Document:

AMENDMENT NO. 2 TO WARRANT AGREEMENT

     This AMENDMENT NO. 2 (this "Amendment") to the Warrant Agreement,  dated as
of August 28, 1997,  as amended , is made and entered into as of May 28, 1999 by
and between Wellsford Real Properties,  Inc., a Maryland  corporation  (together
with its successors and permitted  assigns,  the  "Company"),  and United States
Trust Company of New York (together  with its successors and permitted  assigns,
the "Warrant Agent").

                                 R E C I T A L S
                                 ---------------

     WHEREAS,  the  Company and the  Warrant  Agent are parties to that  certain
Warrant  Agreement,   dated  as  of  August  28,  1997  (the  "Original  Warrant
Agreement"),  pursuant  to which the  Company  had issued to WHWEL  Real  Estate
Limited  Partnership,  a Delaware limited  partnership  ("WHWEL"),  five million
(5,000,000) warrants (the "Warrants") to purchase shares of the Company's common
stock;

     WHEREAS,  the Company  and the  Warrant  Agent  entered  into that  certain
Amendment  No.  1 to  Warrant  Agreement,  dated  as of July  16,  1998  ("First
Amendment";  the Original  Warrant  Agreement as amended by the First Amendment,
the "Warrant Agreement"),  to reflect the transactions whereby WHWEL,  Wellsford
Commercial  Properties  Trust, a Maryland real estate  investment trust ("WCPT")
and other parties formed  Wellsford/Whitehall  Properties II, L.L.C., a Delaware
limited liability company ("WWP II");

     WHEREAS,  WHWEL, W/W Group Holdings,  L.L.C., a Delaware limited  liability
company  ("Holding Co."),  WXI/WWG Realty,  L.L.C., a Delaware limited liability
company,  WCPT and other members of WWPII have formed,  and contributed  certain
assets  to,   Wellsford/Whitehall  Group,  L.L.C.   (collectively,   the  "Group
Transactions");

     WHEREAS, in connection with the Group Transactions, WHWEL desires to assign
its interest in the Warrants to Holding Co.; and

     WHEREAS,  the  parties  hereto  desire to amend the  Warrant  Agreement  to
reflect the transactions described above and certain other matters.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth  below,  and  other  good and  valuable  consideration,  the  receipt  and
sufficiency  of which are hereby  acknowledged,  the Company  and Warrant  Agent
hereby agree as follows:

     1.  Definitions.  All  capitalized  terms used and not defined herein shall
have the meanings given to such terms in the Warrant Agreement.

                              Exhibit 4.41 Page 1
<PAGE>

     2.  Amendment  to  Warrant  Agreement.

     (a) The terms "Initial Holder", "Membership Unit", and "Wellsford/Whitehall
II LLC Agreement",  as defined in Section 1 of the Warrant  Agreement,  shall be
deleted in their entirety and replaced with the following terms and definitions:

     (i) "'Initial Holder' shall mean Holding Co."

     (ii)   "'Membership   Unit'  shall  have  the  meaning  set  forth  in  the
Wellsford/Whitehall Group LLC Agreement."

     (iii)  "'Wellsford/Whitehall  Group LLC Agreement'  shall mean that certain
Limited Liability Company Operating Agreement of Wellsford/Whitehall Group dated
as of May ___,  1999, as such  agreement may be amended or modified from time to
time."

     All  further  references  in the  Warrant  Agreement  to the term  "Initial
Holder",  "Membership Unit" and  "Wellsford/Whitehall II LLC Agreement" shall be
deemed  to  refer  to  the  terms  "Initial   Holder",   "Membership  Unit"  and
"Wellsford/Whitehall Group LLC Agreement",  respectively,  as each is defined in
this Amendment.

     (b) The following defined terms and definitions shall
be  inserted  into  Section  1 of the  Warrant  Agreement  in their  appropriate
alphabetical order:

     (i) "'Deemed Value Per Membership Unit' shall have the meaning set forth in
the Wellsford/Whitehall Group LLC Agreement."

     (ii)  "'Holding  Co.' shall  mean W/W Group  Holdings,  L.L.C.,  a Delaware
limited liability company."

     (iii)  "'Registration  Rights Agreement' shall mean the Registration Rights
Agreement  dated as of May ___, 1999, by and between the Company and the Initial
Holder, as such agreement may be amended or modified from time to time."

                              Exhibit 4.41 Page 2
<PAGE>

     (iii)  "'Wellsford/Whitehall  Group' shall mean Wellsford/Whitehall  Group,
L.L.C., a Delaware limited liability company."

     (c) The  following  defined  terms and  definitions  shall be deleted  from
Section 1 of the Warrant  Agreement:  "Company Shares",  "Demand  Registration",
"Eligible Common Stock",  "Eligible  Securities",  "Favorable Term",  "Piggyback
Registration",  "Prospectus",  "Registration Demand", "Registration Procedures",
"Registration  Rights",  "Registration  Statement",  "Representative",  "Saracen
Members",  "Saracen  Registration  Rights Agreement",  "selling holder",  "Shelf
Registration",  "Shelf  Registration  Statement",  "Subsequent  Warrant Holder",
"Takedown", "underwriter" and "underwriting or agency agreement".

     (d) The last  sentence of Article 1 is hereby  deleted in its  entirety and
replaced with the following language:

     "Certain terms used principally in Article 6 are defined in that Section."

     (e)  Section  3.1(b) of the  Warrant  Agreement  is hereby  deleted  in its
entirety and replaced with the following:

     "(b) When exercised in accordance with subparagraph (c) below, each Warrant
shall  entitle  the Holder to  purchase,  and the  Company  shall be required to
deliver, a number of shares of Common Stock equal to the Shares Amount in effect
on the day such Warrant is exercised in accordance  with Section  3.1(c),  at an
exercise  price (the  "Exercise  Price") of, at the sole election of the Holder,
either (x) a number of Membership  Unit(s) equal to the quotient (rounded to the
nearest one  ten-thousandth  (0.0001)) of (i) $10.00  divided by (ii) the Deemed
Value Per Membership  Unit or (y) $10.00 in cash;  provided,

                              Exhibit 4.41 Page 3
<PAGE>

however,  that the Company may, at its sole election,  pay to the Holder of each
Warrant so exercised in respect of any one or more of such  Warrants  cash in an
amount  equal to the Cash  Amount  in lieu of  delivering  the  shares of Common
Stock. When multiple  Warrants are exercised,  the Exercise Price may consist of
cash,  Membership Units or any combination  thereof. For the avoidance of doubt,
the Holder may procure  Membership  Units for the payment of the Exercise  Price
from its Affiliates or other third-parties.  Notwithstanding the foregoing,  the
Holder may not elect to deliver  Membership Units as the Exercise Price upon the
exercise of any Warrant before August 28, 1999."

     (f) Article 7 of the  Warrant  Agreement  is hereby  amended to read in its
entirety as follows:

                                    ARTICLE 7

                       REGISTRATION RIGHTS AND PROCEDURES

     Section 7.1. The Company  acknowledges  that it is subject to the terms and
conditions of the Registration Rights Agreement.

     (g) Article 8 of the  Warrant  Agreement  is hereby  amended to read in its
entirety as follows:

                                    ARTICLE 8

     Intentionally Deleted

     (h) Section 13.9 of the Warrant  Agreement is hereby amended to read in its
entirety as follows:

     Section  13.9  Remedies.  In the event of a breach by the  Company  or by a
Holder of any of their  obligations  under this  Agreement,  each  Holder or the
Company,  as the case may be, in  addition to being  entitled  to  exercise  all
rights  granted by law,  including

                              Exhibit 4.41 Page 4
<PAGE>

recovery of damages,  will be  entitled  to specific  performance  of its rights
under this  Agreement.  The Company and each Holder agree that monetary  damages
would not be adequate  compensation  for any loss incurred by reason of a breach
by it of any of the provisions of this Agreement and hereby further agrees that,
in the event of any action for specific  performance  in respect of such breach,
it shall waive the defense that a remedy at law would be adequate.

     3. Persons  Benefitting.  This Amendment shall be binding upon and inure to
the  benefit  of  any  Holders  (each  of  whom  is  an  intended   third  party
beneficiary),   the  Company  and  the  Warrant  Agent,   and  their  respective
successors,  assigns,  beneficiaries,  executors and administrators.  Nothing in
this  Amendment is intended or  construed to confer upon any Person,  other than
the Company,  the Warrant Agent and the Holders (and such  successors,  assigns,
beneficiaries,  executors and administrators),  any right, remedy or claim under
or by reason this Amendment or any part hereof.

     4. Continued Force and Effect.  The Warrant  Agreement,  as amended by this
Amendment,  and each and every provision,  covenant,  representation,  warranty,
condition and right contained therein,  as amended by this Amendment,  is hereby
ratified and affirmed as of the date  hereof,  and shall  continue in full force
and effect.

     5.   Counterparts.   This   Amendment  may  be  executed  in  one  or  more
counterparts,  each of which shall constitute an original and all of which, when
taken together, shall constitute one agreement.

     6.  Headings and  Captions.  All  headings  and captions  contained in this
Amendment  hereto are  inserted for  convenience  only and shall not be deemed a
part of this Amendment.

     7. Governing Law. THIS AMENDMENT AND ALL RIGHTS ARISING  HEREUNDER SHALL BE
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

                              Exhibit 4.41 Page 5
<PAGE>

                            [SIGNATURE PAGE FOLLOWS]

                              Exhibit 4.41 Page 6
<PAGE>

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

                         WELLSFORD REAL PROPERTIES, INC.

                         By:   /s/ Edward Lowenthal
                               --------------------
                               Name: Edward Lowenthal
                               Title:   President

                         UNITED STATES TRUST COMPANY OF
                           NEW YORK, Warrant Agent

                         By:   /s/ Cynthia Chaney
                               ------------------
                               Name: Cynthia Chaney
                               Title:   Assistant Vice President

                              Exhibit 4.41 Page 7
<PAGE>WARRANT AGREEMENT

     This  WARRANT  AGREEMENT is made and entered into as of May 28, 1999 by and
between Wellsford Real Properties,  Inc., a Maryland corporation  (together with
its successors and permitted  assigns,  the "Company"),  and United States Trust
Company of New York (together with its  successors  and permitted  assigns,  the
"Warrant Agent").

                                 R E C I T A L S
                                 ---------------

     WHEREAS,  W/W Group Holdings,  L.L.C., a Delaware limited liability company
("Holding  Co."),  WHWEL Real Estate  Limited  Partnership,  a Delaware  limited
partnership  ("WHWEL"),  WXI/WWG Realty,  L.L.C., a Delaware  limited  liability
company,   Wellsford  Commercial   Properties  Trust,  a  Maryland  real  estate
investment trust ("WCPT"), and other parties have agreed to form, and contribute
certain  assets  to,  Wellsford/Whitehall  Group,  L.L.C.,  a  Delaware  limited
liability  company  ("Wellsford/Whitehall  Group"),  subject  to the  concurrent
issuance  by the  Company  to  WHWEL of one  hundred  fifty  thousand  (150,000)
warrants to purchase shares of the Company's Common Stock;

     WHEREAS,  WHWEL has directed the Company to issue such 150,000  warrants to
Holding Co.; and

     WHEREAS,  the Company  desires  the  Warrant  Agent to act on behalf of the
Company,  and the  Warrant  Agent is so willing to act, in  connection  with the
issuance, transfer or exercise of Warrants and other matters as provided herein.

     NOW, THEREFORE, in consideration of the mutual agreements
hereinafter contained,  and other good and valuable  consideration,  the receipt
and  sufficiency of which are hereby  acknowledged,  the parties hereto agree as
follows:

                                    ARTICLE 1

                                   DEFINITIONS

     Section 1.1.  Definitions.  For purposes of this  Agreement,  the following
terms shall have the following respective meanings:

     "Affiliate"  of  any  Person  shall  mean  any  other  Person  directly  or
indirectly  controlling  or  controlled  by or under  direct or indirect  common
control with such Person.  For purposes of this definition,  "control" when used
with respect to any Person means the power to direct the management and policies
of such Person, directly or indirectly,  whether through the ownership of

                              Exhibit 4.42 Page 1
<PAGE>

voting  securities,  by contract or otherwise,  and the terms  "controlling" and
"controlled" have meanings correlative to the foregoing.

     "Agreement"  shall  mean this  Warrant  Agreement,  as it may be amended or
modified from time to time.

     "Articles of Incorporation"  shall mean the Company's Articles of Amendment
and Restatement, as amended from time to time.

