any claim or liability in connection with the exercise or performance
         of any of its powers or duties hereunder.

         The provision of this Section 707 shall survive the termination of this
Agreement and the resignation or removal of the Purchase Contract Agent.

Section 708. Purchase Contract Agent Required; Eligibility.

         There shall at all times be a Purchase Contract Agent hereunder which
shall be a corporation or banking association organized and doing business under
the laws of the United States of America, any State thereof or the District of
Columbia, authorized under such laws to exercise corporate trust powers, having
a combined capital and surplus of at least $50,000,000, subject to supervision
or examination by Federal or State authority and having a corporate trust office
in the Borough of Manhattan, The City of New York, if there be such a
corporation in the Borough of Manhattan, The City of New York qualified and
eligible under this Article and willing to act on reasonable terms. If such
corporation publishes reports of condition at least annually, pursuant to law or
to the requirements of said supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such corporation
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. If at any time the Purchase Contract
Agent shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

                                       31
<PAGE>

Section 709. Resignation and Removal; Appointment of Successor.

             (a) No resignation or removal of the Purchase Contract Agent and no
         appointment of a successor Purchase Contract Agent pursuant to this
         Article shall become effective until the acceptance of appointment by
         the successor Purchase Contract Agent in accordance with the applicable
         requirements of Section 710.

             (b) The Purchase Contract Agent may resign at any time by giving
         written notice thereof to the Company [__] days prior to the effective
         date of such resignation. If the instrument of acceptance by a
         successor Purchase Contract Agent required by Section 710 shall not
         have been delivered to the Purchase Contract Agent within [__] days
         after the giving of such notice of resignation, the resigning Purchase
         Contract Agent may petition any court of competent jurisdiction for the
         appointment of a successor Purchase Contract Agent.

             (c) The Purchase Contract Agent may be removed at any time by Act
         of the Holders of a majority in number of the Outstanding Units
         delivered to the Purchase Contract Agent and the Company.

             (d) If at any time

                    (i) the Purchase Contract Agent fails to comply with Section
             310(b) of the TIA, as if the Purchase Contract Agent were an
             indenture trustee under an indenture qualified under the TIA, after
             written request therefor by the Company or by any Holder who has
             been a bona fide Holder of a Unit for at least six months, or

                    (ii) the Purchase Contract Agent shall cease to be eligible
             under Section 708 and shall fail to resign after written request
             therefor by the Company or by any such Holder, or

                    (iii) the Purchase Contract Agent shall become incapable of
             acting or shall be adjudged a bankrupt or insolvent or a receiver
             of the Purchase Contract Agent or of its property shall be
             appointed or any public officer shall take charge or control of the
             Purchase Contract Agent or of its property or affairs for the
             purpose of rehabilitation, conservation or liquidation,

then, in any such case, (x) the Company by a Board Resolution may remove the
Purchase Contract Agent, or (y) any Holder who has been a bona fide Holder of a
Unit for at least six months may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the removal of the
Purchase Contract Agent and the appointment of a successor Purchase Contract
Agent.

             (e) If the Purchase Contract Agent shall resign, be removed or
become incapable of acting, or if a vacancy shall occur in the office of
Purchase Contract Agent for any cause, the Company, by a Board Resolution, shall
promptly appoint a successor Purchase Contract Agent and shall comply with the
applicable requirements of Section 710. If no successor Purchase Contract Agent
shall have been so appointed by the Company and accepted appointment in the
manner required by Section 710, the Purchase Contract Agent or any Holder who
has been a bona fide Holder of a Unit for at least six months may, on behalf of
himself and all others similarly situated, petition any court of competent
jurisdiction for the appointment of a successor Purchase Contract Agent.

             (f) The Company shall give, or shall cause such successor Purchase
Contract Agent to give, notice of each resignation and each removal of the
Purchase Contract Agent and each

                                       32
<PAGE>

appointment of a successor Purchase Contract Agent by mailing written notice of
such event by first-class mail, postage prepaid, to all Holders of Units as
their names and addresses appear in the Unit Registers. Each notice shall
include the name of the successor Purchase Contract Agent and the address of its
Corporate Trust Office.

Section 710. Acceptance of Appointment by Successor.

                  (a) In case of the appointment hereunder of a successor
Purchase Contract Agent, every such successor Purchase Contract Agent so
appointed shall execute, acknowledge and deliver to the Company and to the
retiring Purchase Contract Agent an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Purchase Contract Agent
shall become effective and such successor Purchase Contract Agent, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, agencies and duties of the retiring Purchase Contract Agent; but, on the
request of the Company or the successor Purchase Contract Agent, such retiring
Purchase Contract Agent shall, upon payment of its charges, execute and deliver
an instrument transferring to such successor Purchase Contract Agent all the
rights, powers and trusts of the retiring Purchase Contract Agent and shall duly
assign, transfer and deliver to such successor Purchase Contract Agent all
property and money held by such retiring Purchase Contract Agent hereunder.

                  (b) Upon request of any such successor Purchase Contract
Agent, the Company shall execute any and all instruments for more fully and
certainly vesting in and confirming to such successor Purchase Contract Agent
all such rights, powers and agencies referred to in paragraph (a) of this
Section.

                  (c) No successor Purchase Contract Agent shall accept its
appointment unless at the time of such acceptance such successor Purchase
Contract Agent shall be qualified and eligible under this Article.

Section 711. Merger, Conversion, Consolidation or Succession to Business.

         Any corporation or banking association into which the Purchase Contract
Agent may be merged or converted or with which it may be consolidated, or any
corporation or banking association resulting from any merger, conversion or
consolidation to which the Purchase Contract Agent shall be a party, or any
corporation or banking association succeeding to all or substantially all the
corporate trust business of the Purchase Contract Agent, shall be the successor
of the Purchase Contract Agent hereunder, provided such corporation or banking
association shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Unit Certificates shall have been
authenticated and executed on behalf of the Holders, but not delivered, by the
Purchase Contract Agent then in office, any successor by merger, conversion or
consolidation to such Purchase Contract Agent may adopt such authentication and
execution and deliver the Unit Certificates so authenticated and executed with
the same effect as if such successor Purchase Contract Agent had itself
authenticated and executed such Units.

Section 712. Preservation of Information; Communications to Holders.

         (a) The Purchase Contract Agent shall preserve, in as current a form as
is reasonably practicable, the names and addresses of Holders received by the
Purchase Contract Agent in its capacity as Unit Registrar.

         (b) If three or more Holders (herein referred to as "applicants") apply
in writing to the Purchase Contract Agent, and furnish to the Purchase Contract
Agent reasonable proof that each such applicant has owned a Unit for a period of
at least six months preceding the date of such application, and

                                       33
<PAGE>

such application states that the applicants desire to communicate with other
Holders with respect to their rights under this Agreement or under the Units and
is accompanied by a copy of the form of proxy or other communication which such
applicants propose to transmit, then the Purchase Contract Agent shall, within
five Business Days after the receipt of such application, afford such applicants
access to the information preserved at the time by the Purchase Contract Agent
in accordance with Section 712(a).

         (c) Every Holder of Units, by receiving and holding the Unit
Certificates evidencing the same, agrees with the Company and the Purchase
Contract Agent that none of the Company, the Purchase Contract Agent nor any
agent of any of them shall be held accountable by reason of the disclosure of
any such information as to the names and addresses of the Holders in accordance
with Section 712(b), regardless of the source from which such information was
derived.

Section 713. No Obligations of Purchase Contract Agent.

         Except to the extent otherwise provided in this Agreement, the Purchase
Contract Agent assumes no obligations and shall not be subject to any liability
under this Agreement or any Purchase Contract in respect of the obligations of
the Holder of any Unit thereunder. The Company agrees, and each Holder of a Unit
Certificate, by its acceptance thereof, shall be deemed to have agreed, that the
Purchase Contract Agent's execution of the Unit Certificates on behalf of the
Holders shall be solely as agent and attorney-in-fact for the Holders, and that
the Purchase Contract Agent shall have no obligation to perform such Purchase
Contracts on behalf of the Holders, except to the extent expressly provided in
Article Five hereof.

