Document:

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                                                                     Exhibit 4.9

                       LEAP WIRELESS INTERNATIONAL, INC.

                                      and

                                  __________,

                               as Warrant Agent

                                    FORM OF

                               WARRANT AGREEMENT

                         Dated as of __________, 20__
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                               Table of Contents

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ARTICLE I.   ISSUANCE OF WARRANTS AND EXECUTION AND DELIVERY OF WARRANT
CERTIFICATES
     Section 1.01. Issuance of Warrants...........................................  2
     Section 1.02. Execution and Delivery of Warrant Certificates.................  2
     Section 1.03. Issuance of Warrant Certificates...............................  3

ARTICLE II.  WARRANT PRICE, DURATION AND EXERCISE OF WARRANTS
     Section 2.01. Warrant Price..................................................  4
     Section 2.02. Duration of Warrants...........................................  4
     Section 2.03. Exercise of Warrants...........................................  4

ARTICLE III. OTHER PROVISIONS RELATING TO RIGHTS OF HOLDERS OF WARRANT
CERTIFICATES
     Section 3.01. No Rights as Warrant Securityholders Conferred by Warrants or
     Warrant Certificates.........................................................  5
     Section 3.02. Lost, Stolen, Mutilated or Destroyed Warrant Certificates......  6
     Section 3.03. Holder of Warrant Certificate May Enforce Rights...............  6

ARTICLE IV. EXCHANGE AND TRANSFER OF WARRANT CERTIFICATES
     Section 4.01. Exchange and Transfer of Warrant Certificates..................  6
     Section 4.02. Treatment of Holders of Warrant Certificates...................  7
     Section 4.03. Cancellation of Warrant Certificates...........................  7

ARTICLE V. CONCERNING THE WARRANT AGENT
     Section 5.01. Warrant Agent..................................................  8
     Section 5.02. Conditions of Warrant Agent's Obligations......................  8
     Section 5.03. Resignation and Appointment of Successor.......................  9
     Section 5.04. Payment of Taxes............................................... 10

ARTICLE VI. MISCELLANEOUS
     Section 6.01. Amendment...................................................... 11
     Section 6.02. Notices and Demands to the Company and Warrant Agent........... 11
     Section 6.03. Addresses...................................................... 11
     Section 6.04. Applicable Law................................................. 11
     Section 6.05. Delivery of Prospectus......................................... 11
     Section 6.06. Obtaining of Governmental Approvals............................ 11
     Section 6.07. Persons Having Rights under Warrant Agreement.................. 12
     Section 6.08. Headings....................................................... 12
     Section 6.09. Counterparts................................................... 12
     Section 6.10. Inspection of Agreement........................................ 12
     Section 6.11. Adjustment of Number of [Preferred Stock] [Shares of Common
     Stock]; Notices.............................................................. 12
     Section 6.12. Fractional Shares.............................................. 17
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     THIS WARRANT AGREEMENT dated as of __________ between Leap Wireless
International, Inc., a corporation duly organized and existing under the laws of
the State of Delaware (herein called the "Company") and __________, a __________
organized and existing under the laws of __________, as Warrant Agent
(hereinafter called the "Warrant Agent").

     WHEREAS, the Company proposes to issue and sell from time to time, either
jointly or separately, certain of its (i) debt securities (the "Debt
Securities"), (ii) shares of preferred stock, par value $.0001 per share (the
"Preferred Stock"), (iii) Preferred Stock represented by depositary shares (the
"Depositary Shares"), (iv) shares of common stock, par value $.0001 per share
(the "Common Stock"), (v) warrants to purchase Debt Securities, Preferred Stock
or Common Stock (the "Warrants"), (vi) rights to purchase Common Stock (the
"Rights"), and/or (vii) units consisting of two or more of the foregoing
securities (the "Units), in one or more offerings on terms determined at the
time of sale; and

     WHEREAS, the Company has prepared and filed with the Securities and
Exchange Commission a registration statement on Form S-3 (File No. 333-45388),
including a prospectus, relating to the securities described above and the
offering thereof from time to time in accordance with Rule 415 under the
Securities Act of 1933, as amended (the "1933 Act"); and

     [If Debt Securities - WHEREAS, the Company has entered into an indenture
dated as of __________ (the "Indenture"), with __________, as trustee (such
trustee, and any successor to such trustee, to be herein called the "Trustee"),
providing for the issuance from time to time of its Debt Securities to be issued
in one or more series as provided in the Indenture; and]

     [If Preferred Stock - WHEREAS, the Company has established a series of
Preferred Stock in accordance with the terms of the Certificate of Vote of
Directors Establishing a Series of a Class of Stock relating to such Preferred
Stock (the "Certificate of Vote"); and]

     [If Warrants attached - WHEREAS, the Company proposes to sell the [Debt
Securities] [Preferred Stock] [Common Stock] now being offered (the "Offered
Securities" ) with warrant certificates evidencing one or more warrants (the
"Warrants" or, individually, a "Warrant") representing the right to purchase the
[Debt Securities] [Preferred Stock] [Common Stock] purchasable through exercise
of the Warrants (the "Warrant Securities"), such warrant certificates and other
warrant certificates issued pursuant to this Agreement being herein called the
"Warrant Certificates"; and]

     [If Warrants alone - WHEREAS, the Company proposes to sell warrant
certificates evidencing one or more warrants (the "Warrants" or, individually, a
"Warrant") representing the right to purchase the [Debt Securities][Preferred
Stock][Common Stock] purchasable through exercise of Warrants] (the "Warrant
Securities"), such warrant certificates and other warrant certificates issued
pursuant to this Agreement being herein called the "Warrant Certificates"; and]

     WHEREAS, the Company desires the Warrant Agent to act on behalf of the
Company, and the Warrant Agent is willing to so act, in connection with the
issuance, exchange, exercise and replacement of the Warrant Certificates, and in
this Warrant Agreement wishes to set forth,
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among other things, the form and provisions of the Warrant Certificates and the
terms and conditions on which they may be issued, exchanged, exercised and
replaced;

     NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein contained, the parties hereto agree as follows:

                                  ARTICLE I.
          ISSUANCE OF WARRANTS AND EXECUTION AND DELIVERY OF WARRANT
                                 CERTIFICATES

     Section 1.01. Issuance of Warrants. [If Offered Securities with Warrants
                   --------------------
Attached - Warrants shall be [initially] issued in connection with the issuance
of the Offered Securities [but shall be separately transferable on and after
__________ (the "Detachable Date")][and shall not be separately transferable].
Warrant Certificates shall be [initially] issued in units with the Offered
Securities and each Warrant Certificate included in such a unit shall evidence
__________ Warrants for each [share of Offered Securities] [$__________
principal amount of Offered Securities or its equivalent in a foreign currency
or composite currency] included in such unit.] [If Warrants alone - Upon
issuance each Warrant Certificate shall evidence one or more Warrants.] Each
Warrant evidenced thereby shall represent the right, subject to the provisions
contained herein and therein, to purchase [__________ shares of Warrant
Securities] [a Warrant Security in the principal amount of $__________ or its
equivalent in a foreign currency or composite currency].

     Section 1.02. Execution and Delivery of Warrant Certificates. Each Warrant
                   ----------------------------------------------
Certificate, whenever issued, shall be in [bearer] [registered] form
substantially in the form set forth in Exhibit A hereto, shall be dated as of
its issue date and may have such letters, numbers or other marks of
identification or designation and such legends or endorsements printed,
lithographed or engraved thereon as the officers of the Company executing the
same may approve (execution thereof to be conclusive evidence of such approval)
and as are not inconsistent with the provisions of this Agreement, or as may be
required to comply with any law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange on which the
Warrant Certificates may be listed or authorized for trading, or to conform to
usage. The Warrant Certificates shall be signed on behalf of the Company by its
Chairman of the Board, the Chief Executive Officer, President or Chief Financial
Officer, and attested by its Clerk or any of its Assistant Clerks, under its
corporate seal. Such signatures may be manual or facsimile signatures of such
authorized officers and may be imprinted or otherwise reproduced on the Warrant
Certificates. The seal of the Company may be in the form of a facsimile thereof
and may be impressed, affixed, imprinted or otherwise reproduced on the Warrant
Certificates.

          No Warrant Certificate shall be valid for any purpose, and no Warrant
evidenced thereby shall be exercisable, until such Warrant Certificate has been
countersigned by the Warrant Agent. Such signature by the Warrant Agent upon any
Warrant Certificate executed by the Company shall be conclusive evidence that
the Warrant Certificate so countersigned has been duly issued hereunder.

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          In case any officer of the Company who shall have signed any of the
Warrant Certificates either manually or by facsimile signature shall cease to be
such officer before the Warrant Certificates so signed shall have been
countersigned and delivered by the Warrant Agent, such Warrant Certificates
nevertheless may be countersigned and delivered as though the person who signed
such Warrant Certificates had not ceased to be such officer of the Company, and
any Warrant Certificate may be signed on behalf of the Company by such persons
as, at the actual date of the execution of such Warrant Certificate, shall be
the proper officers of the Company, although at the date of the execution of
this Agreement any such person was not such officer.

          Pending the preparation of definitive Warrant Certificates, the
Company may execute, and upon the order of the Company the Warrant Agent shall
authenticate and deliver, temporary Warrant Certificates which are printed,
lithographed, typewritten, mimeographed or otherwise produced substantially of
the tenor of the definitive Warrant Certificates in lieu of which they are
issued and with such appropriate insertions, omissions, substitutions and other
variations as the officers executing such Warrant Certificates may determine, as
evidenced by their execution of such Warrant Certificates.

          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
surrender of the temporary Warrant Certificates at the corporate trust office of
the Warrant Agent [or __________], without charge to the holder. Upon surrender
for cancellation of any one or more temporary Warrant Certificates, the Company
shall execute and the Warrant Agent shall authenticate and deliver in exchange
therefor definitive Warrant Certificates representing the same aggregate number
of Warrants. Until so exchanged, the temporary Warrant Certificates shall in all
respects be entitled to the same benefits under this Agreement as definitive
Warrant Certificates.

          [If bearer Warrants - The term "holder" or "holder of a Warrant
Certificate" as used herein shall mean [If Offered Securities with Warrants
which are not immediately detachable, prior to the Detachable Date, the [bearer]
[registered owner] of the Offered Security to which such Warrant Certificate was
initially attached, and after such Detachable Date] the bearer of such Warrant
Certificate.]

          [If registered Warrants - The term "holder" or "holder of a Warrant
Certificate" as used herein shall mean any person in whose name at the time any
Warrant Certificate shall be registered upon the books to be maintained by the
Warrant Agent for that purpose [If Offered Securities with Warrants which are
not immediately detachable - or upon the register of the Offered Securities
prior to the Detachable Date.] The Company will, or will cause the registrar of
the Offered Securities to, make available at all times to the Warrant Agent such
information as to holders of the Offered Securities with Warrants as may be
necessary to keep the Warrant Agent's records up to date.]

     Section 1.03.   Issuance of Warrant Certificates. Warrant Certificates
                     --------------------------------
evidencing the right to purchase [__________ shares] [an aggregate principal
amount not exceeding $__________] of

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Warrant Securities or its equivalent in a foreign currency or composite currency
(except as provided in Sections 2.03(c), 3.02 and 4.01) may be executed by the
Company and delivered to the Warrant Agent upon the execution of this Warrant
Agreement or from time to time thereafter. The Warrant Agent shall, upon receipt
of Warrant Certificates duly executed on behalf of the Company, countersign
Warrant Certificates evidencing Warrants representing the right to purchase
[__________ shares] [up to $__________ aggregate principal amount] of Warrant
Securities or its equivalent in a foreign currency or composite currency and
shall deliver such Warrant Certificates to or upon the order of the Company.
Subsequent to such original issuance of the Warrant Certificates, the Warrant
Agent shall countersign a Warrant Certificate only if the Warrant Certificate is
issued in exchange or substitution for one or more previously countersigned
Warrant Certificates [If registered Warrants - or in connection with their
transfer], as hereinafter provided.

                                  ARTICLE II.
               WARRANT PRICE, DURATION AND EXERCISE OF WARRANTS

     Section 2.01.   Warrant Price. [On __________, ] the exercise price of each
                     -------------
Warrant is [$]__________. [During the period from __________ through and
including __________, the exercise price of each Warrant will be [$]__________
plus [accreted original issue discount] [accrued interest] from __________. On
__________, the exercise price of each Warrant will be [$]__________. During the
period from __________, through and including __________, the exercise price of
each Warrant will be [$]__________ plus [accreted original issue discount]
[accrued interest] from __________; [in each case the original issue discount
will be accreted at a __________% annual rate, computed on a [semiannual]
[annual] basis using a 360-day year consisting of twelve 30-day months;] [in
each case accrued interest will be computed at a rate equal to __%]]. Such
purchase price of Warrant Securities may be denominated in U.S. dollars or its
equivalent in a foreign currency or composite currency and may be determined in
reference to an index and is referred to in this Agreement as the "Warrant
Price." [The original issue discount for each $1,000 principal amount of Warrant
Securities (or its equivalent thereof in a foreign currency or composite
currency) is [$]__________.]

     Section 2.02.   Duration of Warrants. Each Warrant evidenced by a Warrant
                     --------------------
Certificate may be exercised in whole at any time, as specified herein, on or
after [the date thereof] [__________] and at or before the close of business on
__________ (the "Expiration Date"). Each Warrant not exercised at or before the
close of business on the Expiration Date shall become void, and all rights of
the holder of the Warrant Certificate evidencing such Warrant and under this
Agreement shall cease.

     Section 2.03.   Exercise of Warrants. During the period specified in
                     --------------------
Section 2.02, any whole number of Warrants, if the Warrant Certificate
evidencing the same shall have been countersigned by the Warrant Agent, may be
exercised by providing certain information set forth on the reverse side of the
Warrant Certificate and by paying in full, [in cash or by certified check or
official bank check or by bank wire transfer, in each case,] [by bank wire
transfer] in immediately available funds, the Warrant Price for each Warrant
exercised, to the Warrant Agent at its corporate trust office, __________ [or at
__________], provided that such exercise is subject to receipt within five
Business Days (as defined in Section 6.11(f) hereof) of such

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[payment] [wire transfer] by the Warrant Agent of the Warrant Certificate with
the form of election to purchase Warrant Securities set forth on the reverse
side of the Warrant Certificate properly completed and duly executed. The date
on which payment in full of the Warrant Price is received by the Warrant Agent
shall, subject to receipt of the Warrant Certificate as aforesaid, be deemed to
be the date on which the Warrant is exercised. The Warrant Agent shall deposit
all funds received by it in payment of the Warrant Price in the account of the
Company maintained with it for such purpose and shall advise the Company by
telephone at the end of each day on which a [payment] [wire transfer] for the
exercise of Warrants is received of the amount so deposited to its account. The
Warrant Agent shall promptly confirm such telephonic advice to the Company in
writing.

          (a)  The Warrant Agent shall, from time to time, as promptly as
practicable, advise the Company [and the Trustee under the Indenture] of (i) the
number of Warrants exercised in accordance with the terms and conditions of this
Agreement and the Warrant Certificates, (ii) the instructions of each holder of
the Warrant Certificates evidencing such Warrants with respect to delivery of
the Warrant Securities to which such holder is entitled upon such exercise,
(iii) delivery of Warrant Certificates evidencing the balance, if any, of the
Warrants remaining after such exercise, and (iv) such other information as the
Company [or the Trustee] shall reasonably require.

          (b)  As soon as practicable after the exercise of any Warrant or
Warrants, the Company shall issue[, pursuant to the Indenture, in authorized
denominations to or upon the order of the holder of the Warrant Certificate
evidencing such Warrant or Warrants,] the Warrant Security or Warrant Securities
to which such holder is entitled, in fully registered form, registered in such
name or names as may be directed by such holder; and, if fewer than all of the
Warrants evidenced by such Warrant Certificate were exercised, the Company shall
execute, and an authorized officer of the Warrant Agent shall manually
countersign and deliver to or upon the order of such holder, a new Warrant
Certificate evidencing the number of Warrants remaining unexercised.

          (c)  The Company shall not be required to pay any stamp or other tax
or other governmental charge required to be paid in connection with any transfer
involved in the issue of the Warrant Securities; and in the event that any such
transfer is involved, the Company shall not be required to issue or deliver any
Warrant Securities until such tax or other charge shall have been paid or it has
been established to the Company's satisfaction that no such tax or other charge
is due.

                                 ARTICLE III.
          OTHER PROVISIONS RELATING TO RIGHTS OF HOLDERS OF WARRANT
                                 CERTIFICATES

     Section 3.01.   No Rights as Warrant Securityholders Conferred by Warrants
                     ----------------------------------------------------------
or Warrant Certificates. No Warrant Certificate or Warrant evidenced thereby
-----------------------
shall entitle the holder thereof to any of the rights of a holder of the Warrant
Securities, including, without limitation, the right [to vote or] to receive
payments of [dividends or distributions of any kind] [principal of (and

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premium, if any,) or interest, if any, on the Warrant Securities or to enforce
any of the covenants in the Indenture].