     "Business  Day"  shall mean any day other  than a  Saturday,  Sunday or any
other day on which banks in New York are authorized or required to close.

     "Cash  Amount" shall mean,  with respect to any Warrant,  an amount of cash
equal to the product of (i) the Closing Price of the Common Stock as of the date
of exercise of such Warrant  multiplied  by (ii) the Shares  Amount in effect on
such date.

     "Close of Business" shall mean, for any day, 5:00 P.M., New York City time,
on such date.

     "Closing  Price" shall mean the last reported sale price regular way on the
day in question or, in case no such sale takes place on such day, the average of
the reported  closing bid and asked prices  regular way of the Common Stock,  in
each case on the American  Stock Exchange  ("AMEX"),  or, if the Common Stock is
not  listed or  admitted  to  trading  on the AMEX,  on the  principal  national
securities  exchange or quotation  system on which the Common Stock is listed or
admitted  to  trading or quoted,  or, if not  listed or  admitted  to trading or
quoted on any national  securities  exchange or quotation system, the average of
the closing  bid and asked  prices of the Common  Stock in the  over-the-counter
market on the day in  question  as reported  by the  National  Quotation  Bureau
Incorporated, or a similarly generally accepted reporting service, or, if not so
available in such manner,  as  furnished by any AMEX member firm  selected  from
time to time by the board of directors  of the Company for the  purpose.  In the
case of a closing  price of Common Stock on the AMEX,  such price shall mean the
closing price reported in the AMEX composite  transactions  reporting system (as
reported in the New York City  edition of The Wall Street  Journal or, if not so
reported, another authoritative source).

     "Common  Stock" shall mean the common stock,  par value $.01 per share,  of
the Company and any other stock of the Company  into which such common stock may
be  converted  or  reclassified  (other  than  stock of the  Company  into which
unissued  Common Stock has been  reclassified)  or that may be issued in respect
of, in exchange for, or in  substitution  of, such common stock by reason of any
stock  splits,   stock  dividends,   distributions,   mergers,   consolidations,
recapitalizations  or other like  events.  For purposes of Section 6.1, the term
"Common Stock" shall include the Class A common stock, $.01 par value per share,
of the Company.

     "Company"  shall have the meaning set forth in the first  paragraph of this
Agreement.

     "current  market  price"  shall  have the  meaning  set  forth  in  Section
6.1(a)(vii).

                              Exhibit 4.42 Page 2
<PAGE>

     "Deemed  Value Per  Membership  Unit"  shall have the  meaning set forth in
Section 1 of the Wellsford/Whitehall Group LLC Agreement.

     "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

     "Exercise Price" shall have the meaning set forth in Section 3.1(b).

     "Expiration  Date"  shall  mean the fifth  anniversary  of the date of this
Agreement,  provided  that if such date is not a Business Day, the next Business
Day thereafter.

     "Holders"  shall  mean,  collectively,  the  holders  from  time to time of
Warrant Certificates and "Holder" shall mean any such holder.

     "Holding  Co." shall have the meaning set forth in the second  paragraph of
this Agreement.

     "Initial Holder" shall mean Holding Co.

     "Membership   Unit"   shall   have   the   meaning   set   forth   in   the
Wellsford/Whitehall Group LLC Agreement.

     "Partial Spin-Off" shall have the meaning set forth in Section 6.1(a)(iv).

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

     "Registration   Rights  Agreement"  shall  mean  the  Registration   Rights
Agreement,  dated as of May ___,  1999,  between  the  Company  and the  Initial
Holder, as such agreement may be amended or modified from time to time .

     "SEC" shall mean the Securities and Exchange Commission.

     "SEC  Reports"  shall  mean  the  annual  and  quarterly  reports  and  the
information,  documents,  and other reports that the Company is required to file
with the SEC pursuant to Section 13(a) or 15(d) of the Exchange Act.

     "Securities Act" shall mean the Securities Act of 1933, as amended.

     "Shares Amount" shall mean, with respect to any Warrant, 0.826446 shares of
Common Stock, subject to all adjustments made pursuant to Article 6 hereof on or
prior to the date of exercise of such Warrant.

     "Trading Day" shall mean a day on which the principal  national  securities
exchange  on which the shares of Common  Stock are listed or admitted to trading
is open for the  transaction  of

                              Exhibit 4.42 Page 3
<PAGE>

business or, if the shares of Common Stock are not listed or admitted to trading
on any national securities exchange, any Business Day.

     "Transfer Agent" shall have the meaning set forth in Section 11.1.

     "Underlying  Common  Stock"  shall mean all shares of Common  Stock  either
issuable upon the exercise of the Warrants or  previously  issued upon the prior
exercise of the Warrants.

     "Warrants" shall mean the warrants issued by the Company on the date hereof
pursuant to this  Agreement,  and any additional  warrants  issued in accordance
with this Agreement.

     "Warrant  Certificates"  shall mean the  certificates  substantially in the
form of Exhibit A evidencing the Warrants.

     "Warrant  Agent" shall have the meaning set forth in the first paragraph of
this Agreement.

     "WCPT"  shall have the  meaning set forth in the second  paragraph  of this
Agreement.

     "Wellsford/Whitehall  Group" shall mean the meaning set forth in the second
paragraph of this Agreement.

     "Wellsford/Whitehall  Group LLC Agreement" shall mean the limited liability
company  agreement of  Wellsford/Whitehall  Group dated as of May, ___ 1999,  as
such agreement may be amended or modified from time to time.

     Certain terms used principally in Article 6 are defined in that Section.

                                    ARTICLE 2

                           ORIGINAL ISSUE OF WARRANTS

     Section 2.1. Form of Warrant Certificates. Warrant Certificates shall be in
registered form only, substantially in the form attached hereto as Exhibit A and
dated the date on which countersigned by the Warrant Agent.

     Pending the  preparation  of  definitive  Warrant  Certificates,  temporary
Warrant  Certificates  may  be  issued,  which  may  be  printed,  lithographed,
typewritten,  mimeographed or otherwise produced, which will be substantially of
the  tenor of the  definitive  Warrant  Certificates  in lieu of which  they are
issued and which are not required to be countersigned by the Warrant Agent.

                  If temporary Warrant Certificates are issued, the Company will
cause definitive Warrant Certificates to be prepared without unreasonable delay.
After the preparation of definitive Warrant Certificates,  the temporary Warrant
Certificates shall be exchangeable for definitive Warrant  Certificates upon the
surrender of the temporary  Warrant  Certificates to the Warrant Agent,  without

                              Exhibit 4.42 Page 4
<PAGE>

charge  to  the  Initial  Holder.  Until  so  exchanged  the  temporary  Warrant
Certificates  shall in all respects be entitled to the same benefits  under this
Agreement as definitive Warrant Certificates.

     Section 2.2.  Execution and Delivery of Warrant Certificates.
                   ----------------------------------------------

     (a)   Simultaneously   with  the  execution  of  this  Agreement,   Warrant
Certificates evidencing one hundred fifty thousand (150,000) Warrants,  shall be
executed  on  behalf of the  Company  as  provided  in  paragraph  (b) below and
delivered to the Warrant Agent for  countersignature and the Warrant Agent shall
thereupon  countersign and deliver such Warrant  Certificates  to Whitehall.  In
addition, the Warrant Agent is irrevocably authorized to countersign and deliver
Warrant Certificates as required by Sections 3.1(e), 5.1 and 5.2.

     (b) Warrant  Certificates shall be executed on behalf of the Company by its
Chairman, Chief Executive Officer or President,  either manually or by facsimile
signature printed thereon.  Warrant  Certificates  shall be countersigned by the
Warrant Agent, either manually or by facsimile signature printed thereupon,  and
shall not be valid for any purpose unless so countersigned.  In case any officer
of the  Company  whose  signature  shall  have  been  placed  upon  any  Warrant
Certificate   shall   cease  to  be  such   officer   of  the   Company   before
countersignature  by the  Warrant  Agent and issue and  delivery  thereof,  such
Warrant  Certificates may,  nevertheless,  be countersigned by the Warrant Agent
and issued and  delivered  with the same force and effect as though  such person
had not ceased to be such officer of the Company.

                                    ARTICLE 3

                              EXERCISE OF WARRANTS

     Section 3.1.  Exercise Procedures.
                   -------------------

     (a) Each Warrant  shall be  exercisable  as provided in this Section 3 from
time  to time  on any  Business  Day  prior  to the  Close  of  Business  on the
Expiration Date.

     (b) When exercised in accordance with  subparagraph (c) below, each Warrant
shall  entitle  the Holder to  purchase,  and the  Company  shall be required to
deliver, a number of shares of Common Stock equal to the Shares Amount in effect
on the day such Warrant is exercised in accordance  with Section  3.1(c),  at an
exercise  price (the  "Exercise  Price") of, at the sole election of the Holder,
either (x) a number of Membership  Unit(s) equal to the quotient (rounded to the
nearest one  ten-thousandth  (0.0001)) of (i) $10.00  divided by (ii) the Deemed
Value Per Membership  Unit or (y) $10.00 in cash;  provided,  however,  that the
Company  may,  at its  sole  election,  pay to the  Holder  of each  Warrant  so
exercised in respect of any one or more of such Warrants cash in an amount equal
to the Cash  Amount in lieu of  delivering  the  shares of  Common  Stock.  When
multiple  Warrants  are  exercised,  the  Exercise  Price may  consist  of cash,
Membership  Units or any combination  thereof.  For the avoidance of doubt,  the
Holder may procure  Membership  Units for the payment of the Exercise Price from
its Affiliates or other third-parties. Notwithstanding the foregoing, the Holder
may not  elect to  deliver  Membership  Units  as the  Exercise  Price  upon the
exercise of any Warrant before August 28, 1999.

                              Exhibit 4.42 Page 5
<PAGE>

     (c) In order to exercise a Warrant,  the Holder must  surrender the Warrant
Certificate  evidencing  such  Warrant to the  Warrant  Agent,  with the form of
election on the reverse of or attached to the Warrant Certificate duly executed,
together  with any  required  payment  or  delivery,  as the case may be, of the
Exercise  Price,  to the Warrant  Agent at the  principal  office of the Warrant
Agent in New York,  New York.  In the event Holder  elects to tender  Membership
Units as provided in subparagraph  (b) above, all such Membership Units (and the
corresponding Interest (as defined in Wellsford/Whitehall  Group LLC Agreement))
shall be  assigned by the Warrant  Agent to the  Company.  In the event a Holder
elects to pay the cash  Exercise  Price as provided in  subparagraph  (b) above,
such Holder shall transfer to the Warrant Agent,  together with the  surrendered
Warrant Certificate, the required payment in full of the Exercise Price for each
Warrant which is exercised.  Any such payment of the Exercise  Price shall be by
certified or official  bank check or wire  transfer of same day funds,  and such
funds shall be  deposited  by the Warrant  Agent for the account of the Company,
unless otherwise instructed in writing by the Company.

     (d)  Upon  surrender  of a  Warrant  Certificate  in  conformity  with  the
foregoing, the Warrant Agent shall thereupon promptly notify the Company. In the
event  the  Company   elects  to  deliver  the  Shares  Amount  as  provided  in
subparagraph  (b)  above,  the  Company  shall  transfer  to the  Holder  of the
exercised Warrant share certificates  representing the shares of Common Stock to
which such Holder is entitled and the Holder shall be deemed to own and have all
the rights  associated  with any shares of Common  Stock to which it is entitled
pursuant to this  Agreement  upon the  surrender of any Warrant  Certificate  in
accordance  with this  Section  3.1. If the  Company  elects to deliver the Cash
Amount as provided in subparagraph  (b) above,  the Company shall deliver to the
Holder of the exercised  Warrant payment of the Cash Amount in same day funds to
the account  specified  on the form of election on the reverse of or attached to
the Warrant  Certificate.  The Holder  acknowledges  that the  Company  does not
currently  intend to issue  Common  Stock equal to 20% or more of its  currently
outstanding  Common Stock upon the exercise of any Warrants and, in the event of
such an exercise  that could  result in Common  Stock being  issued in excess of
such limit, the Company will instead deliver the Cash Amount.

     (e) If fewer than all the Warrants represented by a Warrant Certificate are
exercised, such Warrant Certificate shall be surrendered by the Warrant Agent to
the Company with instructions for the issuance of a new Warrant  Certificate and
the Company shall promptly execute such new Warrant Certificate for the Warrants
that were not exercised and deliver the same to the Warrant  Agent.  The Warrant
Agent shall promptly  countersign the new Warrant  Certificate,  register it and
deliver it to the registered Holder thereof.