Section 714. Tax Compliance.

         (a) The Purchase Contract Agent, on its own behalf and on behalf of the
Company, will comply with all applicable certification, information reporting
and withholding (including "backup" withholding) requirements imposed by
applicable tax laws, regulations or administrative practice with respect to any
payments made with respect to the Units, including Form 1099. Such compliance
shall include, without limitation, the timely payment of all amounts required to
be withheld to the appropriate taxing authority or its designated agent.

         (b) The Purchase Contract Agent shall comply with any direction
received from the Company with respect to the application of such requirements
to particular payments or Holders or in other particular circumstances, and may
for purposes of this Agreement rely on any such direction in accordance with the
provisions of Section 701(a)(ii) hereof.

         (c) The Purchase Contract Agent shall maintain all appropriate records
documenting compliance with such requirements, and shall make such records
available, on written request, to the Company or to its authorized
representative within a reasonable period of time after receipt of such request.

                                  ARTICLE EIGHT

                             SUPPLEMENTAL AGREEMENTS

Section 801.  Supplemental Agreements Without Consent of Holders.

         Without the consent of any Holders, the parties to either Principal
Agreement, at any time and from time to time, may enter into one or more
agreements supplemental hereto or thereto, in form satisfactory to such parties,
for any of the following purposes:

                                       34
<PAGE>

                  (1) to evidence the succession of another Person to any such
         party, and the assumption by any such successor of the covenants of
         such party herein or therein and under the Units; or

                  (2) to add to the covenants of the Company for the benefit of
         the Holders, or to surrender any right or power herein conferred upon
         the Company; or

                  (3) to evidence and provide for the acceptance of appointment
         hereunder by a successor Purchase Contract Agent; or

                  (4) to make provision with respect to the rights of Holders
         pursuant to the requirements of Section 506(b); or

                  (5) to cure any ambiguity, to correct or supplement any
         provisions herein or therein which may be inconsistent with any other
         provisions herein or therein, or to make any other provisions with
         respect to such matters or questions arising under such Principal
         Agreement, provided such action shall not adversely affect the
         interests of the Holders.

Section 802. Supplemental Agreements With Consent of Holders.

         With the consent of the Holders of not less than a majority of the
Outstanding Units, by Act of said Holders delivered to the parties to either
Principal Agreement, such parties (when authorized, in the case of the Company,
by a Board Resolution) may enter into an agreement or agreements supplemental to
such Principal Agreement for the purpose of modifying in any manner the terms of
the Units, or the provisions of such Principal Agreement or the rights of the
Holders in respect of the Units; provided, however, that no such supplemental
agreement shall, without the consent of the Holder of each Outstanding Unit
affected thereby,

                  (1) change any payment date;

                  (2) change the amount or type of Pledged Securities required
         to be pledged to secure obligations under the Units, impair the right
         of the Holder of any Unit to receive distributions or interest payments
         on the underlying Pledged Securities or otherwise adversely affect the
         Holder's rights in or to such Pledged Securities;

                  (3) impair the right to institute suit for the enforcement of
         any Purchase Contract;

                  (4) reduce the number of Shares to be purchased pursuant to
         any Purchase Contract, increase the price to purchase Shares upon
         settlement of any Purchase Contract, change the Share Purchase Date or
         otherwise adversely affect the Holder's rights under any Purchase
         Contract; or

                  (5) reduce the percentage of the Outstanding Units the consent
         of whose Holders is required for any such supplemental agreement.

         It shall not be necessary for any Act of Holders under this Section to
approve the particular form of any proposed supplemental agreement, but it shall
be sufficient if such Act shall approve the substance thereof.

         The Company may, but shall not be obligated to, fix a record date for
the purpose of determining the Persons entitled to consent to any supplemental
agreement to any Principal Agreement. If a record

                                       35
<PAGE>

date is fixed, the Holders on such record date, or their duly designated
proxies, and only such Persons, shall be entitled to consent to such
supplemental agreement, whether or not such Holders remain Holders after such
record date; provided, that unless such consent shall have become effective by
virtue of the requisite percentage having been obtained prior to the date which
is 90 days after such record date, any such consent previously given shall
automatically and without further action by any Holder be cancelled and of no
further effect.

Section 803. Execution of Supplemental Agreements.

         In executing, or accepting the additional agencies created by, any
supplemental agreement permitted by this Article or the modifications thereby of
the agencies created by the Principal Agreements, the Purchase Contract Agent
shall be entitled to receive and (subject to Section 701) shall be fully
protected in relying upon, an Opinion of Counsel stating that the execution of
such supplemental agreement is authorized or permitted by this Agreement. The
Purchase Contract Agent may, but shall not be obligated to, enter into any such
supplemental agreement which affects the Unit Agent's own rights, duties or
immunities under this Agreement or otherwise.

Section 804. Effect of Supplemental Agreements.

         Upon the execution of any supplemental agreement under this Article,
the relevant Principal Agreement shall be modified in accordance therewith, and
such supplemental agreement shall form a part of such Principal Agreement for
all purposes; and every Holder of Unit Certificates theretofore or thereafter
authenticated, executed on behalf of the Holder and delivered hereunder shall be
bound thereby.

Section 805. Reference to Supplemental Agreements.

         Unit Certificates authenticated, executed on behalf of the Holders and
delivered after the execution of any supplemental agreement pursuant to this
Article may, and shall if required by the Purchase Contract Agent, bear a
notation in form approved by the Purchase Contract Agent as to any matter
provided for in such supplemental agreement. If the Company shall so determine,
new Unit Certificates so modified as to conform, in the opinion of the Purchase
Contract Agent and the Company, to any such supplemental agreement may be
prepared and executed by the Company and authenticated, executed on behalf of
the Holders and delivered by the Purchase Contract Agent in exchange for
Outstanding Unit Certificates evidencing the same number of Units.

                                  ARTICLE NINE

                    CONSOLIDATION, MERGER, SALE OR CONVEYANCE

Section 901. Covenant Not to Merge, Consolidate, Sell or Convey Property Except
             Under Certain Conditions.

         The Company covenants that it will not merge or consolidate with any
other Person or sell, assign, transfer, lease or convey all or substantially all
of its assets to any Person, unless (a) the Company shall be the continuing
corporation, or the successor (if other than the Company) shall be a corporation
organized and existing under the laws of the United States of America or a State
thereof and such corporation shall assume the obligations of the Company under
the Purchase Contracts and the Pledge Agreement by one or more supplemental
agreements in form satisfactory to the Purchase Contract Agent and, in the case
of the Pledge Agreement, the Collateral Agent, executed and delivered to the
Purchase Contract Agent, and, in the case of the Pledge Agreement, the
Collateral Agent by such corporation, and (b) the Company or such successor
corporation, as the case may be, shall not, immediately after such

                                       36
<PAGE>

merger or consolidation, or such sale, assignment, transfer, lease or
conveyance, be in default in the performance of any covenant or condition under
any Principal Agreement or under any of the Units.

Section 902. Rights and Duties of Successor Corporation.

         In case of any such consolidation, merger, sale, assignment, transfer,
lease or conveyance and upon any such assumption by the successor corporation,
such successor corporation shall succeed to and be substituted for the Company
with the same effect as if it had been named in the Principal Agreements as the
Company. Such successor corporation thereupon may cause to be signed, and may
issue either in its own name or in the name of Forest City Enterprises, Inc.,
any or all of the Unit Certificates evidencing Units issuable hereunder which
theretofore shall not have been signed by the Company and delivered to the
Purchase Contract Agent; and, upon the order of such successor corporation,
instead of the Company, and subject to all the terms, conditions and limitations
in this Agreement prescribed, the Purchase Contract Agent shall authenticate and
execute on behalf of the Holders and deliver any Unit Certificates which
previously shall have been signed and delivered by the officers of the Company
to the Purchase Contract Agent for authentication and execution, and any Unit
Certificate evidencing Units which such successor corporation thereafter shall
cause to be signed and delivered to the Purchase Contract Agent for that
purpose. All the Unit Certificates so issued shall in all respects have the same
legal rank and benefit under this Agreement as the Unit Certificates theretofore
or thereafter issued in accordance with the terms of this Agreement as though
all of such Unit Certificates had been issued at the date of the execution
hereof.