     Section 3.02.   Lost, Stolen, Mutilated or Destroyed Warrant Certificates.
                     ---------------------------------------------------------
Upon receipt by the Company and the Warrant Agent of evidence reasonably
satisfactory to them of the ownership of and the loss, theft, destruction or
mutilation of any Warrant Certificate and of indemnity reasonably satisfactory
to them and, in the case of mutilation, upon surrender thereof to the Warrant
Agent for cancellation, 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 an authorized officer of the Warrant
Agent shall manually countersign and deliver, in exchange for or in lieu of the
lost, stolen, destroyed or mutilated Warrant Certificate, a new Warrant
Certificate of the same tenor and evidencing a like number of Warrants. Upon the
issuance of any new Warrant Certificate under this Section, 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 any other expenses (including
the fees and expenses of the Warrant Agent) in connection therewith. Every
substitute Warrant Certificate executed and delivered pursuant to this Section
in lieu of any lost, stolen or destroyed Warrant Certificate shall represent an
additional contractual obligation of the Company, whether or not the lost,
stolen or destroyed Warrant Certificate shall be at any time enforceable by
anyone, and shall be entitled to the benefits of this Warrant Agreement equally
and proportionately with any and all other Warrant Certificates duly executed
and delivered hereunder. The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement of mutilated, lost, stolen or destroyed Warrant Certificates.

     Section 3.03.   Holder of Warrant Certificate May Enforce Rights.
                     ------------------------------------------------
Notwithstanding any of the provisions of this Warrant Agreement, any holder of a
Warrant Certificate, without the consent of the Warrant Agent, [the Trustee,]
the holder of any Warrant Securities or the holder of any other Warrant
Certificate, may, in his own behalf and for his own benefit, enforce, and may
institute and maintain any suit, action or proceeding against the Company
suitable to enforce, or otherwise in respect of, his right to exercise the
Warrant or Warrants evidenced by his Warrant Certificate in the manner provided
in his Warrant Certificate and in this Warrant Agreement.

                                  ARTICLE IV.
                 EXCHANGE AND TRANSFER OF WARRANT CERTIFICATES

     Section 4.01.   Exchange and Transfer of Warrant Certificates. [If Offered
                     ---------------------------------------------
Securities with Warrants which are immediately detachable or Warrants alone -
Upon] [If Offered Securities with Warrants which are not immediately detachable-
Prior to the Detachable Date a Warrant Certificate may be exchanged or
transferred only together with the Offered Security to which the Warrant
Certificate was initially attached, and only for the purposes of effecting or in
conjunction with an exchange or transfer of such Offered Security. On or prior
to the Detachable Date, each transfer of the Offered Security on the register of
the Offered Securities shall operate also to transfer the related Warrant
Certificates. After the Detachable Date upon] surrender at the corporate trust
office of the Warrant Agent or [__________], Warrant Certificates may be
exchanged for other Warrant Certificates in denominations evidencing Warrants,
each Warrant entitling the holder thereof to purchase [__________ shares]
[$__________ principal amount of

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Warrant Securities or its equivalent in a foreign currency or composite
currency] at the Warrant Price [If registered Warrants - or may be transferred
in whole or in part] [If bearer or registered Warrants - provided that such
other Warrant Certificates evidence the same aggregate number of Warrants as the
Warrant Certificates so surrendered.] [If registered Warrants - The Warrant
Agent shall keep, at its corporate trust office [or at __________], books in
which, subject to such reasonable regulations as it may prescribe, it shall
register Warrant Certificates in accordance with Section 1.02 and transfers of
outstanding Warrant Certificates, upon surrender of the Warrant Certificates to
the Warrant Agent at its corporate trust office [or at __________] for transfer,
properly endorsed or accompanied by appropriate instruments of transfer and
written instructions for transfer, all in form satisfactory to the Company and
the Warrant Agent.] No service charge shall be made for any exchange or transfer
of Warrant Certificates, but the Company may require payment of a sum sufficient
to cover any stamp or other tax or other governmental charge that may be imposed
in connection with any such exchange or transfer. Whenever any Warrant
Certificates are so surrendered for exchange or transfer an authorized officer
of the Warrant Agent shall countersign and deliver to the person or persons
entitled thereto a Warrant Certificate or Warrant Certificates duly authorized
and executed by the Company, as so requested. The Warrant Agent shall not be
required to effect any exchange or transfer which will result in the issuance of
a Warrant Certificate evidencing a fraction of a Warrant or a number of full
Warrants and a fraction of a Warrant. All Warrant Certificates issued upon any
exchange or transfer of Warrant Certificates shall be the valid obligations of
the Company, evidencing the same obligations, and entitled to the same benefits
under this Warrant Agreement, as the Warrant Certificates surrendered for such
exchange or transfer.

     Section 4.02.   Treatment of Holders of Warrant Certificates. [If Offered
                     --------------------------------------------
Securities with bearer Warrants which are not immediately detachable - Subject
to Section 4.01, each] [If Offered Securities with bearer Warrants which are
immediately detachable or bearer Warrants alone - Each] Warrant Certificate
shall be transferable by delivery and shall be deemed negotiable and the bearer
of each Warrant Certificate may be treated by the Company, the Warrant Agent and
all other persons dealing with such bearer as the absolute owner thereof for any
purpose and as the person entitled to exercise the rights represented by the
Warrants evidenced thereby, any notice to the contrary notwithstanding.] [If
registered Warrants alone or registered Warrants which are not immediately
detachable - Every holder of a Warrant Certificate, by accepting the same,
consents and agrees with the Company, the Warrant Agent and with every
subsequent holder of such Warrant Certificate that until the Warrant Certificate
is transferred on the books of the Warrant Agent [or the register of the Offered
Securities prior to the Detachable Date], the Company and the Warrant Agent may
treat the registered holder as the absolute owner thereof for any purpose and as
the person entitled to exercise the rights represented by the Warrants evidenced
thereby, any notice to the contrary notwithstanding.]

     Section 4.03.   Cancellation of Warrant Certificates. Any Warrant
                     ------------------------------------
Certificate surrendered for exchange, transfer or exercise of the Warrants
evidenced thereby shall, if surrendered to the Company, be delivered to the
Warrant Agent, and all Warrant Certificates surrendered or so delivered to the
Warrant Agent shall be promptly cancelled by the Warrant Agent and shall not be
reissued and, except as expressly permitted by this Warrant Agreement, no
Warrant Certificate shall be issued hereunder in exchange or in lieu thereof.
The Warrant Agent shall

                                       7
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deliver to the Company from time to time or otherwise dispose of cancelled
Warrant Certificates in a manner satisfactory to the Company.

                                  ARTICLE V.
                         CONCERNING THE WARRANT AGENT

     Section 5.01.   Warrant Agent. The Company hereby appoints __________ as
                     -------------
Warrant Agent of the Company in respect of the Warrants and the Warrant
Certificates upon the terms and subject to the conditions herein set forth; and
__________ hereby accepts such appointment. The Warrant Agent shall have the
powers and authority granted to and conferred upon it in the Warrant
Certificates and hereby and such further powers and authority to act on behalf
of the Company as the Company may hereafter grant to or confer upon it. All of
the terms and provisions with respect to such powers and authority contained in
the Warrant Certificates are subject to and governed by the terms and provisions
hereof.

     Section 5.02.   Conditions of Warrant Agent's Obligations. The Warrant
                     -----------------------------------------
Agent accepts its obligations herein set forth upon the terms and conditions
hereof, including the following, to all of which the Company agrees and to all
of which the rights hereunder of the holders from time to time of the Warrant
Certificates shall be subject:

          (a)  Compensation and Indemnification. The Company agrees to pay the
Warrant Agent promptly the compensation to be agreed upon with the Company for
all services rendered by the Warrant Agent and to reimburse the Warrant Agent
for reasonable out-of-pocket expenses (including reasonable counsel fees)
incurred by the Warrant Agent in connection with the services rendered hereunder
by the Warrant Agent. The Company also 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 the part of the Warrant Agent, arising out of
or in connection with its acting as such Warrant Agent hereunder, as well as the
costs and expenses of defending against any claim or liability in the premises.

          (b)  Agent for the Company. In acting under this Warrant Agreement and
in connection with the Warrants, the Warrant Agent is acting solely as agent of
the Company and does not assume any obligation or relationship of agency or
trust with any of the owners or holders of the Warrants.

          (c)  Documents. The Warrant Agent shall be protected and shall incur
no liability for or in respect of any action taken or thing suffered by it in
reliance upon any Warrant Certificates, notice, direction, consent, certificate,
affidavit, statement or other paper or document reasonably believed by it to be
genuine and to have been presented or signed by the proper parties.

          (d)  Certain Transactions. The Warrant Agent, and its officers,
directors and employees, may become the owner of, or acquire any interest in,
any Warrants, with the same rights that it or they would have if it were not the
Warrant Agent hereunder, and, to the extent permitted by applicable law, it or
they may engage or be interested in any financial or other

                                       8
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transaction with the Company and may act on, or as depositary, trustee or agent
for, any committee or body of holders of Warrant Securities or other obligations
of the Company as freely as if it were not the Warrant Agent hereunder. [Nothing
in this Warrant Agreement shall be deemed to prevent the Warrant Agent from
acting as Trustee under the Indenture.]

          (e)  No Liability for Interest. The Warrant Agent shall not be under
any liability for interest on any monies at any time received by it pursuant to
any of the provisions of this Warrant Agreement or of the Warrants.

          (f)  No Liability for Invalidity. The Warrant Agent shall not incur
any liability with respect to the validity of any of the Warrants.

          (g)  No Responsibility for Representations. The Warrant Agent shall
not be responsible for any of the recitals or representations herein or in the
Warrant Certificates contained (except as to the Warrant Agent's
countersignature thereon), all of which are made solely by the Company.

          (h)  No Implied Obligations. The Warrant Agent shall be obligated to
perform such duties as are herein and in the Warrant Certificates specifically
set forth and no implied duties or obligations shall be read into this Agreement
or the Warrant Certificates against the Warrant Agent. The Warrant Agent shall
not be under any obligation to take any action hereunder which may tend to
involve it in any expense or liability, the payment of which within a reasonable
time is not, in its reasonable opinion, assured to it. The Warrant Agent shall
not be accountable or under any duty or responsibility for the use by the
Company of any of the Warrant Certificates authenticated by the Warrant Agent
and delivered by it to the Company pursuant to this Agreement or for the
application by the Company of the proceeds of the Warrant Certificates. The
Warrant Agent shall have no duty or responsibility in case of any default by the
Company in the performance of its covenants or agreements contained herein or in
the Warrant Certificates or in the case of the receipt of any written demand
from a holder of a Warrant Certificate with respect to such default, including,
without limiting the generality of the foregoing, any duty or responsibility to
initiate or attempt to initiate any proceedings at law or otherwise or, except
as provided in Section 6.02 hereof, to make any demand upon the Company.

     Section 5.03.   Resignation and Appointment of Successor. The Company
                     ----------------------------------------
agrees, for the benefit of the holders from time to time of the Warrant
Certificates, that there shall at all times be a Warrant Agent hereunder until
all the Warrant Certificates are no longer exercisable.

          (a)  The Warrant Agent may at any time resign as such agent by giving
written notice to the Company of such intention on its part, specifying the date
on which its desired resignation will become effective; provided, however, that
such date shall not be less than three months after the date on which such
notice is given unless the Company agrees to accept less notice. The Warrant
Agent hereunder may be removed at any time by the filing with it of an
instrument in writing signed by or on behalf of the Company and specifying such
removal and the date when it shall become effective. Such resignation or removal
shall take effect upon the appointment by the Company, as hereinafter provided,
of a successor Warrant Agent (which shall be a bank or trust company authorized
under the laws of the jurisdiction of its organization

                                       9
<PAGE>

to exercise corporate trust powers) and the acceptance of such appointment by
such successor Warrant Agent. The obligations of the Company under Section
5.02(a) shall continue to the extent set forth therein notwithstanding the
resignation or removal of the Warrant Agent.

          (b)  In case at any time the Warrant Agent shall become incapable of
acting, or shall be adjudged a bankrupt or insolvent, or shall file a petition
seeking relief under Title 11 of the United States Code, as now constituted or
hereafter amended, or under any other applicable Federal or State bankruptcy law
or similar law or make an assignment for the benefit of its creditors or consent
to the appointment of a receiver or custodian of all or any substantial part of
its property or assets, or shall admit in writing its inability to pay or meet
its debts as they mature, or if a receiver or custodian of it or of all or any
substantial part of its property or assets shall be appointed, or if an order of
any court shall be entered for relief against it under the provisions of Title
11 of the United States Code, as now constituted or hereafter amended, or under
any other applicable Federal or State bankruptcy or similar law, or if any
public officer shall have taken charge or control of the Warrant Agent or of its
property or affairs, for the purpose of rehabilitation, conservation or
liquidation, it shall be disqualified from serving as Warrant Agent and a
successor Warrant Agent, qualified as aforesaid, shall be appointed by the
Company by an instrument in writing, filed with the successor Warrant Agent.
Upon the appointment as aforesaid of a successor Warrant Agent and acceptance by
the successor Warrant Agent of such appointment, the Warrant Agent so
disqualified shall cease to be Warrant Agent hereunder.

          (c)  Any successor Warrant Agent appointed hereunder shall execute,
acknowledge and deliver to its predecessor and to the Company an instrument
accepting such appointment hereunder, and thereupon such successor Warrant
Agent, without further act, deed or conveyance, shall become vested with all
authority, rights, powers, trusts, immunities, duties and obligations of such
predecessor with like effect as if originally named as Warrant Agent hereunder,
and such predecessor, upon payment of its charges and disbursements then unpaid,
shall thereupon become obligated to transfer, deliver and pay over, and such
successor Warrant Agent shall be entitled to receive, all monies, securities and
other property on deposit with or held by such predecessor, as Warrant Agent
hereunder.

          (d)  Any corporation into which the Warrant Agent hereunder may be
merged or converted or any corporation with which the Warrant Agent may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Warrant Agent shall be a party, or any corporation to
which the Warrant Agent shall sell or otherwise transfer all or substantially
all the assets and business of the Warrant Agent, provided that it shall be
qualified as aforesaid, shall be the successor Warrant Agent under this Warrant
Agreement without the execution or filing of any paper or any further act on the
part of any of the parties hereto.

     Section 5.04.   Payment of Taxes. The Company will pay all stamp and other
                     ----------------
duties, if any, to which, under the laws of the United States of America, this
Warrant Agreement or the original issuance of the Warrant Certificates may be
subject.

                                      10
<PAGE>

                                  ARTICLE VI.
                                 MISCELLANEOUS

     Section 6.01.   Amendment. This Warrant Agreement may be amended by the
                     ---------
parties hereto, without the consent of the holder of any Warrant Certificate,
for the purpose of curing any ambiguity, or of curing, correcting or
supplementing any defective provision contained herein, or making any other
provisions with respect to matters or questions arising under this Warrant
Agreement as the Company and the Warrant Agent may deem necessary or desirable;
provided that such action shall not adversely affect the interests of the
holders of the Warrant Certificates.

     Section 6.02.   Notices and Demands to the Company and Warrant Agent. If
                     ----------------------------------------------------
the Warrant Agent shall receive any notice or demand addressed to the Company by
the holder of a Warrant Certificate pursuant to the provisions of the Warrant
Certificates, the Warrant Agent shall promptly forward such notice of demand to
the Company.

     Section 6.03.   Addresses. Any communications from the Company to the
                     ---------
Warrant Agent with respect to this Warrant Agreement shall be addressed to
__________, Attention: __________, and any communications from the Warrant Agent
to the Company with respect to this Warrant Agreement shall be addressed to Leap
Wireless International, Inc., 10307 Pacific Center Court, San Diego, California
92121, Attention: General Counsel (or such other address as shall be specified
in writing by the Warrant Agent or by the Company).

     Section 6.04.   Applicable Law. The validity, interpretation and
                     --------------
performance of this Warrant Agreement and each Warrant Certificate issued
hereunder and of the respective terms and provisions thereof and hereof shall be
governed by, and construed in accordance with, the law of the State of New York,
including, without limitation, Section 5-1401 of the New York Obligations Law,
without regard, to the extent permitted by law, to conflicts of laws principles.

     Section 6.05.   Delivery of Prospectus. The Company will furnish to the
                     ----------------------
Warrant Agent sufficient copies of a prospectus relating to the Warrant
Securities deliverable upon exercise of Warrants (the "Prospectus"), and the
Warrant Agent agrees that upon the exercise of any Warrant, the Warrant Agent
will deliver to the holder of the Warrant Certificate evidencing such Warrant,
prior to or concurrently with the delivery of the Warrant Securities issued upon
such exercise, a Prospectus.

     Section 6.06.   Obtaining of Governmental Approvals. The Company will from
                     -----------------------------------
time to time take all action which may be necessary to obtain and keep effective
any and all permits, consents and approvals of governmental agencies and
authorities and securities acts filings under United States federal and state
laws (including, without limitation, maintenance of the effectiveness of a
registration statement in respect of the Warrants and Warrant Securities under
the Securities Act of 1933), which may be or become requisite in connection with
the issuance, sale, transfer, and delivery of the Warrant Certificates, the
exercise of the Warrants, the issuance, sale, transfer and delivery of the
Warrant Securities issued upon exercise of the Warrants or upon the expiration
of the period during which the Warrants are exercisable.