                                    ARTICLE 4

                       COMPLIANCE WITH THE SECURITIES ACT

     Section 4.1.  Transfers.  The Initial Holder hereby  acknowledges  that the
Warrants  and the shares of Common  Stock  which may be  received by the Initial
Holder  upon  exercise  of any  Warrant  are and  will  be  subject  to  certain
restrictions   on  transfers  under  the  Securities  Act  and  the  regulations
promulgated thereunder.

                              Exhibit 4.42 Page 6
<PAGE>

     Section 4.2. Representations. The Initial Holder has been afforded full and
complete access to all  information and other materials  relating to the Company
and to the offer of the Warrants and has had the  opportunity  to have  answered
any questions it had concerning the Company and the offering of the Warrants.

     The Initial Holder hereby  represents that it is acquiring the Warrants for
its own account for investment and not with a view to the resale or distribution
of any interest therein.

                                    ARTICLE 5

                     REGISTRATION OF TRANSFERS AND EXCHANGES

     Section  5.1.  Generally.  The  Warrant  Certificates  shall be  issued  in
registered  form only.  The Company  shall cause to be kept at the office of the
Warrant Agent a register in which, subject to such reasonable  regulations as it
may prescribe,  the Company shall provide for the  registration of the transfers
or exchanges of the Warrant Certificates as herein provided.

     The Warrant Agent shall from time to time register the transfer or exchange
of any  outstanding  Warrant,  in the  records to be  maintained  by it for that
purpose,  upon surrender of such Warrant. Upon any such registration of transfer
or exchange,  a new Warrant Certificate shall be issued to the transferee in the
case of a transfer or to the Holder  making the  exchange,  and the  surrendered
Warrant  Certificate  shall be canceled by the Warrant Agent.  Canceled  Warrant
Certificates  shall be disposed of by the Warrant Agent in  accordance  with its
customary  procedures and the Warrant Agent shall deliver a certificate of their
destruction to the Company.

     All  Warrant  Certificates  issued  upon any  registration  of  transfer or
exchange  shall  be  valid  obligations  of the  Company,  evidencing  the  same
obligations,  and entitled to the same  benefits  under this  Agreement,  as the
Warrant Certificates surrendered for such registration of transfer or exchange.

     Every  Warrant  Certificate  surrendered  for  registration  of transfer or
exchange  shall (if so required  by the  Company or the  Warrant  Agent) be duly
endorsed,  or be  accompanied  by a  written  instrument  of  transfer  in  form
contained in Exhibit B hereto or such other form satisfactory to the Company and
the Warrant  Agent,  duly  executed by the Holder  thereof or his attorney  duly
authorized in writing.

     No  service  charge  shall  be made to a  Holder  for any  registration  of
transfer  or  exchange  of the  Warrant  Certificates.  The  Company may require
payment 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
the Warrant Certificates.

     Any  Warrant  Certificate  when  duly  endorsed  in blank  shall be  deemed
negotiable  and when any Warrant  Certificate  shall have been so endorsed,  the
Holder  thereof may be treated by the Company,  the Warrant  Agent and all other
persons  dealing  therewith as the absolute owner thereof for

                              Exhibit 4.42 Page 7
<PAGE>

any purpose and as the Person entitled to either exercise the rights represented
thereby or to transfer the Warrants  represented  thereby on the register of the
Company   maintained  by  the  Warrant   Agent,   any  notice  to  the  contrary
withstanding;  but until such  transfer  on such  register,  the Company and the
Warrant  Agent may  treat the  registered  Holder  thereof  as the owner for all
purposes.

     Section 5.2. Mutilated,  Destroyed, Lost or Stolen Warrant Certificates. If
any mutilated  Warrant  Certificate  is  surrendered to the Warrant Agent or the
Company,  or if the Warrant Agent receives  evidence to its  satisfaction of the
destruction, loss or theft of any Warrant Certificate, and there is delivered to
the  Company  and  the  Warrant  Agent  such  security  or  indemnity  as may be
reasonably required by them to save each of them harmless,  then, in the absence
of notice to the Company or the Warrant Agent that such Warrant  Certificate has
been acquired by a bona fide  purchaser,  the Company shall execute and upon its
written request the Warrant Agent shall countersign and deliver, in exchange for
any such mutilated Warrant Certificate,  or in lieu of any such destroyed,  lost
or stolen Warrant Certificate, a new Warrant Certificate of like tenor and for a
like  aggregate  number  of  Warrants.  Upon  the  issuance  of any new  Warrant
Certificate under this Section 5.2, the Company may require the payment of a sum
sufficient to cover any tax or other governmental  charge that may be imposed in
relation thereto and other expenses  (including the reasonable fees and expenses
of the Warrant Agent) in connection therewith.

     Every new  Warrant  Certificate  executed  and  delivered  pursuant to this
Section 5.2 in lieu of any destroyed,  lost or stolen Warrant  Certificate shall
constitute an original contractual obligation of the Company, whether or not the
destroyed,  lost or stolen Warrant  Certificate shall be at any time enforceable
as provided  herein,  and shall be entitled  to the  benefits of this  Agreement
equally and  proportionately  with any and all other Warrant  Certificates  duly
executed  and  delivered  hereunder.  The  provisions  of this  Section  5.2 are
exclusive and shall preclude (to the extent lawful) all other rights or remedies
with respect to the replacement of mutilated,  destroyed, lost or stolen Warrant
Certificates.

                                    ARTICLE 6

                                   ADJUSTMENTS

     Section 6.1.      Adjustment upon Certain Transactions.
                       ------------------------------------

     (a) The Shares  Amount (and, by virtue  thereof,  the Cash Amount) shall be
subject to adjustment from time to time as follows:

     (i) In case the Company shall pay or make a dividend or other  distribution
on its Common Stock  exclusively in Common Stock or shall pay or make a dividend
or other distribution on any other class or series of stock of the Company which
dividend or distribution  includes Common Stock,  the Shares Amount in effect at
the  opening  of  business  on  the  date  following  the  date  fixed  for  the
determination  of  stockholders  entitled  to  receive  such  dividend  or other
distribution  shall be increased by multiplying such Shares Amount by a fraction
of  which  the  denominator  shall be the  number  of  shares  of  Common  Stock
outstanding  at the Close of Business  on the date fixed for such  determination
and the

                              Exhibit 4.42 Page 8
<PAGE>

numerator  shall be the sum of such  number of shares  plus 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  subparagraph (i),
the number of shares of Common Stock at any time  outstanding  shall not include
shares  held in the  treasury  of the  Company.  The  Company  shall not pay any
dividend or make any distribution on shares of Common Stock held in the treasury
of the Company.

     (ii) In case the Company shall pay or make a dividend or other distribution
on its Common Stock  consisting  exclusively of, or shall otherwise issue to all
holders of its Common Stock, rights or warrants entitling the holders thereof to
subscribe for or purchase  shares of Common Stock at a price per share less than
the current market price per share (determined as provided in subparagraph (vii)
of  this  Section  6.1(a))  of the  Common  Stock  on the  date  fixed  for  the
determination of stockholders  entitled to receive such rights or warrants,  the
Shares Amount in effect at the opening of business on the day following the date
fixed for such determination shall be increased by multiplying the Shares Amount
by a fraction of which the  denominator  shall be the number of shares of Common
Stock  outstanding  at  the  Close  of  Business  on the  date  fixed  for  such
determination  plus the number of shares of Common Stock which the  aggregate of
the offering  price of the total number of shares of Common Stock so offered for
subscription  or purchase  would  purchase at such current  market price and the
numerator shall be the number of shares of Common Stock outstanding at the Close
of Business on the date fixed for such  determination  plus the number of shares
of Common Stock 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 subparagraph (ii),
the number of shares of Common Stock at any time  outstanding  shall not include
shares held in the  treasury  of the  Company.  The Company  shall not issue any
rights or warrants in respect of shares of Common  Stock held in the treasury of
the  Company.  In case any rights or warrants  referred to in this  subparagraph
(ii) in  respect  of which an  adjustment  shall  have  been made  shall  expire
unexercised  within 60 days after the same shall have been distributed or issued
by the  Company,  the  Shares  Amount  shall be  readjusted  at the time of such
expiration  to the Shares Amount that would have been in effect if no adjustment
had been made on account of the  distribution or issuance of such expired rights
or warrants.

     (iii) In case outstanding shares of Common Stock shall be subdivided into a
greater  number of shares of Common  Stock,  the Shares  Amount 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 of Common Stock shall each be combined into a smaller number
of  shares of Common  Stock,  the  Shares  Amount  in effect at the  opening  of
business  on the day  following  the day upon  which  such  combination  becomes
effective shall be proportionately decreased, such reduction or increase, 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.  No reduction in the Shares Amount may occur except  pursuant to this
subparagraph (iii).

                              Exhibit 4.42 Page 9
<PAGE>

     (iv) Subject to the last two sentences of this  subparagraph  (iv), in case
the Company  shall,  by dividend or otherwise,  distribute to all holders of its
Common  Stock  evidences of its  indebtedness,  shares of any class or series of
stock,  cash or  assets  (including  securities,  but  excluding  any  rights or
warrants referred to in subparagraph  (ii) of this Section 6.1(a),  any dividend
or  distribution  paid  exclusively  in cash and any  dividend  or  distribution
referred to in subparagraph (i) of this Section 6.1(a)), the Shares Amount shall
be increased so that the same shall equal the number  determined by  multiplying
the Shares Amount in effect immediately prior to the effectiveness of the Shares
Amount increase  contemplated by this  subparagraph  (iv) by a fraction of which
the  denominator  shall be the current  market  price per share  (determined  as
provided in  subparagraph  (vii) of this Section  6.1(a)) of the Common Stock on
the date fixed for the payment of such  distribution (the "Reference Date") less
the fair market value (as  determined  in good faith by the Board of  Directors,
whose  determination  shall be  conclusive  and described in a resolution of the
Board of Directors),  on the Reference  Date, of the portion of the evidences of
indebtedness,  shares of stock, cash and assets so distributed applicable to one
share of Common Stock and the numerator  shall be such current  market price per
share of the Common Stock,  such increase to become effective  immediately prior
to the opening of business on the day following the Reference Date. If the Board
of Directors  determines the fair market value of any  distribution for purposes
of this  subparagraph  (iv) by  reference  to the actual or when issued  trading
market for any  securities  comprising  such  distribution,  it must in doing so
consider  the prices in such market over the same period used in  computing  the
current market price per share of Common Stock pursuant to subparagraph (vii) of
this Section  6.1(a).  For purposes of this  subparagraph  (iv), any dividend or
distribution  that  includes  shares of Common  Stock or rights or  warrants  to
subscribe for or purchase  shares of Common Stock shall be deemed  instead to be
(1) a dividend or distribution of the evidences of indebtedness, cash, assets or
shares of stock  other  than  such  shares  of  Common  Stock or such  rights or
warrants (making any Shares Amount increase required by this subparagraph  (iv))
immediately  followed by (2) a dividend or distribution of such shares of Common
Stock or such rights or warrants  (making any  further  Shares  Amount  increase
required by  subparagraph  (i) or (ii) of this  Section  6.1(a),  except (A) the
Reference Date of such dividend or distribution as defined in this  subparagraph
(iv)  shall  be  substituted  as  "the  date  fixed  for  the  determination  of
stockholders entitled to receive such dividend or other distribution,  "the date
fixed for the  determination of stockholders  entitled to receive such rights or
warrants"  and "the date fixed for such  determination"  within  the  meaning of
subparagraphs  (i) and (ii) of this Section  6.1(a) and (B) any shares of Common
Stock included in such dividend or distribution shall not be deemed "outstanding
at the Close of  Business on the date fixed for such  determination"  within the
meaning of subparagraph (i) of this Section 6.1(a)). Notwithstanding anything to
the  contrary  contained  in this  Article  6, the  Company  may one time in any
twelve-month  period  pay  a  dividend  or  distribution  on  its  Common  Stock
exclusively in the form of securities of (or other  ownership  interests in) any
subsidiary of the Company (a "Partial  Spin-Off")  without any adjustment to the
Shares Amount on account  thereof if the fair market value  (determined  in good
faith by the Board of Directors,  whose  determination  shall be conclusive  and
described in a resolution  of the Board of  Directors)  of the Partial  Spin-Off
distributed  per share of Common  Stock  outstanding  on the date fixed for such
determination  does  not  exceed  8% of  the  current  market  price  per  share
(determined  as provided in  subparagraph  (vii) of this

                              Exhibit 4.42 Page 10
<PAGE>

Section 6.1(a) of the Common Stock on the Trading Day next preceding the date of
declaration of such dividend).