         In case of any such consolidation, merger, sale or conveyance such
change in phraseology and form (but not in substance) may be made in the Unit
Certificates evidencing Units thereafter to be issued as may be appropriate.

Section 903. Opinion of Counsel to Purchase Contract Agent.

         The Purchase Contract Agent, subject to Sections 701 and 703, shall be
provided an Opinion of Counsel as conclusive evidence that any such
consolidation, merger, sale, assignment, transfer, lease or conveyance, and any
such assumption, complies with the provisions of this Article.

                                   ARTICLE TEN

                                    COVENANTS

Section 1001. Performance Under Purchase Contracts.

         The Company covenants and agrees for the benefit of the Holders from
time to time of the Units that it will duly and punctually perform its
obligations under the Purchase Contracts in accordance with the terms of the
Purchase Contracts and this Agreement.

Section 1002. Maintenance of Office or Agency.

         The Company will maintain in the Borough of Manhattan, The City of New
York an office or agency where Unit Certificates may be presented or surrendered
for acquisition of Shares upon settlement and for transfer of Pledged Securities
upon occurrence of a Termination Event, where Unit Certificates may be
surrendered for registration of transfer or exchange, and where notices and
demands to or upon the Company in respect of the Units and this Agreement may be
served. The Company will give prompt written notice to the Purchase Contract
Agent of the location, and any change in the location, of such office or agency.
If at any time the Company shall fail to maintain any such required office or
agency or

                                       37
<PAGE>

shall fail to furnish the Purchase Contract Agent with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office, and the Company hereby appoints the Purchase Contract
Agent as its agent to receive all such presentations, surrenders, notices and
demands.

         The Company may also from time to time designate one or more other
offices or agencies where Unit Certificates may be presented or surrendered for
any or all such purposes and may from time to time rescind such designations;
provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in the
Borough of Manhattan, The City of New York for such purposes. The Company will
give prompt written notice to the Purchase Contract Agent of any such
designation or rescission and of any change in the location of any such other
office or agency. The Company hereby designates as the place of payment for the
Units the Corporate Trust Office and appoints the Purchase Contract Agent at its
Corporate Trust Office as paying agent in such city.

Section 1003. Company to Reserve Shares.

         The Company shall at all times prior to the Share Purchase Date reserve
and keep available, free from preemptive rights, out of its authorized but
unissued Shares the full number of Shares issuable against tender of payment in
respect of all Purchase Contracts underlying the Units.

Section 1004. Covenants as to Shares.

         The Company covenants that all Shares which may be issued against
tender of payment in respect of the Purchase Contracts underlying the Units
will, upon issuance, be newly issued (i.e., not issued out of treasury shares)
and be duly authorized, validly issued, fully paid and nonassessable.

Section 1005. Statements of Officers of the Company as to Default.

         The Company will deliver to the Purchase Contract Agent, on or before
________ __ in each year (beginning the first _________ __ after the date of the
original issuance of the Units hereunder) a brief certificate from the principal
executive, financial or accounting officer of the Company stating that in the
course of the performance by the signer of his or her duties as an officer of
the Company he or she would normally have knowledge of any default or
non-compliance by the Company in the performance of any covenants or conditions
contained in this Agreement, stating whether or not he or she has knowledge of
any such default or non-compliance and, if so, specifying each such default or
non-compliance of which the signer has knowledge and the nature thereof. For
purposes of this Section 1005, non-compliance or default shall be determined
without regard to any grace period or requirement of notice.

                                       38
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.

                                   FOREST CITY ENTERPRISES, INC.

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

                                      -----------------------------------------,

                                   as Purchase Contract Agent

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

                                       39
<PAGE>

                                                                       EXHIBIT A

                            FORM OF UNIT CERTIFICATE

                          FOREST CITY ENTERPRISES, INC.

                             _________________ UNITS

                        (STATED AMOUNT $______ PER UNIT)

CUSIP No. ___________

No. R-____                                                   ____________ Units

                  This Unit Certificate certifies that ______________ is the
registered Holder of the number of Units set forth above. Each Unit represents
the right to purchase Shares under a Purchase Contract with Forest City
Enterprises, Inc., an Ohio corporation (the "Company"), together with ownership
of the ______________ (the "Notes") or other Pledged Securities pledged to
secure the obligations owed to the Company under such Purchase Contract, subject
to the pledge arrangements securing the foregoing obligations.

                  Each Purchase Contract evidenced hereby is governed by and set
forth in a Purchase Contract Agreement, dated as of _________ __, ____ (the
"Purchase Contract Agreement"), between the Company and _________________, as
Purchase Contract Agent (herein called the "Purchase Contract Agent"). All terms
used herein which are not defined herein and which are defined in the Purchase
Contract Agreement have the meanings set forth therein. The Pledge evidenced
hereby is governed by the Pledge Agreement. Reference is hereby made to the
Purchase Contract Agreement and the Pledge Agreement, and any supplemental
agreements thereto, for a description of the respective rights, limitations of
rights, obligations, duties and immunities thereunder of the Purchase Contract
Agent, the Company, the Collateral Agent and the Holders. The summary contained
herein is qualified in its entirety by the provisions of the Principal
Agreements, and the Principal Agreements shall govern the rights of the parties
to the extent that there is any conflict between such summary and such
provisions.

                  Each Purchase Contract evidenced hereby obligates the Holder
of this Unit Certificate to purchase, and the Company to sell, on _______ __,
____ (the "Share Purchase Date"), at a price equal to $_____ per unit (the
"Stated Amount"), a number of Shares, having such terms as set forth in the
Company's articles of incorporation, as amended from time to time, [and
certificate of designation relating to such Shares] ("Shares"), of the Company
equal to the Settlement Rate, unless on or prior to the Share Purchase Date
there shall have occurred a Termination Event. The "Settlement Rate" is equal to
(a) if the Average Trading Price (as defined in the Purchase Contract Agreement)
is greater than or equal to $____ (the "Threshold Appreciation Price"), ________
of a Share per Purchase Contract, (b) if the Average Trading Price is less than
the Threshold Appreciation Price but is greater than the Stated Amount, a
fractional Share per Purchase Contract equal to the Stated Amount divided by the
Average Trading Price (rounded to the nearest 1/10,000th of a share or, if there
is no nearest 1/10,000th of a share, rounded downward to the nearest 1/10,000th
of a share) and (c) if the Average Trading Price is less than or equal to the
Stated Amount, one Share per Purchase Contract, in each case subject to
adjustment as provided in the Purchase Contract Agreement. No fractional Shares
will be issued upon settlement of Purchase Contracts, but instead of issuing any
fractional interest the Company shall make a cash payment as provided in the
Purchase Contract Agreement. The purchase price for the Shares purchased
pursuant to

                                       A-1
<PAGE>

each Purchase Contract shall be paid by application of payments received by the
Company on the Share Purchase Date from the Collateral Agent pursuant to the
Pledge Agreement in respect of the principal of the Pledged Securities to secure
the obligations of the Holder under such Purchase Contract. The Company shall
not be obligated to issue any Shares in respect of a Purchase Contract or
deliver any certificates therefor to the Holder unless it shall have received
payment in full of the aggregate purchase price for the Shares to be purchased
thereunder in the manner herein set forth.

                  The Purchase Contracts and the obligations and rights of the
Company and the Holders thereunder shall immediately and automatically
terminate, without the necessity of any notice or action by any Holder, the
Purchase Contract Agent or the Company, if, on or prior to the Share Purchase
Date, a Termination Event shall have occurred. Upon and after the occurrence of
a Termination Event, the Collateral Agent shall release the Pledged Securities
from the Pledge. The Units shall thereafter represent the right to receive the
Pledged Securities forming a part of such Units in accordance with the
provisions of the Purchase Contract Agreement and the Pledge Agreement.