                                      11
<PAGE>

     Section 6.07.   Persons Having Rights under Warrant Agreement. Nothing in
                     ---------------------------------------------
this Warrant Agreement expressed or implied and nothing that may be inferred
from any of the provisions hereof is intended, or shall be construed, to confer
upon, or give to, any person or corporation other than the Company, the Warrant
Agent and the holders of the Warrant Certificates any right, remedy or claim
under or by reason of this Warrant Agreement or of any covenant, condition,
stipulation, promise or agreement hereof; and all covenants, conditions,
stipulations, promises and agreements in this Warrant Agreement contained shall
be for the sole and exclusive benefit of the Company and the Warrant Agent and
their successors and of the holders of the Warrant Certificates.

     Section 6.08.   Headings. The descriptive headings of the several Articles
                     --------
and Sections of this Warrant Agreement are inserted for convenience only and
shall not control or affect the meaning or construction of any of the provisions
hereof.

     Section 6.09.   Counterparts. This Warrant Agreement may be executed in any
                     ------------
number of counterparts, each of which so executed shall be deemed to be an
original; but such counterparts shall together constitute but one and the same
instrument.

     Section 6.10.   Inspection of Agreement. A copy of this Warrant Agreement
                     -----------------------
shall be available at all reasonable times at the principal corporate trust
office of the Warrant Agent for inspection by the holder of any Warrant
Certificate. The Warrant Agent may require such holder to submit his Warrant
Certificate for inspection by it.

     Section 6.11.   Adjustment of Number of [Preferred Stock] [Shares of Common
                     -----------------------------------------------------------
Stock]; Notices. The number of [Preferred Stock] [shares of Common Stock]
---------------
purchasable upon the exercise of each Warrant (the "Exercise Rate") is subject
to adjustment from time to time as provided in this Section or as may otherwise
be provided in an amendment hereto, subject to Section 6.01 hereof.

             (a)     Dividends or Distributions in [Preferred Stock] [Shares of
Common Stock]. In case the Company shall pay or make a dividend or other
distribution on [any class or series of Preferred Stock for which Warrants may
be exercised] [its Common Stock] in [such Preferred Stock] [shares of its Common
Stock], the Exercise Rate in effect at the opening of business on the day
following the date fixed for the determination of stockholders entitled to
receive such dividend or other distribution shall be increased by dividing such
Exercise Rate by a fraction of which the numerator shall be the number of shares
of [such Preferred Stock] [Common Stock] outstanding at the close of business on
the date fixed for such determination and the denominator shall be the sum of
such number of shares and the total number of shares constituting such dividend
or other distribution, such increase to become effective immediately after the
opening of business on the day following the date fixed for such determination.
For the purposes of this paragraph (a), the number of shares of [Preferred
Stock] [Common Stock] at any time outstanding shall not include shares held in
the treasury of the Company. The Company will not pay any dividend or make any
distribution on shares of [Preferred Stock] [Common Stock] held in the treasury
of the Company.

                                      12
<PAGE>

             (b)     Rights or Warrants. In case the Company shall issue rights
or warrants to all holders of [a class or series of its Preferred Stock for
which Warrants may be exercised] [shares of its Common Stock] entitling them to
subscribe for or purchase shares of [such Preferred Stock] [Common Stock] at a
price per share less than the current market price per share (determined as
provided in paragraph (f) of this Section) of [such Preferred Stock] [Common
Stock] on the date fixed for the determination of stockholders entitled to
receive such rights or warrants, the Exercise Rate in effect at the opening of
business on the day following the date fixed for such determination shall be
increased by dividing such Exercise Rate by a fraction of which the numerator
shall be the number of shares of [such Preferred Stock] [Common Stock]
outstanding at the close of business on the date fixed for such determination
plus the number of shares of [such Preferred Stock] [Common Stock] which the
aggregate of the offering price of the total number of shares of [such Preferred
Stock] [Common Stock] so offered for subscription or purchase would purchase at
such current market price and the denominator shall be the number of shares of
[such Preferred Stock] [Common Stock] outstanding at the close of business on
the date fixed for such determination plus the number of shares of [such
Preferred Stock] [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
paragraph (b), the number of shares of [Preferred Stock] [Common Stock] at any
time outstanding shall not include shares held in the treasury of the Company
but shall include shares issuable in respect of scrip certificates issued in
lieu of fractions of shares of [Preferred Stock] [Common Stock]. The Company
will not issue any rights or warrants in respect of shares of [Preferred Stock]
[Common Stock] held in the treasury of the Company.

             (c)     Subdivision or Combination. In case outstanding shares of
[a class or series of its Preferred Stock for which Warrants are exercisable]
[Common Stock] shall be subdivided into a greater number of shares of [such
Preferred Stock] [Common Stock], the Exercise Rate in effect at the opening of
business on the day following the day upon which such subdivision becomes
effective shall be proportionately increased, and, conversely, in case
outstanding shares of [a class or series of its Preferred Stock for which
Warrants are exercisable] [Common Stock] shall each be combined into a smaller
number of shares of [such Preferred Stock] [Common Stock], the Exercise Rate in
effect at the opening of business on the day following the day upon which such
combination becomes effective shall be proportionately reduced, such increase or
reduction, as the case may be, to become effective immediately after the opening
of business on the day following the day upon which such subdivision or
combination becomes effective.

             (d)     Dividend or Distribution of Assets. In case the Company
shall, by dividend or otherwise, distribute to all holders of [a class or series
of its Preferred Stock for which Warrants are exercisable] [shares of its Common
Stock] evidences of its indebtedness or assets (including securities, but
excluding any rights or warrants referred to in paragraph (b) of this Section,
any dividend or distribution paid in cash out of the retained earnings of the
Company and any dividend or distribution referred to in paragraph (a) of this
Section), the Exercise Rate shall be adjusted so that the same shall equal the
price determined by dividing the Exercise Rate in effect immediately prior to
the close of business on the date fixed for the determination of stockholders
entitled to receive such distribution by a fraction of which the

                                      13
<PAGE>

numerator shall be the current market price per share (determined as provided in
paragraph (f) of this Section) of [such Preferred Stock] [Common Stock] on the
date fixed for such determination less the then fair-market value (as determined
by the Board of Directors, whose determination shall be conclusive and described
in a Board Resolution filed with the Warrant Agent and any other Registrar) of
the portion of the assets or evidences of indebtedness so distributed applicable
to one share of [such Preferred Stock] [Common Stock] and the denominator shall
be such current market price per share of [such Preferred Stock] [Common Stock],
such adjustment to become effective immediately prior to the opening of business
on the day following the date fixed for the determination of stockholders
entitled to receive such distribution.

             (e)     Reclassification. The reclassification of [a class or
series of its Preferred Stock for which Warrants are exercisable] [the Company's
Common Stock] into securities other than such [Preferred Stock] [Common Stock]
(other than any reclassification upon a consolidation or merger to which
paragraph (1) of this Section applies) shall be deemed to involve a distribution
of such securities other than such [Preferred Stock] [Common Stock] to all
holders of [such Preferred Stock] [Common Stock] (and the effective date of such
reclassification shall be deemed to be "the date fixed for the determination of
stockholders entitled to receive such distribution" and "the date fixed for such
determination" within the meaning of paragraph (d) of this Section), and (ii) a
subdivision or combination, as the case may be, of the number of shares of [such
Preferred Stock] [Common Stock] outstanding immediately prior to such
reclassification into the number of shares of [such Preferred Stock] [Common
Stock] outstanding immediately thereafter (and the effective date of such
reclassification shall be deemed to be "The day upon which such subdivision
becomes effective" or "The day upon which such combination becomes effective",
as the case may be, and "the day upon which such subdivision or combination
becomes effective" within the meaning of paragraph (c) of this Section).

             (f)     Current Market Price. For the purpose of any computation
under paragraphs (b) and (d) of this Section, the current market price per share
of [Preferred Stock] [Common Stock] on any date shall be deemed to be the
average of the daily closing prices for the 15 consecutive Business Days
selected by the Company commencing not less than 20 nor more than 30 Business
Days before the day in question. The closing price for each day shall be the
last reported sales price regular way or, in case no such reported sale takes
place on such day, the average of the reported closing bid and asked prices
regular way, in either case on the New York Stock Exchange or, if such
[Preferred Stock are] [Common Stock is] not listed or admitted to trading on
such Exchange, on the principal national securities exchange on which such
[Preferred Stock are] [Common Stock is] listed or admitted to trading or, if not
listed or admitted to trading on any national securities exchange, on the Nasdaq
National Market or, if such [Preferred Stock are] [Common Stock is] not listed
or admitted to trading on any national securities exchange or quoted on such
Nasdaq National Market, the average of the closing bid and asked prices in the
over-the-counter market as furnished by any New York Stock Exchange member firm
selected from time to time by the Company for the purpose. In the event that no
such market trading exists, the current market price will be determined by three
independent nationally reorganized investment banking firms selected by the
Company in such manner as the Board of Directors deems appropriate. "Business
Day" means each Monday, Tuesday, Wednesday, Thursday and

                                      14
<PAGE>

Friday which is not a day on which banking institutions where Warrants may be
surrendered for exercise are authorized or obligated by law or executive order
to close.

             (g)     Adjustments for Tax Purposes. The Company may make such
adjustments in the Exercise Rate, in addition to those required by paragraphs
(a), (b), (c) and (d) of this Section, as it considers to be advisable in order
that any event treated for federal income tax purposes as a dividend of stock or
stock rights shall not be taxable to the recipients.

             (h)     No Adjustment Below Par Value. Notwithstanding the
provisions of this Section, the Exercise Rate shall not be increased such that
the price paid per share would be less than the par value thereof as a result of
any adjustment made hereunder unless, under applicable law then in effect,
Warrants may be exercised, at such lower Exercise Rate, for legally issued,
fully paid and nonassessable shares of [Preferred Stock] [Common Stock].

             (i)     Permitted Distributions. The granting of the right to
purchase shares of [Preferred Stock] [Common Stock] (whether from treasury
shares or otherwise), pursuant to (i) any dividend or interest reinvestment plan
or [Preferred Stock] [Common Stock] purchase plan providing for the reinvestment
of dividends or interest payable on securities of the Company and/or the
investment of periodic optional payments; and (ii) any stock option plans and/or
employee benefit or similar plans shall not be deemed to constitute an issue of
rights or warrants by the Company.

             (j)     No Adjustments Necessary. No adjustment in the Exercise
Rate shall be required unless such adjustment would require an increase or
decrease of at least one percent in such Exercise Rate; provided, however, that
any adjustment which by reason of this paragraph (j) is not required to be made
shall be carried forward and taken into account in any subsequent adjustment.
All calculations under this Section shall be made to the nearest cent or to the
nearest 1/100 of a share, as the case may be.

             (k)     Notice of Adjustment. Whenever the Exercise Rate is
adjusted as herein provided, the Company shall forthwith compute the adjusted
Exercise Rate in accordance herewith and prepare a certificate signed by an
officer of the Company setting forth the adjusted Exercise Rate 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 any other
Registrar and (ii) cause a notice stating that such adjustment has been effected
and the adjusted Exercise Rate to be mailed to the holders of Warrants at their
last addresses as they shall appear on the Warrant Register.

             (l)     Successor Company. In case of any reclassification or
change of outstanding shares of [the class or series of Preferred Stock issuable
upon exercise of the Warrants] [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), or in case of any merger or
consolidation of the Company with one or more other corporations (other than a
merger or consolidation in which the Company is the continuing corporation and
which does not result in any reclassification or change of outstanding shares of
[the class or series of Preferred Stock issuable upon exercise of the Warrants]
[Common Stock]), or in case of the merger of the

                                      15
<PAGE>

Company into another corporation, or in case of any sale or conveyance to
another corporation of the property of the Company as an entirety or
substantially as an entirety, the holder of Warrants of each series then
outstanding shall have the right to exercise such Warrant for the kind and
amount of shares of capital stock or other securities and property, including
cash, receivable upon reclassification, change, consolidation, merger, sale or
conveyance by a holder of the number of shares of [such class or series of
Preferred Stock] [Common Stock] for which such Warrant might have been exercised
immediately prior to such reclassification, change consolidation, merger, sale
or conveyance. In any such case, the Company, or such successor or purchasing
corporation, as the case may be, shall execute and deliver to the Warrant Agent
a supplemental Warrant Agreement containing provisions to the effect set forth
above and providing further for adjustments which shall be as nearly equivalent
as may be practicable to the adjustments provided for in this Section. The above
provisions shall similarly apply to successive reclassifications, changes,
consolidation, mergers, sales and conveyances.

             (m)     Company to Reserve Capital Securities. The Company shall at
all times reserve and keep available out of the aggregate of its authorized but
unissued shares or its issued shares held in its treasury, or both, for the
purpose of effecting the exercise of the Warrants, such full number of its duly
authorized shares of [Preferred Stock] [Common Stock] as shall from time to time
be sufficient to effect the exercise of all outstanding Warrants.

             If any shares of [Preferred Stock] [Common Stock] reserved or to be
reserved for the purpose of exercise of Warrants hereunder require registration
with or approval of any governmental authority under any Federal or State law
before such shares may be validly delivered upon exercise, then the Company
covenants that it will in good faith and as expeditiously as possible endeavor
to secure registration or approval, as the case may be.

             The Company covenants that all shares of [Preferred Stock] [Common
Stock] which may be delivered upon exercise of Warrants shall upon delivery be
fully paid and nonassessable by the Company, subject to [ADD APPROPRIATE
DELAWARE LAW PROVISIONS, IF APPLICABLE] and, except for taxes in connection with
the exercise of the Warrants, free from all taxes, liens and charges with
respect to the issue or delivery thereof.

             (n)  Company to Give Notice of Certain Events. In the event

                  (1)  that the Company shall pay any dividend or make any
distribution to the holders of shares of [Preferred Stock issuable upon exercise
of the Warrants] [Common Stock] otherwise than in cash charged against
consolidated net earnings or retained earnings of the Company and its
consolidated subsidiaries or in [such Preferred Stock] [shares of Common Stock];
or

                  (2)  that the Company shall offer for subscription or
purchase, pro rata, to the holders of [Preferred Stock issuable upon exercise of
the Warrants] [Common Stock] any additional shares of stock of any class or any
securities exercisable for or exchangeable for stock of any class; or

                                      16
<PAGE>

                  (3)   of any reclassification or change of outstanding shares
of [the class or series of Preferred Stock issuable upon the exercise of the
Warrants] [Common Stock] (other than a change in par value, or from par value to
no par value, or from no par combination), or of any merger of consolidation of
the Company with, or merger of the Company into, another corporation (other than
a merger or consolidation in which the Company is the continuing corporation and
which does not result in reclassification or change of outstanding shares of
[Preferred Stock issuable upon exercise of the Warrants] [Common Stock]), or of
any sale or conveyance to another corporation of the property of the Company as
an entirety or substantially as an entirety; or

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

then, and in any one or more of such events, the Company will file with the
Warrant Agent and any other Registrar written notice thereof at least twenty
days (or ten days in any case specified in clause (1) or (2) above) prior to (i)
the record date fixed with respect to any of the events specified in (1) and (2)
above and (ii) the effective date of any of the events specified in (3) above;
and shall mail promptly after providing such notice to the Warrant Agent or such
other Registrar a copy of such notice to the holders thereof at their last
addresses as they shall appear upon the Warrant Register. Failure to give such
notice, or any defect therein, shall not affect the legality or validity of such
dividend, distribution, reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding up.

          (o)   Company Determination Final. Any determination that the Company
or the Board of Directors must make pursuant to this Section is conclusive.

          (p)   Warrant Agent's Adjustment Diclaimer. The Warrant Agent has no
duty to determine when an adjustment under this Section should be made, how it
should be made or what it should be. The Warrant Agent has no duty to determine
whether a supplemental warrant agreement under paragraph (l) need be entered
into or whether any provisions of any supplemental warrant agreement are
correct. The Warrant Agent shall not be accountable for and makes no
representation as to the validity or value of any securities or assets issued
upon exercise of Warrants. The Warrant Agent shall not be responsible for the
Company's failure to comply with this Section.

          (q)   Adjustments and Warrant Certificates. Irrespective of any
adjustments in the number or kind of shares purchasable upon the exercise of the
Warrants, Warrant Certificates theretofore or thereafter issued may continue to
express the same number and kind of shares per Warrant as are stated on the
Warrant Certificates initially issuable pursuant to this Agreement.

          (r)   Subsequent Event. After an adjustment to the Exercise Rate under
this Section, any subsequent event requiring an adjustment under this Section
shall cause an adjustment to the Exercise Rate as so adjusted.

     Section 6.12. Fractional Shares. The Company shall not be required to
                   -----------------
deliver fractions of shares of [Preferred Stock] [Common Stock] upon exercises
of Warrants. If more than one

                                      17
<PAGE>

Warrant shall be surrendered for exercise at one time by the same holder, the
number of full shares which shall be deliverable upon exercise thereof shall be
computed on the basis of the aggregate of the Warrants so surrendered instead of
any fractional share of [Preferred Stock] [Common Stock] which would otherwise
be issuable upon exercise of any Warrant or Warrants (or specified portions
thereof). The Company shall pay a cash adjustment in respect of such fraction in
an amount equal to the same fraction of the market price per share of [Preferred
Stock] [Common Stock] (as determined in accordance with Section 6.11(f) or in
any other manner prescribed by the Board of Directors) at the close of business
on the last Business Day prior to the Date of Exercise.]