     (v) In case the Company shall pay or make a dividend or other  distribution
on its Common Stock exclusively in cash (excluding, in the case of any quarterly
cash dividend on the Common Stock,  the portion thereof that does not exceed the
greater  of (x) the per  share  amount  of the  next  preceding  quarterly  cash
dividend on the Common  Stock (as adjusted to  appropriately  reflect any of the
events referred to in subparagraphs (i), (ii), (iii), (iv), (v) and (vi) of this
Section  6.1(a)),  and (y) the per share amount which,  when multiplied by four,
and added to the fair market value (as  determined  in the last sentence of (iv)
above) of any Partial Spin-Off  distributed per share of Common Stock during the
preceding twelve-month period, is equal to or less than 8% of the current market
price per share  (determined as provided in  subparagraph  (vii) of this Section
6.1(a))  of the  Common  Stock on the  Trading  Day next  preceding  the date of
declaration of such dividend),  the Shares Amount shall be increased so that the
same shall  equal the number  determined  by  multiplying  the Shares  Amount in
effect  immediately  prior to the  effectiveness  of the Shares Amount  increase
contemplated  by this  subparagraph  (v) by a fraction of which the  denominator
shall  be the  current  market  price  per  share  (determined  as  provided  in
subparagraph (vii) of this Section 6.1(a)) of the Common Stock on the date fixed
for the payment of such  distribution less the amount of cash so distributed and
not excluded as provided  above  applicable to one share of Common Stock and the
numerator  shall be such current  market price per share of Common  Stock,  such
increase to become effective immediately prior to the opening of business on the
day following the date fixed for the payment of such distribution.

     (vi) In case a tender  or  exchange  offer  made by the  Company  or by any
subsidiary of the Company for all or any portion of the  Company's  Common Stock
shall expire and such tender or exchange  offer shall involve the payment by the
Company or such subsidiary of  consideration  per share of Common Stock having a
fair market value (as determined in good faith by the Board of Directors,  whose
determination  shall be conclusive and described in a resolution of the Board of
Directors) at the last time (the "Expiration  Time") tenders or exchanges may be
made  pursuant to such tender or exchange  offer (as it shall have been amended)
that  exceeds  the current  market  price per share  (determined  as provided in
subparagraph  (vii) of this  Section  6.1(a)) of the Common Stock on the Trading
Day next succeeding the Expiration Time, the Shares Amount shall be increased so
that the same shall equal the number determined by multiplying the Shares Amount
in effect  immediately  prior to the effectiveness of the Shares Amount increase
contemplated  by this  subparagraph  (vi) by a fraction of which the denominator
shall be the  number  of  shares  of Common  Stock  outstanding  (including  any
tendered or exchanged  shares) at the Expiration  Time multiplied by the current
market price per share  (determined  as provided in  subparagraph  (vii) of this
Section  6.1(a)) of the Common  Stock on the  Trading  Day next  succeeding  the
Expiration  Time and the numerator shall be the sum of (x) the fair market value
(determined as aforesaid) of the aggregate consideration payable to stockholders
based on the acceptance (up to any maximum  specified in the terms of the tender
or exchange offer) of all shares validly tendered or exchanged and not withdrawn
as of the  Expiration  Time  (the  shares  deemed  so  accepted,  up to any such
maximum, being referred to as the "Purchased Shares") and (y) the product of the
number of shares of Common Stock  outstanding (less any Purchased Shares) at the

                              Exhibit 4.42 Page 11
<PAGE>

Expiration  Time and the current market price per share  (determined as provided
in subparagraph (vii) of this Section 6.1(a)) of the Common Stock on the Trading
Day next  succeeding  the  Expiration  Time,  such increase to become  effective
immediately prior to the opening of business on the day following the Expiration
Time.

     (vii) For the purpose of any computation under  subparagraph (ii), (iv) and
(v) of this Section 6.1(a), the "current market price" per share of Common Stock
on any date in question  shall be deemed to be the average of the daily  Closing
Prices for the five consecutive  Trading Days prior to and including the date in
question;  provided, however, that (1) if the "ex" date (as hereinafter defined)
for  any  event  (other  than  the  issuance  or  distribution   requiring  such
computation)  that  requires  an  adjustment  to the Shares  Amount  pursuant to
subparagraph  (i), (ii),  (iii),  (iv), (v) or (vi) above ("Other Event") occurs
after the fifth  Trading Day prior to the day in question  and prior to the "ex"
date for the issuance or distribution  requiring such  computation (the "Current
Event"),  the Closing Price for each Trading Day prior to the "ex" date for such
Other  Event  shall  be  adjusted  by  multiplying  such  Closing  Price  by the
reciprocal  of the  fraction  by which the Shares  Amount is so  required  to be
adjusted  as a result of such  Other  Event,  (2) if the "ex" date for any Other
Event  occurs  after the "ex" date for the Current  Event and on or prior to the
date in question,  the Closing  Price for each Trading Day on and after the "ex"
date for such Other Event shall be adjusted by multiplying such Closing Price by
the  fraction  by which the Shares  Amount is so  required  to be  adjusted as a
result of such Other  Event,  (3) if the "ex" date of any Other Event  occurs on
the "ex" date for the Current  Event,  one of those  events  shall be deemed for
purposes of clauses (1) and (2) of this  proviso to have an "ex" date  occurring
prior to the "ex"  date for the  other  event,  and (4) if the "ex" date for the
Current Event is on or prior to the date in question,  after taking into account
any  adjustment  required  pursuant to clause (2) of this  proviso,  the Closing
Price for each  Trading  Day on or after  such "ex" date  shall be  adjusted  by
adding  thereto the amount of any cash and the fair market  value on the date in
question  (as  determined  in good faith by the Board of  Directors  in a manner
consistent with any  determination  of such value for purposes of paragraph (iv)
or (v) of this Section  6.1(a),  whose  determination  shall be  conclusive  and
described  in a  resolution  of the Board of  Directors)  of the  portion of the
rights,  warrants,  evidences of  indebtedness,  shares of stock or assets being
distributed  applicable  to one share of Common  Stock.  For the  purpose of any
computation under  subparagraph (vi) of this Section 6.1(a),  the current market
price per share of Common  Stock on any date in  question  shall be deemed to be
the average of the daily  Closing  Prices for such date in question and the next
two succeeding Trading Days;  provided,  however,  that if the "ex" date for any
event (other than the tender or exchange offer requiring such  computation) that
requires an adjustment to the Shares Amount pursuant to subparagraph  (i), (ii),
(iii),  (iv), (v) or (vi) above occurs after the Expiration  Time for the tender
or  exchange  offer  requiring  such  computation  and on or prior to the second
Trading Day following  the date in question,  the Closing Price for each Trading
Day on and  after  the "ex"  date for such  other  event  shall be  adjusted  by
multiplying  such Closing Price by the fraction by which the Shares Amount is so
required to be adjusted as a result of such other  event.  For  purposes of this
paragraph,  the term "ex" date,  (1) when used with  respect to any  issuance or
distribution,  means the first date on which the Common Stock trades regular way
on the relevant  exchange or in the relevant market from which the Closing Price
was obtained  without the right to receive such  issuance or  distribution,  (2)
when used with respect to any  subdivision  or

                              Exhibit 4.42 Page 12
<PAGE>

combination of shares of Common Stock,  means the first date on which the Common
Stock  trades  regular way on such  exchange or in such market after the time at
which such subdivision or combination becomes effective,  and (3) when used with
respect  to any  tender or  exchange  offer,  means the first  date on which the
Common  Stock  trades  regular way on such  exchange or in such market after the
Expiration Time of such offer.

     (viii) The Company may make such increase in the Shares Amount, in addition
to those required by subparagraphs  (i), (ii), (iii), (iv), (v) and (vi) of this
Section  6.1(a),  as it considers to be advisable to avoid or diminish an income
tax to holders of Common Stock or rights to purchase Common Stock resulting from
any dividend or  distribution  of stock (or rights to acquire stock) or from any
event treated as such for income tax purposes. The Company from time to time may
increase the Shares Amount by any amount for any period of time if the period is
at least twenty days,  the increase is  irrevocable  during the period,  and the
Board of  Directors  of the Company  shall have made a  determination  that such
increase would be in the best interest of the Company, which determination shall
be conclusive. Whenever the Shares Amount is increased pursuant to the preceding
sentence,  the Company  shall mail to Holders a notice of the  increase at least
fifteen days prior to the date the increased  Shares  Amount takes  effect,  and
such notice shall state the increased Shares Amount and the period it will be in
effect.

     (ix) No  adjustment  in the Shares  Amount  shall be  required  unless such
adjustment  would  require an  increase or decrease of at least 1% in the Shares
Amount;  provided,  however,  that  any  adjustments  which  by  reason  of this
subparagraph (ix) are not required to be made shall be carried forward and taken
into account in any subsequent adjustment.

     (x) Whenever the Shares Amount is adjusted as herein provided:

     (1) the Company shall compute the adjusted  Shares Amount and shall prepare
a certificate signed by the Chief Financial Officer of the Company setting forth
the adjusted Shares Amount and showing in reasonable detail the facts upon which
such adjustment is based, and such certificate shall forthwith be filed with the
Warrant Agent; and

     (2) a notice stating the Shares Amount have been adjusted and setting forth
the  adjusted  Shares  Amount  shall  forthwith  be  required,  and as  soon  as
practicable  after it is required  such notice shall be mailed by the Company to
all Holders.

     (b) No Fractional  Shares.  No  fractional  shares of Common Stock shall be
issued upon exercise of the  Warrants.  If more than one Warrant is exercised by
the same  Holder  at one time,  the  number of full  shares  issuable  upon such
exercise  shall be computed on the basis of the aggregate  number of Warrants so
exercised.  Instead of any fractional share of Common Stock that would otherwise
be issuable to a holder upon exercise of the  Warrants,  the Company shall pay a
cash  adjustment in respect of such  fractional  share in an amount equal to the
same  fraction of the Closing  Price per share of Common Stock as of the date of
such exercise.

     (c) Reclassification, Consolidation, Merger or Sale of Assets. In the event
that  the  Company  shall  be a  party  to any  transaction  (including  without
limitation any recapitalization or

                              Exhibit 4.42 Page 13
<PAGE>

reclassification  of the Common Stock (other than a change in par value, or from
par value to no par value,  or from no par value to par value, or as a result of
a  subdivision   or   combination  of  the  Common  Stock  and  other  than  the
reclassification of unissued Common Stock into other stock of the Company),  any
consolidation  of the Company  with,  or merger of the Company  into,  any other
Person, any merger of another person into the Company (other than a merger which
does not result in a reclassification,  conversion,  exchange or cancellation of
outstanding shares of Common Stock of the Company),  any sale or transfer of all
or  substantially  all of the  assets of the  Company  or any  compulsory  share
exchange)  pursuant  to which the Common  Stock is  converted  into the right to
receive other securities,  cash or other property,  then lawful provisions shall
be made as part of the  terms of such  transaction  whereby  the  holder of each
Warrant  then  outstanding  shall have the right  thereafter  to  exercise  such
Warrant  only for (i) in the case of any such  transaction  other  than a Common
Stock  Fundamental  Change and subject to funds being legally available for such
purpose under  applicable law at the time of such exercise,  the kind and amount
of securities,  cash and other property  receivable  upon such  transaction by a
holder of the  number of shares of Common  Stock of the  Company  for which such
Warrant could have been exercised  immediately  prior to such  transaction,  and
(ii) in the case of a Common Stock Fundamental Change,  common stock of the kind
received by holders of Common Stock as a result of such Common Stock Fundamental
Change in an amount determined pursuant to the provisions of Section 6.1(e). The
Company or the Person formed by such consolidation or resulting from such merger
or which  acquires such assets or which  acquires the Company's  shares,  as the
case  may be,  shall  execute  an  agreement  in form and  substance  reasonably
acceptable to the Holders  evidencing  such right.  Such agreement shall provide
for  adjustments  which,  for events  subsequent to the  effective  date of such
agreement,  shall  be  as  nearly  equivalent  as  may  be  practicable  to  the
adjustments provided for in this Article 6. The above provisions shall similarly
apply to each and every successive transaction of the foregoing type.