                  The Company shall pay, on each ___________, _____________,
__________ and ___________, commencing ________ __, ____ (each, a "Quarterly
Payment Date"), in respect of each Purchase Contract evidenced hereby, a fee
(the "Contract Fee") accruing on the Stated Amount of such Unit from and
including the date of first issuance of the Units at a rate per annum equal to
____% (the "Contract Fee Rate") (computed on the basis of a 360-day year of
twelve 30-day months and subject to deferral at the option of the Company as
described in the Purchase Contract Agreement). Contract Fees will be payable at
the office of the Purchase Contract Agent in The City of New York or, at the
option of the Company, by check mailed to the address of the Person entitled
thereto at such address as it appears on the Unit Register.

                  The Company shall have the right, at any time prior to the
Share Purchase Date, to defer the payment of any or all of the Contract Fees
otherwise payable on any Quarterly Payment Date, but only if the Company shall
give the Holders and the Purchase Contract Agent written notice of its election
to defer such payment (specifying the amount to be deferred) as provided in the
Purchase Contract Agreement. Any Contract Fees so deferred shall bear additional
Contract Fees thereon at the rate of _____ per annum (and computed on the basis
of a 360-day year of twelve 30-day months), compounding on each succeeding
Quarterly Payment Date, until paid in full. Deferred Contract Fees (and
additional Contract Fees accrued thereon) shall be due on the next succeeding
Quarterly Payment Date except to the extent that payment is deferred pursuant to
the Purchase Contract Agreement. No Contract Fees may be deferred to a date that
is after the Share Purchase Date.

                  Pursuant to the Pledge Agreement, the Pledged Securities
constituting part of each Unit evidenced hereby have been pledged to the
Collateral Agent, for the benefit of the Company, to secure the obligations of
the Holder under the Purchase Contract comprising a portion of such Unit.

                  Subject to and upon compliance with the provisions of the
Purchase Contract Agreement at the option of the Holder thereof, Purchase
Contracts underlying Units having an aggregate Stated Amount equal to
$__________ per Unit or an integral multiple thereof may be settled early
("Early Settlement") as provided in the Purchase Contract Agreement. In order to
exercise the right to effect Early Settlement with respect to any Purchase
Contracts evidenced by this Unit Certificate, the Holder of this Unit
Certificate shall deliver this Unit Certificate to the Purchase Contract Agent
at the Corporate Trust Office duly endorsed for transfer to the Company or in
blank with the form of Election to Settle Early set forth below duly completed
and accompanied by payment in the form of a certified or cashier's check payable
to the order of the Company in immediately available funds in an amount (the
"Early Settlement Amount") equal to (i) the product of (A) the Stated Amount per
Unit times (B) the number of Purchase Contracts with respect to which the Holder
has elected to effect Early Settlement minus (ii) the

                                       A-2
<PAGE>

aggregate amount of Contract Fees, if any, otherwise payable on or prior to the
immediately preceding Quarterly Payment Date deferred at the option of the
Company pursuant to the Purchase Contract Agreement and remaining unpaid as of
such immediately preceding Quarterly Payment Date plus (iii) if such delivery is
made with respect to any Purchase Contracts during the period from the close of
business on any Record Date next preceding any Quarterly Payment Date to the
opening of business on such Quarterly Payment Date, an amount equal to the sum
of (x) the Contract Fees payable on such Quarterly Payment Date with respect to
such Purchase Contracts plus (y) the interest with respect to the related
Underlying Securities payable on such Quarterly Payment Date. Upon Early
Settlement of Purchase Contracts by a Holder of the related Units, the Pledged
Securities underlying such Units shall be released from the Pledge as provided
in the Pledge Agreement and the Holder shall be entitled to receive, a number of
Shares on account of each Purchase Contract forming part of a Unit as to which
Early Settlement is effected equal to the Early Settlement Rate. The Early
Settlement Rate shall initially be equal to __________ and shall be adjusted in
the same manner and at the same time as the Settlement Rate is adjusted as
provided in the Purchase Contract Agreement.

                  The transfer of any Unit Certificate will be registered and
Unit Certificates may be exchanged as provided in the Purchase Contract
Agreement. The Unit Registrar may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents permitted by the
Purchase Contract Agreement. No service charge shall be required for any such
registration of transfer or exchange, but the Company and the Purchase Contract
Agent may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith. Unless a Holder elects
Collateral Substitution, Early Settlement or Merger Early Settlement, for so
long as the Purchase Contract underlying a Unit remains in effect, such Unit
shall not be separable into its constituent parts, and the rights and
obligations of the Holder of such Unit in respect of the Pledged Securities and
Purchase Contract constituting such Unit may be transferred and exchanged only
as an integrated Unit.

                  Upon registration of transfer of this Unit Certificate, the
transferee shall be bound (without the necessity of any other action on the part
of such transferee) by the terms of the Purchase Contracts evidenced hereby and
by the Pledge Agreement, and the transferor shall be released from such
obligations. The Company covenants and agrees, and the Holder, by its acceptance
hereof, likewise covenants and agrees, to be bound by the provisions of this
paragraph.

                  The Holder of this Unit Certificate, by its acceptance hereof,
irrevocably authorizes the Purchase Contract Agent to enter into and perform the
related Purchase Contracts evidenced hereby on its behalf as its
attorney-in-fact, agrees to be bound by the terms and provisions thereof,
covenants and agrees to perform its obligations under such Purchase Contracts,
consents to the provisions of the Principal Agreements, irrevocably authorizes
and directs the Purchase Contract Agent to enter into the Pledge Agreement on
its behalf as its attorney-in-fact, and consents to and agrees to be bound by
the Pledge evidenced hereby pursuant to the Pledge Agreement.

                  Subject to certain exceptions, the provisions of the Principal
Agreements may be amended with the consent of the Holders of at least a majority
of the Outstanding Units.

                  THE PURCHASE CONTRACTS SHALL FOR ALL PURPOSES BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

                  The Company, the Purchase Contract Agent and any agent of the
Company or the Purchase Contract Agent may treat the Person in whose name this
Unit Certificate is registered as the owner of the Units evidenced hereby for
the purpose of receiving payments of distributions or interest on the Pledged
Securities, receiving the rights and performing the obligations under the
Purchase Contracts

                                       A-3
<PAGE>

and for all other purposes whatsoever, whether or not any payments in respect
thereof be overdue and notwithstanding any notice to the contrary, and neither
the Company, the Purchase Contract Agent nor any such agent shall be affected by
notice to the contrary.

                  THE PURCHASE CONTRACTS SHALL NOT, PRIOR TO THE SETTLEMENT
THEREOF, ENTITLE THE HOLDER TO ANY OF THE RIGHTS OF A HOLDER OF COMMON SHARES.

                  Copies of the Principal Agreements are available for
inspection at the offices of the Purchase Contract Agent.

                  Unless the certificate of authentication hereon has been
executed by the Purchase Contract Agent by manual signature, this Unit
Certificate shall not be entitled to any benefit under the Principal Agreements
or be valid or obligatory for any purpose.

                  IN WITNESS WHEREOF, the Company and the Holder hereby agree to
their respective obligations under the Purchase Contracts evidenced by this
instrument, and the Holder hereby acknowledges that the Pledged Securities
evidenced by this instrument are subject to the Pledge under the Pledge
Agreement.

                                       FOREST CITY ENTERPRISES, INC.

                                       By:
                                          --------------------------------------
Attest:
       -------------------------

                                       HOLDER SPECIFIED ABOVE

                                       By:                                    ,
                                          --------------------------------------
                                       as Attorney-in-Fact of such Holder

                                       By:
                                          --------------------------------------
Dated:

Purchase Contract Agent's Certificate of Authentication

                  This is one of the Unit Certificates referred to in the within
mentioned Purchase Contract Agreement.