     IN WITNESS WHEREOF, Leap Wireless International, Inc. has caused this
Warrant Agreement to be signed by one of its duly authorized officers, and its
corporate seal to be affixed hereunto, and the same to be attested by its Clerk
or one of its Assistant Clerks; and __________ has caused this Warrant Agreement
to be signed by one of its duly authorized officers, and its corporate seal to
be affixed hereunto, and the same to be attested by its Secretary or one of its
Assistant Secretaries, all as of the day and year first above written.

                                   LEAP WIRELESS INTERNATIONAL, INC.

                                   By: ___________________________________
                                   Name:
                                   Title:

                                   [Warrant Agent]

                                   By: ___________________________________
                                   Name:
                                   Title:

                                      18
<PAGE>

                                                                       EXHIBIT A

                         (Form of Warrant Certificate)

                      [Front Face of Warrant Certificate]

[Form of Legend if                              Prior to _________ this
Offered Securities                              Warrant cannot be
with Warrants which                             transferred or exchanged
are not immediately exercisable.]               unless attached to a detachable:

                         [Title of Offered Securities]

[Form of Legend if                              Prior to __________ this
Warrants are not exercised in whole or in       Warrant cannot be immediately
part:]                                          exercisable:

                EXERCISABLE ONLY IF COUNTERSIGNED BY THE WARRANT
                           AGENT AS PROVIDED HEREIN.

                       LEAP WIRELESS INTERNATIONAL, INC.

                                PURCHASE WARRANT

                       FOR [Title of Warrant Securities]

          VOID AFTER THE CLOSE OF BUSINESS IN THE CITY OF NEW YORK ON
                               __________, 20__.

                                 [No.] Warrants

     This certifies that [the bearer is the] [__________ or registered assigns
is the registered] owner of the above indicated number of Warrants, each Warrant
entitling such [bearer] [owner] to purchase, at any time [after the close of
business on __________ and] on or before the close of business on __________,
[$]__________ [principal amount] [shares] of [Title of Warrant Securities] (the
"Warrant Securities") of Leap Wireless International, Inc. (the "Company"),
issued and to be issued [under the Indenture (as hereinafter defined)] [by the
Company], on the following basis: [on __________,] the exercise price of each
Warrant is [$]__________, [during the period from __________ through and
including __________, the exercise price of each Warrant will be [$]__________
plus [accreted original issue discount] [accrued interest] from __________, on
__________, the exercise price of each Warrant will be [$]__________, during the
period from __________, through and including __________, the exercise price of
each Warrant will be [$]__________ plus [accreted original issue discount]
[accrued interest] from __________, [in each case, the original issue discount
will be accreted at a __________% annual rate, computed on a [semiannual]
[annual] basis, using a 360-day year consisting of twelve 30-day months;] [in
each case accrued interest will be computed at a rate equal to __________%]]
(the "Warrant Price")]. [The original issue discount for each [$]__________
principal amount of Warrant Securities is [$]__________]. The [bearer] [owner]
may exercise the Warrants

                                      A-1
<PAGE>

evidenced hereby by providing certain information set forth on the back hereof
and by paying in full, in lawful money of __________, [in cash or by certified
check or official bank check or by bank wire transfer, in each case,] [by bank
wire transfer] in immediately available funds, the Warrant Price for each
Warrant exercised to the Warrant Agent (as hereinafter defined) and by
surrendering this Warrant Certificate, with the purchase form on the back hereof
duly executed, at the corporate trust office of [name of Warrant Agent] or its
successor as warrant agent (the "Warrant Agent"), currently at the address
specified on the reverse hereof [or __________,] and upon compliance with and
subject to the conditions set forth herein and in the Warrant Agreement (as
hereinafter defined).

     Any whole number of Warrants evidenced by this Warrant Certificate may be
exercised to purchase Warrant Securities in registered form in [denominations of
[$]__________ and any integral multiples thereof] [any number of whole shares].
Upon any exercise of fewer than all of the Warrants evidenced by this Warrant
Certificate, there shall be issued to the [registered owner] [bearer] hereof a
new Warrant Certificate evidencing the number of Warrants remaining unexercised.

     This Warrant Certificate is issued under and in accordance with the Warrant
Agreement dated as of __________ (the "Warrant Agreement"), between the Company
and the Warrant Agent and is subject to the terms and provisions contained in
the Warrant Agreement, to all of which terms and provisions the [registered
owner] [bearer] of this Warrant Certificate consents by acceptance hereof.
Copies of the Warrant Agreement are on file at the above-mentioned office of the
Warrant Agent [and at __________].

     [The Warrant Securities to be issued and delivered upon the exercise of the
Warrants evidenced by this Warrant Certificate will be issued [by the Company
pursuant to the Certificate of Vote applicable to such Warrant Securities]
[under and in accordance with an Indenture dated as of __________ (the
"Indenture"), between the Company and __________, __________, as trustee (such
trustee, and any successor to such trustee, to be herein called the "Trustee")
and will be subject to the terms and provisions contained in the Indenture.
Copies of the Indenture, including the form of the Warrant Securities, are on
file at the corporate trust office of the Trustee [and at __________]].]

     [If Offered Securities with bearer Warrants which are not immediately
detachable - Prior to __________, this Warrant Certificate may be exchanged or
transferred only together with the [Title of Offered Securities] ("Offered
Securities") to which this Warrant Certificate was initially attached, and only
for the purpose of effecting, or in conjunction with, an exchange or transfer of
such Offered Security. After such date, this Warrant Certificate, and all rights
hereunder, may be transferred by delivery and the Company and the Warrant Agent
may treat the bearer hereof as the owner for all purposes.]

     [If Offered Securities with bearer Warrants which are immediately
detachable or bearer Warrants alone - This Warrant Certificate, and all rights
hereunder, may be transferred by delivery and the Company and the Warrant Agent
may treat the bearer hereof as the owner for all purposes.]

                                      A-2
<PAGE>

     [If Offered Securities with registered Warrants which are not immediately
detachable - Prior to __________, this Warrant Certificate may be exchanged or
transferred only together with the [Title of Offered Securities] ("Offered
Securities") to which this Warrant Certificate was initially attached, and only
for the purpose of effecting, or in conjunction with, an exchange or transfer of
such Offered Security. After such date, this [If Offered Securities with
registered Warrants which are immediately detachable or registered Warrants
alone - This] Warrant Certificate may be transferred when surrendered at the
corporate trust office of the Warrant Agent [or __________] by the registered
owner or his assigns, in person or by an attorney duly authorized in writing, in
the manner and subject to the limitations provided in the Warrant Agreement.]

     [If Offered Securities with Warrants which are not immediately detachable -
Except as provided in the immediately preceding paragraph, after] [If Offered
Securities with Warrants which are immediately detachable or Warrants alone -
After] countersignature by the Warrant Agent and prior to the expiration of this
Warrant Certificate, this Warrant Certificate may be exchanged at the corporate
trust office of the Warrant Agent for Warrant Certificates representing the same
aggregate number of Warrants.

     This Warrant Certificate shall not entitle the [registered owner] [bearer]
hereof to any of the rights of a registered owner of the Warrant Securities,
including, without limitation, the right [to vote or] to receive payments of
[dividends or distributions of any kind] [principal of (and premium, if any) or
interest, if any, on the Warrant Securities or to enforce any of the covenants
of the Indenture.]

     This Warrant Certificate shall not be valid or obligatory for any purpose
until countersigned by the Warrant Agent.

Dated as of __________, 20__

                                          LEAP WIRELESS INTERNATIONAL, INC.

                                          By: __________________________________
                                          Name:
                                          Title:

                                          [Warrant Agent]

                                          By: __________________________________
                                          Name:
                                          Title:

                                      A-3<PAGE>

________________________________________________________________________________

                                                                    Exhibit 4.10

                       LEAP WIRELESS INTERNATIONAL, INC.

                                      and

                       ________________________________,

                                 AS Depositary

                                      and

                        HOLDERS OF DEPOSITARY RECEIPTS

                                _______________

                               DEPOSIT AGREEMENT

                                _______________

                         Dated as of __________, 20__

________________________________________________________________________________
<PAGE>

                               TABLE OF CONTENTS
<TABLE>
<S>                                                                                                 <C>
                                                                                                    Page
                                                                                                    ----
Parties.........................................................................................    1
Recitals........................................................................................    1

ARTICLE I. DEFINITIONS
     "Certificate of Designations"..............................................................    1
     "Certificate of Incorporation".............................................................    1
     "Common Stock".............................................................................    1
     "Company"..................................................................................    1
     "Corporate Office".........................................................................    1
     "Deposit Agreement"........................................................................    1
     "Depositary"...............................................................................    2
     "Depositary Share".........................................................................    2
     "Depositary's Agent".......................................................................    2
     "New York Office"..........................................................................    2
     "Receipt"..................................................................................    2
     "record holder"............................................................................    2
     "Registrar"................................................................................    2
     "Securities Act"...........................................................................    2
     "Stock"....................................................................................    2

ARTICLE II. FORM OF RECEIPTS, DEPOSIT OF STOCK, EXECUTION AND DELIVERY,
TRANSFER, SURRENDER, REDEMPTION AND CONVERSION OF RECEIPTS
     SECTION 2.01. Form and Transfer of Receipts................................................    3
     SECTION 2.02. Temporary Receipts...........................................................    3
     SECTION 2.03. Deposit of Stock; Execution and Delivery of Receipts in
     Respect Thereof............................................................................    3
     SECTION 2.04. Redemption and Conversion of Stock...........................................    4
     SECTION 2.05. Register of Transfer of Receipts.............................................    7
     SECTION 2.06. Combination and Split-ups of Receipts........................................    7
     SECTION 2.07. Surrender of Receipts and Withdrawal of Stock................................    7
     SECTION 2.08. Limitations on Execution and Delivery, Transfer Split-up,
     Combination, Surrender and Exchange of Receipts and Withdrawal or Deposit
     of Stock...................................................................................    8
     SECTION 2.09. Lost Receipts, etc...........................................................    9
     SECTION 2.10. Cancellation and Destruction of Surrendered Receipts.........................    9

ARTICLE III. CERTAIN OBLIGATIONS OF HOLDERS OF RECEIPTS AND THE COMPANY
     SECTION 3.01. Filing Proofs, Certificates and Other Information............................    9
     SECTION 3.02. Payment of Taxes or Other Governmental Charges...............................   10
     SECTION 3.03. Withholding..................................................................   10
     SECTION 3.04. Representations and Warranties as to Stock...................................   10
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                      <C>
ARTICLE IV. THE STOCK, NOTICES
     SECTION 4.01. Cash Distributions.................................................................    10
     SECTION 4.02. Distributions Other Than Cash......................................................    11
     SECTION 4.03. Subscription Rights, Preferences or Privileges.....................................    11
     SECTION 4.04. Notice of Dividends, Fixing of Record Date for Holders of
     Receipts.........................................................................................    12
     SECTION 4.05. Voting Rights......................................................................    12
     SECTION 4.06. Changes Affecting Stock and Reclassifications,
     Recapitalizations, etc...........................................................................    13
     SECTION 4.07. Reports............................................................................    13
     SECTION 4.08. Lists of Receipt Holders...........................................................    13

ARTICLE V. THE DEPOSITARY, THE DEPOSITARY'S AGENTS, THE REGISTRAR AND THE
COMPANY
     SECTION 5.01. Maintenance of Offices, Agencies, Transfer Books by the
     Depositary; the Registrar........................................................................    13
     SECTION 5.02. Prevention or Delay in Performance by the Depositary, the
     Depositary's Agents, the Registrar or the Company................................................    14
     SECTION 5.03. Obligations of the Depositary, the Depositary's Agents, the
     Registrar and the Company........................................................................    14
     SECTION 5.04. Resignation and Removal of the Depositary, Appointment of
     Successor Depositary.............................................................................    16
     SECTION 5.05. Corporate Notices and Reports......................................................    17
     SECTION 5.06. Deposit of Stock by the Company....................................................    17
     SECTION 5.07. Indemnification by the Company.....................................................    17
     SECTION 5.08. Fees, Charges and Expenses.........................................................    17

ARTICLE VI. AMENDMENT AND TERMINATION
     SECTION 6.01. Amendment..........................................................................    18
     SECTION 6.02. Termination........................................................................    18

ARTICLE VII. MISCELLANEOUS
     SECTION 7.01. Counterparts.......................................................................    19
     SECTION 7.02. Exclusive Benefits of Parties......................................................    19
     SECTION 7.03. Invalidity of Provisions...........................................................    19
     SECTION 7.04. Notices............................................................................    19
     SECTION 7.05. Depositary's Agents................................................................    20
     SECTION 7.06. Holders of Receipts Are Parties....................................................    20
     SECTION 7.07. Governing Law......................................................................    20
     SECTION 7.08. Headings...........................................................................    20

EXHIBIT A.............................................................................................   A-1
</TABLE>

                                      ii
<PAGE>

                               DEPOSIT AGREEMENT

     DEPOSIT AGREEMENT, dated as of __________, 20__, among Leap Wireless
International, Inc., a Delaware corporation, __________, a __________ banking
corporation, as Depositary, and all holders from time to time of Receipts issued
hereunder.

                                  WITNESSETH:

     WHEREAS, the Company desires to provide as hereinafter set forth in this
Deposit Agreement, for the deposit of shares of Stock with the Depositary, as
agent for the beneficial owners of the Stock, for the purposes set forth in this
Deposit Agreement and for the issuance hereunder of the Receipts evidencing
Depositary Shares representing an interest in the Stock so deposited; and

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

     NOW, THEREFORE, in consideration of the premises contained herein, it is
agreed by and among the parties hereto as follows:

                                  ARTICLE I.
                                  DEFINITIONS

     The following definitions shall apply to the respective terms (in the
singular and plural forms of such terms) used in this Deposit Agreement and the
Receipts:

     "CERTIFICATE OF DESIGNATIONS" shall mean the Certificate of Designations
establishing and setting forth the rights, preferences, privileges and
limitations of the Stock.

     "CERTIFICATE OF INCORPORATION" shall mean the Restated Certificate of
Incorporation, as amended and restated from time to time, of the Company.

     "COMMON STOCK" shall mean the Company's Common Stock, par value $.0001 per
share.

     "COMPANY" shall mean Leap Wireless International, Inc., a Delaware
corporation, and its successors.

     "CORPORATE OFFICE" shall mean the office of the Depositary in __________,
__________ at which at any particular time its business in respect of matters
governed by this Deposit Agreement shall be administered, which at the date of
this Deposit Agreement is located at __________.

     "DEPOSIT AGREEMENT" shall mean this agreement, as the same may be amended,
modified or supplemented from time to time.

                                       1
<PAGE>

     "DEPOSITARY" shall mean __________, as Depositary hereunder, and any
successor as Depositary hereunder.

     "DEPOSITARY SHARE" shall mean the rights evidenced by the Receipts executed
and delivered hereunder, including the interests in Stock granted to holders of
Receipts pursuant to the terms and conditions of the Deposit Agreement. Each
Depositary Share shall represent an interest in __________ of a share of Stock
deposited with the Depositary hereunder and the same proportionate interest in
any and all other property received by the Depositary in respect of such share
of Stock and held under this Deposit Agreement. Subject to the terms of this
Deposit Agreement, each record holder of a Receipt evidencing a Depositary Share
or Shares is entitled, proportionately, to all the rights, preferences and
privileges of the Stock represented by such Depositary Share or Shares,
including the dividend, voting and liquidation rights contained in the
Certificate of Designations, and to the benefits of all obligations and duties
of the Company in respect of the Stock under the Certificate of Designations and
the Certificate of Incorporation.

     "DEPOSITARY'S AGENT" shall mean an agent appointed by the Depositary as
provided, and for the purposes specified, in Section 7.05.

     "NEW YORK OFFICE" shall mean the facility maintained by the Depositary in
the Borough of Manhattan, The City of New York for accepting, executing and
delivering Receipts and other instruments prior to processing such instruments
at the Corporate Office, which facility at the date of this Deposit Agreement is
located at __________.

     "RECEIPT" shall mean a Depositary Receipt executed and delivered hereunder,
in substantially the form of Exhibit A hereto, evidencing a Depositary Share or
Depositary Shares, as the same may be, amended from time to time in accordance
with the provisions hereof.

     "RECORD HOLDER" or "HOLDER" as applied to a Receipt shall mean the person
in whose name a Receipt is registered on the books maintained by or on behalf of
the Depositary for such purpose.

     "REGISTRAR" shall mean any bank or trust company appointed to register
ownership and transfers of Receipts as herein provided.

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

     "STOCK" shall mean shares of the Company's __________ Series Preferred
Stock, $.0001 par value.

                                       2
<PAGE>

                                  ARTICLE II.
         FORM OF RECEIPTS, DEPOSIT OF STOCK, EXECUTION AND DELIVERY,
          TRANSFER, SURRENDER, REDEMPTION AND CONVERSION OF RECEIPTS

     SECTION 2.01.  Form and Transfer of Receipts. Receipts shall be engraved
                    -----------------------------
or printed or lithographed on steel- engraved borders and shall be substantially
in the form set forth in Exhibit A annexed to this Deposit Agreement, with
appropriate insertions, modifications and omissions, as hereinafter provided.
Receipts shall be executed by the Depositary by the manual signature of a duly
authorized signatory of the Depositary; provided, however, that such signature
may be a facsimile if a Registrar (other than the Depositary) shall have
countersigned the Receipts by manual signature of a duly authorized signatory of
the Registrar. No Receipt shall be entitled to any benefits under this Deposit
Agreement or be valid or obligatory for any purpose unless it shall have been
executed as provided in the preceding sentence. The Depositary shall record on
its books each Receipt executed as provided above and delivered as hereinafter
provided. Receipts bearing the facsimile signature of anyone who was at any time
a duly authorized officer of the Depositary shall bind the Depositary,
notwithstanding that such officer has ceased to hold such office prior to the
delivery of such Receipts.