     (d) Prior Notice of Certain Events. In case:

     (i) the Company shall (1) declare any dividend (or any other  distribution)
on its Common Stock, other than (A) a dividend payable in shares of Common Stock
or (B) a dividend  payable in cash in an amount not  greater  than its  retained
earnings other than any special or nonrecurring or other extraordinary  dividend
or (2) declare or authorize a redemption  or  repurchase  of in excess of 10% of
the then-outstanding shares of Common Stock; or

     (ii) the  Company  shall  authorize  the  granting to all holders of Common
Stock of rights or warrants to  subscribe  for or purchase any share of stock of
any class or series or of any other rights or warrants; or

     (iii) of any  reclassification of Common Stock (other than a subdivision or
combination of the  outstanding  Common Stock, or a change in par value, or from
par value to no par value,  or from no par value to par value and other than the
reclassification  of unissued Common Stock into other stock of the Company),  or
of any  consolidation  or merger to which the  Company  is a party and for which
approval of any shareholders of the Company shall be required, or of the sale or
transfer  of all or  substantially  all of the  assets of the  Company or of any
compulsory  share  exchange  whereby the Common  Stock is  converted  into other
securities, cash or other property; or

                              Exhibit 4.42 Page 14
<PAGE>

     (iv) of the voluntary or involuntary dissolution, liquidation or winding up
of the Company;

then the Company  shall cause to be filed with the Warrant Agent and shall cause
to be mailed to the Holders,  at least 10 days prior to the applicable record or
effective date hereinafter  specified,  a notice stating (x) the date on which a
record (if any) is to be taken for the purpose of such  dividend,  distribution,
redemption,  repurchase,  rights or warrants or, if a record is not to be taken,
the date as of which the  holders of Common  Stock of record to be  entitled  to
such dividend, distribution, redemption, rights or warrants are to be determined
or (y) the date on which such  reclassification,  consolidation,  merger,  sale,
transfer, share exchange, dissolution,  liquidation or winding up is expected to
become effective, and the date as of which it is expected that holders of Common
Stock of record  shall be entitled to exchange  their shares of Common Stock for
securities,  cash or other  property  deliverable  upon  such  reclassification,
consolidation,  merger, sale, transfer, share exchange, dissolution, liquidation
or winding up (but no  failure to mail such  notice or any defect  therein or in
the mailing  thereof shall affect the validity of the corporate  action required
to be specified in such notice).

     (e) Adjustments in Case of Fundamental  Changes.  Notwithstanding any other
provision  in this  Article 6 to the  contrary,  if any  Fundamental  Change (as
defined in Section  6.1(f))  occurs,  then the Shares  Amount in effect  will be
adjusted  immediately  after such  Fundamental  Change as  described  below.  In
addition,  in the event of a Common  Stock  Fundamental  Change  (as  defined in
Section 6(f)),  each Warrant shall be exercisable  solely in exchange for common
stock of the kind and amount  received by holders of Common Stock as a result of
such Common Stock Fundamental Change as more specifically provided below in this
Section 6.1(e).

     For purposes of  calculating  any  adjustment  to be made  pursuant to this
Section  6.1(e) in the event of a  Fundamental  Change,  immediately  after such
Fundamental Change in the case of a Common Stock Fundamental  Change, the Shares
Amount in effect immediately prior to such Common Stock Fundamental  Change, but
after giving  effect to any other prior  adjustments  effected  pursuant to this
Section 6, shall  thereupon be adjusted by  multiplying  such Shares Amount by a
fraction of which the denominator shall be the Purchaser Stock price (as defined
in Section  6.1(f)) and the numerator shall be the Applicable  Price;  provided,
however,  that in the event of a Common  Stock  Fundamental  Change in which (A)
100% by value of the  consideration  received  by a holder  of  Common  Stock is
common stock of the successor,  acquiror or other third party (and cash, if any,
is paid with respect to any fractional  interests in such common stock resulting
from such Common Stock Fundamental Change) and (B) all of the Common Stock shall
have been exchanged  for,  converted into or acquired for common stock (and cash
with respect to fractional interests) of the successor,  acquiror or other third
party,  the  Shares  Amount in effect  immediately  prior to such  Common  Stock
Fundamental Change shall thereupon be adjusted by multiplying such Shares Amount
by the number of shares of common  stock of the  successor,  acquiror,  or other
third party received by a shareholder  for one share of Common Stock as a result
of such Common Stock Fundamental Change.

     (f)  Definitions.  The following  definitions  shall apply to terms used in
this Article 6:

                              Exhibit 4.42 Page 15
<PAGE>

     (i)  "Applicable  Price"  shall  mean  (1)  in  the  event  of a  Non-Stock
Fundamental  Change in which the holders of the Common Stock  receive only cash,
the amount of cash received by a  shareholder  for one share of Common Stock and
(2) in the event of any other Non-Stock  Fundamental  Change or any Common Stock
Fundamental  Change, the average of the daily Closing Prices of the Common Stock
for the ten consecutive  Trading Days prior to and including the record date for
the determination of the holders of Common Stock entitled to receive securities,
cash or other property in connection with such Non-Stock  Fundamental  Change or
Common Stock Fundamental  Change,  or, if there is no such record date, the date
upon which the holders of the Common  Stock shall have the right to receive such
securities,  cash or other property,  in each case, as adjusted in good faith by
the Board of Directors of the Company to appropriately reflect any of the events
referred to in  subparagraphs  (i), (ii),  (iii),  (iv), (v) and (vi) of Section
6.1(a).

     (ii) "Common Stock Fundamental Change" shall mean any Fundamental Change in
which  more  than 50% by value  (as  determined  in good  faith by the  Board of
Directors  of the  Company) of the  consideration  received by holders of Common
Stock consists of common stock that for each of the ten consecutive Trading Days
referred to with respect to such Fundamental  Change in Section  6.1(f)(i) above
has been  admitted  for  listing or admitted  for  listing  subject to notice of
issuance  on a national  securities  exchange  or quoted on the NASDAQ  National
Market  System;  provided,  however,  that a  Fundamental  Change shall not be a
Common Stock Fundamental Change unless either (1) the Company continues to exist
after the occurrence of such  Fundamental  Change and the  outstanding  Warrants
continue to exist as outstanding  Warrants, or (2) not later than the occurrence
of such  Fundamental  Change,  the  outstanding  Warrants are converted  into or
exchanged  for  warrants  of a  corporation  succeeding  to the  business of the
Company, which warrants have terms identical to those of the Warrants.

     (iii) "Fundamental  Change" shall mean the occurrence of any transaction or
event in connection  with a plan pursuant to which all or  substantially  all of
the Common  Stock  shall be  exchanged  for,  converted  into,  acquired  for or
constitute  solely  the  right to  receive  securities,  cash or other  property
(whether   by  means  of  an  exchange   offer,   liquidation,   tender   offer,
consolidation,  merger,  combination,   reclassification,   recapitalization  or
otherwise);  provided,  however,  in the case of a plan  involving more than one
such transaction or event, for purposes of adjustment of the Shares Amount, such
Fundamental  Change shall be deemed to have occurred when  substantially  all of
the Common  Stock of the Company  shall be exchanged  for,  converted  into,  or
acquired  for or  constitute  solely  the  right to  receive  cash,  securities,
property or other  assets,  but the  adjustment  shall be based upon the highest
weighted average of consideration per share which a holder of Common Stock could
have received in such  transactions or events as a result of which more than 50%
of the Common  Stock of the Company  shall have been  exchanged  for,  converted
into,  or  acquired  for or  constitute  solely  the  rights  to  receive  cash,
securities, property or other assets.

     (iv) "Non-Stock Fundamental Change" shall mean any Fundamental Change other
than a Common Stock Fundamental Change.

                              Exhibit 4.42 Page 16
<PAGE>

     (v)  "Purchaser  Stock Price" shall mean,  with respect to any Common Stock
Fundamental  Change, the average of the daily Closing Prices of the common stock
received in such Common Stock Fundamental Change for the ten consecutive Trading
Days prior to and including the record date for the determination of the holders
of Common Stock  entitled to receive such common stock,  or, if there is no such
record date,  the date upon which the holders of the Common Stock shall have the
right to receive such common  stock,  in each case, as adjusted in good faith by
the Board of Directors of the Company to appropriately reflect any of the events
referred to in  subparagraphs  (i), (ii),  (iii),  (iv), (v) and (vi) of Section
6.1(a);  provided,  however,  if no such Closing  Prices of the common stock for
such Trading Days exist,  then the Purchaser Stock price shall be set at a price
determined in good faith by the Board of Directors of the Company.

     (g) Certain  Additional  Rights.  In case the Company shall, by dividend or
otherwise,  declare or make a  distribution  on its Common Stock  referred to in
Section  6(a)(iv)  or  6(a)(v)  (including,  without  limitation,  dividends  or
distributions  referred to in the last two sentences of Section  6(a)(iv)),  the
holder of each  Warrant,  upon the exercise  thereof  subsequent to the Close of
Business on the date fixed for the  determination  of  shareholders  entitled to
receive such  distribution  and prior to the  effectiveness of the Shares Amount
adjustment  in respect of such  distribution,  shall also be entitled to receive
for each share of Common Stock for which such Warrant is exercised,  the portion
of the shares of Common  Stock,  rights,  warrants,  evidences of  indebtedness,
shares  of stock,  cash and  assets so  distributed  applicable  to one share of
Common Stock;  provided,  however,  that, at the election of the Company  (whose
election  shall be  evidenced by a resolution  of the Board of  Directors)  with
respect to all holders so exercising,  the Company may, in lieu of  distributing
to such  holder  any  portion of such  distribution  not  consisting  of cash or
securities  of the Company,  pay such holder an amount in cash equal to the fair
market value  thereof (as  determined  in good faith by the Board of  Directors,
whose  determination  shall be  conclusive  and described in a resolution of the
Board of Directors).  If any exercise of a Warrant  described in the immediately
preceding  sentence  occurs  prior to the  payment  date for a  distribution  to
holders of Common Stock which the holder of the Warrant so exercised is entitled
to receive in accordance with the immediately  preceding  sentence,  the Company
may  elect  (such  election  to be  evidenced  by a  resolution  of the Board of
Directors)  to  distribute  to such  holder a due bill for the  shares of Common
Stock,  rights,  warrants,  evidences of indebtedness,  shares of stock, cash or
assets to which  such  holder is so  entitled,  provided  that such due bill (i)
meets any applicable  requirements of the principal national securities exchange
or other  market on which the  Common  Stock is then  traded  and (ii)  requires
payment or delivery of such shares of Common Stock, rights, warrants,  evidences
of  indebtedness,  shares  of stock,  cash or  assets no later  than the date of
payment or delivery  thereof to holders of shares of Common Stock receiving such
distribution.

     (h) Reservation of Shares,  Etc. The Company shall at all times reserve and
keep available,  free from preemptive  rights out of its authorized and unissued
stock,  solely for the purpose of allowing  the exercise of the  Warrants,  such
number of shares of its Common Stock as shall from time to time be sufficient to
permit the Company to deliver the Shares Amount in the event all of the Warrants
from time to time  outstanding  were  exercised.  The Company shall from time to
time,  in  accordance  with the  laws of the  State of  Maryland,  increase  the
authorized  number of shares of Common Stock if at any time the number of shares
of  authorized  and unissued  Common Stock shall not be sufficient to permit the
Company to deliver the Shares Amount upon the exercise of all of the

                              Exhibit 4.42 Page 17
<PAGE>

then-outstanding  Warrants  (taking into account the  adjustments  to the Shares
Amount that are provided for herein).

     If any shares of common  stock  required to be reserved for purposes of the
exercise of the Warrants hereunder require  registration with or approval of any
governmental  authority under any Federal or State law before such shares may be
issued upon exercise,  and an exemption  under Section 3(a)(9) of the Securities
Act or similar exemption is not available, the Company will in good faith and as
expeditiously as possible endeavor to cause such shares to be duly registered or
approved  as the case  may be.  If the  Common  Stock is  quoted  on the  NASDAQ
National Market System or listed on any U.S. national securities  exchange,  the
Company will, if permitted by the rules of such  exchange,  list and keep listed
on such exchange,  upon official notice of issuance,  all shares of Common Stock
issuable upon exercise of the Warrants.  The second  sentence of this  paragraph
shall  apply  only when the  Warrants  shall  have  become  freely  transferable
pursuant  to Rule  144(k)  under the  Securities  Act or if the shares of Common
Stock  issuable upon  exercise of the Warrants are exempt from the  registration
requirements  of the Securities Act by operation of an exemption  referred to in
the first sentence of this paragraph.