                                      ,
-------------------------------------
as Purchase Contract Agent

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

                                       A-4
<PAGE>

                             SETTLEMENT INSTRUCTIONS

                  The undersigned Holder directs that a certificate for Shares
deliverable upon settlement on or after the Share Purchase Date of the Purchase
Contracts underlying the number of Units evidenced by this Unit Certificate be
registered in the name of, and delivered, together with a check in payment for
any fractional share, to the undersigned at the address indicated below unless a
different name and address have been indicated below. If shares are to be
registered in the name of a Person other than the undersigned, the undersigned
will pay any transfer tax payable incident thereto.

<TABLE>

<S>                                                           <C>
Dated:
       ---------------------------------------------------------------------------------------------
                                                                                Signature*

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

If shares are to be registered in the name                                      REGISTERED HOLDER
of and delivered to a Person other than the
Holder, please print such Person's name and                   Please print name and address of
address:                                                      Registered Holder:
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
                  Name                                                          Name
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------

------------------------------
*        Signature must be guaranteed by an eligible Guarantor Institution (banks, sharebrokers,
         savings and loan associations and credit unions) with membership in an approved signature
         medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15 if Shares are
         to be delivered other than to, and in the name of, the registered Holder.

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

If shares are to be registered in the name                             REGISTERED HOLDER
of and delivered to a Person other than the
Holder, please print such Person's name and          Please print name and address of
address:                                             Registered Holder:
----------------------------------------------------------------------------------------------------
                  Address                                                       Address
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
Social Security or other Taxpayer
Identification Number, if any
----------------------------------------------------------------------------------------------------
</TABLE>

                                       A-5
<PAGE>

<TABLE>

<S>                                                                    <C>
If shares are to be registered in the name of                                           REGISTERED HOLDER
and delivered to a Person other than the Holder,                       Please print name and address of Registered
please print such Person's name and address:                           Holder:

                  Name                                                          Name

                  Address                                                       Address

Social Security or other Taxpayer
Identification Number, if any
</TABLE>

                                       A-6
<PAGE>
                                                                       Exhibit B

                            FORM OF PLEDGE AGREEMENT

                    [Intentionally Omitted; See Exhibit 4.7]

<PAGE>
                                                                       Exhibit C

                            ELECTION TO SETTLE EARLY

                  The undersigned Holder directs that a certificate for Shares
deliverable upon settlement on or after the Early Settlement Date or the Merger
Early Settlement Date of the Purchase Contracts underlying the number of Units
evidenced by this Unit Certificate be registered in the name of, and delivered
to the undersigned at the address indicated below unless a different name and
address have been indicated below. If shares are to be registered in the name of
a Person other than the undersigned, the undersigned will pay any transfer tax
payable incident thereto.

<TABLE>

<S>                                                  <C>
Dated:
       ------------------------------------------------------------------------------------------------
                                                                                Signature*

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

If shares are to be registered in the name                                      REGISTERED HOLDER
of and delivered to a Person other than the
Holder, please print such Person's name and          Please print name and address of
address:                                             Registered Holder:
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
                  Name                                                 Name
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
                  Address                                              Address
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
Social Security or other Taxpayer
Identification Number, if any
-------------------------------------------------------------------------------------------------------

-----------------------------
*        Signature must be guaranteed by an eligible Guarantor Institution (banks, stockbrokers,
         savings and loan associations and credit unions) with membership in an approved signature
         medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15 if Shares are
         to be delivered other than to, and in the name of, the registered Holder.
</TABLE>

                                       C-1<PAGE>
                                                                     EXHIBIT 4.7

                                     FORM OF
                                PLEDGE AGREEMENT

         PLEDGE AGREEMENT, dated as of [_______________ ___, _____] (this
"Agreement"), among Forest City Enterprises, Inc., an Ohio corporation (the
"Company"), [______________________________], as collateral agent (in such
capacity, together with its successors in such capacity, the "Collateral
Agent"), and [_____________________________], as Purchase Contract Agent and as
attorney-in-fact of the Holders (as hereinafter defined) from time to time of
the Securities (as hereinafter defined) (in such capacity, together with its
successors in such capacity, the "Purchase Contract Agent") under the Purchase
Contract Agreement (as hereinafter defined).

                                    RECITALS

         The Company and the Purchase Contract Agent are parties to the Purchase
Contract Agreement, dated as of the date hereof (as modified and supplemented
and in effect from time to time, the "Purchase Contract Agreement"), pursuant to
which there will be issued Shares (as defined in the Purchase Contract
Agreement, and as used herein, the "Securities").

         Each Security consists of (a) one Purchase Contract (as hereinafter
defined) and (b) [type and description of underlying securities] ("Underlying
Securities") having a principal amount equal to $__________ (the "Stated
Amount") and maturing on __________, ____ (the "Stock Purchase Date"), subject
to the pledge of such Underlying Securities created hereby.

         Pursuant to the terms of the Purchase Contract Agreement and the
Purchase Contracts, the Holders (as defined in the Purchase Contract Agreement)
from time to time of the Securities have irrevocably authorized the Purchase
Contract Agent, as attorney-in-fact of such Holders, among other things to
execute and deliver this Agreement on behalf of such Holders and to grant the
pledge provided hereby of the Underlying Securities constituting part of such
Securities as provided herein and subject to the terms hereof.

         Accordingly, the Company, the Collateral Agent and the Purchase
Contract Agent, on its own behalf and as attorney-in-fact of the Holders from
time to time of the Securities, agree as follows:

         Section 1. Definitions.

         For all purposes of this Agreement, except as otherwise expressly
provided or unless the context otherwise requires:

         (a) the terms defined in this Article have the meanings assigned to
them in this Article and include the plural as well as the singular; and

         (b) the words "herein," "hereof" and "hereunder" and other words of
similar import refer to this Agreement as a whole and not to any particular
Article, Section or other subdivision.

         "Act" has the meaning specified in the Purchase Contract Agreement.

<PAGE>

         "Agreement" means this instrument as originally executed or as it may
from time to time be supplemented or amended by one or more agreements
supplemental hereto entered into pursuant to the applicable provisions hereof.

         ["Applicable Treasury Regulations" means Subpart O-Book-Entry Procedure
of Title 31 of the Code of Federal Regulations (31 CFR (S) 306.115 et. seq.) and
any other regulations of the United States Treasury Department from time to time
applicable to the transfer or pledge of book-entry U.S. Treasury Securities.]

         "Business Day" means any day that is not a Saturday, a Sunday or a day
on which the New York Stock Exchange or banking institutions or trust companies
in The City of New York are authorized or obligated by law or executive order to
be closed.

         "Code" has the meaning specified in Section 5(a) hereof.

         "Collateral Agent" has the meaning specified in the first paragraph of
this instrument.

         "Company" means the Person named as the "Company" in the first
paragraph of this instrument until a successor shall have become such, and
thereafter "Company" shall mean such successor.

         "Early Settlement" has the meaning specified in the Purchase Contract
Agreement.

         "Early Settlement Amount" has the meaning specified in the Purchase
Contract Agreement.

         "Holder" when used with respect to a Security, or a Purchase Contract
constituting a part thereof, has the meaning specified in the Purchase Contract
Agreement.

         "Opinion of Counsel" has the meaning specified in the Purchase Contract
Agreement.

         "Outstanding Units" has the meaning specified in the Purchase Contract
Agreement.

         "Outstanding Unit Certificates" has the meaning specified in the
Purchase Contract Agreement.

         "Person" means any individual, corporation, limited liability company,
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

         "Pledge" has the meaning specified in Section 2 hereof.

         "Pledged Securities" has the meaning specified in Section 2 hereof.

         "Purchase Contract" has the meaning specified in the Purchase Contract
Agreement.

         "Purchase Contract Agent" has the meaning specified in the first
paragraph of this instrument.

         "Security" has the meaning specified in the Recitals.

         "Stated Amount" has the meaning specified in the Recitals.

                                       2
<PAGE>

         "Stock Purchase Date" has the meaning specified in the Recitals.