          Receipts may be issued in denominations of any number of whole
Depositary Shares. All Receipts shall be dated the date of their execution.

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

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

     SECTION 2.02.  Temporary Receipts. Pending the preparation of definitive
                    ------------------
Receipts, the Depositary may, upon written order of the Company, issue temporary
Receipts substantially identical to (and entitling the holders thereof to all
the rights pertaining to) the definitive Receipts but not in definitive form.
Definitive Receipts will be prepared thereafter without unreasonable delay, and
such temporary Receipts will be exchangeable for definitive Receipts at the
Company's expense.

     SECTION 2.03.  Deposit of Stock; Execution and Delivery of Receipts in
                    -------------------------------------------------------
Respect Thereof. Subject to the terms and conditions of this Deposit Agreement,
---------------
the Company or any

                                       3
<PAGE>

holder of Stock may deposit such Stock under this Deposit Agreement by delivery
to the Depositary of a certificate or certificates for the Stock to be
deposited, properly endorsed or accompanied, if required by the Depositary, by a
properly executed instrument of transfer in form satisfactory to the Depositary,
together with (a) all such certifications as may be required by the Depositary
in accordance with the provisions of this Deposit Agreement and (b) a written
order of the Company or such holder, as the case may be, directing the
Depositary to execute and deliver to or upon the written order of the person or
persons stated in such order a Receipt or Receipts for the number of Depositary
Shares representing such deposited Stock.

          Upon receipt by the Depositary of a certificate or certificates for
Stock to be deposited hereunder, together with the other documents specified
above, the Depositary shall, as soon as transfer and registration can be
accomplished, present such certificate or certificates to the registrar and
transfer agent of the Stock for transfer and registration in the name of the
Depositary or its nominee of the Stock being deposited. Deposited Stock shall be
held by the Depositary in an account to be established by the Depositary at the
Corporate Office.

          Upon receipt by the Depositary of a certificate or certificates for
Stock to be deposited hereunder, together with the other documents specified
above, the Depositary, subject to the terms and conditions of this Deposit
Agreement, shall execute and deliver, to or upon the order of the person or
persons named in the written order delivered to the Depositary referred to in
the first paragraph of this Section 2.03, a Receipt or Receipts for the number
of whole Depositary Shares representing the Stock so deposited and registered in
such name or names as may be requested by such person or persons. The Depositary
shall execute and deliver such Receipt or Receipts at the New York Office,
except that, at the request, risk and expense of any person requesting such
delivery and for the account of such person, such delivery may be made at such
other place as may be designated by such person. In each case, delivery will be
made only upon payment by such person to the Depositary of all taxes and other
governmental charges and any fees payable in connection with such deposit and
the transfer of the deposited Stock.

          The Company shall deliver to the Depositary from time to time such
quantities of Receipts as the Depositary may request to enable the Depositary to
perform its obligations under this Deposit Agreement.

     SECTION 2.04.  Redemption and Conversion of Stock.* Whenever the Company
                    ----------------------------------
shall elect to redeem or be required to convert shares of Stock into shares of
Common Stock in accordance with the Certificate of Designations, it shall
(unless otherwise agreed in writing with the Depositary) give the Depositary in
its capacity as Depositary not less than 5 business days' prior notice of the
proposed date of the mailing of a notice of redemption or conversion of Stock
and the simultaneous redemption or conversion of the Depositary Shares
representing the Stock to be redeemed or converted and the number of such shares
of Stock held by the Depositary to be redeemed or converted. The Depositary
shall, as directed by the Company in writing, mail, first class postage prepaid,
notice of the redemption or conversion of Stock and the proposed simultaneous
redemption or conversion of the Depositary Shares representing the Stock to be

__________________________

* This section to be modified to discuss specific redemption or conversion terms
of the Stock, if any.

                                       4
<PAGE>

redeemed or converted, not less than 30 and not more than 60 days prior to the
date fixed for redemption or conversion of such Stock and Depositary Shares, to
the record holders of the Receipts evidencing the Depositary Shares to be so
redeemed or converted, at the addresses of such holders as the same appear on
the records of the Depositary; provided, however, that if the effectiveness of a
Merger or Consolidation (as defined in the Certificate of Designations) makes it
impracticable to provide at least 30 days' notice, the Depositary shall provide
such notice as soon as practicable prior to such effectiveness. Any such notice
shall also be published in the same manner as notices of redemption or
conversion of Stock are required to be published pursuant to the Certificate of
Designations. Notwithstanding the foregoing, neither failure to mail or publish
any such notice to one or more such holders nor any defect in any notice shall
affect the sufficiency of the proceedings for redemption or conversion. The
Company shall provide the Depositary with such notice, and each such notice
shall state:

          (a)  the redemption or conversion date;

          (b)  the number of Depositary Shares to be redeemed or converted;

          (c)  if fewer than all the Depositary Shares held by any holder are to
               be redeemed, the number of such Depositary Shares held by such
               holder to be so redeemed;

          (d)  in the case of a call for redemption, the call price payable upon
               redemption and the Current Market Price (as defined in the
               Certificate of Designations) to be used to calculate the number
               of shares of Common Stock deliverable upon redemption;

          (e)  whether the Company is exercising any option to deliver shares of
               Common Stock in lieu of any cash consideration pursuant to the
               Certificate of Designations and the Current Market Price to be
               used to calculate the number of such shares;

          (f)  the place or places where Receipts evidencing Depositary Shares
               to be redeemed or converted are to be surrendered for redemption
               or conversion;

          (g)  whether the Company is depositing with a bank or trust company on
               or before the redemption or conversion date, the shares of Common
               Stock and cash, if any, payable by the Company and the proposed
               date of such deposit;

          (h)  the amount of accrued and unpaid dividends payable per share of
               Stock to be redeemed or converted to and including such
               redemption or conversion date, as the case may be, and

          (i)  that dividends in respect of the Stock represented by the
               Depositary Shares to be redeemed or converted will cease to
               accrue on such redemption or conversion date (unless the Company
               shall default in delivering shares of

                                       5
<PAGE>

               Common Stock and cash, if any, at the time and place specified in
               such notice).

On the date of any such redemption or conversion, the Depositary shall surrender
the certificate or certificates held by the Depositary evidencing the number of
shares of Stock to be redeemed or converted in the manner specified in the
notice of redemption or conversion of Stock provided by the Company pursuant to
the Certificate of Designations. The Depositary shall, thereafter, redeem or
convert the number of Depositary Shares representing such redeemed or converted
Stock upon the surrender of Receipts evidencing such Depositary Shares in the
manner provided in the notice sent to record holders of Receipts; provided,
however, that the Depositary shall have received, upon surrendering such
certificate or certificates as aforesaid, a sufficient number of shares of
Common Stock to convert or redeem such number of Depositary Shares (including,
in the event that the Company elects pursuant to the Certificate of Designations
to exercise any option to deliver shares of Common Stock in lieu of any cash
consideration payable on the Effective Date (as defined in the Certificate of
Designations) of any Merger or Consolidation, a number of shares of Common Stock
equal to such cash consideration (as determined in the manner set forth in the
Certificate of Designations)), plus any accrued and unpaid dividends payable
with respect thereto to and including the date of any such redemption or
conversion and any other cash consideration payable on the Effective Date of a
Merger or Consolidation (other than any dividends or other cash consideration
payable on the Effective Date of a Merger or Consolidation that the Company has
elected to pay in shares of Common Stock pursuant to the Certificate of
Designations) as instructed and calculated by the Company. In case fewer than
all the outstanding Depositary Shares are to be redeemed, the Depositary Shares
to be redeemed shall be selected by the Depositary by lot or on a pro rata
basis.

          Notice having been mailed by the Depositary as aforesaid, from and
after the redemption or conversion date (unless the Company shall have failed to
redeem or convert the shares of Stock to be redeemed or converted by it upon the
surrender of the certificate or certificates therefor by the Depositary as
described in the preceding paragraph), the Depositary Shares called for
redemption or subject to conversion shall be deemed no longer to be outstanding
and all rights of the holders of Receipts evidencing such Depositary Shares
(except the right to receive the shares of Common Stock and cash, if any,
payable upon redemption or conversion upon surrender of such Receipts) shall, to
the extent of such Depositary Shares, cease and terminate. Upon surrender in
accordance with said notice of the Receipts evidencing such Depositary Shares
(properly endorsed or assigned for transfer, if the Depositary shall so
require), such Depositary Shares shall be converted into or redeemed for shares
of Common Stock at a rate equal to __________ of the number of shares of Common
Stock delivered, and the holders thereof shall be entitled to __________ of the
cash, if any, payable, in respect of the shares of Stock pursuant to the
Certificate of Designations. The foregoing shall be subject further to the terms
and conditions of the Certificate of Designations.

          If fewer than all of the Depositary Shares evidenced by a Receipt are
called for redemption, the Depositary will deliver to the holder of such Receipt
upon its surrender to the Depositary, together with the shares of Common Stock
and all accrued and unpaid dividends to and including the date fixed for
redemption payable in respect of the Depositary Shares called for redemption, a
new Receipt evidencing the Depositary Shares evidenced by such prior Receipt and
not called for redemption.

                                       6
<PAGE>

          To the extent that Depositary Shares are converted into or redeemed
for shares of Common Stock and all of such shares of Common Stock cannot be
distributed to the record holders of Receipts converted or called for redemption
without creating fractional interests in such shares, the Depositary may, with
the consent of the Company, adopt such method as it deems equitable and
practicable for the purpose of effecting such distribution, including the sale
(at public or private sale) of such shares of Common Stock at such place or
places and upon such terms as it may deem proper, and the net proceeds of any
such sale shall, subject to Section 3.02, be distributed or made available for
distribution to such record holders that would otherwise receive fractional
interests in such shares of Common Stock.

          The Depositary shall not be required (a) to issue, transfer or
exchange any Receipts for a period beginning at the opening of business 15 days
next preceding any selection of Depositary Shares and Stock to be redeemed and
ending at the close of business on the day of the mailing of notice of
redemption of Depositary Shares or (b) to transfer or exchange for another
Receipt any Receipt evidencing Depositary Shares called or being called for
redemption, in whole or in part, or subject to conversion except as provided in
the second preceding paragraph of this Section 2.04.

          Any funds deposited by the Company with the Depositary for any
Depositary Shares that are not claimed after a period of two years from the date
such funds are so deposited will be returned to the Company.

     SECTION 2.05.  Register of Transfer of Receipts. Subject to the terms and
                    --------------------------------
conditions of this Deposit Agreement, the Depositary shall register on its books
from time to time transfers of Receipts upon any surrender thereof at the
Corporate Office, the New York Office or such other office as the Depositary may
designate for such purpose, by the record holder in person or by a duly
authorized attorney, properly endorsed or accompanied by a properly executed
instrument of transfer, together with evidence of the payment of any transfer
taxes as may be required by law. Upon such surrender, the Depositary shall
execute a new Receipt or Receipts and deliver the same to or upon the order of
the person entitled thereto evidencing the same aggregate number of Depositary
Shares evidenced by the Receipt or Receipts surrendered.

     SECTION 2.06.  Combination and Split-ups of Receipts. Upon surrender of a
                    -------------------------------------
Receipt or Receipts at the Corporate Office, the New York Office or such other
office as the Depositary may designate for the purpose of effecting a split-up
or combination of Receipts, subject to the terms and conditions of this Deposit
Agreement, the Depositary shall execute and deliver a new Receipt or Receipts in
the authorized denominations requested evidencing the same aggregate number of
Depositary Shares evidenced by the Receipt or Receipts surrendered; provided,
however, that the Depositary shall not issue any Receipt evidencing a fractional
Depositary Share.

     SECTION 2.07.  Surrender of Receipts and Withdrawal of Stock.* Any holder
                    ---------------------------------------------
of a Receipt or Receipts may withdraw any or all of the Stock (but only in whole
shares of Stock)

_____________________________

* This Section to be modified to reflect any restrictions on withdrawal of
underlying securities.

                                       7
<PAGE>

represented by the Depositary Shares evidenced by such Receipts and all money
and other property, if any, represented by such Depositary Shares by
surrendering such Receipt or Receipts at the Corporate Office, the New York
Office or at such other office as the Depositary may designate for such
withdrawals. After such surrender, without unreasonable delay, the Depositary
shall deliver to such holder, or to the person or persons designated by such
holder as hereinafter provided, the whole number of shares of Stock and all such
money and other property, if any, represented by the Depositary Shares evidenced
by the Receipt or Receipts so surrendered for withdrawal. If the Receipt or
Receipts delivered by the holder to the Depositary in connection with such
withdrawal shall evidence a number of Depositary Shares in excess of the number
of whole Depositary Shares representing the whole number of shares of Stock to
be withdrawn, the Depositary shall at the same time, in addition to such whole
number of shares of Stock and such money and other property, if any, to be
withdrawn, deliver to such holder, or (subject to Section 2.05) upon his order,
a new Receipt or Receipts evidencing such excess number of whole Depositary
Shares. Delivery of the Stock and such money and other property being withdrawn
may be made by the delivery of such certificates, documents of title and other
instruments as the Depositary may deem appropriate, which, if required by the
Depositary, shall be properly endorsed or accompanied by proper instruments of
transfer.

          If the Stock and the money and other property being withdrawn are to
be delivered to a person or persons other than the record holder of the Receipt
or Receipts being surrendered for withdrawal of Stock, such holder shall execute
and deliver to the Depositary a written order so directing the Depositary and
the Depositary may require that the Receipt or Receipts surrendered by such
holder for withdrawal of such shares of Stock be properly endorsed in blank or
accompanied by a properly executed instrument of transfer in blank and that the
signature on such instrument of transfer be guaranteed by an eligible guarantor
institution (banks, stockbrokers, savings and loan associations and credit
unions with membership in an approved signature guarantee medallion program)
pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended.

          The Depositary shall deliver the Stock and the money and other
property, if any, represented by the Depositary Shares evidenced by Receipts
surrendered for withdrawal, without unreasonable delay, at the office at which
such Receipts were surrendered, except that, at the request, risk and expense of
the holder surrendering such Receipt or Receipts and for the account of the
holder thereof, such delivery may be made, without unreasonable delay, at such
other place as may be designated by such holder.

     SECTION 2.08.  Limitations on Execution and Delivery, Transfer, Split-up,
                    ----------------------------------------------------------
Combination, Surrender and Exchange of Receipts and Withdrawal or Deposit of
----------------------------------------------------------------------------
Stock. As a condition precedent to the execution and delivery, registration of
-----
transfer, split-up, combination, surrender or exchange of any Receipt, the
delivery of any distribution thereon or the withdrawal or deposit of Stock, the
Depositary, any of the Depositary's Agents or the Company may require any or all
of the following: (a) payment to it of a sum sufficient for the payment (or, in
the event that the Depositary or the Company shall have made such payment, the
reimbursement to it) of any tax or other governmental charge with respect
thereto (including any such tax or charge with respect to the Stock being
deposited or withdrawn or with respect to the Common Stock or other securities
or property of the Company being issued upon conversion or redemption); (b)

                                       8
<PAGE>

production of proof satisfactory to it as to the identity and genuineness of any
signature; and (c) compliance with such reasonable regulations, if any, as the
Depositary or the Company may establish not inconsistent with the provisions of
this Deposit Agreement.

          The deposit of Stock may be refused, the delivery of Receipts against
Stock or the registration of transfer, split-up, combination, surrender or
exchange of outstanding Receipts and the withdrawal of deposited Stock may be
suspended (a) during any period when the register of stockholders of the Company
is closed, (b) if any such action is deemed necessary or advisable by the
Depositary, any of the Depositary's Agents or the Company at any time or from
time to time because of any requirement of law or of any government or
governmental body or commission, or under any provision of this Deposit
Agreement, or (c) with the approval of the Company, for any other reason.
Without limitation of the foregoing, the Depositary shall not knowingly accept
for deposit under this Deposit Agreement any shares of Stock that are required
to be registered under the Securities Act unless a registration statement under
the Securities Act is in effect as to such shares of Stock.

     SECTION 2.09.  Lost Receipts, Etc. In case any Receipt shall be mutilated
                    ------------------
or destroyed or lost or stolen, the Depositary shall execute and deliver a
Receipt of like form and tenor in exchange and substitution for such mutilated
Receipt or in lieu of and in substitution for such destroyed, lost or stolen
Receipt unless the Depositary has notice that such Receipt has been acquired by
a bona fide purchaser; provided, however, that the holder thereof provides the
Depositary with (a) evidence satisfactory to the Depositary of such destruction,
loss or theft of such Receipt, of the authenticity thereof and of his ownership
thereof, (b) reasonable indemnification satisfactory to the Depositary or the
payment of any charges incurred by the Depositary in obtaining insurance in lieu
of such indemnification and (c) payment of any expense (including fees, charges
and expenses of the Depositary) in connection with such execution and delivery.