     (i) Dividend or Interest Reinvestment Plans or Other Plans. Notwithstanding
the foregoing provisions, the issuance of any shares of Common Stock pursuant to
any plan  providing  for the  reinvestment  of dividends or interest  payable on
securities of the Company and the investment of additional  optional  amounts in
shares of Common  Stock under any such plan (a "DRIP"),  and the issuance of any
shares of Common Stock or options or rights to purchase such shares  pursuant to
any  employee or director  benefit plan or program of the Company or pursuant to
any option, warrant, right or exercisable,  exchangeable or convertible security
outstanding  as of the date hereof shall not be deemed to constitute an issuance
of Common Stock or exercisable,  exchangeable  or convertible  securities by the
Company to which any of the adjustment provisions described above applies. There
shall also be no  adjustment of the Shares Amount in case of the issuance of any
stock (or securities  convertible into or exchangeable for stock) of the Company
except as specifically  described in this Article 6. If any action would require
adjustment  of the Shares  Amount  pursuant  to more than one of the  provisions
described above,  only one adjustment shall be made and such adjustment shall be
the amount of adjustment  which has the highest absolute value to holders of the
Warrants.

                                    ARTICLE 7

                       REGISTRATION RIGHTS AND PROCEDURES

     Section 7.1. The Company  acknowledges  that it is subject to the terms and
conditions of the Registration Rights Agreement.

                                    ARTICLE 8

Intentionally Deleted

                                    ARTICLE 9

                              Exhibit 4.42 Page 18
<PAGE>

                                  WARRANT AGENT

     Section 9.1.   Nature of Duties and Responsibilities Assumed.
                    ---------------------------------------------

     (a) The Company  hereby  appoints the Warrant  Agent to act as agent of the
Company as set forth in this  Agreement.  The Warrant Agent hereby  accepts such
appointment  as agent of the Company and agrees to perform  that agency upon the
terms and  conditions  herein set  forth,  by all of which the  Company  and the
Holders, by their acceptance thereof, shall be bound.

     (b) The Warrant Agent shall not by countersigning the Warrant  Certificates
or by any other act  hereunder be deemed to make any  representations  as to (i)
the  validity or  authorization  of the  Warrants  or the  Warrant  Certificates
(except  as to its  countersignature  thereon),  or of any  securities  or other
property delivered upon exercise or tender of any Warrant,  (ii) the accuracy of
the  computation  of the Exercise Price or the number or kind or amount of stock
or other securities or other property  deliverable upon exercise of any Warrant,
or (iii) the  correctness  of the  representations  of the Company  made in such
certificates that the Warrant Agent receives.

     (c) The Warrant Agent shall not have any duty to calculate or determine any
adjustments  with respect either to the Exercise  Price,  the kind and amount of
shares or other  securities  or any  property  receivable  by  Holders  upon the
exercise  or tender of  Warrants,  and the  Warrant  Agent shall have no duty or
responsibility  in determining the accuracy or correctness of such  calculation.
The Warrant  Agent shall not (i) be liable for any recital or  statement of fact
contained  herein,  or in the  Warrant  Certificates,  or for any action  taken,
suffered  or  omitted  by it in  good  faith  on the  belief  that  any  Warrant
Certificate,  or any other  documents or any  signatures are genuine or properly
authorized,  (ii) be  responsible  for any failure on the part of the Company to
comply with any of its covenants and obligations  contained in this Agreement or
in the  Warrant  Certificates,  or (iii) be liable  for any act or  omission  in
connection  with  this  Agreement  except  for its  own  negligence  or  willful
misconduct.

     (d) The Warrant  Agent is hereby  authorized  to accept  instructions  with
respect to the  performance  of its duties  hereunder  from the Chairman,  Chief
Executive  Officer or  President of the Company and to apply to any such officer
for  instructions  (which  instructions  will be promptly  given in writing when
requested)  and the Warrant  Agent  shall not be liable for any action  taken or
suffered to be taken by it in good faith in accordance with the  instructions of
any such officer,  but in its  discretion  the Warrant Agent may in lieu thereof
accept other evidence of such or may require such further or additional evidence
as it may deem reasonable.

     (e) The Warrant Agent may execute and exercise any of the rights and powers
hereby vested in it or perform any duty hereunder either itself or by or through
its attorneys, agents or employees,  provided reasonable care has been exercised
in the selection and in the continued employment of any such attorney,  agent or
employee.  The  Warrant  Agent  shall  not be under  any  obligation  or duty to
institute,  appear in or defend any action,  suit or legal proceeding in respect
hereof,  unless  first  indemnified  to its  reasonable  satisfaction,  but this
provision shall not affect the power of the Warrant Agent to take such action as
the Warrant Agent may consider  proper,  whether with or without such indemnity.
The Warrant Agent shall promptly notify the Company in writing of

                              Exhibit 4.42 Page 19
<PAGE>

any claim made or action,  suit or proceeding  instituted against it arising out
of or in connection with this Agreement.

     (f) The Company will perform, execute,  acknowledge and deliver or cause to
be  performed,  executed,  acknowledged  and  delivered  all such further  acts,
instruments and assurances as may reasonably be required by the Warrant Agent in
order to enable it to carry out or perform its duties under this Agreement.

     (g) The Warrant  Agent shall act solely as agent of the Company  hereunder.
The  Warrant  Agent shall not be liable  except for the failure to perform  such
duties as are  specifically  set  forth  herein,  and no  implied  covenants  or
obligations shall be read into this Agreement  against the Warrant Agent,  whose
duties and  obligations  shall be  determined  solely by the express  provisions
hereof.

     Section 9.2.  Right to Consult  Counsel.  The Warrant Agent may at any time
consult  with  competent  legal  counsel,  and the Warrant  Agent shall incur no
liability  or  responsibility  to the  Company and to the Holders for any action
taken, suffered or omitted by it in good faith in accordance with the opinion or
advice of such counsel.

     Section 9.3.  Compensation and Reimbursement.  The Company agrees to pay to
the Warrant Agent from time to time compensation for all services rendered by it
hereunder as the Company and the Warrant Agent may agree from time to time,  and
to  reimburse  the  Warrant  Agent for  reasonable  expenses  and  disbursements
incurred in connection with the execution and  administration  of this Agreement
(including the  reasonable  compensation  and the expenses of its counsel),  and
further  agrees to  indemnify  the  Warrant  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  and
administration of this Agreement,  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.

     Section 9.4. Warrant Agent May Hold Company  Securities.  The Warrant Agent
and any stockholder, director, officer or employee of the Warrant Agent may buy,
sell or deal in any of the securities of the Company or its Affiliates or become
pecuniarily  interested in  transactions  in which the Company or its Affiliates
may be  interested,  or  contract  with  or lend  money  to the  Company  or its
Affiliates  or  otherwise  act as fully  and  freely  as  though it were not the
Warrant Agent under this  Agreement.  Nothing  herein shall preclude the Warrant
Agent from acting in any other  capacity  for the Company or for any other legal
entity.

     Section 9.5.  Resignation and Removal; Appointment of Successor.
                   -------------------------------------------------

     (a) No  resignation or removal of the Warrant Agent and no appointment of a
successor   warrant  agent  shall  become  effective  until  the  acceptance  of
appointment by the successor warrant agent as provided herein. The Warrant Agent
may resign its duties and be  discharged  from all further  duties and liability
hereunder  (except  liability  arising as a result of the  Warrant  Agent's  own
negligence or willful misconduct) after giving written notice to the Company.

                              Exhibit 4.42 Page 20
<PAGE>

     (b) The Company may remove the Warrant Agent upon written  notice,  and the
Warrant  Agent shall  thereupon  in like manner be  discharged  from all further
duties and liabilities hereunder,  except as aforesaid. The Warrant Agent shall,
at the  Company's  expense,  cause to be mailed (by  first-class  mail,  postage
prepaid)  to the Holders at their last  address as shown on the  register of the
Company  maintained by the Warrant Agent a copy of said notice of resignation or
notice of removal, as the case may be.

     (c) Upon such resignation or removal,  the Company shall appoint in writing
a new warrant agent. If the Company shall fail to make such appointment within a
period of  twenty  (20)  days  after it has been  notified  in  writing  of such
resignation  by the  resigning  Warrant  Agent or after such  removal,  then the
Holders may apply to any court of competent  jurisdiction for the appointment of
a new warrant agent. Any new warrant agent,  whether appointed by the Company or
by such a court,  shall be a corporation  doing  business  under the laws of the
United  States or any state  thereof,  in good  standing  and  having a combined
capital  and  surplus of not less than  $50,000,000.  The  combined  capital and
surplus of any such new warrant agent shall be deemed to be the combined capital
and  surplus  as set forth in the most  recent  annual  report of its  condition
published by such warrant  agent prior to its  appointment,  provided  that such
reports are published at least annually  pursuant to law or to the  requirements
of a Federal or state supervising or examining authority.

     (d) After  acceptance  in writing of such  appointment  by the new  warrant
agent,   it  shall  be  vested  with  the  same  powers,   rights,   duties  and
responsibilities as if it had been originally named herein as the Warrant Agent,
without any further assurance, conveyance, act or deed; but if for any reason it
shall be necessary  or  expedient to execute and deliver any further  assurance,
conveyance,  act or deed,  the same shall be done at the  expense of the Company
and shall be legally and validly  executed  and  delivered  by the  resigning or
removed  Warrant  Agent.   Not  later  than  the  effective  date  of  any  such
appointment,  the Company shall give notice  thereof to the resigning or removed
Warrant Agent. Failure to give any notice provided for in this Section, however,
or any  defect  therein,  shall not  affect  the  legality  or  validity  of the
resignation of the Warrant Agent or the  appointment of a new warrant agent,  as
the case may be.

     (e) Any  corporation  into which the Warrant Agent or any new warrant agent
may be merged or any corporation  resulting from any  consolidation to which the
Warrant  Agent or any new warrant  agent shall be a party,  shall be a successor
Warrant Agent under this Agreement  without any further act,  provided that such
corporation  would be eligible for appointment as successor to the Warrant Agent
under the provisions of Section 9.5(c).  Any such successor  Warrant Agent shall
promptly  cause  notice of its  succession  as  Warrant  Agent to be mailed  (by
first-class mail, postage prepaid) to the Holders at their last address as shown
on the register of the Company maintained by the Warrant Agent.

                                   ARTICLE 10

                         REPRESENTATIONS AND WARRANTIES

     Section 10.1. Representations and Warranties. The Company hereby represents
and warrants that, as of the date of this Agreement:

                              Exhibit 4.42 Page 21
<PAGE>

     (a)  Authorization.  It has the corporate power and authority to enter into
this  Agreement  and to  perform  its  obligations  under,  and  consummate  the
transactions  contemplated  by,  this  Agreement  and has by proper  action duly
authorized the execution and delivery of this Agreement.

     (b) No Conflicts or Consents.  Neither the  execution  and delivery of this
Agreement, nor the consummation of the transactions contemplated herein, nor the
performance  of and compliance  with the terms and  provisions  hereof will: (i)
violate or conflict  with any  provision  of its  Articles of  Incorporation  or
By-laws;   (ii)  violate  any  law,  regulation  (including  without  limitation
Regulation G, T, U or X), order, writ,  judgment,  injunction,  decree or permit
applicable  to it; (iii) violate or  materially  conflict  with any  contractual
provisions  of,  or cause  an  event  of  default  under,  any  indenture,  loan
agreement, mortgage, deed of trust, contract or other agreement or instrument to
which it is a party or by which it or any of its  properties  may be  bound;  or
(iv) result in or require the creation of any lien,  security  interest or other
charge or encumbrance  (other than those  contemplated  in or in connection with
this Agreement) upon or with respect to its properties.

     (c) Consents. No consent,  approval,  authorization or order of, or filing,
registration or qualification with, any court or governmental authority or other
Person is required in connection with the execution,  delivery or performance of
this Agreement or the Warrants.

     (d)  Enforceable  Obligations.  This  Agreement  has been duly executed and
delivered by the Company and constitutes a legal,  valid and binding  obligation
of the  Company,  enforceable  in  accordance  with  its  terms  subject,  as to
enforcement,  to bankruptcy,  insolvency,  fraudulent transfer,  reorganization,
moratorium  and similar laws of general  applicability  relating to or affecting
creditors' rights and to general equity principles.

     (e) Capitalization.  As of the date hereof, the Company's  authorized stock
consists of (i) 197,650,000 shares of Common Stock of which 20,410,605 have been
issued and are  outstanding,  (ii) 350,000 shares of Class A Common Stock,  $.01
par value per share,  of which  339,806  have been  issued and are  outstanding,
(iii) 2,000,000  shares of Series A 8% Convertible  Redeemable  Preferred Stock,
 .$.01  par  value  per  share,  of which no  shares  have  been  issued  and are
outstanding.  As of the date  hereof,  (i) no shares of Common Stock are held in
treasury,  except for shares in deferred  compensation plan, which are accounted
for as treasury stock (489,671 shares of Common Stock), (ii) 1,326,235 shares of
Common Stock have been reserved for issuance under the Company's  Rollover Stock
Option Plan of which  options to acquire all  1,326,235  shares of Common  Stock
have been granted and (iii) 3,750,000  shares of Common Stock have been reserved
for  issuance  under  the  Company's  1997  Management  Incentive  Plan and 1998
Management Incentive Plan of which options to acquire 2,232,375 shares of Common
Stock have been  granted.  The  Company  also grants  shares of Common  Stock to
directors in consideration of their service as directors.