         "Termination Event" has the meaning specified in the Purchase Contract
Agreement.

         "Underlying Securities" has the meaning specified in the Recitals.

         "Unit Certificate" has the meaning specified in the Purchase Contract
Agreement.

         Section 2. The Pledge.

         As collateral security for the performance when due by the Holders from
time to time of the Securities of their respective obligations under the
Purchase Contracts constituting part of such Securities, such Holders acting
through the Purchase Contract Agent, as their attorney-in-fact, hereby pledge
and grant to the Collateral Agent, for the benefit of the Company, a security
interest in all of the right, title and interest of such Holders in the
Underlying Securities constituting a part of such Securities. Prior to or
concurrently with the execution and delivery of this Agreement, the initial
Holders shall (i) cause the Underlying Securities to be delivered to the
Collateral Agent [by Federal Reserve Bank-Wire to the account of the Collateral
Agent designated by it for such purpose] and (ii) [take appropriate action so
that the applicable Federal Reserve Bank through which such Underlying
Securities have been purchased will reflect such transfer and the Pledge by
appropriate entries in its records in accordance with Applicable Treasury
Regulations] [take appropriate action to reflect such transfer and the Pledge by
appropriate entries in its records]. In addition, the execution and delivery
hereof by the Purchase Contract Agent and the Collateral Agent shall constitute
(i) the notification to the Collateral Agent (as bailee or otherwise) of the
Pledge and (ii) an acknowledgment by the Collateral Agent (as third party in
possession or otherwise) of the Pledge and of its holding of such Underlying
Securities subject to the Pledge, in each case, for purposes of perfecting the
Pledge under [Applicable Treasury Regulations and other] applicable law,
including, to the extent applicable, the Uniform Commercial Code as adopted and
in effect in any applicable jurisdiction. The pledge provided in this Section 2
is herein referred to as the "Pledge" and the Underlying Securities subject to
the Pledge, excluding any Underlying Securities released from the Pledge as
provided in Section 4 hereof, are hereinafter referred to as the "Pledged
Securities." Subject to the Pledge, the Holders from time to time of the
Securities shall have full beneficial ownership of the Underlying Securities
constituting a part of such Securities.

         Section 3. Distribution of Principal and Interest.

         All payments of principal of, or interest on, any Underlying Securities
constituting part of the Securities received by the Collateral Agent shall be
paid by the Collateral Agent by wire transfer in same day funds no later than
____________, New York City time on the Business Day such interest payment is
received by the Collateral Agent (provided that in the event such interest
payment is received by the Collateral Agent on a day that is not a Business Day
or after ____________, New York City time, on a Business Day, then such payment
shall be made no later than ____________, New York City time, on the next
succeeding Business Day) (i) in the case of (A) interest payments and (B) any
principal payments with respect to any Underlying Securities that have been
released from the Pledge pursuant to Section 4 hereof, to the Purchase Contract
Agent to the account designated by it for such purpose and (ii) in the case of
principal payments on any Pledged Securities, to the Company, in full
satisfaction of the respective obligations of the Holders

                                       3
<PAGE>

of the Securities of which such Pledged Securities are a part under the Purchase
Contracts forming a part of such Securities. All such payments received by the
Purchase Contract Agent as provided herein shall be applied by the Purchase
Contract Agent pursuant to the provisions of the Purchase Contract Agreement.
If, notwithstanding the foregoing, the Purchase Contract Agent shall receive any
payments of principal on account of any Pledged Securities, the Purchase
Contract Agent shall hold the same as trustee of an express trust for the
benefit of the Company (and promptly deliver over to the Company) for
application to the obligations of the Holders of the Securities of which such
Underlying Securities are a part under the Purchase Contracts relating to the
Securities of which such Underlying Securities are a part, and such Holders
shall acquire no right, title or interest in any such payments of principal so
received.

         Section 4. Release of Pledged Securities.

         (a) Upon notice to the Collateral Agent by the Company or the Purchase
Contract Agent that there has occurred a Termination Event, the Collateral Agent
shall release all Pledged Securities from the Pledge and shall transfer all such
Underlying Securities, free and clear of any lien, pledge or security interest
created hereby, to the Purchase Contract Agent.

         (b) Upon notice to the Collateral Agent by the Purchase Contract Agent
that one or more Holders of Securities have elected to effect Early Settlement
of their respective obligations under the Purchase Contracts forming a part of
such Securities in accordance with the terms of the Purchase Contracts and the
Purchase Contract Agreement, and that the Purchase Contract Agent has received
from such Holders, and paid to the Company, the related Early Settlement Amounts
pursuant to the terms of the Purchase Contracts and the Purchase Contract
Agreement and that all conditions to such Early Settlement have been satisfied,
then the Collateral Agent shall release from the pledge the Pledged Securities
with a principal amount equal to the product of (i) the Stated Amount times (ii)
the number of such Purchase Contracts as to which such Holders have elected to
effect Early Settlement.

         (c) Transfers of Underlying Securities pursuant to Section 4(a) or 4(b)
shall be by Federal Reserve Bank-Wire or in another appropriate manner, (i) if
the Collateral Agent shall have received such notification at or prior to
____________, New York City time, on a Business Day, then no later than
____________, New York City time, on such Business Day and (ii) if the
Collateral Agent shall have received such notification on a day that is not a
Business Day or after ____________, New York City time, on a Business Day, then
no later than ____________, New York City time, on the next succeeding Business
Day.

         Section 5. Rights and Remedies.

         (a) The Collateral Agent shall have all of the rights and remedies with
respect to the Pledged Securities of a secured party under the Uniform
Commercial Code as in effect in the State of New York (the "Code") (whether or
not said Code is in effect in the jurisdiction where the rights and remedies are
asserted) and such additional rights and remedies to which a secured party is
entitled under the laws in effect in any jurisdiction where any rights and
remedies hereunder may be asserted.

         (b) Without limiting any rights or powers otherwise granted by this
Agreement to the Collateral Agent, in the event the Collateral Agent is unable
to make payments to the Company on

                                       4
<PAGE>

account of principal payments of any Pledged Securities as provided in Section 3
hereof in satisfaction of the obligations of the Holder of the Securities of
which such Pledged Securities are a part under the Purchase Contracts forming a
part of such Securities, the Collateral Agent shall have and may exercise, with
reference to such Pledged Securities and such obligations of such Holder, any
and all of the rights and remedies available to a secured party under the Code
after default by a debtor, and as otherwise granted herein or under any other
law.

         (c) Without limiting any rights or powers otherwise granted by this
Agreement to the Collateral Agent, the Collateral Agent is hereby irrevocably
authorized to receive and collect all payments of principal of or interest on
the Pledged Securities.

         (d) The Purchase Contract Agent agrees that, from time to time, upon
the written request of the Collateral Agent, the Purchase Contract Agent shall
execute and deliver such further documents and do such other acts and things as
the Collateral Agent may reasonably request in order to maintain the Pledge, and
the perfection and priority thereof, and to confirm the rights of the Collateral
Agent hereunder.

         Section 6. The Collateral Agent.

         The Collateral Agent and the Company hereby agree between themselves as
follows (it being understood and agreed that neither the Purchase Contract Agent
nor any Holder of Securities shall have any rights under this Section 6):

         (a) Appointment, Powers and Immunities. The Collateral Agent shall act
as agent for the Company hereunder with such powers as are specifically vested
in the Collateral Agent by the terms of this Agreement, together with such other
powers as are reasonably incidental thereto. The Collateral Agent: (i) shall
have no duties or responsibilities except those expressly set forth in this
Agreement and no implied covenants or obligations shall be inferred from this
Agreement against the Collateral Agent, nor shall the Collateral Agent be bound
by the provisions of any agreement by any party hereto beyond the specific terms
hereof; (ii) shall not be responsible to the Company for any recitals contained
in this Agreement, or in any certificate or other document referred to or
provided for in, or received by it under, this Agreement, the Securities or the
Purchase Contract Agreement, or for the value, validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement (other than as
against the Collateral Agent), the Securities or the Purchase Contract Agreement
or any other document referred to or provided for herein or therein or for any
failure by the Company or any other Person (except the Collateral Agent) to
perform any of its obligations hereunder or thereunder; (iii) shall not be
required to initiate or conduct any litigation or collection proceedings
hereunder (except pursuant to directions furnished under Section 6(b) hereof);
(iv) shall not be responsible for any action taken or omitted to be taken by it
hereunder or under any other document or instrument referred to or provided for
herein or in connection herewith or therewith, except for its own negligence;
and (v) shall not be required to advise any party as to selling or retaining, or
taking or refraining from taking any action with respect to, any securities or
other property deposited hereunder. No provision of this Agreement shall require
the Collateral Agent to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder. In no
event shall the Collateral Agent be liable for any amount in excess of the value
of the Pledged Securities.