     SECTION 2.10.  Cancellation and Destruction of Surrendered Receipts. All
                    ----------------------------------------------------
Receipts surrendered to the Depositary or any Depositary's Agent shall be
cancelled by the Depositary. Except as prohibited by applicable law or
regulation, the Depositary is authorized to destroy such Receipts so cancelled.

                                 ARTICLE III.
          CERTAIN OBLIGATIONS OF HOLDERS OF RECEIPTS AND THE COMPANY

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

                                       9
<PAGE>

     SECTION 3.02.  Payment of Taxes or Other Governmental Charges. If any tax
                    ----------------------------------------------
or other governmental charge shall become payable by or on behalf of the
Depositary with respect to (a) any Receipt, (b) the Depositary Shares evidenced
by such Receipt, (c) the Stock (or fractional interest therein) or other
property represented by such Depositary Shares, or (d) any transaction referred
to in Section 4.06, such tax (including transfer, issuance or acquisition taxes,
if any) or governmental charge shall be payable by the holder of such Receipt,
who shall pay the amount thereof to the Depositary. Until such payment is made,
registration of transfer of any Receipt or any split-up or combination thereof
or any withdrawal of the Stock or money or other property, if any, represented
by the Depositary Shares evidenced by such Receipt may be refused, any dividend
or other distribution may be withheld and any part or all of the Stock or other
property (including Common Stock received in connection with a conversion or
redemption of Stock) represented by the Depositary Shares evidenced by such
Receipt may be sold for the account of the holder thereof (after attempting by
reasonable means to notify such holder prior to such sale). Any dividend or
other distribution so withheld and the proceeds of any such sale may be applied
to any payment of such tax or other governmental charge, the holder of such
Receipt remaining liable for any deficiency.

     SECTION 3.03.  Withholding. The Depositary shall act as the tax
                    -----------
withholding agent for any payments, distributions and exchanges made with
respect to the Depositary Shares and Receipts, and the Stock, Common Stock or
other securities or assets represented thereby (collectively, the "Securities").
The Depositary shall be responsible with respect to the Securities for the
timely (a) collection and deposit of any required withholding or backup
withholding tax, and (b) filing of any information returns or other documents
with federal (and other applicable) taxing authorities.

     SECTION 3.04.  Representations and Warranties as to Stock. In the case of
                    ------------------------------------------
the initial deposit of the Stock, the Company and, in the case of subsequent
deposits thereof, each person so depositing Stock under this Deposit Agreement
shall be deemed thereby to represent and warrant that such Stock and each
certificate therefor is valid and that the person making such deposit is duly
authorized to do so. Such representations and warranties shall survive the
deposit of the Stock and the issuance of Receipts therefor.

                                  ARTICLE IV.
                              THE STOCK, NOTICES

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

                                      10
<PAGE>

held by the Depositary (without liability for interest thereon) and shall be
added to and be treated as part of the next sum received by the Depositary for
distribution to record holders of Receipts then outstanding.

     SECTION 4.02.  Distributions Other Than Cash. Whenever the Depositary
                    -----------------------------
shall receive any distribution other than cash, rights, preferences or
privileges upon the Stock, the Depositary shall, subject to Section 3.02,
distribute to record holders of Receipts on the record date fixed pursuant to
Section 4.04 such amounts of the securities or property received by it as are,
as nearly as practicable, in proportion to the respective numbers of Depositary
Shares evidenced by the Receipts held by such holders, in any manner that the
Depositary and the Company may deem equitable and practicable for accomplishing
such distribution. If, in the opinion of the Company after consultation with the
Depositary, such distribution cannot be made proportionately among such record
holders, or if for any other reason (including any tax withholding or securities
law requirement), the Depositary deems, after consultation with the Company,
such distribution not to be feasible, the Depositary may, with the approval of
the Company which approval shall not be unreasonably withheld, adopt such method
as it deems equitable and practicable for the purpose of effecting such
distribution, including the sale (at public or private sale) of the securities
or property thus received, or any part thereof, at such place or places and upon
such terms as it may deem proper. The net proceeds of any such sale shall,
subject to Section 3.02, be distributed or made available for distribution, as
the case may be, by the Depositary to record holders of Receipts as provided by
Section 4.01 in the case of a distribution received in cash.

     SECTION 4.03.  Subscription Rights, Preferences or Privileges. If the
                    ----------------------------------------------
Company shall at any time offer or cause to be offered to the persons in whose
names Stock is registered on the books of the Company any rights, preferences or
privileges to subscribe for or to purchase any securities or any rights,
preferences or privileges of any other nature, such rights, preferences or
privileges shall in each such instance be made available by the Depositary to
the record holders of Receipts in such manner as the Company shall instruct
(including by the issue to such record holders of warrants representing such
rights, preferences or privileges); provided, however, that (a) if at the time
of issue or offer of any such rights, preferences or privileges the Company
determines and instructs the Depositary that it is not lawful or feasible to
make such rights, preferences or privileges available to some or all holders of
Receipts (by the issue of warrants or otherwise) or (b) if and to the extent
instructed by holders of Receipts who do not desire to exercise such rights,
preferences or privileges, the Depositary shall then, in each case, and if
applicable laws or the terms of such rights, preferences or privileges so
permit, sell such rights, preferences or privileges of such holders at public or
private sale, at such place or places and upon such terms as it may deem proper.
The net proceeds of any such sale shall be distributed by the Depositary to the
record holders of Receipts entitled thereto as provided by Section 4.01 in the
case of a distribution received in cash.

          If registration under the Securities Act of the securities to which
any rights, preferences or privileges relate is required in order for holders of
Receipts to be offered or sold such securities, the Company shall promptly file
a registration statement pursuant to the Securities Act with respect to such
rights, preferences or privileges and securities and use its best efforts and
take all steps available to it to cause such registration statement to become
effective

                                      11
<PAGE>

sufficiently in advance of the expiration of such rights, preferences or
privileges to enable such holders to exercise such rights, preferences or
privileges. In no event shall the Depositary make available to the holders of
Receipts any right, preference or privilege to subscribe for or to purchase any
securities unless and until such registration statement shall have become
effective or unless the offering and sale of such securities to such holders are
exempt from registration under the provisions of the Securities Act.

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

     SECTION 4.04. Notice of Dividends, Fixing of Record Date for Holders of
                   ---------------------------------------------------------
Receipts. Whenever (a) any cash dividend or other cash distribution shall become
--------
payable, or any distribution other than cash shall be made, or any rights,
preferences or privileges shall at any time be offered, with respect to the
Stock, or (b) the Depositary shall receive notice of any meeting at which
holders of Stock are entitled to vote or of which holders of Stock are entitled
to notice or of the mandatory conversion of, or any election on the part of the
Company to call for the redemption of, any shares of Stock, the Depositary shall
in each such instance fix a record date (which shall be the same date as the
record date fixed by the Company with respect to the Stock) for the
determination of the holders of Receipts (i) who shall be entitled to receive
such dividend, distribution, rights, preferences or privileges or the net
proceeds of the sale thereof, or (ii) who shall be entitled to give instructions
for the exercise of voting rights at any such meeting or to receive notice of
such meeting or of such conversion or redemption.

     SECTION 4.05. Voting Rights. Upon receipt of notice of any meeting at which
                   -------------
the holders of Stock are entitled to vote, the Depositary shall, as soon as
practicable thereafter, mail to the record holders of Receipts a notice, which
shall be provided by the Company and which shall contain (a) such information as
is contained in such notice of meeting, (b) a statement that the holders of
Receipts at the close of business on a specified record date fixed pursuant to
Section 4.04 will be entitled, subject to any applicable provision of law, the
Certificate of Incorporation or the Certificate of Designations, to instruct the
Depositary as to the exercise of the voting rights pertaining to the Stock
represented by their respective Depositary Shares and (c) a brief statement as
to the manner in which such instructions may be given. Upon the written request
of a holder of a Receipt on such record date, the Depositary shall endeavor
insofar as practicable to vote or cause to be voted the Stock represented by the
Depositary Shares evidenced by such Receipt in accordance with the instructions
set forth in such request. The Company hereby agrees to take all reasonable
action that may be deemed necessary by the Depositary in order to enable the
Depositary to vote such Stock or cause such Stock to be voted. In the absence of
specific instructions from the holder of a Receipt, the Depositary will abstain
from voting to the extent of the Stock represented by the Depositary Shares
evidenced by such Receipt.

                                      12
<PAGE>

     SECTION 4.06. Changes Affecting Stock and Reclassifications,
                   ----------------------------------------------
Recapitalizations, etc. Upon any split-up, consolidation or any other
-----------------------
reclassification of Stock, or upon any recapitalization, reorganization, merger,
amalgamation or consolidation affecting the Company or to which it is a party
(other than a Merger or Consolidation) or sale of all or substantially all of
the Company's assets, the Depositary shall treat any shares of stock or other
securities or property (including cash) that shall be received by the Depositary
in exchange for or upon conversion of or in respect of the Stock as new
deposited property under this Deposit Agreement, and Receipts then outstanding
shall thenceforth represent the proportionate interests of holders thereof in
the new deposited property so received in exchange for or upon conversion or in
respect of such Stock. In any such case the Depositary may, in its discretion,
with the approval of the Company, execute and deliver additional Receipts, or
may call for the surrender of all outstanding Receipts to be exchanged for new
Receipts specifically describing such new deposited property.

     SECTION 4.07. Reports. The Depositary shall make available for inspection
                   -------
by holders of Receipts at the Corporate Office, the New York Office and at such
other places as it may from time to time deem advisable during normal business
hours any reports and communications received from the Company that are received
by the Depositary as the holder of Stock.

     SECTION 4.08. Lists of Receipt Holders. Promptly upon request from time to
                   ------------------------
time by the Company, the Depositary shall furnish to it a list, as of a recent
date, of the names, addresses and holdings of Depositary Shares of all persons
in whose names Receipts are registered on the books of the Depositary. At the
expense of the Company, the Company shall have the right to inspect transfer and
registration records of the Depositary, any Depositary's Agent or the Registrar,
take copies thereof and require the Depositary, any Depositary's Agent or the
Registrar to supply copies of such portions of such records as the Company may
request.

                                  ARTICLE V.
        THE DEPOSITARY, THE DEPOSITARY'S AGENTS, THE REGISTRAR AND THE
                                    COMPANY

     SECTION 5.01. Maintenance of Offices, Agencies, Transfer Books by the
                   -------------------------------------------------------
Depositary; the Registrar. Upon execution of this Deposit Agreement in
-------------------------
accordance with its terms, the Depositary shall maintain (a) at the New York
Office facilities for the execution and delivery, registration, registration of
transfer, surrender and exchange, split-up, combination, redemption and
conversion of Receipts and deposit and withdrawal of Stock and (b) at the
Corporate Office and at the offices of the Depositary's Agents, if any,
facilities for the delivery, registration, registration of transfer, surrender
and exchange, split-up, combination, conversion and redemption of Receipts and
deposit and withdrawal of Stock, all in accordance with the provisions of this
Deposit Agreement.

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

                                      13
<PAGE>

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

          If the Receipts or the Depositary Shares evidenced thereby or the
Stock represented by such Depositary Shares shall be listed on one or more stock
exchanges, the Depositary shall, with the approval of the Company, appoint a
Registrar for registry of such Receipts or Depositary Shares in accordance with
the requirements of such exchange or exchanges. Such Registrar (which may be the
Depositary if so permitted by the requirements of such exchange or exchanges)
may be removed and a substitute registrar appointed by the Depositary upon the
request or with the approval of the Company. In addition, if the Receipts, such
Depositary Shares or such Stock are listed on one or more stock exchanges, the
Depositary will, at the request of the Company, arrange such facilities for the
delivery, registration, registration of transfer, surrender and exchange, split-
up, combination, redemption or conversion of such Receipts, such Depositary
Shares or such Stock as may be required by law or applicable stock exchange
regulations.

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

     SECTION 5.03. Obligations of the Depositary, the Depositary's Agents, the
                   -----------------------------------------------------------
Registrar and the Company. The Company assumes no obligation and shall be
-------------------------
subject to no liability under this Deposit Agreement or the Receipts to holders
or other persons, except to perform in good faith such obligations as are
specifically set forth and undertaken by it to perform in this Deposit
Agreement. Each of the Depositary, the Depositary's Agents and the Registrar
assumes no obligation and shall be subject to no liability under this Deposit
Agreement or the Receipts to holders or other persons, except to perform such
obligations as are specifically set forth and undertaken by it to perform in
this Deposit Agreement without negligence or bad faith.

                                      14
<PAGE>

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

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

          The Depositary, the Registrar and any Depositary's Agent may own and
deal in any class of securities of the Company and its affiliates and in
Receipts or Depositary Shares. The Depositary may also act as transfer agent or
registrar of any of the securities of the Company and its affiliates.

          It is intended that neither the Depositary nor any Depositary's Agent
shall be deemed to be an "issuer" of the Stock, the Depositary Shares, the
Receipts or the Common Stock issued upon conversion or redemption of the Stock
under the federal securities laws or applicable state securities laws, it being
expressly understood and agreed that the Depositary and any Depositary's Agent
are acting only in a ministerial capacity as Depositary for the Stock; provided,
however, that the Depositary agrees to comply with all information reporting and
withholding requirements applicable to it under law or this Deposit Agreement in
its capacity as Depositary.

          Neither the Depositary (or its officers, directors, employees or
agents) nor any Depositary's Agent makes any representation or has any
responsibility as to the validity of the Registration Statement pursuant to
which the Depositary Shares are registered under the Securities Act, the Stock,
the Depositary Shares or any instruments referred to therein or herein, or as to
the correctness of any statement made therein or herein; provided, however, that
the Depositary is responsible for its representations in this Deposit Agreement.

          The Depositary assumes no responsibility for the correctness of the
description that appears in the Receipts, which can be taken as a statement of
the Company summarizing certain provisions of this Deposit Agreement.
Notwithstanding any other provision herein or in the Receipts, the Depositary
makes no warranties or representations as to the validity, genuineness or
sufficiency of any Stock at any time deposited with the Depositary hereunder or
of the Depositary Shares, as to the validity or sufficiency of this Deposit
Agreement, as to the value of the Depositary Shares or as to any right, title or
interest of the record holders of Receipts in and to the Depositary Shares
except that the Depositary hereby represents and warrants as follows:

                                      15
<PAGE>

          (a)  the Depositary has been duly organized and is validly existing
               and in good standing under the laws of the State of __________,
               with full power, authority and legal right under such law to
               execute, deliver and carry out the terms of this Deposit
               Agreement;

          (b)  this Deposit Agreement has been duly authorized, executed and
               delivered by the Depositary; and

          (c)  this Deposit Agreement constitutes a valid and binding obligation
               of the Depositary, enforceable against the Depositary in
               accordance with its terms, except as enforcement thereof may be
               limited by bankruptcy, insolvency, reorganization or other
               similar laws affecting enforcement of creditors' rights generally
               and except as enforcement thereof is subject to general
               principles of equity (regardless of whether enforcement is
               considered in a proceeding in equity or at law).

The Depositary shall not be accountable for the use or application by the
Company of the Depositary Shares or the Receipts or the proceeds thereof.

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

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

          In case at any time the Depositary acting hereunder shall resign or be
removed, the Company shall, within 45 days after the delivery of the notice of
resignation or removal, as the case may be, appoint a successor depositary,
which shall be a bank or trust company, or an affiliate of a bank or trust
company, having its principal office in the United States of America and having
a combined capital and surplus of at least $50,000,000. If a successor
depositary shall not have been appointed in 45 days, the resigning or removed
Depositary may petition a court of competent jurisdiction to appoint a successor
depositary. Every successor depositary shall execute and deliver to its
predecessor and to the Company an instrument in writing accepting its
appointment hereunder, and thereupon such successor depositary, without any
further act or deed, shall become fully vested with all the rights, powers,
duties and obligations of its predecessor and for all purposes shall be the
Depositary under this Deposit Agreement, and such predecessor, upon payment of
all sums due it and on the written request of the Company, shall promptly
execute and deliver an instrument transferring to such successor all rights and
powers of such predecessor hereunder, shall duly assign, transfer and deliver
all rights, title and interest in the Stock and any moneys or property held
hereunder to such successor and shall deliver to such successor a list of the
record holders of all outstanding Receipts. Any successor depositary shall
promptly mail notice of its appointment to the record holders of Receipts.

                                      16
<PAGE>

          Any corporation into or with which the Depositary may be merged,
consolidated or converted shall be the successor of such Depositary without the
execution or filing of any document or any further act. Such successor
depositary may execute the Receipts either in the name of the predecessor
depositary or in the name of the successor depositary.

     SECTION 5.05. Corporate Notices and Reports. The Company agrees that it
                   -----------------------------
will deliver to the Depositary, and the Depositary will, promptly after receipt
thereof, transmit to the record holders of Receipts, in each case at the address
recorded in the Depositary's books, copies of all notices and reports (including
financial statements) required by law, by the rules of any national securities
exchange upon which the Stock, the Depositary Shares or the Receipts are listed
or by the Certificate of Incorporation and the Certificate of Designations to be
furnished by the Company to holders of Stock. Such transmission will be at the
Company's expense and the Company will provide the Depositary with such number
of copies of such documents as the Depositary may reasonably request. In
addition, the Depositary will transmit to the record holders of Receipts at the
Company's expense such other documents as may be requested by the Company.