                                   ARTICLE 11

                                    COVENANTS

                              Exhibit 4.42 Page 22
<PAGE>

     Section  11.1.  Reservation  of Common  Stock for  Issuance  on Exercise of
Warrants.  The  Company  covenants  that it will at all times  reserve  and keep
available,  free from  pre-emptive  rights,  out of its  authorized but unissued
shares of Common  Stock,  solely  for the  purpose  of issue  upon  exercise  of
Warrants,  as herein  provided,  such number of shares of Common  Stock as shall
then be issuable  upon the  exercise of all  Warrants  issuable  hereunder.  The
transfer agent for the Common Stock (the  "Transfer  Agent") will be irrevocably
authorized and directed at all times to reserve such number of authorized shares
as shall be required  for such  purpose.  The  Company  will keep a copy of this
Agreement  on file  with  the  Transfer  Agent.  The  Warrant  Agent  is  hereby
irrevocably authorized to requisition from time to time from such Transfer Agent
the stock  certificates  required to honor  outstanding  Warrants  upon exercise
thereof in accordance  with the terms of this Agreement.  The Company  covenants
that all shares of Common Stock which shall be so issuable  shall,  upon payment
therefor  as set forth in this  Agreement  and such  issue,  be duly and validly
issued and fully paid and  non-assessable,  free of  preemptive  rights and free
from all taxes, liens,  charges and security interests with respect to the issue
thereof.

     Section  11.2.  Notice of  Dividends.  At any time when and if the  Company
declares any dividend on its Common  Stock,  it shall give notice to the Holders
of all the then  outstanding  Warrants of any such declaration not less than ten
(10) days  prior to the  related  record  date for  payment of the  dividend  so
declared.

     Section 11.3.  Reports.  For so long as any Warrants remain outstanding and
not  expired by their  terms,  the  Company  shall  furnish to the  Holders  the
information  required  to be  delivered  pursuant to Rule  144A(d)(4)  under the
Securities  Act.  In  addition,  the Company  shall file with the Warrant  Agent
within  15 days  after  it files  them  with the  Commission  copies  of its SEC
Reports. In the event the Company shall cease to be required to file SEC Reports
pursuant to the  Exchange  Act,  the Company  shall  nevertheless  mail such SEC
Reports to Holders upon their  request.  The Company shall furnish copies of its
SEC  Reports  to  Holders  promptly  after the  Company  files the same with the
Warrant  Agent.  The  Company  shall  make all  such  information  available  to
investors, securities analysts and broker-dealers who request it in writing.

                                   ARTICLE 12

                                 WARRANT HOLDERS

     Section  12.1.  Warrant  Certificate  Holder Not Deemed a  Shareholder.  No
holder, as such, of any Warrant  Certificate shall be entitled to vote,  receive
dividends  or be deemed for any purpose the holder of Common  Stock or any other
securities  of the Company  which may at any time be issuable on the exercise or
conversion of the Warrants  represented  thereby,  nor shall anything  contained
herein or in any Warrant  Certificate  be construed to confer upon the holder of
any Warrant  Certificate,  as such,  any of the rights of a  shareholder  of the
Company or any right to vote for the  election of  directors  or upon any matter
submitted to shareholders at any meeting thereof, or to give or withhold consent
to any  corporate  action,  or to receive  notice of meetings  or other  actions
affecting  shareholders (except as specifically  provided herein), or to receive
dividends or subscriptions  rights, or otherwise,  until the Warrant or Warrants
evidenced by such Warrant Certificate shall have been

                              Exhibit 4.42 Page 23
<PAGE>

exercised  and the Company  shall have elected to deliver  Common Stock (and not
cash) upon such exercise.

     Section  12.2.  Right of  Action.  All  rights of action in respect of this
Agreement  are  vested in the  Holders  of the  Warrants,  and any Holder of any
Warrant,  without consent of the Warrant Agent or any other Holder,  may on such
Holder's  own  behalf  and for  such  Holder's  own  benefit,  enforce,  and may
institute  and  maintain  any suit,  action or  proceeding  against  the Company
suitable to enforce, or otherwise in respect of, such Holder's right to exercise
or exchange such Holder's Warrants in the manner provided in this Agreement.

                                   ARTICLE 13

                                  MISCELLANEOUS

     Section 13.1.  Money and Other  Property  Deposited with the Warrant Agent.
Any moneys, securities or other property which at any time shall be deposited by
the Company or by Holders  with the  Warrant  Agent  pursuant to this  Agreement
shall be and are hereby assigned,  transferred and set over to the Warrant Agent
in trust for the purpose for which such  moneys,  securities  or other  property
shall have been  deposited;  but such moneys,  securities or other property need
not be segregated  from other funds,  securities or other property except to the
extent  required by law. The Warrant Agent shall  distribute any money deposited
with it for  payment  and  distribution  to the  Company or to Holders by a wire
transfer in the appropriate amount to an account designated by each such Person.
Any money  deposited with the Warrant Agent for payment and  distribution to the
Company or the Holders that remains  unclaimed  for two years after the date the
money was  deposited  with the Warrant Agent shall be returned to the Company or
the relevant Holder(s) upon its or their request therefor.

     Section 13.2.  Payment of Taxes. The Company shall pay all transfer,  stamp
and other  similar  taxes that may be imposed  in  respect  of the  issuance  or
delivery of  Warrants,  or in respect of the issuance or delivery by the Company
of any securities  upon exercise of Warrants with respect  thereto.  The Company
shall  not be  required,  however,  to pay any tax or other  charge  imposed  in
connection with any transfer involved in the issue of any certificate for shares
of Common Stock or other  securities  underlying the Warrants or payment of cash
to any Person other than the Holder of a Warrant  Certificate  surrendered  upon
the exercise or purchase of a Warrant,  and in case of such transfer or payment,
the  Warrant  Agent and the  Company  shall not be  required  to issue any stock
certificate  or pay any cash  until  such tax or charge  has been paid or it has
been established to the Warrant Agent's and the Company's  satisfaction  that no
such tax or other charge is due.

     Section 13.3.  Notices.  (a) Any notice,  demand or delivery  authorized by
this Agreement shall be in writing and shall be sufficiently  given or made when
delivered or on the third  Business Day following  the date sent by  first-class
mail,  postage  prepaid,  addressed (i) to any Holder at such  Holder's  address
shown on the register of the Company  maintained by the Warrant  Agent,  (ii) to
the Company or the Warrant Agent as follows:

                              Exhibit 4.42 Page 24
<PAGE>

If to the Company:          Wellsford Real Properties, Inc.
                            535 Madison Avenue
                            26th Floor
                            New York, New York 10022
                            Attention: President

If to the Warrant Agent:    United States Trust Company of New York
                            114 West 47th Street
                            New York, New York 10036
                            Attention: Corporate Trust Department

or (iii) such other address as shall have been  furnished to the party giving or
making such notice, demand or delivery.

     (b) The Company hereby  irrevocably  authorizes  the Warrant Agent,  in the
name and at the expense of the  Company,  to mail to the Holders any such notice
upon receipt thereof from the Company.

     Section 13.4. APPLICABLE LAW. THIS AGREEMENT,  EACH WARRANT CERTIFICATE AND
EACH WARRANT ISSUED HEREUNDER AND ALL RIGHTS ARISING HEREUNDER SHALL BE GOVERNED
BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

     Section 13.5. Persons Benefitting. This Agreement shall be binding upon and
inure to the  benefit of any Holders  (each of whom is an  intended  third party
beneficiary),   the  Company  and  the  Warrant  Agent,   and  their  respective
successors,  assigns,  beneficiaries,  executors and administrators.  Nothing in
this  Agreement  is  intended or shall be  construed  to confer upon any Person,
other than the Company,  the Warrant Agent and the Holders (and such successors,
assigns,  beneficiaries,  executors and  administrators),  any right,  remedy or
claim under or by reason of this Agreement or any part hereof.

     Section 13.6. Counterparts. This Agreement may be executed in any number of
counterparts,  each of  which  shall be  deemed  an  original,  but all of which
together constitute one and the same instrument.

     Section 13.7. Supplements and Amendments. The Company and the Warrant Agent
may from time to time,  without  the  consent of the  Holders,  by  supplemental
agreement or otherwise,  make any changes or  corrections  in this  Agreement in
order to (a) cure any ambiguity or to correct or supplement any provision herein
which may be defective or inconsistent with any other provision herein,  (b) add
to the covenants  and  agreements of the Company for the benefit of the Holders,
or surrender  any rights or power  reserved to or conferred  upon the Company in
this Agreement,  (c) modify the  restrictions on, and procedures for, resale and
other  transfers  of the  Warrants to the extent  required or  permitted  by any
change in applicable  law or regulation (or the  interpretation  thereof) of the
United  States of America or in practices  relating to the resale or transfer of
restricted securities generally or (d) evidence the succession of another Person
to the Company or

                              Exhibit 4.42 Page 25
<PAGE>

the Warrant  Agent and the  assumption  by such  successor of this  Agreement as
provided herein; provided, that, in each case, such changes or corrections shall
in any respect not adversely  affect the  interests of the Holders.  The Warrant
Agent shall send a copy of any such supplemental  agreement or amendment to each
of the Holders by first-class mail at the Company's  expense.  The Warrant Agent
shall  join  with  the  Company  in the  execution  and  delivery  of  any  such
supplemental agreements and amendments unless it affects the Warrant Agent's own
rights, duties or immunities hereunder, in which case the Warrant Agent may, but
shall not be required to, join in such execution and delivery.  Any amendment or
supplement to this Agreement that has an adverse effect on the rights of Holders
as set forth in this Agreement  shall require the written  consent of registered
Holders of two-thirds  (2/3) of the then outstanding  Warrants.  Notwithstanding
the  foregoing,  the  consent  of each  Holder  of a Warrant  affected  shall be
required  for any  amendment  pursuant  to  which  the  Shares  Amount  would be
decreased.

     Section 13.8. Headings. The descriptive headings of the several Sections of
this Agreement are inserted for  convenience and shall not control or affect the
meaning or construction of any of the provisions hereof.

     Section  13.9.  Remedies.  In the event of a breach by the  Company or by a
Holder of any of their  obligations  under this  Agreement,  each  Holder or the
Company,  as the case may be, in  addition to being  entitled  to  exercise  all
rights  granted by law,  including  recovery  of  damages,  will be  entitled to
specific  performance of its rights under this  Agreement.  The Company and each
Holder agree that monetary  damages would not be adequate  compensation  for any
loss  incurred  by  reason of a breach  by it of any of the  provisions  of this
Agreement  and  hereby  further  agrees  that,  in the event of any  action  for
specific  performance in respect of such breach, it shall waive the defense that
a remedy at law would be adequate.

                            [SIGNATURE PAGE FOLLOWS]

                              Exhibit 4.42 Page 26
<PAGE>

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

                       WELLSFORD REAL PROPERTIES, INC.

                       By:   /s/ Edward Lowenthal
                             --------------------
                             Name: Edward Lowenthal
                             Title:   President

                       UNITED STATES TRUST COMPANY OF
                         NEW YORK, Warrant Agent

                       By:   /s/ Cynthia Chaney
                             ------------------
                             Name: Cynthia Chaney
                             Title:   Assistant Vice President

                              Exhibit 4.42 Page 27
<PAGE>

                                                                       EXHIBIT A

                       FORM OF FACE OF WARRANT CERTIFICATE

                        WARRANTS TO PURCHASE COMMON STOCK
                       OF WELLSFORD REAL PROPERTIES, INC.

No.[     ]                                       Certificate for [    ] Warrants

     This  certifies  that [HOLDER],  or registered  assigns,  is the registered
holder of the number of Warrants  set forth  above.  Each  Warrant  entitles the
holder thereof (a "Holder"),  subject to the provisions  contained herein and in
the Warrant  Agreement  referred to below,  to  purchase,  from  Wellsford  Real
Properties,  Inc., a Maryland corporation (the "Company"),  the number of shares
of the Company's common stock, par value $.01 per share (the "Common Stock"), as
provided in the Warrant  Agreement,  at an exercise  price and subject to all of
the  terms  and  conditions  set  forth in the  Warrant  Agreement.  At the sole
election of the Company,  upon the exercise of any Warrant,  the Company may pay
to the Holder a certain amount of cash, as provided in the Warrant Agreement, in
lieu of delivering the shares of Common Stock.