                                       5
<PAGE>

         (b) Instructions of the Company. The Company shall have the right, by
one or more instruments in writing executed and delivered to the Collateral
Agent, to direct the time, method and place of conducting any proceeding for any
right or remedy available to the Collateral Agent, or of exercising any power
conferred on the Collateral Agent, or to direct the taking or refraining from
taking of any action authorized by this Agreement; provided, however, that (i)
such direction shall not conflict with the provisions of any law or of this
Agreement and (ii) the Collateral Agent shall be adequately indemnified as
provided herein. Nothing in this Section 6(b) shall impair the right of the
Collateral Agent in its discretion to take any action or omit to take any action
which it deems proper and which is not inconsistent with such direction.

         (c) Reliance by Collateral Agent. The Collateral Agent shall be
entitled to rely upon any certification, order, judgment, opinion, notice or
other communication (including, without limitation, any thereof by telephone,
telecopy, telex, telegram or cable) believed by it to be genuine and correct and
to have been signed or sent by or on behalf of the proper Person or Persons
(without being required to determine the correctness of any fact stated
therein), and upon advice and statements of legal counsel and other experts
selected by the Collateral Agent. As to any matters not expressly provided for
by this Agreement, the Collateral Agent shall in all cases be fully protected in
acting, or in refraining from acting, hereunder in accordance with instructions
given by the Company in accordance with this Agreement.

         (d) Rights in Other Capacities. The Collateral Agent and its affiliates
may (without having to account therefor to the Company) accept deposits from,
lend money to, make investments in and generally engage in any kind of banking,
trust or other business with the Purchase Contract Agent and any Holder of
Securities (and any of their subsidiaries or affiliates) as if it were not
acting as the Collateral Agent, and the Collateral Agent and its affiliates may
accept fees and other consideration from the Purchase Contract Agent and any
Holder of Securities without having to account for the same to the Company,
provided that the Collateral Agent covenants and agrees with the Company that
the Collateral Agent shall not accept, receive or permit there to be created in
its favor any security interest, lien or other encumbrance of any kind in or
upon the Pledged Securities.

         (e) Non-Reliance on Collateral Agent. The Collateral Agent shall not be
required to keep itself informed as to the performance or observance by the
Purchase Contract Agent or any Holder of Securities of this Agreement, the
Purchase Contract Agreement, the Securities or any other document referred to or
provided for herein or therein or to inspect the properties or books of the
Purchase Contract Agent or any Holder of Securities. The Collateral Agent shall
not have any duty or responsibility to provide the Company with any credit or
other information concerning the affairs, financial condition or business of the
Purchase Contract Agent or any Holder of Securities (or any of their affiliates)
that may come into the possession of the Collateral Agent or any of its
affiliates.

         (f) Compensation and Indemnity. The Company agrees: (i) to pay the
Collateral Agent from time to time reasonable compensation for all services
rendered by its hereunder and (ii) to indemnify the Collateral Agent for, and to
hold it harmless against, any loss, liability or expense incurred without
negligence or bad faith on its part, arising out of or in connection with the
acceptance or administration of its powers and duties under this Agreement,
including the costs and expenses of defending itself against any claim or
liability in connection with the exercise or performance of such powers and
duties.

                                       6
<PAGE>

         (g) Failure to Act. In the event of any ambiguity in the provisions of
this Agreement or any dispute between or conflicting claims by or among the
undersigned and/or any other person or entity with respect to any funds or
property deposited hereunder, the Collateral Agent shall be entitled, at its
sole option, to refuse to comply with any and all claims, demands or
instructions with respect to such property or funds so long as such dispute or
conflict shall continue, and the Collateral Agent shall not be or become liable
in any way to any of the undersigned for its failure or refusal to comply with
such conflicting claims, demands or instructions. The Collateral Agent shall be
entitled to refuse to act until either (i) such conflicting or adverse claims or
demands shall have been finally determined by a court of competent jurisdiction
or settled by agreement between the conflicting parties as evidenced in a
writing, satisfactory to the Collateral Agent or (ii) the Collateral Agent shall
have received security or an indemnity satisfactory to the Collateral Agent
sufficient to save the Collateral Agent harmless from and against any and all
loss, liability or expense which the Collateral Agent may incur by reason of its
acting. The Collateral Agent may in addition elect to commence an interpleader
action or seek other judicial relief or orders as the Collateral Agent may deem
necessary. Notwithstanding anything contained herein to the contrary, the
Collateral Agent shall not be required to take any action that is in its opinion
contrary to law or to the terms of this Agreement, or which would in its opinion
subject it or any of its officers, employees or directors to liability.

         (h) Resignation of Collateral Agent. Subject to the appointment and
acceptance of a successor Collateral Agent as provided below, (i) the Collateral
Agent may resign at any time by giving notice thereof to the Company and the
Purchase Contract Agent, (ii) the Collateral Agent may be removed at any time by
the Company and (iii) if the Collateral Agent fails to perform any of its
material obligations hereunder in any material respect for a period of not less
than 20 days after receiving notice of such failure by the Purchase Contract
Agent and such failure shall be continuing, the Collateral Agent may be removed
by the Purchase Contract Agent. The Purchase Contract Agent shall promptly
notify the Company of any removal of the Collateral Agent pursuant to clause
(iii) of the immediately preceding sentence. Upon any such resignation or
removal, the Company shall have the right to appoint a successor Collateral
Agent. If no successor Collateral Agent shall have been so appointed and shall
have accepted such appointment within 30 days after the retiring Collateral
Agent's giving of notice of resignation or such removal, then the retiring
Collateral Agent may petition any court of competent jurisdiction for the
appointment of a successor Collateral Agent. The Collateral Agent shall be a
bank which has an office in New York, New York with a combined capital and
surplus of at least $50,000,000. Upon the acceptance of any appointment as
Collateral Agent hereunder by a successor Collateral Agent, such successor
Collateral Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Collateral Agent, and the
retiring Collateral Agent shall take all appropriate action to transfer any
money and property held by it hereunder (including the Pledged Securities) to
such successor Collateral Agent. The retiring Collateral Agent shall, upon such
succession, be discharged from its duties and obligations as Collateral Agent
hereunder. After any retiring Collateral Agent's resignation hereunder as
Collateral Agent, the provisions of this Section 6 shall continue in effect for
its benefit in respect of any actions taken or omitted to be taken by it while
it was acting as the Collateral Agent.

         (i) Right to Appoint Agent or Advisor. The Collateral Agent shall have
the right to appoint agents or advisors in connection with any of its duties
hereunder, and the Collateral Agent shall not be liable for any action taken or
omitted by such agents or advisors selected in good faith.

                                       7
<PAGE>

         (j) Survival. The provisions of this Section 6 shall survive
termination of this Agreement and the resignation or removal of the Collateral
Agent.

         Section 7. Amendment.