     SECTION 5.06. Deposit of Stock by the Company. The Company agrees with
                   -------------------------------
the Depositary that neither the Company nor any company controlled by the
Company will at any time deposit any Stock if such Stock is required to be
registered under the provisions of the Securities Act and no registration
statement is at such time in effect as to such Stock.

     SECTION 5.07. Indemnification by the Company. The Company agrees to
                   ------------------------------
indemnify the Depositary, any Depositary's Agent and any Registrar against, and
hold each of them harmless from, any liability, costs and expenses (including
reasonable fees and expenses of counsel) that may arise out of or in connection
with its acting as Depositary, Depositary's Agent or Registrar, respectively,
under this Deposit Agreement and the Receipts, except for any liability arising
out of negligence, bad faith or willful misconduct on the part of any such
person or persons.

     SECTION 5.08. Fees, Charges and Expenses. No fees, charges and expenses
                   --------------------------
of the Depositary or any Depositary's Agent hereunder or of any Registrar shall
be payable by any person other than the Company, except for any taxes and other
governmental charges and except as provided in this Deposit Agreement. If, at
the request of a holder of a Receipt, the Depositary incurs fees, charges or
expenses for which it is not otherwise liable hereunder, such holder or other
person will be liable for such fees, charges and expenses. All other fees,
charges and expenses of the Depositary and any Depositary's Agent hereunder and
of any Registrar (including, in each case, reasonable fees and expenses of
counsel) incident to the performance of their respective obligations hereunder
will be paid from time to time upon consultation and agreement between the
Depositary and the Company as to the amount and nature of such fees, charges and
expenses.

                                      17
<PAGE>

                                  ARTICLE VI.
                           AMENDMENT AND TERMINATION

     SECTION 6.01. Amendment. The form of the Receipts and any provision of this
                   ---------
Deposit Agreement may at any time and from time to time be amended by agreement
between the Company and the Depositary in any respect that they may deem
necessary or desirable. Any amendment that shall impose or increase any fees,
taxes or charges payable by holders of Receipts (other than taxes and other
governmental charges, fees and other expenses payable by holders pursuant to the
terms hereof or of the Receipts), or that otherwise prejudice any substantial
existing right of holders of Receipts, shall not become effective as to
outstanding Receipts until the expiration of 30 days after notice of such
amendment shall have been mailed to the record holders of outstanding Receipts.
Every holder of an outstanding Receipt at the time any such amendment becomes
effective shall be deemed, by continuing to hold such Receipt, to consent and
agree to such amendment and to be bound by this Deposit Agreement as amended
thereby. In no event shall any amendment impair the right, subject to the
provisions of Sections 2.03, 2.06 and 2.07 and Article III, of any owner of any
Depositary Shares to surrender the Receipt evidencing such Depositary Shares
with instructions to the Depositary to deliver to the holder the Stock and all
money and other property, if any, represented thereby, except in order to comply
with mandatory provisions of applicable law.

     SECTION 6.02. Termination. Whenever so directed by the Company, the
                   -----------
Depositary will terminate this Deposit Agreement by mailing notice of such
termination to the record holders of all Receipts then outstanding at least 30
days prior to the date fixed in such notice for such termination. The Depositary
may likewise terminate this Deposit Agreement if at any time 60 days shall have
expired after the Depositary shall have delivered to the Company a written
notice of its election to resign and a successor depositary shall not have been
appointed and accepted its appointment as provided in Section 5.04. In either
case, on a date not less than 60 days after such notice, the Depositary shall
deliver or make available for delivery to holders of Receipts, upon surrender of
such Receipts evidencing Depositary Shares, such number of whole or fractional
shares of the Stock as are represented by the Depositary Shares.

          This Deposit Agreement shall automatically terminate after all
outstanding Depositary Shares have been redeemed or there has been a final
distribution in respect of the Stock in connection with any liquidation,
dissolution or winding up of the Company and such distribution has been
distributed to the holders of the Receipts.

          If any Receipts shall remain outstanding after the date of termination
of this Deposit Agreement, the Depositary thereafter shall discontinue the
transfer of Receipts, shall suspend the distribution of dividends to the holders
thereof and shall not give any further notices (other than notice of such
termination) or perform any further acts under this Deposit Agreement, except as
provided below and that the Depositary shall continue to collect dividends and
other distributions pertaining to Stock, shall sell rights, preferences or
privileges as provided in this Deposit Agreement and shall continue to deliver
the Stock and any money and other property represented by Receipts, without
liability for interest thereon, upon surrender thereof by the holders thereof.
At any time after the expiration of two years from the date of termination, the
Depositary may sell Stock then held hereunder at public or private sale, at such
places and upon

                                      18
<PAGE>

such terms as it deems proper and may thereafter hold in a segregated account
the net proceeds of any such sale, together with any money and other property
held by it hereunder, without liability for interest, for the benefit, pro rata
in accordance with their holdings, of the holders of Receipts that have not
heretofore been surrendered. After making such sale, the Depositary shall be
discharged from all obligations under this Deposit Agreement except to account
for such net proceeds and money and other property. Upon the termination of this
Deposit Agreement, the Company shall be discharged from all obligations under
this Deposit Agreement except for its obligations to the Depositary, any
Depositary's Agent and any Registrar under Sections 5.07 and 5.08. [In the event
this Deposit Agreement is terminated, the Company hereby agrees to use its best
efforts to list the underlying Stock on the Nasdaq National Market System, Inc.]

                                 ARTICLE VII.
                                 MISCELLANEOUS

     SECTION 7.01. Counterparts. This Deposit Agreement may be executed by the
                   ------------
Company and the Depositary in separate counterparts, each of which counterparts,
when so executed and delivered, shall be deemed an original, but all such
counterparts taken together shall constitute one and the same instrument.
Delivery of an executed counterpart of a signature page to this Deposit
Agreement by telecopier shall be effective as delivery of a manually executed
counterpart of this Deposit Agreement. Copies of this Deposit Agreement shall be
filed with the Depositary and the Depositary's Agents and shall be open to
inspection during business hours at the Corporate Office and the New York Office
and the respective offices of the Depositary's Agents, if any, by any holder of
a Receipt.

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

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

     SECTION 7.04. Notices. Any notices to be given to the Company hereunder or
                   -------
under the Receipts shall be in writing and shall be deemed to have been duly
given if personally delivered or sent by mail, or by telegram or telex or
telecopier confirmed by letter, addressed to the Company at 10307 Pacific Center
Court, San Diego, California 92121, Attention: Corporate Secretary, or at any
other place to which the Company may have transferred its principal executive
office. Any notices to be given to the Depositary hereunder or under the
Receipts shall be in writing and shall be deemed to have been duly given if
personally delivered or sent by mail, or by telegram or telex or telecopier
confirmed by letter, addressed to the Depositary at the Corporate Office. Any
notices given to any record holder of a Receipt hereunder or under the Receipts
shall be in writing and shall be deemed to have been duly given if personally
delivered or sent by mail, or by telegram or telex or telecopier confirmed by
letter, addressed to such record holder at the address of such record holder as
it appears on the books of the Depositary or,

                                      19
<PAGE>

if such holder shall have filed with the Depositary a written request that
notices intended for such holder be mailed to some other address, at the address
designated in such request.

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

     SECTION 7.05. Depositary's Agents. The Depositary may, with the approval of
                   -------------------
the Company which approval shall not be unreasonably withheld, from time to time
appoint one or more Depositary's Agents to act in any respect for the Depositary
for the purposes of this Deposit Agreement and may vary or terminate the
appointment of such Depositary's Agents.

     SECTION 7.06. Holders of Receipts Are Parties. Notwithstanding that holders
                   -------------------------------
of Receipts have not executed and delivered this Deposit Agreement or any
counterpart thereof, the holders of Receipts from time to time shall be deemed
to be parties to this Deposit Agreement and shall be bound by all of the terms
and conditions, and be entitled to all of the benefits, hereof and of the
Receipts by acceptance of delivery of Receipts.

     SECTION 7.07. GOVERNING LAW. THIS DEPOSIT AGREEMENT AND THE RECEIPTS AND
                   -------------
ALL RIGHTS HEREUNDER AND THEREUNDER AND PROVISIONS HEREOF AND THEREOF SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK,
INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW.

     SECTION 7.08. Headings. The headings of articles and sections in this
                   --------
Deposit Agreement and in the form of the Receipt set forth in Exhibit A hereto
have been inserted for convenience only and are not to be regarded as a part of
this Deposit Agreement or to have any bearing upon the meaning or interpretation
of any provision contained herein or in the Receipts.

                                      20
<PAGE>

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

                              LEAP WIRELESS INTERNATIONAL, INC.

                              By: ______________________________________
                              Name:
                              Title:

                              [Depositary]

                              By: ______________________________________
                              Name:
                              Title:

                                      21
<PAGE>

                                                                       EXHIBIT A
                               DEPOSITARY RECEIPT
                                      FOR
                               DEPOSITARY SHARES
                 EACH REPRESENTING ______________ OF A SHARE OF
                     _______________ SERIES PREFERRED STOCK

                                       OF

                       LEAP WIRELESS INTERNATIONAL, INC.
             (Incorporated under the Laws of the State of Delaware)
                                 No. __________

     __________ (the "Depositary") hereby certifies that __________ is the
registered owner of __________ Depositary Shares (the "Depositary Shares"), each
Depositary Share representing __________ of a share of __________ Preferred
Stock, $.0001 par value (the "Stock"), of Leap Wireless International, Inc., a
corporation duly organized and existing under the laws of the State of Delaware
(the "Company"), and the same proportionate interest in any and all other
property received by the Depositary in respect of such shares of Stock and held
by the Depositary under the Deposit Agreement (as defined below). Subject to the
terms of the Deposit Agreement, each owner of a Depositary Share is entitled,
proportionately, to all the rights, preferences and privileges of the Stock
represented thereby, including the dividend, voting, liquidation and other
rights contained in the Certificate of Designations establishing the rights,
preferences, privileges and limitations of the Stock (the "Certificate of
Designations"), copies of which are on file at the office of the Depositary at
which at any particular time its business in respect of matters governed by the
Deposit Agreement shall be administered, which at the time of the execution of
the Deposit Agreement is located at __________ (the "Corporate Office").

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

     THE DEPOSITARY IS NOT RESPONSIBLE FOR THE VALIDITY OF ANY DEPOSITED STOCK.
THE DEPOSITARY ASSUMES NO RESPONSIBILITY FOR THE CORRECTNESS OF THE DESCRIPTION
SET FORTH IN THIS RECEIPT, WHICH CAN BE TAKEN AS A STATEMENT OF THE COMPANY
SUMMARIZING CERTAIN PROVISIONS OF THE DEPOSIT AGREEMENT. UNLESS EXPRESSLY SET
FORTH IN THE DEPOSIT AGREEMENT, THE DEPOSITARY MAKES NO WARRANTIES OR
REPRESENTATIONS AS TO THE VALIDITY, GENUINENESS OR SUFFICIENCY OF ANY STOCK AT
ANY TIME DEPOSITED WITH THE DEPOSITARY UNDER THE DEPOSIT AGREEMENT OR OF THE
DEPOSITARY SHARES, AS TO THE VALIDITY OR SUFFICIENCY OF THE DEPOSIT AGREEMENT,
AS TO THE VALUE OF THE

                                      A-1
<PAGE>

DEPOSITARY SHARES OR AS TO ANY RIGHT, TITLE OR INTEREST OF THE RECORD HOLDERS OF
THE DEPOSITARY RECEIPTS IN AND TO THE DEPOSITARY SHARES.

     The Company will furnish to any holder of this Receipt without charge, upon
request addressed to its executive office, a full statement of the designation,
relative rights, preferences and limitations of the shares of each authorized
class, and of each class of preferred stock authorized to be issued, so far as
the same may have been fixed, and a statement of the authority of the Board of
Directors of the Company to designate and fix the relative rights, preferences
and limitations of other classes.

     This Receipt is continued on the reverse hereof and the additional
provisions therein set forth for all purposes have the same effect as if set
forth at this place.

Dated: __________, 20__

______________________________,
as Depositary and Registrar

By:___________________________
     Authorized Signatory

Name:
Title:

                                      A-2
<PAGE>

                    [FORM OF REVERSE OF DEPOSITARY RECEIPT]

     1.   The Deposit Agreement. Depositary Receipts (the "Receipts"), of which
          ---------------------
this Receipt is one, are made available upon the terms and conditions set forth
in the Deposit Agreement, dated as of __________, 20__ (the "Deposit
Agreement"), among the Company, the Depositary and all holders from time to time
of Receipts. The Deposit Agreement (copies of which are on file at the Corporate
Office, the office maintained by the Depositary in the Borough of Manhattan, the
City of New York which at the time of the execution of the Deposit Agreement is
located at __________ (the "New York Office") and at the office of any agent of
the Depositary) sets forth the rights of holders of Receipts and the rights and
duties of the Depositary. The statements made on the face and the reverse of
this Receipt are summaries of certain provisions of the Deposit Agreement and
are subject to the detailed provisions thereof, to which reference is hereby
made. In the event of any conflict between the provisions of this Receipt and
the provisions of the Deposit Agreement, the provisions of the Deposit Agreement
will govern.

     2.   Definitions. Unless otherwise expressly herein provided, all defined
          -----------
terms used herein shall have the meanings ascribed thereto in the Deposit
Agreement.

     3.   Redemption and Conversion of Stock.* Whenever the Company shall elect
          ----------------------------------
to redeem or be required to convert shares of Stock into shares of Common Stock
in accordance with the Certificate of Designations, it shall (unless otherwise
agreed in writing with the Depositary) give the Depositary in its capacity as
Depositary not less than 5 business days' prior notice of the proposed date of
the mailing of a notice of redemption or conversion of Stock and the
simultaneous redemption or conversion of the Depositary Shares representing the
Stock to be redeemed or converted and of the number of such shares of Stock held
by the Depositary to be redeemed or converted. The Depositary shall, as directed
by the Company in writing, mail, first class postage prepaid, notice of the
redemption or conversion of Stock and the proposed simultaneous redemption or
conversion of Depositary Shares representing the Stock to be redeemed or
converted, not less than 30 and not more than 60 days prior to the date fixed
for redemption or conversion of such Stock and Depositary Shares, to the record
holders of the Receipts evidencing the Depositary Shares to be so redeemed or
converted, at the addresses of such holders as the same appear on the records of
the Depositary; provided, that if the effectiveness of a Merger or Consolidation
(as defined in the Certificate of Designations) makes it impracticable to
provide at least 30 days' notice, the Depositary shall provide such notice as
soon as practicable prior to such effectiveness. Any such notice shall also be
published in the same manner as notices of redemption or conversion of the Stock
are required to be published pursuant to the Certificate of Designations. On the
date of any such redemption or conversion, the Depositary shall surrender the
certificate or certificates held by the Depositary evidencing the number of
shares of Stock to be redeemed or converted in the manner specified in the
notice of redemption or conversion of Stock provided by the Company pursuant to
the Certificate of Designations. The Depositary shall, thereafter, redeem or
convert the number of Depositary Shares representing such redeemed or converted
Stock upon the surrender of Receipts evidencing such Depositary Shares in the
manner provided in the notice sent to record holders of Receipts; provided, that
the Depositary shall have received, upon surrendering such certificate or

_____________________________
* This section to be modified to discuss specific redemption or conversion terms
  of the Stock, if any.

                                      A-3
<PAGE>

certificates as aforesaid, a sufficient number of shares of Common Stock to
convert or redeem such number of Depositary Shares (including, in the event that
the Company elects pursuant to the Certificate of Designations to exercise any
option to deliver shares of Common Stock in lieu of any cash consideration
payable on the Effective Date (as defined in the Certificate of Designations) of
any Merger or Consolidation, a number of shares of Common Stock equal to such
cash consideration (as determined in the manner set forth in the Certificate of
Designations)), plus any accrued and unpaid dividends payable with respect
thereto to and including the date of any such redemption or conversion and any
other cash consideration payable on the Effective Date of a Merger or
Consolidation (other than any dividends or other cash consideration payable on
the Effective Date of a Merger or Consolidation that the Company has elected to
pay in shares of Common Stock pursuant to the Certificate of Designations). In
case fewer than all the outstanding Depositary Shares are to be redeemed, the
Depositary Shares to be redeemed shall be selected by the Depositary by lot or
on a pro rata basis. Notice having been mailed and published as aforesaid, from
and after the redemption or conversion date (unless the Company shall have
failed to redeem or convert the shares of Stock to be redeemed or converted by
it upon the surrender of the certificate or certificates therefor by the
Depositary as described above), the Depositary Shares called for redemption or
subject to conversion shall be deemed no longer to be outstanding and all rights
of the holders of Receipts evidencing such Depositary Shares (except the right
to receive the shares of Common Stock and cash, if any, payable upon redemption
or conversion upon surrender of such Receipts) shall, to the extent of such
Depositary Shares, cease and terminate. Upon surrender in accordance with said
notice of the Receipts evidencing such Depositary Shares (properly endorsed or
assigned for transfer, if the Depositary shall so require), such Depositary
Shares shall be converted into or redeemed for shares of Common Stock at a rate
equal to __________ of the number of shares of Common Stock delivered, and the
holders thereof shall be entitled to __________ of the cash, if any, payable, in
respect of the shares of Stock pursuant to the Certificate of Designations. The
foregoing is subject further to the terms and conditions of the Certificate of
Designations. If fewer than all of the Depositary Shares evidenced by this
Receipt are called for redemption, the Depositary will deliver to the holder of
this Receipt upon its surrender to the Depositary, together with shares of
Common Stock and all accrued and unpaid dividends to and including the date
fixed for redemption payable in respect of the Depositary Shares called for
redemption, a new Receipt evidencing the Depositary Shares evidenced by such
prior Receipt and not called for redemption.