     This Warrant Certificate is issued under and in accordance with the Warrant
Agreement,  dated as of May ___,  1999 (the  "Warrant  Agreement"),  between the
Company  and United  States  Trust  Company of New York,  as warrant  agent (the
"Warrant  Agent",  which term  includes any  successor  Warrant  Agent under the
Warrant Agreement),  and is subject to the terms and provisions contained in the
Warrant  Agreement,  to all of which  terms and  provisions  the  Holder of this
Warrant  Certificate  consents by acceptance  hereof.  The Warrant  Agreement is
hereby  incorporated  herein by reference  and made a part hereof.  Reference is
hereby made to the Warrant  Agreement  for a full  statement  of the  respective
rights,  limitations of rights, duties, obligations and immunities thereunder of
the Company, the Warrant Agent and the Holders of the Warrants.

     This Warrant  Certificate  shall  terminate  and be void as of the Close of
Business on May ___, 2004.

     As  provided  in  the  Warrant  Agreement  and  subject  to the  terms  and
conditions  therein set forth,  the Warrants shall be  exercisable  from time to
time  on any  Business  Day  beginning  on May  ___,  2004,  and  ending  on the
Expiration Date.

     The Exercise  Price and the number of shares of Common Stock  issuable upon
the  exercise  of each  Warrant  are  subject to  adjustment  as provided in the
Warrant Agreement.

                              Exhibit 4.42 Page 28
<PAGE>

     All shares of Common  Stock  issuable by the Company  upon the  exercise of
Warrants shall,  upon payment therefor as set forth in the Warrant Agreement and
such issue, be duly and validly issued and fully paid and non-assessable.

     In order to exercise a Warrant, the registered holder hereof must surrender
this Warrant  Certificate  at the corporate  trust office of the Warrant  Agent,
with the Exercise  Subscription  Form on the reverse hereof duly executed by the
Holder hereof, with signature guaranteed as therein specified, together with any
required  payment in full of the Exercise  Price then in effect for the share(s)
of  Underlying  Common  Stock as to which  the  Warrant(s)  represented  by this
Warrant  Certificate  are submitted  for exercise,  all subject to the terms and
conditions  hereof and of the Warrant  Agreement.  Any such  payment of the cash
Exercise  Price shall be by certified or official bank check drawn on a New York
City bank payable to the order of the Company.

     The Company shall pay all transfer,  stamp and other similar taxes that may
be imposed in respect of the  issuance or delivery of the Warrants or in respect
of the issuance or delivery by the Company of any  securities  upon  exercise of
the  Warrants.  The Company  shall not be required,  however,  to pay any tax or
other charge imposed in connection with any transfer involved in the issuance of
any  certificate for shares of Common Stock or other  securities  underlying the
Warrants  or payment  of cash to any  Person  other than the Holder of a Warrant
Certificate  surrendered upon the exercise or purchase of a Warrant, and in case
of such  transfer or payment,  the  Warrant  Agent and the Company  shall not be
required to issue any stock  certificate or pay any cash until such tax or other
charge has been paid or it has been  established  to the Company's  satisfaction
that no such tax or other charge is due.

     Subject to the Warrant Agreement,  this Warrant  Certificate and all rights
hereunder are transferable by the registered holder hereof, in whole or in part,
on the register of the Company,  upon surrender of this Warrant  Certificate for
registration of transfer at the office of the Warrant Agent  maintained for such
purpose in The City of New York,  duly endorsed by, or  accompanied by a written
instrument of transfer in form satisfactory to the Company and the Warrant Agent
duly executed by, the Holder hereof or his attorney duly  authorized in writing,
with signature guaranteed as specified in the attached Form of Assignment.  Upon
any partial  transfer,  the Company  will issue and deliver to such holder a new
Warrant  Certificate  or  Certificates  with  respect  to  any  portion  not  so
transferred.

     No  service  charge  shall  be made to a  Holder  for any  registration  of
transfer or exchange  of the Warrant  Certificates,  but the Company may require
payment  of a sum  sufficient  to  cover  any tax or other  governmental  charge
payable in connection therewith.

     Each taker and holder of this Warrant Certificate, by taking or holding the
same,  consents and agrees that this Warrant  Certificate  when duly endorsed in
blank shall be deemed  negotiable and that when this Warrant  Certificate  shall
have been so  endorsed,  the holder  hereof may be treated by the  Company,  the
Warrant Agent and all other persons dealing with this Warrant Certificate as the
absolute owner hereof for any purpose and as the person entitled to exercise the
rights  represented  hereby,  or to the  transfer  hereof on the register of the
Company   maintained  by  the  Warrant   Agent,   any  notice  to  the  contrary
notwithstanding,  but until such transfer on such register,  the Company and the
Warrant  Agent  may  treat  the  registered  Holder  hereof as the owner for all
purposes.

                              Exhibit 4.42 Page 29
<PAGE>

     This Warrant Certificate and the Warrant Agreement are subject to amendment
as provided in the Warrant Agreement.

     All terms used in this Warrant  Certificate that are defined in the Warrant
Agreement shall have the meanings assigned to them in the Warrant Agreement.

     Copies of the  Warrant  Agreement  are on file at the office of the Company
and may be  obtained  by writing to the Company at the  following  address:  535
Fifth Avenue, 26th Floor, New York, New York 10022.

                              Exhibit 4.42 Page 30
<PAGE>

     This Warrant  Certificate shall not be valid for any purpose until it shall
have been countersigned by the Warrant Agent.

Dated:

                                                 WELLSFORD REAL PROPERTIES, INC.

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

Countersigned:

UNITED STATES TRUST COMPANY OF
  NEW YORK, Warrant Agent

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

                              Exhibit 4.42 Page 31
<PAGE>

                     FORM OF REVERSE OF WARRANT CERTIFICATE

                           EXERCISE SUBSCRIPTION FORM

                 (To be executed only upon exercise of Warrant)

To:  Wellsford Real Properties, Inc.

     The  undersigned  irrevocably  exercises [ ] of the  Warrants  for, at your
election,  either (i) the  Shares  Amount or (ii) the Cash  Amount and  herewith
makes payments of $[ ] and/or delivers  membership units of  Wellsford\Whitehall
Group, L.L.C. (such cash payment being by certified or official bank check drawn
on a New York  City bank  payable  to the order of  Wellsford  Real  Properties,
Inc.),  all at the Exercise Price and on the terms and  conditions  specified in
the within Warrant  Certificate and the Warrant  Agreement  therein referred to,
surrenders this Warrant Certificate and all right, title and interest therein to
Wellsford  Real  Properties,  Inc.  and directs  that any shares of Common Stock
deliverable  upon the exercise of such  Warrants be  registered  in the name and
delivered  at the  address  specified  below or any Cash  Amount be wired to the
account specified below.

Date:

                                               (Signature of Owner)

                                               (Street Address)

                                               (City)      (State)    (Zip Code)

                                               [Signature Guaranteed by:

                                                                               ]

Securities and/or check to be issued to:

Please insert social security or identifying number:

Name:

----------
*  The signature  must  correspond  with the name as written upon
   the face of the within Warrant Certificate in every particular, without
   alteration  or  enlargement  or  any  change  whatever,   and  must  be
   guaranteed  by a  financial  institution  satisfactory  to the  Warrant
   Agent.

                              Exhibit 4.42 Page 32
<PAGE>

Street Address:

City, State and Zip Code:

Any  unexercised  Warrants  evidenced by the within  Warrant  Certificate  to be
issued to:

Please insert social security or identifying number:

Name:

Street Address:

City, State and Zip Code:

Wire transfer instructions:

                              Exhibit 4.42 Page 33
<PAGE>

                               FORM OF ASSIGNMENT

     FOR VALUE RECEIVED the undersigned  registered holder of the within Warrant
Certificate  hereby sells,  assigns,  and transfers unto the  Assignee(s)  named
below  (including the  undersigned  with respect to any Warrants  constituting a
part of the  Warrants  evidenced  by the within  Warrant  Certificate  not being
assigned  hereby) all of the rights of the undersigned  under the within Warrant
Certificate, with respect to the number of Warrants set forth below:

                                      SOCIAL SECURITY OR
                                      OTHER IDENTIFYING
          NAMES OF                        NUMBER OF
         ASSIGNEES      ADDRESS          ASSIGNEE(S)          NUMBER OF WARRANTS
         ---------      -------          -----------          ------------------

                              Exhibit 4.42 Page 34
<PAGE>

and  does  hereby  irrevocably  constitute  and  appoint  [ ] the  undersigned's
attorney to make such transfer on the books of [ ] maintained  for that purpose,
with full power of substitution in the premises.

Date:

                                                                               *
                                               (Signature of Owner)

                                               (Street Address)

                                               (City)       (State)   (Zip Code)

                                               [Signature Guaranteed by:

                                                                               ]
--------
* The signature  must  correspond  with the name as written upon the face of the
within  Warrant   Certificate  in  every  particular,   without   alteration  or
enlargement  or any  change  whatever,  and must be  guaranteed  by a  financial
institution satisfactory to the Warrant Agent.

                              Exhibit 4.42 Page 35
<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

ARTICLE 1DEFINITIONS
Section 1.1.      Definitions.................................................1

ARTICLE 2ORIGINAL ISSUE OF WARRANTS
Section 2.1.      Form of Warrant Certificates................................5
Section 2.2.      Execution and Delivery of Warrant Certificates..............6

ARTICLE 3EXERCISE OF WARRANTS
Section 3.1.      Exercise Procedures.........................................6

ARTICLE 4COMPLIANCE WITH THE SECURITIES ACT
Section 4.1.      Transfers...................................................7
Section 4.2.      Representations.............................................7

ARTICLE 5REGISTRATION OF TRANSFERS AND EXCHANGES
Section 5.1.      Generally...................................................8
Section 5.2.      Mutilated, Destroyed, Lost or Stolen Warrant Certificates...8

ARTICLE 6ADJUSTMENTS
Section 6.1.      Adjustment upon Certain Transactions........................9

ARTICLE 7REGISTRATION RIGHTS
Section 7.1.      Demand Registration........................................19
Section 7.2.      Piggyback Registration Rights..............................22
Section 7.3.      Company's Ability to Postpone Registration Rights..........23
Section 7.4.      Holder Withdrawal Rights...................................24

ARTICLE 8REGISTRATION PROCEDURES
Section 8.1.      Covenants of the Company Applicable to All Registration
                  Statements ................................................25
Section 8.2.      Covenants of the Selling Holders...........................29
Section 8.3.      Registration Expenses......................................30
Section 8.4.      Indemnification and Contribution...........................31
Section 8.5.      Rule 144...................................................34
Section 8.6.      Participation in Underwritten Offerings....................34
Section 8.7.      Lock-Up Agreements.........................................35

ARTICLE 9WARRANT AGENT
Section 9.1.      Nature of Duties and Responsibilities Assumed..............35
Section 9.2.      Right to Consult Counsel...................................37
Section  9.3.     Compensation and Reimbursement.............................37
Section 9.4.      Warrant Agent May Hold Company Securities..................37
Section 9.5.      Resignation and Removal; Appointment of Successor..........37

                              Exhibit 4.42 Page 36
<PAGE>

ARTICLE 10REPRESENTATIONS AND WARRANTIES
Section 10.1.     Representations and Warranties.............................38

ARTICLE 11COVENANTS
Section 11.1.     Reservation of Common Stock for Issuance on Exercise
                  of Warrants ...............................................39
Section 11.2.     Notice of Dividends........................................40
Section 11.3.     Reports....................................................40

ARTICLE 12WARRANT HOLDERS
Section 12.1.     Warrant Certificate Holder Not Deemed a Shareholder........40
Section 12.2.     Right of Action............................................40

ARTICLE 13MISCELLANEOUS

Section 13.1.     Money and Other Property Deposited with the Warrant Agent..41
Section 13.2.     Payment of Taxes...........................................41
Section 13.3.     Notices....................................................41
Section 13.4.     APPLICABLE LAW.............................................42
Section 13.5.     Persons Benefitting........................................42
Section 13.6.     Counterparts...............................................42
Section 13.7.     Supplements and Amendments.................................42
Section 13.8.     Headings...................................................42
Section 13.9.     Remedies...................................................43

                              Exhibit 4.42 Page 37
<PAGE>

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