         (a) Amendment Without Consent of Holders. Without the consent of any
Holders, the Company, the Collateral Agent and the Purchase Contract Agent, at
any time and from time to time, may amend this Agreement, in form satisfactory
to the Company, the Collateral Agent and the Purchase Contract Agent, for any of
the following purposes:

         (i) to evidence the succession of another Person to the Company, and
     the assumption by any such successor of the covenants of the Company; or

         (ii) to add to the covenants of the Company for the benefit of the
     Holders, or to surrender any right or power herein conferred upon the
     Company; or

         (iii) to evidence and provide for the acceptance of appointment
     hereunder by a successor Collateral Agent or Purchase Contract Agent; or

         (iv) to cure any ambiguity, to correct or supplement any provisions
     herein which may be inconsistent with any other such provisions herein, or
     to make any other provisions with respect to such matters or questions
     arising under this Agreement, provided such action shall not adversely
     affect the interests of the Holders.

         (b) Amendment with Consent of Holders. With the consent of the Holders
of not less than a majority of the Outstanding Units, by Act of said Holders
delivered to the Company, the Agent and the Collateral Agent, the Company, when
authorized by a Board Resolution, the Agent and the Collateral Agent may amend
this Agreement for the purpose of modifying in any manner the provisions of this
Agreement or the rights of the Holders in respect of the Securities; provided,
however, that no such supplemental agreement shall, without the consent of the
Holder of each Outstanding Unit affected thereby,

         (i) change the amount or type of Underlying Securities underlying a
     Security, impair the right of the Holder of any Security to receive
     interest payments on the Underlying Securities or otherwise adversely
     affect the Holder's rights in or to such Underlying Securities; or

         (ii) otherwise effect any action that would require the consent of the
     Holder of each Outstanding Unit affected thereby pursuant to the Purchase
     Contract Agreement if such action were effected by an agreement
     supplemental thereto; or

         (iii)reduce the percentage of Outstanding Units the consent of whose
     Holders is required for any such amendment. It shall not be necessary for
     any Act of Holders under this Section to approve the particular form of any
     proposed amendment, but it shall be sufficient if such Act shall approve
     the substance thereof.

         (c) Execution of Amendments. In executing any amendment permitted by
this Section, the Collateral Agent and the Purchase Contract Agent shall be
entitled to receive and (subject to Section 6(a) hereof, with respect to the
Collateral Agent, and Section 7(a) of the Purchase Contract

                                       8
<PAGE>

Agreement, with respect to the Purchase Contract Agent) shall be fully protected
in relying upon, an Opinion of Counsel stating that the execution of such
amendment is authorized or permitted by this Agreement.

         (d) Effect of Amendments. Upon the execution of any amendment under
this Section, this Agreement shall be modified in accordance therewith, and such
amendment shall form a part of this Agreement for all purposes; and every Holder
of Unit Certificates theretofore or thereafter authenticated, executed on behalf
of the Holders and delivered under the Purchase Contract Agreement shall be
bound thereby.

         (e) Reference to Amendments. Unit Certificates authenticated, executed
on behalf of the Holders and delivered after the execution of any amendment
pursuant to this Section may, and shall if required by the Collateral Agent or
the Purchase Contract Agent, bear a notation in form approved by the Purchase
Contract Agent and the Collateral Agent as to any matter provided for in such
amendment. If the Company shall so determine, new Unit Certificates so modified
as to conform, in the opinion of the Collateral Agent, the Purchase Contract
Agent and the Company, to any such amendment may be prepared and executed by the
Company and authenticated, executed on behalf of the Holders and delivered by
the Purchase Contract Agent in accordance with the Purchase Contract Agreement
in exchange for Outstanding Unit Certificates.

         Section 8. Miscellaneous.

         (a) No Waiver. No failure on the part of the Collateral Agent or any of
its agents to exercise, and no course of dealing with respect to, and no delay
in exercising, any right, power or remedy hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise by the Collateral Agent or any
of its agents of any right, power or remedy hereunder preclude any other or
further exercise thereof or the exercise of any other right, power or remedy.
The remedies herein are cumulative and are not exclusive of any remedies
provided by law.

         (b) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

         (c) Notices. All notices, requests, consents and other communications
provided for herein (including, without limitation, any modifications of, or
waivers or consents under, this Agreement) shall be given or made in writing
(including, without limitation, by telecopy) delivered to the intended recipient
at the "Address for Notices" specified below its name on the signature pages
hereof or, as to any party, at such other address as shall be designated by such
party in a notice to the other parties. Except as otherwise provided in this
Agreement, all such communications shall be deemed to have been duly given when
transmitted by telecopier or personally delivered or, in the case of a mailed
notice, upon receipt, in each case given or addressed as aforesaid.

         (d) Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the respective successors and assigns of the Company,
the Collateral Agent and the Purchase Contract Agent, and the Holders from time
to time of the Securities, by their acceptance of the same, shall be deemed to
have agreed to be bound by the provisions hereof and to have ratified the
agreements of, and the grant of the Pledge hereunder by, the Purchase Contract
Agent.

                                       9
<PAGE>

         (e) Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument, and any of the parties hereto may execute this Agreement by signing
any such counterpart.

         (f) Severability. If any provision hereof is invalid and unenforceable
in any jurisdiction, then, to the fullest extent permitted by law, (i) the other
provisions hereof shall remain in full force and effect in such jurisdiction and
shall be liberally construed in order to carry out the intentions of the parties
hereto as nearly as may be possible and (ii) the invalidity or unenforceability
of any provision hereof in any jurisdiction shall not affect the validity or
enforceability of such provision in any other jurisdiction.

         (g) Expenses, etc. The Company agrees to reimburse the Collateral Agent
for: (a) all reasonable out-of-pocket costs and expenses of the Collateral Agent
(including, without limitation, the reasonable fees and expenses of counsel to
the Collateral Agent), in connection with (i) the negotiation, preparation,
execution and delivery or performance of this Agreement and (ii) any
modification, supplement or waiver of any of the terms of this Agreement; (b)
all reasonable costs and expenses of the Collateral Agent (including, without
limitation, reasonable fees and expenses of counsel) in connection with (i) any
enforcement or proceedings resulting or incurred in connection with causing any
Holder of Securities to satisfy its obligations under the Purchase Contracts
forming a part of the Securities and (ii) the enforcement of this Section 8(g);
and (c) all transfer, stamp, documentary or other similar taxes, assessments or
charges levied by any governmental or revenue authority in respect of this
Agreement or any other document referred to herein and all costs, expenses,
taxes, assessments and other charges incurred in connection with any filing,
registration, recording or perfection of any security interest contemplated
hereby.

         (h) Security Interest Absolute. All rights of the Collateral Agent and
security interests hereunder, and all obligations of the Holders from time to
time of the Securities hereunder, shall be absolute and unconditional
irrespective of:

         (i) any lack of validity or enforceability of any provision of the
     Purchase Contracts or the Securities or any other agreement or instrument
     relating thereto;

         (ii) any change in the time, manner or place of payment of, or any
     other term of, or any increase in the amount of, all or any of the
     obligations of Holders of Securities under the related Purchase Contracts,
     or any other amendment or waiver of any term of, or any consent to any
     departure from any requirement of, the Purchase Contract Agreement or any
     Purchase Contract or any other agreement or instrument relating thereto; or

         (iii) any other circumstance which might otherwise constitute a defense
     available to, or discharge of, a borrower, a guarantor or a pledgor.

                                       10
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.

                               FOREST CITY ENTERPRISES, INC.

                               By:
                                  ----------------------------------------------
                               Name:
                               Title:

                               Address for Notices:

                               1100 Terminal Tower
                               50 Public Square
                               Cleveland, OH  44113-2203
                               Attention:
                               Telecopy: ( ) ___-____

                               -------------------------------------------------
                               as Purchase Contract Agent and as
                               attorney-in-fact of the Holders from
                               time to time of the Units

                               By:
                                  ----------------------------------------------
                               Name:
                               Title:

                               Address for Notices:
                               [address]
                               Attention:
                               Telecopy: ( ) ___-____

                               -------------------------------------------------
                               as Collateral Agent

                               By:
                                  ----------------------------------------------
                               Name:
                               Title:

                               Address for Notices:
                                [address]
                               Attention:
                               Telecopy: ( ) ___-____

                                       11

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