     4.   Surrender of Receipts and Withdrawal of Stock. Upon surrender of this
          ---------------------------------------------
Receipt to the Depositary at the Corporate Office, the New York Office or at
such other offices as the Depositary may designate, and subject to the
provisions of the Deposit Agreement, the holder hereof is entitled to withdraw,
and to obtain delivery, without unreasonable delay, to or upon the order of such
holder, any or all of the Stock (but only in whole shares of Stock) and all
money and other property, if any, at the time represented by the Depositary
Shares evidenced by this Receipt; provided, however, that, in the event this
Receipt shall evidence a number of Depositary Shares in excess of the number of
Depositary Shares representing the whole number of shares of Stock to be
withdrawn, the Depositary shall, in addition to such whole number of shares of
Stock and such money and other property, if any, to be withdrawn, deliver, to or
upon the order of such holder, a new Receipt or Receipts evidencing such excess
number of whole Depositary Shares.

                                      A-4
<PAGE>

     5.   Transfers, Split-ups, Combinations. Subject to Paragraphs 6, 7 and 8
          ----------------------------------
below, this Receipt is transferable on the books of the Depositary upon
surrender of this Receipt to the Depositary at the Corporate Office or the New
York Office, or at such other offices as the Depositary may designate, properly
endorsed or accompanied by a properly executed instrument of transfer, and upon
such transfer the Depositary shall sign and deliver a Receipt or Receipts to or
upon the order of the person entitled thereto, all as provided in and subject to
the Deposit Agreement. This Receipt may be split into other Receipts or combined
with other Receipts into one Receipt evidencing the same aggregate number of
Depositary Shares evidenced by the Receipt or Receipts surrendered; provided,
however, that the Depositary shall not issue any Receipt evidencing a fractional
Depositary Share.

     6.   Conditions to Signing and Delivery, Transfer, etc., of Receipts. Prior
          ---------------------------------------------------------------
to the execution and delivery, registration of transfer, split-up, combination,
surrender or exchange of this Receipt, the delivery of any distribution hereon
or the withdrawal or deposit of Stock, the Depositary, any of the Depositary's
Agents or the Company may require any or all of the following: (a) payment to it
of a sum sufficient for the payment (or, in the event that the Depositary or the
Company shall have made such payment, the reimbursement to it) of any tax or
other governmental charge with respect thereto (including any such tax or charge
with respect to Stock being deposited or withdrawn or with respect to Common
Stock or other securities or property of the Company being issued upon
conversion or redemption); (b) production of proof satisfactory to it as to the
identity and genuineness of any signature and (c) compliance with such
reasonable regulations, if any, as the Depositary or the Company may establish
not inconsistent with the Deposit Agreement. Any person presenting Stock for
deposit, or any holder of this Receipt, may be required to file such proof of
information, to execute such certificates and to make such representations and
warranties as the Depositary or the Company may reasonably deem necessary or
proper. The Depositary or the Company may withhold or delay the delivery of this
Receipt, the registration of transfer, redemption, conversion or exchange of
this Receipt, the withdrawal of the Stock represented by the Depositary Shares
evidenced by this Receipt or the distribution of any dividend or other
distribution until such proof or other information is filed, such certificates
are executed or such representations and warranties are made.

     7.   Suspension of Delivery, Transfer, etc. The deposit of Stock may be
          -------------------------------------
refused and the delivery of this Receipt against Stock or the registration of
transfer, split-up, combination, surrender or exchange of this Receipt and the
withdrawal of deposited Stock may be suspended (a) during any period when the
register of stockholders of the Company is closed, (b) if any such action is
deemed necessary or advisable by the Depositary, any of the Depositary's Agents
or the Company at any time or from time to time because of any requirement of
law or of any government or governmental body or commission, or under any
provision of the Deposit Agreement, or (c) with the approval of the Company, for
any other reason. The Depositary shall not be required (a) to issue, transfer or
exchange any Receipts for a period beginning at the opening of business 15 days
next preceding any selection of Depositary Shares and Stock to be redeemed and
ending at the close of business on the day of the mailing of notice of
redemption of Depositary Shares or (b) to transfer or exchange for another
Receipt any Receipt evidencing Depositary Shares called or being called for
redemption, in whole or in part, or subject to conversion except as provided in
the last sentence of Paragraph 3.

                                      A-5
<PAGE>

     8.   Payment of Taxes or Other Governmental Charges. If any tax or other
          ----------------------------------------------
governmental charge shall become payable by or on behalf of the Depositary with
respect to (a) this Receipt, (b) the Depositary Shares evidenced by this
Receipt, (c) the Stock (or fractional interest therein) or other property
represented by such Depositary Shares, or (d) any transaction referred to in
Section 4.06, of the Deposit Agreement, such tax (including transfer, issuance
or acquisition taxes, if any) or governmental charge shall be payable by the
holder of this Receipt, who shall pay the amount thereof to the Depositary.
Until such payment is made, registration of transfer of this Receipt or any
split-up or combination hereof or any withdrawal of the Stock or money or other
property, if any, represented by the Depositary Shares evidenced by this Receipt
may be refused, any dividend or other distribution may be withheld and any part
or all of the Stock or other property (including Common Stock received in
connection with a conversion or redemption of Stock) represented by the
Depositary Shares evidenced by this Receipt may be sold for the account of the
holder hereof (after attempting by reasonable means to notify such holder prior
to such sale). Any dividend or other distribution so withheld and the proceeds
of any such sale may be applied to any payment of such tax or other governmental
charge, the holder of this Receipt remaining liable for any deficiency.

     9.   Amendment. The form of the Receipts and any provision of the Deposit
          ---------
Agreement may at any time and from time to time be amended by agreement between
the Company and the Depositary in any respect that they may deem necessary or
desirable. Any amendment that shall impose or increase any fees, taxes or
charges payable by holders of Receipts (other than taxes and other governmental
charges, fees and other expenses payable by holders as provided herein or in the
Deposit Agreement), or that shall otherwise prejudice any substantial existing
right of holders of Receipts, shall not become effective as to outstanding
Receipts until the expiration of 30 days after such notice of such amendment
shall have been given to the record holders of outstanding Receipts. The holder
of this Receipt at the time any such amendment becomes effective shall be
deemed, by continuing to hold this Receipt, to consent and agree to such
amendment and to be bound by the Deposit Agreement as amended thereby. In no
event shall any amendment impair the right, subject to the provisions of
Paragraphs 3, 4, 6, 7 and 8 hereof and of Sections 2.04, 2.07 and 2.08 and
Article III of the Deposit Agreement, of the owner of the Depositary Shares
evidenced by this Receipt to surrender this Receipt with instructions to the
Depositary to deliver to the holder the Stock and all money and other property,
if any, represented thereby, except in order to comply with mandatory provisions
of applicable law.

     10.  Fees, Charges and Expenses. The Company will pay all fees, charges
          --------------------------
and expenses of the Depositary, except for taxes (including transfer taxes, if
any) and other governmental charges and such charges as are expressly provided
in the Deposit Agreement to be at the expense of persons depositing Stock,
holders of Receipts or other persons.

     11.  Title to Receipts. It is a condition of this Receipt, and every
          -----------------
successive holder hereof by accepting or holding the same consents and agrees,
that title to this Receipt (and to the Depositary Shares evidenced hereby), when
properly endorsed or accompanied by a properly executed instrument of transfer,
is transferable by delivery with the same effect as in the case of a negotiable
instrument; provided, however, that the Depositary may, notwithstanding any
notice to the contrary, treat the record holder hereof at such time as the
absolute owner hereof for the

                                      A-6
<PAGE>

purpose of determining the person entitled to distribution of dividends or other
distributions or to any notice provided for in the Deposit Agreement and for all
other purposes.

     12.   Dividends and Distributions. Whenever the Depositary shall receive
           ---------------------------
any cash dividend or other cash distribution on the Stock, the Depositary shall,
subject to the provisions of the Deposit Agreement, distribute to record holders
of Receipts such amounts of such sums as are, as nearly as practicable, in
proportion to the respective numbers of Depositary Shares evidenced by the
Receipts held by such holders; provided, however, that in case the Company or
the Depositary shall be required by law to withhold and does withhold from any
cash dividend or other cash distribution in respect of the Stock an amount on
account of taxes, the amount made available for distribution or distributed in
respect of Depositary Shares shall be reduced accordingly. The Depositary shall
distribute or make available for distribution, as the case may be, only such
amount, however, as can be distributed without attributing to any owner of
Depositary Shares a fraction of one cent and any balance not so distributable
shall be held by the Depositary (without liability for interest thereon) and
shall be added to and be treated as part of the next sum received by the
Depositary for distribution to record holders of Receipts then outstanding.

     13.   Subscription Rights, Preferences or Privileges. If the Company shall
           ----------------------------------------------
at any time offer or cause to be offered to the persons in whose name Stock is
registered on the books of the Company any rights, preferences or privileges to
subscribe for or to purchase any securities or any rights, preferences or
privileges of any other nature, such rights, preferences or privileges shall in
each such instance, subject to the provisions of the Deposit Agreement, be made
available by the Depositary to the record holders of Receipts in such manner as
the Company shall instruct.

     14.   Notice of Dividends, Fixing of Record Date. Whenever (a) any cash
           ------------------------------------------
dividend or other cash distribution shall become payable, or any distribution
other than cash shall be made, or any rights, preferences or privileges shall at
any time be offered, with respect to the Stock, or (b) the Depositary shall
receive notice of any meeting at which holders of Stock are entitled to vote or
of which holders of Stock are entitled to notice or of the mandatory conversion
of, or any election on the part of the Company to call for redemption of, any
shares of Stock, the Depositary shall in each such instance fix a record date
(which shall be the same date as the record date fixed by the Company with
respect to the Stock) for the determination of the holders of Receipts (i) who
shall be entitled to receive such dividend, distribution, rights, preferences or
privileges or the net proceeds of the sale thereof, or (ii) who shall be
entitled to give instructions for the exercise of voting rights at any such
meeting or of such meeting or to receive notice of such conversion or
redemption.

     15.   Voting Rights. Upon receipt of notice of any meeting at which the
           -------------
holders of Stock are entitled to vote, the Depositary shall, as soon as
practicable thereafter, mail to the record holders of Receipts a notice, which
shall contain (a) such information as is contained in such notice of meeting,
(b) a statement that the holders of Receipts at the close of business on a
specified record date determined as provided in Paragraph 14 will be entitled,
subject to any applicable provision of law, the Certificate of Incorporation or
the Certificate of Designations, to instruct the Depositary as to the exercise
of the voting rights pertaining to the Stock represented

                                      A-7
<PAGE>

by their respective Depositary Shares, and (c) a brief statement as to the
manner in which such instructions may be given. Upon the written request of a
holder of this Receipt on such record date the Depositary shall endeavor insofar
as practicable to vote or cause to be voted the Stock represented by the
Depositary Shares evidenced by this Receipt in accordance with the instructions
set forth in such request. The Company hereby agrees to take all reasonable
action that may be deemed necessary by the Depositary in order to enable the
Depositary to vote such Stock or cause such Stock to be voted. In the absence of
specific instructions from the holder of this Receipt, the Depositary will
abstain from voting to the extent of the Stock represented by the Depositary
Shares evidenced by this Receipt.

     16.   Reports, Inspection of Transfer Books. The Depositary shall make
           -------------------------------------
available for inspection by holders of Receipts at the Corporate Office, the New
York Office and at such other places as it may from time to time deem advisable
during normal business hours any reports and communications received from the
Company that are received by the Depositary as the holder of Stock. The
Depositary shall keep books at the Corporate Office for the registration and
transfer of Receipts, which books at all reasonable times will be open for
inspection by the record holders of Receipts; provided that any such holder
requesting to exercise such right shall certify to the Depositary that such
inspection shall be for a proper purpose reasonably related to such person's
interest as an owner of Depositary Shares.

     17.   Liability of the Depositary, the Depositary's Agents, the Registrar
           -------------------------------------------------------------------
and the Company. Neither the Depositary nor any Depositary's Agent nor the
---------------
Registrar nor the Company shall incur any liability to any holder of this
Receipt, if by reason of any provision of any present or future law or
regulation thereunder of any governmental authority or, in the case of the
Depositary, the Registrar or any Depositary's Agent, by reason of any provision
present or future, of the Certificate of Incorporation or the Certificate of
Designations or, in the case of the Company, the Depositary, the Registrar or
any Depositary's Agent, by reason of any act of God or war or other
circumstances beyond the control of the relevant party, the Depositary, any
Depositary's Agent, the Registrar or the Company shall be prevented or forbidden
from doing or performing any act or thing that the terms of the Deposit
Agreement provide shall be done or performed; nor shall the Depositary, any
Depositary's Agent, the Registrar or the Company incur any liability to any
holder of this Receipt (a) by reason of any nonperformance or delay, caused as
aforesaid, in the performance of any act or thing that the terms of the Deposit
Agreement provide shall or may be done or performed, or (b) by reason of any
exercise of, or failure to exercise, any discretion provided for in the Deposit
Agreement except, in the case of the Depositary, any Depositary's Agent or the
Registrar, if such exercise or failure to exercise discretion is caused by its
negligence or bad faith.

     18.   Obligations of the Depositary, the Depositary's Agents, the Registrar
           ---------------------------------------------------------------------
and the Company. The Company assumes no obligation and shall be subject to no
---------------
liability under the Deposit Agreement or this Receipt to the holder hereof or
other persons, except to perform in good faith such obligations as are
specifically set forth and undertaken by it to perform in the Deposit Agreement.
Each of the Depositary, the Depositary's Agents and the Registrar assumes no
obligation and shall be subject to no liability under the Deposit Agreement or
this Receipt to the holder hereof or other persons, except to perform such
obligations as are specifically set forth and undertaken by it to perform in the
Deposit Agreement without negligence or bad faith.

                                      A-8
<PAGE>

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

          Neither the Depositary nor any Depositary's Agent nor the Registrar
nor the Company will be liable for any action or failure to act by it in
reliance upon the advice of or information from legal counsel, accountants, any
person presenting Stock for deposit, any holder of this Receipt or any other
person believed by it in good faith to be competent to give such advice or
information.

     19.   Termination of Deposit Agreement. Whenever so directed by the
           --------------------------------
Company, the Depositary will terminate this Deposit Agreement by mailing notice
of such termination to the record holders of all Receipts then outstanding at
least 60 days prior to the date fixed in such notice for such termination. The
Depositary may likewise terminate the Deposit Agreement if at any time 60 days
shall have expired after the Depositary shall have delivered to the Company a
written notice of its election to resign and a successor depositary shall not
have been appointed and accepted its appointment as provided in Section 5.04 of
the Deposit Agreement. In either case, on a date not less than 60 days after
such notice, the Depositary shall deliver or make available for delivery to
holders of Receipts, upon surrender of the such Receipts evidencing Depositary
Shares, such number of whole or fractional shares of the Stock as are
represented by the Depositary Shares.

          The Deposit Agreement shall automatically terminate after all
outstanding Depositary Shares have been redeemed or there has been a final
distribution in respect of the Stock in connection with any liquidation,
dissolution or winding up of the Company and such distribution has been
distributed to the holders of the Receipts.

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

          If any Receipts remain outstanding after the date of termination of
the Deposit Agreement, the Depositary thereafter shall discontinue all functions
and be discharged from all obligations as provided in the Deposit Agreement,
except as specifically provided therein.

     20.   GOVERNING LAW. THE DEPOSIT AGREEMENT AND THIS RECEIPT AND ALL RIGHTS
           -------------
THEREUNDER AND HEREUNDER AND PROVISIONS THEREOF AND HEREOF SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, INCLUDING,
WITHOUT LIMITATION, SECTIONS 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

                                      A-9
<PAGE>

                              FORM OF ASSIGNMENT

     For value received __________ hereby sell(s), assign(s) and transfer(s)
unto __________ [Please insert social security or other taxpayer identification
number of assignee] the within Receipt and all rights and interests represented
by the Depositary Shares evidenced thereby, and hereby irrevocably constitutes
and appoints __________ attorney to transfer the same on the books of the
within-named Depositary, with full power of substitution in the premises.

Dated: _________________________

Signature(s):
______________________________________

______________________________________

______________________________________

Signature Guarantee:*

NOTICE: The above signatures of the holder(s) hereof must correspond with the
name as written upon the face of this Security in every particular without
alteration or enlargement or any change whatever.

__________________________

* (Signature must be guaranteed by an "eligible guarantor institution," that is,
  a bank, stockbroker, savings and loan association or credit union meeting the
  requirements of the Conversion Agent, which requirements include membership or
  participation in the Securities Transfer Agents Medallion Program ("STAMP") or
  such other "signature guarantee program" as may be determined by the
  Conversion Agent in addition to, or in substitution for, STAMP, all in
  accordance with the Securities Exchange Act of 1934, as amended.)

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